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CAFR Year End 09-30-2015 Comprehensive Annual Financial Report Collier County, Florida Year ended September 30, 2015 Artwork courtesy of Michaela Castaldi. www.artworkbymichaela.com We would like to express our sincere gratitude to Ms. Castaldi for allowing us to use her artwork.     COMPREHENSIVE ANNUAL FINANCIAL REPORT    FOR FISCAL YEAR ENDED  SEPTEMBER 30, 2015    COLLIER COUNTY, FLORIDA    BOARD OF COUNTY COMMISSIONERS    TIM NANCE, CHAIRMAN – DISTRICT 5  DONNA FIALA, VICE‐CHAIRMAN – DISTRICT 1  GEORGIA A. HILLER, ESQ. – DISTRICT 2  TOM HENNING – DISTRICT 3  PENNY TAYLOR – DISTRICT 4    COUNTY MANAGER  LEO E. OCHS, Jr.    COUNTY ATTORNEY  JEFFREY A. KLATZKOW      CLERK OF THE CIRCUIT COURT AND COMPTROLLER  CHIEF FINANCIAL OFFICER  DWIGHT E. BROCK    DIRECTOR OF FINANCE AND ACCOUNTING  CRYSTAL K. KINZEL      Prepared by the Office of the Clerk of the Circuit Court,   Finance and Accounting Department  COLLIER COUNTY, FLORIDA  COMPREHENSIVE ANNUAL FINANCIAL REPORT  YEAR ENDED SEPTEMBER 30, 2015  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 .......................................................................................................................................... 82    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 .................................................................. 100  Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual (Non‐GAAP) ............ 110    Nonmajor Enterprise Funds  Combining Statement of Net Position .......................................................................................................................................  134  Combining Statement of Revenues, Expenses and Changes in Net Position ...........................................................................  136  Combining Statement of Cash Flows .......................................................................................................................................... 137    Internal Service Funds  Combining Statement of Net Position .......................................................................................................................................  140  Combining Statement of Revenues, Expenses and Changes Net Position ...............................................................................  141  Combining Statement of Cash Flows .........................................................................................................................................  142    Fiduciary Funds  Combining Statement of Fiduciary Net Position .......................................................................................................................  144  Combining Statement of Changes in Fiduciary Net Position...................................................................................................... 145    COLLIER COUNTY, FLORIDA  COMPREHENSIVE ANNUAL FINANCIAL REPORT  YEAR ENDED SEPTEMBER 30, 2015  TABLE OF CONTENTS ‐ CONTINUED       Component Units  Combining Statement of Net Position ........................................................................................................................................ 148  Combining Statement of Activities ............................................................................................................................................. 149    Other Supplemental Information  Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ................................................ 152    STATISTICAL SECTION (UNAUDITED)    Net Position by Component ........................................................................................................................................................ 154  Change in Net Position ...............................................................................................................................................................  155  Governmental Activities Tax Revenues by Source ..................................................................................................................... 158  Fund Balances of Governmental Funds .....................................................................................................................................  159  Changes in Fund Balances of Governmental Funds ................................................................................................................... 160  Assessed Value and Estimated Actual Value of Taxable Property ............................................................................................  162  Property Tax Rates – All Direct and Overlapping Governments ...............................................................................................  163  Principal Tax Payers County‐Wide .............................................................................................................................................  164  Property Tax Levies and Collections...........................................................................................................................................  165  Ratios of Outstanding Debt by Type ..........................................................................................................................................  166  Ratios of General Bonded Debt Outstanding ............................................................................................................................  167  Legal Debt Margin Information ..................................................................................................................................................  168  Direct, Overlapping and Underlapping Governmental Activities Debt .....................................................................................  168  Pledged‐Revenue Coverage .......................................................................................................................................................  169  Demographic and Economic Statistics .......................................................................................................................................  170  Principal Employers ....................................................................................................................................................................  171  Budgeted Full‐Time Equivalent County Employees by Function ..............................................................................................  172  Operating Indicators by Function ..............................................................................................................................................  173  Capital Asset Statistics by Function ............................................................................................................................................  174    SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS    Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters  Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ................. 177  Independent Auditors’ Report on Compliance With Requirements That Could Have a Direct and Material Effect on  Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB  Circular A‐133 and Chapter 10.550, Rules of the Auditor General of the State of Florida ................................................ 179  Schedule of Expenditures of Federal Awards and State Financial Assistance ........................................................................... 182  Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ..................................................... 187  Schedule of Findings and Questioned Costs ............................................................................................................................... 188  Summary Schedule of Prior Audit Findings ................................................................................................................................ 198      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   May 24, 2016      To the Citizens and  Members of the Board of County Commissioners,  Collier County, Florida:    It is with extreme pleasure that we present to you, the citizens of Collier County and members of  the Board of County Commissioners, the Comprehensive Annual Financial Report (CAFR) for the  fiscal year ended September 30, 2015.  Responsibility for the accuracy of the data and the  completeness and fairness of the presentation, including all disclosures, rests with the Board of  County Commissioners and County management.      The Clerk of the Circuit Court and Comptroller’s Finance and Accounting Department, as well as  County management, is responsible for establishing and maintaining internal controls to provide  reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from  unauthorized use or disposition, the reliability of financial records for preparing financial  statements and maintaining accountability of assets.  The concept of reasonable assurance  recognizes that the cost of a control should not exceed the benefits likely to be derived, and the  evaluation of costs and benefits requires estimates and judgments by management.      Chapter 218.39 of the Florida Statutes requires an independent certified public accountant’s  financial audit of counties in the State.  For the fiscal year ended September 30, 2015 the  independent auditor, CliftonLarsonAllen LLP, issued an unmodified opinion on the financial  statements.  Their report is included in the Financial Section of this report.  In addition to meeting  the requirements set forth in State statutes, the audit was also designed to meet the  requirements of the Government Auditing Standards, the U.S. Office of Management and Budget  Circular A‐133, Audits of States, Local Governments and Non‐Profit Organizations and the Rules  of the Auditor General, Chapter 10.550.  Information relating to the Single Audits, including the  schedule of expenditures of federal awards and state financial assistance and the independent  auditors’ report on compliance and internal control over compliance with requirements  applicable to each major federal program and state project, are included in the Federal and State  Single Audit Section of this report.    Governmental accounting and auditing principles require that management provide a narrative  introduction, overview and analysis to accompany the basic financial statements in the form of  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 2015 population of 348,777 (a 6.8 percent increase over  the last ten years), Collier County has been considered to be one of the fastest growing counties  in the state over the last ten years.  The resident population includes Unincorporated County  (pop. 309,939) and three municipalities: the Cities of Naples (pop. 20,968), Marco Island (pop.  17,460) and Everglades (pop. 410).  The County’s economic base is concentrated in tourism,  agriculture, fishing, ranching and forestry with a growing services economy and an emerging  technology sector.  Gulf of Mexico beaches and the Everglades National Park are important  attractions to this area.      Taxable property market valuation for fiscal year 2015 totaled $64.6 billion, or a very high  $185,210 per capita.  The County’s millage for General Fund operations in fiscal year 2015  remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value.   Unemployment levels in recent years approximate, or are slightly below, the statewide average.   The 2015 annual County unemployment rate stood at 5.2%, while the statewide average is 5.4%.   Income levels are high, with a per capita personal income of $73,869.    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 2016‐2020 is $613.1 million. Included in the County’s  current CIP for fiscal years 2016‐2020 are approximately $300.9 million in water and wastewater  projects, $142.0 million in transportation projects, $22.7 million in stormwater projects and  $24.4 million in government facilities projects.  In addition, parks and recreation projects of  approximately $36.3 million are planned, as well as $34.8 million for tourist development funded  projects, $25.1 million in solid waste projects and miscellaneous projects totaling $1.8 million.   None of the fiscal year 2016 – 2020 Capital Improvement Program is currently planned to be  funded by bond or loan proceeds.    RELEVANT FINANCIAL POLICIES    Relevant financial policies include the appropriation of carryforward as revenue in the following  year, maintaining a recommended General Fund unassigned fund balance of between 8% and  16% of actual expenditures and net operating transfers, the assessment of impact fees at such  levels as allowed by law and supported by studies, and the earmarking of gas taxes for payment  of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds.      Debt administration policies include the limitation of the debt repayment period to the useful  life of the underlying assets and the establishment of a 5% benchmark for net present value  savings generated by refinancing.  The Collier County Debt Policy provides that a smaller net  present value savings may be considered, but only on a case‐by‐case basis.  In addition, the debt  policy establishes a maximum ratio of total general governmental debt service to bondable  revenues from current sources of 13%.    Consistent with Collier County’s Debt Management Policy, outstanding debt is continually  monitored in relation to existing conditions in the debt market.  When sufficient cost savings can  be realized debt will be refinanced.  During fiscal year 2015, the County refunded a portion of the  Series 2006 Water and Sewer Revenue Bonds.  This refinancing achieved a net present value  savings of over 5% and is further described in Note 6 to the financial statements.    The Clerk’s Finance and Accounting Department monitors the daily cash needs of the County and  invests the County’s portfolio in accordance with the Collier County Investment Policy.  The  primary objective of the investment policy is the preservation of capital and the protection of  investment principal.  Authorized investments include certificates of deposit, the Local  Government Funds Surplus Trust Fund, U.S. treasury securities, U.S. agency securities,  commercial paper and bankers’ acceptances.  The weighted average maturity of the total  managed portfolio, to first call or maturity, was .99 years as of September 30, 2015.  The average  yield for fiscal year 2015 was .88%, which constitutes a reduction from historical rates, but an  increase over recent years.  Changes in the fair value of investments are recorded as part of  interest income in the financial statements.    iv AWARDS  GFOA Certificate of Achievement:  The Government Finance Officers Association of the United States and Canada (GFOA) awarded  a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its  Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2014.   The Certificate of Achievement is a prestigious national award, recognizing conformance with the  highest standards for preparation of state and local government financial reports.  In order to be awarded a Certificate of Achievement, a government unit must publish an easily  readable and efficiently organized Comprehensive Annual Financial Report whose contents  conform to program standards.  The CAFR must satisfy both generally accepted accounting  principles and applicable legal requirements.  A Certificate of Achievement is valid for a period of one year only.  Collier County has received  this award for the past twenty‐nine years, from fiscal year 1986 to 2014.  We believe our current  report conforms to the Certificate of Achievement program requirements, and we are submitting  it to the GFOA for consideration for an award again this year.  Distinguished Budget Presentation Awards:  The Government Finance Officers Association of the United States and Canada presented an  award for Distinguished Presentation to Collier County for its annual budget for the fiscal year  beginning October 1, 2014.  In order to receive this award, a government unit must publish a  budget document that meets program criteria as a policy document, as an operations guide, as  a financial plan, and as a communications device.  The Distinguished Budget Presentation Award  is valid for a period of one year only.  Collier County has received this award for the last twenty‐ nine consecutive years.  The Government Finance Officers Association of the United States and Canada presented an  award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court  and Comptroller for its annual budget for the fiscal year beginning October 1, 2014.  In order to  receive this award, a government unit must publish a budget document that meets program  criteria as a policy document, as an operations guide, as a financial plan, and as a communications  device.  The Distinguished Budget Presentation Award is valid for a period of one year only.  The  Clerk’s Office has received this award for the last thirteen consecutive years.  ACKNOWLEDGEMENTS  The preparation and publication of this Comprehensive Annual Financial Report represents a  significant effort by the Finance and Accounting Department as well as numerous County  personnel who contribute to its production.  In particular we would like to express our  appreciation to Kelly Jones, CGFO, Edith Manuel, CPA, Suzanne Boothby, Ron Dortch, Laura  Drigotas, Don Holder, Lisa Johnson, Christine Killen, Michael Lofendo and June Wathen, all  Accountants, along with Robin Sheley, Operations Manager, Raymond Milum, Jr., Clerk’s  v Accounting Manager and Jessica Arencibia and Vanessa Collier, Accounting Technicians, Jennifer  Milum, Fiscal Technician, and all of the staff of the Finance and Accounting Department.    Sincere appreciation is also expressed to CliftonLarsonAllen, the Board of County Commissioners,  the Constitutional Officers, the County Manager, Division Administrators and the Department  Directors for their assistance throughout the year in matters pertaining to the financial affairs of  the County.  We hope you find this report informative, accurate and easily readable.  If you should have any  questions related to this report or if additional information is desired, do not hesitate to contact  Crystal K. Kinzel, Director of Finance and Accounting, at (239) 252‐6299.  Respectfully,   Certificate of Achievement for Excellence in Financial Reporting    The Government Finance Officers Association of the United States and Canada (GFOA) awarded  a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for  its comprehensive annual financial report for the fiscal year ended September 30, 2014. This  was the twenty‐ninth consecutive year that the government has achieved this prestigious  award.  In order to be awarded a Certificate of Achievement, a government must publish an  easily readable and efficiently organized comprehensive annual financial report.  This report  must satisfy both generally accepted accounting principles and applicable legal requirements.    A Certificate of Achievement is valid for a period of one year only.  We believe that our current  comprehensive annual financial report continues to meet the Certificate of Achievement  Program’s requirements and we are submitting it to the GFOA to determine its eligibility for  another certificate.      Board of County CommissionersPhone 252‐8097Penny TaylorTimNanceDonna FialaGeorgia A. HillerTomHenningJeff KlatzkowCounty AttorneyPhone 252‐8400Leo Ochs, Jr.County ManagerPhone 252‐8383ExecutiveManager of CorporateBusiness OperationsTim DurhamPhone 252‐8383Corporate Financial & Management ServicesMark Isackson,DirectorPhone 252‐8383Communications& Customer RelationsMike Sheffield,ManagerPhone 252‐8383Bureau of Emergency ServicesFacilities ManagementFleet Management Human ResourcesInformation TechnologyProcurement ServicesRisk 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 252‐3646Public Transit and Neighborhood EnhancementDomestic Animal ServicesHealthCommunity and Human ServicesOperations and Veterans ServicesLibraryMuseumParks & RecreationUniversity Extension ServicePublic Services DepartmentSteve Carnell, Department HeadPhone  252‐8468Building Plan Review & InspectionCode EnforcementDevelopment ReviewEngineering & Natural ResourcesOperations & Regulatory ManagementOperations SupportRoad MaintenanceTransportation EngineeringZoningGrowth Management DepartmentDavid Wilkison,Department HeadPhone 252‐2370Planning & Project ManagementSolid  & Hazardous WasteOperation SupportWastewaterWaterPublic Utilities DepartmentG. George Yilmaz, Department HeadPhone 252‐2540TourismJack Wert,DirectorPhone 252‐2384Pelican Bay ServicesNeil Dorrill,DirectorPhone 597‐1749Economic& Business DevelopmentBruce Register,DirectorPhone 252‐8358County Redevelopment AgencyNaples CRA Jean Jourdan, ManagerPhone 643‐1115Immokalee CRABrad Muckel, ManagerPhone 867‐0025Mark StrainChiefHearing ExaminerPhone 252‐4446     FINANCIAL SECTION   THIS PAGE INTENTIONALLY LEFT BLANK  CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Board of County Commissioners Collier County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2015, and the respective changes in financial position and cash flows, where applicable, thereof, and the respective budgetary comparison for the General Fund, the Bayshore Gateway Redevelopment Agency special revenue fund, and the Immokalee Redevelopment Agency special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of a Matter As described in Note 19, the County adopted the provisions of Governmental Accounting Standards Board Statement (GASBS) No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27 and the related GASBS No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment of GASB Statement No. 68. As a result of the implementation of GASBS No. 68 and No. 71, the County reported a restatement for the change in accounting principle. The auditors’ opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management’s discussion and analysis (MD&A) on pages 4 – 15, the schedules of the county’s proportionate share of the net pension liability and of county contributions on page 83, and the other postemployment benefits schedule of funding progress for the retiree health plan on page 84 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual fund financial statements and other supplemental information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida, and is also not a required part of the basic financial statements. 2 Honorable Board of County Commissioners Collier County, Florida Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 10, 2016, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 3 MANAGEMENT’S DISCUSSION AND ANALYSIS  (UNAUDITED)    As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the  County’s financial statements this narrative overview and analysis of the financial activities of Collier  County for the fiscal year ended September 30, 2015.  Readers are encouraged to consider the information  presented in this narrative in conjunction with additional information offered in the letter of transmittal,  found on pages i‐v of this report.    Financial Highlights     Collier County’s assets and deferred outflows exceeded its liabilities and deferred inflows as  of September 30, 2015 by $2,439,522,571.  Of this amount, $178,236,493 represents  unrestricted net position and may be used to meet future County obligations.     The County’s total net position decreased by $81,621,204 when compared to fiscal year  2014.  The overall decrease includes adjustments that reduced the beginning net position by  $160,945,771 as a result of adopting Governmental Accounting Standards Board (GASB)  Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No.  71, Pension Transition for Contributions Made Subsequent to the Measurement Date.   Offsetting the effect of this adjustment was a $61,910,320 increase from governmental  activities and a $17,414,247 increase resulting from business‐type activities.      As of September 30, 2015 Collier County’s governmental fund financial statements showed  combined ending fund balances of $412,533,879, an increase of $43,754,453 over the  previous fiscal year.  Of the total combined ending governmental fund balance, $54,488,531  is reported as unassigned.        The General Fund reported an unassigned fund balance of $55,002,184 at September 30,  2015, a decrease in unassigned General Fund balance of $2,778,169 when compared to  September 30, 2014.     Total face value of bonded debt, notes, outstanding loans and capital leases owed by Collier  County decreased by $32,406,904 during fiscal year 2015, with a decrease in governmental  activities debt of $18,124,949 and a decrease in the business‐type activities debt of  $14,281,955.  In September of 2015, the Collier County Water and Sewer District issued the  Series 2015 County Water and Sewer Bond to advance refund a portion of the Series 2006  Collier County Water and Sewer Revenue Bonds.  Additional information on debt activity can  be found in Note 6 to the financial statements beginning on page 53.    Overview of the Financial Statements    This discussion and analysis is intended to serve as an introduction and explanation of Collier County’s  basic financial statements.  Collier County’s basic financial statements include government‐wide and fund  financial statements, as well as notes to the basic financial statements.  This report also contains a  statistical section, single audit and other supplementary information in addition to the basic financial  statements.    Government‐Wide Financial Statements    Government‐wide financial statements are designed to provide the reader an overview of the financial  position of the County and are similar to private sector financial statements.  These statements are  comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 19  of this report.    4     The Statement of Net Position shows the financial position of Collier County as of September 30, 2015.   The statement shows the County’s assets plus deferred outflows of resources less its liabilities plus  deferred inflows of resources, with the difference being reported as net position.  Changes in net position  are useful indicators of financial condition.      The Statement of Activities follows the Statement of Net Position and reports the changes in net position  over the fiscal period.   All changes in net position are reported as soon as the underlying events that gave  rise to the change occur, regardless of the timing of the related cash flows.  Thus, revenues and expenses  are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation  and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal  periods.    These statements distinguish Collier County functions that are supported by taxes and intergovernmental  revenues (governmental activities), from business‐type activities, which are intended to have their costs  primarily recovered through user fees and charges.    Governmental activities reported in the financial statements are general government, public safety,  physical environment, transportation, economic environment, human services and culture and  recreation.  Business‐type activities in Collier County include water and sewer, solid waste collections,  airport operations, transit operations and emergency medical services.     Fund Financial Statements    A fund is a group of related accounts used to maintain control over resources that have been segregated  to meet specific objectives.  As dictated by generally accepted accounting principles, Collier County uses  fund accounting to ensure and demonstrate compliance with financial legal requirements.  The funds of  the County can be divided into the following three categories: governmental, proprietary and fiduciary.    Governmental funds     Governmental funds, presented on pages 20 to 28, account for substantially the same functions as  governmental activities reported under the government‐wide Statement of Net Position and Statement  of Activities.  The difference is that the governmental fund financial statements focus on inflows and  outflows of expendable resources, as well as balances of expendable resources available at the end of the  fiscal year, on a near term basis.   As such, these statements present a narrower view of financial condition,  but are nonetheless useful in evaluating Collier County’s near term financing requirements and available  resources.     Comparison between the two sets of financial statements allows the reader to better assess the future  impact of the government’s near term financial decisions.  Both the governmental fund balance sheet and  the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the  respective government‐wide financial statements to facilitate comparison.    Governmental funds presented individually in Collier County’s statements include three major funds, the  General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies.  While  there are many smaller governmental funds under Collier County management, they are aggregated in a  total column named “other governmental funds”.  Combining statements for these other governmental  funds have been presented elsewhere in this report.    Collier County adopts an annual budget as described in Note 1 to the financial statements.  A budgetary  comparison statement has been provided for the General Fund and each major special revenue fund to  5     demonstrate compliance with this budget.  Budgetary comparison schedules for any non‐major  governmental fund required to adopt an annual budget is presented in the combining statements  presented elsewhere in this report.    Proprietary funds    Collier County maintains two different types of proprietary funds, enterprise and internal service, which  are reflected on pages 29 to 33 of this report.    Enterprise funds report, with more detail, the same functions presented as business‐type activities in the  government‐wide financial statements for water and sewer, solid waste disposal, emergency medical  services, transit and the airport authority.  The Collier County Water and Sewer District Fund and the Solid  Waste Disposal Fund are presented individually as major funds.     Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier  County.  The County uses internal service funds to account for health insurance, worker’s compensation  insurance, property and casualty insurance, fleet operations and information technology.  The internal  service funds are presented in total in the proprietary fund financial statements, but may be viewed on a  combining basis elsewhere in the report.    Fiduciary funds    Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County  government.  These funds are not presented in the government‐wide financial statements as they do not  represent resources available to support Collier County functions.  The fiduciary funds are presented on  page 34 of this report.  All of the County’s fiduciary funds are agency funds.  The accounting used for  agency funds is based on the concept that assets equal liabilities when the government is acting in a  fiduciary capacity.      Notes to the Financial Statements        The notes provide additional information essential to a full understanding of the data provided in both  the government‐wide and fund financial statements.  The notes appear on pages 35 to 80 of this report.    Other Information    The combining and individual nonmajor fund financial statements and schedules mentioned above  present more detailed views of nonmajor governmental and enterprise funds and begin on page 87.  This  section contains combining balance sheets and statements of revenues, expenditures and changes in fund  balance for governmental funds, including budgetary comparisons, and combining statements of net  position and statements of revenues, expenses and changes in fund net position for enterprise funds.   Also included are combining financial statements for internal service and agency funds.      Additional information about the County, which may be of interest to the reader, can be found under the  Statistical and Single Audit sections of this report.  The statistical section has been prepared in accordance  with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The  Statistical Section.  This section contains data regarding financial trends, revenue capacity, debt capacity,  demographic and economic conditions and operating indicators of the County.  The Single Audit grants  compliance section lists the expenditures of Federal Awards and State Financial Assistance during the  fiscal year and presents grant compliance information as well as auditor reports.    6     Government‐Wide Financial Analysis     As noted earlier, net position may serve over time as a useful indicator of a government’s financial  position.  Assets and deferred outflows exceeded liabilities and deferred inflows by $2,439,522,571 as of  the fiscal year ending September 30, 2015 for Collier County.  Positive balances were reported in all  categories of net position in the governmental and business‐type activities for fiscal year 2015, as well as  fiscal year 2014.  Collier County’s net position at September 30, 2015 decreased by $176,816,638 for  unrestricted net position and increased $76,596,608 for restricted net position.  Restricted net position  consists of resources subject to external restriction on how they may be used while unrestricted net  position may be used to meet the County’s ongoing obligations.          The implementation of GASB Statements No. 68 and 71, related to pensions, had a significant impact on  the reporting of the County’s long term liabilities and net position for both governmental and business‐ type activities. These statements require the County to record its proportionate share of the long term  liability and deferred inflows and outflows associated with the Florida Retirement System’s defined  pension benefit plan and the retiree health insurance subsidy program.  The impact of this  implementation should not be considered, solely, as evidence of financial difficulties.      Collier County’s investment in capital assets such as land, roads, buildings, parks and machinery and  equipment, net of depreciation or any outstanding debt related to the asset, amounts to 79.2% of net  position as of September 30, 2015, compared to 75.9% as of September 30, 2014.   During fiscal year 2015,  the County’s net investment in capital assets increased by $18,598,826.  Capital assets are used to provide  services to the citizens and consequently do not represent spendable resources and cannot be used to  liquidate the debt incurred to purchase or construct capital assets.    The following are Collier County’s net position and changes in net position for the fiscal years ended  September 30, 2014 and 2015, shown in condensed form:    2015 2014 2015 2014 2015 2014 2014‐2015 Current and other assets 509.9$       466.2$       239.4$    233.7$    749.3$       699.9$       7.1% Capital assets, net 1,571.2     1,581.9     910.3      919.5      2,481.5     2,501.4     (0.8%)   Total assets 2,081.1     2,048.1     1,149.7   1,153.2   3,230.8     3,201.3     0.9% Deferred outflows    of resources 41.7           14.7           10.8        4.8           52.5           19.5           169.2% Long‐term liabilities 490.9         379.7         211.0      197.4      701.9         577.1         21.6% Current liabilities 81.1           82.2           34.1        40.4        115.2         122.6         (6.0%)   Total liabilities 572.0         461.9         245.1      237.8      817.1         699.7         16.8% Deferred inflows    of resources 22.2           ‐               4.5           ‐             26.7           ‐               100.0% Net position: Net investment in    capital assets 1,217.2     1,207.8     714.2      705.1      1,931.4     1,912.9     1.0% Restricted 298.3         223.5         31.6        29.7        329.9         253.2         30.3% Unrestricted 13.1           169.6         165.1      185.4      178.2         355.0         (49.8%)   Total net position 1,528.6$   1,600.9$   910.9$    920.2$    2,439.5$   2,521.1$   (3.2%)  Collier County's Schedule of Net Position  (in millions) Total Governmental Activities Business‐type  Activities Total  Percentage  Change   7       2015 2014 2015 2014 2015 2014 2014‐2015 Revenues Program revenues:  Fines, fees and charges for services 73.5$        68.0$        173.2$   157.4$   246.7$      225.4$      9.4%  Operating grants and contributions 35.5           31.4           5.1         3.0         40.6           34.4           18.0%  Capital grants and contributions 30.0           28.9           21.2       30.7       51.2           59.6           (14.1%) General revenues:  Property taxes 259.8        244.4         ‐            ‐           259.8        244.4        6.3%  Other taxes and shared revenues 97.2           91.0           ‐            ‐           97.2           91.0           6.8%  Interest income 5.1             2.6             2.2         1.3         7.3             3.9             87.2%  Miscellaneous 17.5           13.3           0.1         0.1         17.6           13.4           31.3%   Total revenues 518.6        479.6        201.8     192.5     720.4        672.1        7.2% Expenses  General government 93.7           92.2           ‐            ‐           93.7           92.2           1.6%  Public safety 174.9        177.3        ‐            ‐           174.9        177.3        (1.4%)  Physical environment 22.8           17.0           ‐            ‐           22.8           17.0           34.1%  Transportation 70.3           71.6           ‐            ‐           70.3           71.6           (1.8%)  Economic environment 9.3             9.3              ‐            ‐           9.3             9.3             0.0%  Human services 13.5           12.8           ‐            ‐           13.5           12.8           5.5%  Culture and recreation 45.1           41.6           ‐            ‐           45.1           41.6           8.4%  Interest on long‐term debt 12.9           12.7           ‐            ‐           12.9           12.7           1.6%  Water and sewer ‐               ‐               122.8     112.6     122.8        112.6        9.1%  Solid waste ‐               ‐               36.4       33.8       36.4           33.8           7.7%  Airport authority ‐               ‐               4.8         3.8         4.8             3.8             26.3%  Mass transit ‐               ‐               10.4       10.3       10.4           10.3           1.0%  Emergency medical services ‐               ‐               24.1       23.2       24.1           23.2           3.9%   Total expenses 442.5        434.5        198.5     183.7     641.0        618.2        3.7% Increase in net position         before net transfers     76.1           45.1           3.3         8.8         79.4           53.9           47.3% Transfers, net (14.2)         (13.2)         14.2       13.2        ‐               ‐                ‐ Change in net position 61.9           31.9           17.5       22.0       79.4           53.9           47.3% Net position – beginning 1,600.9     1,573.3     920.2     898.6     2,521.1     2,471.9     2.0% Restatement of net position (134.2)       (4.3)           (26.8)      (0.4)        (161.0)       (4.7)           3325.5% Net position – ending 1,528.6$   1,600.9$   910.9$   920.2$   2,439.5$   2,521.1$   (3.2%) 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 expenditures followed by general government.       ‐  20  40  60  80  100  120  140  160  180  200 MillionsRevenues and Expenses Governmental Activities Fiscal Year  2015 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 50% Fines, Fees  and  Charges  for Services 14% Operating Grants  and  Contributions 7% Capital  Grants  and  Contributions 6% Gas  Taxes 4% Sales  Taxes 7% Tourist Taxes 4% Other Income 8% Revenue by Type Governmental Activities Fiscal Year  2015   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 Airport Authority Mass  Transit Emergency Medical ServicesMillionsRevenues and Expenses Business‐type Activities Fiscal Year  2015 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.    Capital  Grants  and  Contributions 10% Operating Grants  and  Contributions 3% Other Income 1% Fines, Fees  and  Charges  for  Services 86% Revenue by Type Business‐type Activities Fiscal Year  2015   10     Governmental Activities     The current year increase in the net position of governmental activities amounted to $61,910,320, an  increase of 4.2% when compared to the previous year’s net position as restated.  The previous fiscal years’  increase in net position was 2.0%.  The current years’ increase is mainly due to the following:     Overall, revenues related to governmental activities increased by 8.1%, or $38,875,407 while  expenses only increased by 1.8%, or $7,922,974.     Governmental activities revenues increased primarily due to an increase in total ad valorem  taxes collected in fiscal year 2015 of $15,374,667 when compared to fiscal year 2014. In  addition, Half Cent Sales Tax and Tourist Development Tax collections increased a combined  8.8% over fiscal year 2014, or $4,837,933.  Permit fees, included in fines, fees and charges for  services increased by 20.2%, or $2,583,043, over the same period.       Governmental activities expenses increased primarily due to an increase in the physical  environment functional area.  Physical environment expenses increased predominately due  to expenses related to underground conversion of electrical utilities in the Vanderbilt Beach  area and beach renourishment projects associated with Tropical Storm Debbie.    Business‐type Activities     Increases in net position related to business‐type activities amounted to $17,414,247 in the aggregate,  representing a 1.9% increase over the previous year’s net position as restated.   The previous fiscal years’  increase in net position was 2.5%.  The current years’ increase is mainly due to the following:     The majority of the increase, or $8,055,362, can be attributed to the Collier County Water and  Sewer District (District).  The increase in the District’s net position is largely due to a 9.0% rate  increase that went in to effect October 1, 2014.  Water and sewer impact fees, charged to  new construction, increased by 14.4% when compared to fiscal year 2014.     Solid waste contributed $2,419,255 to the overall increase in business‐type activities net  position.  User charges increased by $3,768,581, primarily a result of a 7.0% increase in  residential and commercial municipal waste tonnage and construction and demolition waste  being accepted into the Naples landfill during fiscal year 2015.  Operating costs increased  primarily due to an increase in landfill operating costs.        Fund Financial Statement Analysis           As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related  legal requirements.    Governmental Funds    Governmental funds provide information on near term inflows, outflows and balances of spendable  resources.  Unassigned fund balance is a useful measure of net resources available to be spent at the end  of the fiscal year.  Governmental funds consist of the General Fund, Special Revenue Funds, Permanent  Fund, Debt Service Funds and Capital Project Funds.      As of September 30, 2015, Collier County governmental funds reported combined fund balances of  $412,533,879, an increase of $43,754,453 when compared to prior year combined fund balances.  The  governmental funds had non‐spendable fund balances of $6,658,136 consisting of inventory, prepaid  items, notes receivable and General Fund and Other Governmental Fund advances to other funds.  The  restricted fund balance was $293,625,771 and consists of monies whose expenditure is externally  11     constrained by grantors, creditors, binding law or enabling legislation.  Of the remaining $112,249,972 in  fund balance, $25,662,659 is classified as committed, $32,098,782 is recorded as assigned and  $54,488,531 is recorded as unassigned.      The following were noteworthy activities and changes relating to the major governmental funds for fiscal  year 2015:     The General Fund is the primary operating fund of Collier County.  At September 30, 2015,  total fund balance in the General Fund was $60,191,643, of which $55,002,184 was  unassigned.  As a percentage of total general fund expenditures and net transfers, the  unassigned portion is 16.9%.  The total fund balance decreased by $18,407,167 or 23.4%,  compared to the September 30, 2014 total fund balance.  The decrease in total fund balance  was primarily the result of an increase in General Fund operating transfers to Other  Governmental Funds when compared to fiscal year 2014.     The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted  areas in the Bayshore Gateway Triangle.  During fiscal year 2015 the Bayshore Gateway  Community Redevelopment Agency collected $1,009,800 in tax increment revenues.  In  addition, miscellaneous revenues of $421,170, consisting mostly of rents and a $152,000 non‐ refundable deposit related to a potential real estate sale, were received.   Operating  expenditures of $489,557 were associated with the Bayshore Gateway Triangle Community  Redevelopment Agency.       The Immokalee Community Redevelopment Agency was created to benefit blighted areas in  Immokalee.  During fiscal year 2015, the Immokalee Community Redevelopment Agency  collected $356,000 in tax increment revenues and was reimbursed $2,882,743 primarily for  stormwater improvements in downtown Immokalee. In addition, grant revenues of $20,645  were received for transportation improvements.   Capital expenditures of $2,793,688 were  made for stormwater and transportation improvements with a further $456,551 being spent  on associated operating costs.    Proprietary funds     Proprietary fund statements provide the same information as the business‐type activities in the  government‐wide financial statements, but in greater detail, and on a fund basis for enterprise funds.    At September 30, 2015, total net position amounted to $909,442,595 for enterprise funds, as compared  to $891,761,778, as restated, as of September 30, 2014, an increase of $17,680,817.  Net position changes  as a result of operations, non‐operating revenues and expenses, capital contributions and grants and  donations.  The Collier County Water and Sewer District’s activities represent the largest share of the  increase in the business‐type net position.      For the year ended September 30, 2015, the Collier County Water and Sewer District reported capital  grants and contributions of $17,352,735, which consists of water and sewer impact fees of $12,647,736,  $4,698,719 in developer infrastructure contributions and other contributions of $6,280.    2015 2014 County Water and Sewer 1,698,445$         748,899$             Solid Waste  Disposal 2,659,868            1,420,189            Non‐major enterprise funds (21,542,395)        (23,394,859)        Total (17,184,082)$     (21,225,771)$      Net Operating Income/(Loss)   12     The Collier County Water and Sewer District’s net operating income increased by $949,546 when  compared to fiscal year 2014.  The increase in net operating income was primarily the result of a 9.0%  increase in overall water and sewer rates, effective October 1, 2014.  County Water and Sewer payments  in lieu of taxes paid to the General Fund of $5,203,400 were reclassified from operating expense to  operating transfers for financial statement purposes.  These payments are reclassified pursuant to  generally accepted accounting principles as the amount charged is not an approximation of services  rendered. Total operating expenses, including depreciation, increased by $7,770,784, or 7.3%, when  compared to fiscal year 2014.    The Solid Waste Disposal fund’s net operating income increased by $1,239,679 when compared to fiscal  year 2014.  The increase in net operating income was primarily the result of a 7.0% increase in residential  and commercial municipal waste tonnage and construction and demolition waste being accepted into the  Naples landfill during fiscal year 2015.  The Solid Waste Disposal payments in lieu of taxes paid to the  General Fund of $210,600 were reclassified from operating expense to operating transfers for financial  statement purposes.  These payments are reclassified pursuant to generally accepted accounting  principles as the amount charged is not an approximation of services rendered. Total operating expenses,  including depreciation, increased by $2,512,740, or 7.4%, when compared to fiscal year 2014.    Capital Assets    Collier County’s financial statements present capital assets in two distinct groups, those that are  depreciated and those not subject to depreciation.  Buildings and equipment are examples of assets that  are depreciated and land and construction in progress are examples of assets not depreciated.  Collier  County’s investment in capital assets for the governmental and business‐type activities amounted to  $2,481,507,654, net of accumulated depreciation.  This investment in capital assets, both purchased and  donated, includes land, buildings and improvements, water and wastewater plants, machinery and  equipment, parks, roads, beach renourishment and drainage structures.  Investment in capital assets for  the current fiscal year, net of depreciation, decreased by $19,904,678 when compared to the previous  year.  There was a decrease in the governmental activities net capital assets of $10,719,890, or .7%, while  the business‐type activities capital assets decreased by $9,184,788, or 1.0%.  The major capital asset  activities during the current and previous fiscal years are as follows:       Capitalization as construction in progress of $41,783,774 for governmental activity related  costs including $9,158,445 related to US 41 and Collier Boulevard intersection improvements,  $4,434,172 for improvements to Collier Boulevard from Golden Gate Boulevard to Green  Boulevard and $2,316,458 for improvements to Golden Gate Boulevard from Wilson  Boulevard to Everglades Boulevard.  Stormwater improvements of $4,133,696 and  $2,381,074 were capitalized relating to County Barn Road and downtown Immokalee,  respectively.  A total of $6,147,322 was spent on the purchase of a new Supervisor of  Election’s building and renovation of the Collier Jail’s heating, ventilation and air conditioning  system.  The remaining $13,212,607 is related to $5,009,493 in other transportation projects,  $3,434,079 in other physical environment projects, $2,162,691 in culture and recreation  projects and $2,606,344 in other capital projects.     The business‐type activities capitalized $31,709,969 of construction in process during fiscal  year 2015 including $2,083,330 for utility force main transmission system improvements,  $2,299,219 for joint utility projects with the Florida Department of Transportation,  $2,119,980 for well and plant power systems improvements and $3,190,815 for distribution  system improvements.   In addition, $1,214,392 was related to the solid waste fund’s ongoing  project to construct hammerheads (turnarounds) on rural roads to facilitate trash pickup.  The  remaining $20,802,233 was made up of $15,186,482 in other County Water and Sewer  13     projects, $343,888 in other airport projects, $886,619 in solid waste projects, $766,325 in  Emergency Medical Services projects and $3,618,919 in Mass Transit.      Total purchases of land and non‐depreciable assets were $5,025,821 for fiscal year 2015,  compared to $11,531,337 for fiscal year 2014.    Additional information regarding Collier County’s capital assets can be found in Note 5 beginning on  page 52 of this report.    Debt Administration    At September 30, 2015, Collier County had total bonded debt, notes and loans, net of premiums of  $552,212,685, a decrease of $35,339,050 from the previous year.  The following table illustrates the  balances of all bonds, notes and loans, net, for the fiscal years ended September 30, 2015 and 2014:    2015 2014 Limited General  Obligation Bonds, net 3,368,515$         3,780,677$          Revenue  Bonds, net 437,967,928      463,677,586       State  Revolving Fund Loans 104,410,895      112,943,672       Miscellaneous Notes 6,465,347           7,149,800              Total 552,212,685$    587,551,735$     Outstanding Debt     On September 30, 2015 the Collier County Water and Sewer District issued the Series 2015 Water and  Sewer Refunding Revenue Bond in the par amount of $17,687,000 for the purpose of advance refunding  a portion of the District’s Series 2006 Revenue Bonds.      The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit.   Further information regarding Collier County’s long‐term debt can be found in Note 6 beginning on page  53 of this report.    General Fund Budgetary Highlights      During the current fiscal year, the Board of County Commissioners approved a $2,826,645 increase in  General Fund expenditure appropriations between the original and the final amended budget.  Significant  variances between the original budget and the final amended budget are listed below:     $211,900 increase in charges for services and Clerk’s overall budget to recognize additional  revenues received and provide for additional data processing software and minor computer  equipment.     $442,201 increase in County Attorney operating due to re‐budgeting of lapsed appropriations  from the previous fiscal year.     $340,941 increase in charges for services and Facilities Management operating related to an  increase in maintenance requests.     $1,334,000 increase in charges for services and Sheriff’s agency personal services related to  special detail duties.     $164,060 increase in Economic Development operating due to re‐budgeting of lapsed  appropriations from the previous fiscal year as well as additional funding for a Soft Landing  Accelerator project.  14     Significant variances between actual results and final budget amounts in the General Fund occurred  during fiscal year 2015.  Tax revenues were under budget by $7,803,369 primarily due to the early  payment discount allowed for property taxes.  The discount ranges from a maximum 4% to 1%, depending  on the date of payment.  General Fund general government expenditures were under budget primarily  due to $1,298,463 in unspent budget related to goods and services contracted for in 2015 that had not  been received as of September 30, 2015 as well as an effort to reduce spending in all departments.      Economic Factors and Year 2016 Budgets and Rates     The following factors were taken into account in preparing the fiscal year 2016 budget:     A 7.5% increase in countywide taxable property values.     Millage neutral General Fund and Unincorporated Area General Fund tax rates.     Expected year on year increases in sales tax and state shared revenues of 2.0% and 2.6%,  respectively.     No new fees or service charges to Collier County residents.       Expected expanded position requests to meet the increase in service expectations.     Maintain health care program contributions at 80% employer and 20% employee across all  agencies (excluding Sheriff and Tax Collector).    During fiscal year 2015, the General Fund unassigned fund balance decreased by $2,778,169 to  $55,002,184.  As of January 22, 2016, $48,509,000 of the fiscal year 2015 unassigned fund balance has  been appropriated as carryforward for fiscal year 2016, with $27,890,800 budgeted in reserves.    Contact Information        This financial report is intended to give the user a general overview of Collier County Government’s  finances.  Any questions resulting from review of this information may be addressed to:    Collier County Clerk of the Circuit Court  Department of Finance and Accounting  3299 Tamiami Trail East, Suite #403  Naples, Florida 34112‐5746    Our office may also be contacted via the internet at www.collierclerk.com.   15 Governmental Business‐type Component Activities Activities Total Units  ASSETS   Current assets:    Cash, cash equivalents and investments 176,276,278$    175,718,466$ 351,994,744$   343,675$        Cash with fiscal agent 11,704,336        ‐                        11,704,336       ‐                       Trade receivables, net 2,294,692          12,521,437     14,816,129       ‐                       Special assessments receivable ‐                           30,454            30,454               ‐                       Interest receivable 442,463             583,558          1,026,021         ‐                       Due from other governments 5,955,077          278,267          6,233,344         ‐                       Internal balances (3,216,066)         3,216,066       ‐                          ‐                       Deposits 56,361                ‐                        56,361               ‐                       Inventory 2,456,570          5,840,495       8,297,065         ‐                       Prepaid costs 143,769             260,788          404,557            ‐                       Restricted assets:         Cash, cash equivalents and investments 18,131,927        6,412,410       24,544,337       ‐                            Trade receivables, net 1,478,909          69,225            1,548,134         ‐                            Notes receivable 45,612                ‐                        45,612               ‐                            Interest receivable 695,634             47,975            743,609            ‐                            Due from other governments 24,439,880        4,140,952       28,580,832       ‐                            Deposits 1,250                  ‐                        1,250                 ‐                            Inventory for resale 11,951,923        ‐                        11,951,923       ‐                        Total current assets 252,858,615       209,120,093  461,978,708     343,675         Noncurrent assets:    Restricted assets:         Cash, cash equivalents and investments 249,855,487       30,073,608     279,929,095     ‐                            Notes receivable 609,564             ‐                        609,564            ‐                            Impact fee receivable 4,984,026          ‐                        4,984,026         ‐                      Special assessments receivable 5,473                  10,118            15,591               ‐                      Notes receivable 1,623,781          ‐                        1,623,781         ‐                      Unamortized bond insurance 15,570                133,489          149,059            ‐                      Capital assets:         Land and non‐depreciable capital assets 469,069,032       77,564,459     546,633,491     ‐                            Depreciable capital assets, net 1,102,106,605   832,767,558  1,934,874,163 ‐                        Total noncurrent assets 1,828,269,538   940,549,232  2,768,818,770 ‐                          Total assets 2,081,128,153   1,149,669,325 3,230,797,478 343,675         DEFERRED OUTFLOWS OF RESOURCES   Deferred charges on debt refundings 13,545,140        4,843,433       18,388,573       ‐                      Deferred outflows of resources related to pensions 28,139,705        5,993,638       34,133,343       ‐                          Total deferred outflows of resources 41,684,845$      10,837,071$   52,521,916$      ‐$                    COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2015  The notes to the financial statements are an integral part of this statement. Primary Government 16 Governmental Business‐type Component Activities Activities Total Units  LIABILITIES   Current liabilities:     Accounts payable 11,854,965$      11,548,576$   23,403,541$      ‐$                      Wages payable 8,171,109          2,827,581       10,998,690       ‐                       Retainage payable 465,898             826,728          1,292,626         ‐                       Due to other governments 3,179,545          176,497          3,356,042         ‐                       Self‐insurance claims payable 5,703,441          ‐                        5,703,441         ‐                       Compensated absences 8,206,198          2,075,855       10,282,053       ‐                       Capital lease obligations 595,162             283,358          878,520            ‐                       Unearned revenue 13,922                59,217            73,139               ‐                       Interest payable 5,201,901          1,603,702       6,805,603         ‐                       Bonds and loans payable 20,161,289        6,783,792       26,945,081       ‐                       Liabilities payable from restricted assets:         Accounts payable 9,171,859          1,338,442       10,510,301       ‐                            Wages payable 1,862,254          3,668               1,865,922         ‐                            Retainage payable 1,493,880          287,769          1,781,649         ‐                            Refundable deposits 1,325,933          88,778            1,414,711         ‐                            Notes payable ‐                           64,255            64,255               ‐                            Due to other governments 3,731,252          68,553            3,799,805         ‐                            Unearned revenue 1,035                  75,368            76,403               ‐                            Bonds and loans payable ‐                           5,971,084       5,971,084         ‐                        Total current liabilities  81,139,643        34,083,223     115,222,866     ‐                      Noncurrent liabilities:    Self‐insurance claims payable 1,255,993          ‐                        1,255,993         ‐                       Compensated absences 13,584,127        518,965          14,103,092       ‐                       Capital lease obligations 924,333             790,609          1,714,942         ‐                       Landfill post‐closure liability ‐                           1,905,976       1,905,976         ‐                       Net OPEB obligation 2,994,152          ‐                        2,994,152         ‐                       Net pension liability 134,200,768       26,451,457     160,652,225     ‐                       Bonds and loans payable, net 337,886,077       181,346,188  519,232,265     ‐                        Total noncurrent liabilities  490,845,450       211,013,195  701,858,645     ‐                            Total liabilities 571,985,093       245,096,418  817,081,511     ‐                      DEFERRED INFLOWS OF RESOURCES   Deferred inflows of resources related to pensions 22,183,538        4,531,774       26,715,312       ‐                      NET POSITION   Net investment in capital assets 1,217,175,435   714,239,414  1,931,414,849 ‐                      Restricted for:         Growth related capital expansion 83,591,428        20,820,502     104,411,930     ‐                            Transportation capital projects 31,912,751        ‐                        31,912,751       ‐                            Tourist development 59,643,088        ‐                        59,643,088       ‐                            Conservation 33,843,610        ‐                        33,843,610       ‐                            Community redevelopment 12,448,739        ‐                        12,448,739       ‐                            Grants  7,690,204          1,320,937       9,011,141         ‐                            Debt service 5,370,395          9,069,663       14,440,058       ‐                            Nonexpendable purposes ‐ other 2,555,691          ‐                        2,555,691         ‐                            Special revenues ‐ other 61,304,221        ‐                        61,304,221       ‐                            Renewal and replacement ‐                           300,000          300,000            ‐                      Unrestricted 13,108,805        165,127,688  178,236,493     343,675           Total net position 1,528,644,367$ 910,878,204$ 2,439,522,571$343,675$      Primary Government 17 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and  FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions Primary Government:   Governmental Activities:      General government 93,643,877$             34,240,147$                2,615,827$               2,348,429$                   Public safety 174,874,148             25,227,164                  5,542,670                3,100,567                    Physical environment 22,812,939                819,750                       3,522,778                2,119,602                    Transportation 70,295,765                1,093,847                    14,716,315              13,324,636                  Economic environment 9,308,791                  2,883,453                    6,451,771                37,887                          Human services 13,499,287                534,155                       2,386,101                124,905                        Culture and recreation 45,116,881                8,684,562                    285,378                   8,929,822                    Interest and fiscal charges 12,912,451                 ‐                                      ‐                                  ‐                                       Total governmental activities 442,464,139             73,483,078                  35,520,840              29,985,848               Business‐type Activities:      Water and sewer 122,857,731             116,644,674               35,674                      17,341,213                  Solid waste 36,410,616                39,120,692                  111,351                   ‐                                     Airport authority 4,770,853                  3,349,767                    ‐                                 368,842                        Mass transit 10,416,433                1,719,206                    4,788,094                3,455,290                    Emergency medical services 24,094,317                12,327,543                  206,588                   ‐                                       Total business‐type activities 198,549,950             173,161,882               5,141,707                21,165,345                       Total primary government 641,014,089             246,644,960               40,662,547              51,151,193             Component Units:   Industrial Development Authority 15$                            32,500$                        ‐$                               ‐$                                 Health Facilities Authority 12                              75,000                          ‐                                 ‐                                  Housing Finance Authority 85                              32,905                          ‐                                 ‐                                          Total component units 112$                           140,405$                      ‐$                               ‐$                               General revenues:  Property taxes  Gas taxes  Sales taxes  Tourist taxes  Communications services tax  State revenue sharing  Other taxes  Interest income  Miscellaneous Transfers, net  Total general revenues and transfers     Change in net position Net position ‐ beginning Restatement of net position due to implementation of GASB 68 Net position ‐ beginning, as restated Net position ‐ ending The notes to the financial statements are an integral part of this statement.   COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 18 Governmental Business‐type Component Activities Activities Total Units (54,439,474)$         ‐$                         (54,439,474)$       ‐$                     (141,003,747)          ‐                           (141,003,747)       ‐                      (16,350,809)           ‐                           (16,350,809)         ‐                      (41,160,967)           ‐                           (41,160,967)         ‐                      64,320                    ‐                           64,320                   ‐                    (10,454,126)           ‐                           (10,454,126)         ‐                      (27,217,119)           ‐                           (27,217,119)         ‐                      (12,912,451)           ‐                           (12,912,451)         ‐                      (303,474,373)          ‐                           (303,474,373)        ‐                    ‐                               11,163,830        11,163,830           ‐                      ‐                               2,821,427          2,821,427             ‐                      ‐                               (1,052,244)         (1,052,244)            ‐                      ‐                               (453,843)            (453,843)               ‐                      ‐                               (11,560,186)       (11,560,186)         ‐                      ‐                               918,984              918,984                 ‐                    (303,474,373)         918,984              (302,555,389)       ‐                    32,485$        74,988         32,820         140,293       259,778,922          ‐                           259,778,922        ‐                    19,546,741            ‐                           19,546,741           ‐                    38,572,787            ‐                           38,572,787           ‐                    21,188,190            ‐                           21,188,190           ‐                    4,855,279               ‐                           4,855,279             ‐                    10,589,362            ‐                           10,589,362           ‐                    2,467,269               ‐                           2,467,269             ‐                    5,068,585               2,209,097          7,277,682             78                 17,509,698            94,026                17,603,724           ‐                    (14,192,140)           14,192,140        ‐                             ‐                    365,384,693          16,495,263        381,879,956        78                 61,910,320            17,414,247        79,324,567           140,371       1,600,910,225       920,233,550      2,521,143,775     203,304       (134,176,178)         (26,769,593)       (160,945,771)       ‐                    1,466,734,047       893,463,957      2,360,198,004     203,304       1,528,644,367$    910,878,204$    2,439,522,571$   343,675$      Primary Government Net (Expense) Revenue and Changes in Net Position 19 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds ASSETS Cash, cash equivalents and investments 64,792,690$   758,649$        229,191$        328,933,797$ 394,714,327$   Cash with fiscal agent ‐                         ‐                        ‐                        11,704,336      11,704,336        Receivables:       Interest 168,533           1,771               806                   856,405            1,027,515                Trade, net 634,167           ‐                        236                   1,849,254        2,483,657                Notes 1,623,781        ‐                        ‐                        655,176            2,278,957                Impact fee ‐                         ‐                        ‐                        4,984,026        4,984,026                Special assessments ‐                         ‐                        ‐                        5,473                5,473                  Due from other funds 5,218,119        ‐                        ‐                        15,125,957      20,344,076        Due from other governments 5,392,906        ‐                        ‐                        24,974,205      30,367,111        Deposits 4,628                ‐                        625                   1,250                6,503                  Inventory for resale ‐                         11,722,190     ‐                        229,733            11,951,923        Inventory 1,144,635        ‐                        ‐                        922,450            2,067,085          Advances to other funds 711,800           ‐                        ‐                        528,901            1,240,701          Prepaid costs 66,169              ‐                        ‐                        77,600              143,769               Total assets 79,757,428$   12,482,610$  230,858$       390,848,563$483,319,459$   LIABILITIES, DEFERRED INFLOWS OF     RESOURCES AND FUND BALANCES Liabilities:   Accounts payable 7,499,398$      21,290$           3,525$             12,664,573$    20,188,786$       Wages payable 6,461,737        10,236             14,395             3,153,816        9,640,184            Due to other funds 871,227           ‐                        3,462               18,425,078      19,299,767          Due to other governments 1,397,180        845                   ‐                        5,481,949        6,879,974            Unearned revenue 485                   ‐                        ‐                        7,528                8,013                    Refundable deposits 1,261,598        1,500               ‐                        62,835              1,325,933            Retainage payable ‐                         ‐                        ‐                        1,959,778        1,959,778            Advances from other funds ‐                         ‐                        268,901           4,052,080        4,320,981              Total liabilities 17,491,625      33,871             290,283           45,807,637      63,623,416        Deferred inflows of resources:    Unavailable revenue 2,074,160        ‐                      ‐                      5,088,004      7,162,164          Fund balances (deficit):   Nonspendable 3,546,385        ‐                        ‐                        3,111,751        6,658,136            Restricted 344,611           12,448,739     ‐                        280,832,421    293,625,771       Committed ‐                         ‐                        ‐                        25,662,659      25,662,659          Assigned 1,298,463        ‐                        ‐                        30,800,319      32,098,782          Unassigned 55,002,184      ‐                        (59,425)            (454,228)          54,488,531            Total fund balances (deficit)60,191,643      12,448,739     (59,425)            339,952,922    412,533,879       Total liabilities, deferred inflows of     resources and fund balances (deficit)79,757,428$   12,482,610$  230,858$       390,848,563$483,319,459$   The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS  SEPTEMBER 30, 2015 20 412,533,879$      411,580,042$      57,488,990            depreciation 1,086,879,170    1,555,948,202     15,570                  7,162,164             (5,201,901)$         (341,276,092)       (1,519,495)           (21,288,624)         (131,485,294)       (16,771,274)        (517,542,680)       13,545,140          Pension deferred outflows 27,566,066          Pension deferred inflows (21,789,491)         51,205,517          1,528,644,367$   The notes to the financial statements are an integral part of this statement. Total net position ‐ governmental activities   Fund balances ‐ total governmental funds Land and other non‐depreciable assets Construction in progress Depreciable assets, net of $805,098,834 in accumulated Accrued interest on bonds Bonds and notes payable Capital lease obligations  Compensated absences Unamortized premium Unamortized deferred charges on refunding COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION Internal service funds are used by the County to charge self‐insurance, fleet management and information technology services to individual funds.  The assets and liabilities of the internal  service funds are included in governmental activities in the statement of net position.  Internal  service fund net position is: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.  Those assets consist of: Certain revenues will be collected after year‐end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred inflows in the funds. Certain long‐term assets are not financial resources and therefore are not reported in the     governmental funds ‐ unamortized bond insurance premium. Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities.  Interest on long‐term  debt is not accrued in the governmental funds, but is recognized as an expenditure when due.  All liabilities are reported in the statement of net position.  Balances at September 30, 2015  are: Differences in amounts reported for governmental activities in the statement of net position on pages 16‐17:      SEPTEMBER 30, 2015 Pension liability 21 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds  Revenues:     Taxes 221,480,290$ 1,009,800$    356,000$        77,495,048$   300,341,138$     Licenses, permits and impact fees 309,500            ‐                      710                 51,008,451    51,318,661           Intergovernmental  51,121,618       ‐                      20,645           41,676,002    92,818,265           Charges for services 16,277,577      ‐                      2,882,743      18,011,504    37,171,824           Fines and forfeitures 434,229           ‐                      ‐                      2,432,366      2,866,595             Interest income 1,086,564        7,719             3,288             3,508,214      4,605,785             Special assessments ‐                        ‐                      ‐                      3,131,864      3,131,864             Miscellaneous 3,487,550        421,170         ‐                      12,154,314    16,063,034             Total revenues 294,197,328   1,438,689     3,263,386      209,417,763  508,317,166      Expenditures:     Current:       General government 53,927,908      ‐                      ‐                      24,218,751    78,146,659             Public safety 140,857,023   ‐                      ‐                      26,930,683    167,787,706          Physical environment 718,830           ‐                      ‐                      15,438,233    16,157,063             Transportation 251,022           ‐                      ‐                      36,741,483    36,992,505             Economic environment 1,073,596        489,557         456,551         7,139,407      9,159,111               Human services 10,001,930      ‐                      ‐                      3,148,589      13,150,519             Culture and recreation 14,243,709      ‐                      ‐                      23,278,994    37,522,703           Debt service:      Principal 570,323           ‐                      ‐                      19,469,106    20,039,429            Interest ‐                        ‐                      ‐                      13,554,708    13,554,708            Fiscal charges ‐                         ‐                       ‐                      21,337            21,337                  Capital outlay 9,351,915         ‐                      2,793,688      50,040,401    62,186,004                    Total expenditures 230,996,256   489,557         3,250,239      219,981,692  454,717,744            Excess (deficiency) of revenues            over (under) expenditures 63,201,072      949,132         13,147           (10,563,929)   53,599,422         Other financing sources (uses):    Capital leases 1,914,480         ‐                       ‐                       ‐                       1,914,480             Sale of capital assets 570,843            ‐                       ‐                      24,294            595,137                Insurance proceeds 67,208              ‐                      ‐                      312,102          379,310                Transfers in 10,644,487      136,800         76,000           185,168,723  196,026,010        Transfers out (94,805,257)    (905,700)       (192,708)        (112,856,241) (208,759,906)       Total other financing sources (uses)(81,608,239)    (768,900)       (116,708)        72,648,878    (9,844,969)                Net change in fund balances (18,407,167)    180,232         (103,561)        62,084,949    43,754,453        Fund balances at beginning of year 78,598,810      12,268,507   44,136           277,867,973  368,779,426     Fund balances (deficit) at end of year 60,191,643$   12,448,739$  (59,425)$         339,952,922$ 412,533,879$   STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COLLIER COUNTY, FLORIDA The notes to the financial statements are an integral part of this statement.  22 43,754,453$      62,186,004$       (72,123,697)       (9,937,693)         1,212,136           18,053                (470,738)             (46,259)               (1,914,480)         19,414,518$       624,911              20,039,429         3,080,671$        5,585,576          341,628               (9,385)                  (1,175,185)          1,506,536           9,329,841           (74,422)               61,910,320$     Change in net position ‐ governmental activities   The notes to the financial statements are an integral part of this statement. Amortization of bond insurance premium Amortization of deferred charges on refunding Amortization of premium The net revenues of internal service funds are reported with governmental activities. Net change in fund balances ‐ total governmental funds Certain revenues not considered available are not recognized in the governmental funds but are  included in the statement of activities.   FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION Differences in amounts reported for governmental activities in the statement of net position on pages 18‐19: Capital outlay Depreciation expense Governmental funds report capital outlays as expenditures.  However, in the statement of net position the cost of those assets is allocated over their estimated useful lives and reported as depreciation  expense. Donations of capital assets are not financial resources to governmental funds, but receiving donated   assets increases net position in the statement of net position. In the statement of net position, the gain or loss on the sale of capital assets is reported.  However, in   the governmental funds the proceeds from the sale of capital assets increase financial resources.  The  change in net position differs from the change in fund balance by the net book value of assets  disposed.   Debt proceeds provide current financial resources to governmental funds, but issuing debt increases   long‐term liabilities in the statement of net position. Capital assets transferred to and from proprietary funds are not recorded in the governmental funds   as there is no flow of current financial resources. Accrued interest on bonds and loans Compensated absences Proceeds from capital leases Bond and loan principal payments Payments on capital lease obligations 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. 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. Pension expense 23   Original Final Budget Budget Actual Variance Revenues: Taxes 229,290,200$ 229,290,200$ 221,486,831$  (7,803,369)$     Licenses, permits and impact fees 280,900           280,900           309,500            28,600              Intergovernmental 44,585,000      44,585,000      51,121,618      6,536,618        Charges for services 17,529,146      19,419,670      16,277,577      (3,142,093)       Fines and forfeitures 470,200           470,200           434,229            (35,971)             Interest income 452,600           452,600           932,265            479,665            Miscellaneous 7,385,900        7,447,060        10,431,350      2,984,290        Total revenues 299,993,946   301,945,630   300,993,370    (952,260)          Expenditures: Current: General government Board of County Commissioners personal services 1,069,700        1,070,200        1,047,704        22,496              Board of County Commissioners operating 83,900              83,900              54,559              29,341              County manager administrative personal services 681,400           693,800           689,017            4,783                County manager administrative operating 40,900              40,900              29,482              11,418              Budget and management personal services 669,700           657,300           562,848            94,452              Budget and management operating 67,000              97,100              87,357              9,743                Administrative services personal services 2,427,800        2,397,200        2,301,015        96,185              Administrative services operating 159,300           190,200           165,456            24,744              Administrative services capital outlay 1,500                16,500              16,497              3                        Human resources administration personal services 1,192,400        1,215,973        1,172,865        43,108              Human resources administration operating 300,200           300,200           256,402            43,798              Clerk of the Circuit Court personal services 6,987,800        6,754,200        6,528,467        225,733            Clerk of the Circuit Court operating 1,892,700        2,454,300        2,234,866        219,434            Clerk of the Circuit Court capital outlay 343,100           227,000           226,710            290                    Property Appraiser personal services 5,174,383        5,174,383        5,026,460        147,923            Property Appraiser operating 1,549,810        1,549,810        1,572,042        (22,232)             Property Appraiser capital outlay 25,000              25,000              121,281            (96,281)             Tax Collector personal services 10,040,774      10,040,774      9,708,287        332,487            Tax Collector operating 2,036,647        2,020,178        1,744,766        275,412            Tax Collector capital outlay 29,522              45,991              45,270              721                                                                                            County attorney personal services 2,197,300        2,212,300        2,191,762        20,538              County attorney operating 367,500           809,701           393,415            416,286            County attorney capital outlay 3,000                3,000                2,268                732                    Natural resource planning operating 106,400           106,400           100,100            6,300                Circuit court costs operating 34,700              34,700              33,593              1,107                County court cost operating 22,800              22,800              21,961              839                    State Attorney operating 272,500           272,500           264,968            7,532                Public Defender operating 210,700           210,700           205,986            4,714                Other general administrative personal services 200,000           178,100           38,994              139,106            Other general administrative operating 6,733,200        6,599,897        4,619,704        1,980,193        Facilities management personal services 3,846,400      3,846,400      3,789,265       57,135             Facilities management operating 7,917,500      8,258,441      8,191,711       66,730             Facilities management capital outlay 216,800         239,500         239,331           169                   Sheriff personal services 2,959,600      2,959,600      3,634,660       (675,060)         Sheriff operating 131,700         131,700         78,912             52,788             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, 2015 24 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 1,983,100      1,988,100      1,913,220       74,880             Supervisor of Elections operating 1,282,600      1,229,072      1,134,580       94,492             Supervisor of Elections capital outlay 32,200            73,920            73,915             5                       Real property management personal services 658,400         658,400         617,493           40,907             Real property management operating 34,500            34,500            32,901             1,599                 Total general government 63,984,436    64,924,640    61,170,090     3,754,550       Public safety Sheriff personal services 114,498,800 115,832,800 113,929,185  1,903,615       Sheriff operating 25,544,100    25,923,873    24,287,764     1,636,109       Sheriff capital outlay 2,036,300      2,036,300      4,871,760       (2,835,460)       Emergency management administration personal services 859,400         854,400         824,505           29,895             Emergency management administration operating 566,600         571,600         518,770           52,830             Helicopter operations personal services 813,900         803,900         772,782           31,118             Helicopter operations operating 626,600         627,200         587,749           39,451             Helicopter operations capital outlay ‐                       9,400              3,887               5,513               Medical examiner services operating 1,106,200      1,106,200      1,101,284       4,916                 Total public safety 146,051,900 147,765,673 146,897,686  867,987           Physical environment Conservation and resource management personal services 628,600         628,600         597,860           30,740             Conservation and resource management operating 147,300         151,540         120,114           31,426             Conservation and resource management capital outlay 39,000            34,760            34,616             144                   Immokalee cemetery operating 3,100              3,100              856                   2,244                 Total physical environment 818,000         818,000         753,446           64,554             Transportation Alternative transportation modes personal services 237,500         237,500         237,054           446                   Alternative transportation modes operating 20,000            20,000            13,968             6,032               Alternative transportation modes capital outlay 34,000            34,000            24,690             9,310                 Total transportation 291,500         291,500         275,712           15,788             Economic environment Veterans services personal services 301,400         301,400         294,610           6,790               Veterans services operating 53,900            48,200            36,570             11,630             Veterans services capital ‐                       5,700              5,610               90                     Economic development personal services 347,700         347,700         279,610           68,090             Economic development operating 1,148,600      1,312,660      462,806           849,854             Total economic environment 1,851,600      2,015,660      1,079,206       936,454           Human services Health Care Responsibility Act operating 46,100            46,100            21,359             24,741                                                                                    Domestic animal services personal services 1,992,200      1,992,200      1,903,212       88,988             Domestic animal services operating 725,500         706,700         664,523           42,177             Domestic animal services capital outlay 120,200         139,000         ‐                        139,000                                                                                  Health department operating 1,577,600      1,604,792      1,271,431       333,361           Health department capital outlay 48,000            20,808            20,360             448                   Mental health operating 1,154,200      1,154,200      811,516           342,684           Client assistance personal services 675,400         724,400         706,664           17,736             Client assistance operating 4,562,100      4,475,192      4,099,414       375,778           Client assistance capital outlay 24,000            27,800            27,686             114                   Public services division office personal services 526,400         526,400         490,473           35,927             Public services division office operating 31,800            33,444            27,119             6,325               Public services division office capital outlay 2,500              7,856              7,856               ‐                          Total human services 11,486,000    11,458,892    10,051,613     1,407,279       (continued) 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, 2015 25 Original Final Budget Budget Actual Variance Library administration personal services 5,460,500      5,460,500      5,136,126       324,374           Library administration operating 1,495,600      1,491,600      1,447,554       44,046             Library administration capital outlay 82,000            86,000            54,704             31,296             Beach and water park operations personal services 4,299,400      4,273,400      4,014,164       259,236           Beach and water park operations operating 3,962,600      3,914,109      3,640,574       273,535           Beach and water park operations capital outlay 242,500         352,707         310,659           42,048               Total culture and recreation 15,542,600    15,578,316    14,603,781     974,535             Total expenditures 240,026,036 242,852,681 234,831,534  8,021,147         Excess of revenues over expenditures 59,967,910    59,092,949    66,161,836     (8,973,407)       Other financing sources (uses): Sale of capital assets 200,000         200,000         570,843           (370,843)         Insurance proceeds ‐                       11,757            67,208             (55,451)            Transfers in 5,562,079      5,863,152      10,644,487     (4,781,335)       Transfers out (77,483,889)  (78,179,371)  (78,328,083)   148,712             Total other financing sources (uses)(71,721,810)  (72,104,462)  (67,045,545)   (5,058,917)         Net change in fund balance (11,753,900)  (13,011,513)  (883,709)          (14,032,324)       Fund balance at beginning of year 54,213,300    55,188,913    55,188,913     ‐                          Fund balance at end of year 42,459,400$  42,177,400$  54,305,204$    (14,032,324)$  Reconciliation:     Net change in fund balance, budgetary basis (883,709)$                 Net change in fair value of investments 154,299                     Change in inventory 1,066,044                 Equipment purchases for multi‐period projects not budgeted (1,350,335)                Ad valorem refunds not budgeted (6,541)                        Advances reclassified to transfers (17,386,925)          Net change in fund balance, GAAP basis (18,407,167)$    GENERAL FUND COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Culture and recreation  The notes to the financial statements are an integral part of this statement. 26 Original Final Budget Budget Actual Variance Revenues:   Taxes 1,009,800$1,009,800$1,009,800$ ‐$                         Charges for services ‐                  308,740     ‐                   (308,740)             Interest income 2,000         2,000         6,490           4,490                  Miscellaneous 318,500    443,500    421,170      (22,330)                 Total revenues 1,330,300 1,764,040 1,437,460   (326,580)           Expenditures:     Economic environment Personal services 257,500    257,500    240,073      17,427              Operating 231,000    240,544    143,446      97,098              Capital outlay ‐                  308,740     ‐                   308,740                 Total expenditures 488,500    806,784    383,519      423,265                   Excess of revenues over expenditures 841,800    957,256    1,053,941   96,685              Other financing sources (uses):   Transfers in 136,800    136,800    136,800      ‐                           Transfers out (905,700)   (1,030,700) (905,700)     (125,000)               Total other financing uses (768,900)   (893,900)   (768,900)     (125,000)                  Net change in fund balance 72,900       63,356       285,041      (28,315)             Fund balance at beginning of year 344,800    354,344    354,344      ‐                         Fund balance at end of year 417,700$   417,700$   639,385$     (28,315)$           Reconciliation: 285,041$      1,229                 Change in inventory held for resale (106,038)      180,232$      The notes to the financial statements are an integral part of this statement.      Net change in fund balance, budgetary basis       Net change in fair value of investments       Net change in fund balance, GAAP basis  COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 27 Original Final Budget Budget Actual Variance Revenues:    Taxes 356,000$   356,000$   356,000$     ‐$                          Licenses, permits and impact fees ‐                  ‐                  710              710                       Intergovernmental ‐                  20,645       20,645        ‐                            Charges for services ‐                  3,149,168 2,882,743   (266,425)              Interest income 1,000         1,000         2,756           1,756                    Total revenues 357,000    3,526,813 3,262,854   (263,959)           Expenditures:     Economic environment Personal services ‐                  349,850    267,272      82,578              Operating 506,900    303,763    189,279      114,484            Capital outlay ‐                  3,043,101 2,793,688   249,413                 Total expenditures 506,900    3,696,714 3,250,239   446,475                   Deficiency of revenues under expenditures (149,900)   (169,901)   12,615        182,516            Other financing sources:   Transfers in 76,000       344,902    76,000        268,902              Transfers out ‐                  (192,708)   (192,708)      ‐                             Total other financing uses 76,000       152,194    (116,708)     268,902                   Net change in fund balance (73,900)     (17,707)     (104,093)     451,418            Fund balance at beginning of year 144,500    144,500    144,500      ‐                         Fund balance at end of year 70,600$     126,793$   40,407$       451,418$          Reconciliation: (104,093)$    532               (103,561)$    The notes to the financial statements are an integral part of this statement.      Net change in fund balance, budgetary basis       Net change in fair value of investments       Net change in fund balance, GAAP basis  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, 2015 28 Governmental Activities ‐ County Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds ASSETS Current assets:   Cash, cash equivalents and investments 141,465,535$   23,674,598$   10,578,333$   175,718,466$ 49,549,365$          Receivables:         Trade, net 10,103,890       904,331          1,513,216       12,521,437      1,289,944                    Special assessments 30,454               ‐                        ‐                        30,454             ‐                                    Interest  389,486             167,177          26,895            583,558           110,582                  Due from other funds 15,400               56,984            19,022            91,406             255,514                  Due from other governments 248,871             ‐                        29,396            278,267           27,846                    Deposits ‐                          ‐                        ‐                        ‐                         51,108                    Inventory 5,714,483          ‐                        126,012          5,840,495        389,485                  Prepaid costs ‐                          ‐                        260,788          260,788           ‐                               Restricted assets:         Cash, cash equivalents and investments 5,930,561          66,927            414,922          6,412,410        ‐                                    Trade, net 69,225               ‐                        ‐                        69,225             ‐                                    Interest 47,332               ‐                        643                  47,975             ‐                                    Due from other governments ‐                          ‐                        4,140,952       4,140,952        ‐                                Total current assets 164,015,237      24,870,017     17,110,179     205,995,433  51,673,844           Noncurrent assets:    Restricted assets:         Cash, cash equivalents and investments 30,073,608       ‐                        ‐                        30,073,608      ‐                               Receivables:         Special assessments 10,118               ‐                        ‐                        10,118             ‐                                Advances to other funds 1,504,132          1,576,148       ‐                        3,080,280        ‐                               Unamortized bond insurance 133,489             ‐                        ‐                        133,489           ‐                               Capital assets:         Land and nondepreciable capital assets 57,789,865       7,774,034       12,000,560     77,564,459      ‐                                    Depreciable capital assets, net 757,673,076      22,428,263     52,666,219     832,767,558  15,227,435             Total noncurrent assets 847,184,288      31,778,445     64,666,779     943,629,512  15,227,435               Total assets 1,011,199,525   56,648,462     81,776,958     1,149,624,945 66,901,279          DEFERRED OUTFLOWS OF RESOURCES  Deferred charges on debt refundings 4,843,433          ‐                        ‐                        4,843,433        ‐                              Deferred outflows of resources related to pensions 2,367,891          197,944          3,427,803       5,993,638        573,639                     Total deferred outflows of resources 7,211,324          197,944          3,427,803       10,837,071      573,639                (Continued) COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2015 Business‐type Activities Enterprise Funds 29 Governmental Activities ‐ County Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds LIABILITIES  Current liabilities:    Accounts payable 8,521,276$       2,220,889$      806,411$         11,548,576$    838,038$                Wages payable 1,451,996          131,261          1,244,324       2,827,581        393,179                  Retainage payable 806,525             ‐                        20,203            826,728           ‐                               Due to other funds 365,859             ‐                        1,025,370       1,391,229        ‐                               Due to other governments 172,490             617                  3,390               176,497           30,823                    Unearned revenue ‐                          ‐                        59,217            59,217             6,944                       Self‐insurance claims payable ‐                          ‐                        ‐                        ‐                         5,703,441               Compensated absences 1,392,767          129,432          553,656          2,075,855        401,361                  Capital lease obligations ‐                          ‐                        283,358          283,358           ‐                               Interest payable 1,603,702          ‐                        ‐                        1,603,702        ‐                               Bonds and loans payable 6,783,792          ‐                        ‐                        6,783,792        ‐                               Liabilities payable from restricted assets:         Accounts payable ‐                          ‐                        1,338,442       1,338,442        ‐                                    Wages payable ‐                          ‐                        3,668               3,668                ‐                                    Retainage payable ‐                          ‐                        287,769          287,769           ‐                                    Due to other governments ‐                          ‐                        68,553            68,553             ‐                                    Refundable deposits 73,025               ‐                        15,753            88,778             ‐                                    Unearned revenue ‐                          66,927            8,441               75,368             ‐                                    Notes payable 64,255               ‐                        ‐                        64,255             ‐                                    Bonds and loans payable 5,971,084          ‐                        ‐                        5,971,084        ‐                                Total current liabilities  27,206,771       2,549,126       5,718,555       35,474,452      7,373,786              Noncurrent liabilities:    Self‐insurance claims payable ‐                          ‐                        ‐                        ‐                         1,255,993               Compensated absences 348,192             32,358            138,415          518,965           100,340                  Capital lease obligations ‐                          ‐                        790,609          790,609           ‐                               Net OPEB obligation ‐                          ‐                        ‐                        ‐                         2,994,152               Net pension liability 11,556,848       984,622          13,909,987     26,451,457      2,715,474               Landfill post‐closure liability ‐                          1,905,976       ‐                        1,905,976        ‐                               Bonds and loans payable, net 181,346,188      ‐                        ‐                        181,346,188  ‐                                Total noncurrent liabilities  193,251,228      2,922,956       14,839,011     211,013,195  7,065,959                    Total liabilities 220,457,999     5,472,082       20,557,566     246,487,647  14,439,745          DEFERRED INFLOWS OF RESOURCES  Deferred inflows of resources related to pensions 1,551,500          125,701          2,854,573       4,531,774        394,047                NET POSITION  Net investment in capital assets 622,018,059     30,070,072     62,151,283     714,239,414  15,156,612           Restricted for grants and other purposes ‐                          ‐                        1,320,937       1,320,937        ‐                              Restricted for growth related capital expansion 20,820,502       ‐                        ‐                        20,820,502      ‐                              Restricted for renewal and replacement 300,000             ‐                        ‐                        300,000           ‐                              Restricted for debt service 9,069,663          ‐                        ‐                        9,069,663        ‐                              Unrestricted 144,193,126      21,178,551     (1,679,598)     163,692,079  37,484,514             Total net position 796,401,350$    51,248,623$    61,792,622$    909,442,595    52,641,126$         Cumulative consolidation adjustment for internal service fund activities related to enterprise funds 1,435,609          Net position of Business‐type Activities 910,878,204$   The notes to the financial statements are an integral part of this statement.  Business‐type Activities Enterprise Funds SEPTEMBER 30, 2015 PROPRIETARY FUNDS STATEMENT OF NET POSITION COLLIER COUNTY, FLORIDA 30 Governmental County Activities ‐ Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds  Operating revenues:     Charges for services 116,069,777$     38,944,709$          17,142,340$        172,156,826$      78,024,564$            Miscellaneous 574,897              175,983                254,176              1,005,056           61,512                       Total operating revenues 116,644,674        39,120,692           17,396,516         173,161,882       78,086,076            Operating expenses:     Personal services 25,392,683          2,196,132             20,616,888         48,205,703         6,250,224                Operating  48,950,954          33,015,590           14,444,623         96,411,167         70,439,778              Depreciation and amortization 40,602,592          1,249,102             3,877,400           45,729,094         1,846,856                  Total operating expenses 114,946,229        36,460,824           38,938,911         190,345,964       78,536,858                  Operating income (loss) 1,698,445            2,659,868             (21,542,395)       (17,184,082)        (450,782)                Non‐operating revenues (expenses):     Operating grants and contributions 35,674                111,351                4,994,682           5,141,707           ‐                                Interest income 1,802,591            298,855                107,651              2,209,097           462,800                   Insurance reimbursement 55,618                3,932                     34,476                94,026                 1,102,413                Interest expense (5,037,532)            ‐                             (22,363)               (5,059,895)           ‐                                Gain (Loss) on disposal of capital assets (2,903,749)           (17,900)                 14,250                (2,907,399)          20,874                       Total non‐operating revenues (expenses) (6,047,398)           396,238                5,128,696           (522,464)             1,586,087              Income (loss) before contributions and transfers (4,348,953)           3,056,106             (16,413,699)       (17,706,546)        1,135,305                Capital grants and contributions 17,352,735          ‐                             3,824,132           21,176,867         303                           Transfers in 518,780              86,810                   19,807,408         20,412,998         ‐                                Transfers out (5,467,200)           (723,661)               (11,641)               (6,202,502)          (1,476,600)             Changes in net position 8,055,362            2,419,255             7,206,200           17,680,817         (340,992)                Net position ‐ beginning, as previously stated 799,763,895        49,809,654           68,957,822         55,864,001            Restatement of net position due to        implementation of GASB 68 (11,417,907)        (980,286)               (14,371,400)       (2,881,883)             Net position ‐ as restated 788,345,988        48,829,368           54,586,422         52,982,118            Net position ‐ ending 796,401,350$     51,248,623$          61,792,622$        52,641,126$         (266,570)              17,414,247$         The notes to the financial statements are an integral part of this statement.  Consolidation adjustment for internal service fund activities related to enterprise funds       Change in net position of Business‐type Activities  COLLIER COUNTY, FLORIDA Business‐type Activities Enterprise Funds FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION 31 Governmental County Activities ‐ Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds Cash flows from operating activities: Cash received for services 116,406,735$ 38,980,175$   17,510,425$   172,897,335$ ‐$                          Cash received from other funds for services ‐                         ‐                         ‐                         ‐                         69,358,316         Cash received from employees for services ‐                         ‐                         ‐                         ‐                         6,787,209            Cash received from other governments for services ‐                         ‐                         ‐                         ‐                         368,869               Cash received from refundable deposits 129,000           516,620           ‐                         645,620           ‐                            Cash received from retirees for services ‐                         ‐                         ‐                         ‐                         1,385,986            Cash payments on behalf of retirees ‐                         ‐                         ‐                         ‐                         (2,439,766)          Cash payments for goods and services (42,875,262)    (31,199,326)    (10,741,931)    (84,816,519)    (67,021,640)        Cash payments to employees (25,971,083)    (2,262,088)       (21,640,412)    (49,873,583)    (6,576,435)          Cash payments for interfund services (6,957,137)       (1,588,857)       (3,837,878)       (12,383,872)    (715,671)              Cash payments on refundable deposits (113,000)          (519,396)          ‐                         (632,396)          ‐                            Net cash provided by (used for) operating activities 40,619,253      3,927,128        (18,709,796)    25,836,585      1,146,868            Cash flows from non‐capital financing activities: Cash received from operating grants 600,000           111,351           5,325,414        6,036,765        ‐                            Cash transfers from other funds 472,340           630,587           19,839,712      20,942,639      ‐                            Cash transfers to other funds (6,967,200)       (677,221)          (3,789,622)       (11,434,043)    (1,884,022)          Net cash provided by (used for) non‐capital     financing activities (5,894,860)       64,717              21,375,504      15,545,361      (1,884,022)          Cash flows from capital and related financing activities: System development charges 12,647,736      ‐                         ‐                         12,647,736      ‐                            Special assessment collections 8,549                ‐                         ‐                         8,549                ‐                            Receipts from insurance reimbursements 82,019              3,932                83,834              169,785           1,120,136            Proceeds from loans 17,687,000      ‐                         ‐                         17,687,000      ‐                            Proceeds from disposal of capital assets 2,059,652        3,528                10,789              2,073,969        23,565                 Proceeds from capital grants ‐                         ‐                         9,159,557        9,159,557        ‐                            Payments for capital acquisitions (26,538,697)    (3,713,615)       (7,519,748)       (37,772,060)    (344,946)              Principal payments on state revolving loans (8,532,777)       ‐                         ‐                         (8,532,777)       ‐                            Principal payments on bonds (6,073,205)       ‐                         ‐                         (6,073,205)       ‐                            Payments to escrow agents (17,882,314)    ‐                         ‐                         (17,882,314)    ‐                            Principal payments on leases ‐                         ‐                         (278,323)          (278,323)          ‐                            Interest and fiscal agent fees paid (6,620,035)       ‐                         (22,363)            (6,642,398)       ‐                            Net cash provided by (used for) capital and related     financing activities (33,162,072)    (3,706,155)       1,433,746        (35,434,481)    798,755               Cash flows from investing activities: Interest on investments 1,543,217        252,042           89,220              1,884,479        396,555               Net cash provided by investing activities 1,543,217        252,042           89,220              1,884,479        396,555               3,105,538        537,732           4,188,674        7,831,944        458,156               Cash, cash equivalents and investments, October 1, 2014 174,364,166   23,203,793      6,804,581        204,372,540   49,091,209         Cash, cash equivalents and investments, September 30, 2015 177,469,704$ 23,741,525$   10,993,255$   212,204,484$ 49,549,365$       141,465,535$23,674,598$  10,578,333$  175,718,466$ 49,549,365$      5,930,561      66,927            414,922         6,412,410        ‐                          30,073,608    ‐                       ‐                       30,073,608      ‐                          Cash, cash equivalents and investments, September 30, 2015 177,469,704$ 23,741,525$   10,993,255$   212,204,484$ 49,549,365$       (Continued) COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015  Current cash, cash equivalents and investments ‐ restricted   Current cash, cash equivalents and investments  Business‐type Activities Enterprise Funds Net increase in cash, cash equivalents and investments  Noncurrent cash, cash equivalents and investments ‐ restricted  32 Governmental County Activities ‐ Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds Operating income (loss)1,698,445$      2,659,868$      (21,542,395)$  (17,184,082)$  (450,782)$            Adjustments to reconcile operating income (loss) to   net cash provided by (used for) operating activities: Depreciation expense 40,131,522      1,249,102        3,877,400        45,258,024      1,846,856            Amortization of bond insurance costs 8,273                ‐                         ‐                         8,273                ‐                            Amortization of deferred charges on debt refundings 462,797           ‐                         ‐                         462,797           ‐                            Net changes in assets and liabilities: Trade receivable (308,106)          (120,922)          135,033           (293,995)          (1,161,031)          Due from other funds ‐                         23,525              (41,302)            (17,777)            (173,026)              Due from other governments 71,301              ‐                         212                   71,513              18,180                 Inventory (394,783)          ‐                         61,771              (333,012)          380,178               Prepaid costs 5,298                ‐                         (52,325)            (47,027)            ‐                            Accounts payable (493,230)          159,356           (149,757)          (483,631)          174,037               Wages payable 154,173           12,237              117,135           283,545           36,078                 Due to other funds 137                   44,660              21,066              65,863              (39,300)                Due to other governments ‐                         (134)                  1,047                913                   30,744                 Compensated absences (55,124)            (10,286)            (103,273)          (168,683)          (16,288)                Refundable deposits 16,000              (2,776)              (819)                  12,405              ‐                            Unearned revenue ‐                         ‐                         1,054                1,054                (2,828)                  Self‐insurance claims payable ‐                         ‐                         ‐                         ‐                         386,606               Net OPEB obligation ‐                         ‐                         ‐                         ‐                         463,445               Net pension liability and related deferred outflows/inflows (677,450)          (67,907)            (1,034,643)       (1,780,000)       (346,001)              Landfill post closure liability ‐                         (19,595)            ‐                         (19,595)            ‐                            Total adjustments 38,920,808      1,267,260        2,832,599        43,020,667      1,597,650            Net cash provided by (used for) operating activities 40,619,253$  3,927,128$     (18,709,796)$ 25,836,585$   1,146,868$        Non‐cash investing, capital and financing activities: 311,643$         50,161$           18,541$           380,345$         50,182$               4,698,719      ‐                       ‐                       4,698,719        ‐                          11,524            ‐                       433,985         445,509           303                     ‐                       ‐                       (5,769,410)      (13,793)          ‐                       ‐                       (13,793)            ‐                          Capital related accounts payable 2,950,612      132,225         1,133,557      4,216,394        70,823               The notes to the financial statements are an integral part of this statement. COLLIER COUNTY, FLORIDA Business‐type Activities Enterprise Funds STATEMENT OF CASH FLOWS PROPRIETARY FUNDS  (CONTINUED) RECONCILIATION OF OPERATING INCOME (LOSS) TO  NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Change in special assessment receivable Contributed capital assets Developer infrastructure contributions   Change in fair value of investments Change in capital related grant receivable 33 Agency Funds ASSETS  Cash, cash equivalents and investments  40,975,879$              Receivables:     Interest 16,240                          Other 33,208                        Total assets 41,025,327$             LIABILITIES  Due to other governments 8,502,105$                Due to individuals 542,545                     Refundable deposits 31,156,744               Due to special assessment holders  823,933                      Total liabilities 41,025,327$             COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2015 The notes to the financial statements are an integral part of this statement.  34 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015      INDEX    NOTE    PAGE NUMBER         1  Summary of Significant Accounting Policies  36  2  Cash, Cash Equivalents and Investments  47  3  Trade Receivables  49  4  Interfund Payables and Receivables  50  5  Capital Assets  52  6  Long‐Term Debt  53  7  Conduit Debt Obligations  60  8  Defeased Debt   60  9  Defined Benefit Pension Plans   61  10  Defined Contribution Plan  67  11  Transfers   68  12  Net Position/Fund Balances   69  13  Risk Management   72  14  Other Postemployment Benefits   73  15  Landfill Liability   76  16  Significant Contingencies   77  17  Significant Commitments   78  18  Fund Deficits   79  19          Change in Accounting Principle                                                                                    80                              35 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES    THE REPORTING ENTITY    The primary government consists of Collier County, a political subdivision of the State of Florida that was established in  1923 by the Florida State Legislature.  The County is governed by a Board of County Commissioners which consists of  five members elected within single member districts.  In addition, there are five separately elected Constitutional  Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of  Elections.  The Constitutional Officers are elected county wide.  Under the direction of the Clerk of the Circuit Court and  Comptroller, the Finance and Accounting Department maintains the accounting system for the operations of the Board  of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court and Comptroller.  The Tax Collector,  Property Appraiser and Sheriff each maintain their own accounting systems.  For financial reporting purposes, the  operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the  primary government.    Component units are legally separate agencies that the primary government is financially accountable for or  organizations which should be included in the reporting entity because of the nature and significance of their  relationship with the primary government.  Financial accountability is determined by the primary government's ability  to appoint the voting majority of the entity's board, impose its will on the organization, and the existence of a financial  benefit/burden relationship or fiscal dependency.    The County's blended component units consist of organizations whose respective governing Boards are composed  entirely of the Board of County Commissioners serving ex‐officio.  These entities are legally separate, however the  County has the financial and operational responsibility for these component units.  In accordance with Governmental  Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended, these organizations  are reported as if they were part of the County's operations.    Collier County Water and Sewer District  The District was established by Chapter 88‐499, Laws of Florida, as amended by Chapter 03‐353, to  provide water, sewer and effluent services to portions of the unincorporated area of Collier County.      Collier County Community Redevelopment Agency (CRA)   The CRA was established by Resolution 2000‐82 to benefit blighted areas in both the 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 for short‐ term and long‐term planning for all modes of travel in order to benefit the citizens of Collier County.  The  MPO is reported as part of the Grants and Shared Revenues fund.     The County's discretely presented component units consist of organizations whose board members are appointed by  the Board of County Commissioners.  The County is able to impose its will on these entities because of its ability to  remove appointed members from the component units' Boards.  The Authorities maintain their own financial records,  but do not issue separate financial statements.  GASB No. 14, as amended, requires that the financial data of the  following organizations be reported in separate columns to emphasize that they are legally separate from the County.    36 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    Collier County Housing Finance Authority  The Authority was formed in 1980 by Collier County Ordinance 80‐66 for the purpose of stimulating the  construction of residential housing for low and moderate income families through the use of public  financing.  Their financial position and results of operations are reported in the accompanying financial  statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt  Obligations”.     Collier County Health Facilities Authority  The Authority was established in 1979 by Collier County Ordinance 79‐95 for the purpose of assisting health  facilities in the acquisition, construction and financing of projects within the County.  Their financial position  and results of operations are reported in the accompanying financial statements and the outstanding  conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”.     Collier County Industrial Development Authority  The Authority was created in 1978 by Collier County Resolution 78‐94, rescinded and replaced by Resolution  79‐34, to facilitate the financing of projects that promote economic growth and increase opportunities for  employment in the County.  Their financial position and results of operations are reported in the  accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in  Note 7, “Conduit Debt Obligations”.     Collier County Educational Facilities Authority  The Authority was created in 1999 by Collier County Resolution 99‐17 to assist institutions for higher  education in the construction, financing and refinancing of projects. Their financial position and results of  operations are reported in the accompanying financial statements and the outstanding conduit debt issued  by the Authority is disclosed in Note 7, “Conduit Debt Obligations”.     Financial information on the individual component units can be obtained from their respective administrative offices  or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller.    Administrative Offices   Collier Water and Sewer District  3339 East Tamiami Trail, Suite #302  Naples, Florida  34112    Collier County Airport Authority  2005 Mainsail Drive, Suite #1  Naples, Florida  34114    Collier County Industrial Development Authority and Educational Facilities Authority  3050 North Horseshoe Drive, Suite #120  Naples, Florida  34104    Collier County Health Facilities Authority  and Housing Finance Authority  5150 Tamiami Trail North, Suite #502  Naples, Florida  34103    Bayshore Gateway Community Redevelopment Agency 3570 Bayshore Drive, Unit #102  Naples, Florida 34112    Immokalee Community Redevelopment Agency 1320 North 15th Street  Immokalee, Florida  34142  Collier County Metropolitan Planning Organization 2885 South Horseshoe Drive  Naples, Florida 34104    Certain separate legal entities within the County are autonomous organizations with their own governmental powers  and constituencies.  These entities, which are not included in these financial statements, are as follows:    37 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    The Cities of Naples, Marco Island and Everglades  The Cities of Naples, Marco Island and Everglades are in the boundaries of Collier County. Each of these entities  has a separately elected board and separate budgeting, accounting and reporting requirements.    Collier County School Board  The Collier County School Board operates countywide and is completely separate and autonomous.  The School  Board has five elected board members and a superintendent of schools and operates under regulations  prescribed by the State Board of Education and the Florida Statutes.  It levies its own taxes and receives part of  its income from the State of Florida.      GOVERNMENT‐WIDE AND FUND FINANCIAL STATEMENTS    The basic financial statements are made up of the government‐wide financial statements and fund financial  statements. Both of these sets of financial statements distinguish between the governmental and business‐type  activities of Collier County.  The government‐wide financial statements consist of a Statement of Net Position and a  Statement of Activities.  These statements report on the financial condition of Collier County, at the reporting entity  level.  Internal balances represent net amounts due between the governmental and business‐type activities.  As a  general rule, the effect of interfund activity has been eliminated from the government‐wide financial statements  with the exception of interfund services provided and used.  The internal service activity has also been eliminated  from the government‐wide financial statements.  Aggregate internal service fund activity is reported in full as a single  column in the proprietary fund financial statements. Fiduciary funds are not included in these presentations as their  assets do not represent amounts that are available for Collier County government operations.  The Statement of Net  Position reports all financial and capital resources of Collier County’s governmental and business‐type activities.  Net  position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources, and is  shown in three categories:  net investment in capital assets; restricted net position and unrestricted net position.   The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates  to what degree the particular program has been self‐supporting.    Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly  identifiable to a particular function.  The effect of indirect expense allocations has been eliminated in the government‐ wide financial statements.  Depreciation expense for capital assets that can specifically be identified with a function is  recorded as a direct expense of that function.  Depreciation for capital assets that serve all functions is recorded as a  direct expense of the general government function on the government‐wide Statement of Activities. All interest on  general long term debt is considered indirect and is reported separately in the government‐wide Statement of  Activities.    Program revenues are reported in the following three categories:  charges for services, operating grants and  contributions and capital grants and contributions.  Charges for services are amounts charged to customers for a  particular service, and are netted against the cost of the relevant program.  Internal charges for indirect services are  allocated across functions as direct expenses.  Grants and contributions refer to revenues restricted for capital or  operational use in a particular program.  The general revenue category encompasses all other revenue types and  represents revenue collected to support all functions of Collier County government.    The fund financial statements follow the government‐wide statements and report more detailed information about  operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and  proprietary funds.  Following the governmental fund balance sheet and statement of revenues, expenditures and  changes in fund balances are reconciliations explaining the differences between the governmental fund presentation  and the government‐wide presentation.         38 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    BASIS OF PRESENTATION    The following are reported as major governmental funds:    General Fund – the General Fund is the general operating fund of the County.  All general tax revenues and  other receipts that are not accounted for in other funds are accounted for in the General Fund.  The general  operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of  Elections and Tax Collector are presented together with the Board of County Commissioners' general  operating fund in the County’s consolidated General Fund.    Bayshore/Gateway and 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.    Collier County also maintains the following nonmajor fund types:    Special Revenue Fund – Special revenue funds are used to account for the proceeds of specific revenue  sources that are restricted or committed to expenditure for specific purposes other than debt service or  capital projects.    Permanent Fund – Permanent funds are used to account for resources that were legally restricted to the  extent that only earnings and not principal may be spent.  Collier County operates a permanent fund to  defray costs associated with the maintenance and management of conservation land.      Debt Service Funds – Debt service funds are used to account for the accumulation of resources that are  restricted, committed or assigned to expenditure for principal and interest related to long‐term  obligations.    Capital 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 and Information Technology.    Agency Funds – Agency funds are custodial in nature and do not report the results of operations (assets  equal liabilities).  Agency funds are clearing accounts for assets held by the government as an agent for  individuals, private organizations or other governments.  The Board of County Commissioners, Sheriff,  Clerk of the Circuit Court and Comptroller and Tax Collector all maintain agency funds.      39 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    MEASUREMENT FOCUS AND BASIS OF ACCOUNTING    Measurement focus indicates the type of resources being measured such as current financial resources (current assets  less current liabilities) or economic resources (all assets and liabilities).  Basis of accounting refers to when revenues  and expenditures or expenses are recognized in the accounts and reported in the financial statements.  The basis of  accounting relates to the timing of the measurements made regardless of the measurement focus applied     The government‐wide and proprietary fund financial statements are reported using the economic resources  measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities  associated with the operation of these funds are included on the Statement of Net Position and the operating  statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position.  Under the accrual basis of  accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are  recognized in the period incurred.  Grant and similar revenues are recognized when eligibility requirements are met.   Proprietary funds distinguish operating revenues and expenses from non‐operating items.  Operating revenues and  expenses generally result from providing services and producing and delivering goods in connection with a proprietary  fund’s principal ongoing operations.  Operating expenses for proprietary funds include the cost of sales and services,  administrative expenses and depreciation on capital assets.  All revenues and expenses not meeting this definition are  reported as non‐operating revenues and expenses.    Governmental fund financial statements are reported using the current financial resources measurement focus and the  modified accrual basis of accounting.  With this measurement focus, only current assets and current liabilities generally  are included on the balance sheet.  Operating statements of these funds present increases (i.e., revenues and other  financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified  accrual basis of accounting, revenues are recognized when they become measurable and available to finance  expenditures of the fiscal period.  Generally, revenues are considered available when they are collected within the  current period or within 60 days after the end of the fiscal year.  Grant revenues are an exception and are considered  available when eligibility requirements are met.  Primary revenues which have been treated as susceptible to accrual  include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues.   Property taxes are discussed later in Note 1.  Expenditures are recorded when the related fund liability is incurred.   Exceptions to this general rule include accrued compensated absences and principal and interest on long‐term debt.     When both restricted and unrestricted resources are available, restricted resources will be used first for incurred  expenses, and then unrestricted as needed.  When using the unrestricted resources, committed amounts would be  reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for  purposes for which amounts in any of those unrestricted fund balance classifications could be used.     BUDGETS AND BUDGETARY DATA    The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets  for the County:    1) Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County  budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year.  The budget  includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward  at the end of the year as specified in Section 129.03, Florida Statutes.    2) Within eighty days of the certification of value, but not earlier than sixty‐five days after certification, the  Board holds a public hearing on the tentative budget and proposed millage rate.  At this hearing the Board  amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly  the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled‐back rate.  If the  millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of  the increase by first class mail, at the expense of the Board.  40 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    3) Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's  intent to adopt a final budget and millage rate.     4) A public hearing is held by the Board to finalize the budget and adopt a millage rate.  This hearing is held  not less than two days and not more than five days after the day that the advertisement is first published.   Prior to September 30, the millage levy is adopted by a separate vote.  The millage rate adopted is not  allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with  strict public notice requirements.   This is followed by the approval and ratification of the final budget.    5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and  Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the  Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has  complied with the provisions of Chapter 200, Florida Statutes.    6) The County Manager approves interdepartmental budget changes within the same fund and division of  $50,000 or less that do not impact reserves or recognize revenue.  All other budgetary changes must be  approved by the Board of County Commissioners as matter of policy.  The initial adopted budget was  amended in accordance with Florida Statutes.    7) Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund  budgets are unlawful.  However, because the Board approves all budgetary changes between departments,  except those approved by the County Manager, the departmental budget becomes the level of control.     Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets  have been legally adopted by the Board for all Board departments except for the agency funds and the Impact Fees  Escrow special revenue fund.  The Property Appraiser and the Tax Collector adopt budgets for their general funds  independently of the Board.  The Clerk of Courts operates as a fee officer, and as such, prepares its budget in accordance  with Section 218.35, Florida Statutes.    The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved  by the Board.   The Clerk of Court’s budget for court related functions is prepared according to Section 28.36 Florida  Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget  Commission.    Budgets are adopted for all governmental departments except as described in the previous paragraph.  These  budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain  non‐budgeted revenues and expenditures and mark to market activity on investments.  All unencumbered  appropriations lapse at the end of the current year.  For further information regarding encumbrances, refer to Note  17 on page 78.    Capital project costs are budgeted in the year they are anticipated to be obligated.  In subsequent years, the unused  budget is reappropriated until the project is completed.  Proprietary funds are budgeted on a basis consistent with  generally accepted accounting principles, except that capital related and debt transactions are based upon cash  receipts and disbursements.  Estimated beginning fund balances are considered in the budgetary process.    For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental  funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary  financial statements.  Specifically, bad debt expense and the net change in fair value of investments are not  presented in the budget to actual statements.      41 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    CASH AND INVESTMENTS    The County is required by Section 218.415 Florida Statutes to adopt a written investment policy consistent with the  requirements of that statute.  The County’s current investment policy, as amended, was adopted December 9, 2014 by  Resolution 2014‐260.  This investment policy formally establishes guidelines and authorized the following investments:      1) U.S. Treasury and Government Guaranteed – U.S. Treasury obligations and obligations the principal and interest  of which are backed or guaranteed by the full faith and credit of the U.S. Government;    2) Federal Agency/Government Sponsored Enterprise – Debt obligations, participations or other instruments issued  or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise;    3) Corporates – U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a  domestic corporation, financial institution, non‐profit or other entity;    4) Municipals – Obligations, including both taxable and tax‐exempt, issued or guaranteed by any State, territory or  possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality  or other unit of local government of any State or territory;    5) Agency Mortgage Backed Securities – Mortgage backed securities , backed by residential , multi‐family or  commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or  government sponsored enterprise, including but not limited to pass‐throughs, collateralized mortgage obligations  and real estate mortgage investment conduits;     6) Non‐Negotiable Certificates of Deposit ‐  Non‐negotiable interest bearing time certificates of deposit or savings  accounts in banks organized under the laws of this state or in national banks organized under the laws of the United  States and doing business in this state, provided that any such deposits are secured by the Florida Security for  Public Deposits Act, Chapter 280, Florida Statutes;     7) Depository Bank Account – Negotiated Order of Withdrawal accounts in banks  organized under the laws of this  state or in national banks organized under the laws of the United States and doing business in this state, provided  that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes;    8) Commercial Paper – U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation,  company, financial institution, trust or other entity, including both unsecured debt and asset backed programs;    9) Repurchase Agreements – Repurchase agreements must be governed by written agreement, counterparty must  be a Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank.  Acceptable underlying  securities must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the  United States, or U.S. Agency backed mortgage related securities with an aggregate current market value of at  least 102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price  differential;    10) Money Market Funds – Shares in open end and no load money market mutual funds, provided such funds are  registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange  Commission Rule 2a‐7;    11) Fixed‐Income Mutual Funds – Shares on open end and no load fixed income mutual funds whose underlying  investments would be permitted for purchase under the investment policy and all its restrictions;       42 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED     12) Local Government Investment Pools – State, local government or privately sponsored investment pools that are  authorized pursuant to state law;    13) The Florida Local Government Surplus Funds Trust Funds (Florida Prime).      The County maintains a cash and investment pool that is available for use by all funds.  Investment income is allocated  to individual funds based upon their average daily balance in the cash and investment pool.  Each fund’s individual  equity in the County’s cash and investment pool is considered to be a cash equivalent as the funds can deposit or  withdraw cash at any time without notice or penalty.  The statement of cash flows for the proprietary funds also uses  this methodology.      Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing  service.  Investments in the Local Government Surplus Funds Trust Fund (Florida Prime), which is an external 2a7‐like  investment pool, are stated at share price which is substantively the same as fair value.  Florida Prime is administered  to by the State Board of Administration (SBA) under the regulatory oversight of the State of Florida, Chapter 19‐7 of the  Florida Administrative Code.    RECEIVABLES    All trade receivables are reported net of an allowance for uncollectibles, which is generally a year except for Emergency  Medical Services receivable which uses an estimated uncollectible percentage.    INVENTORIES AND PREPAID COSTS    Inventory is valued at cost using the first‐in, first‐out method.  Inventory in the governmental funds consists of supplies  held for consumption.  The cost is recorded as an expenditure at the time inventory items are consumed rather than  when purchased.  Certain payments to vendors reflect costs applicable to future accounting periods and are recorded  as prepaid items.  Inventories and prepaid costs reported within governmental funds are classified as non‐spendable,  which indicates that they do not constitute available resources.  Inventories and prepaid costs in the government‐wide  and proprietary fund financial statements are reported as an expense when consumed.     Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends  to sell.  The value of these properties includes the original purchase price plus the cost of any rehabilitation.  Inventory  held for resale of $11,951,923 is classified as restricted, which indicates that they do not constitute available resources.    CAPITAL ASSETS    Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and  wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements  and in the governmental or business‐type activities columns in the government‐wide financial statements.  Capital  assets are reported at cost where historical records are available and at estimated fair value in the absence of historical  cost records.  Capital contributions are recorded at their estimated fair value on the date donated.      The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year.   Betterments and major improvements which significantly increase value, change capacity or extend useful lives are also  capitalized.  Expenditures for maintenance and repairs are charged to operating expenses.  The cost of capital assets  retired or sold, together with the related accumulated depreciation, is removed from the respective accounts and any  gain or loss on disposition is credited or charged to earnings in the government‐wide financial statements and  proprietary fund financial statements.     43 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    Depreciation is calculated using the straight‐line method.  The estimated useful life of the various classes of depreciable  capital assets is as follows:    Capital Asset Class Estimated Useful Life  Buildings 20‐45 years Infrastructure 3‐30 years Improvements other than buildings 4‐45 years Machinery and equipment 3‐20 years   CAPITAL LEASE OBLIGATIONS    In the government‐wide financial statements and proprietary fund financial statements capital lease obligations and  the related cost of assets acquired are reflected in the Statement of Net Position.  For capital lease obligations  originating in governmental funds, an expenditure for the asset and the offsetting other financing source is reflected in  the fund financial statements in the year of inception.    DEFERRED OUTFLOWS/INFLOWS OF RESOURCES    In addition to assets, the statement of financial position reports a separate section for deferred outflows of  resources.  This separate financial statement element, deferred outflows of resources, represents a consumption of  net position that applies to a future period(s) and so will not be recognized as an outflow of resources  (expense/expenditure) until then. The deferred outflows of resources reported in the County’s statement of net  position represent changes in actuarial assumptions, the net difference between projected and actual earnings on  Health Insurance Subsidy Program investments, changes in the proportion and differences between the County’s  contributions and proportionate share of contributions, and the County’s contributions subsequent to the  measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy  Program.  These amounts will be recognized as increases in pension expense in future years.  The County also reports  the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net  position.  A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition  price.  This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.  In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of  resources.  This separate financial statement element, deferred inflows of resources, represents an acquisition of net  position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that  time. The deferred inflows of resources reported in the County’s statement of net position represent the difference  between expected and actual economic experience, the net difference between projected and actual earnings on  Florida Retirement System Pension investments, and changes in the proportion and differences between the  County’s contributions and proportionate share of contributions relating to the Florida Retirement System Pension  Plan and the Retiree Health Insurance Subsidy Program.  These amounts will be recognized as reductions in pension  expense in future years. The County has also recorded amounts associated with long term receivables, primarily  related to deferred impact fee agreements, as deferred inflows.      44 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED     BOND PREMIUMS, LOSS ON DEFEASANCE AND ISSUANCE COSTS    Bond premiums and bond insurance costs for the governmental activities and the business‐type activities are deferred  and amortized over the term of the bonds using the straight‐line method which approximates the effective interest  method.  Bond premiums are presented as an increase to the face amount of bonds payable, while bond insurance  costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of  noncurrent assets.     Pursuant to GASB No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is  reported as a deferred inflow or outflow of resources.  The gain or loss is calculated as the difference between the  reacquisition price of the refunded debt and the net carrying amount at the time of the refunding.  The gain or loss is  amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a  component of interest expense.      In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized  in the current period.  The face amount of debt is reported as other financing sources.  Premiums received on debt  issuances are also reported as other financing sources.  Issuance costs, including bond insurance costs, whether or not  they have been paid from debt proceeds are reported as debt service expenditures.     INTEREST COST    In the proprietary funds, interest costs are expensed or capitalized as required by GASB 62, Codification of Accounting  and Financial Reporting Guidance Contained in Pre‐November 30, 1989 FASB and AICPA Pronouncements.    PROPERTY TAXES    Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the  following year.  Property taxes receivable and a corresponding allowance for uncollectible property taxes are not  included in the financial statements, as delinquent taxes as of September 30, 2015 are not significant. Discounts on  property taxes are allowed for payments made prior to the April 1st delinquent date as follows: November ‐ 4%,  December ‐ 3%, January ‐ 2%, and February ‐ 1%.  Tax certificates for the full amount of any unpaid taxes must be  sold no later than June 1st of each year.      No accrual for the property tax levy becoming due in November 2015 is included in the accompanying financial  statements, since such taxes are collected to finance expenditures of the subsequent period.      Key dates in the property tax cycle for the fiscal year ended September 30, 2015 are as follows:    Property Tax Cycle  Date  Assessment roll compiled  January 1, 2014  Assessment roll certified  July 1, 2014  Millage resolution approved  Within 35 days of the certification of the assessment roll  Beginning of fiscal year for tax levy  October 1, 2014  Taxes due and payable (levy date)  November 1, 2014  Collection dates  By November 30:  By December 31:  By January 31:  By February 28:  4% discount  3% discount  2% discount  1% discount  Due date  March 31, 2015  Delinquent (lien date)  April 1, 2015  Tax certificates sold  Prior to June 1, 2015  45 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    ACCOUNTING ESTIMATES    The preparation of financial statements in conformity with generally accepted accounting principles requires  management to make estimates and assumptions that affect the reported amounts of assets and liabilities and  disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of  revenues and expenses during the reporting period.  Actual results may differ from those estimated.    UNEARNED REVENUE    In instances where assets have been received by the County for services to be rendered in future periods, asset  balances are offset by an unearned revenue liability account in the financial statements.  Unearned revenues of the  County as of September 30, 2015 are gift certificates issued and prepayments on accounts.     ACCRUED COMPENSATED ABSENCES    The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences.  This statement  provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates  in effect at the balance sheet date.  It also requires additional amounts to be accrued for certain salary related payments  associated with the payment of compensated absences.    It is the Board of County Commissioners’ policy to allow employees of record on August 2, 1996 a sick leave payment  upon termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440  hours for all employees.  The Sheriff’s policy allows for a percentage of unused sick leave payout based upon years of  service, not to exceed 1,000 hours, and up to 500 hours of unused vacation time.  Both the Clerk of the Circuit Court  and Comptroller’s and Tax Collector’s policies allow for a percentage of unused sick leave payout based upon years of  service, and up to 240 hours of unused vacation hours.  The Property Appraiser’s policy allows for a percentage of  unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 200 hours of unused  vacation hours.  The Supervisor of Election’s policy allows for a percentage of unused sick leave payout based upon  years of service, and up to 440 hours of unused vacation.    Payments for compensated absences are made by the respective fund.  Accrued compensated absences are recorded  as liabilities in the government‐wide financial statements and the proprietary fund financials. A liability is reported in  governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and  are considered due and payable as of year end.    PENSIONS    In the government‐wide and proprietary funds statements of net position, liabilities are recognized for the County’s  proportionate share of each pension plan’s net pension liability. For purposes of measuring the net pension liability,  deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the  Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions  to/deductions from FRS’s and HIS’s fiduciary net position have been determined on the same basis as they are  reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid  dates and benefit payments and refunds of employee contributions are recognized when due and payable in  accordance with the benefit terms. Investments are reported at fair value.        46 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    NEW ACCOUNTING PRONOUNCEMENTS    For the year ended September 30, 2015, the financial statements include the impact of adoption of Governmental  Accounting Standards Board (GASB) Statement 68, Accounting and Financial Reporting for Pensions, and GASB  Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date.  The primary  objective of these statements is to improve accounting and financial reporting for pensions by State and Local  governments.  These statements are a result of a comprehensive review of the effectiveness of existing standards of  accounting and financial reporting for pensions in providing decision useful information, supporting assessments of  accountability and interperiod equity and creating additional transparency.  GASB Statement No. 68 replaces the  requirements of GASBS No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the  requirements of GASBS No. 50, Pension Disclosures.     NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS    The County maintains a cash and investment pool that is available for use by all funds.  Each fund’s portion of this  pool is displayed on the balance sheet under the heading of Cash, Cash Equivalents and Investments.  Investment  income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in  the total pool.    As of September 30, 2015, the County had the following cash, cash equivalents and investments:    Investment Final  Maturities Fair Value First   Call Date Call Frequency Rating * Cash on hand N/A 82,501$            N/A N/A N/A Cash with fiscal  agent N/A 11,704,336      N/A N/A N/A Demand deposits N/A 164,819,961    N/A N/A N/A State Board of Administration  Pool:    Florida  PRIME N/A 742,264            N/A N/A AAAm Federal  Home Loan Mortgage Corporation 10/14/2016 25,104,775      N/A N/A AA+ Federal  National  Mortgage Association 11/28/2016 24,989,025      05/28/2014 quarterly AA+ US Treasury  Note 11/30/2016 50,042,950      N/A N/A AA+ US Treasury  Note 01/15/2017 60,221,100      N/A N/A AA+ US Treasury Note 02/15/2017 25,046,225      N/A N/A AA+ US  Tr easury  Note 03/15/2017 10,035,030      N/A N/A AA+ Federal  Farm Credit Bank 10/23/2017 10,000,870      04/23/2015 continuously AA+ Federal  National  Mortgage Association 03/29/2018 35,066,535      09/29/2015 quarterly AA+ Federal  National  Mortgage Association 04/02/2018 50,099,650      10/02/2015 quarterly AA+ Federal  Home Loan Mortgage Corporation 05/18/2018 29,996,460      11/18/2015 quarterly AA+ Federal  Farm Credit Bank 12/16/2019 25,077,350      12/16/2015 continuously AA+ Federal  Home Loan  Bank 12/30/2019 15,091,065      12/30/2015 once AA+ Federal  Home Loan  Bank 12/30/2019 15,094,815      12/30/2015 once AA+ Federal  Home Loan  Bank 12/30/2019 11,342,951      12/30/2015 quarterly AA+ Federal  National  Mortgage Association 01/15/2020 15,008,835      07/15/2013 quarterly AA+ Federal  Farm Credit Bank 02/03/2020 14,296,313      02/03/2016 continuously AA+ Federal  Home Loan  Mortgage Corporation 02/13/2020 25,033,400      02/13/2017 once AA+ Federal  National  Mortgage Association 03/30/2020 50,180,900      03/30/2016 quarterly AA+ Federal  Farm Credit Bank 04/01/2020 40,071,080      04/01/2016 continuously AA+ Total 709,148,391$   * Standard and Poor's rating 47 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS – CONTINUED    CREDIT RISK    Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.  The investment  practices are governed by Florida Statutes, Chapter 218 and the Investment Policy.      The Investment Policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus  Trust Fund (Florida PRIME), direct obligations of, or obligations backed by the full faith and credit of the United States  Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing  Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds  collateralized by U.S. Government Securities or Agencies, domestic bankers’ acceptances rated “AA” or higher, prime  commercial paper rated “A‐1” and “P‐1”, tax‐exempt obligations rated “AA” or higher and issued by state or local  governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying  repurchase agreements.    The policy requires that each firm involved in a repurchase agreement must execute the County’s master repurchase  agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one  day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities  and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at  least weekly.  Florida PRIME is an investment pool administered by the State Board of Administration (SBA), under the  regulatory oversight of the State of Florida.      At September 30, 2015, the Sheriff had $742,264 invested in the State Board of Administration’s Local Government  Surplus Funds Trust Fund Investment Pool.  All of these funds are held in the Florida PRIME pool.  Florida PRIME is  rated “AAAm” by Standard & Poor’s Ratings Services.       All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for  Public Deposits Act".  Under the Act, all qualified public depositories are required to pledge eligible collateral having a  market value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the  depository's collateral pledging level.  The pledging level may range from 25% to 200% depending upon the depository's  financial condition.  Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged  as collateral, and if necessary, assessments against other qualified public depositories of the same type as the  depository in default.    CUSTODIAL CREDIT RISK    The policy requires execution of a third‐party custodial safekeeping agreement for purchased securities and  collateral, and requires that securities be held in the County’s name.   At September 30, 2015, the County had  demand deposits of $164,819,961.  All balances in excess of the Federal Depository Insurance Corporation insurance  for these demand deposits are fully collateralized by the multiple financial institutions’ collateral pool in accordance  with Florida Statutes Section 280.  The discretely presented component unit demand deposits of $343,675 are  secured by the Federal Depository Insurance Corporation as individual entity balances do not exceed $250,000.     INTEREST RATE RISK    Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.   One of the primary objectives of the investment policy is to match investment cash flow and maturity with known  cash needs and anticipated cash flow requirements.  The County limits exposure to interest rate risk by structuring  the portfolio to meet daily cash flow demands.   Investments shall have an average maturity of not more than five  years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably  definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities  that are not associated with a specifically identified cash flow schedule.  48 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS – CONTINUED    The portion of the County’s cash, cash equivalents and investments invested in U.S. Government Instrumentalities  is detailed as follows, at September 30, 2015:    Issuer % of Portfolio Federal  Home Loan  Bank 5.86% Federal  Farm Credit Bank 12.61% Federal  Home Loan  Mortgage Corporation 11.30% Federal  National  Mortgage Association 24.73% Total  U.S. Government Instrumentalities 54.50%    Reconciliation of cash, cash equivalents and investments to the basic financial statements:    Primary government: Cash, cash equivalents  and investments 351,994,744$      Cash with Fiscal  Agent 11,704,336           Restricted cash, cash equivalents  and investments ‐ current 24,544,337           Restricted cash, cash equivalents  and investments ‐ noncurrent 279,929,095        Agency  funds: Cash, cash equivalents  and investments 40,975,879           Total 709,148,391$           NOTE 3 ‐ TRADE RECEIVABLES    Trade receivables for Governmental and Business‐type Activities are net of an allowance for doubtful accounts as  follows:    Trade  Receivables Less  Allowance  for  Doubtful   Accounts Net Trade  Receivables General  Fund 1,171,130$     536,963$         634,167$         Bayshore Gateway Community Redevelopment Agency 12,720             12,720              ‐                         Immokalee Community Redevelopment Agency 236                   ‐                         236                   Nonmajor  Governmental  Funds 2,456,581       607,327           1,849,254        Total  receivables reported in Governmental  Funds 3,640,667       1,157,010        2,483,657        Total  receivables reported in Internal Service Funds 1,304,463       14,519              1,289,944            Total  Governmental  Activities  tr ade receivables 4,945,130$     1,171,529$      3,773,601$      County Water and Sewer 10,103,890$   ‐$                       10,103,890$   Solid Waste Disposal 904,806           475                   904,331           Nonmajor  Enterprise Funds 25,618,140     24,104,924      1,513,216            Total  Business ‐type Activities  trade receivables 36,626,836$   24,105,399$   12,521,437$           49 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 3 – TRADE RECEIVABLES – CONTINUED    The County has multi and single‐family home rehabilitation and homeownership loan programs funded under the  Community Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster  Recovery Initiative (DRI), Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership  Program (SHIP).  If the homeowners remain in their homes for the full term of the deferred loan, the loan is forgiven.    If the property is transferred or sold before the end of the loan period, the proceeds from the repayment including  interest, if any, are then repaid and returned to the appropriate grant program.  A lien is placed against the property  to ensure the repayment of the loan and interest, if any.  As collection is uncertain on these loans, they are not  recognized in the financial statements.       NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES    ADVANCES    Advances to and advances from other funds at September 30, 2015 were as follows:    Advance Advance To From Governmental  Activities: General  Fund 711,800$            ‐$                           Immokalee Community Redevelopment Agency ‐                            268,901               Other governmental  funds: Unincorporated Area  MSTD 528,901              ‐                             Improvement Districts ‐                            260,000               Fire Control  Districts ‐                            711,800               Government Facilities Impact Fees  Fund ‐                            3,080,280                Total  Governmental  Activities 1,240,701           4,320,981            Business‐type Activities: County Water and Sewer 1,504,132           ‐                             Solid Waste Disposal 1,576,148           ‐                                 Total  Business ‐type Activities 3,080,280           ‐                             Total  Advances 4,320,981$         4,320,981$             Advances are made to funds for the purposes of capital acquisitions and improvements.  Reimbursements will take  place over the next several years as funds are available.    DUE FROM AND DUE TO    Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and  Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the  collection services.  Excess fees are calculated after year end, and as such are interfund receivables and payables.  Other  outstanding balances are the result of time delays between the provision and payment of interfund services and to  cover temporary cash deficits.          50 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES – CONTINUED    Due from and due to other funds at September 30, 2015 were as follows:     Due From Due To Governmental Activities: General  Fund 5,218,119$     871,227$          Immokalee Community Redevelopment Agency ‐                         3,462                 Other Governmental  Funds:     Road Districts 800,000            ‐                              Unincorporated Area  MSTD 276,620           18,896                  Community Development 21                      ‐                              Water Management and Pollution Control 41,783             ‐                              Grants  and Shared Revenues 614,035           9,112,299             Improvement Districts 32,563             3,855                     Fire Control  Districts 35,162             398                        Lighting Districts 10,997             312                        Tourist Development 164,537           1,273                     State Court Administration 3,137                ‐                              Conservation Collier ‐                         8,559                     Court Services ‐                         379                        Other Sheriff Special  Revenue Funds 34,747             445,763                Other Special  Revenue Funds ‐                         3,137                     Radio Road Limited  General  Obligation Bonds 816                   ‐                              Conservation Collier Limited  Obligation Bonds 8,559                ‐                              Forest Lakes  Limited  General  Obligation Bonds 4,011                ‐                              Special  Obligation Revenue Bonds ‐                         7,600,000             County‐Wide Capital  Improvement ‐                         1,051,307             Parks  Improvements 337,528           ‐                              Correctional  Facilities  Impact Fee 1,300,000        ‐                              Water Management 2,517                30,385                  Parks  Impact Fee 2,400,000        ‐                              Road Construction 6,257,339        148,515                Government Facilities Impact Fee 2,300,000        ‐                              Law Enforcement Impact Fee 500,000           ‐                              Other Capital  Projects 1,585                ‐                                  Total  other governmental  funds 15,125,957     18,425,078      Business‐type Activities: County Water and Sewer 15,400             365,859            Solid Waste 56,984             ‐                          Other Business‐type funds:     Emergency  Medical  Services 2,743                ‐                              Airport Authority 7,472                979,436                Collier Area  Transit 8,807                45,934                      Total  other business‐type funds 19,022             1,025,370         Internal Service  Funds 255,514           ‐                                 Total  All  Funds 20,690,996$   20,690,996$      51 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 5 – CAPITAL ASSETS    A summary of capital asset activity for the year ended September 30, 2015 is as follows:    September 30, 2014 Additions Deductions Reclassifications September 30, 2015 Governmental Activities: Capital  assets not depreciated: Land  and other non‐depreciable assets 406,357,819$     4,705,802$     (2,350)$         518,771$             411,580,042$      Construction in progress 45,277,969          41,783,774     ‐                      (29,572,753)         57,488,990             Total  capital assets not depreciated 451,635,788       46,489,576     (2,350)            (29,053,982)         469,069,032        Capital  assets depreciated: Buildings 438,101,254       2,590               ‐                      7,188,233            445,292,077        Infrastructure 988,509,093       541,637           (8,500)            18,065,018          1,007,107,248     Improvements  other than buildings 277,954,464       278,015           (512,064)       3,204,687            280,925,102        Machinery and equipment 181,486,413       16,393,919     (8,201,822)    681,819                190,360,329          Total  capital assets depreciated 1,886,051,224    17,216,161     (8,722,386)    29,139,757          1,923,684,756     Less  accumulated depreciation: Buildings 150,171,115       13,593,866     ‐                      (27,662)                 163,737,319        Infrastructure 307,787,802       32,747,654     (3,622)            (34,915)                 340,496,919        Improvements  other than buildings 148,069,247       14,198,000     (165,094)       ‐                             162,102,153        Machinery and equipment 149,763,321       13,431,033     (8,082,590)    129,996                155,241,760          Total  accumulated depreciation 755,791,485       73,970,553     (8,251,306)    67,419                  821,578,151          Total  depreciable capital assets, net 1,130,259,739    (56,754,392)    (471,080)       29,072,338          1,102,106,605     Total  Governmental  Activities   capital  assets, net 1,581,895,527$  (10,264,816)$ (473,430)$     18,356$                1,571,175,637$   Business‐type Activities: Capital  assets not depreciated: Land  and other non‐depreciable assets 32,332,386$       320,019$        (1,704,343)$ 110,828$             31,058,890$        Construction in progress 71,218,216          31,709,969     (755,508)       (55,667,108)         46,505,569             Total  capital assets not depreciated 103,550,602       32,029,988     (2,459,851)    (55,556,280)         77,564,459           Capital  assets depreciated: Buildings 135,834,560       8,543               (3,375,439)    9,677,747            142,145,411        Improvements  other than buildings 1,102,621,203    4,728,727       (3,146,069)    42,745,118          1,146,948,979     Machinery and equipment 51,385,831          4,177,800       (1,262,158)    3,047,642            57,349,115             Total  capital assets depreciated 1,289,841,594    8,915,070       (7,783,666)    55,470,507          1,346,443,505     Less  accumulated depreciation: Buildings 77,884,927          4,205,552       (3,108,480)    ‐                             78,981,999           Improvements  other than buildings 367,741,972       35,446,210     (1,061,149)    714                        402,127,747        Machinery and equipment 28,248,492          5,606,262       (1,220,422)    (68,131)                 32,566,201             Total  accumulated depreciation 473,875,391       45,258,024     (5,390,051)    (67,417)                 513,675,947          Total  depreciable capital assets, net 815,966,203       (36,342,954)    (2,393,615)    55,537,924          832,767,558        Total  Business‐type Activities   capital  assets, net 919,516,805$     (4,312,966)$    (4,853,466)$ (18,356)$              910,332,017$            52 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 5 – CAPITAL ASSETS – CONTINUED    Schedule of depreciation for fiscal year 2015:    General  Government 8,761,462$           Public Safety 13,435,519           Physical  Environment 7,211,918             Transportation 33,795,287           Economic Environment 240,304                Human Services 432,166                Culture and Recreation 8,247,041                 Subtotal 72,123,697           Internal Service Funds 1,846,856                 Total  Governmental  Activities 73,970,553$        Water and Sewer 40,131,522$        Solid Waste 1,249,102             EMS 973,635                Airport Authority 1,413,499             Mass  Transit 1,490,266                 Total  Business‐type Activities 45,258,024$           NOTE 6 – LONG‐TERM DEBT    SUMMARY OF CHANGES IN LONG‐TERM OBLIGATIONS    The following is a summary of changes in long‐term obligations for the year ended September 30, 2015:    October 1, 2014, as  Restated Additions Reductions Premium  Amortized, net September 30, 2015 Due within one year Governmental Activities: Bonds  Payable  $    353,610  $                 ‐ $    (18,735)$                      ‐ $        334,875  $      19,605  Premium on Bonds  Payable          18,278                       ‐                      ‐                (1,507)             16,771                       ‐  Notes  Payable             7,081                       ‐              (680)                        ‐                 6,401                 556  Capital  Lease Obligations                230              1,914              (625)                        ‐                 1,519                 595  Self‐Insurance Claims 6,573           52,244       (51,858)      ‐                                       6,959 5,703           Net Pension Liability 84,865         49,336       ‐                  ‐                                   134,201 ‐                    Net OPEB Obligation 2,531           2,038         (1,575)        ‐                                       2,994 ‐                    Compensated Absences          24,887              6,645           (9,742)                        ‐               21,790              8,206      Total 498,055$    112,177$    (83,215)$     (1,507)$            525,510$         34,665$       Business‐type Activities: Bonds  and Loans  Payable 207,414$    17,687$     (31,816)$    ‐$                     $        193,285 12,755$      Premium on Bonds  Payable 1,100           ‐                  (233)           (51)                                      816 ‐                    Notes  Payable 69                 ‐                  (5)                ‐                                             64 64                 Capital  Lease Obligations 1,222           130            (278)           ‐                                       1,074 283              Landfill  Closure Liability 1,926           ‐                  (20)             ‐                                       1,906 ‐                    Net Pension Liability 16,169         10,282       ‐                  ‐                                     26,451 ‐                    Compensated Absences 2,764           2,235         (2,404)        ‐                                       2,595 2,076               Total 230,664$    30,334$      (34,756)$     (51)$                  226,191$         15,178$       000's  Omitted   53 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 6 – LONG‐TERM DEBT – CONTINUED    DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE    Bonds, loans and notes payable at September 30, 2015 were composed of the following:    GOVERNMENTAL  ACTIVITIES Governmental Activities Limited General Obligation Bonds $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal ServiceTaxing Unit,due in installments of $300,000 to $540,000 through January 1,2022;interestat3.75%to 4.25%and collateralized by a limited ad valorem pledgeof up to 4 mils.3,355,000$          Total  Governmental  Activities  Limited  General  Obligation Bonds            3,355,000$         Governmental Activities Revenue  Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds, due in annual installments of $2,700,000 to $6,605,000 through June1,2023;interest at3.00% to 5.00% and collateralized by a  pledge on the combined gas  tax  proceeds.25,725,000$        $89,780,000 2014 Gas Tax Refunding Revenue Bonds, due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas  tax  proceeds.88,715,000          $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to $3,860,000 through July 1, 2034;interest at3.00% to 4.50% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax  and charges and services generated by governmental  activities.  51,270,000          $24,620,000 2010B Special Obligation Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax  and charges and services generated by governmental  activities.  16,370,000          $92,295,000 2011 Special Obligation Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax  and charges and services generated by governmental  activities.  75,635,000          $73,805,000 2013 Special Obligation Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax  and charges and services generated by governmental  activities.  73,805,000          Total  Governmental  Activities  Revenue Bonds 331,520,000$     Governmental Activities Notes Payable $7,557,900 Bayshore Gateway Community Redevelopment Agency Taxable Note, due in monthly installments of $41,988  through  June 1, 2018; variable interest rate of 30‐Day LIBOR  plus 3.75% and collateralized by a pledgeon all legally availablenon‐ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency.6,009,577$          54 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 6 – LONG‐TERM DEBT – CONTINUED    DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE – CONTINUED    $550,000 2012 Limited General Obligation Note, Radio Road East Municipal Service Taxing Unit, due in installments of $3,847 to $5,408 through June 1, 2022; interest at 3.44% and collateralized by a  limited ad valorem pledge of up to .5  mils. 391,515                Total  Governmental  Activities  Notes  Payable 6,401,092$         Total  Governmental  Activities  Obligations 341,276,092$     Unamortized  Bond Premium 16,771,274$        Governmental  Activities  Obligations, Net 358,047,366$     Less  Current Portion of Governmental  Activities  Obligations (20,161,289)$      Long ‐Term Portion of Governmental  Activities  Obligations, Net 337,886,077$     BUSINESS‐TYPE ACTIVITIES Business‐type Activities Revenue  Bonds $110,165,000 2006 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,310,000 to $8,695,000, commencing July 1, 2017 through July 1, 2036; interestat4.00%to5.00% andcollateralized bya lienon anda pledgeof netrevenues ofthe Collier County Water and Sewer District.  60,160,000$        $11,727,489 2009 Collier County Water and Sewer Revenue Bonds due in annual installments of $1,569,324 to $1,817,005, commencing July 1, 2010 through July 1, 2016; interest at 2.97% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer  District.  1,817,005            $17,769,080 2013 Collier County Water and Sewer Refunding RevenueBonds due in annual installments of $1,369,430 to $4,312,275, commencing July 1, 2014 through July 1, 2021; interest at 1.47% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer  District.  9,209,813            $17,687,000 2015 Collier County Water and Sewer Refunding RevenueBonds due in annual installments of $2,533,000 to $4,561,000, commencing July 1, 2017 through July 1, 2022; interest at 1.75% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer  District.  17,687,000          Total  Business‐type Activities  Revenue Bonds 88,873,818$        Business‐type Activities Loans and Notes Payable $166,580 County Water and Sewer District agreement with  private developer payable through   use of sewer impact fee credits.  Non ‐interest bearing agreement. 64,255$                $13,730,740 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.65%payable in 40 semiannual payments commencing January 15,1999 and collateralized by a  subordinated pledge on the net revenues  of the Collier County Water and Sewer  District. 2,538,021            $21,951,544 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 3.05% payable in 40 semiannual payments commencing November 15, 2001 and collateralized by a subordinated pledgeonthenetrevenues oftheCollierCounty Waterand Sewer District.7,964,628            $5,055,347 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05%payablein 40 semiannual payments commencing October 15,2004 and collateralized by a  subordinated pledge on the net revenues  of the Collier County Water and Sewer  District. 2,709,893            55 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 6 – LONG‐TERM DEBT – CONTINUED    DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE – CONTINUED    $6,560,956 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05%payablein 40 semiannual payments commencing January 15,2005 and collateralized by a  subordinated pledge on the net revenues  of the Collier County Water and Sewer  District. 3,442,863$          $28,630,467 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.95%payablein 40 semiannual payments commencing June15, 2006 and collateralized by a  subordinated pledge on the net revenues  of the Collier County Water and Sewer District.17,447,845          $10,280,778 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.90% payable in 40 semiannual payments commencing September 15, 2006 and collateralized by a  subordinated pledge on the net revenues of the Collier County Water and 6,011,725            $5,445,223 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.92% payable in 40 semiannual payments commencing December 15, 2005 and collateralized by a  subordinated pledge on the net revenues of the Collier County Water and 3,129,243            $4,210,716 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.74% payable in 40 semiannual payments commencing November 15, 2007 and collateralized by a  subordinated pledge on the net revenues of the Collier County Water and 2,709,725            $5,625,546 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.75% and 2.64% payable in 40 semiannual payments commencing April 15, 2008 and collateralized by a  subordinated pledge on the net revenues of the Collier County Water and 3,761,015            $21,126,718 County Water and Sewer DistrictState RevolvingFund Loan,interest payableat 2.25%, 2.64%, 2.71% and 2.79% payablein 40 semiannual payments commencing August15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer  District.15,700,512          $42,505,652 County Water and Sewer DistrictState RevolvingFund 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.36,833,440          $2,864,137 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.79% payable in 40 semiannual payments commencing December 15, 2009 and collateralized by a  subordinated pledge on the net revenues of the Collier County Water and 2,161,985            Total  Business‐type Activities  Loans  and Notes  Payable 104,475,150$     Total  Business‐ty pe Activities  Obligations 193,348,968$     Unamortized  Bond Premium 816,351$            Business‐type Activities  Obligations, Net 194,165,319$     Less  Current Portion of Business‐type Activities  Obligations Payable from Unrestricted Assets (6,783,792)$         Less  Current Portion of Business‐type Activities  Obligations Payable from Restricted Assets (6,035,339)$         Long ‐Term Portion of Business‐type Activities  Obligations, Net 181,346,188$      56 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 6 – LONG‐TERM DEBT – CONTINUED    SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY    The total annual debt service requirements to maturity of long‐term debt, excluding compensated absences, capitalized  leases, premiums, discounts and arbitrage rebate liability, are as follows:      Fiscal Year Totals Principal Interest Principal Interest Principal Interest 2016 425,000$      130,775$     19,180,000$     12,261,577$     556,289$       240,902$      32,794,543$      2017 440,000        113,475       19,900,000        11,529,730        558,121          219,168        32,760,494         2018 460,000        95,475          20,655,000        10,766,957        5,058,027      152,123        37,187,582         2019 475,000        76,181          21,440,000        9,961,048          58,124            6,955             32,017,308         2020 495,000        55,569          22,270,000        9,145,667          60,156            4,924             32,031,316         2021‐25 1,060,000     45,475          116,640,000     33,048,831        110,375          3,513             150,908,194      2026‐30 ‐                      ‐                     51,590,000        17,605,916        ‐                       ‐                      69,195,916         2031‐35 ‐                      ‐                     53,130,000        6,908,263          ‐                       ‐                      60,038,263         2036‐40 ‐                      ‐                     6,715,000          134,300             ‐                       ‐                      6,849,300           Totals 3,355,000$   516,950$     331,520,000$   111,362,289$   6,401,092$    627,585$      453,782,916$    Governmental  Activities Limited  General Obligation Bonds Revenue Bonds Notes  Payable     Fiscal Year Totals Principal Interest Principal Interest 2016 3,986,420$        3,120,912$     8,832,710$        2,744,775$     18,684,817$      2017 3,902,430          2,990,729       9,010,716          2,502,514       18,406,389         2018 3,968,061          2,925,465       9,259,743          2,253,489       18,406,758         2019 4,031,480          2,859,179       8,623,257          2,003,493       17,517,409         2020 4,099,464          2,791,703       8,862,105          1,764,650       17,517,922         2021‐25 8,725,963          13,211,228     41,164,315        5,329,275       68,430,781         2026‐30 13,195,000        12,835,650     18,722,304        899,518           45,652,472         2031‐35 38,270,000        7,144,977        ‐                            ‐                        45,414,977         2036‐40 8,695,000          386,928            ‐                            ‐                        9,081,928           Totals 88,873,818$     48,266,771$   104,475,150$   17,497,714$   259,113,453$    Business‐type Activities Revenue Bonds Notes  Payable Loans  and         CURRENT YEAR DEBT REFUNDINGS    On September 30, 2015 the Collier County Water and Sewer District issued the Series 2015 Water and Sewer  Refunding Revenue Bond in the par amount of $17,687,000.  These bonds were issued for the purpose of advance  refunding a portion of the County’s outstanding Series 2006 Water and Sewer Revenue Bonds.  The final maturity of  the bonds is July 1, 2022, with an interest rate of 1.75%.  The refunding achieved a net present value savings of 7.12%  on the refunded bonds.  The advance refunding achieved an aggregate debt service savings of $1,382,125 and an  economic gain of $1,470,675.  The refunded Series 2006 bonds have a redemption date of July 1, 2016.       57 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 6 – LONG‐TERM DEBT – CONTINUED    RESTRICTIVE COVENANTS    According to County resolutions authorizing the issuance of the Series 2010, 2010B, 2011 and 2013 Special  Obligation Refunding Revenue Bonds, the County has covenanted, subject to certain restrictions and limitations, to  appropriate in its annual budget, by amendment if necessary, from non‐ad valorem revenues amounts sufficient to  pay principal and interest on the combined Special Obligation Bonds.    According to County resolutions authorizing the issuance of the Series 2012 and 2014 Gas Tax Revenue Refunding  Bonds, the issues are payable from and secured by liens on gas tax revenues.      Bayshore Gateway Community Redevelopment Agency (Agency) tax increment revenues are pledged for the  repayment of the Agency’s Series 2013 taxable note.  The Agency has additionally covenanted to budget and  appropriate from all legally available non‐ad valorem revenues of the Agency to pay the Series 2013 note to the  extent the tax increment revenues are insufficient.   The Series 2013 note does not constitute an indebtedness of  the County and is payable solely from the security provided by the Agency.  The Agency is required to have a debt  service reserve balance of $800,000 as of the end of fiscal year 2015.  The Agency was in compliance with these  covenants for the year ended September 30, 2015.    The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain  operating expenses, to repay $88,873,818 in Series 2006, 2009, 2013 and 2015 revenue bonds.  Proceeds from the  bonds were used for rehabilitation or expansion of the District’s water and sewer systems or for the refinancing of  bonds issued for rehabilitation or expansion of the District’s water and sewer systems.  Principal and interest are  payable through July 1, 2036, solely from the net revenues and certain other fees and charges derived from  operation of the County's Water and Sewer District (District).  The pledge of net revenues by the District from the  operation of the system does not constitute a lien upon the system or any other property of the County.  The  resolutions authorizing the revenue bonds include an obligation for the District to fix, establish and maintain such  rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions,  which  together with system development fees (impact fees) and special assessment proceeds received shall be at least  125% of the annual debt service requirements for the bonds; provided, however, that net revenues in each fiscal  year shall be adequate to pay at least 100% of the annual debt service on the bonds.  Fiscal year 2015 pledged  revenues, net of operating expenses, were $43,242,167 and $55,893,517 when system development fees and special  assessments were included.  Principal and interest paid on the bonds during fiscal year 2015 totaled $9,712,547,  providing coverage of 445% and 575%, respectively.  In addition, bond covenants require a renewal and replacement  amount equal to $300,000 in the District funds. The District was in compliance with these covenants for the year  ended September 30, 2015.    The District has several State Revolving Fund loans outstanding with the Florida Department of Environmental  Protection.  These loans are collateralized by a lien on pledged revenues consisting of net revenues from the  operations of the County Water and Sewer System and system development fees.  The lien is subordinate in all  respects to the liens placed upon pledged revenues established by bonded indebtedness.  The District must maintain  rates and charges for services which together with system development fees are sufficient to pay 115% to 125%,  depending upon the individual loan agreement, of the annual debt service requirements on the loans, as well as  satisfy the coverage requirements of all senior debt obligations.  The District’s State Revolving Fund loans were in  compliance with these covenants for the year ended September 30, 2015.    LEGAL DEBT MARGIN    The Constitution of the State of Florida and the Florida Statutes set no legal debt limit.       58 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 6 – LONG‐TERM DEBT – CONTINUED     INTEREST CAPITALIZED    Interest costs on the long‐term debt of business‐type activities, including capitalized leases, incurred and capitalized  during the year ended September 30, 2015 were as follows:       Total Interest  Cost Incurred   Interest Cost  Capitalized   Net Interest  Expense  Business‐type Activities  $       6,350,919  $       1,313,387  $       5,037,532      Interest expense is shown as a direct expense of the Business‐type Activities.    LEASE OBLIGATIONS    Capitalized leases payable at September 30, 2015 amounted to $2,593,462.  These obligations, which are  collateralized by equipment and vehicles, have total annual installments ranging from $59,406 to $964,620 including  interest ranging from 1.83% to 4.82% and mature through 2022.  As of year‐end, equipment currently leased under  capital leases in the governmental activities had a historical cost of $2,930,057 and accumulated depreciation of  $855,945.  Equipment currently leased under capital leases in the business‐type activities had a historical cost of  $1,678,920 and accumulated depreciation of $513,003.    Future minimum capital lease obligations as of September 30, 2015 were as follows:     Governmental Business ‐type Activities Activities Total 663,211$       301,409$          964,620$      663,211         301,409            964,620        92,887            258,705            351,592        92,887            257,981            350,868        87,622             ‐                          87,622          59,406             ‐                          59,406          Total  minimum lease payments 1,659,224      1,119,504         2,778,728     Less  amount representing interest (139,729)        (45,536)             (185,265)       Present value of minimum lease payments 1,519,495$    1,073,968$      2,593,463$  2021‐22 2016 2017 2018 2019 2020     The County also leases office space, office equipment and storage space under operating leases.  These leases expire  or are cancellable within the next fiscal year.  In the normal course of operations, these leases will be renewed or  replaced by other leases.  Total rental expenditures for all operating leases within the governmental activities for  the year ended September 30, 2015 were $1,317,915.  Total rental expenditures for all operating leases within  business‐type activities governmental activities for the year ended September 30, 2015 were $208,550.       59 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 7 – CONDUIT DEBT OBLIGATIONS    COMPONENT UNIT CONDUIT DEBT    The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational  Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital  financing to independent third parties.  Industrial development revenue bonds have been issued to provide financial  assistance to public entities for the acquisition and construction of industrial and commercial facilities.  Housing  revenue bonds have been issued for the purpose of financing the development of multi‐family residential rental  communities.  The health facility revenue bonds were issued to provide financing for the construction of health park  facilities. The educational facility revenue bonds were used to provide financing for the construction of educational  facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee.  The  primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed.   Neither the issuer, nor the County, is obligated in any manner for repayment of the bonds and as such they are not  reported as liabilities in the accompanying financial statements.    As of September 30, 2015, the outstanding principal amount payable on all component unit conduit debt was  $438,847,215 and is made up of the following:    Industrial development revenue bonds 215,190,000$        Housing finance revenue bonds 27,587,215             Health facilities revenue bonds 105,330,000          Educational  facilities  revenue bonds 90,740,000             Total 438,847,215$             NOTE 8 – DEFEASED DEBT     The County has defeased certain outstanding bonds by placing the proceeds of new bonds in irrevocable trusts to  provide for all future debt service payments on the defeased debt.  Accordingly, the trust accounts and the defeased  bonds are not included in the County's financial statements.      At September 30, 2015 the following issues were considered defeased:    Original Debt Defeased Bonds Defeased Outstanding 1986 Capital  Improvement Program Revenue Bonds, Sub‐Series  5 Mode A 12,245,000$     1,025,000$             Total  Governmental  Activities  Defeased Debt 12,245,000$     1,025,000$             Original Debt Defeased Bonds Defeased Outstanding 2006 County Water and Sewer  Revenue Bonds 50,005,000$     50,005,000$           Total  Business‐type Activities  Defeased Debt 50,005,000$     50,005,000$           Governmental  Activities Business‐type Activities        60 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 9 – DEFINED BENEFIT PENSION PLANS    BACKGROUND    The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit  pension plan for participating public employees.  The FRS was amended in 1998 to add the Deferred Retirement  Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan  alternative to the defined benefit plan for FRS members effective July 1, 2002.  This integrated defined contribution  pension plan is the FRS Investment Plan.  Chapter 112, Florida Statutes, established the Retiree Health Insurance  Subsidy (HIS) Program, a cost‐sharing multiple‐employer defined benefit pension plan, to assist retired members of  any State‐administered retirement system in paying the costs of health insurance.    Essentially all regular employees of the County are eligible to enroll as members of the State‐administered FRS.   Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida  Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility,  contributions and benefits are defined and described in detail.  Such provisions may be amended at any time by  further action from the Florida Legislature.  The FRS is a single retirement system administered by the Florida  Department of Management Services, Division of Retirement, and consists of the two cost‐sharing,  multiple‐employer defined benefit plans and other nonintegrated programs.  A comprehensive annual financial  report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and  other relevant information, is available from the Florida Department of Management Services’ web site  (www.dms.myflorida.com).    The County’s pension expense totaled $12,733,272 for both the FRS Pension Plan and HIS Plan for the year ended  September 30, 2015.    FLORIDA RETIREMENT SYSTEM PENSION PLAN     PLAN DESCRIPTION    The Florida Retirement System Pension Plan (FRS Plan) is a cost‐sharing multiple‐employer defined benefit pension  plan, with a Deferred Retirement Option Program (DROP) for eligible employees.  The general classes of membership  are as follows:    Regular Class – Members of the FRS who do not qualify for membership in the other classes.    Elected County Officers Class – Members who hold specified elective offices in local government.    Senior Management Service Class (SMSC) – Members in senior management level positions.    Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to  qualify for this class.    Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled  in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service.  All vested members, enrolled prior to  July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for  members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25  years of service.  All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal  retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special  risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service.  Employees  enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service.  The FRS  Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires  before his or her normal retirement date.  The FRS Plan provides retirement, disability, death benefits, and annual  cost‐of‐living adjustments to eligible participants.   61 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED    DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement  under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS  participating employer.  An employee may participate in DROP for a period not to exceed 60 months after electing  to participate, except that certain instructional personnel may participate for up to 96 months.  During the period of  DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest.  The net pension  liability does not include amounts for DROP participants, as these members are considered retired and are not  accruing additional pension benefits.    BENEFITS PROVIDED     Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation,  and service credit.  Credit for each year of service is expressed as a percentage of the average final compensation.   For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest  fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the  average of the 8 highest fiscal years’ earnings.  The total percentage value of the benefit received is determined by  calculating the total value of all service, which is based on the retirement class to which the member belonged when  the service credit was earned. Members are eligible for in‐line‐of‐duty or regular disability and survivors’ benefits.   The following chart shows the percentage value for each year of service credit earned:    Class, Initial Enrollment and Retirement Age/Years of Service:  % Value  Regular Class members initially enrolled before July 1, 2011     Retirement up to age 62 or up to 30 years of service  1.60   Retirement up to age 63 or with 31 years of service  1.63   Retirement up to age 64 or with 32 years of service  1.65   Retirement up to age 65 or with 33 or more years of service  1.68  Regular Class members initially enrolled after July 1, 2011     Retirement up to age 65 or up to 33 years of service  1.60   Retirement up to age 66 or with 34 years of service  1.63   Retirement up to age 67 or with 35 years of service  1.65   Retirement up to age 68 or with 36 or more years of service  1.68  Elected County Officers  3.00  Senior Management Service Class  2.00  Special Risk Regular     Service from December 1, 1970 through September 30, 1974  2.00   Service on and after October 1, 1974  3.00    As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011,  and all service credit was accrued before July 1, 2011, the annual cost‐of‐living adjustment is 3 percent per year.  If  the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an  individually calculated cost‐of‐living adjustment.  The annual cost‐of‐living adjustment is a proportion of 3 percent  determined by dividing the sum of the pre‐July 2011 service credit by the total service credit at retirement multiplied  by 3 percent.  FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost‐of‐living adjustment  after retirement.    CONTRIBUTIONS    The Florida Legislature establishes contribution rates for participating employers and employees.  Effective July 1,  2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax  basis. The employer contribution rates by job class for the periods from October 1, 2014 through June 30, 2015 and  from July 1, 2015 through September 30, 2015, respectively, were as follows: Regular employees‐7.37% and 7.26%;  County Elected Officials‐43.24% and 42.27%; Senior Management Services‐21.14% and 21.43%; and DROP  participants‐12.28% and 18.75%. The County’s contributions to the FRS Plan were $17,830,147 for the year ended  September 30, 2015.  62 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED    PENSION COSTS    At September 30, 2015, the County reported a liability of $95,078,054 for its proportionate share of the FRS Plan’s  net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used  to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. The County’s  proportion of the net pension liability was based on the County’s contributions received by FRS during the  measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total  employer contributions received from all of FRS’s participating employers. At June 30, 2015, the County’s proportion  was 0.736107%, which was an increase of 0.032452% from its proportion measured as of June 30, 2014.    For the year ended September 30, 2015, the County recognized pension expense of $7,523,684 for its proportionate  share of FRS’s pension expense. In addition, the County reported its proportionate share of FRS’s deferred outflows  of resources and deferred inflows of resources from the following sources:    Description Deferred Outflows   of Resources Deferred Inflows  of Resources Differences  Between Expected and Actual  Economic  Experience 10,037,428$         2,254,962$            Changes  in Actuarial  Assumptions 6,310,649            ‐                               Net Difference Between  Projected and Actual  Earnings  on Pension Plan  Investments ‐                               22,703,048             Changes  in Proportion and Differences  Between County Contributions  and  Proportionate Share of Contributions 5,585,758              1,659,713               County Contributions  Subsequent to th e Measurement Date 4,207,785             ‐                               Total 26,141,620$          26,617,723$               Deferred outflows of resources related to pensions of $4,207,785, resulting from County contributions to the FRS  Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year  ended September 30, 2016. Other amounts reported as deferred outflows and inflows of resources related to  pensions will be recognized as an increase (decrease) in pension expense as follows:    Year  Ended  September 30 Amount 2016 (6,795,255)$      2017 (6,795,255)         2018 (6,795,255)         2019 11,935,469        2020 2,957,172          Thereafter 809,236                ACTUARIAL ASSUMPTIONS    The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial  assumptions, applied to all periods included in the measurement:    Inflation 2.60% per year Salary Increases 3.25% Average, Including Inflation Investment Rate of Return 7.65%, Net of Pension Plan Investment Expense, Including Inflation    63 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED    Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used  in the July 1, 2015, valuation were based on the results of an actuarial experience study for the period July 1, 2008,  through June 30, 2014.      The long‐term expected rate of return on pension plan investments was not based on historical returns, but instead  is based on a forward‐looking capital market economic model.  The allocation policy’s description of each asset class  was used to map the target allocation to the asset classes shown below.  Each asset class assumption is based on a  consistent set of underlying assumptions, and includes an adjustment for the inflation assumption.  The target  allocation, as outlined in the FRS Plan’s investment policy, and best estimates of arithmetic and geometric real rates  of return for each major asset class are summarized in the following table:    Asset Class                 Target  Allocation     Annual   Arithmetic  Return Compound  Annual   (Geometric)  Return Standard  Deviation Cash 1.0% 3.2% 3.1% 1.7% Fixed income 18.0% 4.8% 4.7% 4.7% Global  equity 53.0%8.5%7.2%17.7% Real  estate (property)10.0% 6.8% 6.2% 12.0% Private Equity 6.0% 11.9% 8.2% 30.0% Strategic investments 12.0%6.7%6.1%11.4% Totals 100.0% Assumed Inflation ‐ Mean 2.6%1.9%      DISCOUNT RATE    The discount rate used to measure the total pension liability was 7.65% for the FRS Plan. The projection of cash flows  used to determine the discount rate assumed that employee and employer contributions will be made at the rate  specified in statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be  available to make all projected future benefit payments of current active and inactive employees. Therefore, the  long‐term expected rate of return on pension plan investments was applied to all periods of projected benefit  payments to determine the total pension liability.     PENSION LIABILITY SENSITIVITY    The following presents the County’s proportionate share of the net pension liability for the FRS Plan, calculated using  the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net  pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage  point higher than the current discount rate:    Description 1% Decrease in  Discount Rate Current Discount  Rate 1% Increase in  Discount Rate FRS Plan Discount Rate 6.65% 7.65% 8.65% County's  Proportionate Share of the FRS Plan Net  Pension Liability 246,368,741$  95,078,054$       (30,820,648)$          64 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED     PENSION PLAN FIDUCIARY NET POSITION    Detailed information about the FRS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan  and Other State‐Administered Systems Comprehensive Annual Financial Report. That report may be obtained  through the Florida Department of Management Services website at http://www.dms.myflorida.com.    RETIREE HEALTH INSURANCE SUBSIDY PROGRAM    PLAN DESCRIPTION    The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost‐sharing multiple‐employer defined benefit pension  plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any  time.  The benefit is a monthly payment to assist retirees of State‐administered retirement systems in paying their  health insurance costs and is administered by the Florida Department of Management Services, Division of  Retirement.    BENEFITS PROVIDED       For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for  each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a  maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes.  To be eligible to receive  a HIS Plan benefit, a retiree under a State‐administered retirement system must provide proof of health insurance  coverage, which may include Medicare.    CONTRIBUTIONS    The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature.   Employer contributions are a percentage of gross compensation for all active FRS members.  The FRS contribution  rate rates include a 1.20% and 1.26% HIS Plan subsidy for the periods October 1, 2014 through June 30, 2015 and  from July 1, 2015 through September 30, 2015, respectively, pursuant to Section 112.363, Florida Statues.  The  County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years.  HIS  Plan contributions are deposited in a separate trust fund from which payments are authorized.  HIS Plan benefits are  not guaranteed and are subject to annual legislative appropriation.  In the event the legislative appropriation or  available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The  County’s contributions to the HIS Plan were $2,614,704 for the year ended September 30, 2015.    PENSION COSTS     At September 30, 2015, the County reported a liability of $65,574,171 for its proportionate share of the HIS Plan’s  net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used  to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. The County’s  proportion of the net pension liability was based on the County’s contributions received during the measurement  period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer  contributions received from all participating employers. At June 30, 2015, the County’s proportion was 0.642983%,  which was an increase of 0.021597% from its proportion measured as of June 30, 2014.    For the year ended September 30, 2015, the County recognized pension expense of $5,209,587 for its proportionate  share of HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows  of resources and deferred inflows of resources from the following sources:     65 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED     Description Deferred Outflows  of Resources Deferred Inflows  of Resources Differences  Between Expected  and Actual  Economic Experience ‐$                             ‐$                             Changes  in Actuarial  Assumptions 5,158,975            ‐                               Net Difference Between Projected and Actual  Earnings  on HIS Program  Investments 35,497                    ‐                                Changes  in Proportion and Differences  Between  County Contributions  and  Proportionate Share of Contributions 2,054,403              97,589                     County Contributions  Subsequent to the Measurement Date 742,848                 ‐                               Total 7,991,723$            97,589$                      Deferred outflows of resources related to pensions of $742,848, resulting from County contributions to the FRS Plan  subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended  September 30, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will  be recognized as an increase in pension expense as follows:    Year  Ended  September 30 Amount 2016 1,222,743$     2017 1,222,743        2018 1,222,743        2019 1,215,528        2020 1,212,065        Thereafter 1,055,464           ACTUARIAL ASSUMPTIONS     The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial  assumptions, applied to all periods included in the measurement:    Inflation 2.60% per year Salary Increases 3.25% Average, Including Inflation  Municipal Bond Rate 3.80%   Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used  in the July 1, 2015, valuation were based on the results of an actuarial experience study for the period July 1, 2008,  through June 30, 2014.      DISCOUNT RATE    The discount rate used to measure the total pension liability was 3.80% for the HIS Plan. In general, the discount  rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long‐term  expected rate of return for benefit payments prior to the projected depletion date.  Because the HIS benefit is  essentially funded on a pay‐as‐you‐go basis, the depletion date is considered to be immediate, and the single  equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor.  The Bond Buyer  General Obligation 20‐Bond Municipal Bond Index was adopted as the applicable municipal bond index.     Description 1% Decrease in  Discount Rate Current Discount  Rate 1% Increase in  Discount Rate HIS Plan Discount Rate 2.80% 3.80% 4.80% Authority's  Proportionate Share of the HIS Plan Net  Pension Liability 74,718,716$   65,574,172$       57,948,994$     66 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 9 – DEFINED BENEFIT PENSION PLANS – CONTINUED     PENSION PLAN FIDUCIARY NET POSITION    Detailed information about the HIS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan  and Other State‐Administered Systems Comprehensive Annual Financial Report. That report may be obtained  through the Florida Department of Management Services website at http://www.dms.myflorida.com.        NOTE 10 – DEFINED CONTRIBUTION PLAN     The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS  Investment Plan (Investment Plan).  The Investment Plan is reported in the SBA’s annual financial statements and in  the State of Florida Comprehensive Annual Financial Report.  As provided in Section 121.4501, Florida Statutes,  eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan.  County  employees participating in DROP are not eligible to participate in the Investment Plan.  Employer and employee  contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate  benefit depends in part on the performance of investment funds.  Benefit terms, including contribution  requirements, for the Investment Plan are established and may be amended by the Florida Legislature.  The  Investment Plan is funded with the same employer and employee contribution rates that are based on salary and  membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan.  Contributions are  directed to individual member accounts, and the individual members allocate contributions and account balances  among various approved investment choices.  Costs of administering the plan, including the FRS Financial Guidance  Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan  members.  The County’s Investment Plan pension expense totaled $4,408,500 for the year ended September 30,  2015.        For all membership classes, employees are immediately vested in their own contributions and are vested after 1  year of service for employer contributions and investment earnings.  If an accumulated benefit obligation for service  credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have  the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred  funds) to be vested for these funds and the earnings on the funds.  Non‐vested employer contributions are placed  in a suspense account for up to 5 years.  If the employee returns to FRS‐covered employment within the 5‐year  period, the employee will regain control over their account.  If the employee does not return within the 5‐year  period, the employee will forfeit the accumulated account balance.  For the fiscal year ended June 30, 2015, the  information for the amount of forfeitures was unavailable from the SBA; however, management believes that these  amounts, if any, would be immaterial to the County.    After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan,  structure a periodic payment under the Investment Plan, receive a lump‐sum distribution, leave the funds invested  for future distribution, or any combination of these options.  Disability coverage is provided; the member may either  transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed  lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account  balance for retirement income.       67 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 11 – TRANSFERS    Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be  collected in to the fund that statute or budget requires they be expended from (2) move receipts restricted to debt  service to the debt service fund as payments become due, (3) use unrestricted revenues collected in the General  Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary  authorizations or (4) permanent transfer of advances that are not expected to be repaid in the near future.    Transfers for the year ended September 30, 2015 were as follows:    Transfers from Fund Transfers to Fund Amount Governmental Activities: General  Fund Nonmajor  Governmental  Funds 76,753,876$      Solid Waste Disposal 41,510                Nonmajor  Business‐type 18,009,871        Bayshore Gateway Community        Redevelopment Agency Nonmajor  Governmental  Funds 905,700              Immokalee Community        Redevelopment Agency Nonmajor  Governmental  Funds 192,708              Nonmajor  Governmental  Funds General  Fund 3,546,453          Bayshore Gateway Community        Redevelopment Agency 136,800              Immokalee Community        Redevelopment Agency 76,000                Nonmajor  Governmental  Funds 106,894,939      County Water and Sewer 404,512              Nonmajor  Business‐type 1,797,537          Business‐type Activities: County Water and Sewer General  Fund 5,203,400          Nonmajor  Governmental  Funds 218,500              Solid Waste Disposal 45,300                Solid Waste Disposal General  Fund 609,393              County Water and Sewer 114,268              Nonmajor  Business‐type General  Fund 8,641                  Nonmajor  Governmental  Funds 3,000                  Internal Service Funds General  Fund 1,276,600          Nonmajor  Governmental  Funds 200,000              Total Operating Transfers 216,439,008$          68 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 12 – NET POSITION/FUND BALANCE CLASSIFICATION    Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus  deferred inflows of resources and is categorized as follows:    Net investment in capital assets:  Total capital assets, net of debt issued in the acquisition of these  assets and net of depreciation is reported separately in the net position section.      Restricted for growth related capital expansion:  Impact fees are restricted for growth related  capital expansion.     Restricted for transportation capital projects: Gas taxes and other revenues restricted for  transportation capital improvements.    Restricted for tourist development:  Tourist development tax proceeds are restricted for tourist  related activities.    Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of  ad valorem revenues restricted for the maintenance and management of environmentally  sensitive land.    Restricted for community redevelopment:  Tax increment revenues generated in the  redevelopment areas are restricted for redevelopment purposes.    Restricted for grants: State and federal government grant monies restricted for grant related  purposes.    Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and  have been funded by operating transfers from the appropriate funds.  The use of monies in the  sinking fund is restricted to the payment of principal and interest on long‐term debt.    Restricted for nonexpendable purposes – other: Balances are restricted in conjunction with the  maintenance and management of certain conservation lands for mitigation purposes.    Restricted for special revenues – other:  Balances are restricted for specific uses associated with  the revenue collected.    Restricted for renewal and replacement:  Balance is restricted in conjunction with the issuance of  County Water and Sewer District Bonds.  The use of monies in the renewal and replacement fund  is restricted to funding the cost of additions, replacement or major repair of water and wastewater  capital assets.    Unrestricted: Balances are not restricted for specific purposes.    Governmental funds report fund balances as either spendable or non‐spendable.  Spendable fund balances are  further classified as restricted, committed, assigned or unassigned depending upon the extent to which there are  external or internal constraints on the spending of these fund balances.    Non‐spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required  to be maintained intact.  Items that are not spendable also include inventories, prepaid amounts and long term  portions of advances, loans and notes receivable.      69 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 12 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED    Spendable fund balance:      Restricted fund balance – Amounts that can be spent only for specific purposes through  restrictions placed upon them by external resource providers such as creditors, grantors or  contributors; or imposed by law through constitutional provisions or enabling legislation.      Committed fund balance – Amounts that can be spent only for specific purposes determined by  the County’s highest decision making authority, the Board of County Commissioners, via  ordinance.  Commitments may be modified or removed by the Board of County Commissioners  only by amending the ordinance that created the original commitment.    Assigned fund balance – Amounts that are intended to be spent for specific purposes as  determined by the Board of County Commissioners, but that are neither restricted nor committed  to the specific purpose.    Unassigned fund balance – Unassigned fund balance is the residual classification for the County’s  general fund.  Amounts in this classification are spendable but have not been deemed restricted,  committed or assigned.  Unassigned fund balance may also include negative balances for any  governmental fund whose expenditures have exceeded the amounts restricted, committed or  assigned for those specific purposes.    When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless  prohibited by law, grant agreements or other contractural arrangement.  Further, when committed fund balance is  available the County will use it first, followed by assigned fund balance and then unassigned fund balance for  purposes in which any of the unrestricted fund balance classifications could be used.       70 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 12 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED    A detailed schedule of fund balances at September 30, 2015 is as follows:    Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds Nonspendable:      Endowments ‐$                     ‐$                           ‐$                           1,582,800$        1,582,800$             Advances 711,800         ‐                              ‐                              528,901              1,240,701                Notes 1,623,781      ‐                              ‐                              ‐                            1,623,781                Inventory 1,144,635      ‐                              ‐                              922,450              2,067,085                Prepaid costs 66,169            ‐                              ‐                              77,600                143,769              Total  nonspendable fund balance 3,546,385      ‐                              ‐                              3,111,751           6,658,136           Restricted for:      Community redevelopment ‐                       12,448,739          ‐                              ‐                            12,448,739             Federal  and state grants 344,611         ‐                              ‐                              6,492,651           6,837,262                Bond covenants  or debt service ‐                       ‐                              ‐                              9,751,048           9,751,048                Transportation growth related capital ‐                       ‐                              ‐                              53,212,385        53,212,385             Parks  growth related capital  expansion ‐                       ‐                              ‐                              17,823,101        17,823,101             Transportation capital projects ‐                       ‐                              ‐                              31,146,406        31,146,406             Community  development ‐                       ‐                              ‐                              33,797,316        33,797,316             Transportation operations ‐                       ‐                              ‐                              2,701,194           2,701,194                Tourist development ‐                       ‐                              ‐                              59,643,088        59,643,088             Conservation Collier ‐                       ‐                              ‐                              33,795,298        33,795,298             Emergency 911 ‐                       ‐                              ‐                              5,157,790           5,157,790                Law Enforcement ‐                       ‐                              ‐                              9,422,582           9,422,582                Fire services growth related capital ‐                       ‐                              ‐                              65,079                65,079                     Government facilities growth capital ‐                       ‐                              ‐                              2,430,165           2,430,165                Libraries  growth related capital ‐                       ‐                              ‐                              1,043,343           1,043,343                Court functions ‐                       ‐                              ‐                              7,833,160           7,833,160                Public Records  Modernization ‐                       ‐                              ‐                              4,909,801           4,909,801                Other purposes ‐                       ‐                              ‐                              1,608,014           1,608,014             Total  restricted fund balance 344,611         12,448,739          ‐                              280,832,421      293,625,771      Committed  for:      Special  districts ‐                       ‐                              ‐                              21,856,442        21,856,442             Natural  resource management ‐                       ‐                              ‐                              2,126,587           2,126,587                Utility regulation ‐                       ‐                              ‐                              1,316,464           1,316,464                Other purposes ‐                       ‐                              ‐                              363,166              363,166                Total  committed fund balance ‐                       ‐                              ‐                              25,662,659        25,662,659        Assigned  for:      Parks  and recreation ‐                       ‐                              ‐                              4,443,926           4,443,926                General  building & improvements ‐                       ‐                              ‐                              9,581,141           9,581,141                Water management ‐                       ‐                              ‐                              13,332,196        13,332,196             Libraries ‐                       ‐                              ‐                              646,886              646,886                   Other purposes 1,298,463      ‐                              ‐                              2,796,170           4,094,633             Total  assigned fund balance 1,298,463      ‐                              ‐                              30,800,319        32,098,782        Unassigned:55,002,184    ‐                              (59,425)                 (454,228)             54,488,531            Total  Fund Balances  60,191,643$ 12,448,739$        (59,425)$               339,952,922$    412,533,879$    71 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 13 – RISK MANAGEMENT    The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and  omissions; injuries to employees and natural disasters.  A self‐insurance internal service fund is maintained by the  County to administer insurance activities relating to workers' compensation, health and property and casualty, which  covers general, property, auto, public official and crime liabilities.  The County self‐insurance program covers operations  of the Board and the constitutional officers, except for the Sheriff.  Under these programs, the self‐insurance fund  provides coverage up to a maximum amount for each claim.  The County purchases commercial insurance for claims in  excess of coverage provided by the self‐insurance fund and for all other covered risks of loss.      Claim Type County’s Coverage Excess Carrier’s Coverage  Property and casualty claims $50,000 ‐$500,000 (5% Named Storm)  $50,000 ‐$75,000,000   Auto liability claims $300,000 $300,000 ‐$5,000,000   Employee health claims $325,000 $325,000 ‐Unlimited   Workers' compensation claims $500,000 $500,000 ‐Statutory    Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years.  All  divisions of the County, excluding the Sheriff, participate in this program.  Charges to operating departments are  based upon amounts believed by management to meet the required annual payouts during the fiscal year and to  pay for the estimated operating costs of the programs.  For the fiscal year ended September 30, 2015 the operating  departments were charged $36,909,612 for workers' compensation, health and property and casualty self‐insurance  programs.    The claims loss reserve for workers' compensation, health and property and casualty of $4,789,434 reported at  September 30, 2015 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus,  which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount  of that loss can be reasonably estimated.  The estimated liabilities for unpaid losses related to workers'  compensation and property and casualty were discounted at 3.5%.  It should be noted that the discount rate is an  estimate based on the expected rate of return over extended periods.  The estimated liabilities for unpaid losses  related to health were not discounted as their turnover period is much shorter.  Claims loss reserves of $3,533,441  are recorded as current liabilities.     The Sheriff participates in the Statewide Florida Sheriff's Self‐Insurance Fund for its professional liability insurance.  The fund is managed by representatives of the participating Sheriff offices and provides professional liability  insurance to participating Sheriff agencies.  The Florida Sheriff's Self‐Insurance Fund provides liability insurance  coverage subject to the following limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an  annual aggregate per member.    The Sheriff also participates in the Statewide Florida Sheriff's Self‐Insurance Fund program for workers'  compensation coverage.  The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a  limited self‐insurance fund providing coverage for the first $500,000 of every claim.  Re‐insurance is provided  through a third party insurer for all claims exceeding $500,000 up to $10,000,000.     Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years.    Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the  estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program.  All  liabilities associated with these self‐insured risks are reported in the basic financial statements of the Statewide  Florida Sheriff’s Self‐Insurance Fund.  The Sheriff cannot be additionally assessed for claims paid by the program.  72 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 13 – RISK MANAGEMENT – CONTINUED    The Sheriff has also established a self‐funded employee health plan.  An internal service fund is used to account for  the activities of the plan.  Excess coverage has been purchased which provides specific claim excess coverage for any  one incident exceeding $200,000.  Payments to the internal service fund are based on actuarial estimates of amounts  needed to pay prior year and current year claims including claims incurred but not yet reported.    The claims loss reserve for health of $2,170,000 reported at September 30, 2015 was calculated by third party  actuaries based upon GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be  reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated.   The entire Sheriff’s health claim loss reserve is recorded as a current liability.    CHANGES IN SELF‐INSURANCE CLAIMS PAYABLE    Changes in the self‐insurance claims payable for fiscal years 2014 and 2015 were as follows for the County and Sheriff  self‐insurance programs:    Property and Group Workers' Casualty Health Compensation Total Balance at September  30, 2013 821,779$     6,452,000$     855,099$       8,128,878$      Current year claims incurred and   changes in estimates 1,371,715    43,165,938     226,887         44,764,540      Claim payments (1,084,859)   (44,748,938)    (486,793)        (46,320,590)     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$          NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS    Plan Description – The County provides post employment healthcare benefits for retirees through a single employer  defined benefit plan.  The participants of this plan include retirees of the Board of County Commissioners, the Clerk of  the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections.  In  accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the  FRS have the option of paying premiums to continue in the County’s health insurance plan at the same group rate as  for active employees.  The plan does not issue a separate financial report.     The Board of County Commissioners and the Tax Collector administer an additional single‐employer defined benefit  plan (OPEB Plan) and can amend the benefit provisions.  The Board offers an OPEB Plan that subsidizes the cost of  health care for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and  have completed 15 years of continuous service with the Board.  In addition, the retiree must retire from the Board, be  at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible  to receive an FRS benefit with no break in time.  Such employees are eligible to receive a 50% to 100% subsidy toward  the cost of coverage under the active plan.  A subsidy is currently provided to fourteen retirees.  The Tax Collector offers  an OPEB plan that subsidizes 100% the cost of health care for employees with 10 years of service, between the ages of  54 and 64 and who exchange 800 hours of sick leave at retirement.      At September 30, 2015, the date of the latest actuarial valuation, County plan participation consisted of:        OPEB plan participants 2,107      Retirees receiving benefits 70   73 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    Funding Policy ‐ The County has the authority to establish and amend funding policy. For the year ended September  30, 2015, the County contributed $831,869 to the OPEB Plan.  No trust or agency fund has been established for the  plan.    Annual OPEB Cost and Net OPEB Obligation ‐ The annual cost of the County’s OPEB Plan is calculated based on the  Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB  Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the  normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The  following table shows the components of the County’s annual OPEB Plan cost for the year, the amount actually  contributed, and the changes in the net OPEB Plan obligation.   2015 2014 2013 Annual  required contribution (ARC) 825,046$     816,457$     749,470$      Interest on net OPEB obligation 25,484         25,017         19,502          Adjustment to  ARC (42,077)        (41,306)        (32,200)             Annual  OPEB cost 808,453       800,168       736,772        Contributions  made (831,869)      (784,612)      (552,929)           Increase (decrease) in net OPEB obligation (23,416)        15,556         183,843        Net OPEB obligation ‐ beginning of year 849,469       833,913       650,070        Net OPEB obligation ‐ en d  of year 826,053$     849,469$     833,913$      Percentage of annual  OPEB cost contributed 98% 98% 75%    Funded Status and Funding Progress ‐ As of the September 30, 2014 actuarial valuation date the OPEB Plan was 0.0%  funded and the actuarial accrued liability for benefits was $6,977,743, and the actuarial value of plan assets was $0,  resulting in an unfunded actuarial accrued liability (UAAL) of $6,977,743.  As of the September 30, 2015 actuarial  valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $7,178,976, and  the actuarial value of plan assets was $0, resulting in a UAAL of $7,178,976.  The covered payroll (annual payroll of  active employees covered by the OPEB Plan) was $160.4 million, and the ratio of the UAAL to the covered payroll  was 4.4%.    Actuarial Methods and Assumptions ‐ Actuarial valuations of an ongoing plan involve estimates of the value of  reported amounts and assumptions about the probability of occurrence of events far into the future.  Examples  include assumptions about future employment, mortality, and the healthcare cost trend.  Amounts determined  regarding the funded status of the plan and the annual required contributions of the employer are subject to  continual revision as actual results are compared with past expectations and new estimates are made about the  future.      Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as  understood by the employer and the plan members in effect at the time of each valuation and on the pattern of  sharing of costs between the employer and plan members to that point. The projection of benefits for financial  reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on  the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a  long‐term perspective. Consistent with that perspective, actuarial methods and assumptions used include  techniques that are designed to reduce the effects of short‐term volatility in actuarial accrued liabilities and the  actuarial value of assets.   74 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    The actuarial methods and assumptions are:     Actuarial cost method Projected Unit Credit Actuarial Cost  Amortization method Level Dollar Amount  Amortization period 30 years, Open  Investment rate of return 3%  Discount rate 3%  Inflation rate 3%  Healthcare cost trend rate 6% for the 2016 fiscal year grading to an  ultimate rate of 5% for the 2022 fiscal year    Plan Description ‐ The Sheriff administers a single‐employer defined benefit plan (OPEB Plan) and can amend the  benefit provisions.  Prior to 2010, the Sheriff offered an OPEB Plan that subsidizes the cost of health care for its  retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from  the Florida Retirement System.  The Sheriff subsidizes approximately 20% for both single and family coverage for  qualifying individuals.  In 2010, the subsidy was no longer made available to eligible retirees who chose to continue  their health insurance coverage.  Approximately 46% of retirees receive the subsidy.  Additionally, in accordance  with Florida Statute 112.0801, Sheriff’s employees who retire and immediately begin receiving benefits from the  FRS have the option of paying premiums to continue in the Sheriff’s health insurance plan at the same group rate as  for active employees.  The plan  does not issue a separate financial report.    At September 30, 2015, the date of the latest actuarial valuation, Sheriff plan participation consisted of:        OPEB plan participants 1,138      Retirees receiving benefits 104     Funding Policy ‐ The Sheriff has the authority to establish and amend funding policy. For the year ended September  30, 2015, the Sheriff contributed $742,376 to the OPEB Plan.  No trust or agency fund has been established for the  plan.     Annual OPEB Cost and Net OPEB Obligation ‐ The annual cost of the Sheriff’s OPEB Plan is calculated based on the  Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB  Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the  normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The  following table shows the components of the Sheriff’s annual OPEB Plan cost for the year, the amount actually  contributed, and the changes in the net OPEB Plan obligation.     2015 2014 2013 Annual  required contribution (ARC) 1,262,077$ 1,138,923$ 1,151,695$  Interest on net OPEB obligation 50,437         40,348         31,444          Adjustment to ARC (83,277)        (66,618)        (51,918)             Annual  OPEB cost 1,229,237    1,112,653    1,131,221     Contributions  made (742,376)      (776,332)      (834,442)           Increase in net OPEB obligation 486,861       336,321       296,779        Net OPEB obligation ‐ beginning of year 1,681,238    1,344,917    1,048,138     Net OPEB obligation ‐ end of year 2,168,099$1,681,238$1,344,917$  Percentage of annual OPEB cost contributed 70%70%73%       75 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED     Funded Status and Funding Progress ‐ As of the September 30, 2014 actuarial valuation date, the OPEB Plan was  0.0% funded, the actuarial accrued liability for benefits was $14,207,209, and the actuarial value of assets was $0,  resulting in an unfunded actuarial accrued liability (UAAL) of $14,207,209.  As of the September 30, 2015 actuarial  valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $15,133,114, and the  actuarial value of assets was $0, resulting in a UAAL of $15,133,114.  The covered payroll (annual payroll of active  employees covered by the OPEB Plan) was $117.6 million, and the ratio of the UAAL to the covered payroll was  12.9%.    Actuarial Methods and Assumptions ‐ Actuarial valuations of an ongoing plan involve estimates of the value of  reported amounts and assumptions about the probability of occurrence of events far into the future.  Examples  include assumptions about future employment, mortality, and the healthcare cost trend.  Amounts determined  regarding the funded status of the plan and the annual required contributions of the employer are subject to  continual revision as actual results are compared with past expectations and new estimates are made about the  future.    Calculations for financial reporting purposes are based on the benefits provided under terms of the plan   as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of  sharing of costs between the employer and plan members to that point. The projection of benefits for financial  reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on  the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a  long‐term perspective. Consistent with that perspective, actuarial methods and assumptions used include  techniques that are designed to reduce the effects of short‐term volatility in actuarial accrued liabilities and the  actuarial value of assets.     The actuarial methods and assumptions are:     Actuarial cost method Projected Unit Credit Actuarial Cost  Amortization method Level Dollar Amount  Amortization period 30 years, Closed  Investment rate of return 3%  Discount rate 3%  Inflation rate 3%  Healthcare cost trend rate 8% for the 2016 fiscal year grading to an  ultimate rate of 5% for the 2022 fiscal year    NOTE 15 – LANDFILL LIABILITY    On May 1, 1995 the County entered into a landfill operating agreement with a third party for the privatization of the  County's landfill operations.  Under the contract, the third party is responsible for the daily operations, capital  improvements, closure, postclosure and financial assurance requirements of the active cells within the Naples and  Immokalee landfill sites.  Collier County is responsible for the postclosure costs relating to portions of the Naples and  Immokalee landfill sites.  None of the cells that Collier County is responsible for has accepted waste since December  1989. The County is also responsible for staffing and operating the scale house at each site.    In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB  Statement 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been  established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is  responsible.  The County’s estimated liability in connection with the landfills is included in the proprietary funds  statement of net position.  The landfill liability will be reassessed on an annual basis, and any increase due to  inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost.      76 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 16 – SIGNIFICANT CONTINGENCIES    LITIGATION    The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of  operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as  disclosed here, will not materially affect the financial position of the County.     During fiscal year 2012, the Federal Emergency Management Agency (FEMA) made a decision to de‐obligate  $11,172,273 in sand replacement costs previously reimbursed by the Agency to Collier County.  The reimbursed  costs were related to a project to repair beach erosion due to Hurricanes Katrina and Wilma.  The decision to de‐ obligate the funding is currently under appeal by Collier County.  Due to the uncertainty of an appeal, and based  upon the opinion of legal counsel, a liability was recorded in the amount of $11,172,273. In fiscal year 2014, Collier  County received notification of FEMA’s decision to reinstate $1,853,756 of funding as a result of the first round of  appeals.  In fiscal year 2015, the county’s second round of appeals was successful and an additional $7,760,504 in  funding was reinstated.  The remaining balance of $1,558,013 is recorded as a liability in both the entity wide  financial statements and the tourist development fund financial statements of Collier County.     The Board has been named as a defendant in three related lawsuits, styled Francis Hussey, et al v. Collier County,  Case No. 08‐6933‐CA; Board of County Commissioners v. Francis D. Hussey, et al., Case No. 08‐6988‐CA consolidated  with 08‐6933‐CA; and Sean Hussey, et al. v. Collier County, et al., Case No. 08‐7025‐CA.  On September 11, 2008, the  Plaintiffs, Francis D. Hussey, Jr. and Mary P. Hussey, husband and wife, and Winchester Lakes Corporation, a Florida  corporation, filed an inverse condemnation suit seeking monetary damages from Collier County, Florida, the  Honorable Charlie Crist, the Governor of the State of Florida and the Florida Department of Community Affairs.  The  Husseys contend that the designation of certain real property owned by them through a growth management plan  amendment adopted in 2002 had the effect of precluding mining activities on their property, thereby resulting in a  substantial diminution in value of the real estate, which the Plaintiffs contend to be compensable under Florida law.  The complaint alleges current damage claims in the amount of $91,500,000.  The Plaintiffs have also presented a  claim for "inverse condemnation based on a regulatory taking of plaintiffs' property," in an amount not specified in  the complaint.   The Wildlife Federation and Collier County Audubon Society were granted leave to intervene in the  suit by the Court on April 29, 2009.  On July 9, 2009, the Florida Wildlife Federation and Collier County Audubon  Society served upon defendants Francis and Mary Hussey a Notice of Intent to Sue over violations of the Endangered  Species Act of 1973 (16 U.S.C. 1531 et seq.)  The initial cases were dismissed with prejudice in February 2011 by the  trial court and are now on appeal to the Second District Court of Appeals.  Pending the outcome of the first appeal,  the parties entered into a Settlement Agreement with no costs to be incurred by the County.  The Bert Harris Act  statute requires Court approval of the Settlement Agreement which approval was denied by the Circuit Court Judge.   The denial of this Settlement Agreement is now also on appeal at the Second District Court of Appeal.  The Second  District Court affirmed denial of the Settlement Agreement.  The Second District Court reversed dismissal of the Bert  Harris Act claim and affirmed dismissal of the inverse condemnation claim.  The County is currently awaiting the  Second District Court of Appeal’s ruling on the parties’ Post Opinion Motions.  Given the proposed Settlement  Agreement (filed October 1, 2015), the County believes that this litigation will be concluded with no risk of liability  to the County.     STATE AND FEDERAL GRANTS    Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor  agencies.  Such audits may result in requests for reimbursement due to disallowed expenditures.  Based upon prior  experience, the County does not believe that such disallowances, if any, would have a material effect on the financial  position of the County.    The Clerk’s office is aware of inquiries being conducted by various grantor agencies.  The impact to the financial  statements, if any, is unknown and therefore unable to be calculated at this time.     77 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 16 – SIGNIFICANT CONTINGENCIES – CONTINUED    ARBITRAGE REBATE    In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of  the interest costs incurred are required to be rebated to the federal government.  There was no arbitrage rebate  liability as of September 30, 2015.      NOTE 17 – SIGNIFICANT COMMITMENTS    Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued,  where the goods or services have been order but not received.  Encumbrance commitments do not include  construction contracts, as they are included as contract commitments.      Collier County has the following encumbrances as of September 30, 2015:    Encumbrance Category Commitments Governmental Activities: General  Fund General  Government 636,637$            Public Safety 40,592                 Economic Environment 129,000              Human  Services 129,848              Culture and Recreation 93,887                 Bayshore Gateway Community Redevelopment Agency Economic Environment 15,735                 Immokalee CRA Economic Environment 12,232                 Other Governmental  Funds General  Government 1,682,104           Public Safety 4,423,732           Physical  Environment 4,281,737           Transportation 4,622,343           Economic Environment 5,163,099           Human Services 1,452,341           Culture and Recreation 2,439,151           Business‐type Activities: Water and Sewer Utilities 24,491,974         Solid Waste Disposal Landfill 901,983              Other Enterprise Funds Emergency Medical  Services 313,680              Airports 17,092                 Mass  Transit 1,996,282           Total 52,843,449$          78 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 17 – SIGNIFICANT COMMITMENTS – CONTINUED    Collier County has active construction projects as of September 30, 2015.  The projects include road construction,  governmental facilities and utilities improvements.  At year end, the County’s commitments with contractors include  the following:       Construction Category Commitments Governmental Activities: Immokalee Community  Redevelopment Agency Economic Environment 177,510$            Other Governmental  Funds Public Safety 1,390,115           Physical  Environment 2,655,899           Transportation 40,648,433         Culture and Recreation 1,000,373           Business‐type Activities: Water and Sewer Utilities 14,804,386 Solid Waste Disposal Landfill 591,589 Other Enterprise Funds Airports 121,728              Mass  Transit 1,454,509           Total 62,844,542$           NOTE 18 – FUND DEFICITS    The following funds had fund balance deficits at September 30, 2015:    Fund  Amount  Immokalee Community Redevelopment Agency  $           (59,425) Fire Control  Districts             (454,228)  Total (513,653)$              The fund balance deficits are the result of advances from other funds made prior to September 30, 2015.  These  advances were recorded to ensure repayment of monies loaned primarily for the acquisition of a fire station.  County  management anticipates that the deficits will be covered by future years’ revenues.       79 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2015    NOTE 19 – CHANGE IN ACCOUNTING PRINCIPLE    During the year ended September 30, 2015, the County adopted GASB Statement No. 68 Accounting and Financial  Reporting for Pensions, and the related GASB Statement No. 71 Pension Transition for Contributions Made  Subsequent to the Measurement Date—an amendment of GASB Statement No. 68. These pronouncements require  the restatement of the September 30, 2014 net position of the governmental activities and proprietary funds as  follows:    Governmental   Activities Business‐Type  Activities County Water  and Sewer Solid Waste  Disposal Other Funds Governmental   Activities  ‐  Internal Service  Funds 1,600,910,225$  920,233,550$  799,763,895$  49,809,654$ 68,957,822$ 55,864,001$      Net Pension Liability  as of September 30, (84,865,427)        (16,168,963)     (7,782,595)       (676,326)        (7,710,042)     (1,888,731)         Deferred Outflow of  Resources  for  Unamortized Pension  Costs  as of September  30, 2014 13,896,713          2,402,902         945,803            80,475            1,376,624      245,469              Deferred Inflow of  Resources  for  Unamortized Pension  Costs  as of September  30, 2014 (63,207,464)        (13,003,532)     (4,581,115)       (384,435)        (8,037,982)     (1,238,621)         September 30, 2014,  as Restated 1,466,734,047$  893,463,957$  788,345,988$  48,829,368$ 54,586,422$ 52,982,118$      Business‐type Activities  Enterprise Funds Net Position, September  30, 2014, as Previously  Reported Cumulative Affect of  Application of GASB 68:   80 REQUIRED SUPPLEMENTARY  INFORMATION  THIS PAGE INTENTIONALLY LEFT BLANK  2015 2014 County's Proportion of the Net Pension Liability 0.736106708% 0.703655077% County's Proportionate Share of the Net Pension Liability 95,078,054$      42,933,306$        County's Covered‐Employee Payroll 140,176,971$     132,386,835$      County's Proportionate Share of the Net Pension Liability (Asset) as a  Percentage of Its Covered‐Employee Payroll 67.83% 32.43% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 92.00% 96.09% 2015 2014 Contractually Required Contribution 17,830,147$       17,287,796$        Contributions in Relation to the Contractually Required Contribution (17,830,147)        (17,287,796)         Contribution Deficiency (Excess)‐$                         ‐$                           County's Covered‐Employee Payroll FY 139,443,152$    133,436,828$      Contributions as a Percentage of Covered Employee Payroll 12.79% 12.96% 2015 2014 County's Proportion of the Net Pension Liability 0.642983194% 0.621385755% County's Proportionate Share of the Net Pension Liability 65,574,171$      58,101,084$        County's Covered‐Employee Payroll 195,154,275$    184,577,284$      County's Proportionate Share of the Net Pension Liability (Asset) as a  Percentage of Its Covered‐Employee Payroll 33.60% 31.48% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 0.50%0.99% 2015 2014 Contractually Required Contribution 2,614,704$         2,131,155$          Contributions in Relation to the Contractually Required Contribution (2,614,704)          (2,131,155)           Contribution Deficiency (Excess)‐$                         ‐$                           County's Covered‐Employee Payroll FY 193,543,352$    185,505,694$      Contributions as a Percentage of Covered Employee Payroll 1.35%1.15% LAST TEN FISCAL YEARS* SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS* Note:  Information is required to be presented for 10 years.  However, until a full 10‐year trend is compiled, the County will pres for which information is available. *The Amounts Presented for Each Fiscal Year were Determined as of June 30. 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 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* 83 Actuarial Accrued UAAL as a  Actuarial Actuarial Liability (AAL) ‐ Percentage of Valuation Value of Unit Credit Unfunded Funded Covered Covered Agency Date Assets Actuarial Cost AAL (UAAL) Ratio Payroll Payroll Board and Constitutionals 10/1/2009 ‐$            5,814,470$         5,814,470$ 0.0% 112,828,491$ 5.2%  (Non‐Sheriff) Board and Constitutionals 10/1/2010 ‐               5,825,874           5,825,874  0.0% 105,458,501   5.5%  (Non‐Sheriff) Board and Constitutionals 10/1/2011 ‐               6,564,292           6,564,292  0.0% 106,554,662   6.2%  (Non‐Sheriff) Board and Constitutionals 10/1/2012 ‐               6,650,672           6,650,672  0.0% 105,433,555   6.3%  (Non‐Sheriff) Board and Constitutionals 10/1/2013 ‐               7,093,909           7,093,909  0.0% 102,713,900   6.9%  (Non‐Sheriff) Board and Constitutionals 10/1/2014 ‐               6,977,743           6,977,743  0.0% 109,906,269   6.3%  (Non‐Sheriff) Board and Constitutionals 10/1/2015 ‐               7,178,976           7,178,976  0.0% 116,579,554   6.2%  (Non‐Sheriff) Sheriff 10/1/2009 ‐               14,171,709         14,171,709 0.0% 123,296,677   11.5% Sheriff 10/1/2010 ‐               12,148,033         12,148,033 0.0% 117,879,632   10.3% Sheriff 10/1/2011 ‐               12,018,242         12,018,242 0.0% 114,185,572   10.5% Sheriff 10/1/2012 ‐               13,291,909         13,291,909 0.0% 108,390,240   12.3% Sheriff 10/1/2013 ‐               13,141,022         13,141,022 0.0% 107,204,015   12.3% Sheriff 10/1/2014 ‐               14,207,209         14,207,209 0.0%112,902,749   12.6% Sheriff 10/1/2015 ‐               15,133,114         15,133,114 0.0% 117,563,839   12.9% COLLIER COUNTY, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN OTHER POSTEMPLOYMENT BENEFITS 84 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 Road Unincorporated Community and Pollution Districts Area MSTD Development Control ASSETS  Cash, cash equivalents and investments 2,637,594$             9,771,544$             36,676,107$           2,260,719$                Cash with fiscal agent ‐‐‐‐  Receivables:         Interest 8,469 30,350 86,796 7,057         Trade, net 1,277 145,350 6,355 282         Notes ‐‐‐‐        Impact fee ‐‐‐‐        Special assessments ‐‐‐‐  Due from other funds 800,000 276,620 21 41,783   Due from other governments 18,287 403,116 122,900 66,254   Deposits ‐‐‐‐  Inventory for resale ‐‐‐‐  Inventory 904,891 ‐‐17,559   Advances to other funds ‐528,901 ‐‐  Prepaid costs 60,000 4,000 ‐‐      Total assets 4,430,518$              11,159,881$            36,892,179$            2,393,654$               LIABILITIES, DEFERRED INFLOWS OF     RESOURCES AND FUND BALANCES  Liabilities:       Accounts payable 242,008 1,065,608               186,157 107,960       Wages payable 522,314 806,278 847,461 141,548       Due to other funds ‐18,896 ‐‐      Due to other governments 111 503,153 1,999,460               ‐      Unearned revenues ‐6,493 ‐‐      Refundable deposits ‐‐61,785 ‐      Retainage payable ‐‐‐‐      Advances from other funds ‐‐‐‐      Total liabilities 764,433 2,400,428               3,094,863               249,508   Deferred inflows of resources:       Unavailable revenue ‐‐‐‐  Fund balances (deficits):     Nonspendable 964,891 532,901 ‐17,559     Restricted 2,701,194                ‐33,797,316            ‐    Committed ‐8,226,552               ‐2,126,587                     Assigned ‐‐‐‐    Unassigned ‐‐‐‐      Total fund balances (deficits) 3,666,085                8,759,453               33,797,316            2,144,146                   Total liabilities, deferred inflows of       resources and fund balances (deficits) 4,430,518$              11,159,881$            36,892,179$            2,393,654$               See accompanying independent auditor's report Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 90 Grants and Fire 911 Shared Improvement Control Lighting Enhancement Tourist Revenues Districts Districts Districts Fee Development 3,597,691$              13,876,990$            351,414$                  1,170,603$             4,196,432$                  52,698,434$             ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 9,336                        36,586                      1,790                       3,366                      10,648                         130,836                     267,950                    377                           1,274                       242                         ‐                                    859,626                     ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 614,035                    32,563                      35,162                      10,997                    ‐                                    164,537                     13,293,675              ‐                                 3,254                       ‐                               ‐                                    8,532,800                  ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 17,782,687$            13,946,516$            392,894$                  1,185,208$              4,207,080$                   62,386,233$             3,507,945                 981,121                    5,585                       64,860                    901,513                       1,056,065                  145,998                    27,705                      129,339                    6,166                      ‐                                    126,744                     9,112,299                 3,855                        398                          312                         ‐                                    1,273                         172,823                    ‐                                 ‐                                ‐                               ‐                                    1,558,013                  ‐                                 ‐                                 ‐                                ‐                               ‐                                    ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                                    1,050                         1,230,595                 157,815                     ‐                                 ‐                                ‐                                     ‐                                 ‐                                 260,000                    711,800                     ‐                                ‐                                     ‐                                 14,169,660              1,430,496                 847,122                    71,338                    901,513                       2,743,145                  103,979                     ‐                                  ‐                                 ‐                                ‐                                     ‐                                 ‐                                  ‐                                  ‐                                 ‐                                ‐                                     ‐                                 3,509,048                  ‐                                  ‐                                 ‐                               3,305,567                    59,643,088               ‐                                 12,516,020               ‐                                1,113,870                ‐                                     ‐                                 ‐                                  ‐                                  ‐                                 ‐                                ‐                                     ‐                                 ‐                                  ‐                                 (454,228)                   ‐                                ‐                                     ‐                                 3,509,048                 12,516,020              (454,228)                  1,113,870               3,305,567                    59,643,088               17,782,687$            13,946,516$            392,894$                  1,185,208$              4,207,080$                   62,386,233$             Special Revenue Funds 91 State 800 Housing MHZ Initiative IRCP State Court Confiscated Partnership Fund Administration Property ASSETS  Cash, cash equivalents and investments 2,402,662$             27,651$                   187,039$                 340,343$                    Cash with fiscal agent ‐                                ‐                               ‐                               ‐                                  Receivables:       Interest 6,312                       295                         825                         934                                 Trade, net ‐                                19,651                    84,402                    ‐                                      Notes 655,176                   ‐                               ‐                               ‐                                      Impact fee ‐                                ‐                               ‐                               ‐                                      Special assessments ‐                                ‐                               ‐                               ‐                                  Due from other funds ‐                                ‐                               3,137                      ‐                                  Due from other governments ‐                                ‐                               ‐                               ‐                                  Deposits ‐                                ‐                               ‐                               ‐                                  Inventory for resale ‐                                ‐                               ‐                               ‐                                  Inventory ‐                                ‐                               ‐                               ‐                                  Advances to other funds ‐                                ‐                               ‐                               ‐                                  Prepaid costs ‐                                ‐                               ‐                               ‐                                      Total assets 3,064,150$              47,597$                    275,403$                  341,277$                   LIABILITIES, DEFERRED INFLOWS OF     RESOURCES AND FUND BALANCES  Liabilities:       Accounts payable 73,120                     7,642                      307                         11,895                            Wages payable 7,427                       ‐                               107,279                  ‐                                      Due to other funds ‐                                ‐                               ‐                               ‐                                      Due to other governments ‐                                ‐                               ‐                               ‐                                      Unearned revenues ‐                                ‐                               ‐                               ‐                                      Refundable deposits ‐                                ‐                               ‐                               ‐                                      Retainage payable ‐                                ‐                               ‐                               ‐                                      Advances from other funds ‐                                ‐                               ‐                               ‐                                      Total liabilities 80,547                     7,642                      107,586                  11,895                        Deferred inflows of resources:       Unavailable revenue ‐                                ‐                               ‐                               ‐                                  Fund balances (deficits):     Nonspendable ‐                                ‐                               ‐                               ‐                                    Restricted 2,983,603                ‐                               ‐                               329,382                        Committed ‐                                39,955                    167,817                  ‐                                    Assigned ‐                                ‐                               ‐                               ‐                                    Unassigned ‐                                ‐                               ‐                               ‐                                      Total fund balances (deficits) 2,983,603                39,955                    167,817                  329,382                      Total liabilities, deferred inflows of       resources and fund balances (deficits) 3,064,150$              47,597$                    275,403$                  341,277$                   See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 Special Revenue Funds 92 GAC Land Court Sales, Roads Utility Conservation Information Court University and Canals Fee Collier Technology Services Extension 920,121$                  1,253,072$              33,759,829$            1,023,432$             1,422,535$             120,665$                   ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 2,631                        2,994                        85,881                      2,925                      ‐                               308                           ‐                                 80,843                      576                          68,386                    ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               49,312                    ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 229,733                    ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 1,152,485$              1,336,909$              33,846,286$            1,094,743$              1,471,847$              120,973$                   ‐                                 4                                159,190                    66,092                    223,259                  154                           ‐                                 20,441                      15,452                      4,253                      ‐                               ‐                                 ‐                                 ‐                                 8,559                       ‐                               379                         ‐                                 ‐                                 ‐                                 ‐                                ‐                               1,248,209               ‐                                 ‐                                 ‐                                 1,035                       ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 20,445                      184,236                    70,345                    1,471,847               154                           ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 1,152,485                 ‐                                 33,662,050              1,024,398               ‐                               120,819                    ‐                                 1,316,464                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 ‐                                 ‐                                 ‐                                ‐                               ‐                               ‐                                 1,152,485                 1,316,464                 33,662,050              1,024,398               ‐                               120,819                    1,152,485$              1,336,909$              33,846,286$            1,094,743$              1,471,847$              120,973$                   Special Revenue Funds 93 Other Other Court Court Special Public Safety Facilities Affordable Revenue Revenue Fee Housing Funds Funds ASSETS  Cash, cash equivalents and investments 6,726,719$             155,002$                 4,948,870$             4,232,911$                Cash with fiscal agent ‐                                ‐                               ‐                               ‐                                  Receivables:       Interest 16,950                     392                         ‐                               4,893                              Trade, net 69,845                     ‐                               ‐                               12,471                            Notes ‐                                ‐                               ‐                               ‐                                      Impact fee ‐                                ‐                               ‐                               ‐                                      Special assessments ‐                                ‐                               ‐                               ‐                                  Due from other funds ‐                                ‐                               ‐                               34,747                        Due from other governments ‐                                ‐                               ‐                               ‐                                  Deposits ‐                                ‐                               ‐                               ‐                                  Inventory for resale ‐                                ‐                               ‐                               ‐                                  Inventory ‐                                ‐                               ‐                               ‐                                  Advances to other funds ‐                                ‐                               ‐                               ‐                                  Prepaid costs ‐                                ‐                               ‐                               ‐                                      Total assets 6,813,514$              155,394$                  4,948,870$              4,285,022$               LIABILITIES, DEFERRED INFLOWS OF     RESOURCES AND FUND BALANCES  Liabilities:       Accounts payable ‐                                ‐                               39,069                    147,013                          Wages payable ‐                                ‐                               ‐                               ‐                                      Due to other funds ‐                                ‐                               ‐                               445,763                          Due to other governments ‐                                ‐                               ‐                               ‐                                      Unearned revenues ‐                                ‐                               ‐                               ‐                                      Refundable deposits ‐                                ‐                               ‐                               ‐                                      Retainage payable 4,752                       ‐                               ‐                               ‐                                      Advances from other funds ‐                                ‐                               ‐                               ‐                                      Total liabilities 4,752                       ‐                               39,069                    592,776                      Deferred inflows of resources:       Unavailable revenue ‐                                ‐                               ‐                               ‐                                  Fund balances (deficits):     Nonspendable ‐                                ‐                               ‐                               ‐                                    Restricted 6,808,762                ‐                               4,909,801               3,692,246                     Committed ‐                                155,394                   ‐                                ‐                                    Assigned ‐                                ‐                               ‐                               ‐                                    Unassigned ‐                                ‐                               ‐                               ‐                                      Total fund balances (deficits) 6,808,762                155,394                  4,909,801               3,692,246                   Total liabilities, deferred inflows of       resources and fund balances (deficits) 6,813,514$              155,394$                  4,948,870$              4,285,022$               See accompanying independent auditor's report Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 94  Permanent Fund  Other Total Conservation Special Special Resource Radio Road East Collier Revenue Revenue Recovery Park Limited General Limited General Funds Funds Endowment Obligation Bonds Obligation Bonds 2,991,182$          187,749,561$        1,719,029$                            109,536$                               56,850$                                ‐                            ‐                               ‐                                              ‐                                             ‐                                             7,471                    458,045                  4,392                                      296                                        144                                      22,844                  1,641,751              ‐                                              ‐                                             ‐                                             ‐                            655,176                  ‐                                              ‐                                             ‐                                             ‐                            ‐                               ‐                                              ‐                                             ‐                                             ‐                            ‐                               ‐                                              ‐                                             ‐                                             ‐                            2,013,602              ‐                                              816                                        8,559                                   ‐                            22,489,598            ‐                                              ‐                                             ‐                                             ‐                            ‐                               ‐                                              ‐                                             ‐                                            ‐                            229,733                  ‐                                              ‐                                             ‐                                             ‐                            922,450                  ‐                                              ‐                                             ‐                                             ‐                            528,901                  ‐                                              ‐                                             ‐                                             ‐                            64,000                    ‐                                              ‐                                             ‐                                             3,021,497$          216,752,817$        1,723,421$                             110,648$                                65,553$                                7,183                    8,853,750              7,373                                      ‐                                             ‐                                             6,308                    2,914,713              ‐                                              ‐                                             ‐                                             3,137                    9,594,871              ‐                                              ‐                                             ‐                                             180                       5,481,949              ‐                                              ‐                                             ‐                                             ‐                            7,528                      ‐                                              ‐                                             ‐                                             ‐                            62,835                    ‐                                              ‐                                             ‐                                             ‐                            1,393,162              ‐                                              ‐                                             ‐                                             ‐                            971,800                  ‐                                              ‐                                             ‐                                             16,808                  29,280,608            7,373                                      ‐                                             ‐                                             ‐                            103,979                  ‐                                              ‐                                             ‐                                             ‐                            1,515,351              1,582,800                              ‐                                             ‐                                             472,583               158,112,342          133,248                                 110,648                                65,553                                 ‐                            25,662,659            ‐                                              ‐                                             ‐                                             2,532,106            2,532,106              ‐                                              ‐                                             ‐                                             ‐                            (454,228)                ‐                                              ‐                                             ‐                                             3,004,689            187,368,230          1,716,048                              110,648                                65,553                                 3,021,497$          216,752,817$        1,723,421$                             110,648$                                65,553$                                Debt Service Funds Special Revenue Funds 95 Community Forest Lakes Special Redevelopment Limited General Obligation Other Taxable Note Obligation Bonds Revenue Bonds Debt Service ASSETS  Cash, cash equivalents and investments 27,600$887,087$52,573$ 81,591$  Cash with fiscal agent 800,295 ‐10,904,041 ‐  Receivables:       Interest 405 2,277 31,022 3,252      Trade, net ‐‐‐ 40      Notes ‐‐‐ ‐      Impact fee ‐‐‐ ‐      Special assessments ‐‐‐ ‐  Due from other funds ‐4,011 ‐ ‐  Due from other governments ‐‐‐ ‐  Deposits ‐‐‐ ‐  Inventory for resale ‐‐‐ ‐  Inventory ‐‐‐ ‐  Advances to other funds ‐‐‐ ‐  Prepaid costs ‐‐‐ ‐      Total assets 828,300$ 893,375$ 10,987,636$ 84,883$  LIABILITIES, DEFERRED INFLOWS OF     RESOURCES AND FUND BALANCES  Liabilities:       Accounts payable ‐‐‐ ‐      Wages payable ‐‐‐ ‐      Due to other funds ‐‐7,600,000 ‐      Due to other governments ‐‐‐ ‐      Unearned revenues ‐‐‐ ‐      Refundable deposits ‐‐‐ ‐      Retainage payable ‐‐‐ ‐      Advances from other funds ‐‐‐ ‐      Total liabilities ‐‐7,600,000 ‐  Deferred inflows of resources:       Unavailable revenue ‐‐‐ ‐  Fund balances (deficits):     Nonspendable ‐‐‐ ‐    Restricted 828,300 893,375 3,387,636 84,883    Committed ‐‐‐ ‐    Assigned ‐‐‐ ‐    Unassigned ‐‐‐ ‐      Total fund balances (deficits) 828,300 893,375 3,387,636 84,883  Total liabilities, deferred inflows of       resources and fund balances (deficits) 828,300$ 893,375$ 10,987,636$ 84,883$  See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 Debt Service Funds 96 Debt Service Funds Total Emergency Debt County‐Wide County‐Wide Correctional Medical Service Capital Parks Library Facilities Services Funds Improvements Improvements Impact Fees Impact Fees Impact Fees 1,215,237$                             11,326,446$              1,197,472$               1,090,308$                   490,543$                  2,018,878$              11,704,336                             ‐                                  ‐                                 ‐                                     ‐                                ‐                                 37,396                                     24,025                        3,445                         2,514                            4,336                       5,050                        40                                             ‐                                  34,040                       ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 203,974                        60,774                     57,889                      ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 13,386                                     ‐                                  337,528                    ‐                                     1,300,000               ‐                                 ‐                                                12,389                        ‐                                 12,836                          35,714                     7,793                        ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 12,970,395$                           11,362,860$              1,572,485$                1,309,632$                    1,891,367$              2,089,610$               ‐                                                423,849                     134,964                    62,315                          ‐                                162,219                    ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 7,600,000                               1,051,307                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                               ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                306,563                     ‐                                 ‐                                     ‐                                17,279                      ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 7,600,000                               1,781,719                  134,964                    62,315                          ‐                                179,498                    ‐                                                ‐                                  ‐                                 203,974                        60,774                     57,889                      ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 5,370,395                               ‐                                  ‐                                 1,043,343                    1,830,593               1,852,223                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 ‐                                                9,581,141                  1,437,521                 ‐                                     ‐                                ‐                                 ‐                                                ‐                                  ‐                                 ‐                                     ‐                                ‐                                 5,370,395                               9,581,141                  1,437,521                 1,043,343                    1,830,593               1,852,223                 12,970,395$                           11,362,860$              1,572,485$                1,309,632$                    1,891,367$              2,089,610$               Capital Projects Funds  97 Parks Road Water Impact Impact Road Management Districts Districts Construction ASSETS  Cash, cash equivalents and investments 13,686,061$              15,516,684$            53,930,354$            28,759,931$            Cash with fiscal agent ‐‐‐ ‐  Receivables:       Interest 35,133 42,005 133,716 73,573       Trade, net ‐‐‐ 171,113       Notes ‐‐‐ ‐      Impact fee ‐1,238,057                3,161,944                ‐      Special assessments ‐‐‐ ‐  Due from other funds 2,517 2,400,000                ‐ 6,257,339                Due from other governments ‐78,261 709,177 1,573,310                Deposits ‐1,250 ‐ ‐  Inventory for resale ‐‐‐ ‐  Inventory ‐‐‐ ‐  Advances to other funds ‐‐‐ ‐  Prepaid costs ‐‐‐ 8,000      Total assets 13,723,711$               19,276,257$             57,935,191$             36,843,266$           LIABILITIES, DEFERRED INFLOWS OF     RESOURCES AND FUND BALANCES  Liabilities:       Accounts payable 424,748 215,099 1,400,818                900,706       Wages payable 2,459 ‐‐ 177,777       Due to other funds 30,385 ‐‐ 148,515       Due to other governments ‐‐‐ ‐      Unearned revenues ‐‐‐ ‐      Refundable deposits ‐‐‐ ‐      Retainage payable 1,520 ‐160,045 81,209       Advances from other funds ‐‐‐ ‐      Total liabilities 459,112 215,099 1,560,863                1,308,207                Deferred inflows of resources:       Unavailable revenue ‐1,238,057                3,161,943                ‐  Fund balances (deficits):     Nonspendable ‐‐‐ 8,000    Restricted ‐17,823,101              53,212,385             35,527,059                Committed ‐‐‐ ‐    Assigned 13,264,599                ‐‐ ‐    Unassigned ‐‐‐ ‐      Total fund balances (deficits) 13,264,599                17,823,101              53,212,385             35,535,059              Total liabilities, deferred inflows of       resources and fund balances (deficits) 13,723,711$               19,276,257$             57,935,191$             36,843,266$           See accompanying independent auditor's report Capital Projects Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 98 Total Total Government Law All Terrain Other Capital Nonmajor Facilities Enforcement Vehicle Capital Projects Governmental Impact Fees Impact Fees Park Projects Funds Funds 3,141,854$            2,929,999$            2,998,851$          1,162,589$             138,249,970$         328,933,797$           ‐                               ‐                              ‐                           ‐                               ‐                               11,704,336              13,464                    8,966                      7,554                    2,791                      356,572                  856,405                    ‐                               ‐                              ‐                           2,310                      207,463                  1,849,254                 ‐                               ‐                              ‐                           ‐                               ‐                               655,176                    191,627                  69,761                    ‐                           ‐                               4,984,026               4,984,026                 ‐                               ‐                              ‐                           5,473                      5,473                      5,473                        2,300,000              500,000                  ‐                           1,585                      13,098,969            15,125,957              55,127                    ‐                              ‐                           ‐                               2,484,607               24,974,205              ‐                               ‐                              ‐                           ‐                               1,250                      1,250                        ‐                               ‐                              ‐                           ‐                               ‐                               229,733                    ‐                               ‐                              ‐                           ‐                               ‐                               922,450                    ‐                               ‐                              ‐                           ‐                               ‐                               528,901                    ‐                               ‐                              ‐                           5,600                      13,600                    77,600                      5,702,072$            3,508,726$            3,006,405$          1,180,348$              159,401,930$          390,848,563$           ‐                               6,477                      ‐                           72,255                    3,803,450               12,664,573              ‐                               ‐                              ‐                           58,867                    239,103                  3,153,816                 ‐                               ‐                              ‐                           ‐                               1,230,207               18,425,078              ‐                               ‐                              ‐                           ‐                               ‐                               5,481,949                 ‐                               ‐                              ‐                           ‐                               ‐                               7,528                        ‐                               ‐                              ‐                           ‐                               ‐                               62,835                      ‐                               ‐                              ‐                           ‐                               566,616                  1,959,778                 3,080,280              ‐                              ‐                           ‐                               3,080,280               4,052,080                 3,080,280              6,477                      ‐                           131,122                  8,919,656               45,807,637              191,627                  69,761                    ‐                           ‐                               4,984,025               5,088,004                 ‐                               ‐                              ‐                           5,600                      13,600                    3,111,751                 2,430,165              3,432,488              ‐                           65,079                    117,216,436          280,832,421            ‐                               ‐                              ‐                           ‐                               ‐                               25,662,659              ‐                               ‐                              3,006,405            978,547                  28,268,213            30,800,319              ‐                               ‐                              ‐                           ‐                               ‐                               (454,228)                  2,430,165              3,432,488              3,006,405            1,049,226               145,498,249          339,952,922            5,702,072$            3,508,726$            3,006,405$          1,180,348$              159,401,930$          390,848,563$           Capital Projects Funds 99 Water Management Road Unincorporated Community and Pollution Districts Area MSTD Development Control Revenues:   Taxes ‐$                               32,673,287$            ‐$                               1,829,677$                 Licenses, permits and impact fees 550,175                    247,549                    24,152,882              800                              Intergovernmental 1,650,210                 13,201                      607                           ‐                                    Charges for services 299,441                    3,190,972                 2,994,896                 354,247                       Fines and forfeitures ‐                                 376,800                    ‐                                 ‐                                    Interest income 35,190                      162,496                    321,348                    39,397                         Special assessments ‐                                 ‐                                 ‐                                 2,693,303                    Miscellaneous 80,406                      201,101                    206                           3,625                           Total revenues 2,615,422                 36,865,406              27,469,939              4,921,049                  Expenditures: Current:   General government ‐                                 5,658,865                 5,286,286                 ‐                                    Public safety ‐                                 4,148,913                 11,734,370              ‐                                    Physical environment ‐                                 653,565                    852,254                    2,864,995                    Transportation 15,517,947              7,170,994                 ‐                                 1,930,047                    Economic environment ‐                                 98,789                      ‐                                 ‐                                    Human services ‐                                 ‐                                 ‐                                 ‐                                    Culture and recreation ‐                                 11,079,962              ‐                                 ‐                                    Debt service:      Principal ‐                                 ‐                                 ‐                                 ‐                                       Interest ‐                                 ‐                                 ‐                                 ‐                                       Fiscal charges ‐                                 ‐                                 ‐                                 ‐                                    Capital outlay 1,957,278                 436,928                    631,916                    129,957                         Total expenditures 17,475,225              29,248,016              18,504,826              4,924,999                       Excess (deficiency) of revenues         over (under) expenditures (14,859,803)             7,617,390                 8,965,113                 (3,950)                        Other financing sources (uses):   Sale of capital assets ‐                                 ‐                                 12,054                      4,344                           Insurance proceeds 240,016                    30,019                      ‐                                 48                                 Transfers in 16,213,600              1,066,714                 827,800                    41,783                         Transfers out (1,205,500)               (7,650,943)               (223,573)                  (270,320)                       Total other financing sources (uses)15,248,116              (6,554,210)               616,281                    (224,145)                   Net change in fund balances 388,313                    1,063,180                 9,581,394                 (228,095)                   Fund balances (deficits) at beginning of year 3,277,772                 7,696,273                 24,215,922              2,372,241                  Fund balances (deficits) at end of year 3,666,085$              8,759,453$              33,797,316$            2,144,146$               See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED  SEPTEMBER 30, 2015 Special Revenue Funds 100 Grants and Fire 911 Shared Improvement Control Lighting Enhancement Tourist Revenues Districts Districts Districts Fee Development ‐$                               3,452,115$              2,623,789$              1,265,060$              ‐$                               21,188,191$             ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  27,313,721              ‐                                 3,254                        ‐                                 1,721,811                 2,529,126                  1,801                        220,372                    8,708                        ‐                                 ‐                                 14,615                       ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  37,362                      164,328                    10,236                      14,521                      44,633                      511,028                     ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  612,512                    308,613                    6,377                        10,177                      ‐                                 7,971,614                  27,965,396              4,145,428                 2,652,364                 1,289,758                 1,766,444                 32,214,574               1,745,803                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  2,061,661                 ‐                                 3,113,849                 ‐                                 1,670,846                 ‐                                  564,033                    3,157,059                 ‐                                 ‐                                 ‐                                 4,198,681                  181,078                    988,349                    ‐                                 925,395                    ‐                                 ‐                                  6,392,618                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  2,962,443                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  556,769                    814,107                    ‐                                 ‐                                 ‐                                 9,817,517                  ‐                                 ‐                                 54,588                      ‐                                 ‐                                 ‐                                  ‐                                 ‐                                 10,345                      ‐                                 ‐                                 ‐                                  ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  20,342,828              1,302,801                 64,994                      ‐                                 1,018,209                 499,507                     34,807,233              6,262,316                 3,243,776                 925,395                    2,689,055                 14,515,705               (6,841,837)               (2,116,888)               (591,412)                  364,363                    (922,611)                  17,698,869               ‐                                 ‐                                 7,896                        ‐                                 ‐                                 ‐                                  ‐                                 3,883                        1,259                        ‐                                 ‐                                 ‐                                  6,309,867                 425,698                    551,513                    10,599                      ‐                                 305,236                     (3,202)                       (692,558)                  (82,151)                     (78,419)                     ‐                                 (875,764)                   6,306,665                 (262,977)                  478,517                    (67,820)                     ‐                                 (570,528)                   (535,172)                  (2,379,865)               (112,895)                  296,543                    (922,611)                  17,128,341               4,044,220                 14,895,885              (341,333)                  817,327                    4,228,178                 42,514,747               3,509,048$              12,516,020$            (454,228)$                1,113,870$              3,305,567$              59,643,088$             Special Revenue Funds 101 State Housing Initiative 800 MHZ State Court Confiscated Partnership ICRP Fund Administration Property Revenues:   Taxes ‐$                               ‐$                               ‐$                               ‐$                                  Licenses, permits and impact fees ‐                                 ‐                                 ‐                                 ‐                                    Intergovernmental 525,997                    ‐                                 ‐                                 ‐                                    Charges for services ‐                                 402,401                    175,280                    ‐                                    Fines and forfeitures ‐                                 ‐                                 952,852                    68,048                         Interest income 26,251                      1,645                        3,362                        4,070                           Special assessments ‐                                 ‐                                 ‐                                 ‐                                    Miscellaneous 360,248                    134,982                    5,798                        ‐                                    Total revenues 912,496                    539,028                    1,137,292                 72,118                       Expenditures: Current:   General government ‐                                 ‐                                 866,444                    ‐                                    Public safety ‐                                 1,193,755                 1,486,259                 67,500                         Physical environment ‐                                 ‐                                 ‐                                 ‐                                    Transportation ‐                                 ‐                                 ‐                                 ‐                                    Economic environment 648,000                    ‐                                 ‐                                 ‐                                    Human services ‐                                 ‐                                 ‐                                 ‐                                    Culture and recreation ‐                                 ‐                                 ‐                                 ‐                                    Debt service:      Principal ‐                                 ‐                                 ‐                                 ‐                                       Interest ‐                                 ‐                                 ‐                                 ‐                                       Fiscal charges ‐                                 ‐                                 ‐                                 ‐                                    Capital outlay ‐                                 ‐                                 ‐                                 ‐                                      Total expenditures 648,000                    1,193,755                 2,352,703                 67,500                            Excess (deficiency) of revenues         over (under) expenditures 264,496                    (654,727)                  (1,215,411)               4,618                         Other financing sources (uses):   Sale of capital assets ‐                                 ‐                                 ‐                                 ‐                                    Insurance proceeds ‐                                 ‐                                 ‐                                 ‐                                    Transfers in ‐                                 632,900                    1,269,237                 ‐                                    Transfers out (63,143)                     ‐                                 (24,537)                     (63,725)                          Total other financing sources (uses)(63,143)                     632,900                    1,244,700                 (63,725)                      Net change in fund balances 201,353                    (21,827)                     29,289                      (59,107)                      Fund balances (deficits) at beginning of year 2,782,250                 61,782                      138,528                    388,489                     Fund balances (deficits) at end of year 2,983,603$              39,955$                    167,817$                  329,382$                   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, 2015 Special Revenue Funds 102 GAC Land Court Sales, Roads Utility Conservation Information Court University and Canals Fee Collier Technology Services Extension ‐$                               338,688$                  12,555$                    ‐$                               ‐$                               ‐$                                ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  ‐                                 ‐                                 ‐                                 ‐                                 361,895                    ‐                                  ‐                                 100,000                    432                           850,946                    6,484,209                 32,301                       ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  11,287                      12,148                      357,594                    11,279                      10,644                      1,255                         ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  ‐                                 ‐                                 89,056                      ‐                                 ‐                                 ‐                                  11,287                      450,836                    459,637                    862,225                    6,856,748                 33,556                       ‐                                 ‐                                 ‐                                 699,603                    6,856,748                  ‐                                  ‐                                  ‐                                  ‐                                 32,248                       ‐                                  ‐                                  ‐                                 397,866                    769,891                     ‐                                  ‐                                 25,638                       ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                 12,976                       ‐                                  ‐                                  187,769                     ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                  ‐                                 296,561                    32,279                       ‐                                  ‐                                  187,769                    397,866                    1,066,452                 777,106                    6,856,748                 25,638                       (176,482)                  52,970                      (606,815)                  85,119                      ‐                                 7,918                         ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  ‐                                 ‐                                 ‐                                 ‐                                 ‐                                 ‐                                  ‐                                 50,000                      91,229                      ‐                                 ‐                                 ‐                                  (176)                          ‐                                 (917)                          ‐                                 ‐                                 ‐                                  (176)                          50,000                      90,312                      ‐                                 ‐                                 ‐                                  (176,658)                  102,970                    (516,503)                  85,119                      ‐                                 7,918                         1,329,143                 1,213,494                 34,178,553              939,279                    ‐                                 112,901                     1,152,485$              1,316,464$              33,662,050$            1,024,398$              ‐$                               120,819$                   Special Revenue Funds 103 Other Other Court Court Special Public Safety Facilities Affordable Revenue Revenue Fee Housing Funds Funds Revenues:   Taxes ‐$ ‐$ ‐$ ‐$    Licenses, permits and impact fees ‐ ‐ ‐ ‐    Intergovernmental ‐ ‐ ‐ ‐    Charges for services ‐ ‐ 1,463,188                 936,072                Fines and forfeitures 891,401 ‐ ‐ 57,067                  Interest income 68,225 1,813 7,650 25,997                  Special assessments ‐ ‐ ‐ ‐    Miscellaneous ‐ ‐ ‐ 157,615                Total revenues 959,626 1,813 1,470,838                 1,176,751          Expenditures: Current:   General government 167,270 ‐ 1,298,620                 ‐    Public safety ‐ ‐ ‐ 999,708                Physical environment ‐ ‐ ‐ ‐    Transportation ‐ ‐ ‐ ‐    Economic environment ‐ ‐ ‐ ‐    Human services ‐ ‐ ‐ ‐    Culture and recreation ‐ ‐ ‐ ‐    Debt service:      Principal ‐ ‐ ‐ ‐       Interest ‐ ‐ ‐ ‐       Fiscal charges ‐ ‐ ‐ ‐    Capital outlay 64,233 ‐ ‐ 110,115                  Total expenditures 231,503 ‐ 1,298,620                 1,109,823               Excess (deficiency) of revenues         over (under) expenditures 728,123 1,813 172,218 66,928                Other financing sources (uses):   Sale of capital assets ‐ ‐ ‐ ‐    Insurance proceeds ‐ ‐ ‐ ‐    Transfers in ‐ ‐ ‐ ‐    Transfers out ‐ ‐ ‐ (79,298)                  Total other financing sources (uses)‐ ‐ ‐ (79,298)              Net change in fund balances 728,123 1,813 172,218 (12,370)              Fund balances (deficits) at beginning of year 6,080,639                 153,581 4,737,583                 3,704,616          Fund balances (deficits) at end of year 6,808,762$              155,394$ 4,909,801$              3,692,246$        See accompanying independent auditor's report 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, 2015 104  Permanent Fund  Other Total Conservation Special Special Resource Radio Road East Collier Revenue Revenue Recovery Park Limited General Limited General Funds Funds Endowment Obligation Bonds Obligation Bonds ‐$                       63,383,362$            ‐$                                        90,433$                                        10,907$                              7,739                 24,959,145              ‐                                          ‐                                                      ‐                                           ‐                          34,119,822              ‐                                          ‐                                                      ‐                                           315,933             17,845,814              ‐                                          ‐                                                      ‐                                           86,198               2,432,366                 ‐                                          ‐                                                      ‐                                           25,466               1,909,225                 18,239                                1,275                                             841                                     ‐                          2,693,303                 ‐                                          ‐                                                      ‐                                           1,007,642         10,949,972              ‐                                          ‐                                                      ‐                                           1,442,978         158,293,009            18,239                                91,708                                          11,748                                176,838             22,756,477              ‐                                          13                                                   36                                        173,400             26,682,509              ‐                                          ‐                                                      ‐                                           ‐                          13,483,982              51,433                                ‐                                                      ‐                                           ‐                          26,713,810              ‐                                          ‐                                                      ‐                                           ‐                          7,139,407                 ‐                                          ‐                                                      ‐                                           173,170             3,148,589                 ‐                                          ‐                                                      ‐                                           55,198               22,511,322              ‐                                          ‐                                                      ‐                                           ‐                          54,588                      ‐                                          50,662                                          ‐                                           ‐                          10,345                      ‐                                          14,417                                          ‐                                           ‐                          ‐                                 ‐                                          2,570                                             ‐                                           88,126               26,975,732              ‐                                          ‐                                                      ‐                                           666,732             149,476,761            51,433                                67,662                                          36                                        776,246             8,816,248                 (33,194)                              24,046                                          11,712                                ‐                          24,294                      ‐                                          ‐                                                      ‐                                           ‐                          275,225                    ‐                                          ‐                                                      ‐                                           667,437             28,463,613              ‐                                          816                                                 ‐                                           (3,137)                (11,317,363)             ‐                                          (2,652)                                           (91,025)                               664,300             17,445,769              ‐                                          (1,836)                                           (91,025)                               1,440,546         26,262,017              (33,194)                              22,210                                          (79,313)                               1,564,143         161,106,213            1,749,242                          88,438                                          144,866                              3,004,689$       187,368,230$          1,716,048$                        110,648$                                      65,553$                              Special Revenue Funds Debt Service Funds 105 Community Forest Lakes Special Redevelopment Limited General Obligation Other Taxable Note Obligation Bonds Revenue Bonds Debt Service Revenues:   Taxes ‐$ 392,471$ ‐$ 950$    Licenses, permits and impact fees ‐ ‐ ‐ ‐    Intergovernmental ‐ ‐ ‐ ‐    Charges for services ‐ ‐ ‐ ‐    Fines and forfeitures ‐ ‐ ‐ ‐    Interest income 3,446 10,047 90,226 21,292    Special assessments ‐ ‐ ‐ ‐    Miscellaneous 125,000 ‐ ‐ ‐    Total revenues 128,446 402,518 90,226 22,242  Expenditures: Current:   General government ‐ ‐ ‐ ‐    Public safety ‐ ‐ ‐ ‐    Physical environment ‐ ‐ ‐ ‐    Transportation ‐ ‐ ‐ ‐    Economic environment ‐ ‐ ‐ ‐    Human services ‐ ‐ ‐ ‐    Culture and recreation ‐ ‐ ‐ ‐    Debt service:      Principal 628,856 410,000 8,885,000 9,440,000       Interest 250,631 147,475 9,425,569 3,697,146       Fiscal charges 25 2,941 10,278 5,523    Capital outlay ‐ ‐ ‐ ‐      Total expenditures 879,512 560,416 18,320,847 13,142,669                       Excess (deficiency) of revenues         over (under) expenditures (751,066) (157,898) (18,230,621) (13,120,427)                Other financing sources (uses):   Sale of capital assets ‐ ‐ ‐ ‐    Insurance proceeds ‐ ‐ ‐ ‐    Transfers in 905,700 118,211 18,074,421 13,141,600                    Transfers out ‐ (12,658) ‐ (4,371)      Total other financing sources (uses)905,700 105,553 18,074,421 13,137,229                  Net change in fund balances 154,634 (52,345) (156,200) 16,802  Fund balances (deficits) at beginning of year 673,666 945,720 3,543,836 68,081  Fund balances (deficits) at end of year 828,300$ 893,375$ 3,387,636$ 84,883$  See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED  SEPTEMBER 30, 2015 Debt Service Funds 106 Debt Service Funds Emergency  Total County‐Wide County‐Wide Correctional Medical Debt Service Capital Parks Library Facilities Services Funds Improvements Improvements Impact Fees Impact Fees Impact Fees 494,761$                                 ‐$                                 ‐$                                    ‐$                               ‐$                               ‐$                                   ‐                                                 ‐                                   635,835                         869,236                    1,471,250                 344,533                        ‐                                                 12,389                        ‐                                      ‐                                 ‐                                 ‐                                     ‐                                                 ‐                                   60,640                           ‐                                 ‐                                 ‐                                     ‐                                                 ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     127,127                                   90,972                        11,900                           10,284                      15,548                      18,371                          ‐                                                 ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     125,000                                   ‐                                   273,400                         ‐                                 ‐                                 ‐                                     746,888                                   103,361                      981,775                         879,520                    1,486,798                 362,904                        49                                              1,455,798                   ‐                                      ‐                                 ‐                                 ‐                                     ‐                                                 233,253                      ‐                                      ‐                                 5,568                        5,323                             ‐                                                 21,434                        ‐                                      ‐                                 ‐                                 ‐                                     ‐                                                 ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     ‐                                                 ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     ‐                                                 ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     ‐                                                 244                              569,206                         10,933                      ‐                                 ‐                                     19,414,518                             ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     13,535,238                             ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     21,337                                     ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     ‐                                                 3,555,885                   594,639                         94,023                      ‐                                 294,626                        32,971,142                             5,266,614                   1,163,845                      104,956                    5,568                        299,949                        (32,224,254)                            (5,163,253)                  (182,070)                        774,564                    1,481,230                 62,955                          ‐                                                 ‐                                   ‐                                      ‐                                 ‐                                 ‐                                     ‐                                                 ‐                                   32,639                           ‐                                 ‐                                 ‐                                     32,240,748                             18,908,900                 1,050,338                      11,108,925              7,523,200                 5,015,700                     (110,706)                                  (62,866,036)               (333,451)                        (1,161,000)               (1,887,100)               (447,700)                       32,130,042                             (43,957,136)               749,526                         9,947,925                 5,636,100                 4,568,000                     (94,212)                                    (49,120,389)               567,456                         10,722,489              7,117,330                 4,630,955                     5,464,607                                58,701,530                 870,065                         (9,679,146)               (5,286,737)               (2,778,732)                    5,370,395$                             9,581,141$                 1,437,521$                    1,043,343$              1,830,593$              1,852,223$                   Capital Projects Funds 107 Parks Road Water Impact Impact Road Management Districts Districts Construction Revenues:   Taxes ‐$                               ‐$                               ‐$                               13,616,925$                  Licenses, permits and impact fees ‐                                 8,098,940                 11,014,501              ‐                                      Intergovernmental ‐                                 ‐                                 94,641                      7,449,150                      Charges for services ‐                                 ‐                                 ‐                                 105,050                          Fines and forfeitures ‐                                 ‐                                 ‐                                 ‐                                      Interest income 151,262                    168,082                    544,123                    314,340                          Special assessments 323,445                    ‐                                 ‐                                 ‐                                      Miscellaneous 82,631                      ‐                                 27                              723,166                          Total revenues 557,338                    8,267,022                 11,653,292              22,208,631                  Expenditures: Current:   General government ‐                                 ‐                                 ‐                                 ‐                                      Public safety ‐                                 ‐                                 ‐                                 ‐                                      Physical environment 614,358                    ‐                                 ‐                                 ‐                                      Transportation ‐                                 ‐                                 173,975                    9,853,698                      Economic environment ‐                                 ‐                                 ‐                                 ‐                                      Human services ‐                                 ‐                                 ‐                                 ‐                                      Culture and recreation ‐                                 126,907                    ‐                                 ‐                                      Debt service:      Principal ‐                                 ‐                                 ‐                                 ‐                                         Interest ‐                                 ‐                                 ‐                                 ‐                                         Fiscal charges ‐                                 ‐                                 ‐                                 ‐                                      Capital outlay 2,046,569                 3,107,680                 4,610,504                 4,787,005                        Total expenditures 2,660,927                 3,234,587                 4,784,479                 14,640,703                       Excess (deficiency) of revenues         over (under) expenditures (2,103,589)               5,032,435                 6,868,813                 7,567,928                    Other financing sources (uses):   Sale of capital assets ‐                                 ‐                                 ‐                                 ‐                                      Insurance proceeds ‐                                 ‐                                 ‐                                 4,238                              Transfers in 5,757,836                 ‐                                 ‐                                 16,415,276                    Transfers out (4,232,066)               (3,318,320)               ‐                                 (20,139,251)                     Total other financing sources (uses)1,525,770                 (3,318,320)               ‐                                 (3,719,737)                   Net change in fund balances (577,819)                  1,714,115                 6,868,813                 3,848,191                    Fund balances (deficits) at beginning of year 13,842,418              16,108,986              46,343,572              31,686,868                  Fund balances (deficits) at end of year 13,264,599$            17,823,101$            53,212,385$            35,535,059$                See accompanying independent auditor's report Capital Projects Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED  SEPTEMBER 30, 2015 108 Total Total Government Law All Terrain Other Capital Nonmajor Facilities Enforcement Vehicle Capital Projects Governmental Impact Fees Impact Fees Park Projects Funds Funds ‐$                                 ‐$                                 ‐$                             ‐$                               13,616,925$            77,495,048$             2,349,191                   1,260,634                   ‐                               5,186                        26,049,306              51,008,451               ‐                                   ‐                                   ‐                               ‐                                 7,556,180                 41,676,002               ‐                                   ‐                                   ‐                               ‐                                 165,690                    18,011,504               ‐                                   ‐                                   ‐                               ‐                                 ‐                                 2,432,366                  50,543                         36,499                         31,254                    10,445                      1,453,623                 3,508,214                  ‐                                   ‐                                   ‐                               115,116                    438,561                    3,131,864                  ‐                                   ‐                                   ‐                               118                           1,079,342                 12,154,314               2,399,734                   1,297,133                   31,254                    130,865                    50,359,627              209,417,763             6,427                           ‐                                   ‐                               ‐                                 1,462,225                 24,218,751               ‐                                   4,030                           ‐                               ‐                                 248,174                    26,930,683               ‐                                   ‐                                   ‐                               1,267,026                 1,902,818                 15,438,233               ‐                                   ‐                                   ‐                               ‐                                 10,027,673              36,741,483               ‐                                   ‐                                   ‐                               ‐                                 ‐                                 7,139,407                  ‐                                   ‐                                   ‐                               ‐                                 ‐                                 3,148,589                  ‐                                   ‐                                   861                          59,521                      767,672                    23,278,994               ‐                                   ‐                                   ‐                               ‐                                 ‐                                 19,469,106               9,125                           ‐                                   ‐                               ‐                                 9,125                        13,554,708               ‐                                   ‐                                   ‐                               ‐                                 ‐                                 21,337                       3,536,636                   220,732                       ‐                               216,370                    23,064,669              50,040,401               3,552,188                   224,762                       861                          1,542,917                 37,482,356              219,981,692             (1,152,454)                  1,072,371                   30,393                    (1,412,052)               12,877,271              (10,563,929)              ‐                                   ‐                                   ‐                               ‐                                 ‐                                 24,294                       ‐                                   ‐                                   ‐                               ‐                                 36,877                      312,102                     33,299,100                 23,682,000                 ‐                               1,703,087                 124,464,362            185,168,723             (4,382,700)                  (2,656,600)                  ‐                               (3,948)                       (101,428,172)           (112,856,241)            28,916,400                 21,025,400                 ‐                               1,699,139                 23,073,067              72,648,878               27,763,946                 22,097,771                 30,393                    287,087                    35,950,338              62,084,949               (25,333,781)                (18,665,283)                2,976,012               762,139                    109,547,911            277,867,973             2,430,165$                 3,432,488$                 3,006,405$             1,049,226$              145,498,249$          339,952,922$           Capital Projects Funds 109 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$ ‐$‐$33,001,100$     32,673,287$        (327,813)$              Licenses, permits and impact fees  345,000 550,175 205,175              196,000            247,549                51,549                  Intergovernmental  1,561,100              1,650,210              89,110 ‐13,201 13,201                  Charges for services 228,000 299,441 71,441 3,433,700         3,190,972            (242,728)               Fines and forfeitures ‐ ‐‐407,000            376,800                (30,200)                 Interest income 3,000 29,272 26,272 50,000              135,736                85,736                  Special assessments ‐ ‐‐‐‐ ‐    Miscellaneous  35,400 80,406 45,006 193,500            201,101                7,601      Total revenues 2,172,500              2,609,504              437,004              37,281,300      36,838,646          (442,654)             Expenditures:     Current:       General government ‐ ‐‐6,541,450         5,657,745            883,705                  Public safety ‐ ‐‐4,248,800         4,148,913            99,887                    Physical environment ‐ ‐‐816,300            653,565                162,735                  Transportation 16,217,551            14,994,231            1,223,320          8,160,470         7,170,994            989,476                  Economic environment ‐ ‐‐113,200            98,789 14,411                    Human services ‐ ‐‐‐‐ ‐      Culture and recreation ‐ ‐‐12,052,351      11,079,962          972,389                Debt service ‐ ‐‐‐‐ ‐    Capital outlay 2,249,443              1,957,278              292,165              478,301            436,928                41,373                     Total expenditures 18,466,994            16,951,509            1,515,485          32,410,872      29,246,896          3,163,976                  Excess (deficit) of revenues              over (under) expenditures   (16,294,494)           (14,342,005)           1,952,489          4,870,428         7,591,750            2,721,322           Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds 105,000 240,016 135,016              30,000              30,019 19    Transfers in 16,213,600            16,213,600            ‐997,400            1,066,714            69,314                  Transfers out (1,205,500)             (1,205,500)              ‐(8,273,063)       (8,179,844)           93,219                    Total other financing sources (uses) 15,113,100            15,248,116            135,016              (7,245,663)       (7,083,111)           162,552                    Net change in fund balances (1,181,394)             906,111 2,087,505          (2,375,235)       508,639                2,883,874           Fund balances at beginning of year 1,494,394              1,494,394              ‐5,762,834         5,762,834            ‐  Fund balances (deficits) at end of year 313,000$               2,400,505$             2,087,505$         3,387,599$       6,271,473$          2,883,874$         See accompanying independent auditor's report    Reconciliation:  906,111$                508,639$              5,918 26,760  ‐(1,120)  (523,716)‐  ‐‐  ‐528,901                 ‐‐  ‐‐  388,313$                1,063,180$                    Ad valorem refunds not budgeted           Advances budgeted as transfers           Unbudgeted funds       Net change in fund balance, GAAP basis       Net change in fund balance, budgetary basis  COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 (Budgetary Basis) Road Districts Unincorporated Area MSTD          Change in inventory held for resale           Advances reclassified to transfers           Change in inventory           Change in fair value of investments  (Budgetary Basis) 110 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            1,893,100$             1,829,677$             (63,423)$                  14,990,200               24,152,882             9,162,682              600                         800                         200                           ‐                                  607                         607                          ‐                               ‐                               ‐                                 2,567,200                 2,994,896               427,696                  383,000                 354,247                 (28,753)                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 86,700                       264,516                  177,816                  9,000                      33,482                   24,482                      ‐                                   ‐                                 ‐                              2,794,400              2,693,303              (101,097)                  500                            206                         (294)                         ‐                              3,625                      3,625                        17,644,600               27,413,107             9,768,507              5,080,100              4,915,134              (164,966)                  6,825,348                 5,286,286               1,539,062               ‐                               ‐                               ‐                                 15,191,582               11,734,370             3,457,212               ‐                               ‐                               ‐                                 1,044,700                 852,254                  192,446                  3,294,373              2,882,500              411,873                    ‐                                   ‐                                 ‐                              1,965,600              1,930,047              35,553                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 722,047                     631,916                  90,131                    351,409                 129,957                 221,452                    23,783,677               18,504,826             5,278,851              5,611,382              4,942,504              668,878                    (6,139,077)                8,908,281               15,047,358            (531,282)                (27,370)                  503,912                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                  12,054                    12,054                    ‐                              4,344                      4,344                        ‐                                  ‐                                ‐                              ‐                              48                           48                             827,800                     827,800                  ‐                              ‐                              41,783                   41,783                      (223,573)                   (223,573)                 ‐                              (308,100)                (270,320)                37,780                      604,227                     616,281                  12,054                    (308,100)                (224,145)                83,955                      (5,534,850)                9,524,562               15,059,412            (839,382)                (251,515)                587,867                    18,790,750               18,790,750             ‐                              2,154,011              2,154,011              ‐                                 13,255,900$             28,315,312$          15,059,412$          1,314,629$             1,902,496$             587,867$                 9,524,562$             (251,515)$                56,832                    5,915                       ‐                                (54)                           ‐                                17,559                    ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               9,581,394$             (228,095)$                (Budgetary Basis) Community Development Water Management and Pollution Control (Budgetary Basis) 111 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$ ‐$‐$3,570,500$       3,452,115$          (118,385)$              Licenses, permits and impact fees  ‐ ‐‐‐‐ ‐    Intergovernmental  62,979,613            26,362,104            (36,617,509)       ‐‐ ‐    Charges for services 294,265 1,801 (292,464)            227,900            220,372                (7,528)    Fines and forfeitures ‐ ‐‐‐‐ ‐    Interest income 2,057 30,248 28,191 25,500              136,000                110,500                Special assessments ‐ ‐‐‐‐ ‐    Miscellaneous  658,066 612,512 (45,554) 312,100            308,613                (3,487)      Total revenues 63,934,001            27,006,665            (36,927,336)       4,136,000         4,117,100            (18,900)               Expenditures:     Current:       General government 3,150,863              1,684,929              1,465,934          ‐‐ ‐      Public safety 3,941,607              1,374,767              2,566,840          ‐‐ ‐      Physical environment 581,390 564,033 17,357 6,598,759         3,157,059            3,441,700               Transportation 2,061,166              181,078 1,880,088          2,594,754         988,318                1,606,436               Economic environment 17,888,239            6,261,948              11,626,291         ‐‐ ‐      Human services 5,257,801              2,962,443              2,295,358          ‐‐ ‐      Culture and recreation 810,541 556,769 253,772              923,146            814,067                109,079                Debt service ‐ ‐‐‐‐ ‐    Capital outlay 47,785,162            20,335,991            27,449,171        9,179,224         1,302,801            7,876,423                Total expenditures 81,476,769            33,921,958            47,554,811        19,295,883      6,262,245            13,033,638                Excess (deficit) of revenues              over (under) expenditures   (17,542,768)           (6,915,293)             10,627,475        (15,159,883)     (2,145,145)           13,014,738         Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds ‐ ‐‐‐3,883 3,883    Transfers in 13,745,524            6,303,059              (7,442,465)         653,200            425,698                (227,502)               Transfers out (292,819) (3,202) 289,617              (716,554)           (692,558)              23,996                    Total other financing sources (uses) 13,452,705            6,299,857              (7,152,848)         (63,354)             (262,977)              (199,623)                   Net change in fund balances (4,090,063)             (615,436) 3,474,627          (15,223,237)     (2,408,122)           12,815,115         Fund balances at beginning of year 4,407,659              4,407,659              ‐16,085,137      16,085,137          ‐  Fund balances (deficits) at end of year 317,596$               3,792,223$             3,474,627$         861,900$           13,677,015$        12,815,115$       See accompanying independent auditor's report    Reconciliation:  (615,436)$               (2,408,122)$          6,478 28,328  ‐(71)  ‐‐  (130,670)‐  ‐‐  ‐‐  204,456 ‐  (535,172)$               (2,379,865)$               Net change in fund balance, budgetary basis           Change in fair value of investments           Ad valorem refunds not budgeted           Advances budgeted as transfers           Unbudgeted funds       Net change in fund balance, GAAP basis  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) Improvement Districts MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS COLLIER COUNTY, FLORIDA (Budgetary Basis)          Change in inventory held for resale           Advances reclassified to transfers           Change in inventory  Grants and Shared Revenues (Budgetary Basis) 112 Budget Actual Variance Budget Actual Variance 2,710,900$               2,623,789$             (87,111)$                1,301,100$             1,265,060$             (36,040)$                  ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  3,254                      3,254                      ‐                              ‐                              ‐                                 4,000                         8,708                      4,708                      ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 2,300                         8,547                      6,247                      2,500                      12,081                   9,581                        ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 5,075                         6,377                      1,302                      ‐                              10,177                   10,177                      2,722,275                 2,650,675               (71,600)                  1,303,600              1,287,318              (16,282)                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 3,279,837                 3,113,548               166,289                   ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              1,026,689              925,384                 101,305                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 70,000                       64,933                    5,067                       ‐                               ‐                               ‐                                 66,313                       64,994                    1,319                      10,911                    ‐                              10,911                      3,416,150                 3,243,475               172,675                  1,037,600              925,384                 112,216                    (693,875)                   (592,800)                 101,075                  266,000                 361,934                 95,934                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 5,166                         7,896                      2,730                       ‐                               ‐                               ‐                                 1,259                         1,259                       ‐                               ‐                               ‐                               ‐                                 543,465                     551,513                  8,048                       ‐                              10,599                   10,599                      (91,515)                     (82,151)                   9,364                      (97,100)                  (78,419)                  18,681                      458,375                     478,517                  20,142                    (97,100)                  (67,820)                  29,280                      (235,500)                   (114,283)                 121,217                  168,900                 294,114                 125,214                    357,600                     357,600                  ‐                              804,700                 804,700                 ‐                                 122,100$                  243,317$                121,217$               973,600$                1,098,814$             125,214$                 (114,283)$              294,114$                 1,689                      2,440                       (301)                        (11)                           ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               (112,895)$              296,543$                 Lighting Districts (Budgetary Basis)Fire Control Districts (Budgetary Basis) 113 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$ ‐$‐$17,048,600$     21,188,191$        4,139,591$            Licenses, permits and impact fees  ‐ ‐‐‐‐                            ‐    Intergovernmental  1,825,500              1,721,811              (103,689)             ‐2,529,126            2,529,126             Charges for services ‐ ‐‐‐14,615 14,615                  Fines and forfeitures ‐ ‐‐‐‐ ‐    Interest income 16,600 36,819 20,219 158,700            422,071                263,371                Special assessments ‐ ‐‐‐‐ ‐    Miscellaneous  ‐ ‐‐165,000            7,971,614            7,806,614               Total revenues 1,842,100              1,758,630              (83,470) 17,372,300      32,125,617          14,753,317         Expenditures:     Current:       General government ‐ ‐‐‐‐ ‐      Public safety 2,140,437              1,670,846              469,591               ‐‐ ‐      Physical environment ‐ ‐‐4,255,849         4,198,681            57,168                    Transportation ‐ ‐‐‐‐ ‐      Economic environment ‐ ‐‐‐‐ ‐      Human services ‐ ‐‐‐‐ ‐      Culture and recreation ‐ ‐‐13,275,338      9,817,517            3,457,821             Debt service ‐ ‐‐‐‐ ‐    Capital outlay 1,086,000              1,018,209              67,791 9,301,170         499,507                8,801,663                Total expenditures 3,226,437              2,689,055              537,382              26,832,357      14,515,705          12,316,652                Excess (deficit) of revenues              over (under) expenditures   (1,384,337)             (930,425) 453,912              (9,460,057)       17,609,912          27,069,969         Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds ‐ ‐‐‐‐ ‐    Transfers in ‐ ‐‐200,000            305,236                105,236                Transfers out ‐ ‐‐(888,500)           (875,764)              12,736                    Total other financing sources (uses)‐ ‐‐(688,500)           (570,528)              117,972                    Net change in fund balances (1,384,337)             (930,425) 453,912              (10,148,557)     17,039,384          27,187,941         Fund balances at beginning of year 4,107,637              4,107,637              ‐41,936,388      41,936,388          ‐  Fund balances (deficits) at end of year 2,723,300$            3,177,212$             453,912$            31,787,831$     58,975,772$        27,187,941$       See accompanying independent auditor's report    Reconciliation:  (930,425)$               17,039,384$         7,814 88,957  ‐‐  ‐‐  ‐‐  ‐‐  ‐‐  ‐‐  (922,611)$               17,128,341$                  Unbudgeted funds  COLLIER COUNTY, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015      Net change in fund balance, GAAP basis           Change in inventory held for resale  (Budgetary Basis)911 Enhancement Fee (Budgetary Basis)      Net change in fund balance, budgetary basis           Change in fair value of investments           Ad valorem refunds not budgeted           Advances budgeted as transfers  MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS BUDGET AND ACTUAL (BUDGETARY BASIS) COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Tourist Development          Advances reclassified to transfers           Change in inventory  114 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            ‐$                             ‐$                             ‐$                              ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 4,630,224                 525,997                  (4,104,227)              ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              436,600                 402,401                 (34,199)                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 31,759                       21,737                    (10,022)                  500                         1,390                      890                           ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 429,191                     360,248                  (68,943)                  128,600                 134,982                 6,382                        5,091,174                 907,982                  (4,183,192)             565,700                 538,773                 (26,927)                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              1,230,700              1,193,755              36,945                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 5,091,563                 608,000                  4,483,563               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 5,091,563                 608,000                  4,483,563              1,230,700              1,193,755              36,945                      (389)                           299,982                  300,371                  (665,000)                (654,982)                10,018                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              632,900                 632,900                 ‐                                 ‐                                  (63,143)                   (63,143)                  ‐                              ‐                              ‐                                 ‐                                  (63,143)                   (63,143)                  632,900                 632,900                 ‐                                 (389)                           236,839                  237,228                  (32,100)                  (22,082)                  10,018                      706                            706                         ‐                              ‐                              ‐                              ‐                                 317$                          237,545$                237,228$               (32,100)$                 (22,082)$                 10,018$                    236,839$                (22,082)$                  4,514                      255                          ‐                                ‐                               ‐                                ‐                               (40,000)                   ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               201,353$                (21,827)$                  Partnership (Budgetary Basis)(Budgetary Basis) 800 MHZ IRCP FundState Housing Initiativeship 115 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$                            ‐$                             ‐$                         ‐$                       ‐$                          ‐$                            Licenses, permits and impact fees  ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Intergovernmental  ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Charges for services 160,000                  175,280                 15,280                 ‐                         ‐                             ‐                             Fines and forfeitures 974,000                  952,852                 (21,148)               ‐                        68,048                  68,048                  Interest income 500                         2,763                      2,263                  ‐                        3,357                    3,357                    Special assessments ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Miscellaneous  ‐                               5,798                      5,798                  ‐                        ‐                            ‐                               Total revenues 1,134,500              1,136,693              2,193                   ‐                        71,405                  71,405                Expenditures:     Current:       General government 892,800                  866,444                 26,356                 ‐                         ‐                             ‐                               Public safety 1,586,500              1,486,259              100,241              95,247              67,500                  27,747                    Physical environment ‐                               ‐                              ‐                          ‐                        ‐                             ‐                               Transportation ‐                               ‐                              ‐                           ‐                         ‐                             ‐                               Economic environment ‐                               ‐                              ‐                           ‐                         ‐                             ‐                               Human services ‐                               ‐                              ‐                          ‐                        ‐                            ‐                               Culture and recreation ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Debt service ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Capital outlay 3,000                      ‐                              3,000                  ‐                        ‐                            ‐                                Total expenditures 2,482,300              2,352,703              129,597              95,247              67,500                  27,747                       Excess (deficit) of revenues              over (under) expenditures   (1,347,800)             (1,216,010)             131,790              (95,247)             3,905                    99,152                Other financing sources (uses):     Bonds issued ‐                                ‐                               ‐                           ‐                         ‐                             ‐                             Premiums on bonds issued ‐                               ‐                              ‐                          ‐                        ‐                             ‐                             Payment to refunding bond escrow ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Sale of capital assets ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Insurance proceeds ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Transfers in 1,266,100              1,269,237              3,137                   ‐                         ‐                             ‐                             Transfers out (20,600)                  (24,537)                  (3,937)                 (270,573)           (63,725)                206,848                  Total other financing sources (uses) 1,245,500              1,244,700              (800)                    (270,573)           (63,725)                206,848                    Net change in fund balances (102,300)                28,690                   130,990              (365,820)           (59,820)                306,000              Fund balances at beginning of year 137,000                  137,000                 ‐                          383,700            383,700                ‐                           Fund balances (deficits) at end of year 34,700$                  165,690$                130,990$            17,880$             323,880$             306,000$            See accompanying independent auditor's report    Reconciliation:  28,690$                  (59,820)$               599                         713                        ‐                               ‐                             ‐                               ‐                             ‐                               ‐                             ‐                               ‐                             ‐                               ‐                             ‐                               ‐                             29,289$                  (59,107)$               COLLIER COUNTY, FLORIDA          Ad valorem refunds not budgeted  COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS Confiscated Property (Budgetary Basis)      Net change in fund balance, GAAP basis  (Budgetary Basis)      Net change in fund balance, budgetary basis           Change in fair value of investments           Change in inventory held for resale           Advances budgeted as transfers           Unbudgeted funds  State Court Administration FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015          Advances reclassified to transfers           Change in inventory  116 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            170,000$                338,688$                168,688$                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              100,000                 100,000                 ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 3,700                         9,312                      5,612                      1,500                      10,020                   8,520                        ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 16,500                       ‐                                (16,500)                  ‐                              ‐                              ‐                                 20,200                       9,312                      (10,888)                  271,500                 448,708                 177,208                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              443,535                 397,866                 45,669                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 274,700                     187,769                  86,931                     ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 274,700                     187,769                  86,931                    443,535                 397,866                 45,669                      (254,500)                   (178,457)                 76,043                    (172,035)                50,842                   222,877                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              50,000                   50,000                    ‐                                 (400)                           (176)                        224                          ‐                               ‐                               ‐                                 (400)                           (176)                        224                         50,000                   50,000                    ‐                                 (254,900)                   (178,633)                 76,267                    (122,035)                100,842                 222,877                    891,300                     891,300                  ‐                              ‐                              ‐                              ‐                                 636,400$                  712,667$                76,267$                  (122,035)$               100,842$                222,877$                 (178,633)$              100,842$                 1,975                      2,128                       ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               (176,658)$              102,970$                 Utility FeeGAC Land Sales, (Budgetary Basis)Roads and Canals (Budgetary Basis) 117 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$ 12,555$12,555$               ‐$‐$ ‐$    Licenses, permits and impact fees  ‐ ‐‐‐‐ ‐    Intergovernmental  ‐ ‐‐‐‐ ‐    Charges for services 9,000 432 (8,568) 750,000            850,946                100,946                Fines and forfeitures ‐ ‐‐‐‐ ‐    Interest income 148,800 294,943 146,143              3,100 9,322 6,222    Special assessments ‐ ‐‐‐‐ ‐    Miscellaneous  27,200 89,056 61,856 ‐‐ ‐      Total revenues 185,000 396,986 211,986              753,100            860,268                107,168              Expenditures:     Current:       General government ‐ ‐‐775,380            699,603                75,777                    Public safety ‐ ‐‐38,300              32,248 6,052      Physical environment 964,108 769,821 194,287              ‐‐ ‐      Transportation ‐ ‐‐‐‐ ‐      Economic environment ‐ ‐‐‐‐ ‐      Human services ‐ ‐‐21,700              12,976 8,724      Culture and recreation ‐ ‐‐‐‐ ‐    Debt service ‐ ‐‐‐‐ ‐    Capital outlay 779,169 296,561 482,608              79,520              32,279 47,241                     Total expenditures 1,743,277              1,066,382              676,895              914,900            777,106                137,794                     Excess (deficit) of revenues              over (under) expenditures   (1,558,277)             (669,396) 888,881              (161,800)           83,162 244,962              Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds ‐ ‐‐‐‐ ‐    Transfers in 793,100 91,229 (701,871)            ‐‐ ‐    Transfers out (15,000) (917) 14,083 ‐‐ ‐      Total other financing sources (uses) 778,100 90,312 (687,788)            ‐‐ ‐        Net change in fund balances (780,177) (579,084) 201,093              (161,800)           83,162 244,962              Fund balances at beginning of year 32,288,977            32,288,977            ‐855,100            855,100                ‐  Fund balances (deficits) at end of year 31,508,800$          31,709,893$           201,093$            693,300$           938,262$             244,962$            See accompanying independent auditor's report    Reconciliation:  (579,084)$               83,162$                 62,651 1,957  (70)‐  ‐‐  ‐‐  ‐‐  ‐‐  ‐‐  (516,503)$               85,119$                 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES      Net change in fund balance, budgetary basis           Change in fair value of investments           Ad valorem refunds not budgeted           Advances budgeted as transfers  BUDGET AND ACTUAL (BUDGETARY BASIS) COLLIER COUNTY, FLORIDA          Change in inventory held for resale  (Budgetary Basis) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS      Net change in fund balance, GAAP basis  (Budgetary Basis)          Unbudgeted funds  Conservation Collier          Advances reclassified to transfers           Change in inventory  Court Information Technology 118 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            ‐$                             ‐$                             ‐$                              ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 261,459                     361,895                  100,436                  ‐                              ‐                              ‐                                 6,814,553                 6,484,209               (330,344)                14,000                   32,301                   18,301                      ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 8,500                         10,644                    2,144                       ‐                              1,037                      1,037                        ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 7,084,512                 6,856,748               (227,764)                14,000                   33,338                   19,338                      7,084,512                 6,856,748               227,764                  ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              50,400                   25,638                   24,762                      ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 7,084,512                 6,856,748               227,764                  50,400                   25,638                   24,762                      ‐                                   ‐                                 ‐                              (36,400)                  7,700                      44,100                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              (36,400)                  7,700                      44,100                      ‐                                   ‐                                 ‐                              70,400                   70,400                    ‐                                 ‐$                                ‐$                            ‐$                            34,000$                  78,100$                  44,100$                    ‐$                            7,700$                     ‐                                218                          ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐$                            7,918$                     Court Services University Extension (Budgetary Basis) 119 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$ ‐$‐$‐$‐$ ‐$    Licenses, permits and impact fees  ‐ ‐‐‐‐ ‐    Intergovernmental  ‐ ‐‐‐‐ ‐    Charges for services ‐ ‐‐‐‐ ‐    Fines and forfeitures 1,090,000              891,401 (198,599)            ‐‐ ‐    Interest income 15,000 56,353 41,353 1,000 1,527 527    Special assessments ‐ ‐‐‐‐ ‐    Miscellaneous  ‐ ‐‐‐‐ ‐      Total revenues 1,105,000              947,754 (157,246)            1,000 1,527 527  Expenditures:     Current:       General government 616,200 167,270 448,930              ‐‐ ‐      Public safety ‐ ‐‐‐‐ ‐      Physical environment ‐ ‐‐‐‐ ‐      Transportation ‐ ‐‐‐‐ ‐      Economic environment ‐ ‐‐109,000            ‐ 109,000                  Human services ‐ ‐‐‐‐ ‐      Culture and recreation ‐ ‐‐‐‐ ‐    Debt service ‐ ‐‐‐‐ ‐    Capital outlay 2,467,349              64,233 2,403,116          ‐‐ ‐       Total expenditures 3,083,549              231,503 2,852,046          109,000            ‐ 109,000                     Excess (deficit) of revenues              over (under) expenditures   (1,978,549)             716,251 2,694,800          (108,000)           1,527 109,527              Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds ‐ ‐‐‐‐ ‐    Transfers in ‐ ‐‐‐‐ ‐    Transfers out ‐ ‐‐‐‐ ‐      Total other financing sources (uses)‐ ‐‐‐‐ ‐        Net change in fund balances (1,978,549)             716,251 2,694,800          (108,000)           1,527 109,527              Fund balances at beginning of year 6,063,383              6,063,383              ‐‐‐ ‐  Fund balances (deficits) at end of year 4,084,834$            6,779,634$             2,694,800$         (108,000)$         1,527$ 109,527$            See accompanying independent auditor's report    Reconciliation:  716,251$                1,527$  11,872 286  ‐‐  ‐‐  ‐‐  ‐‐  ‐‐  ‐‐  728,123$                1,813$       Net change in fund balance, budgetary basis  COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Affordable Housing (Budgetary Basis) BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COLLIER COUNTY, FLORIDA          Change in fair value of investments  Court Facilities Fee          Advances reclassified to transfers           Change in inventory  (Budgetary Basis)          Ad valorem refunds not budgeted           Advances budgeted as transfers           Unbudgeted funds       Net change in fund balance, GAAP basis           Change in inventory held for resale  120 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            ‐$                             ‐$                             ‐$                              ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 1,365,000                 1,463,188               98,188                    90,000                   97,950                   7,950                        ‐                                   ‐                                 ‐                              60,000                   57,067                   (2,933)                       8,300                         7,650                      (650)                        8,700                      16,935                   8,235                        ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 1,373,300                 1,470,838               97,538                    158,700                 171,952                 13,252                      2,491,900                 1,298,620               1,193,280              ‐                              ‐                               ‐                                 ‐                                   ‐                                 ‐                              587,500                 259,366                 328,134                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 410,200                     ‐                                410,200                  12,500                    ‐                              12,500                      2,902,100                 1,298,620               1,603,480              600,000                 259,366                 340,634                    (1,528,800)                172,218                  1,701,018              (441,300)                (87,414)                  353,886                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              (135,000)                (79,298)                  55,702                      ‐                                   ‐                                 ‐                              (135,000)                (79,298)                  55,702                      (1,528,800)                172,218                  1,701,018              (576,300)                (166,712)                409,588                    4,315,031                 4,315,031                ‐                              1,786,100              1,786,100              ‐                                 2,786,231$               4,487,249$             1,701,018$            1,209,800$             1,619,388$             409,588$                 172,218$                (166,712)$                ‐                                3,586                       ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                150,756                  172,218$                (12,370)$                  Revenue Funds (Budgetary Basis) Other Public Safety Other Court Special Revenue Funds 121 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$                            ‐$                             ‐$                         ‐$                       ‐$                          ‐$                            Licenses, permits and impact fees  4,900                      7,739                      2,839                  ‐                        ‐                            ‐                             Intergovernmental  ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Charges for services 348,700                  315,933                 (32,767)               ‐                         ‐                             ‐                             Fines and forfeitures 85,000                    86,198                   1,198                  ‐                        ‐                            ‐                             Interest income 6,500                      21,226                   14,726                8,600                15,040                  6,440                    Special assessments ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Miscellaneous  795,778                  1,007,642              211,864              ‐                        ‐                            ‐                               Total revenues 1,240,878              1,438,738              197,860              8,600                15,040                  6,440                  Expenditures:     Current:       General government 190,300                  176,838                 13,462                 ‐                         ‐                             ‐                               Public safety 547,200                  173,400                 373,800              ‐                        ‐                            ‐                               Physical environment ‐                               ‐                              ‐                          69,700              51,433                  18,267                    Transportation ‐                               ‐                              ‐                          ‐                        ‐                            ‐                               Economic environment ‐                               ‐                              ‐                          ‐                        ‐                            ‐                               Human services 189,900                  173,170                 16,730                 ‐                         ‐                             ‐                               Culture and recreation 133,078                  55,198                   77,880                 ‐                         ‐                             ‐                             Debt service ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Capital outlay 1,654,400              88,126                   1,566,274          ‐                         ‐                             ‐                                Total expenditures 2,714,878              666,732                 2,048,146          69,700              51,433                  18,267                       Excess (deficit) of revenues              over (under) expenditures   (1,474,000)             772,006                 2,246,006          (61,100)             (36,393)                24,707                Other financing sources (uses):     Bonds issued ‐                                ‐                               ‐                           ‐                         ‐                             ‐                             Premiums on bonds issued ‐                               ‐                              ‐                          ‐                        ‐                             ‐                             Payment to refunding bond escrow ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Sale of capital assets ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Insurance proceeds ‐                               ‐                              ‐                          ‐                        ‐                            ‐                             Transfers in 665,100                  667,437                 2,337                   ‐                         ‐                             ‐                             Transfers out ‐                               (3,137)                    (3,137)                 ‐                        ‐                            ‐                               Total other financing sources (uses) 665,100                  664,300                 (800)                     ‐                         ‐                             ‐                                 Net change in fund balances (808,900)                1,436,306              2,245,206          (61,100)             (36,393)                24,707                Fund balances at beginning of year 1,380,700              1,380,700              ‐                          1,727,700         1,727,700            ‐                           Fund balances (deficits) at end of year 571,800$               2,817,006$             2,245,206$         1,666,600$       1,691,307$          24,707$              See accompanying independent auditor's report    Reconciliation:  1,436,306$             (36,393)$               4,240                      3,199                     ‐                              ‐                             ‐                              ‐                             ‐                              ‐                             ‐                              ‐                             ‐                              ‐                             ‐                              ‐                             1,440,546$             (33,194)$                    Net change in fund balance, budgetary basis  COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Endowment (Budgetary Basis) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Revenue Funds (Budgetary Basis)          Change in fair value of investments           Ad valorem refunds not budgeted  BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS          Change in inventory held for resale           Advances reclassified to transfers  Resource Recovery ParkOther Special          Change in inventory           Advances budgeted as transfers           Unbudgeted funds       Net change in fund balance, GAAP basis  COLLIER COUNTY, FLORIDA 122 Budget Actual Variance Budget Actual Variance 93,700$                     90,433$                  (3,267)$                  ‐$                             10,907$                  10,907$                    ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  1,059                      1,059                      400                         683                         283                           ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 93,700                       91,492                    (2,208)                     400                         11,590                   11,190                      ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 71,000                       67,649                    3,351                       ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 71,000                       67,649                    3,351                       ‐                               ‐                               ‐                                 22,700                       23,843                    1,143                      400                         11,590                   11,190                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                              ‐                              ‐                                 ‐                                  816                         816                         ‐                              ‐                              ‐                                 (4,400)                        (2,652)                     1,748                      (91,200)                  (91,025)                  175                           (4,400)                        (1,836)                     2,564                      (91,200)                  (91,025)                  175                           18,300                       22,007                    3,707                      (90,800)                  (79,435)                  11,365                      84,000                       84,000                    ‐                              90,800                   90,800                   ‐                                 102,300$                  106,007$                3,707$                    ‐$                             11,365$                  11,365$                    22,007$                  (79,435)$                  216                         158                          (13)                          (36)                           ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               22,210$                  (79,313)$                  Conservation Collier Limited General Obligation Bonds (Budgetary Basis) Radio Road East Limited General Obligation Bonds (Budgetary Basis) 123 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$ ‐$‐$405,900$           392,471$             (13,429)$                Licenses, permits and impact fees  ‐ ‐‐‐‐ ‐    Intergovernmental  ‐ ‐‐‐‐ ‐    Charges for services ‐ ‐‐‐‐ ‐    Fines and forfeitures ‐ ‐‐‐‐ ‐    Interest income 2,500 2,856 356 1,000 8,250 7,250    Special assessments ‐ ‐‐‐‐ ‐    Miscellaneous  ‐ 125,000 125,000              ‐‐ ‐      Total revenues 2,500 127,856 125,356              406,900            400,721                (6,179)  Expenditures:     Current:       General government ‐ ‐‐‐‐ ‐      Public safety ‐ ‐‐‐‐ ‐      Physical environment ‐ ‐‐‐‐ ‐      Transportation ‐ ‐‐‐‐ ‐      Economic environment ‐ ‐‐‐‐ ‐      Human services ‐ ‐‐‐‐ ‐      Culture and recreation ‐ ‐‐‐‐ ‐    Debt service 955,000 879,512 75,488 562,000            560,416                1,584    Capital outlay ‐ ‐‐‐‐ ‐       Total expenditures 955,000 879,512 75,488 562,000            560,416                1,584         Excess (deficit) of revenues              over (under) expenditures   (952,500) (751,656) 200,844              (155,100)           (159,695)              (4,595)  Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds ‐ ‐‐‐‐ ‐    Transfers in 1,030,700              905,700 (125,000)            114,200            118,211                4,011    Transfers out ‐ ‐‐(16,800)             (12,658) 4,142      Total other financing sources (uses) 1,030,700              905,700 (125,000)            97,400              105,553                8,153        Net change in fund balances 78,200 154,044 75,844 (57,700)             (54,142) 3,558  Fund balances at beginning of year 627,400 627,400 ‐933,200            933,200                ‐  Fund balances (deficits) at end of year 705,600$               781,444$                75,844$               875,500$           879,058$             3,558$                See accompanying independent auditor's report    Reconciliation:  154,044$                (54,142)$               590 1,797  ‐‐  ‐‐  ‐‐  ‐‐  ‐‐  ‐‐      Net change in fund balance, GAAP basis 154,634$                (52,345)$               Taxable Note (Budgetary Basis) Community Redevelopment  COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Forest Lakes Limited General BUDGET AND ACTUAL (BUDGETARY BASIS)          Change in inventory held for resale           Advances reclassified to transfers  Obligation Bonds (Budgetary Basis)          Advances budgeted as transfers           Unbudgeted funds  MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS          Change in inventory       Net change in fund balance, budgetary basis           Change in fair value of investments           Ad valorem refunds not budgeted  124 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            1,500$                    950$                        (550)$                        ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 6,300                         84,660                    78,360                    500                         17,772                   17,272                      ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 6,300                         84,660                    78,360                    2,000                      18,722                   16,722                      ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 18,342,700               18,320,847             21,853                    13,243,000            13,142,669            100,331                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 18,342,700               18,320,847             21,853                    13,243,000            13,142,669            100,331                    (18,336,400)              (18,236,187)           100,213                  (13,241,000)           (13,123,947)           117,053                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 18,074,700               18,074,421             (279)                        13,141,600            13,141,600            ‐                                 ‐                                  ‐                                ‐                              (6,800)                    (4,371)                    2,429                        18,074,700               18,074,421             (279)                        13,134,800            13,137,229            2,429                        (261,700)                   (161,766)                 99,934                    (106,200)                13,282                   119,482                    3,486,600                 3,486,600               ‐                              106,300                 106,300                 ‐                                 3,224,900$               3,324,834$             99,934$                  100$                        119,582$                119,482$                 (161,766)$              13,282$                   5,566                      3,520                       ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               (156,200)$              16,802$                   Other Debt Service (Budgetary Basis) Special Obligation Revenue Bonds (Budgetary Basis) 125 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$ ‐$‐$‐$‐$ ‐$    Licenses, permits and impact fees  ‐ ‐‐412,000            635,835                223,835                Intergovernmental   ‐ 12,389 12,389 ‐‐ ‐    Charges for services ‐ ‐‐62,000              60,640 (1,360)    Fines and forfeitures ‐ ‐‐‐‐ ‐    Interest income 25,000 75,789 50,789 25,000              9,878 (15,122)                 Special assessments ‐ ‐‐‐‐ ‐    Miscellaneous  ‐ ‐‐860,000            273,400                (586,600)                 Total revenues 25,000 88,178 63,178 1,359,000         979,753                (379,247)             Expenditures:     Current:       General government 1,772,012              1,455,798              316,214              ‐‐ ‐      Public safety 547,609 233,253 314,356              ‐‐ ‐      Physical environment 82,202 21,434 60,768 ‐‐ ‐      Transportation ‐ ‐‐‐‐ ‐      Economic environment ‐ ‐‐‐‐ ‐      Human services ‐ ‐‐‐‐ ‐      Culture and recreation 1,000 244 756 680,434            569,206                111,228                Debt service ‐ ‐‐‐‐ ‐    Capital outlay 13,464,778            4,906,220              8,558,558          1,766,222         594,639                1,171,583                Total expenditures 15,867,601            6,616,949              9,250,652          2,446,656         1,163,845            1,282,811                  Excess (deficit) of revenues              over (under) expenditures   (15,842,601)           (6,528,771)             9,313,830          (1,087,656)       (184,092)              903,564              Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds ‐ ‐‐‐32,639 32,639                  Transfers in 18,908,900            18,908,900            ‐1,012,810         1,050,338            37,528                  Transfers out (11,720,300)           (11,724,001)           (3,701) (333,380)           (333,451)              (71)      Total other financing sources (uses) 7,188,600              7,184,899              (3,701) 679,430            749,526                70,096                      Net change in fund balances (8,654,001)             656,128 9,310,129          (408,226)           565,434                973,660              Fund balances at beginning of year 9,215,348              9,215,348              ‐741,313            741,313                ‐  Fund balances (deficits) at end of year 561,347$               9,871,476$             9,310,129$         333,087$           1,306,747$          973,660$            See accompanying independent auditor's report    Reconciliation:  656,128$                565,434$              15,183 2,022  ‐‐  ‐‐  ‐‐  ‐‐  (49,791,700)           ‐  ‐‐  (49,120,389)$         567,456$                       Ad valorem refunds not budgeted           Advances budgeted as transfers           Unbudgeted funds       Net change in fund balance, GAAP basis  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS (Budgetary Basis) County‐Wide Capital Improvememts (Budgetary Basis) COLLIER COUNTY, FLORIDA          Change in inventory held for resale  Parks Improvements          Advances reclassified to transfers           Change in fair value of investments           Change in inventory       Net change in fund balance, budgetary basis  126 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            ‐$                             ‐$                             ‐$                              640,000                     869,236                  229,236                  1,100,000              1,471,250              371,250                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 4,000                         8,595                      4,595                      5,200                      12,930                   7,730                        ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 644,000                     877,831                  233,831                  1,105,200              1,484,180              378,980                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              185,245                 5,568                      179,677                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 127,121                     10,933                    116,188                   ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 225,516                     94,023                    131,493                   ‐                               ‐                               ‐                                 352,637                     104,956                  247,681                  185,245                 5,568                      179,677                    291,363                     772,875                  481,512                  919,955                 1,478,612              558,657                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 679,000                     679,000                  ‐                              495,300                 495,300                 ‐                                 ‐                                  (1,161,000)             (1,161,000)             (1,887,100)             (1,887,100)             ‐                                 679,000                     (482,000)                 (1,161,000)             (1,391,800)             (1,391,800)              ‐                                 970,363                     290,875                  (679,488)                (471,845)                86,812                   558,657                    ‐                                   ‐                                 ‐                              1,890,745              1,890,745               ‐                                 970,363$                  290,875$                (679,488)$              1,418,900$             1,977,557$             558,657$                 290,875$                86,812$                   1,689                      2,618                       ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               10,429,925             7,027,900               ‐                                 ‐                               10,722,489$          7,117,330$              Correctional Facilities Impact Fees (Budgetary Basis)Impact Fees (Budgetary Basis) County‐Wide Library 127 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes ‐$ ‐$‐$‐$‐$ ‐$    Licenses, permits and impact fees  260,000 344,533 84,533 ‐‐ ‐    Intergovernmental  ‐ ‐‐‐‐ ‐    Charges for services ‐ ‐‐‐‐ ‐    Fines and forfeitures ‐ ‐‐‐‐ ‐    Interest income 1,400 15,269 13,869 45,800              124,903                79,103                  Special assessments ‐ ‐‐336,400            323,445                (12,955)                 Miscellaneous   ‐ ‐‐‐82,631 82,631                    Total revenues 261,400 359,802 98,402 382,200            530,979                148,779              Expenditures:     Current:       General government ‐ ‐‐‐‐ ‐      Public safety 59,415 5,323 54,092 ‐‐ ‐      Physical environment ‐ ‐‐1,853,643         614,358                1,239,285               Transportation ‐ ‐‐‐‐ ‐      Economic environment ‐ ‐‐‐‐ ‐      Human services ‐ ‐‐‐‐ ‐      Culture and recreation ‐ ‐‐‐‐ ‐    Debt service ‐ ‐‐‐‐ ‐    Capital outlay 1,731,504              294,626 1,436,878          13,114,614      2,046,569            11,068,045              Total expenditures 1,790,919              299,949 1,490,970          14,968,257      2,660,927            12,307,330                Excess (deficit) of revenues              over (under) expenditures   (1,529,519)             59,853 1,589,372          (14,586,057)     (2,129,948)           12,456,109         Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds ‐ ‐‐‐‐ ‐    Transfers in 1,799,800              1,799,800              ‐5,754,900         5,757,836            2,936    Transfers out (447,700) (447,700)‐(5,038,115)       (4,232,066)           806,049                  Total other financing sources (uses) 1,352,100              1,352,100              ‐716,785            1,525,770            808,985                    Net change in fund balances (177,419) 1,411,953              1,589,372          (13,869,272)     (604,178)              13,265,094         Fund balances at beginning of year 430,219 430,219 ‐14,123,672      14,123,672          ‐  Fund balances (deficits) at end of year 252,800$               1,842,172$             1,589,372$         254,400$           13,519,494$        13,265,094$       See accompanying independent auditor's report    Reconciliation:  1,411,953$             (604,178)$             3,102 26,359  ‐‐  ‐‐  ‐‐  ‐‐  3,215,900              ‐  ‐‐  4,630,955$             (577,819)$                      Unbudgeted funds       Net change in fund balance, GAAP basis       Net change in fund balance, budgetary basis           Change in fair value of investments           Ad valorem refunds not budgeted           Advances budgeted as transfers  Emergency Medical Services Impact Fees (Budgetary Basis) COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COLLIER COUNTY, FLORIDA          Change in inventory held for resale  (Budgetary Basis) BUDGET AND ACTUAL (BUDGETARY BASIS) Water Management MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS          Advances reclassified to transfers  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015          Change in inventory  128 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            ‐$                             ‐$                             ‐$                              6,200,000                 8,098,940               1,898,940              6,000,000              11,014,501            5,014,501                65,000                        ‐                                (65,000)                  94,600                   94,641                   41                             ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 39,800                       139,273                  99,473                    166,000                 450,687                 284,687                    ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                              27                           27                             6,304,800                 8,238,213               1,933,413              6,260,600              11,559,856            5,299,256                ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              3,937,998              173,975                 3,764,023                ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 357,586                     126,907                  230,679                   ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 11,044,456               3,107,680               7,936,776              36,412,620            4,610,504              31,802,116              11,402,042               3,234,587               8,167,455              40,350,618            4,784,479              35,566,139              (5,097,242)                5,003,626               10,100,868            (34,090,018)           6,775,377              40,865,395              ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 (2,929,900)                (3,318,320)             (388,420)                (4,873,930)              ‐                              4,873,930                (2,929,900)                (3,318,320)             (388,420)                (4,873,930)              ‐                              4,873,930                (8,027,142)                1,685,306               9,712,448              (38,963,948)           6,775,377              45,739,325              15,722,842               15,722,842              ‐                              47,446,948            47,446,948            ‐                                 7,695,700$               17,408,148$          9,712,448$            8,483,000$             54,222,325$           45,739,325$            1,685,306$             6,775,377$              28,809                    93,436                    ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               1,714,115$             6,868,813$              (Budgetary Basis) Parks Impact Districts (Budgetary Basis) Road Impact Districts 129 Budget Actual Variance Budget Actual Variance  Revenues:     Taxes 12,692,000$          13,616,925$           924,925$            ‐$‐$ ‐$    Licenses, permits and impact fees  ‐ ‐‐1,700,000         2,349,191            649,191                Intergovernmental  7,137,000              7,449,150              312,150              ‐‐ ‐    Charges for services 90,300 105,050 14,750 ‐‐ ‐    Fines and forfeitures ‐ ‐‐‐‐ ‐    Interest income 121,600 259,933 138,333              10,400              41,909 31,509                  Special assessments ‐ ‐‐‐‐ ‐    Miscellaneous  241,742 723,166 481,424              ‐‐ ‐      Total revenues 20,282,642            22,154,224            1,871,582          1,710,400         2,391,100            680,700              Expenditures:     Current:       General government ‐ ‐‐200,613            6,427 194,186                  Public safety ‐ ‐‐‐‐ ‐      Physical environment ‐ ‐‐‐‐ ‐      Transportation 9,921,573              9,853,698              67,875 ‐‐ ‐      Economic environment ‐ ‐‐‐‐ ‐      Human services ‐ ‐‐‐‐ ‐      Culture and recreation ‐ ‐‐‐‐ ‐    Debt service ‐ ‐‐10,000              9,125 875    Capital outlay 35,974,172            4,787,005              31,187,167        5,535,350         3,536,636            1,998,714                Total expenditures 45,895,745            14,640,703            31,255,042        5,745,963         3,552,188            2,193,775                  Excess (deficit) of revenues              over (under) expenditures   (25,613,103)           7,513,521              33,126,624        (4,035,563)       (1,161,088)           2,874,475           Other financing sources (uses):     Bonds issued ‐ ‐‐‐‐ ‐    Premiums on bonds issued ‐ ‐‐‐‐ ‐    Payment to refunding bond escrow ‐ ‐‐‐‐ ‐    Sale of capital assets ‐ ‐‐‐‐ ‐    Insurance proceeds ‐ 4,238 4,238 ‐‐ ‐    Transfers in 16,415,500            16,415,276            (224) 8,217,300         8,217,300            ‐    Transfers out (22,258,265)           (20,139,251)           2,119,014          (5,012,700)       (5,012,700)            ‐      Total other financing sources (uses) (5,842,765)             (3,719,737)             2,123,028          3,204,600         3,204,600            ‐        Net change in fund balances (31,455,868)           3,793,784              35,249,652        (830,963)           2,043,512            2,874,475           Fund balances at beginning of year 36,646,016            36,646,016            ‐3,640,063         3,640,063            ‐  Fund balances (deficits) at end of year 5,190,148$            40,439,800$           35,249,652$       2,809,100$       5,683,575$          2,874,475$         See accompanying independent auditor's report    Reconciliation:  3,793,784$             2,043,512$           54,407 8,634  ‐‐  ‐‐  ‐‐  ‐630,000                 ‐25,081,800           ‐‐  3,848,191$             27,763,946$             Net change in fund balance, GAAP basis       Net change in fund balance, budgetary basis           Change in fair value of investments           Ad valorem refunds not budgeted           Advances budgeted as transfers           Unbudgeted funds  COLLIER COUNTY, FLORIDA Road Construction          Change in inventory held for resale  Impact Fees (Budgetary Basis) Government Facilities FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 BUDGET AND ACTUAL (BUDGETARY BASIS) (Budgetary Basis) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES          Advances reclassified to transfers           Change in inventory  130 Budget Actual Variance Budget Actual Variance ‐$                                ‐$                            ‐$                            ‐$                             ‐$                             ‐$                              900,000                     1,260,634               360,634                  ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 5,200                         30,486                    25,286                    10,000                   25,786                   15,786                      ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 ‐                                  ‐                                ‐                              ‐                              ‐                              ‐                                 905,200                     1,291,120               385,920                  10,000                   25,786                   15,786                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 148,492                     4,030                      144,462                   ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                              11,801                   861                         10,940                      ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 2,394,000                 220,732                  2,173,268              2,965,271               ‐                              2,965,271                2,542,492                 224,762                  2,317,730              2,977,072              861                         2,976,211                (1,637,292)                1,066,358               2,703,650              (2,967,072)             24,925                   2,991,997                ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 ‐                                   ‐                                 ‐                               ‐                               ‐                               ‐                                 3,758,900                 3,758,900               ‐                              ‐                              ‐                              ‐                                 (2,656,600)                (2,656,600)             ‐                              ‐                              ‐                              ‐                                 1,102,300                 1,102,300               ‐                              ‐                              ‐                              ‐                                 (534,992)                   2,168,658               2,703,650              (2,967,072)             24,925                   2,991,997                ‐                                   ‐                                 ‐                              2,967,572              2,967,572               ‐                                 (534,992)$                 2,168,658$             2,703,650$            500$                        2,992,497$             2,991,997$              2,168,658$             24,925$                   6,013                      5,468                       ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               ‐                                ‐                               19,923,100             ‐                               ‐                                ‐                               22,097,771$          30,393$                   Law Enforcement Impact Fees All Terrain Vehicle Park (Budgetary Basis)(Budgetary Basis) 131 Budget Actual Variance  Revenues:     Taxes ‐$ ‐$‐$    Licenses, permits and impact fees  2,000 5,186 3,186    Intergovernmental  ‐ ‐‐    Charges for services ‐ ‐‐    Fines and forfeitures ‐ ‐‐    Interest income 4,600 8,671 4,071    Special assessments 118,600 115,116 (3,484)    Miscellaneous   ‐ 118 118      Total revenues 125,200 129,091 3,891  Expenditures:     Current:       General government 75,000 ‐75,000      Public safety 3,852 ‐3,852      Physical environment 1,369,134              1,267,026              102,108                    Transportation ‐ ‐‐      Economic environment ‐ ‐‐      Human services ‐ ‐‐      Culture and recreation 261,000 59,521 201,479                  Debt service ‐ ‐‐    Capital outlay 351,571 216,370 135,201                     Total expenditures 2,060,557              1,542,917              517,640                       Excess (deficit) of revenues              over (under) expenditures   (1,935,357)             (1,413,826)             521,531                Other financing sources (uses):     Bonds issued ‐ ‐‐    Premiums on bonds issued ‐ ‐‐    Payment to refunding bond escrow ‐ ‐‐    Sale of capital assets ‐ ‐‐    Insurance proceeds ‐ ‐‐    Transfers in 1,702,200              1,703,087              887    Transfers out (7,900) (3,948)3,952      Total other financing sources (uses) 1,694,300              1,699,139              4,839        Net change in fund balances (241,057) 285,313 526,370                Fund balances at beginning of year 759,782 759,782 ‐  Fund balances (deficits) at end of year 518,725$               1,045,095$             526,370$             See accompanying independent auditor's report    Reconciliation:  285,313$                 1,774 ‐ ‐ ‐ ‐ ‐ ‐ 287,087$                          Advances reclassified to transfers           Unbudgeted funds       Net change in fund balance, GAAP basis  (Budgetary Basis)      Net change in fund balance, budgetary basis           Change in fair value of investments           Ad valorem refunds not budgeted           Change in inventory held for resale           Advances budgeted as transfers           Change in inventory  COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Other Capital Projects 132 Nonmajor Enterprise Funds EMERGENCY MEDICAL SERVICES – To account for the provision of emergency ambulance and  paramedical services to users throughout the County.  AIRPORT AUTHORITY – To account for the provision of landing facilities and the sale of fuel at the  airports.   COLLIER AREA TRANSIT – To account for the provision of public transportation throughout the  County.   Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds ASSETS  Current assets:   Cash, cash equivalents and investments 7,971,973$    1,042,692$     1,563,668$      10,578,333$        Receivables:         Trade, net 1,476,879     23,301            13,036             1,513,216                  Interest 20,138           2,464              4,293               26,895                 Due from other funds 2,743             7,472              8,807               19,022                 Due from other governments 29,270           ‐126 29,396                 Inventory 35,218           90,794            ‐126,012               Prepaid costs 159,413         ‐101,375           260,788               Restricted assets:         Cash, cash equivalents and investments 243,837         24,782            146,303           414,922                     Interest receivable 643                 ‐‐643         Due from other governments ‐1,326,286       2,814,666       4,140,952                  Total current assets 9,940,114     2,517,791       4,652,274       17,110,179         Noncurrent assets:   Capital assets:           Land and nondepreciable capital assets ‐1,805,421       10,195,139     12,000,560                 Depreciable capital assets, net 7,058,659     32,326,464    13,281,096     52,666,219               Total noncurrent assets 7,058,659     34,131,885    23,476,235     64,666,779               Total assets 16,998,773   36,649,676    28,128,509     81,776,958         DEFERRED OUTFLOWS OF RESOURCES   Deferred outflows of resources related to pensions 3,325,754     78,353            23,696             3,427,803           COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS  SEPTEMBER 30, 2015 134 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds  LIABILITIES    Current liabilities:      Accounts payable 348,232         65,958            392,221           806,411                 Wages payable 1,186,522     43,483            14,319             1,244,324              Retainage payable ‐                      ‐                       20,203             20,203                   Due to other funds ‐                      979,436          45,934             1,025,370              Due to other governments ‐                      3,390              ‐                        3,390                      Unearned revenue ‐                      59,217            ‐                        59,217                   Compensated absences 520,911         28,347            4,398               553,656                 Capital lease obligations 283,358          ‐                        ‐                        283,358               Liabilities payable from restricted assets:         Accounts payable ‐                      11,762            1,326,680       1,338,442                  Wages payable ‐                      ‐                       3,668               3,668                          Retainage payable ‐                      ‐                       287,769           287,769                     Due to other governments ‐                      ‐                       68,553             68,553                       Refundable deposits ‐                      15,753            ‐                        15,753                       Unearned revenue ‐                      8,441              ‐                        8,441                        Total current liabilities 2,339,023     1,215,787       2,163,745       5,718,555            Noncurrent liabilities:      Compensated absences 130,228         7,087              1,100               138,415                 Capital lease obligations 790,609         ‐                       ‐                        790,609                 Net pension liability 13,402,201   405,822          101,964           13,909,987             Total noncurrent liabilities 14,323,038   412,909          103,064           14,839,011             Total liabilities 16,662,061   1,628,696       2,266,809       20,557,566         DEFERRED INFLOWS OF RESOURCES   Deferred inflows of resources related to pensions 2,789,805     46,287            18,481             2,854,573            NET POSITION    Net investment in capital assets 5,984,692     34,076,248    22,090,343     62,151,283         Restricted for grants and other purposes 244,480         23,464            1,052,993       1,320,937            Unrestricted (5,356,511)    953,334          2,723,579       (1,679,598)            Total net position 872,661$        35,053,046$   25,866,915$    61,792,622$        See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS  SEPTEMBER 30, 2015 135 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds  Operating revenues:     Charges for services 12,213,440$      3,315,331$        1,613,569$       17,142,340$          Miscellaneous 114,103             34,436               105,637            254,176                   Total operating revenues 12,327,543        3,349,767         1,719,206        17,396,516         Operating expenses:     Personal services 19,443,811        890,934            282,143            20,616,888           Operating 3,374,158         2,471,325         8,599,140        14,444,623           Depreciation  973,635             1,413,499         1,490,266        3,877,400                Total operating expenses 23,791,604        4,775,758         10,371,549      38,938,911               Operating loss (11,464,061)       (1,425,991)        (8,652,343)       (21,542,395)        Non‐operating revenues (expenses):     Operating grants and contributions 206,588             ‐4,788,094        4,994,682              Interest income 78,253               12,366               17,032              107,651                  Insurance reimbursement 8,470                 ‐26,006              34,476                    Interest expense (22,363)              ‐‐(22,363)                   Gain (loss) on disposal of capital assets 17,277               361 (3,388)               14,250                      Total non‐operating revenues (expenses) 288,225             12,727               4,827,744        5,128,696                Loss before contributions and transfers (11,175,836)       (1,413,264)        (3,824,599)       (16,413,699)        Capital grants and contributions ‐368,842            3,455,290        3,824,132            Transfers in 15,488,300        658,200            3,660,908        19,807,408         Transfers out (3,000)                (8,641)                ‐(11,641)                 Total transfers and contributions 15,485,300        1,018,401         7,116,198        23,619,899         Changes in net position 4,309,464         (394,863)           3,291,599        7,206,200            Net position ‐ beginning, as previously stated 10,443,926        35,813,824       22,700,072      68,957,822         Restatement of net position due to        implementation of GASB 68 (13,880,729)       (365,915)           (124,756)          (14,371,400)        Net position ‐ as restated (3,436,803)        35,447,909       22,575,316      54,586,422         Net position ‐ ending 872,661$          35,053,046$     25,866,915$     61,792,622$        See accompanying independent auditor's report   COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 136 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds Cash flows from operating activities: 12,281,291$    3,367,000$    1,862,134$    17,510,425$         (2,091,191)      (2,083,844)    (6,566,896)    (10,741,931)          (20,444,256)    (883,674)       (312,482)       (21,640,412)          (1,241,903)      (353,257)       (2,242,718)    (3,837,878)            (11,496,059)    46,225           (7,259,962)    (18,709,796)          Cash flows from non‐capital financing activities: 177,318           ‐                      5,148,096     5,325,414             15,488,300      685,408         3,666,004     19,839,712           (3,000)              (3,786,622)     ‐                       (3,789,622)            15,662,618      (3,101,214)    8,814,100     21,375,504           Cash flows from capital and related   financing activities: 57,828             ‐                      26,006           83,834                   2,416               479                7,894              10,789                   ‐                        6,461,988     2,697,569     9,159,557             (2,111,473)      (2,563,324)    (2,844,951)    (7,519,748)            (278,323)           ‐                       ‐                       (278,323)               (22,363)             ‐                       ‐                       (22,363)                 (2,351,915)      3,899,143     (113,482)       1,433,746             Cash flows from investing activities: 65,382             10,380           13,458           89,220                   65,382             10,380           13,458           89,220                   1,880,026        854,534         1,454,114     4,188,674             6,335,784        212,940         255,857         6,804,581             8,215,810$       1,067,474$    1,709,971$    10,993,255$         7,971,973$       1,042,692$    1,563,668$    10,578,333$         243,837           24,782           146,303         414,922                 8,215,810$       1,067,474$    1,709,971$    10,993,255$         Operating loss (11,464,061)$   (1,425,991)$   (8,652,343)$   (21,542,395)$        973,635           1,413,499     1,490,266     3,877,400             Net changes in assets and liabilities: (17,505)            15,903           136,635         135,033                 (2,743)              ‐                      (38,559)         (41,302)                 411                   ‐                      (199)                212                       5,266               56,505           ‐                       61,771                   49,050             ‐                      (101,375)       (52,325)                 (42,362)            (22,281)         (85,114)         (149,757)               117,781           (352)               (294)                117,135                 ‐                        ‐                      21,066           21,066                   (48)                    1,095             ‐                       1,047                    (101,006)          (229)               (2,038)             (103,273)               ‐                        (819)               ‐                       (819)                      ‐                        1,054             ‐                       1,054                    (1,014,477)      7,841             (28,007)         (1,034,643)            (31,998)            1,472,216     1,392,381     2,832,599             (11,496,059)$   46,225$          (7,259,962)$   (18,709,796)$        Non‐cash investing, capital and financing activities: 13,096$            2,369$            3,076$             18,541$                 ‐                        ‐                      433,985         433,985                 ‐                        (6,093,146)    323,736         (5,769,410)            ‐                        55,637           1,077,920     1,133,557             See accompanying independent auditor's report  Capital related accounts payable   Change in capital related grant receivable  COLLIER COUNTY, FLORIDA NONMAJOR ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015  Net increase in cash, cash equivalents and investments   Cash received for services   Cash payments for goods and services   Cash payments to employees   Cash payments for interfund services   Net cash provided by (used for) operating activities   Cash received from operating grants   Cash transfers from other funds   Cash transfers to other funds   Net cash provided by (used for) non‐capital financing activities   Receipts from insurance reimbursements   Proceeds from disposal of capital assets   Proceeds from capital grants   Payments for capital acquisitions   Principal payments on leases   Interest and fiscal agent fees paid       related financing activities   Net cash provided by (used for) capital and    Interest on investments   Net cash provided by investing activities   Cash, cash equivalents and investments, October 1, 2014   Cash, cash equivalents and investments, September 30, 2015   Cash, cash equivalents and investments   Cash, cash equivalents and investments ‐ restricted   Cash, cash equivalents and investments, September 30, 2015   Adjustments to reconcile operating loss to net cash provided   by operating activities:   Depreciation expense   Trade receivable   Due from other funds   Due from other governments   Inventory   Accounts payable   Wages payable   Prepaid costs   Due to other funds   Unearned revenue   Due to other governments   Change in fair value of investments   Contributed capital assets   Compensated absences   Net pension liability and related deferred outflows/inflows   Total adjustments   Net cash provided by (used for) operating activities   Refundable deposits  137 THIS PAGE INTENTIONALLY LEFT BLANK  Internal Service Funds SELF‐INSURANCE – To account for the self‐insurance costs of providing coverage for property,  general and vehicle liability. To account for the provisions of health benefits to Board and  participating constitutional officer employees and their dependents. To account for payment of  workers’ compensation claims, in lieu of insurance.   SHERIFF'S SELF‐INSURANCE – To account for the provisions of health benefits to Sheriff  employees and their dependents. To account for payment of workers’ compensation claims, in  lieu of insurance.   FLEET MANAGEMENT – To account for fuel, oil, lubricants, repairs and maintenance of County  vehicles and the use of certain County owned vehicles by County employees.   INFORMATION TECHNOLOGY – To account for the costs of operating the County data processing  facility and telephone communication system.  Sheriff's Self‐Self‐Fleet Information Insurance Insurance Management Technology Total  ASSETS   Current assets:    Cash, cash equivalents and investments 36,441,402$  9,902,000$     1,092,518$     2,113,445$     49,549,365$      Receivables:         Trade, net 1,241,235       45,012            3,697              ‐ 1,289,944                Interest 102,147          ‐2,308              6,127               110,582              Due from other funds 12,604             183,556         59,354            ‐ 255,514              Due from other governments 3,005               ‐24,841            ‐ 27,846                 Deposits 51,108             ‐‐‐ 51,108                 Inventory 300 ‐376,913         12,272             389,485               Total current assets 37,851,801     10,130,568    1,559,631      2,131,844      51,673,844        Noncurrent assets:    Capital assets:         Depreciable capital assets, net 253,684          ‐10,795,210    4,178,541      15,227,435          Total noncurrent assets 253,684          ‐10,795,210    4,178,541      15,227,435            Total assets 38,105,485     10,130,568    12,354,841    6,310,385      66,901,279        DEFERRED OUTFLOWS OF RESOURCES   Deferred outflows of resources related to pensions 101,567          ‐176,170         295,902          573,639             LIABILITIES   Current liabilities:    Accounts payable  237,744          ‐339,124         261,170         838,038              Wages payable 67,295             ‐129,581         196,303         393,179              Due to other governments 10,552             ‐20,271            ‐ 30,823                 Unearned revenue 6,944               ‐‐‐ 6,944                  Self‐insurance claims payable 3,533,441       2,170,000      ‐‐ 5,703,441           Compensated absences 99,923             ‐110,140         191,298         401,361               Total current liabilities 3,955,899       2,170,000      599,116         648,771         7,373,786          Noncurrent liabilities:    Self‐insurance claims payable 1,255,993       ‐‐‐ 1,255,993           Compensated absences 24,980             ‐27,535            47,825             100,340              Net OPEB obligation 826,053          2,168,099      ‐‐ 2,994,152           Net pension liability 468,901          861,531         1,385,042      2,715,474            Total noncurrent liabilities  2,575,927       2,168,099      889,066         1,432,867      7,065,959                      Total liabilities 6,531,826       4,338,099      1,488,182      2,081,638      14,439,745        DEFERRED INFLOWS OF RESOURCES   Deferred inflows of resources related to pensions 72,336             ‐115,063         206,648          394,047             NET POSITION   Net investment in capital assets 253,684          ‐10,795,210    4,107,718      15,156,612        Unrestricted 31,349,206     5,792,469      132,556         210,283         37,484,514          Total net position 31,602,890$  5,792,469$     10,927,766$  4,318,001$     52,641,126$     See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2015 140 Sheriff's Self‐Self‐Fleet Information Insurance Insurance Management Technology Total  Operating revenues:     Charges for services 45,007,675$      19,777,998$     7,614,087$       5,624,804$       78,024,564$         Miscellaneous 28,497                ‐                         31,872              1,143                  61,512                    Total operating revenues 45,036,172        19,777,998      7,645,959         5,625,947          78,086,076         Operating expenses:     Personal services 1,104,125           ‐                         2,032,635         3,113,464          6,250,224             Operating  41,047,767        21,159,525      6,037,402         2,195,084          70,439,778           Depreciation  25,566                ‐                         570,481            1,250,809          1,846,856               Total operating expenses 42,177,458        21,159,525      8,640,518         6,559,357          78,536,858               Operating income (loss) 2,858,714          (1,381,527)       (994,559)           (933,410)            (450,782)            Non‐operating revenues (expenses):     Interest income 413,837              14,430              10,313              24,220               462,800                Insurance reimbursement 1,100,039          ‐                         2,374                 ‐                          1,102,413              Gain (Loss) on disposal of capital assets ‐                          ‐                         20,725              149                     20,874                    Total non‐operating revenues (expenses) 1,513,876          14,430              33,412              24,369               1,586,087          Income (loss) before contributions and transfers 4,372,590          (1,367,097)       (961,147)           (909,041)            1,135,305           Capital grants and contributions 303                    ‐                         ‐                         ‐                          303                     Transfers out  (1,476,600)         ‐                         ‐                         ‐                          (1,476,600)          Change in net position 2,896,293          (1,367,097)       (961,147)           (909,041)            (340,992)            Net position ‐ beginning, as previously stated 29,201,070        7,159,566        12,775,720      6,727,645          55,864,001         Restatement of net position due to        implementation of GASB 68 (494,473)            ‐                         (886,807)           (1,500,603)       (2,881,883)          Net position ‐ as restated 28,706,597        7,159,566        11,888,913      5,227,042          52,982,118         Net position ‐ ending 31,602,890$      5,792,469$       10,927,766$     4,318,001$       52,641,126$      COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015  See accompanying independent auditor's report  141 Sheriff's Self‐Self‐Fleet Information Insurance Insurance Management Technology Total Cash flows from operating activities: Cash received from other funds for services 37,676,361$      18,750,000$ 7,306,008$    5,625,947$    69,358,316$       Cash received from employees for services 6,787,209           ‐ ‐ ‐ 6,787,209            Cash received from other governments for services ‐ ‐ 368,869          ‐ 368,869               Cash received from retirees for services 586,556              799,430         ‐ ‐ 1,385,986            Cash payments on behalf of retirees (2,439,766)         ‐ ‐ ‐ (2,439,766)          Cash payments for goods and services (39,043,625)       (20,475,265)  (5,480,520)     (2,022,230)     (67,021,640)        Cash payments to employees (1,167,377)         ‐ (2,083,551)     (3,325,507)     (6,576,435)          Cash payments for interfund services (419,947)             ‐ (258,536)        (37,188)           (715,671)              Net cash provided by (used for) operating activities 1,979,411           (925,835)        (147,730)        241,022          1,146,868            Cash flows from non‐capital financing activities: Cash transfers to other funds (1,476,600)         (407,422)        ‐ ‐ (1,884,022)          Net cash used for non‐capital financing activities (1,476,600)         (407,422)        ‐ ‐ (1,884,022)          Cash flows from capital and related financing activities: Receipts from insurance reimbursements 1,114,621           ‐ 5,515              ‐ 1,120,136            Proceeds from disposal of capital assets ‐ ‐ 23,416            149                  23,565                 Payments for capital acquisitions (38,289)               ‐ (114,933)        (191,724)        (344,946)              Net cash provided by (used for) capital and related      financing activities 1,076,332           ‐ (86,002)           (191,575)        798,755               Cash flows from investing activities: Interest on investments 352,702              14,430           8,831              20,592            396,555               Net cash provided by investing activities 352,702              14,430           8,831              20,592            396,555               1,931,845           (1,318,827)    (224,901)        70,039            458,156               Cash, cash equivalents and investments, October 1, 2014 34,509,557        11,220,827   1,317,419      2,043,406      49,091,209         Cash, cash equivalents and investments, September 30, 2015 36,441,402$     9,902,000$  1,092,518$   2,113,445$    49,549,365$      Operating income (loss)2,858,714$        (1,381,527)$  (994,559)$      (933,410)$      (450,782)$            Adjustments to reconcile operating income (loss) to net cash   provided (used for) by operating activities: Depreciation expense 25,566                ‐ 570,481          1,250,809      1,846,856            Net changes in assets and liabilities: Trade receivable (1,217,721)         60,387           (3,697)             ‐ (1,161,031)          Due from other funds (900) (183,556)        11,430            ‐ (173,026)              Due from other governments (3,005) ‐ 21,185            ‐ 18,180                 Inventory ‐ ‐ 378,518          1,660              380,178               Accounts payable 140,395              ‐ (100,364)        134,006          174,037               Wages payable 4,258 ‐ 26,241            5,579              36,078                 Due to other funds (39,300)               ‐ ‐ ‐ (39,300)                Due to other governments 10,552                ‐ 20,192            ‐ 30,744                 Compensated absences (12,707)               ‐ 9,226              (12,807)           (16,288)                Unearned revenue (2,828) ‐ ‐ ‐ (2,828)  Self‐insurance claims payable 294,606              92,000           ‐ ‐ 386,606               Net OPEB obligation (23,416)               486,861         ‐ ‐ 463,445               Net pension liability and related deferred outflows/inflows (54,803)               ‐ (86,383)           (204,815)        (346,001)              Total adjustments (879,303)             455,692         846,829          1,174,432      1,597,650            Net cash provided by (used for) operating activities 1,979,411$       (925,835)$    (147,730)$     241,022$       1,146,868$        Non‐cash investing, capital and financing activities: Change in fair value of investments 71,112$              (26,970)$        1,824$            4,216$            50,182$               Contributed capital assets 303 ‐ ‐ ‐ 303  Capital related accounts payable ‐ ‐ ‐ 70,823            70,823                 See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015      equivalents and investments Net increase (decrease) in cash, cash 142 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  ASSETS   Cash, cash equivalents and investments 26,821,917$  566,302$       7,152,324$    5,613,684$    821,652$        40,975,879$   Receivables:         Interest  ‐ ‐                      ‐                      13,959           2,281              16,240                  Other ‐ 14,388           18,820           ‐‐ 33,208                Total assets 26,821,917$  580,690$       7,171,144$    5,627,643$    823,933$        41,025,327$   LIABILITIES     Due to other governments 1,292,816$     65,223$         7,144,066$    ‐$‐$ 8,502,105$       Due to individuals ‐ 515,467        27,078           ‐‐ 542,545            Refundable deposits 25,529,101     ‐‐5,627,643     ‐ 31,156,744       Due to special assessment holders  ‐ ‐‐‐823,933         823,933                Total liabilities 26,821,917$  580,690$       7,171,144$    5,627,643$    823,933$        41,025,327$  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2015 See accompanying independent auditor's report   144 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash, cash equivalents and investments  26,166,962$   187,125,599$      186,470,644$       26,821,917$         Total assets 26,166,962$   187,125,599$       186,470,644$        26,821,917$      Liabilities: Due to other governments  1,134,274$    11,122,487$        10,963,945$         1,292,816$        Refundable deposits 25,032,688     176,003,112       175,506,699        25,529,101          Total liabilities 26,166,962$   187,125,599$       186,470,644$        26,821,917$      Sheriff Agency Fund Assets: Cash, cash equivalents and investments  600,082$        3,733,558$          3,767,338$           566,302$            Receivable:   Other 23,827            14,388                 23,827                  14,388                  Total assets 623,909$         3,747,946$           3,791,165$            580,690$            Liabilities: Due to other governments  60,129$          65,223$                60,129$                 65,223$              Due to individuals 563,780          515,467               563,780                515,467                 Total liabilities 623,909$         580,690$              623,909$                580,690$            Tax Collector Agency Fund Assets: Cash, cash equivalents and investments  6,817,938$    889,709,054$      889,374,668$       7,152,324$        Receivable:   Other 14,902            2,623,036           2,619,118             18,820                  Total assets 6,832,840$     892,332,090$       891,993,786$        7,171,144$        Liabilities: Due to other governments  6,747,383$    1,150,978,126$  1,150,581,443$   7,144,066$        Due to individuals 85,457            38,154,904         38,213,283          27,078                  Total liabilities 6,832,840$     1,189,133,030$   1,188,794,726$    7,171,144$        Deposits Agency Fund Assets: Cash, cash equivalents and investments  6,603,422$    979,691$             1,969,429$           5,613,684$        Receivables:   Interest 7,009              13,959                 7,009                     13,959                  Total assets 6,610,431$     993,650$              1,976,438$            5,627,643$        Liabilities: Refundable deposits 6,610,431$    962,626$             1,945,414$           5,627,643$           Total liabilities 6,610,431$     962,626$              1,945,414$            5,627,643$        (Continued) COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 145 Balance Balance October 1 Additions Deductions September 30 Assets: Cash, cash equivalents and investments  1,117,644$    9,108$305,100$               821,652$            Receivables:   Interest 1,288              2,281 1,288 2,281                   Other ‐‐‐‐     Total assets 1,118,932$     11,389$                 306,388$                823,933$            Liabilities: Due to special assessment holders  1,118,932$    10,101$                305,100$               823,933$               Total liabilities 1,118,932$     10,101$                 305,100$                823,933$            Total  ‐ All Agency Funds Assets: Cash, cash equivalents and investments  41,306,048$   1,081,557,010$  1,081,887,179$   40,975,879$      Receivables:   Interest 8,297              16,240 8,297 16,240                 Other 38,729            2,637,424           2,642,945             33,208                  Total assets 41,353,074$   1,084,210,674$   1,084,538,421$    41,025,327$      Liabilities: Due to other governments  7,941,786$    1,162,165,836$  1,161,605,517$   8,502,105$        Due to individuals 649,237          38,670,371         38,777,063          542,545             Refundable deposits 31,643,119     176,965,738       177,452,113        31,156,744       Due to special assessment holders  1,118,932       10,101 305,100                823,933                Total liabilities 41,353,074$   1,377,812,046$   1,378,139,793$    41,025,327$       See accompanying independent auditor's report  ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION Pine Ridge and Naples Production Park Agency  146 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.   Housing Health Industrial Educational Finance Facilities Development Facilities Authority Authority Authority Authority Totals ASSETS   Cash, cash equivalents and investments 125,934$       92,691$         54,993$         70,057$          343,675$         Total Assets 125,934$       92,691$         54,993$         70,057$          343,675$         NET POSITION     Net position ‐ unrestricted 125,934$       92,691$         54,993$         70,057$          343,675$         Total Net Position 125,934$       92,691$         54,993$         70,057$          343,675$         COLLIER COUNTY, FLORIDA COMPONENT UNITS COMBINING STATEMENT OF NET POSITION SEPTEMBER 30, 2015  See accompanying independent auditor's report  148 Net (Expense)  Revenue and Changes  Program Revenues in Net Position Fees, Fines and Governmental FUNCTIONS/PROGRAMS Expenses Charges for Services Activities Housing Finance Authority  85$32,905$32,820$  Health Facilities Authority  12 75,000 74,988  Industrial Development Authority  15 32,500 32,485            Total 112$140,405$140,293  General revenues:   Interest income 78    Total general revenues 78       Change in net position 140,371  Net position ‐ beginning 203,304  Net position ‐ ending 343,675$   See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS 149 THIS PAGE INTENTIONALLY LEFT BLANK  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 2015 2015 Source Fiscal Year Fiscal Year British Petroleum:      Settlement agreement 1,981,641       ‐ British Petroleum:      Gulf Seafood and Tourism Promotional Fund 125,000           491,889             OTHER SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2015 fiscal year. 152 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  154  Change in net position  155  Governmental activities tax revenues by source  158  Fund balances of governmental funds  159  Changes in fund balance of governmental funds  160  REVENUE CAPACITY  These schedules contain information to help the reader assess the County’s most significant local  revenue source, the Property Tax.  Assessed value and estimated actual value of taxable property     162  Property tax rates – All direct and overlapping governments     163  Principal tax payers County‐wide    164  Property tax levies and collections    165  DEBT CAPACITY  These schedules present information to help the reader assess the affordability of the County’s current  levels of outstanding debt and the County’s ability to issue additional debt in the future.  Ratios of outstanding debt by type 166  Ratios of general bonded debt outstanding 167  Legal debt margin information 168  Direct, overlapping and underlapping governmental activities debt 168  Pledged‐revenue coverage 169  DEMOGRAPHIC AND ECONOMIC INFORMATION   These schedules offer demographic and economic indicators to help the reader understand the   environment within which the County’s financial activities take place.   Demographic and economic statistics 170  Principal employers 171  OPERATING INFORMATION   These schedules contain service and infrastructure data to help the reader understand how the   information in the County’s financial report relates to the services the County provides and the  activities it performs.  Budgeted full‐time equivalent County employees by function 172  Operating indicators by function 173  Capital Asset statistics by function/program 174  20152014 2013 2012 2011 2010 2009 2008 2007 2006Governmental Activities:  Net investment in capital assets1,217,176$      1,207,751$      1,198,971$  1,187,298$  1,172,121$  1,169,052$  1,131,617$  1,032,553$  881,941$     682,738$       Restricted298,360           223,526           221,501        226,934        253,977        232,571        240,247        295,012        244,746        205,403  Unrestricted13,109              169,633           152,790        147,188        147,080        189,911        192,442        199,031        317,821        318,092Total governmental activities net position1,528,645$      1,600,910$      1,573,262$  1,561,420$  1,573,178$  1,591,534$  1,564,306$  1,526,596$  1,444,508$  1,206,233$  Business‐type Activities:  Net investment in capital assets714,239$         705,065$         668,160$     650,684$     643,777$     635,702$     653,320$     658,865$     630,015$     595,722$       Restricted31,511              29,749              34,379          34,199          38,002          37,795          31,227          30,165          30,746          28,087  Unrestricted165,128           185,420           196,050        194,389        177,939        169,514        149,422        113,761        83,038          77,206Total business‐type activities net position910,878$         920,234$         898,589$     879,272$     859,718$     843,011$     833,969$     802,791$     743,799$     701,015$     Primary Government:  Net investment in capital assets1,931,415$      1,912,816$      1,867,131$  1,837,982$  1,815,898$  1,804,754$  1,784,937$  1,691,418$  1,511,956$  1,278,460$    Restricted329,871           253,275           255,880        261,133        291,979        270,366        271,474        325,177        275,492        233,490  Unrestricted178,237           355,053           348,840        341,577        325,019        359,425        341,864        312,792        400,859        395,298Total primary government net position2,439,523$      2,521,144$      2,471,851$  2,440,692$  2,432,896$  2,434,545$  2,398,275$  2,329,387$  2,188,307$  1,907,248$  Fiscal Year(unaudited)(amounts expressed in thousands)COLLIER COUNTY, FLORIDANET POSITION BY COMPONENT(accrual basis of accounting)LAST TEN FISCAL YEARS154 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006ExpensesGovernmental activities:   General government93,644$       92,176$       95,941$        94,227$        103,045$      100,483$      113,906$      112,720$      110,814$      100,219$         Public safety174,874       177,267       171,210        165,782        173,286        179,276        182,962        183,288        182,821        187,945           Transportation70,296         71,623         69,275          73,000          81,383          76,603          64,601          65,980          54,198          48,986             Culture and recreation45,117         41,630         41,453          42,507          44,205          46,871          45,727          43,435          41,595          34,348             Other activities45,621         39,171         43,067          51,057          39,991          40,937          45,367          49,135          44,500          35,838             Interest on long‐term debt12,912         12,674         16,129          16,412          19,797          19,475          20,492          21,446          21,779          25,841          Total governmental activities expenses442,464$     434,541$     437,075$      442,985        461,707        463,645        473,055        476,004        455,707        433,177        Business‐type activities:   Water and Sewer122,858$     112,643$     114,041$      102,642        104,333        103,272        90,042          85,503          89,908          77,049             Solid Waste36,411         33,787         32,760          29,618          28,000          27,416          30,774          30,024          32,033          32,920             Airport Authority4,771            3,764            4,439             4,601             4,458             4,382             3,895             5,082             4,296             3,978                Mass Transit10,416         10,306         10,111          9,925             10,187          9,617             8,974             9,419             7,761             6,000                Emergency Medical Services24,094         23,208         21,545          21,792          22,657          23,073          22,478          22,935          22,026          17,470          Total business‐type activities expenses198,550$     183,708$     182,896$      168,578        169,635        167,760        156,163        152,963        156,024        137,417        Total primary government expenses641,014$     618,249$     619,971$      611,563$      631,342$      631,405$      629,218$      628,967$      611,731$      570,594$      (unaudited)Fiscal YearCOLLIER COUNTY, FLORIDACHANGE IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)(amounts expressed in thousands)155 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Program RevenuesGovernmental activities: Charges for services:   General government34,240$       34,662$       36,080$        31,388$        33,919$        29,281$        32,257$        36,468$        46,380$        47,178$           Public safety25,227         21,765         19,735          16,743          15,554          16,385          11,940          12,545          14,293          20,547             Transportation1,094            959               1,045             880                715                829                3,101             3,936             1,902             1,733                Culture and recreation8,685            7,943            8,416             9,126             9,093             8,267             9,830             8,429             7,494             5,878                Other activities4,237            2,661            3,667             4,941             2,296             1,557             1,620             7,541             2,395             2,938             Operating Grants and Contributions35,521         31,444         20,921          22,892          19,503          31,884          21,948          20,202          27,309          43,062          Capital Grants and Contributions29,986         28,945         28,280          20,279          19,347          25,762          24,867          52,303          122,327        99,068          Total governmental activities program revenues 138,990       128,379       118,144        106,249        100,427        113,965        105,563        141,424        222,100        220,404        Business‐type activities: Charges for services:   Water and Sewer116,645       107,924       109,176        103,042        105,858        101,062        104,927        100,030        92,091          81,088             Solid Waste39,121         35,368         34,585          34,275          33,769          33,568          32,922          36,495          33,864          33,713             Airport Authority3,350            2,589            3,021             2,805             2,938             2,519             2,353             3,547             2,860             2,459                Mass Transit1,719            1,641            1,450             1,360             1,290             1,145             1,101             1,074             1,153             814                   Emergency Medical Services12,327         9,922            10,335          10,249          8,980             10,759          9,114             8,941             9,544             9,255             Operating Grants and Contributions5,142            3,077            3,914             2,948             4,378             4,448             3,235             4,393             2,657             3,138             Capital Grants and Contributions21,165         30,662         24,953          17,818          14,307          10,385          18,147          23,333          32,647          36,496          Total business‐type activities program revenues199,469       191,183       187,434        172,497        171,520        163,886        171,799        177,813        174,816        166,963        Total primary government program revenues 338,459       319,562       305,578        278,746        271,947        277,851        277,362        319,237        396,916        387,367        Net (expense)/revenue:Governmental activities(303,474)      (306,162)      (318,931)       (336,736)       (361,280)       (349,680)       (367,492)       (334,580)       (233,607)       (212,773)       Business‐type activities919               7,475            4,538             3,919             1,885             (3,874)           15,636          24,850          18,792          29,546          Total primary government net expense(302,555)$   (298,687)$   (314,393)$    (332,817)$    (359,395)$    (353,554)$    (351,856)$    (309,730)$    (214,815)$    (183,227)$    LAST TEN FISCAL YEARS (CONTINUED)CHANGE IN NET POSITIONCOLLIER COUNTY, FLORIDAFiscal Year(unaudited)(amounts expressed in thousands)(accrual basis of accounting)156 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006General Revenues and Other Changes     in Net PositionGovernmental Activities:   Taxes:      Property taxes259,779$     244,404$     249,352$      248,232$      261,630$      299,389$      313,290$      327,245$      345,054$      293,240$            Gas taxes19,547         18,556         18,229          18,525          18,311          18,415          18,456          18,860          19,598          20,028                Sales taxes38,573         35,786         32,168          29,713          28,364          26,927          26,779          30,004          32,568          34,671                Tourist taxes21,188         19,137         16,183          14,898          13,884          12,857          12,345          14,796          14,228          13,629                Other taxes7,322            7,840            9,403             9,997             10,155          10,039          12,241          4,051             8,754             9,142                State revenue sharing10,589         9,657            8,792             8,233             8,310             7,854             7,927             8,976             9,652             9,410                Interest income5,069            2,599            1,496             2,430             3,888             4,665             11,455          33,730          48,931          36,388             Miscellaneous17,510         13,333         9,063             7,397             11,498          8,022             12,066          10,642          8,223             10,261             Special item ‐ registry bond ‐                    ‐                    ‐                     ‐                     ‐                     ‐                     3,239             (3,288)           ‐                     ‐                        Transfers, net(14,192)        (13,185)        (13,912)         (14,447)         (13,117)         (11,259)         (12,596)         (28,348)         (15,126)         (13,229)         Total governmental activities365,385$     338,127$     330,774$      324,978        342,923        376,909        405,202        416,668        471,882        413,540        Business‐type Activities:   Interest income2,209            1,301            712                1,106             1,609             1,569             2,395             5,716             8,246             3,815                Miscellaneous94                 68                 154                82                  96                  88                  551                77                  620                ‐                        Transfers, net14,192         13,184         13,912          14,447          13,117          11,259          12,596          28,348          15,126          13,229          Total business‐type activities16,495         14,553         14,778          15,635          14,822          12,916          15,542          34,141          23,992          17,044          Total primary government381,880$     352,680$     345,552$      340,613$      357,745$      389,825$      420,744$      450,809$      495,874$      430,584$      Change in Net PositionGovernmental activities61,911$       31,965$       11,843$        (11,758)$       (18,357)$       27,229$        37,710$        82,088$        238,275$      200,767$      Business‐type activities17,414         22,028         19,316          19,554          16,707          9,042             31,178          58,991          42,784          46,590          Total primary government79,325$       53,993$       31,159$        7,796$          (1,650)$         36,271$        68,888$        141,079$      281,059$      247,357$      Fiscal Year(unaudited)LAST TEN FISCAL YEARS (CONTINUED)(amounts expressed in thousands)(accrual basis of accounting)CHANGE IN NET POSITIONCOLLIER COUNTY, FLORIDA157 Fiscal Property Gas Sales Tourist OtherYear Tax Tax Tax Tax Taxes (1) Total2006 293,240          20,028       34,671       13,629        9,142        370,710        2007 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        2015259,779          19,547       38,573       21,188        7,322        346,409        (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 year 2008, this changed in 2009. 158 2009 2008 2007 2006General fund   Reserved8,962$          6,602$          3,706$          963$                Unreserved38,924          61,953          77,619          65,938          Total general fund47,886$        68,555$        81,325$        66,901$        All other governmental funds   Reserved105,991$      142,728$      294,512$      197,303$        Unreserved, reported in:       Special revenue funds114,208        128,966        124,213        117,489               Debt service funds1,587             1,951            2,621             5,634                   Capital projects funds140,544        160,736        107,888        258,851        Total all other governmental funds362,330$      434,381$      529,234$      579,277$     2015 2014 2013 2012 2011 2010General fund (1)   Nonspendable3,546$          19,843$        15,744$        12,914$        11,805$        9,460$             Restricted345                125                96                  110                ‐                     ‐                        Committed‐                     ‐                     ‐                     ‐                     ‐                     ‐                        Assigned1,299             850                813                952                1,114             2,182                Unassigned55,002          57,781          56,497          57,091          54,459          59,705          Total general fund60,192$        78,599$        73,150$        71,067$        67,378$        71,347$        All other governmental funds   Nonspendable3,112$          53,544$        46,049$        ‐$                   ‐$                   107,626$         Restricted293,281        242,981        223,700        209,352        229,546        232,699           Committed25,663          27,349          29,810          47,406          48,445          48,764             Assigned30,800          28,391          36,364          80,771          79,556          34,215             Unassigned(514)               (62,085)         (55,212)         (48,944)         (40,258)         23,192          Total all other governmental funds 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.(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)(unaudited)Fiscal Year159 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Revenues:Taxes300,341$  282,315$  285,765$  284,124$  296,640$  333,554$  348,780$    357,656$    380,983$  327,605$  Licenses, permits and impact fees51,319       40,631       35,168       30,436       23,695       28,920       25,950        54,052        100,329    96,335       Intergovernmental92,818       89,392       83,667       79,402       74,453       86,445       69,883        77,452        93,186       113,128    Charges for services37,172       35,149       32,435       30,739       27,855       27,122       35,928        40,699        46,127       43,083       Fines and forfeitures2,866         3,252         3,712         4,205         3,882         5,730         5,916          3,786          4,081         4,835         Interest income4,606         2,393         1,406         2,197         3,602         4,306         11,256        33,580        48,262       36,182       Special assessments3,132         2,922         2,924         3,035         2,725         2,848         2,853          2,942          3,240         1,264         Miscellaneous 16,063       11,553       4,833         4,664         10,565       6,380         11,344        10,667        7,337         9,074         Total revenues508,317    467,607    449,910    438,802    443,417    495,305    511,910      580,834      683,545    631,506    Expenditures:Current:   General government78,147       73,739       75,725       73,812       79,499       82,409       95,689        96,898        96,483       83,821          Public safety167,788    163,169    153,566    151,858    160,890    165,017    168,592      175,743      168,602    177,933       Physical environment16,157       11,276       13,790       22,870       14,251       9,974         10,608        9,314          11,760       9,799            Transportation36,992       38,789       37,170       42,176       50,741       43,677       41,171        48,253        39,105       33,735          Economic environment9,159         9,265         14,436       14,393       7,841         11,122       12,125        12,619        10,241       4,719            Human services13,151       12,367       12,254       10,988       13,075       12,116       11,277        12,855        12,237       11,819          Culture and recreation37,523       34,114       33,744       34,253       35,745       37,569       37,212        36,456        35,325       29,172       Debt service:   Principal20,039       18,510       25,125       31,602       36,493       34,274       48,085        43,080        36,144       20,977          Interest13,555       14,177       17,565       18,149       20,933       20,340       21,498        21,816        22,407       22,533          Payment to refunding bond escrow‐                  2,086         132            ‐                  ‐                  ‐                  ‐ ‐ ‐                  ‐                     Other fiscal charges21              173            2,165         1,082         434            891            116              165              61              36              Capital outlay62,186       63,613       61,278       49,406       38,726       69,809       176,681      285,809      290,581    255,569        Total expenditures454,718    441,278    446,950    450,589    458,628    487,198    623,054      743,008      722,946    650,113         Excess (deficit) of revenues        over (under) expenditures53,599       26,329       2,960         (11,787)     (15,211)     8,107         (111,144)     (162,174)     (39,401)     (18,607)     Fiscal Year(amounts expressed in thousands)COLLIER COUNTY, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)160 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Other 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 leases1,915         ‐                  236            ‐                  ‐                  ‐                   ‐                   ‐                  1,048          Loans issued‐                  ‐                  ‐                  ‐                  ‐                  13,500        69,391        22,390       40,466        Sale of capital assets595            314            233            313            70              248            301              245              365            940             Insurance proceeds379            316            300            270            384            310            753              208              885            792             Transfers in196,026    97,854       90,637       91,524       107,167    105,394    143,275      144,824      166,113    154,580     Transfers out(208,760)   (110,052)   (102,061)   (103,738)   (118,037)   (114,905)   (155,888)     (163,075)     (181,471)   (168,006)       Total other financing sources (uses)(9,845)       (11,410)     (8,751)       (13,228)     (10,339)     (8,107)       15,185        57,839        3,782         29,820       Special item ‐ registry bond ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  3,239          (3,288)         ‐                  ‐                  Net change in fund balances43,754$   14,919$   (5,791)$    (25,015)$  (25,550)$  ‐$              (92,720)$    (107,623)$ (35,619)$  11,213$   Debt service as a percentage of noncapital   expenditures8.56% 9.25% 11.66% 12.67% 13.78% 13.30% 15.61% 14.23% 13.56% 11.04%Fiscal Year(amounts expressed in thousands)COLLIER COUNTY, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS (CONTINUED)(modified accrual basis of accounting)161 Total Estimated Assessed Fiscal YearCentrally Less: Total Taxable Direct ActualValue1 as aEnded Residential Personal Assessed Tax Assessed Tax Taxable Percentage of September 30 Property Property Property Exempt Value Rate Value Actual Value200666,375,040         1,956,646         143                6,890,007       61,441,822             4.9433       68,331,829       100%200782,909,061         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%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)162 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 Total2006 3.8772    0.9161       0.1500     4.9433      5.9730   1.3423               12.2586     2007 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     Sources:  Property Appraiser Recapitulation Report  Collier County 2013 Annual BudgetBasis for property tax rates is 1 mill per $1,000 of assessed value.  Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1.  Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year.Other163 PropertyPercent ofPropertyPercent ofTaxesTotal TaxesTotal             Owner/TaxpayerLevied Rank Taxes LeviedLevied Rank Taxes LeviedFlorida Power & Light Company2,772,355$          1 0.36%2,295,676$         1 0.29%HHR Naples LLC1,623,995             2 0.21%‐‐                Moorings, Inc The1,146,311             3 0.15%849,977               7 0.11%1Marco Hotel LLC 1,070,714             4 0.14%‐‐                Lee County Electric Co‐Op Inc908,838                5 0.12%‐‐                Mercato LLP819,225                6 0.11%‐‐                2Century Link 800,795              7 0.10%‐‐              Wal‐Mart Stores East LP793,290                8 0.10%‐‐                Coastland Center LLC782,185                9 0.10%‐‐                Naples HMA, Inc.752,471                10 0.08%‐‐                HMC BN LTD Partnership‐‐                 1,774,333            2 0.23%Sprint‐Florida Incorporated‐‐                 1,739,841            3 0.22%City National Bank of Miami‐‐               1,061,066           4 0.14%Coastland Center Joint Venture‐‐               992,480              5 0.13%WCI Communities, Inc.‐‐                 873,064               60.11%CDC Land Investments, Inc.‐‐                 779,601               8 0.10%CC‐Naples Inc‐‐                 765,967               9 0.10%Gerry, Sandra‐‐                 702,607               10 0.09%Total11,470,179$       1.47%11,834,612$      1.52%Total Property Taxes Levied 778,888,377$     782,222,053$     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.1Marco Hotel was City National Bank of Miami in 20062Century Link was Sprint in 200620152006COLLIER COUNTY, FLORIDAPRINCIPAL TAXPAYERS COUNTY‐WIDE2015 TAX ROLL(unaudited)164 Fiscal Year Total TaxEnded Levy for Collections inSeptember 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy2006 307,068          293,129          95.5% 109                             293,238          95.5%2007 362,568          344,945          95.1% 1,522                          346,467          95.6%2008 343,906          325,722          94.7% 1,191                          326,913          95.1%2009 329,070          312,096          94.8% 2,546                          314,642          95.6%2010 314,176          297,953          94.8% 1,355                          299,308          95.3%2011 275,704          260,961          94.7% 482                             261,443          94.8%2012 261,137          247,749          94.9% 542                             248,291          95.1%2013 262,037          248,648          94.9% 1,197                          249,845          95.3%2014 255,354          243,137          95.2%615                             243,752          95.5%2015271,893          259,121          95.3%‐                                  259,121          95.3%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)165 GeneralLoans andLoans andTotal PercentageFiscal Obligation Revenue Notes Capital Revenue Notes Capital Primary of Personal PerYearBonds, net2Bonds, net2Payable LeasesBonds, net2Payable Leases GovernmentIncome1Capita12006 31,344          446,061       51,546        1,029      55,404        124,629        ‐               710,013          5.59% 2,395     2007 27,342          425,233       57,331        897         163,286      106,932       68            781,089          5.13% 2,539     2008 29,100          409,043       103,461      752         158,709      103,903       618          805,586          4.48% 2,574     2009 37,700          392,124       89,590        599         153,973      106,935       492          781,413          3.94% 2,493     2010 29,854          435,590       19,690        439         148,782      106,509       636          741,500          3.76% 2,352     2011 14,684          415,855       16,914        269         143,992      99,517         387          691,618          3.62%2,174     2012 9,455            391,123       10,224        412         138,983      92,438         175          642,810          3.31% 1,962     2013 4,173            373,862       7,923           323         106,565      111,786       40            604,672          3.01% 1,818     2014 3,780            368,107       7,081           230         95,570        113,013       1,222      589,003          2.67% 1,734     2015 3,369            348,277       6,401           1,519      89,690        104,475       1,074      554,805          2.15% 1,588     1See the Schedule of Demographic and Economic Statistics for personal income and population data.2For fiscal year 2014, bonds are shown net of bond premiums only.Governmental Activities Business‐type ActivitiesCOLLIER COUNTY, FLORIDARATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)166 Percentage ofEstimatedGeneral Less: Amounts Actual TaxableFiscal Obligation Available in DebtValue1of PerYear Bonds Service Fund Total PropertyCapita2200629,530,000            22,576                       29,507,424        0.043%90                         200725,815,000            4,312                          25,810,688        0.030%77                         200827,830,000            374,496                     27,455,504        0.030%82                         200936,719,204            451,641                     36,267,563        0.041%109                       201029,161,925            496,997                     28,664,928        0.036%86                         201114,280,000            401,748                     13,878,252        0.020%43                         20129,340,000              858,621                     8,481,379          0.013%26                         20134,155,000              446,841                     3,708,159          0.006%11                         20143,765,000              1,179,024                  2,585,976          0.005%8                           20153,355,000              1,069,576                  2,285,424          0.005%7                           1See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.2See the Schedule of Demographic and Economic Statistics population data.COLLIER COUNTY, FLORIDARATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS(unaudited)167 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 and Notes Payable (3)3,760,030$          100.00% 3,760,030$          Gas Tax Bonds (3)115,298,994        100.00% 115,298,994        Special Obligation Bonds (3)219,433,625        100.00% 219,433,625        Capital Leases (3)1,519,495            100.00% 1,519,495            Notes Payable ‐ CRA Taxable6,009,577            100.00% 6,009,577             Subtotal, Direct Debt346,021,721        346,021,721       Overlapping Debt:  N/A‐ 0.00%‐ Underlying Debt: City of Naples (4)10,068,000          5.65% 569,307               City of Marco Island (5)13,836,671          4.75% 657,801               City of Everglades (6)‐ 0.12%‐   Subtotal, Underlying Debt23,904,671          1,227,108           Total Direct, Overlapping and Underlying Debt369,926,392$      347,248,829$    (1) Population numbers obtained from www.freida.labormarketinfo.com.(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.(unaudited)(unaudited)COLLIER COUNTY, FLORIDADIRECT, OVERLAPPING AND UNDERLYING GOVERNMENTAL ACTIVITIES DEBTAS OF SEPTEMBER 30, 2015LEGAL DEBT MARGIN INFORMATIONAS OF SEPTEMBER 30, 2015168 LegallySales Gas AvailableFiscal Tax Tax Non‐Ad ValoremYear Collections Principal Interest Coverage Collections Principal Interest Coverage Collections(5) Principal Interest Coverage2006 34,671                   6,665            12,690     1.79 20,029       6,490       8,091          1.37‐                             ‐            ‐                 N/A200732,568                   9,315            11,059     1.60 19,598       6,305       8,274          1.34‐                            ‐            ‐                 N/A200830,004                   8,840            10,547     1.55 18,860       6,490       8,089          1.29‐                            ‐            ‐                 N/A200926,779                   9,205            10,235     1.38 18,456       6,660       7,922          1.27‐                            ‐            ‐                 N/A201026,927                   9,450            9,958       1.39 18,415       6,935       7,645          1.26‐                            ‐            ‐                 N/A201128,364                   9,760            8,978       1.51 18,312       7,185       7,399          1.2676,416                 1,545    2,597        18.45201229,713                   7,560            5,656       2.25 18,525       7,505       7,077          1.2782,866                 4,265    4,265        9.71201332,168                   ‐                    3,162       10.17 18,229       7,855       6,453          1.2786,640                 9,695    7,249        5.11201435,786                   ‐                    ‐                N/A 18,556       8,040       4,018          1.5491,043                 9,145    9,674        4.84201538,573                   ‐                    ‐                N/A 19,547       9,440       3,697          1.49102,375               8,885    9,426        5.59Water/ Sewer Less: NetFiscal Charges Operating AvailableYear and Other(1) Expenses(2) Revenue Principal Interest Coverage(3)200684,262                   49,563         34,699      4,455       2,833           4.76200798,140                   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           4.50(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. Governmental Activities:Debt ServiceDebt ServiceCOLLIER COUNTY, FLORIDAPLEDGED‐REVENUE COVERAGELAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)Sales Tax BondsDebt ServiceGas Tax Bonds Special Obligation Bonds(4)Debt ServiceBusiness‐type Activities:Water and Sewer Revenue Bonds169 Per CapitaFiscal Personal Personal Median School UnemploymentYear Population(1) Income(1) Income(1) Age(2) Enrollment(3) Rate(4)2006 326,658             12,711,343,000      42,846         44.7           43,288                2.7%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             25,763,656,000      73,869         47.5           45,228                5.2%Sources: (1)  www.bea.gov (2)  Florida Statistical Abstract (Table 1.51) (3)  Collier County School Board, based on full time equivalent enrollment (4)  www.floridajobs.org(unaudited)COLLIER COUNTY, FLORIDADEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN FISCAL YEARS170 Percent of Percent ofTotal County Total CountyEmployer Employees Rank Employment Employees Rank EmploymentCollier County Public Schools 5,280                 1 4.29% 5,000                 1 4.62%NCH Healthcare System 4,000                 2 3.25% 3,500                 2 3.24%Publix Supermarkets 2,805                 3 2.28% 2,221                 5 2.05%Collier County Government (excl. Sheriff) 2,137                 4 1.74% 2,364                 4 2.19%Arthex, Inc 1,709                 5 1.39%‐                           ‐                           Collier County Sheriff's Office 1,397                 6 1.13% 1,100                 7 1.02%Ritz Carlton Hotel 1,100                 7 0.89% 1,500                 6 1.39%Country Club of Naples 1,050                 8 0.85%‐                      ‐                           Seminole Casino ‐ Immokalee 875                     9 0.70%‐                      ‐                           Marriott Corporation775                     10 0.63%843                     80.78%Employee Professionals‐                     ‐                  3,394                 33.14%Naples Grande Beach Resort (Registry Resort)‐                     ‐                  830                     90.77%Cleveland Clinic‐                     ‐                  790                     10 0.73%Other employers102,054             82.85%86,577               80.07% Totals123,182             100.00%108,119             100.00%Sources:Southwest Florida Economic Development AllianceCollier County Public SchoolsNCH Healthcare SystemPublix Corporate OfficeArthrex, Inc.2016 Collier County Budget BookCOLLIER COUNTY, FLORIDAPRINCIPAL EMPLOYERS(unaudited)20152006171 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Function:General government 1,217        1,216        1,203        1,222        1,219        1,252        1,342        1,398        1,394        1,342        Public safety1,096        1,072        1,061        1,061        1,062        1,053        1,064        1,085        1,103        1,027        Physical environment69              67              67              69              66              66              69             74              77              76              Transportation192            187            187            199            213            234            257           281            280            280            Economic environment27              28              26              28              27              22              22             20              19              18              Human services56              53              51              50              50              54              55             56              61              59              Culture and recreation298            294            289            293            293            308            328           363            379            371            Water and Sewer342            340            342            344            344            335            335           358            346            327            Solid Waste27              28              29              27              27              27              27             27              27              27              Emergency Medical Services193            172            172            172            172            183            185           201            206            206            Airport Authority14              14              16              16              16              16              16             15              15              14              Collier Area Transit3                3                3                3                1                1                1                1                1                ‐                 Total3,534        3,474        3,446        3,484        3,490        3,551        3,701        3,879        3,908        3,747        (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 Year172 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Function:Police:Physical arrests 9,347             11,277          11,277          11,297          20,180          13,310          15,671          20,226          22,028          25,657          Parking violations 931                964                1,182             1,175             1,479             1,283             1,297             843                1,753             2,124             Traffic violations 16,355          19,868          22,211          19,237          19,680          22,051          28,308          49,831          64,372          58,242          Fire:Fires reported 82                  37                  52                  46                  468                498                533                586                590                654                Emergency responses (exclude fires) 1,093             1,080             1,024             764                569                825                760                756                743                1,058             Number of calls answered1,175             1,117             1,076             810                1,037             1,323             1,293             1,342             1,333             1,712             Transportation:Collier Area Transit ridership1,177,029     1,181,530     1,361,294     1,207,866     1,154,702     1,064,910     1,109,710     1,166,358     1,180,147     1,052,536     Street resurfacing (lane miles)348078 142 131                85                  97                  52                  44                  47                  Culture and recreation:Beach parking stickers issued134,051        181,878        122,415        114,778        312,144        98,093          132,218        80,542          76,344          54,074          Library circulation2,302,017     2,578,588     2,578,589     2,768,648     2,760,427     2,969,238     3,034,439     3,000,394     2,916,523     2,722,539     Water:New connections2,204             1,878             1,417             1,189             921                909                704                553                1,593             1,897             Wastewater:Average daily sewage treatment 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  17,310,468     (thousands of gallons)Sources:Police‐Collier County Sheriff's DepartmentFire‐Collier County Fire Control DistrictTransportation‐Collier County Alternative Transportation DepartmentTransportation‐Collier County Growth Management‐Road and BridgeCulture and Recreation‐Collier County Parks and Recreation DepartmentCulture and Recreation‐Collier County Public LibraryWater‐Collier County Utility BillingWastewater‐Collier County Wastewater DepartmentFiscal YearCOLLIER COUNTY, FLORIDAOPERATING INDICATORS BY FUNCTIONLAST TEN FISCAL YEARS(unaudited)173 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006Function:Public Safety:   Police stations 7 7 7 7 7 7 7 7 7 7    Patrol units276               276               275               275               275               275               275               275               275               272               Fire:   Fire stations4 4 3 3 3 3 3 2 2 2 Highways and streets:   Streets (miles)1,149            1,151            1,184            1,184            1,184            1,184            1,184            1,184            1,147            1,147               Streetlights4,958            4,958            4,868            4,781            4,759            4,701            4,485            3,767            3,987            3,620               Traffic signals360               370               353               297               295               283               283               224               216               200               Culture and recreation:   Parks acreage1,521            1,521            1,521            1,520            1,511            1,473            1,473            1,440            1,436            1,527               Parks61                 61                 61                 61                 60                 59                 59                 56                 55                 47                    Swimming pools8 8 8 8 8 8 8 7 7 7    Tennis courts45                 45                 45                 45                 45                 45                 45                 45                 45                 45                    Community centers9 8 8 8 8 8 8 8 8 8    Libraries10                 10                 10                 10                 10                 10                 10                 9 9 9    Number of volumes in libraries605,408        683,237        692,229        673,131        741,389        797,823        797,978        647,484        769,717        651,592        Water:   Number of customers59,443          57,548          55,878          54,190          53,181          51,796          51,499          51,136          59,257          57,664             Water mains (miles)986               925               888               888               886               886               886               870               860               682                  Maximum daily capacity (per 1,000 gallons) 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  34,673,000  Wastewater:   Sanitary sewers (miles)1,028            1,030            1,081            1,116            1,115            1,095            1,081            1,053            871               798                  Primary and secondary drainage facilities306               306               305               305               303               303               303               303               303               303               Fiscal YearCOLLIER COUNTY, FLORIDACAPITAL ASSET STATISTICS BY FUNCTIONLAST TEN FISCAL YEARS(unaudited)174   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 An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated May 10, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2015-001 to be a material weakness. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2015-002 to be a significant deficiency. 177 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. County’s Response to Findings The County’s response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs in which the findings are reported. The County’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 178   CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project We have audited Collier County, Florida’s (County) compliance with the types of compliance requirements described in OMB Circular A-133 Compliance Supplement and in Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct and material effect on each of the County’s major federal programs and state projects for the year ended September 30, 2015. The County’s major federal programs and state projects are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the County’s major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133 and Chapter 10.550, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the County’s compliance. 179 Honorable Board of County Commissioners Collier County, Florida   Opinion on Each Major Federal Program and State Project In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2015. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as item 2015-003. Our opinion on each major federal program is not modified with respect to these matters. The County’s response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs was not subjected to the auditing procedures Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2015-003 to be a material weakness. 180 Honorable Board of County Commissioners Collier County, Florida   A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2015-004, 2015-005, 2015-006 to be significant deficiencies. The County’s responses to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The County’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the result of that testing based on the requirements of OMB Circular A-133 and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 181 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 88,824$               ‐$                           Cooperative Forestry Assistance 10.664 Collier County 1,050                   ‐                             Total Department of Agriculture 89,874                 ‐                             Department of Housing and Urban Development Direct Programs: Office of Community Planning and Development: Community Development Block Grants / Entitlement Grants 14.218 B‐04‐UC‐12‐0016 67,246                 ‐                             Community Development Block Grants / Entitlement Grants 14.218 B‐05‐UC‐12‐0016 1,801                   ‐                             Community Development Block Grants / Entitlement Grants 14.218 B‐08‐UN‐12‐0003 69,321                 ‐                             Community Development Block Grants / Entitlement Grants 14.218 B‐11‐UC‐12‐0016 190,596               178,442                Community Development Block Grants / Entitlement Grants 14.218 B‐11‐UN‐12‐0003 63,863                 ‐                             Community Development Block Grants / Entitlement Grants 14.218 B‐12‐UC‐12‐0016 106,539               95,217                  Community Development Block Grants / Entitlement Grants 14.218 B‐13‐UC‐12‐0016 783,963               756,713                Community Development Block Grants / Entitlement Grants 14.218 B‐14‐UC‐12‐0016 866,434               423,987                Total CFDA 2,149,763            1,454,359             Emergency Solutions Grant Program 14.231 E‐12‐UC‐12‐0024E 2,364                   2,364                    Emergency Solutions Grant Program 14.231 E‐13‐UC‐12‐0024 80,706                 64,847                  Emergency Solutions Grant Program 14.231 E‐14‐UC‐12‐0024 64,851                 52,593                  Total CFDA 147,921               119,804                Home Investment Partnerships Program 14.239 M‐03‐UC‐12‐0217 19,760                 19,760                  Home Investment Partnerships Program 14.239 M‐04‐UC‐12‐0217 47,660                 47,660                  Home Investment Partnerships Program 14.239 M‐05‐UC‐12‐0017 40,702                 40,702                  Home Investment Partnerships Program 14.239 M‐06‐UC‐12‐0217 92,946                 92,946                  Home Investment Partnerships Program 14.239 M‐07‐UC‐12‐0217 35,538                 35,538                  Home Investment Partnerships Program 14.239 M‐08‐UC‐12‐0217 232,374               168,957                Home Investment Partnerships Program 14.239 M‐10‐UC‐12‐0217 75,722                 ‐                             Home Investment Partnerships Program 14.239 M‐11‐UC‐12‐0217 43,795                 43,795                  Home Investment Partnerships Program 14.239 M‐13‐UC‐12‐0217 845                       ‐                             Home Investment Partnerships Program 14.239 M‐14‐UC‐12‐0217 61,383                 ‐                             Total CFDA 650,725               449,358                Indirect Programs: Florida Department of Economic Opportunity: Community Development Block Grants / State's Program and Non‐Entitlement Grants in Hawaii 14.228 07DB‐3V‐09‐21‐01‐Z01 1,921                   ‐                             Community Development Block Grants / State's Program and Non‐Entitlement Grants in Hawaii 14.228 08DB‐D3‐09‐21‐01‐A03 1,973                   ‐                             Community Development Block Grants / State's Program and Non‐Entitlement Grants in Hawaii 14.228 10DB‐D4‐09‐21‐01‐K09 724,124               300,776                Community Development Block Grants / State's Program and Non‐Entitlement Grants in Hawaii 14.228 12DB‐P5‐09‐21‐01‐K39 2,642,262            157,021                Total CFDA 3,370,280            457,797                Total Department of Housing and Urban Development 6,318,689            2,481,318             Department of the Interior Direct Programs: Office of the Secretary: Payments in Lieu of Taxes 15.226 Collier County 1,204,083            ‐                             Fish and Wildlife Service: Partners for Fish and Wildlife 15.631 F14AC00709 9,994                   ‐                             National Wildlife Refuge Fund 15.659 Collier County 155,985               ‐                             Total Department of the Interior 1,370,062            ‐                             Department of Justice Direct Programs: Violence Against Women Office: Supervised Visitation, Safe Havens for Children 16.527 2009‐CW‐AX‐K011 151,529               ‐                             (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, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE 182 CFDA #/Transfers to  CSFA #Grant/Contract  Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Office of Community Oriented Policing Services: Public Safety Partnership and Community Policing Grants 16.710 2012ULWX0008 61,456$               ‐$                           Public Safety Partnership and Community Policing Grants 16.710 2013ULWX0047 180,708               ‐                             Total CFDA 242,164               ‐                             Criminal Division: Equitable Sharing Program 16.922 Collier County Sheriff 65,274                 ‐                             Bureau of Justice Assistance: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2014‐DJ‐BX‐0305 37,757                 ‐                             Indirect Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015‐JAGC‐COLL‐1‐R3‐109 94,809                 ‐                             Total CFDA 132,566               ‐                             Florida Office of the Attorney General: Crime Victim Assistance 16.575 V005‐14129 126,718               ‐                             Florida Department of Children and Families ‐ Florida Coalition Against  Domestic Violence: Violence Against Women Formula Grants 16.588 15‐8008‐LE‐INV 74,456                 ‐                             Violence Against Women Formula Grants 16.588 16‐8008‐LE‐INV 31,472                 ‐                             Total CFDA 105,928               ‐                             Total Department of Justice 824,179               ‐                             Department of Transportation Direct Programs: Federal Aviation Administration (FAA): Airport Improvement Program 20.106 3‐12‐0031‐008‐2013 240,847               ‐                             Airport Improvement Program 20.106 3‐12‐0142‐010‐2013 125,269               ‐                             Total CFDA 366,116               ‐                             Federal Transit Administration (FTA): Federal Transit Cluster: Federal Transit_Capital Investment Grants 20.500 FL‐03‐0264‐00 65,461                 ‐                             Federal Transit_Capital Investment Grants 20.500 FL‐04‐0033‐00 236,348               ‐                             Federal Transit_Capital Investment Grants 20.500 FL‐04‐0034‐00 226,710               ‐                             Federal Transit_Capital Investment Grants 20.500 FL‐04‐0047‐00 63,596                 ‐                             Federal Transit_Capital Investment Grants 20.500 FL‐04‐0117‐00 171,674               ‐                             Total CFDA 763,789               ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X699‐00 510,850               ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X731‐00 25,413                 ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X766‐00 27,403                 ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X784‐00 154,435               ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X816‐00 1,444,763            ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X853‐00 1,009,928            ‐                             Federal Transit_Formula Grants 20.507 FL‐95‐X069‐00 1,139,119            ‐                             ARRA Federal Transit_Formula Grants 20.507 ARRA‐FL‐96‐X019‐00 14,970                 ‐                             Total CFDA 4,326,881            ‐                             Bus and Bus Facilities Formula Program 20.526 FL‐34‐0004‐00 308,334               ‐                             Total Federal Transit Cluster 5,399,004            ‐                             Indirect Programs: Florida Department of Transportation: Highway Planning and Construction 20.205 425670‐1 / A4377 647,412               ‐                             Highway Planning and Construction 20.205 429897‐1 / ARF41 306,919               ‐                             Highway Planning and Construction 20.205 429899‐1 / G0258 55                         ‐                             Highway Planning and Construction 20.205 429900‐1 / ARR00 58                         ‐                             Highway Planning and Construction 20.205 430868‐1 / AR481 172,313               ‐                             Highway Planning and Construction 20.205 430875‐1 / ARS55 58                         ‐                             Total CFDA 1,126,815            ‐                             Metropolitan Transportation Planning and State and  Non‐Metropolitan Planning and Research 20.505 410113‐1 / AQR14 206,777               ‐                             Formula Grants for Rural Areas 20.509 410120‐1 / AQR01 404,500               ‐                             (Continued) 183 CFDA #/Transfers to  CSFA #Grant/Contract  Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 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 FL‐16‐0038 385,764$              ‐$                           Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0039 10,838                  ‐                             Total CFDA 396,602               ‐                             Total Department of Transportation 7,899,814            ‐                             U.S. Election Assistance Commission Indirect Programs: Florida Department of State: Help America Vote Act Requirements Payments 90.401 2013‐2014‐0001 33                         ‐                             Help America Vote Act Requirements Payments 90.401 2014‐2015‐0001‐COL 45,417                 ‐                             Total U.S. Election Assistance Commission 45,450                 ‐                             Department of Health and Human Services Indirect Programs: Florida Department of Elder Affairs ‐ Area Agency on Aging for Southwest Florida, Inc.: Aging Cluster: Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.14 19,536                 ‐                             Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.15 48,013                 ‐                             Total CFDA 67,549                 ‐                             Special Programs for the Aging_Title III, Part C_Nutrition Services 93.045 OAA 203.14 115,206               ‐                             Special Programs for the Aging_Title III, Part C_Nutrition Services 93.045 OAA 203.15 370,405               ‐                             Total CFDA 485,611               ‐                             Nutrition Services Incentive Program 93.053 NSIP 203.14 740                       ‐                             Nutrition Services Incentive Program 93.053 NSIP 203.15 39,778                 ‐                             Total CFDA 40,518                 ‐                             Total Aging Cluster 593,678               ‐                             National Family Caregiver Support, Title III, Part E 93.052 OAA 203.14 23,273                 ‐                             National Family Caregiver Support, Title III, Part E 93.052 OAA 203.15 98,666                 ‐                             Total CFDA 121,939               ‐                             Florida Department of Revenue: Child Support Enforcement 93.563 COC11 300,590               ‐                             Florida Department of State: Voting Access for Individuals with Disabilities_Grants to States 93.617 2014‐2015‐0003‐CLL 8,616                   ‐                             Total Department of Health and Human Services 1,024,823            ‐                             Corporation for National and Community Service  Direct Programs: Retired and Senior Volunteer Program 94.002 12SRSFL012 37,933                 ‐                             Retired and Senior Volunteer Program 94.002 15SRSFL015 8,013                   ‐                             Total Corporation for National and Community Service 45,946                 ‐                             Department of Homeland Security Indirect Programs: Florida Executive Office of the Governor: Disaster Grants ‐ Public Assistance (Presidentially Declared  Disasters) 97.036 13‐DB‐73‐09‐21‐02‐530 1,979,531            ‐                             Disaster Grants ‐ Public Assistance (Presidentially Declared  Disasters)97.036 13‐IS‐3S‐09‐21‐02‐571 202,178               ‐                             Total CFDA 2,181,709            ‐                             Emergency Management Performance Grants 97.042 15‐FG‐40‐09‐21‐01‐078 101,065               ‐                             Homeland Security Grant Program 97.067 14‐DS‐L5‐09‐21‐01‐343 2,100                   ‐                             Homeland Security Grant Program 97.067 14‐DS‐L5‐09‐21‐23‐369 58,569                 ‐                             Homeland Security Grant Program 97.067 15‐DS‐P4‐09‐21‐02‐277 5,425                   ‐                             Total CFDA 66,094                 ‐                             Total Department of Homeland Security 2,348,868            ‐                             19,967,705$       2,481,318$          (Continued) TOTAL EXPENDITURES OF FEDERAL AWARDS 184 CFDA #/Transfers to  CSFA #Grant/Contract  Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Direct Projects: Emergency Management Programs 31.063 15‐BG‐83‐09‐21‐01‐011 74,920$               ‐$                           Emergency Management Programs 31.063 16‐BG‐83‐09‐21‐01‐011 35,429                 ‐                             Total Florida Executive Office of the Governor 110,349               ‐                             Direct Projects: Beach Management Funding Assistance Program 37.003 14CO1 154,184               ‐                             Total Florida Department of Environmental Protection 154,184               ‐                             Direct Projects: Local Economic Development Initiatives 40.012 SL007 721,996               ‐                             Indirect Projects: Florida Sports Foundation: Enterprise Florida, Inc 40.003 Football University Nat'l Championship 16,000                 ‐                             Enterprise Florida, Inc 40.003 HITS Triathlon Series 3,500                   ‐                             Total CSFA 19,500                 ‐                             Florida Tourism Industry Marketing Corporation dba VISIT FLORIDA ®: Visit Florida 40.006 Naples, Marco Island, Everglades CVB 23,916                 ‐                             Total Florida Department of Economic Opportunity 765,412               ‐                             Direct Projects: State Aid to Libraries 45.030 11‐ST‐09 63,911                 ‐                             State Aid to Libraries 45.030 12‐ST‐08 7,575                   ‐                             State Aid to Libraries 45.030 13‐ST‐08 178,047               ‐                             State Aid to Libraries 45.030 14‐ST‐08 1,265                   ‐                             Total Florida Department of State and Secretary of State 250,798               ‐                             Florida Housing Finance Corporation Direct Projects: State Housing Initiatives Partnership (SHIP) Program 52.901 FY 11/12 140,873               60,873                  State Housing Initiatives Partnership (SHIP) Program 52.901 FY 12/13 40,000                 ‐                             State Housing Initiatives Partnership (SHIP) Program 52.901 FY 13/14 360,875               128,968                State Housing Initiatives Partnership (SHIP) Program 52.901 FY 14/15 106,253               1,250                    Total Florida Housing Finance Corporation 648,001               191,091                Direct Projects: Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 410656‐1 / ARP71 51,662                 ‐                             Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 432027‐1 / 432028‐1 / ARF15 631,014               ‐                             Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 432027‐1 / 432028‐1 / GO135 148,610               ‐                             Total CSFA 831,286               ‐                             Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 432029‐1 / ARH55 18,937                 ‐                             Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 432029‐1 / G0216 5,966                   ‐                             Total CSFA 24,903                 ‐                             Aviation Development Grants 55.004 430969‐1 / AR519 (4,234)                  ‐                             Aviation Development Grants 55.004 430983‐1 / AR513 6,959                   ‐                             Total CSFA 2,725                   ‐                             Public Transit Block Grant Program 55.010 410139‐1 / AQQ16 1,025,249            ‐                             Public Transit Service Development Program 55.012 432836‐1 / AQQ85 28,106                 ‐                             Public Transit Service Development Program 55.012 435214‐1 / ARJ84 124,028               ‐                             Total CSFA 152,134               ‐                             (Continued) 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 185 CFDA #/Transfers to  CSFA #Grant/Contract  Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Transportation Regional Incentive Program (TRIP)55.026 425840‐1 / ARF43 2,144,913$         ‐$                           Alligator Alley Mile Marker 63 Fire Station 55.036 435389‐1 / ARF81 2,452,707            ‐                             Total Florida Department of Transportation 6,633,917            ‐                             Florida Department of Children and Families Direct Projects: Public Safety, Mental Health, and Substance Abuse Local  Matching Grant 60.115 LHZ46 219,256               184,423                Total Florida Department of Children and Families 219,256               184,423                Florida Department of Health Direct Projects: County Grant Awards 64.005 C3011 54,195                 ‐                             Total Florida Department of Health 54,195                 ‐                             Indirect Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly 65.001 HCE 203.14 11,814                 ‐                             Home Care for the Elderly 65.001 HCE 203.15 8,939                   ‐                             Total CSFA 20,753                 ‐                             Alzheimer's Respite Services 65.004 ADI 203.14 208,061               ‐                             Alzheimer's Respite Services 65.004 ADI 203.15 79,457                 ‐                             Total CSFA 287,518               ‐                             Community Care for the Elderly 65.010 CCE 203.14 605,254               ‐                             Community Care for the Elderly 65.010 CCE 203.15 154,050               ‐                             Total CSFA 759,304               ‐                             Total Florida Department of Elder Affairs 1,067,575            ‐                             TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 9,903,687$         375,514$              Florida Department of Elder Affairs 186 Collier County, Florida  Notes to the Schedule of Expenditures of Federal  Awards and State Financial Assistance  Year Ended September 30, 2015    1. Basis of Presentation  The accompanying Schedule of Expenditures of Federal Awards and State Projects (the Schedule)  includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on  the modified accrual basis of accounting for expenditures accounted for in the governmental funds and  the accrual basis of accounting for expenditures in proprietary funds.  Under the modified accrual basis,  revenue is recognized if it is both measurable and available for use during the fiscal year and  expenditures are recognized in the period liabilities are incurred, if measurable.  Under the accrual basis,  expenditures are recognized in the period liabilities are incurred.    The information in the schedule is presented in accordance with the requirements of U.S. Office of  Management and Budget (OMB) Circular A‐133, Audits of States, Local Governments, and Non‐Profit  Organizations, and Section 215.97, Florida Statutes.  Therefore, some amounts presented in the  Schedule may differ from amounts presented, or used in the preparation of, the basic financial  statements for the fiscal year ended September 30, 2015.  2. Contingency  The grant revenue amounts received are subject to audit and adjustment.  If any expenditures or  expenses are disallowed by the grantor agencies as a result of such an audit, any claim for  reimbursement to the grantor agencies would become a liability of the County.    3. Negative Figures on the Schedule of Expenditures  Negative expenditures reported in the Schedules of Expenditures of Federal Awards and State Financial  Assistance are a result of corrections which reduced expenditures in one grant and increased  expenditures in another grant or funding source.   Although the current expenditures on a grant may be  negative, the total of all expenditures on the grant is expected to be positive over its total period of  performance.    187 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   Part I – Summary Auditors’ Results Financial Statement Section Unmodified Yes Yes No Federal Awards Section Yes Yes Unmodified Yes CFDA Number Name of Federal Program or Cluster 14.218 Community Development Block Grants/ Entitlement Grants 15.226 16.710 20.106 Airport Improvement Program 20.509 97.036 Disaster Grants - Public Assistance 20.500, 20.507, 20.526 Federal Transit Cluster 93.044, 93.045, 93.053 Aging Cluster $599,031 Yes Type of auditors’ report issued: Internal control over financial reporting: Identification of major federal programs: Were significant deficiency(ies) identified not considered to be a material weakness(es) Type of auditors’ report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510 (a) Internal control over compliance: Material weakness(es) identified? Dollar threshold used to determine Type A Federal program Auditee qualified as low-risk auditee? Public Safety Partnership and Community Policing Grants Formula Grants for Rural Areas Material weakness(es) identified? Significant deficiencies identified not considered to be a material weakness(es) Noncompliance material to financial statements noted? Payments in Lieu of Taxes 188 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 No Yes Unmodified CSFA Number Name of State Project 40.012 55.001 Equipment Grant Program 55.010 Public Transit Block Grant Program 55.036 Alligator Alley Mile Marker 63 Fire Station 65.004 Alzheimer's Respite Services $300,000 State Financial Assistance Section Internal control over compliance: Material weakness(es) identified? Were significant deficiency(ies) identified not considered to be a material weakness(es) Type of auditors’ report issued on compliance for major projects: Identification of major State projects: Dollar threshold used to determine Type A State projects Local Economic Development Initiatives Commission for the Transportation Disadvantaged (CTD) Trip and 189 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   Part II - Financial Statement Findings This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of provisions of contracts and grant agreements and abuse related to the financial statements for which Government Auditing Standards requires reporting in a Circular A-133 and Section 215.97, Florida Statutes, audit. 2015-001 Inventory Type of Finding: Material Weakness in Internal Control over Financial Reporting Criteria: County management is responsible for establishing and maintaining internal controls for proper recording of the County’s inventory. Condition: Inventory was not properly recorded on the County’s books for two departments within the general fund for several years. Cause: The individuals who were responsible for reporting the inventory to the Clerk’s office for proper recording on the financial statements were not familiar with the impact in regards to financial reporting. Effect: Inventory was understated in previous years with expenditures overstated in the general fund as well as the Government Wide Statement of Net Position. Recommendation: We recommend that County staff be trained to understand the reporting of inventory to the Clerk’s office for financial reporting purposes. Views of Responsible Officials and Corrective Action Plan: Staff self-reported the end of year inventory reporting omission to the Finance Department. While not properly reported, the inventory was properly tracked, controlled and accounted for. There was no evidence or indication of fraudulent activity identified. A series of trainings have been developed and held for the Administrative Service Department Directors and affected Divisions during September through November of 2015. Training topics reviewed inventory basics, external audit reviews and segregation of duties. 190 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   2015-002 Subcontractor Agreements Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria: The County must have sufficient controls over expenditures to provide reasonable assurance to ensure that costs are allowable under grant agreements and supported by adequate documentation. Such controls would extend to the contractual agreements that govern these expenditures. Condition: The County entered into an agreement with a subcontractor which included specific procurement policies to ensure any purchases were conducted in an open manner resulting in competitive pricing, proper management and oversight, accountability and efficiency, and for the prevention of waste, fraud and abuse. During the term of the agreement, the subcontractor entered into a purchase order with a vendor for over $100,000. The procurement policy requires advertisements for competitive proposals amongst several other items. Not all of the items for this particular procurement were performed by the subcontractor. Cause/Effect: The County Department did not follow establish controls in place as defined by the agreement that the County entered into with the subcontractor. Recommendation: County staff should understand and become familiar with the terms and conditions of their contractor agreements and develop tools to assist in the effective monitoring of the compliance requirements of the agreements. Views of Responsible Officials and Corrective Action Plan: Background: The subcontractor’s purchasing procedures required competition through advertisement for purchase orders above $100,000. Rather, competitive quotations were obtained due to the specialized type of systems furniture specified and to expedite the receipt of goods and assembly prior to the state grant agreement expiration date. On March 8, 2016, the Board of County Commissioners accepted the alternative procurement method, authorized payment and waived the procurement irregularities in the subcontractor’s purchasing policy. Payment in full was issued to the vendor on May 12, 2016. Collier Economic Division staff and team members familiar with the subcontract have provided training to the subcontractor during February 2016 to review the procurement process requirements and proper supporting documentation. Monitoring will continue to take place through review of pay request submittals and communications. 191 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   Part III - Findings and Questioned Costs – Major Federal Programs This section identifies the audit findings required to be reported by Section .501(a) of Circular A- 133 as well as any abuse findings involving federal awards that is material to a major program. 2015-003 Allowable Costs and Activities Federal Program/State Project Information Department of Justice Passed through Office of Community Oriented Policing Services CFDA 16.710 Public Safety Partnerships and Community Policing Grants Award No. 2012ULWX0008 Award No. 2013ULWX0047 Type of Finding: Material Weakness in Internal Control over Compliance Criteria The Collier County Sheriff is required to provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable in accordance with applicable cost principles. Condition The Collier County Sheriff requested reimbursement for salaries and benefits beyond the approved entry level salary per the grant agreement. Context Out of a population of 12 monthly payroll reimbursement claims, the auditor haphazardly selected a sample of 4 monthly claims for testing. 3 of the 4 monthly claims tested include revised calculations that were corrected in May of 2015. Question Costs None Cause Both the Grant Coordinator and the Assistant Finance Director misunderstood the terms of the agreement. Effect The error was corrected during the fiscal year and was not material to the program; however, had the County not detected the unallowed costs, amounts could have been material. 192 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   Recommendation The Collier County Sheriff should implement continued training for the Grant Coordinator and the Assistant Finance Director related to grant compliance. Views of Responsible Officials and Corrective Action Plan When the budget for the COPS Grant was developed it included all salary funding in one category. When some of the initial claims were prepared, amounts were submitted for reimbursement which was above the entry level salaries, but the yearly allocation was not exceeded. When these differences were discovered the Grants Coordinator contacted the COPS Grantor regarding these differences. The Grantor advised to adjust the next claims. The initial claims were never questioned or declined by the Grantor. The Grant Coordinator communicated with the Grantor once the salary differences were discovered on the initial claims. Corrections were made within the grant year minimizing the potential of any questioned or disallowed costs. The Grant Coordinator and Assistant Finance Director have read and understand the terms of the Grants but will review again to ensure grant compliance. Responsible party: Andrea Marsh, Finance Director Planned completion date for corrective action plan: January 2016 2015-004 Reporting Federal Program/State Project Information Department of Justice Passed through Office of Community Oriented Policing Services CFDA 16.710 Public Safety Partnerships and Community Policing Grants Award No. 2012ULWX0008 Award No. 2013ULWX0047 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria The Collier County Sheriff should have review and approval over quarterly reports prior to submission for both performance and financial reports. Condition The same person who prepares the quarterly performance and financial reports submits said reports; thus, there is no independent review. 193 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   Context Out of a population of 12 reports, the auditor haphazardly selected a sample of 4 reports (2 financial and 2 performance) and noted that all reports lacked review and approval prior to submission to the grantor. Question Costs None Cause The Grant Coordinator prepares both the Financial and Performance reports in the COPS online system. She does not provide the data to be input or data inputted to the Assistant Finance Director for review and approval prior to submission. Effect Inaccurate reporting could result in potential loss of funding. Recommendation The Collier County Sheriff should design and implement internal control policies and procedures to ensure accurate reporting through review and approval. Views of Responsible Officials and Corrective Action Plan Financial quarterly reports are a compilation of the previous three months’ claims which and are submitted online. The monthly claims are prepared by the Grants Fiscal Clerk, reviewed by the Grants Coordinator, and reviewed, approved and signed by the Assistant Finance Director. The Grants Coordinator calculates the three monthly claim totals and keys the amount into the quarterly report. The Grants Coordinator verifies that the report balances with the total from the claims for the three months. Future procedures will include the Grants Coordinator printing the screen of the information which was keyed for the report prior to submission. The Assistant Finance Director will review verifying that the total balances to the summation of all the claims for that quarter. Once verified, she will sign the printed screen prior to the report being submitted by the Grants Coordinator. The Finance Director will do a post review once each quarterly report has been submitted. Performance reports are prepared by the Grants Coordinator based on information received from the assigned Program Managers. Future procedures will include a report template which the Program Managers will complete and return to the Grants Coordinator for review. As with the online claims submissions, the Assistant Finance Director will also review the reports before final online submission by the Grants Coordinator. The Finance Director will do a post review once each quarterly report has been submitted. Responsible party: Andrea Marsh, Finance Director Planned completion date for corrective action plan: January 2016 194 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   2015-005 Eligibility Federal Program/State Project Information Department of Health and Human Services Passed through the Florida Department of Elder Affairs – Area Agency on Aging for Southwest Florida, Inc. CFDA 93.044, 93.045, 93.053 Aging Cluster Award 14/15 #HM203.14 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria Only individuals whom have applied for benefits using the proper standardized forms and been properly reviewed, approved and setup in the Client Information and Registration Tracking System (CIRTS) can be provided with meals by the Aging Cluster. Condition One individual was served a total of 5 meals prior to being enrolled in the CIRTS system. Context The auditor selected 40 individuals to test and noted exceptions with one individual who was served 5 meals. Question Costs None Cause Unallowable costs were incurred due to the individual not being properly determined to be eligible. Effect Lack of controls over these expenditures could result in additional unallowable costs being charged to the grant. Recommendation We recommend that the County implement policies and procedures to ensure that all individuals receiving benefits have completed the required applications and have properly been determined to be eligible. 195 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   Views of Responsible Officials and Corrective Action Plan While enrollment of one individual into CIRTS did not occur within the required timeframe, all requirements were completed after-the-fact within 12 days of the second meal served. As a result, the individual was determined to be eligible. Meals are provided at no charge to eligible program participants. The value of the five ineligible meals received was approximately $50. Unusual circumstances surrounding the single instance led to the oversight of filing the eligibility documentation timely. This is the only meal site that operates as a senior center and holds additional events which attracts as many as 300 individuals. As such, timely enrollment was impacted and the need to develop additional controls is warranted for this type of meal site. In the future, the following process will be implemented: 1. Only Individuals who are formally assessed and have reserved meals will be served a meal. Assessed individuals will have to reserve their meals the week before on the Reservation Form specifying which days they will be eating. 2. Each meal site will have a Daily Registration Form with all clients that have been assessed for that site. This Daily Registration Form will contain the last assessment date, and will also be used as the sign in sheet for that day. 3. Since the program has limited funding, the meal site coordinator will maintain a written waiting list for those desiring to be program participants. When assessed individuals leave or terminate the congregate meal site, the wait listed individuals will then be assessed. The individual will be added to the Daily Registration Form with the date they were assessed. 4. Daily Registration Forms will be submitted weekly to the nutrition supervisor, who will confirm that the client was enrolled at least by the third meal served to ensure that no billing occurs for an individual that has not been assessed into CIRTS within the required timeframe. 5. Corrective actions will begin on June 6, 2016. Monitoring of the corrective action will take place through the Grants Compliance Office one on one monthly meeting with CHS upper management. Responsible party: Therese Stanley, Grants Compliance Manager 196 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015   Part IV - Findings and Questioned Costs – Major State Projects This section identifies the audit findings required to be reported under Rule 10.554(1)(l)4, Rules of the Auditor General. 2015-006 Allowable Costs Florida Department of Economic Opportunity CSFA 40.012 Local Economic Development Initiatives Award No. #SL007 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria Compensation for personnel services rendered in conjunction with State awards must be documented and supported. Condition One instance was noted whereby the personnel activity report was not signed by a supervisor. Context Two months of personnel activity reports were reviewed and there was one exception. Questioned Costs None Cause/Effect The Officials over the subcontractor changed during the time of the grant, and new procedures were not put in place to transition the review of the Executive Director’s time sheet. Recommendation When supervisors change during a grant term, control policies and procedures should be updated as necessary. Views of Responsible Officials and Corrective Action Plan This was a singular occurrence during the transition of subcontractor board of director members. Subsequently, a signed timesheet by the Director was found and provided by the subcontractor to the County and forwarded to the external auditor. Collier Economic Development Division staff and team members familiar with the subcontract have provided training to the subcontractor during February 2016 to review support documentation and requirements for timesheets. A checklist template has been developed as assistance. Responsible party: Therese Stanley, Grants Compliance Manager 197 COLLIER COUNTY, FLORIDA Summary Schedule of Prior Audit Findings Year Ended September 30, 2015   Prior - Year Findings and Questioned Costs – Finding 2014-001 Federal Program/State Project Information U.S. Department of Transportation CFDA 20.106 Airport Improvement Program Award No. 3-12-0031-010-2012, Award Year – 2012 Award No. 3-12-0142-010-2013, Award Year – 2013 U.S. Department of Homeland Security CFDA 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Award No. PA-04-FL-1785-PW-01146, Award Year - 2009 Condition Based on our testing of cash drawdowns in fiscal year 2014, there were instances of significant time lag between when the County paid for grant expenditures and the date of the related drawdowns for CFDA 20.106, the Airport Improvement Program, and CFDA 97.036, Disaster Grants- Public Assistance. Auditor Recommendation The County should implement procedures to minimize the time lag between the request for cash drawdown and the time that the disbursements are paid by the County by ensuring the County’s Office of Management and Budget (OMB) Department’s internal control protocol to target execution to draws within 30-45 days after quarter-end is being followed by all departments. Also, the County should develop policies and procedures to ensure the County immediately request reimbursement for qualifying grant expenditures incurred before the related grant agreement. Current Status: Corrective Action was taken. Finding 2014-002 Federal Program/State Project Information State of Florida, Department of Transportation CSFA 55.010 Public Transit Block Grant Award No. AQQ16, Award Year - 2012 Condition The Vendor/Contractor did not use the E-Verify system for employees hired during the County’s 2014 fiscal year. Auditor Recommendation County grant personnel should understand and become familiar with the terms and conditions of their vendor/contractor agreements and develop tools to assist in the effective monitoring of compliance requirements. Current Status: Corrective Action was taken. 198 COLLIER COUNTY, FLORIDA Summary Schedule of Prior Audit Findings Year Ended September 30, 2015   Finding 2012-02 Federal Program/State Project Information U.S. Department of Housing and Urban Development CFDA 14.218, ARRA-14.253 CDBG – Entitlement Grants Cluster CFDA 14.228 Community Development Block Grant/State’s Program (DRI) U.S. Department of Transportation CFDA 20.205 Highway Planning and Construction (Federal-Aid Highway Program) Florida Department of Transportation CSFA 55.010 Public Transit Block Grant Program Condition Upon selecting 60 cash drawdowns, the auditor noted several instances where there was a significant time lag between when Collier County paid for grant expenditures and when the disbursement was requested for reimbursement. There was a lack of a process to minimize the time between disbursement and reimbursement request. This could adversely affect County cash flows as well as result in the grantor not reimbursing Collier County for reimbursements requested within a reasonable time frame. Auditor Recommendation The County should implement procedures that minimize the time elapsing between the request for a cash drawdown and the time that the disbursements are paid by the County. Fiscal 2013 Status Collier County’s Office of Management and Budget (OMB) Department has developed an internal control protocol to target execution of draws within 30-45 days after quarter-end unless the grantor agency contract explicitly states otherwise. Based on our testing of cash drawdowns in fiscal year 2013, it appears improvements had been made since the prior year with regard to timely reimbursement requests. However, for CFDA 20.205, we noted a drawdown that occurred on June 20, 2013 for $253,350. The initial disbursement within the time period pertaining to this drawdown was incurred 155 days prior to this reimbursement request. For CSFA 55.010, there was a 254 day time lag between the earliest invoice posting date and the actual reimbursement date. Fiscal 2014 Status Based on our testing of cash drawdowns in fiscal year 2014, it appears further improvements have been made with regard to timely reimbursement requests for the two programs noted to still have issues in fiscal year 2013, CFDA 20.205 and CSFA 55.010. However, for CSFA 55.010, auditors noted that one of the two drawdown requests tested had a 500 day time lag between the payment earliest invoice and the related drawdown request date. While some improvement was noted, we identified excessive lag times for one sample selection for CSFA 55.010. This finding is considered partially cleared. Current Status: Corrective Action was taken. 199 THIS PAGE INTENTIONALLY LEFT BLANK    An independent member of Nexia International 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, 2015, and have issued our report thereon dated May 10, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated May 10, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of prior year’s findings and recommendations are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been included in the notes to the basic financial statements. Honorable Board of County Commissioners Collier County, Florida   Financial Condition Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the County has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the County’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the County for the fiscal year ended September 30, 2015, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2015. In connection with our audit, we determined that these two reports were in agreement. Special District Component Units Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 2 Honorable Board of County Commissioners Collier County, Florida   Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 3 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Appendix A – Status of Prior Year’s Findings and Recommendations Year Ended September 30, 2015   Prior Year Findings and Recommendations Current Year Status Cleared Partially Cleared Not Cleared 2012-02 Significant Deficiency X 2014-001 Significant Deficiency X 2014-002 Significant Deficiency X 4   An independent member of Nexia International 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, 2015. Management is responsible for the County's compliance with those requirements. Our responsibility is to express an opinion on the County's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the County’s compliance with specified requirements. In our opinion, the County complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the County and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 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, 2015.      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 258,663,300$          Governmental Impact Fees 25,430,713              Half Cent Sales Tax 38,572,787              Developmental Fees 26,293,021              State Revenue Sharing 10,084,052              5th Cent Local Option Gas Tax 5,238,931                 6th Cent Local Option Gas Tax 6,921,219                 Constitutional Gas Tax 4,122,525                 Seventh Cent Gas Tax 1,807,291                 Ninth Cent Gas Tax 1,456,775                 Parks and Recreation Fees 7,538,844                 Tourist Development Tax 21,188,190              Court Facilities Fees 891,401  Communications Services Tax 4,855,279                 Total bondable revenues 413,064,328$          Fiscal 2015 governmental debt service requirements: Series 2005 Gas Tax Bonds Principal:1,770,000$              Interest:88,500  Series 2012 Gas Tax Bonds Principal:6,605,000                 Interest:1,505,150                 Series 2014 Gas Tax Bonds Principal:1,065,000                 Interest:2,103,496                 Series 2010 Special Obligation Bonds Principal:1,850,000                 Interest:2,201,412                 Series 2010B Special Obligation Bonds Principal:1,960,000                 Interest:761,800  Series 2011 Special Obligation Bonds Principal:5,075,000                 Interest:3,615,381                 Series 2013 Special Obligation Bonds Principal:‐   Interest:2,846,975                 Total fiscal 2015 governmental debt service requirements 31,447,714$            Governmental debt ratio of fiscal year 2015 debt service requirements  to total bondable revenues (13.0% maximum allowed by County policy) 7.6% Notes: Debt service is based upon current amortization tables for the fiscal year  indicated.  Debt prepayments are not included as debt service requirements. TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2015 1 Collier County Water and Sewer District: Total Sales Revenue 113,219,312$          Allowance for Funds Prudently Invested ‐   Miscellaneous Revenue 3,425,362                     Total Operating Revenue 116,644,674            Non‐Operating Revenue 1,421,473                     Gross Revenue 118,066,147            Less: Operation and Maintenance  Expense (excluding Depreciation and Amortization)74,343,637              Net Revenue Available for Debt Service (1)43,722,510$           Total Fiscal Year 2015 Debt Service on Bonds (2)9,712,547$              Net Revenue Debt Service Coverage on Bonded Debt (100% Required) ‐ (1/2)450% Other Pledged Funds:  System Development Fees (Impact Fees)12,647,736$             Special Assessment Proceeds ‐   Total Pledged Funds Available for Debt Service (3)56,370,246$           Total Fiscal Year 2015 Debt Service on Bonds (4)9,712,547$              Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) ‐ (3/4)580% Total Pledged Funds Available for Debt   Service After Payment of Bonds (5)46,657,699$            Total Fiscal Year 2015 Debt Service on  Subordinated Indebtedness (6)11,513,231$            Calculated Coverage on Subordinated Indebtedness ‐ (5/6)405% Total Pledged Funds Available for System  Purposes 35,144,468$            TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2015 2 Summary Debt Statement for Fiscal Year 2015 General Governmental Debt: Collier County’s Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this self-imposed maximum. The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County’s Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio decreased from 8.1%, as of September 30, 2014, to 7.6% for the fiscal year ended September 30, 2015. The decrease in the debt ratio for FY-2015 is primarily the result of an 8.9% increase in overall bondable revenues. Ad valorem tax collection increased by 6.5% over FY-2014 due to a corresponding increase in taxable values. Impact fee collections related to governmental activities (non-enterprise activity) increased by 32.5%, developmental fee collections increased by 19.8% and tourist development tax receipts increased by 10.7%. Recent debt restructurings coupled with the growth of general governmental revenues has produced several consecutive years of decreases in the general governmental debt ratio.  Governmental Debt Ratings Table: Current Ratings (as of 4/12/2016) Fitch Moody’s Standard & Poor’s Gas Tax Revenue Bonds AA- A2 A Special Obligation Bonds AA Aa2 AA+ A rating of AA is an indication by Fitch Ratings of an investment grade instrument, but one which carries a slightly higher risk than a AAA rated bond. Fitch also uses intermediate +/- modifiers for each AA category. A rating of Aa is an indication by Moody’s Investors Service of a high quality investment grade instrument with very low credit risk, but “their susceptibility to long-term risks appears somewhat greater” than a Aaa rated bond. A rating of A is an indication by Moody’s of an investment grade instrument with low credit risk but the bond has elements present that suggest a higher susceptibility to impairment over the long term than a Aa investment. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. A rating of AA is an indication by Standard and Poor’s of an investment grade instrument issued by a “quality borrower” but with slightly more risk than a AAA grade investment. A rating of A is an indication by Standard and Poor’s of an investment grade instrument but one more susceptible to adverse changes in circumstances and economic conditions than AAA or AA instruments. Standard and Poor’s also uses intermediate +/- modifiers for each category. 3 The County’s Special Obligation Revenue Bonds are secured by a covenant to appropriate in the annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient pay debt service on the combined Special Obligation Bonds. The combined gas tax revenues are pledged for the payment of all the Gas Tax Revenue bonds. Fiscal year 2015 gas tax revenues covered the current year debt service payments on all outstanding Gas Tax Revenue bonds at 149%. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District’s debt are set by bond covenants. Net revenues, defined as operating revenues plus non-operating revenues less operating expenses, excluding depreciation, must cover bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover bonded debt at 125%. Net revenue coverage on bonded debt was 450% and total pledged funds coverage on bonded debt was 580% for FY-2015, up from 400% and 511%, respectively, for FY-2014. Bonded debt coverages increased primarily due to a 7.9% increase in water and sewer sales revenues. The District’s calculated coverage on subordinated debt, all in the form of State Revolving Fund Loans, increased from 353% to 405%, also as a result of the increase in sales revenue over FY-2014. The total pledged funds coverage required by the subordinated loan agreements varies between 115% and 125%, depending upon the individual loan agreement. In September of 2015, the Collier County Water and Sewer District issued the Series 2015 Water and Sewer Refunding Revenue Bond in the amount of $17,687,000 for purposes of advance refunding a portion of the Water and Sewer District’s Series 2006 Revenue Bonds. The Series 2015 Bond proceeds, together with other available monies, were placed in escrow. The Series 2015 Water and Sewer Refunding Revenue Bond has a fixed interest rate of 1.8%. The advance refunding achieved a net present value savings of 7.1% on the refunded bonds. Enterprise Debt Ratings Table: Current Ratings (as of 4/12/2016) Fitch Moody’s Standard & Poor’s* Water and Sewer Revenue Bonds AAA 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 4 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. During September 2014 the District’s governing board approved phased rate increases. The District’s water and sewer user rates increased by 9.0%, effective 10/01/2014 with subsequent increases of 5.0% effective 10/01/2015 and 10/01/2016. Over recent years the District has operated on a pay as you go basis, avoided borrowing and maintained financial stability. The District’s continuing focus is the optimization of resources and a risk based prioritization of capital projects. 5 Collier County, Florida Clerk of the Circuit Court Financial Statements and Supplemental Reports Year Ended September 30, 2015 Collier County, Florida Clerk of the Circuit Court Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors’ Report ..........................................................................................................1  Financial Statements  Balance Sheet – Governmental Funds ........................................................................................4  Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ................................................................................................................5  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund .............................................................................................................6  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Court Services Fund ..................................................................................................7  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Fund .....................................................................................8  Statement of Fiduciary Net Position – Agency Fund..................................................................9  Notes to Financial Statements ...................................................................................................10  Supplementary Information  Combining Statements of Fiduciary Net Position – All Agency Funds ...................................27  Other Reports  Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..........................................28  Management Letter ...................................................................................................................30  Independent Accountants’ Report .............................................................................................32  CliftonLarsonAllen LLP CLAconnect.com 1 An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Clerk’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2015, and the respective changes in financial position and, where applicable, budgetary comparisons thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk’s financial statements. The combining statement, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The combining statement is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statement is fairly stated in all material respects in relation to the financial statements as a whole. 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 14, 2016 on our consideration of the Clerk’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 Collier County, Florida Clerk of the Circuit Court Balance Sheet – Governmental Funds September 30, 2015 See accompanying Notes to Financial Statements. 4 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents 2,108,931$ 1,422,535$ 4,948,870$ 8,480,336$ Accounts receivable 114,903 - -114,903 Due from other governments 8,257 49,312 -57,569 Total assets 2,232,091$ 1,471,847$ 4,948,870$ 8,652,808$ Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities 555,365$ 223,259$ 39,069$ 817,693$ Due to Collier County, Florida Board of County Commissioners 423,128 - -423,128 Due to Other Constitutional Officers - 379 -379 Due to other governments - 1,248,209 -1,248,209 Deposits 1,253,598 - -1,253,598 Total liabilities 2,232,091 1,471,847 39,069 3,743,007 Fund balance: Restricted - - 4,909,801 4,909,801 Total fund balance - - 4,909,801 4,909,801 Total liabilities and fund balance 2,232,091$ 1,471,847$ 4,948,870$ 8,652,808$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 5 Total Court Other Special Governmental General Services Revenue Funds Revenues: Intergovernmental -$ 361,895$ -$ 361,895$ Charges for services 3,102,722 6,484,209 1,463,188 11,050,119 Miscellaneous 303 - - 303 Interest income 13,701 10,644 7,650 31,995 Total revenues 3,116,726 6,856,748 1,470,838 11,444,312 Expenditures: General government: Personal services 6,528,467 5,773,044 872,969 13,174,480 Operating 1,809,230 292,286 425,651 2,527,167 Capital outlay 226,710 - - 226,710 Total expenditures 8,564,407 6,065,330 1,298,620 15,928,357 Excess (deficiency) of revenues over (under) expenditures (5,447,681) 791,418 172,218 (4,484,045) Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 5,869,500 - - 5,869,500 Transfers out: Distribution of excess fees to State of Florida - (791,418) - (791,418) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (421,819) - - (421,819) Total other financing sources (uses)5,447,681 (791,418) - 4,656,263 Net change in fund balance - - 172,218 172,218 Fund balances – beginning of year - - 4,737,583 4,737,583 Fund balances – end of year -$ -$ 4,909,801$ 4,909,801$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 6 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 2,788,100$ 3,000,000$ 3,102,722$ 102,722$ Miscellaneous - - 303 303 Interest income 20,000 20,000 13,701 (6,299) Total revenues 2,808,100 3,020,000 3,116,726 96,726 Expenditures: General government: Personal services 6,987,800 6,754,200 6,528,467 225,733 Operating expenditures 1,346,700 1,908,300 1,809,230 99,070 Capital outlay 343,100 227,000 226,710 290 Total expenditures 8,677,600 8,889,500 8,564,407 325,093 Excess (deficiency) of revenues over (under) expenditures (5,869,500) (5,869,500) (5,447,681) 421,819 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 5,869,500 5,869,500 5,869,500 - Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners - - (421,819) (421,819) Total other financing sources (uses) 5,869,500 5,869,500 5,447,681 (421,819) Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ 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, 2015 See accompanying Notes to Financial Statements. 7 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental 219,000$ 261,459$ 361,895$ 100,436$ Charges for services 7,177,100 6,814,553 6,484,209 (330,344) Interest income 8,500 8,500 10,644 2,144 Total revenues 7,404,600 7,084,512 6,856,748 (227,764) Expenditures: General government: Personal services 6,890,400 6,559,112 5,773,044 786,068 Operating expenditures 514,200 525,400 292,286 233,114 Total expenditures 7,404,600 7,084,512 6,065,330 1,019,182 Excess of revenues over expenditures - - 791,418 791,418 Other financing (uses): Transfers out: Distribution of excess fees to State of Florida - - (791,418) 791,418 Total other financing (uses)- - (791,418) 791,418 Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ 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, 2015 See accompanying Notes to Financial Statements. 8 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 1,365,000$ 1,365,000$ 1,463,188$ 98,188$ Interest income 8,300 8,300 7,650 (650) Total revenues 1,373,300 1,373,300 1,470,838 97,538 Expenditures: General government: Personal services 989,600 989,600 872,969 116,631 Operating expenditures 1,491,500 1,502,300 425,651 1,076,649 Capital outlay 412,600 410,200 - 410,200 Total expenditures 2,893,700 2,902,100 1,298,620 1,603,480 Net change in fund balance (1,520,400) (1,528,800) 172,218 1,701,018 Fund balance – beginning of year 3,141,662 4,315,031 4,737,583 422,552 Fund balance – end of year 1,621,262$ 2,786,231$ 4,909,801$ 2,123,570$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Position Agency Fund September 30, 2015 See accompanying Notes to Financial Statements. 9 Assets Cash and cash equivalents 26,821,918$ Liabilities Due to the Collier County, Florida Board of County Commissioners 341,868$ Due to other governments 950,949 Deposits 25,529,101 Total liabilities 26,821,918$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 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. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 11 1.Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund – The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund – The court services fund is a special revenue fund established to account for court-related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund – The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office, and revenues mandated by Section 28.24(12)(e), Florida Statutes, to be used exclusively for funding court-related technology needs. This fund also accounts for revenues and expenditures pursuant to Section 28.37(5), Florida Statutes. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 12 1.Summary of Significant Accounting Policies (continued) The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk’s activities are classified as court-related and non-court-related. The Clerk’s general fund activity, which is classified as non-court-related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. Court-related operations are funded by the collection of fines, fees costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds – Agency Funds – Agency funds are used to account for assets held by the Clerk in a trustee capacity or as an agent for individuals, private organizations, other governments, and other funds. The agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the full accrual basis of accounting. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 13 1.Summary of Significant Accounting Policies (continued) Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk’s funds, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 14 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non-spendable fund balances at the Clerk as of September 30, 2015. Spendable fund balances are classified based on a hierarchy of the Clerk’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk’s fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk’s annual budget. The Clerk prepares and approves the budget for the Clerk s non-court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 15 2. Budgetary Process (continued) If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a revenue deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ended September 30, 2015, the Clerk had sufficient revenues to meet expenditures. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk’s fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 16 3.Cash and Cash Equivalents At September 30, 2015, the carrying value of the Clerk’s cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A 7,600$ N/A Demand deposits N/A 35,294,654 N/A Total cash and cash equivalents 35,302,254$ The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each fund type’s portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. Cash and cash equivalents as of September 30, 2015 are reported as $8,480,336 and $26,821,918 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2015, the Clerk’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 17 3. Cash and Cash Equivalents (continued) Credit Risk The Clerk’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter-local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk’s funds is based on maintaining 24 hour liquidity. All Clerks funds are held in local banks or short term investment instruments. 4.Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of $13,701 is reported in the general fund for the year ended September 30, 2015, as the portion of interest earned on Clerk funds. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 18 5.Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1,September 30, 2014 Additions Deductions Transfer-out 2015 Capital assets depreciated: Machinery and equipment 7,410,520$ 226,710$ (8,857)$ (54,956)$ 7,573,417$ Less accumulated depreciation (4,943,685) (707,497) 8,857 54,956 (5,587,369) Total Capital assets depreciated 2,466,835 (480,787) --1,986,048 Total capital assets, net 2,466,835$ (480,787)$ -$-$1,986,048$ 6.Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1,September 30, 2014 Additions Deletions 2015 Accrued compensated absences 1,947,947$ 839,443$ (958,991)$ 1,828,399$ Of these liabilities, $895,916 is expected to be paid during the fiscal year ending September 30, 2016. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 19 7.Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 20 7. Pension Plans (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 21 7. Pension Plans (continued) As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 22 7. Pension Plans (continued) FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 23 7.Pension Plans (Continued) Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk’s contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $754,155, $738,661, and $562,051 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. 8.Related Party Transactions The Board provided funding for the Clerk in the amount of $5,869,500. The Supervisor of Elections provided funding in the amount of a $45,000 fee for financial services performed by the Clerk. At September 30, 2015, the Clerk had a payable due to the Board of $764,996, comprised as follows: Distribution of excess fees 421,819$ Amounts due for various services 1,309 Agency funds due 341,868 Total due to Board of County Commissioners 764,996$ The Clerk also had a payable to the Collier County Sheriff at September 30, 2015 of $379 from the Court Services Fund for juror meals. 9.Risk Management Collier County, Florida (County) is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2015, the Clerk was charged $2,468,141 by the County for participation in the risk management program. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 24 9.Risk Management (continued) The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% named storm deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10.Other Postemployment Healthcare Benefits (OPEB) Plan The Clerk follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for its post-employment benefits. Plan Description The Clerk participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report; however, additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 25 10.Other Postemployment Healthcare Benefits (OPEB) Plan (continued) Under Florida Statutes, retirees originally hired prior to July 1, 2011, are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 if hired on or after July 1, 2011) are also eligible to participate in the medical plan. The Clerk provides no subsidy to the retiree, or their dependents, for group health care. Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County’s self-insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Clerk had a net OPEB obligation of $38,747 as of September 30, 2015. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in November 2014. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. 11.Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a “party in interest” in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2015, the Clerk was involved in approximately 101,368 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in approximately 321 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are approximately 16 actions for foreclosure of property in which the Clerk has been a named defendant. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 26 11.Claims and Contingencies (continued) Litigation (continued) Clerk continues to be involved in a class action involving a Florida Statute related to ownership of interest earned on monies paid into the registry of the court and an inverse condemnation allegation asserting that the Clerk has improperly retained interest accruing on funds in the court’s registry. Two other cases with similar claims have been filed in Florida. Both cases found against the plaintiff. The plaintiffs filed motion for the Florida Supreme Court to rule on the cases. The court denied the motion. The plaintiffs have filed to have the U.S. Supreme Court hear the case. All proceedings in our case have been stayed until final resolution with the other cases. The Clerk is involved in a litigation regarding fees for public records requests. The Clerk has entered into new litigation against County Manager and Purchasing Director joined by the BOCC over the purchasing policies/actions in procurement. The Clerk’s office expects to prevail in all of the above actions. In the opinion of the Clerk of the Circuit Court and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk of the Circuit Court. Collier County, Florida Clerk of the Circuit Court Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2015 27 Jury and Clerk’s Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents 4,899,492$ 21,907,264$ 15,162$ 26,821,918$ Liabilities Due to Collier County, Florida Board of County Commissioners 341,868$ -$ -$ 341,868$ Due to other governments 935,787 - 15,162 950,949 Deposits 3,621,837 21,907,264 - 25,529,101 Total liabilities 4,899,492$ 21,907,264$ 15,162$ 26,821,918$ CliftonLarsonAllen LLP CLAconnect.com 28 An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements, and have issued our report thereon dated January 14, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Dwight E. Brock Clerk of the Circuit Court 29 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 14, 2016 CliftonLarsonAllen LLP CLAconnect.com 30 An independent member of Nexia International MANAGEMENT LETTER Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the fiscal year ended September 30, 2015 and have issued our report thereon dated January 14, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 14, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Dwight E. Brock Clerk of the Circuit Court 31 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 CliftonLarsonAllen LLP CLAconnect.com 32 An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court’s (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of court performance standards and budgets, during the year ended September 30, 2015. Management is responsible for the Clerk’s compliance with those requirements. Our responsibility is to express an opinion on the Clerk’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Clerk’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk’s compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 14, 2016   Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2015 Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – General Fund ......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund – Budgetary Basis ............................................5 Notes to Financial Statements .......................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................21 Management Letter ........................................................................................................................23 Independent Accountants’ Report ..................................................................................................25   1 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 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, 2015, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report on our consideration of the Property Appraiser’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 Collier County, Florida Property Appraiser Balance Sheet – General Fund September 30, 2015 See accompanying Notes to Financial Statements. 3 Assets Cash and cash equivalents 809,790$ Total assets 809,790$ Liabilities and fund balance Liabilities: Accounts payable and accrued expenses 30,945$ Due to Collier County, Florida Board of County Commissioners 703,354 Due to other taxing districts 75,491 Total liabilities 809,790 Fund balance - Total liabilities and fund balance 809,790$     Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 4 Revenues: Commissions and fees 6,579,893$ Miscellaneous 794,878 Interest 5,620 Total revenues 7,380,391 Expenditures: General government: Personal services 5,026,460 Operating 1,453,804 Capital outlay 121,282 Total expenditures 6,601,546 Excess of revenues over expenditures 778,845 Other financing uses: Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (703,354) Distribution of excess fees and commissions to other governmental agencies (75,491) Total other financing uses (778,845) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year -$   Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund (Budgetary Basis) Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 6,579,893$ 6,579,893$ 6,579,893$ -$ Interest Revenue - - 5,620 5,620 Miscellaneous - - 794,878 794,878 Total revenues 6,579,893 6,579,893 7,380,391 800,498 Expenditures: General government: Personal services 5,174,383 5,174,383 5,026,460 147,923 Operating 1,380,510 1,380,510 1,453,804 (73,294) Capital outlay 25,000 25,000 121,282 (96,282) Total expenditures 6,579,893 6,579,893 6,601,546 (21,653) Excess of revenues over expenditures - - 778,845 778,845 Other financing uses: Distribution of excess fees to Collier County, Florida Board of County Commissioners - - (703,354) (703,354) Distribution of excess commissions and fees to other governmental agencies - - (75,491) (75,491) Total other financing uses - - (778,845) (778,845) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 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, 2015 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, 2015 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, 2015 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. The Property Appraiser’s budget is prepared under a budgetary basis of accounting that differs from generally accepted accounting principles (GAAP). Certain revenues received from non ad valorem commissions and other sources are not recognized under the budgetary basis of accounting; however, the revenues have been recognized under GAAP. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 10 2. Budgetary Process (continued) The actual results of operations in the statement of revenues and expenditures, and changes in fund balance – budget to actual – general fund are presented on a budgetary basis. Adjustments to convert the results of operations for the year ended September 30, 2015, from the budgetary basis of accounting to the GAAP basis of accounting are as follows: Miscellaneous Revenues Budgetary Basis -$ Revenues not budgeted: Miscellaneous 794,878 Interest 5,620 GAAP Basis 800,498$ During the year, the Property Appraiser exceeded the budgeted amount for operating expenditures and capital outlay mainly as a result of other contractual services, vehicles and computer equipment related expenditures which were not expected at the time of the budget preparation. These budget overages were partially offset by budget savings in the personnel services category. 3. Cash At September 30, 2015, the carrying value of the Property Appraiser’s cash was as follows: Carrying Value Cash on hand 125$ Demand deposits 809,665 Total cash 809,790$ Type Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 11 3. Cash (continued) Custodial Credit Risk At September 30, 2015, the Property Appraiser’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Property Appraiser’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 12 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2015: October 1, September 30, 2014 Additions Deductions 2015 Improvements other than buildings 15,332$ -$ -$ 15,332$ Machinery and equipment 1,560,828 121,282 - 1,682,110 Total capital assets 1,576,160 121,282 - 1,697,442 Less accumulated depreciation (1,270,868) (97,195) - (1,368,063) Total capital assets, net 305,292$ 24,087$ -$ 329,379$ 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2014 Increase Decrease 2015 Accrued compensated absences 299,899$ 317,098$ 286,715$ 330,282$ Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 13 5. Long-Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2015, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 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, 2015 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, 2015 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, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 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 0.04 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 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, 2015, 2014 and 2013, were $377,140, $315,882, and $203,538, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Property Appraiser follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description  The Property Appraiser participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report, however additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida (the County).  Under Florida Statutes, retirees originally hired prior to July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) are also eligible to participate in the medical plan. In addition, the Property Appraiser provides no subsidy to the retiree, or their dependents, for group health care. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 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 $28,262 as of September 30, 2015. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in November 2013. The notes to the financial statements of the County disclose additional information regarding the other post employment benefit plan as a whole. 8. Related-Party Transactions During the fiscal year ended September 30, 2015, the Board paid fees to the Property Appraiser that amounted to $5,917,161. At September 30, 2015, the Property Appraiser had a payable due to the Board of $703,354, respectively, comprised as follows: Distribution of excess commissions and fees 703,354$ 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County’s self-insurance program. During the year ended September 30, 2015, the Property Appraiser was charged $940,547 by the County for participation in the risk management program. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 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 $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser.   21 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County,  Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements, and have issued our report thereon dated January 8, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Abe Skinner Property Appraiser 22 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2015-001 – Budget Criteria Florida Statutes 195.087 (1)(a) requires the Property Appraiser to submit a budget for operation of the Property Appraiser’s office for the fiscal year to the Florida Department of Revenue (DOR) for review and approval. Total expenditures should not exceed the total appropriations as approved by DOR. Condition The Property Appraiser’s total expenditures exceeded its final approved total appropriations. Cause A budget amendment was not submitted prior to the expenditure of additional amounts for capital outlay. Effect The Property Appraiser expended $21,653 in excess of final approved appropriations. Recommendation We recommend that management and the Property Appraiser periodically review budget to actual reports to determine if the Property Appraiser is adhering to its adopted budget. If circumstances arise that will cause the Property Appraiser to incur total expenditures in excess of approved total appropriations, the Property Appraiser should first submit a budget amendment to the DOR. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 23 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser) as of and for the year ended September 30, 2015, and have issued our report thereon dated January 8, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.500, Rules of the Auditor General. Disclosures in those reports which are dated January 8, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to financial statements. Honorable Abe Skinner Property Appraiser 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 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 8, 2016   25 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT   Honorable Abe Skinner Property Appraiser Collier County, Florida We have examined the Collier County, Florida Property Appraiser’s (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Property Appraiser’s compliance with those requirements. Our responsibility is to express an opinion on the Property Appraiser’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Property Appraiser’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser’s compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.   CliftonLarsonAllen LLP Naples, Florida January 8, 2016  Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2015 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget (Non-GAAP) and Actual – General Fund ........................................................................6 Statement of Net Position – Internal Service Fund ..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund ....................................................................................................................8 Statement of Cash Flows – Internal Service Fund ...........................................................................9 Statement of Fiduciary Net Position – Agency Funds ...................................................................10 Notes to Financial Statements ........................................................................................................11 Required Supplementary Information Schedule of Funding Progress for the Retiree Health Plan............................................................34 Combining Financial Information Combining Statement of Fiduciary Net Position – Agency Funds ................................................35 Combining Statement of Changes in Assets and Liabilities – Agency Funds ...............................36 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2015 Contents (continued) Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards....................................................................37 Management Letter ........................................................................................................................39 Independent Accountants’ Report ..................................................................................................41 Independent Accountants’ Report on Applying Agreed-Upon Procedures ...................................42   1 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Sheriff’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2015, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Funding Progress for the Retiree Health Plan, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. 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 January 12, 2016 on our consideration of the Sheriff’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 Collier County, Florida Sheriff Balance Sheet – Governmental Funds September 30, 2015 See accompanying Notes to Financial Statements.4Grant Other Non-MajorSpecial Prisoner Federal Equitable Special Revenue General Revenue Welfare Sharing Funds TotalAssetsCash and cash equivalents 7,654,030$ 189,921$ 1,569,302$ 871,511$ –$ 10,284,764$ Accounts receivable 40,547 14,529 – – – 55,076 Due from other funds 456,995 – 25,000 – – 481,995 Due from other governments 38,725 49,251 – – – 87,976 Due from Collier County, Florida Board ofCounty Commissioners 1,054,712 85,511 – – 948,243 2,088,466 Total assets 9,245,009$ 339,212$ 1,594,302$ 871,511$ 948,243$ 12,998,277$ Liabilities and fund balancesLiabilities:Accounts payable 1,566,201$ 16,276$ 106,561$ 5,617$ 948,243$ 2,642,898$ Accrued expenses 7,461,250 – – – – 7,461,250 Due to other funds 183,556 – 440,146 5,617 – 629,319 Due to Collier County, Florida Board ofCounty Commissioners 34,002 – – – – 34,002 Unearned revenue – 103,979 – – – 103,979 Total liabilities 9,245,009 120,255 546,707 11,234 948,243 10,871,448 Fund balances:Restricted – 218,957 1,047,595 860,277 – 2,126,829 Total liabilities and fund balances 9,245,009$ 339,212$ 1,594,302$ 871,511$ 948,243$ 12,998,277$   Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2015 See accompanying Notes to Financial Statements.5Grant Other Non-MajorSpecial Prisoner Federal Equitable Special RevenueGeneral Revenue Welfare SharingFunds TotalRevenues:Grant revenue –$ 992,422$ –$ –$ –$ 992,422$ Charges for services 1,375,714 – 838,122 – – 2,213,836 Interest income – 607 3,335 2,141 – 6,083 Other revenue – – – 157,615 – 157,615 Total revenues 1,375,714 993,029 841,457 159,756 – 3,369,956Expenditures:General government:Personal services 3,634,660 – – – – 3,634,660 Operating expenditures 78,912 – – – – 78,912 Public safety:Personal services 113,929,185 542,499 533,885 – 884,816 115,890,385 Operating expenditures 20,834,616 226,140 151,335 65,274 1,495,767 22,773,132 Capital outlay 7,657,091 6,837 99,963 – 1,028,361 8,792,252 Debt Service - principal 570,323 – – – – 570,323 Total expenditures 146,704,787 775,476 785,183 65,274 3,408,944 151,739,664Excess (deficiency) of revenues over (under) expenditures (145,329,073) 217,553 56,274 94,482 (3,408,944) (148,369,708)Other financing sources (uses): Proceeds from capital leases 1,914,480 – – – – 1,914,480 Transfers in:Collier County, Florida Board of County Commissioners appropriations 142,092,500 – – – – 142,092,500 Collier County, Florida Board of County Commissioners 1,350,335 – – – 3,408,944 4,759,279 Transfers out:Distribution of excess appropriations to Collier County,Florida Board of County Commissioners (28,242) – – – – (28,242) Total other financing sources 145,329,073 – – – 3,408,944 148,738,017Net change in fund balances – 217,553 56,274 94,482 – 368,309 Fund balances – beginning of year – 1,404 991,321 765,795 – 1,758,520 Fund balances – end of year –$ 218,957$ 1,047,595$ 860,277$ –$ 2,126,829$ Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements.6 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services –$ 1,379,000$ 1,375,714$ (3,286)$ Expenditures: General government: Personal services 2,959,600 2,959,600 3,634,660 (675,060) Operating expenditures 131,700 131,700 78,912 52,788 Capital outlay – – – Public safety: Personal services 114,498,800 115,832,800 113,929,185 1,903,615 Operating expenditures 22,466,100 22,511,100 20,567,896 1,943,204 Capital outlay 2,036,300 2,036,300 5,229,319 (3,193,019) Total expenditures 142,092,500 143,471,500 143,439,972 31,528 Excess of expenditures over revenues (142,092,500) (142,092,500) (142,064,258) 28,242 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 142,092,500 142,092,500 142,092,500 – Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners – – (28,242) (28,242) Total other financing sources 142,092,500 142,092,500 142,064,258 (28,242) Net change in fund balance – – – – Fund balance – beginning of year – – – – Fund balance – end of year –$ –$ –$ –$ Collier County, Florida Sheriff Statement of Net Position – Internal Service Fund September 30, 2015 See accompanying Notes to Financial Statements.7 Assets Cash and cash equivalents 1,936,139$ Investments 7,965,861 Due from other funds 183,556 Other receivable 45,012 Total assets 10,130,568 Liabilities: Self insurance claims payable 2,170,000 Net other postemployment benefit obligation 2,168,099 Total liabilities 4,338,099 Net position: Unrestricted 5,792,469 Total net position 5,792,469$ Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements.8 Operating revenues: 19,777,998$ Operating expenses: 19,415,269 884,997 Net other postemployment benefit expense 486,861 372,398 21,159,525 (1,381,527) Nonoperating revenues: 41,400 Decrease in fair value of investments (26,970) Total nonoperating revenues 14,430 (1,367,097) Net position – beginning of year 7,159,566 Net position – end of year 5,792,469$ Charges for services Claims and claims expenses Interest income Change in net position Reinsurance premiums Administrative and other expenses Total operating expenses Operating income (loss) Collier County, Florida Sheriff Statement of Cash Flows – Internal Service Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements.9 Operating activities (19,217,870)$ (884,997) (372,398) 18,750,000 799,430 (925,835) Noncapital and Related Financing Activities Amounts repaid to other funds (407,422) Net cash used by noncapital and related financing activities (407,422) Investing activities 41,400 Sales of securities (49,444) (8,044) (1,341,301) Cash, cash equivalents, and investments – beginning of year 3,277,440 Cash, cash equivalents, and investments – end of year 1,936,139$ Reconciliation of operating loss to net cash (1,381,527)$ 60,387 (183,556) Increase in net other postemployment benefit obligation 486,861 92,000 (925,835)$ Net cash provided by operating activities net cash used by operating activities: Increase in receivables Increase in due to/from other funds Decrease in self-insurance claims payable 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 used by operating activities Net cash used by operating activities Cash received from retirees for services Net decrease in cash, cash equivalents, and investments Investment income Net cash provided by investing activities Collier County, Florida Sheriff Statement of Fiduciary Net Position – Agency Funds September 30, 2015 See accompanying Notes to Financial Statements.10 Cash and cash equivalents 566,302$ Due from individuals and businesses 14,388 580,690$ Due to other funds 36,232$ Due to Collier County, Florida 28,991 Due to individuals and businesses 515,467 580,690$ Total liabilities Liabilities Board of County Commissioners Assets Total assets Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015  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, 2015 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive Annual Financial Report. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 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, 2015 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, 2015 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, 2015 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. Cash equivalents also include amounts deposited in Florida PRIME administered by the State Board of Administration, a 2a-7 like investment pool. Shares of the investment pool are based on the pool’s share price, which approximates fair value. All investments are stated at fair value. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 1,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non-spendable fund balances as of September 30, 2015. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 16 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The 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, 2015 17 2. Budgetary Process (continued) The differences between the budgetary basis and the GAAP basis for the General Fund budget as discuss above are as follows: Total expenditures - budgetary basis 143,439,972$ Expenditures not budgeted: Vehicles and equipment purchased with proceeds from capital lease obligation 1,914,480 Expenditures for multi-period projects that are not budgeted 1,350,335 Total expenditure - GAAP basis 146,704,787$ Total other financing sources (uses) - budgetary basis 142,064,258$ Other financing sources not budgeted: Proceeds from capital lease obligations 1,914,480 Transfers in from Collier County Florida Board of County Commissioners (non-appropriations)1,350,335 145,329,073$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 18 3. Cash, Cash Equivalents and Investments At September 30, 2015, the carrying value of the Sheriff’s cash, cash equivalents and investments was as follows: Type Average Maturity Carrying Value Credit Rating Cash on hand N/A 21,107$ N/A Demand deposits N/A 12,023,834 N/A Local government surplus funds trust fund: Florida Prime N/A 742,264 AAAm Total cash and cash equivalents 12,787,205 Money Market N/A 237,265 Not rated Treasury Note 11/15/2015 500,125 AAA Federal National Mortgage Association 10/26/2015 750,750 AAA Federal Home Loan Bank 12/11/2015 501,655 AAA Federal Home Loan Mortgage Corp. Note 1/21/2016 1,699,320 AAA Federal Home Loan Bank 2/19/2016 850,196 AAA Federal Home Loan Mortgage Corp. 3/15/2016 1,004,130 AAA Federal Home Loan Mortgage Corp. 5/13/2016 700,749 AAA Federal National Mortgage Association 7/5/2016 1,000,020 AAA Federal Home Loan Bank 9/9/2016 721,651 AAA Total Investments 7,965,861 Total cash, cash equivalents and investments 20,753,066$   The total cash, cash equivalent and investments balances at September 30, 2015, were as follows: General fund 7,654,030$ Grant special revenue fund 189,921 Prisoner welfare fund 1,569,302 Federal equitable sharing fund 871,511 Internal service fund 9,902,000 Agency funds 566,302 20,753,066$   Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 19 3. Cash, Cash Equivalents and Investments (continued) Custodial Credit Risk At September 30, 2015, the Sheriff’s demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Multiple Employers Trust (FSMET) and are administered by Hunt Insurance Group. FMSET’s policy required execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff’s name. Credit Risk The Sheriff’s policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff’s Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the US Treasury. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the state treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2015, the Sheriff had $742,264 invested in Florida Prime. Florida Prime is rated “AAAm” by Standard & Poor’s Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk.   Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 20 3. Cash, Cash Equivalents and Investments (continued) Concentration of Credit Risk The Sheriff’s investments are included in the internal service fund which is used to account for the Sheriff’s self-insured health plan. The Florida Sheriff’s Multiple Employer Trust administers the investments for the Sheriff’s self-insured health plan and has an investment policy that allows for the investment of funds that exceed one month’s required funding by more than $100,000. Investments can be made in government securities. The Sheriff’s portfolio managed by the self- insurance trust includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits which are not managed by the self-insurance trust, which are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff’s portfolio invested in FSMET is detailed as follows, at September 30, 2015: % of Portfolio Money Market 3% Treasury Note 6% Federal National Mortgage Association 22% Federal Home Loan Bank 26% Federal Home Loan Mortgage Corp. Note 21% Federal Home Loan Mortgage Corp. 22% Total 100%     Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 21 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2014 Additions Reclassifications 2015 Governmental Activities Capital assets not depreciated: Construction in Progress 691,071$ 1,370,437$ (691,071)$ 1,370,437$ Total capital assets not depreciated 691,071 1,370,437 (691,071) 1,370,437 Capital assets depreciated : Machinery and equipment 67,251,490 8,613,461 (4,935,373) 70,929,578 Total capital assets depreciated 67,251,490 8,613,461 (4,935,373) 70,929,578 Less accumulated depreciation: Machinery and equipment (58,180,645) (5,630,445) 4,916,296 (58,894,794) Total Accumulated depreciation (58,180,645) (5,630,445) 4,916,296 (58,894,794) Total Depreciable capital assets, net 9,070,845 2,983,016 (19,077) 12,034,784 Total Governmental Activities capital assets, net 9,761,916$ 4,353,453$ (710,148)$ 13,405,221$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 22 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, 2015 Governmental fund activities: Vehicles and related equipment 4.50% 1,068,029$ Telephone system 4.82% 276,128 Total Capital Lease Obligations 1,344,157$ Equipment and related accumulated amortization under capital leases are as follows: Governmental Activities Equipment 1,914,480$ Less: accumulated amortization - Net Value 1,914,478$ Year ending September 30: Governmental Activities 2016 633,509$ 2017 633,509 2018 63,185 2019 63,185 2020 57,920 Total minimum lease payments 1,451,308 Less: amount representing interest (107,151) Present value of remaining payments 1,344,157$ As of September 30, 2015, the future minimum lease payments under capital lease for each of the next five years and in the aggregate are: Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 23 5. Long-Term Liabilities (continued) The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2014 Additions Reclassifications 2015 Capital lease agreements -$ 1,914,480$ (570,323)$ 1,344,157$ Compensated Absences 14,483,453 1,431,788 (3,471,779) 12,443,462 Total 14,483,453$ 3,346,268$ (4,042,102)$ 13,787,619$ Of these liabilities, approximately $1,160,000 is expected to be paid during the fiscal year ending September 30, 2015. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2015, were as follows: Due From Due To General fund 456,995$ 183,556$ Inmate Trust - 36,232 Prisoner welfare fund 25,000 440,146 Federal equitable sharing - 5,617 Internal service fund 183,556 - 665,551$ 665,551$ Interfund receivables and payables generally represent recurring activities between funds. 7. Related-Party Transactions The Board provided funding for the Sheriff for the year of $146,851,779. At September 30, 2015, the Sheriff had a payable due to the Board of $62,993 comprised of the following: General fund: Distribution of excess appropriations $ 28,242 Distribution of interest collected 5,559 Miscellaneous payables 201 Agency funds 28,991 Total $ 62,993 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 24 7. Related-Party Transactions (continued) Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $2,088,466 at September 30, 2015. Agency Funds The Sheriff’s Office administers funds for the Collier County Sheriff’s Office Explorers Program. The program is funded by donations from employees through payroll deduction and donations from outside organizations. The program is designed for students to explore the opportunity to learn about and interact with law enforcement and to help stimulate further interest in the possibility of a law enforcement career. 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 25 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, 2015 26 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, 2015 27 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 28 8. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff’s contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $13,341,786, $12,767,042, and $10,162,432 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report.   Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 29 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, 2015, the date of the latest actuarial valuation, the Sheriff’s plan participation consisted of: OPEB plan participants 1,138 Retirees receiving benefits 104 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay as you go basis. For the year ended September 30, 2015, the Sheriff contributed $742,376 to the OPEB Plan. The annual other postemployment benefit cost for the plan is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed as of October 1, 2015. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 30 9. Other Postemployment Benefits (continued) Annual OPEB Cost and Net OPEB Obligation The annual cost (expense) of the Sheriff’s OPEB Plan is calculated based on the ARC. The following table shows the components of the Sheriff’s annual OPEB Plan cost for the year ended September 30, 2015, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution $ 1,262,077 Interest on net OPEB obligation 50,437 Adjustment to annual required contribution (83,277) Annual OPEB cost (expense) 1,229,237 Contributions made (742,376) Increase in net OPEB obligation (asset) 486,861 Net OPEB obligation – beginning of year 1,681,238 Net OPEB obligation (asset) – end year $ 2,168,099 No trust or agency fund has been established for the plan. The Sheriff’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended September 30, 2015 and the preceding years were as follows: Percentage of Annual Annual OPEB Net OPEB Fiscal Year Ended OPEB Cost Cost Contributed Obligation September 30, 2015 September 30, 2014 $ 1,229,237 $ 1,112,653 60% 70% $ 2,168,099 $ 1,681,238 September 30, 2013 $ 1,131,221 73% $ 1,344,917 Funded Status and Funding Progress As of the September 30, 2015 actuarial valuation date, the OPEB Plan was 0% funded, the actuarial accrued liability for benefits was $15,133,114, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $15,133,114. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was approximately $117.6 million, and the ratio of the UAAL to the covered payroll was 12.9%. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 31 9. Other Post Employment Benefits (continued) Funded Status and Funding Progress (continued) The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits. Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Projected Unit Credit Method Amortization method Closed Amortization period 30 years, Level Dollar Amount The actuarial assumptions are: Investment rate of return 3% Discount rate 3% Healthcare cost trend rate 8% for the 2016 fiscal year grading to an ultimate rate of 5% for the 2022 fiscal year Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 32 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 ($350,000 for policy years 2002/2003 – 2006/2007) of every claim. Reinsurance is purchased by the Program to cover claims exceeding $500,000 (or $350,000 where applicable) up to $10,000,000. Reinsurance coverage up to $20,000,000 any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third-party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self-funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In 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.   Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 33 10. Self-Insurance Program (continued) Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2015 and 2014 is as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2014 $ 3,600,000 $ 17,354,000 $ (18,876,000) $ 2,078,000 2015 $ 2,078,000 $ 15,167,000 $ (19,415,000) $ 2,170,000 11. Claims and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. Collier County, Florida Sheriff Schedule of Funding Progress for the Retiree Health Plan September 30, 2015 34 Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) – Percentage of Valuation Value of Projected Unfunded Funded Covered Covered Date Assets Unit Credit AAL Ratio Payroll Payroll 10/1/2013 –$ 13,141,022$ 13,141,022$ 0.0% 107,204,015$ 12.2% 10/1/2014 –$ 14,207,209$ 14,207,209$ 0.0% 112,902,749$ 12.6% 10/1/2015 –$ 15,133,114$ 15,133,114$ 0.0% 117,563,839$ 12.9% Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position – Agency Funds September 30, 2015  35 TotalCivil Evidence Flexible Inmate Agency Trust Trust Spending Trust Explorers FundsCash and cash equivalents 55,349$ 229,474$ 206,982$ 60,219$ 14,278$ 566,302$ Due from individuals and businesses – – – 14,388 – 14,388 55,349$ 229,474$ 206,982$ 74,607$ 14,278$ 580,690$ Due to other funds –$ –$ –$ 36,232$ –$ 36,232$ Due to Collier County, Florida Board17,360 – – 11,631 – 28,991 Due to individuals and businesses 37,989 229,474 206,982 26,744 14,278 515,467 55,349$ 229,474$ 206,982$ 74,607$ 14,278$ 580,690$ Total liabilitiesAssetsLiabilitiesTotal assetsof County Commissioners Collier County, Florida Sheriff Combining Statement of Changes in Assets and Liabilities – Agency Funds Year Ended September 30, 2015 36  October 1, September 30, 2014 Additions Deletions 2015AssetsCash and cash equivalents 600,082$ 3,733,558$ (3,767,338)$ 566,302$ Due from individuals and businesses 23,827 14,388 (23,827) 14,388 Total assets 623,909$ 3,747,946$ (3,791,165)$ 580,690$ LiabilitiesDue to other funds 33,110$ 36,232$ (33,110)$ 36,232$ Due to Collier County, Florida Boardof County Commissioners 27,019 28,991 (27,019) 28,991 Due to individuals and businesses 563,780 515,467 (563,780) 515,467 Total liabilities 623,909$ 580,690$ (623,909)$ 580,690$   37 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements, and have issued our report thereon dated January 12, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the 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 38 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 January 12, 2016 CliftonLarsonAllen LLP CLAconnect.com   39An independent member of Nexia International MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2015 and have issued our report thereon dated January 12, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; Schedule of Findings and Responses; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated January 12, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(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 40 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 CliftonLarsonAllen LLP CLAconnect.com   41An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff’s (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the 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, 2015. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 CliftonLarsonAllen LLP CLAconnect.com   42An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES Honorable Kevin Rambosk Sheriff Collier County, Florida We have performed the procedures enumerated below, which were agreed to by management of the Collier County, Florida Sheriff (Sheriff), solely to assist you in evaluating the procedures and policies as defined by the Sheriff over its investigative funds for the year ended September 30, 2015. The Sheriff’s management is responsible for the Sheriff’s compliance with those procedures and policies. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the party specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are summarized as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2015 (the population sampled from included transactions from October 1, 2014 through September 30, 2015), and performed the following procedures with respect to the Sheriff’s policies and procedures over investigative funds: 1. We obtained the “Disbursement for Investigation” form and observed that the form was properly completed and authorized by appropriate personnel. 2. We obtained the “Purchase of Evidence/Information Voucher” and observed that the form was properly completed to reflect the expenses incurred within the investigation procedures, that the investigative expenditures were properly supported, and that the use of funds was for authorized purposes. No exceptions were noted. 3. We observed that the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed that the amount deposited agreed to the amount returned per the “Receipt for Funds Received” form detail. Honorable Kevin Rambosk Sheriff   43 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 January 12, 2016 Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2015 Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual – General Fund ..................................................................................................................5 Notes to Financial Statements ..........................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance With Government Auditing Standards ..............................................22 Management Letter ........................................................................................................................24 Independent Accountants’ Report ..................................................................................................26 1 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the entity’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2015, and the respective changes in financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 26, 2016 on our consideration of the Supervisor’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisors’ internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 26, 2016 Collier County, Florida Supervisor of Elections Balance Sheet – Governmental Funds September 30, 2015 See accompanying Notes to Financial Statements 3 Grant General Special Total Fund Revenue 2015 Assets Cash and cash equivalents 237,671$ 1,000$ 238,671$ Accounts receivable 87 - 87 Total assets 237,758$ 1,000$ 238,758$ Liabilities and fund balance Liabilities: Accounts payable 14,548$ -$ 14,548$ Accrued liabilities 74,379 - 74,379 Due to Other Governments 2,446 - 2,446 Due to Collier County, Florida Board of County Commissioners 146,385 - 146,385 Total liabilities 237,758 - 237,758 Fund balances: Restricted - 1,000 1,000 Total fund balances - 1,000 1,000 Total liabilities and fund balance 237,758$ 1,000$ 238,758$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2015 See accompanying Notes to Financial Statements 4 Grant General S pecial Total Fund Revenue 2015 Revenues: Intergovernmental -$ 54,004$ 54,004$ Interest - 29 29 Total revenues - 54,033 54,033 Expenditures: General government: Personal services 1,913,220 - 1,913,220 Operating 1,102,680 60,875 1,163,555 Capital outlay 73,915 - 73,915 Total expenditures 3,089,815 60,875 3,150,690 Excess of expenditures over revenues (3,089,815) (6,842) (3,096,657) Other financing sources (uses): Transfers in: General Fund - 6,808 6,808 Collier County, Florida Board of County Commissioners appropriations 3,238,700 - 3,238,700 Transfers out: Special revenue fund (6,808) - (6,808) Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (142,077) - (142,077) Total other financing sources 3,089,815 6,808 3,096,623 Net change in fund balance - (34) (34) Fund balance – beginning of the yea r - 1,034 1,034 Fund balance – end of the yea r -$ 1,000$ 1,000$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues -$ -$ -$ -$ Expenditures: General government: Personal services 1,983,100 1,988,100 1,913,220 74,880 Operating 1,223,400 1,169,872 1,102,680 67,192 Capital outlay 32,200 73,920 73,915 5 Total expenditures 3,238,700 3,231,892 3,089,815 142,077 Excess of expenditures over revenues (3,238,700) (3,231,892) (3,089,815) 142,077 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 3,238,700 3,238,700 3,238,700 - Transfers out: Special Revenue Fund - (6,808) (6,808) - Distribution of excess appropriations: Collier County, Florida Board of County Commissioners - - (142,077) (142,077) Total other financing sources (uses) 3,238,700 3,231,892 3,089,815 (142,077) Net change in fund balance - - - - Fund balance – beginning of the year - - - - Fund balance – end of the year -$ -$ -$ -$ Budget Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 6 1. Summary of Significant Accounting Policies and Practices Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections’ budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor’s office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the SOE is considered to be financially accountable. The general operations of the SOE are funded by appropriations from the Collier County, Florida Board of County Commissioners (BOCC), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the SOE’s general fund. The special revenue fund of the SOE is not budgeted and governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 7 1. Summary of Significant Accounting Policies and Practices (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds: General Fund – The general fund is used to account for the general operations of the Supervisor, and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund – The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 8 1. Summary of Significant Accounting Policies Practices (continued) Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The SOE does not currently hold investments. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 9 1. Summary of Significant Accounting Policies and Practices (continued) Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non-spendable fund balances as of September 30, 2015. Spendable fund balances are classified based on a hierarchy of the Supervisor’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor’s fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements, and have been presented in the fund financial statements in accordance with GASB Statement No. 54. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 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, 2015, the carrying value of the Supervisor’s cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand $ 200 N/A Demand deposits 238,471 N/A Total cash and cash equivalents $ 238,671 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 11 3. Cash and Cash Equivalents (continued) Custodial Credit Risk At September 30, 2015, the Supervisor’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 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, 2014 Additions Deductions 2015 Machinery and equipment 1,176,876$ 73,915$ (136,969)$ 1,113,822$ Less accumulated depreciation (1,010,980) (54,858) 110,461 (955,377)$ Machinery and equipment, net 165,896$ 19,057$ (26,508)$ 158,445$ Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 13 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2014 Increase Retirement 2015 Accrued compensated absences $ 196,105 $ 110,200 $ 150,568 $ 155,737 Of these liabilities, approximately $119,917 is expected to be paid during the fiscal year ending September 30, 2016, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 14 6. Pension Plans (continued) Background (continued) Essentially all regular employees of the Supervisor are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 15 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, 2015 16 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 17 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. SOE employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 18 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the SOE. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor’s contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $106,131, $103,864, and $76,386 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 19 7. Related-Party Transactions For the year ended September 30, 2015, the Board provided funding for the Supervisor that amounted to $3,238,700. At September 30, 2015, the Supervisor had a payable due to the Board of $146,385 comprised as follows: Distribution of excess appropriations $ 142,077 Distribution of interest earnings 1,288 Amounts due for various services 3,020 Total due to Board of County Commissioners $ 146,385 8. Risk Management Collier County, Florida (County) is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self- insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County’s self-insurance program. During the year ended September 30, 2015, the Supervisor was charged $279,509 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 20 8. Risk Management (continued) The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Healthcare Benefits (OPEB) Plan The SOE follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for its post-employment benefits. Plan Description The SOE participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report; however, additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida. Under Florida Statutes, retirees originally hired prior to July 1, 2011, are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 if hired on or after July 1, 2011) are also eligible to participate in the medical plan. The Supervisor provides no subsidy to the retiree, or their dependents, for group health care. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 21 9. Other Postemployment Healthcare Benefits (OPEB) Plan (continued) Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County’s self-insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Supervisor had a net OPEB obligation of $9,736 as of September 30, 2015. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in November 2014. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor’s grants. In fiscal 2015 the matching funds transferred was $6,808. 22 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements, and have issued our report thereon dated January 26, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Jennifer J. Edwards Supervisor of Elections 23 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 26, 2016 24 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International MANAGEMENT LETTER Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of the each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2015 and have issued our report thereon dated January 26, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report which is dated January 26, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Jennifer J. Edwards Supervisor of Elections 25 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 26, 2016 26 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT ACCOUNTANTS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined the Collier County, Florida Supervisor of Elections’ (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Supervisor’s compliance with those requirements. Our responsibility is to express an opinion on the Supervisor's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Supervisor’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor’s compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 26, 2016 Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Years Ended September 30, 2015 and 2014 Collier County, Florida Tax Collector Financial Statements and Other Reports Years Ended September 30, 2015 and 2014 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheets – General Fund ....................................................................................................3 Statements of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ...........................................................................5 Statements of Fiduciary Net Position – Agency Funds ................................................................6 Notes to Financial Statements .......................................................................................................7 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................24 Management Letter ........................................................................................................................26 Independent Accountants’ Report ..................................................................................................28     1 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the years ended September 30, 2015 and 2014, and the related notes to the financial statements, which collectively comprise the Tax Collector’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2015 and 2014, and the respective changes in financial position for the years then ended and the budgetary comparison for the general fund thereof for the year ended September 30, 2015, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2015 and 2014, and the changes in its financial position for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statement is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 8, 2016 on our consideration of the Tax Collector's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 Collier County, Florida Tax Collector Balance Sheets – General Fund See accompanying Notes to Financial Statements. 3   2015 2014 Assets Cash and cash equivalents 7,118,870$ 6,383,588$ Due from other funds 64,735 73,087 Prepaid rent 30,789 23,079 Prepaid expense 19,780 – Security deposit 4,628 4,628 Total assets 7,238,802$ 6,484,382$ Liabilities and fund balance Liabilities: Accounts payable 40,242$ 25,922$ Due to Collier County, Florida Board of County Commissioners 6,364,300 5,725,702 Due to other governmental agencies 834,260 732,758 Total liabilities 7,238,802 6,484,382 Fund balance: Nonspendable 55,197 27,707 Unassigned (55,197) (27,707) Total fund balance – – Total liabilities and fund balance 7,238,802$ 6,484,382$ 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   2015 2014 Revenues: Commissions and fees 18,285,749$ 17,201,400$ Miscellaneous 254,225 234,947 Total revenues 18,539,974 17,436,347 Expenditures: General government: Personal services 9,708,288 9,344,705 Operating 1,587,856 1,587,153 Capital outlay 45,270 46,029 Total expenditures 11,341,414 10,977,887 Excess of revenues over expenditures 7,198,560 6,458,460 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (6,364,300) (5,725,702) Distribution of excess commissions and fees to other governmental agencies (834,260) (732,758) Total other financing uses (7,198,560) (6,458,460) Net change in fund balance – – Fund balance, beginning of year – – Fund balance, end of year –$ –$ Year Ended September 30 Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2015 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 17,408,353$ 17,408,353$ 18,285,749$ 877,396$ Miscellaneous 260,000 260,000 254,225 (5,775) Total revenues 17,668,353 17,668,353 18,539,974 871,621 Expenditures: General government: Personal services 10,040,774 10,040,774 9,708,288 332,486 Operating 1,825,647 1,809,178 1,587,856 221,322 Capital outlay 29,522 45,991 45,270 721 Total expenditures 11,895,943 11,895,943 11,341,414 554,529 Excess of revenues over expenditures 5,772,410 5,772,410 7,198,560 1,426,150 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (5,079,721) (5,079,721) (6,364,300) (1,284,579) Distribution of excess commissions and fees to other governmental agencies (692,689) (692,689) (834,260) (141,571) Total other financing uses (5,772,410) (5,772,410) (7,198,560) (1,426,150) Net change in fund balance – – – – Fund balance, beginning of year – – – – Fund balance, end of year –$ –$ –$ –$ Budget Collier County, Florida Tax Collector Statements of Fiduciary Net Position Agency Funds September 30, 2015 and 2014 See accompanying Notes to Financial Statements. 6   2015 2014 Assets Cash and cash equivalents 7,152,324$ 6,817,938$ Accounts receivable 18,820 14,902 Total assets 7,171,144$ 6,832,840$ Liabilities Due to other funds 64,735$ 73,087$ Due to Collier County, Florida Board of County Commissioners 1,030,992 1,138,080 Due to other governmental agencies 6,048,339 5,536,216 Due to individuals and businesses 27,078 85,457 Total liabilities 7,171,144$ 6,832,840$ September 30     Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 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, 2015 and 2014 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, 2015 and 2014 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, 2015 and 2014 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, 2015 and 2014 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, 2015 and 2014 12 3. Cash At September 30, 2015 and 2014, the carrying value of the Tax Collector’s cash was as follows: 2015 2014 Carrying Carrying Value Value Cash on hand 33,900$ 32,700$ Demand deposits 14,237,294 13,168,826 Total cash and cash equivalents 14,271,194$ 13,201,526$ Type Such amounts are reported as $7,118,870 and $7,152,324 for 2015 and $6,383,588 and $6,817,938 for 2014 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2015, the Tax Collector’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Tax Collector’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the state of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 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, 2015: October 1 2014 Additions Deletions 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$ Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 14 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2014: October 1 2013 Additions Deletions September 30 2014 Infrastructure 11,735$ -$ -$ 11,735$ Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,313,698 46,029 (108,144) 2,251,583 Total Capital Assets 2,437,347 46,029 (108,144) 2,375,232 Less accumulated depreciation: (2,064,019) (149,546) 108,143 (2,105,422) Total capital assets, net 373,328$ (103,517)$ (1)$ 269,810$ 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1 September 30 2014 Increase Decrease 2015 Accrued compensated absences 1,152,878$ 670,017$ (597,987)$ 1,224,908$ October 1 September 30 2013 Increase Decrease 2014 Accrued compensated absences 1,110,288$ 450,850$ (408,260)$ 1,152,878$ Of these liabilities, approximately $600,000 is expected to be paid during the fiscal year ending September 30, 2016, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 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). 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: Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 16 6. Pension Plans (continued)  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 17 6. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 18 6. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 19 6. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector’s contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $598,808, $545,011, and $359,211 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 20 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Tax Collector follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description.   The Tax Collector participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report, however additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida. Under Florida Statutes, retirees originally hired prior to July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) are also eligible to participate in the medical plan. In addition, the Tax Collector provides a 100% subsidy for retirees between the ages of 55 and 65 with more than 10 years of service and 800 hours of accumulated sick leave to remit at the time of retirement for employees hired prior to June 1, 2015. Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County’s self insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Tax Collector’s agency had a net OPEB obligation of $13,851 and $14,077 as of September 30, 2015 and 2014, respectively. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 21 7. Other Postemployment Healthcare Benefits (OPEB) Plan (continued) The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in October, 2015. The notes to the financial statements of the County disclose additional information regarding the other postemployment benefit plan as a whole. 8. Related-Party Transactions During the fiscal years ended September 30, 2015 and 2014, the Board paid commissions and fees to the Tax Collector that amounted to $16,391,328 and $15,458,070, respectively. At September 30, 2015 and 2014, the Tax Collector had a payable due to the Board of $7,395,292 and $6,863,782, respectively, comprised as follows: 2015 2014 Distribution of excess commissions and fees 6,364,300$ 5,725,702$ Agency funds due to the Board 1,030,992 1,138,080 7,395,292$ 6,863,782$ 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Tax Collector participates in the County’s self-insurance program. During the years ended September 30, 2015 and 2014, the Tax Collector was charged $2,833,407 and $2,800,412, respectively, by the County for participation in the risk management program. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 22 9. Risk Management (continued) The County provides coverage for up to $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector has noncancelable operating leases for certain office facilities that were utilized solely by the Tax Collector for fiscal year 2015. The two current leases include options for a 5-year renewal with an annual escalation clauses ranging from 1-5% annually. The following is a schedule of future minimum lease payments under the operating leases: Fiscal year ending September 30: 2016 270,963$ 2017 247,105 2018 81,043 2019 83,469 2020 28,095 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 23 10. Commitments and Contingencies (continued) Rental expense for all operating leases in the aggregate was $362,182 and $359,126 for the years ended September 30, 2015 and 2014, respectively. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2015 or 2014. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector.   24 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Larry H. Ray Tax Collector Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Tax Collector’s financial statements, and have issued our report thereon dated January 8, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Larry H. Ray Tax Collector    25 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 26 CliftonLarsonAllen LLP CLAconnect.com An independent member of Nexia International MANAGEMENT LETTER Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector) as of and for the year ended September 30, 2015, and have issued our report thereon dated January 8, 2016. Auditor’s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.500, Rules of the Auditor General. Disclosures in that report which is dated January 8, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Larry H. Ray Tax Collector    27 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 8, 2016   28 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT       Honorable Larry Ray Tax Collector Collier County, Florida   We have examined the Collier County Tax Collector, Collier County, Florida’s (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Tax Collector's compliance with those requirements. Our responsibility is to express an opinion on the Tax Collector's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Tax Collector’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector’s compliance with specified requirements. In our opinion, the Tax Collector complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.         CliftonLarsonAllen LLP Naples, Florida January 8, 2016