Immokalee Fire Control District 2017-2018 BudgetImmokalee Fire Control District
502 New Market Road East, Immokalee, FL. 34142
Michael J. Choate, Fire Chief
October 4, 2017
Mr. Derek Johnson, General Accounting Manager
Clerk of the Circuit Court, Finance Department
3299 Tamiami Trail East, #403
Naples, FL 34112
Sent via Certified Mail
Dear Mr. Johnson,
Enclosed please find the following:
1. Copy of Resolution 2017-04 of the Immokalee Fire Control District adopting the final
millage rate for the fiscal year 2017-2018;
2. Copy of Resolution 2017-05 of the Immokalee Fire Control District adopting the final
budget for the fiscal year 2017-2018;
3. Copy of the Budget for the fiscal year 2017-2018;
4. Audit for the fiscal year ended 9-30-16.
5. Schedule of Board Meetings for the period of October 1, 2017 through September 30,
2018;
6. District map.
7. Agent of Record: Michael J. Choate
If you have any questions or need additional information, please contact me at (239) 657-2111 or
MChoate(&Immfire. com
Very truly ours,
A
x6t-f r�
MICHAEL J. CHOATE
District Manager/Fire Chief
Enclosures
Administration (239) 657-2111 Operations (239) 657-8587 Fire Prevention (239) 597-9227
Fax(239)657-9489
RESOLUTION # 2017-04
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF
THE IMMOKALEE FIRE CONTROL DISTRICT ADOPTING
THE FINAL MILLAGE RATE FOR LEVYING OF AD
VALOREM TAXES FOR FISCAL YEAR 2017-2018,
COMMENCING ON OCTOBER 1, 2017, AND ENDING ON
SEPTEMBER 30, 2018; PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the Board of Commissioners of the Immokalee Fire Control District, Collier
County, Florida, properly advertised a final budget hearing on September 28h, 2017 as required
by Florida Statute to adopt a final millage rate for the District's fiscal year commencing October
1, 2017, and ending September 30, 2018.
WHEREAS, the gross taxable value for operating purposes not exempt from taxation within the
Immokalee Fire Control District has been certified by the Collier County Property Appraiser as
$936,462,120.
NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BOARD OF THE
IMMOKALEE FIRE CONTROL DISTRICT THAT:
Section 1. The Governing Board does hereby adopt its final millage rate of 3.7500 Mills to be
levied for the general fund upon all real and tangible personal property located within the
boundaries of the above named taxing authority.
Section 2. THE FINAL LEVY OF 3.7500 MILLS IS 9.96% GREATER THAN THE ROLLED
BACK RATE OF 3.7375 MILLS.
Section 3. This final millage rate of 3.7500 mills for the general fund is to fund the expenses for
the fiscal year commencing October 1, 2017, and ending September 30, 2018.
Section 4. This Resolution shall take effect immediately upon its adoption.
THE FOREGOING RESOLUTION WAS OFFERED BY COMMISSIONER
8 r, s }-t, WHO MOVED THE RESOLUTION'S ADOPTION. THE MOTION WAS
SECONDED BY COMMISSIONER AND, UPON BEING PUT TO A VOTE,
THE VOTE WAS AS FOLLOWS:
Commissioner Patricia Anne Goodnight
Commissioner Joseph BristerI- - r—
Commissioner Edward Olesky
Commissioner Bonnie Keen
Commissioner Robert Halman
Duly passed and adopted on this 28th day of September, 2017.
Board of Commissioners of the
Immokalee Fire Control District
By: -
Patricia Anne Goodnight, Chair
Attest by:
RESOLUTION # 2017-05
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF
THE IMMOKALEE FIRE CONTROL DISTRICT ADOPTING
THE FINAL BUDGET FOR THE GENERAL FUND FOR FISCAL
YEAR 2017-2018, COMMENCING ON OCTOBER 1, 2017, AND
ENDING ON SEPTEMBER 30, 2018; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the Board of Commissioners of the Immokalee Fire Control District, Collier
County, Florida, properly advertised a final budget hearing on September 28th, 2017 as required
by Florida Statute to adopt a final millage rate for the District's fiscal year commencing October
1, 2017, and ending September 30, 2018.
WHEREAS, the Immokalee Fire District of Collier County, Florida, set forth the final
appropriations for the General Fund in the amount of $4,633,570 and final revenue estimates in
the amount of $4,332.016 for the Fiscal Year 2017-2018;
NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BOARD OF THE
IMMOKALEE FIRE CONTROL DISTRICT THAT:
Section 1. The Governing Board does hereby adopt its final General Fund Budget for the Fiscal
Year 2017-2018.
Section 2. This Resolution shall take effect immediately upon its adoption.
T FOREGOING RESOLUTION WAS OFFERED BY COMMISSIONER
er WHO MOVED HE RESOLUTION'S ADOPTION. THE MOTION WAS
SECONDED BY COMMISSIONER yL),- AND, UPON BEING PUT TO A VOTE,
THE VOTE WAS AS FOLLOWS:
Commissioner Patricia Anne Goodnight
Commissioner Joseph Brister
Commissioner Edward Olesky
Commissioner Bonnie Keen -�
Commissioner Robert Halman
Duly passed and adopted on this 28th day of September, 2017.
Board of Commissioners of the
Immokalee Fire Control District
By: / '��
Patricia Anne Goodnight, Chair
Attest by:
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IMMOKALEE FIRE CONTROL DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH ADDITIONAL REPORTS
YEAR ENDED
SEPTEMBER 30, 2016
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT ................................... I..........................1
1-3
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)...................................
i -v
BASIC FINANCIAL STATEMENTS
46
GOVERNMENT -WIDE FINANCIAL STATEMENTS:
Statement of Net Position.............................................................................
4
Statement of Activities...................................................................................
5
FUND FINANCIAL STATEMENTS:
50
Governmental Funds:
51
BalanceSheet...........................................................................................
6
Reconciliation of the Balance Sheet - Governmental Funds
to the Statement of Net Position.....................................................................
7
Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds
8
Reconciliation of the Statement of Revenues, Expenditures and Changes
53
in Fund Balance - Governmental Funds to the Statement of Activities ........................
9
NOTES TO THE FINANCIAL STATEMENTS........................................................
10-45
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
54
BUDGET TO ACTUAL COMPARISON - MAJOR FUNDS (General and Special Revenue Funds)
Statement of Revenues. Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Summary Statement..................................................................
46
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Detailed Statement....................................................................
47-49
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
ImpactFee Fund............................................................................... I........
50
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ......................................
51
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ................
52
OTHER REQUIRED SUPPLEMENTARY INFORMATION
Schedule of District Proportionate Share of the Net Pension Liability - Florida Retirement
System (FRS) Pension Plan ........................................... ...........
53
Schedule of District Contributions - Florida Retirement System (FRS) Pension Plan............
53
Schedule of District Proportionate Share of the Net Pension Liability - Health Insurance
Subsidy (HIS) Pension Plan. ..........................................................................
54
Schedule of District Contributions - Health Insurance Subsidy (HIS) Pension Plan .............
54
Notes to the Required Supplementary Information....................................................
55-56
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Basic Financial Statements
Performed in Accordance with Government Auditing Standards ................................... 57-58
Independent Auditor's Report on Compliance for Each Major Program and on Internal
Control Over Compliance Required by the Uniform Guidance ................................... 59-61
Schedule of Findings and Questioned Costs - Federal Awards ....................................... 62-64
Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes........ 65
Independent Auditor's Report to Management ............................ I ............................. 66-74
Management's Response to Independent Auditor's Report to Management ......................... Exhibit
TUSCAN
CompaII➢y9 PA
Certified Public Accountants & Consultants
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee, Florida 34142
Report on the Financial Statements
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
Tax Division
We have audited the accompanying financial statements of the governmental activities and each major fund of Immokalee
Fire Control District (the "District") as of and for the year ended September 30, '_'016; and the related notes to the
financial statements. which collectively comprise the District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility- is to express an opinion on these financial statements based on our audit. We did not audit the financial
statements of Florida Retirement System Pension Plan (FRS) or Health Insurance Subsidy Pension Plan (HIS) as of and
for the year ended June 30, 2016. The District is required to record its proportionate share of the FRS and HIS liability in
the District's govemment-wide financial statements as of September 30, 2016, and for the year then ended. Those financial
statements were audited by other auditors whose report thereon has been furnished to us. and our opinion, insofar as it
relates to the amounts included for Immokalee Fire Control District's government -wide financial statements, is based on
the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in Government Auditing Standards.
issued by the Comptroller General of the United States of America. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the District'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 District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present
fairly, in all material respects, the respective financial position of the governmental activities and each major fund of
Immokalee Fire Control District as of September 30, 2016, and the respective changes in financial position, for the year
then ended in accordance with accounting principles generally accepted in the United States of America_
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers. FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Board of Commissioners
Immokalee Fire Control District
Page 2
Other Matters
Required Supplementary In formation
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis on pages i - v, Schedule of the District's Proportionate Share of the Net Pension Liability - Florida Retirement
System (FRS) Pension Plan. Schedule of District Contributions - Florida Retirement System (FRS) Pension Plan, Schedule
of the District's Proportionate Share of the Net Pension Liability - Health Insurance Subsidy (HIS) Pension Plan. Schedule
of District Contributions - Health Insurance Subsidy (HIS) Pension Plan, and Notes to Required Supplementary
Information, as listed in the table of contents, be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental ,Accounting Standards
Board which considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information - management's discussion and analysis (MD&A), Schedule of the District's Proportionate
Share of the Net Pension Liability - Florida Retirement System (FRS) Pension Plan, Schedule of District Contributions -
Florida Retirement System (FRS) Pension Plan, Schedule of the District's Proportionate Share of the Net Pension Liability
- Health Insurance Subsidy (HIS) Pension Plan, Schedule of District Contributions - Health Insurance Subsidy (HIS)
Pension Plan, and Notes to Required Supplementary Information, as listed in the table of contents, in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with management's responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the required supplementary information -
management's discussion and analysis (MD&A), Schedule of the District's Proportionate Share of the Net Pension
Liability - Florida Retirement System (FRS) Pension Plan, Schedule of District Contributions - Florida Retirement System
(FRS) Pension Plan, Schedule of the District's Proportionate Share of the Net Pension Liability - Health Insurance Subsidy
(HIS) Pension Plan. Schedule of District Contributions - Health Insurance Subsidy (HIS) Pension Plan, and Notes to
Required Supplementary Information, as listed in the table of contents, because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance_
Other Required Supplementan, Infa7nation
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise
Immokalee Fire Control District's basic financial statements. The required supplementary information other than MID&A
- budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic
financial statements. The required supplementary information other than MD&A - budgetary comparison information is
the responsibility of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the required supplementary information other than MD&A -
budgetary comparison information is fairly stated; in all material respects, in relation to the basic financial statements as a
whole.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the
Immokalee Fire Control District's basic financial statements. The accompanying Schedule of Expenditures of Federal
Awards - year ended September 30, 2016 as required by the U.S. Office of Management and Budget Uniform Guidance,
"U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards" is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the 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 accompanying
Board of Commissioners
Immokalee Fire Control District
Page 3
Schedule of Expenditures of Federal Awards for the year ended September 30, 2016 is fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
Other Infernmtion
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the
District's basic financial statements. The Exhibit - Management's Response to Independent Auditor's Report to
Management is not a required part of the basic financial statements but is required by Government Auditing Standards.
Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements
and, accordingly, we do not express an opinion or provide any assurance on it.
Ofher Reporting Required by Section 21 X.415, Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have also issued a report dated June 23, 2017 on our
consideration of Immokalee Fire Control District's compliance with provisions of Section 218.415, Florida Statutes, The
purpose of that report is to describe the scope of our testing of compliance and the results of that testing, and to provide
an opinion on compliance with the aforementioned Statute. That report is an integral part of an auditperformed in
accordance with Sections 218.39 and 218.415, Florida Statutes in considering Immokalee Fire Control District's compliance
with Section 218.415, Florida Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing_ Standardswe have also issued our report dated June 23, 2017 on our
consideration of the District`s internal control over financial reporting and on our tests of its compliance with certain
provisions of law's, regulations, contract and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering Immokalee Fire Control District's
internal control over financial reporting and compliance.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June23, 2017
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(NID&A)
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2016
General Information
The Immokalee Fire Control District's (the District) discussion and analysis is designed
to assist the reader in focusing on significant financial issues, provide an overview of the
District's financial activity, identify changes in the District's financial ability to address
the next and subsequent fiscal years challenges, identify any material deviations from
the approved budget, and identify individual fund issues and concerns.
Management's Discussion and Analysis (MD&A) is intended to serve as an introduction
to the District's basic financial statements which are composed of 1) government -wide
financial statements, 2) fund financial statements, and 3) notes to the financial
statements. It is designed to focus on the current fiscal year's activities, resulting
changes and currently known facts; and should be read in conjunction with the District's
financial statements.
Fiscal Year Highlights
As expected, the District's financial position increased during the fiscal year ended
September 30, 2016 by $49,985. The District's revenue was down $173,266 or 4%
while expenses increased $1,304,731 or 46% as compared to the fiscal year ended
September 30, 2015. The District is debt free.
As expected, the District's financial position increased during the fiscal year ended
September 30, 2015 by $1,527,982. The District's revenue was up $1,526,268 or 53%
while expenses increased $350,798 or 14% as compared to the fiscal year ended
September 30, 2014. The District is debt free.
Effective September 30, 2015, the District adopted the provisions of Governmental
Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for
Pensions (Statement No. 68). The implementation of this standard requires the District
to report its actuarially determined net pension liability of $1,226,192 in the government -
wide financial statements as of September 30, 2015. It also requires additional
disclosure in the notes related to the financial statements and restatement of the prior
year net position in the amount of $1,204,494.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad
overview of the District's finances in a manner similar to a private -sector business. The
statements combine and consolidate governmental fund short-term spendable
resources with capital assets and long-term obligations.
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2016
Government -wide Financial Statements (continued)
The statements include a Statement of Net Position and a Statement of Activities that
are designed to provide consolidated financial information about governmental activities
of the District presented on the accrual basis of accounting.
The Statement of Net Position presents information on all of the District's assets and
liabilities, with the difference between the two reported as net position. Over time, the
increases or decreases to net position may serve as a useful indicator of whether the
financial position of the District is improving or deteriorating.
The government -wide financial statements can be found on pages 4 and 5 of this report.
Assets:
Cash and Other Current Assets
Capital Assets, Net of Depreciation
Total Assets
Deferred Outflows of Resources — Pensions
Liabilities:
Accounts Payable and Other Current Liabilities
Unearned Revenue -impact fees
Long Term Liabilities
Total Liabilities
Deferred Inflows of Resources — Pensions
Net Position:
Net Investment in Capital Assets
Unrestricted Net Assets (Deficit)
Total Net Position
2016 2015
$ 4,981,323 $3,930,493
2,131,017 1,982,437
7.112.340 5.912.930
2.162.049 584.638
95,807
68,608
3,180,395
2,388,749
3.545.809
1,625,291
6.822.011
4.082.648
478,414
490,941
2,131,017
1,982,437
(157,053)
(58,458)
$ 1,973.964 J_1.923,972
The Statement of Activities presents information showing how the District's net position
changed during the fiscal years_ The focus is on both gross and net costs of various
activities that are supported by the District's ad valorem tax and other revenues. Thus,
revenues and expenses are reported in this Statement for some items that will only
result in cash flows in a future fiscal period (e.g. uncollected taxes earned). This
Statement is intended to summarize and simplify the user's analysis of the cost of
various governmental services. An increase or decrease in net position may be an
indication of whether the District's financial health is improving or deteriorating.
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2016
Government -wide Financial Statements (Continued)
Revenues:
Program Fees
Ad Valorem Taxes
Interest Income
Grant Revenue
Impact Fees
Other Revenue
Total Revenue
Expenses
Public Safety Expenses
Change in Net Position
Net Position — Beginning
Net Position - Ending of the fiscal year
2016
$ 49,145
2,552,794
22,977
962,772
399,019
226.171
4,212,878
2015
$ 34,278
2,291,926
18,513
239,429
1,554,968
247,030
4,386,144
4,162.893 2,858,162
49,985 1,527,982
1.923,979 395,997
$1.973.964 $1,923,9Z9
Both of the financial statements distinguish the functions of the District that are
principally supported by ad valorem taxes and intergovernmental revenues. The
governmental activities of the District are for public safety.
General Revenues
During fiscal year 2016, the District received $260,868 more in ad valorem tax dollars
over the prior fiscal year due to an increase in assessable value of property within the
District. This represents an 11 % increase. Other revenues, however, decreased
$434,134 net over the prior fiscal year due to less use of impact fees.
During fiscal year 2015, the District received $125,851 more in ad valorem tax dollars
over the prior fiscal year due to an increase in assessable value of property within the
District. This represents a 6% increase. Other revenues, however, increased
$1,400,417 net over the prior fiscal year due to the allowable use of impact fees.
Expenses
During the fiscal year of 2016 expenses increased by $1,304,731 vs. the prior fiscal
year due to increases in costs. These costs included an increase in wages, retirement
contribution, health insurance, pension liability, and an increase depreciation expense.
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2016
Government -wide Financial Statements (Continued)
During the fiscal year of 2015 expenses increased by $350,798 vs. the prior fiscal year
due to increases in operating costs. These costs included an increase of $31,348 in
retirement contribution, $57,162 in health insurance, and increased depreciation
expense of $191,685.
Net Position
During fiscal year 2016, net position increased by $49,985.
During fiscal year 2015, net position increased by $1,527,982.
Liabilities
There continues to be no long term debt.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The District uses fund
accounting to ensure and demonstrate compliance with finance -related legal
requirements.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike
the government -wide financial statements, governmental fund financial statements
focus on the short-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Both the
governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balance provide a reconciliation to facilitate the
comparison between governmental funds and governmental activities.
The District maintains two governmental funds, the General Fund and the Special
Revenue Fund for impact fees. Each fund's activity is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances. These statements can be found on pages
6 and 8 of this report.
iv
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2016
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the
data provided in the government -wide and fund financial statements and can be found
beginning on page 10 of this report.
General Fund Budgetary Highlights
The District adopts an annual appropriated budget for each of its governmental funds.
The actual ad valorem revenues were approximately $8,129 more than budgeted due to
various factors. The actual expenditures in the General Fund were $1,616,858 less
than the final amended budget. The actual expenditures were less than budget in
general due to not having to use any reserves to cover expenditures.
Capital Assets
The following is a schedule of the District's capital assets:
Capital Assets
September 30
Capital Assets, Net $ 2,131,017 $ 1,982,437
Al
2016
2015
Capital Assets not being depreciated:
Land
114,916
I14,916
Construction in progress
225,243
12,440
Total Capital Assets not being depreciated
340,159
127,356
Capital Assets being depreciated:
Buildings and building improvements
455,967
455,967
Machinery & equipment
1,080,037
1,000,821
Vehicles
2,962,609
2,956,823
Total Capital Assets being depreciated
4,498,613
4,413,611
Less: Accumulated Depreciation
(2,707,755)
(2,558,530)
Capital Assets, being depreciated, net
1,790,858
1,855,081
Capital Assets, Net $ 2,131,017 $ 1,982,437
Al
During the year ended September 30, 2016, the District purchased capital assets of
$479,653 which consisted of construction in progress of $212,803 related to a new
station, $143,786 in vehicles and $123,064 in equipment.
The District purchased capital assets during the year ended September 30, 2015 in the
amount of $1,696,596 which consisted of various new equipment including rescue
equipment,. a 95' ladder truck and a heavy rescue pumper truck.
The following is a summary of changes in long-term liabilities for the year ended
September 30, 2016:
Net pension liability - FRS
Net pension liability - HIS
Temination benefits
Compensated absences
Net OPEB obligation
Due within one year.
September 30 September 30
2016 2015
2,389,598 798,631
602,350 427,561
- 30,142
374,551 247,597
179,310 151,502
$ 3,545,809 S 1,655,433
Economic Factors and Next Year's Budget Rates
The following were factors considered when next year's budget (2016-2017) was
prepared:
• The estimated property assessments increased by approximately $210,000 or 9%
for budgeting purposes for 2017 as compared to 2015. The millage rate stayed
consistent at 3.75 mills for the fiscal year ending September 30, 2017. The District
was awarded the Federal SAFER Grant to help fund personnel costs in FY 16 and
FY17.
• The District was notified that the Seminole Tribe intended to not renew the District's
contract to provide fire and rescue service to the Tribe's Reservation within the
District boundaries effective December 2, 2016. The District's contract revenue will
be reduced by approximately $130,000 as a result of this action for FY2017.
Request for information
This financial report is designed to provide the reader an overview of the District.
Questions regarding any information provided in this report should be directed to:
Immokalee Fire Control District, 502 East New Market Road, Immokalee, Florida 34142,
attention Michael Choate, Interim Fire Chief, telephone (239) 657-2111.
Vi
IMMOKALEE FIRE CONTROL DISTRICT
STATEMENT OF NET POSITION
September 30, 2016
ASSETS
Current assets:
Cash and cash equivalents
Restricted cash and cash equivalents
Due from other governments, including restricted amount of 597,573
Deposits
Prepaid expenses
Total current assets
Noncurrent assets:
Capital assets:
Land
Construction in progress
Depreciable buildings, equipment and vehicles
(net of S2,707,755 accumulated depreciation)
Total noncurrent assets
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES - PENSIONS
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Unearned revenue - impact fees
Current portion of long-term obligations
Total current liabilities
Noncurrent liabilities:
Noncurrent portion of lone -term obligations
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES - PENSION'S
NET POSITION
Net investment in capital assets
Restricted
Unrestricted (deficit)
TOTAL NET POSITION
The accompanying notes are an integral part of this statement.
Page 4 of 74
Governmental
Activities
S 1,705,744
3,013,919
224,463
37,197
4,981,323
114,916
225.243
1.790.858
2.131.017
7.112,340
',162,049
58,996
36.811
3.180.395
3,276.202
3,545.809
6,822,011
478,414
2,131,017
(157,053)
S 1,973,964
LMMOKALEE FIRE CONTROL DISTRICT
STATEMENT OF ACTIVITIES
Year Ended September 30, 2016
EXPENSES
Governmental Activities
Public Safety - Fire Protection
Personnel services
Operating expenses
Depreciation
Interest and fiscal charges
TOTAL EXPENSES - GOVERNMENTAL ACTIVITIES
PROGRAM REVENUES
Charges for services
Operating grants and contributions
TOTAL PROGRAM REVENUES
NET PROGRAM EXPENSES
GENERAL REVENUES
Ad Valorem taxes
Impact fees
Interest
Loss on disposition of capital assets
Other
TOTAL GENERAL REVENUES
INCREASE IN NET POSITION
NET POSITION - Beginning of year
NET POSITION - End of the year
The accompanying notes are an integral part of this statement.
Page 5 of 74
Governmental
Activities
$ 3,184,513
668,255
310,125
4,162,893
49,145
962,772
1,011,917
1150976
2,552,794
399,019
22,977
(20,948)
247,119
3,200,961
49,985
1,923,979
$ 1,973,964
IMMOKALEE FIRE CONTROL DISTRICT Page 6 of 74
BALANCE SHEET - GOVERNMENTAL FUNDS
September 30, 2016
Total
General Impact Fee Governmental
Fund Fund Funds
ASSETS
Cash and cash equivalents S 1,705,744 S - S 1,705,744
Restricted cash and cash equivalents - 3,013,919 3,0131919
Due from other governments 126,890 97,573 224,463
Due from other funds - 69,878 692878
Deposits - - -
Prepaid expenditures 37,197 - 37,197
TOTAL ASSETS $ 1,869,831 $ 3,181,370 $ 57051,201
LIABILITIES AND FUND BALANCE
LI.ABILITIES
Accounts payable S
58.021 $ 975 $
58,996
Accrued liabilities
36,811 -
36,811
Due to other funds
69,878 -
69,878
Unearned revenue - impact fees
- 31180,395
3,1801395
TOTAL LIABILITIES
164,710 3,181,370
3,346,080
FUND BALANCE
Nonspendable
37,197 -
37,197
Assigned
1,340,382 -
1,340,382
Unassigned
327,542
327,542
TOTAL FUND BALANCE
1,705,121
1,705,121
TOTAL LIABILITIES AND
FUND BALANCE $ 1,869,831 S 3,181,370 S 5,051,201
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 7 of 74
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
September 30, 2016
Amount
Total fund balance for governmental funds $ 1,705,121
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the governmental funds.
Capital assets not being depreciated:
Land 114,916
Construction in progress 225,243
Governmental capital assets being depreciated.
Building, Equipment and Vehicles 4,498,613
Less accumulated depreciation (2.707,755)
Deferred outflows and deferred inflows related to pensions are applied to
future periods and, therefore, are not reported in the governmental funds.
Deferred outflows related to pensions 2,162.049
Deferred inflows related to pensions (478,414)
Long-term liabilities are not due and payable in the current period
and, therefore, are not reported in the funds.
Net pension liability - pension FRS
Net pension liability - HIS
Termination benefits
Compensated absences
Net OPEB obligation
Elimination of interfund amounts:
Due from other funds
Due to other funds
Total net position of governmental activities
The accompanying notes are an integral part of this statement.
(2.389.598)
(602,350)
(374,551)
(179,310)
69,878
(69,878)
340,159
1,790,858
1,683,635
(1545,809)
$ 1,973,964
IMMOKALEE FIRE CONTROL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended September 30, 2016
REVENUES
Ad Valorem taxes
Intergovernmental revenues:
Public safety grants - SAFER
State grant - SHSGP USAR
Firefighter supplemental
Fees:
Inspection fees
Impact fees
Plan review fees
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current
Public safety
Personnel services
Operating expenditures
Capital outlay
Debt service
Principal reduction
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Proceeds from disposition of capital assets
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - Beginning of the year
FUND BALANCE - End of the year
Page 8 of 74
2,884,075 - 2,884,075
656,352 11.903 668,255
79,334 400,319 479,653
201,843 - 201,843
201,843 201,843
1,503,278 - 1,503,278
$ 1.705,121 $ $ 1,705,121
The accompanying notes are an integral part of this statement.
Impact
Total
General
Fee
Governmental
Fund
Fund
Funds
$ 2,552,794 S
-
$ 2,552,794
956,483
-
956,483
3,769
-
3,769
2,520
-
2,520
41,727
-
41,727
-
399,019
399,019
7,418
-
7,418
9,774
13,203
22,977
2471119
-
247,119
3,821,604
412,222
4.233,826
2,884,075 - 2,884,075
656,352 11.903 668,255
79,334 400,319 479,653
201,843 - 201,843
201,843 201,843
1,503,278 - 1,503,278
$ 1.705,121 $ $ 1,705,121
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE -
GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Year Ended September 30, 2016
Net change (excess of revenues over (under) expenditures)
in fund balance - total governmental funds
The increase (change) in net position reported for governmental activities
in the statement of activities is different because:
Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities, the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense.
Plus: Expenditures for capital assets 479,653
Less: proceeds from disposition of capital assets -
Plus: gain on disposition of capital assets -
Less: loss on disposition of capital assets (20.948)
Less: current year depreciation (310,125)
The issuance of debt is reported as a financing source in governmental
funds and thus contributes to the change in fund balance. In the
Statement of Net Position, however, issuing debt increases long-term
liabilities and does not affect the Statement of Activities.
Similarly, repayment of principal is an expenditure in the
governmental funds but reduces the liability in the Statement of
Net Position.
Repayments (principal retirement):
Note payable
Some expenses reported in the Statement of Activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in the governmental funds.
Increase (decrease) in deferred outflows
1,577,411
(Increase) decrease in deferred inflows
12.527
(Increase) decrease in net pension liability - pension (FRS)
(1,590,967)
(Increase) decrease in net pension liability - HIS
(174,789)
(Increase) decrease in termination benefits
30,142
(Increase) decrease in compensated absences, net
(126,954)
(Increase) decrease in net OPEB obligation
(27,808)
Increase in net position of governmental activities
The accompanying notes are an integral part of this statement.
Page 9 of 74
Amount
201,843
148,580
(300,438)
$ 49,985
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 10 of 74
NOTE A - ORGANIZATION AND SUNT MARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization
Immokalee Fire Control District (the "District"), is an independent special district
established on May 3, 1955 by Laws of Florida, Chapter 55-30666, as amended.
The District has the general and specific powers prescribed by Florida Statutes
Chapters 189, 633 and Chapter 191. Laws of Florida. Chapter 2000-393 codified,
reenacted, amended and repealed its prior enabling acts. Also, as a result of Laws of
Florida. Chapter 2000-393, the District's name was changed from Immokalee Fire
Control and Rescue District to Immokalee Fire Control District. Laws of Florida,
Chapter 2001-330 amended Laws of Florida, Chapter 2000-393 and authorized the
District to levy impact fees on new construction within the District. During January
2012, the voters within the District passed a referendum increasing the District's
millage cap from 3 mills to 3.75 mills effective for the year ended September 30,
2013. The District was created for the purpose of providing fire control and
protection services as well as crash and rescue services for a designated area in
eastern Collier County. The District operates three (3) station houses. The District is
governed by an elected five (5) member Board of Commissioners serving staggered
four (4) year terms.
Summary of Significant Accounting Policies
The following is a summary of the significant accounting policies used in the
preparation of these basic financial statements.
Reporting Entity
The District adheres to Governmental Accounting Standards Board (GASB)
Statement Number 14, "Financial Reporting Entity" (GASB 14), as amended by
GASB Statement Number 39, "Determining Whether Certain Organizations Are
Component Units" (GASB 39) and GASB Statement Number 61, "The Financial
Reporting Entity: Omnibus - An Amendment of GASB Statements No. 14 and No.
34" (GASB 61). These statements require the basic financial statements of the
District (the primary government) to include its component units, if any. A
component unit is a legally separate organization for which the elected officials of the
primary government are financially accountable. Based on the criteria established in
GASB Statement No. 14, as amended, there are no component units required to be
included or included in the District's basic financial statements.
Il1ZMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 1 I of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
The basic financial statements of the District are comprised of the following:
- Government -wide financial statements
- Fund financial statements
- Notes to the financial statements
Government -wide Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the activities of the District and do
not emphasize fund types. These governmental activities comprise the primary
Qovernment. General governmental and intergovernmental revenues support the
governmental activities. The purpose of the government -wide financial statements is
to allow the user to be able to determine if the District is in a better or worse financial
position than the prior year. The effect of all interfund activity between governmental
funds has been removed from the government -wide financial statements.
Government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange -like transactions are recognized when the exchange takes
place. Revenues, expenses, gains. losses, assets, and liabilities resulting from
nonexchange transactions are recognized in accordance with the requirements of
GASB Statement Number 33, "Accounting and Financial Reporting for
Nonexchange Transactions" (GASB 33).
Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements, rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government -wide
financial statements, rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government -wide financial statements, rather than as
expenditures.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 12 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government -wide Financial Statements, continued
The Statement of Activities demonstrates the degree to which the direct expenses of
a given function are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include: 1)
charges to customers or applicants who purchase, use or directly benefit from goods,
services, or privileges provided by a given function and 2) grants and contributions
that are restricted to meeting the operational or capital improvements of a particular
function. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Program revenues are considered to be revenues generated by services performed
and/or by fees charged such as inspection fees.
Capital grant revenues are grants from other governmental entities restricted for the
purchase of specific capital assets.
Fund Financial Statements
The District adheres to GASB Statement Number 54, "Fund Balance Reporting and
Governmental Fund Type Definitions" (GASB 54).
The accounts of the Distiict are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self -balancing accounts that comprise its assets, liabilities,
fund equity or retained earnings, revenues, and expenditures or expenses, as
appropriate. Government resources are allocated to and accounted for in individual
funds based upon the purpose for which they are to be spent and the means by
which spending activities are controlled.
Fund financial statements for the District's governmental funds are presented after
the government -wide financial statements. These statements display information
about major funds individually and nonmajor funds, in aggregate, for governmental
funds.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 13 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Governmental Funds
When both restricted and unrestricted resources are combined in a fund.
expenditures are considered to be paid first from restricted resources, as
appropriate, and then from unrestricted resources. Governmental fund financial
statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are considered to be available
when they are collected within the current period or soon enough thereafter to pay
liabilities of the current period.
The District's major funds are presented in separate columns on the governmental
fund financial statements. The definition of a major fund is one that meets certain
criteria set forth in GASB Statement Number 34, (GASB 34)"Basic Financial
Statements - and Management's Discussion and Analysis - for State and Local
Governments". The funds that do not meet the criteria of a major fund are
considered non -major funds and are combined into a single column on the
governmental fund financial statements.
Separate financial statements are provided for governmental funds. Major
individual governmental funds are reported in separate columns on the fund financial
statements.
Measurement Focus and Basis of Accounting
Basis of accounting refers to when revenues and expenditures, or expenses, are
recognized in the accounts and reported in the basic financial statements. Basis of
accounting relates to the timing of the measurements made, regardless of the
measurement focus applied.
The government -wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements have been met.
IMM-01CALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 14 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Measurement Focus and Basis of Accounting, continued
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current
period and soon enough thereafter to pay liabilities of the current period. For this
purpose, the District considers tax revenues to be available if they are collected
within sixty days of the end of the current fiscal period.
Revenues susceptible to accrual are property taxes, interest on investments, and
intergovernmental revenues. Property taxes are recorded as revenues in the fiscal
year in which they are levied, provided they are collected in the current period or
within sixty days thereafter. Interest on invested funds is recognized when earned.
Intergovem mental revenues that are reimbursements for specific purposes or projects
are recognized when all eligibility requirements are met.
Expenditures are generally recognized under the modified accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (1)
principal and interest on the long-term debt, if any, which is recognized when due:
and (2) expenditures are generally not divided between years by the recording of
prepaid expenditures.
When both restricted and unrestricted resources are available for use, it is the
District's policy to use restricted resources first, then unrestricted resources as they
are needed.
Separate financial statements are provided for governmental funds.
Non-current Government Assets/Liabilities
GASB 34 requires non-current governmental assets, such as land and buildings, and
non-current governmental liabilities, such as notes payable and capital leases, to be
reported in the governmental activities column in the government -wide Statement of
Net Position.
LMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 15 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Major Funds
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the District, except those required to be accounted for in the Impact Fee
Fund.
The Impact Fee Fund consists of fees imposed and collected by Collier County
based on new construction within the District. The fees are restricted and can only
be used for certain capital expenditures and/or the related debt associated with
growth within the District.
Budgetary Information
The District has elected to report budgetary comparison of major funds as required
supplementary information (RSI).
Investments
The District adheres to the requirements of Governmental Accounting Standards
Board (GASB) Statement Number 31, "Accounting and Financial Reporting for
Certain Investments and for External Investment Pools" (GASB 31), in which all
investments are reported at fair value.
The District held no investments at September 30. 2016.
Capital Assets
Capital assets, which include land, construction in progress, buildings, equipment and
machinery and vehicles are reported in the government -wide financial statements in
the Statement of Net Position.
The District follows a capitalization policy which calls for capitalization of all fixed
assets that have a cost or donated value of $500 or more and have a useful life in
excess of one year.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 16 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Capital Assets, continued
All capital assets are valued at historical cost, or estimated historical cost if actual
historical cost is not available. Donated capital assets are valued at their estimated
fair market value on the date donated. Public domain (infrastructure) capital assets
consisting of certain improvements other than building, including curbs, gutters and
drainage systems, are not capitalized, as the District generally does not acquire such
assets. No debt -related interest expense is capitalized as part of capital assets in
accordance with GASB 34.
Maintenance, repairs and minor renovations are not capitalized. The acquisition of
land and construction projects utilizing resources received from Federal and State
agencies are capitalized when the related expenditure is incurred.
Expenditures that materially increase values, change capacities, or extend useful lives
are capitalized. Upon sale or retirement, the cost is eliminated from the respective
accounts.
Expenditures for capital assets are recorded in the fund statements as current
expenditures. However, such expenditures are not reflected as expenditures in the
government -wide statements, but rather are capitalized and depreciated.
Depreciable capital assets are depreciated using the straight-line method over the
following estimated useful lives:
Asset Years
Buildings 30
Equipment and Machinery 3-15
Vehicles 5-8
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 17 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Budgets and Budgetary Accounting
The District has adopted an annual budget for the General Fund.
The District has also adopted an annual budget for its Special Revenue Fund, the
Impact Fee Fund.
The District follows these procedures in establishing budgetary data for the General
Fund and the Impact Fee Fund:
During the summer of each year, the District Fire Chief submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
the upcoming October 1. The operating budget includes proposed expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these financial statements, are as originally
adopted or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
The District did amend the General Fund budget during the year ended September
30, 2016.
The District did amend the Impact Fee Fund budget during the year ended
September 30, 2016.
INIMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 18 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Impact Fees/Deferred Revenue
Through an inter -local agreement, the District levies an impact fee on new
construction within the District. The intent of the fee is for growth within the District
to pay for capital improvements needed due to the growth. The fee is collected by
Collier County and is remitted to the District. The fee is refundable if not expended
by the District within a reasonable period from the date of collection. The District,
therefore, records this fee as restricted cash and as deferred revenue until the date of
expenditure, at which time it is recognized as revenue and charged to capital outlay in
the fund financial statements and capital assets in the government -wide financial
statements.
Due To/From Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded
by funds affected in the period in which transactions are executed.
Due From Other Governments
No allowance for losses on uncollectible accounts has been recorded since the
District considers all amounts to be fully collectible.
Compensated Absences
The District's employees accumulate annual leave, based on the number of years of
continuous service. Upon termination of employment, employees can receive
payment of accumulated annual leave, if certain criteria are met. The costs of
vacation and personal leave benefits (compensated absences) are expended in the
respective operating funds when payments are made to employees. However, the
liability for all accrued vacation and personal leave benefits is recorded in the
government -wide Statement of Net Position.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because, at
present, it is not necessary in order to assure effective budgetary control or to
facilitate effective cash planning and control.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 19 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Management Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenditures during the reporting period.
Actual results could differ from those estimates.
Net Position
In the government -wide financial statements, no net position has been identified as
restricted. Restricted net position is those net assets that have constraints as to their
use externally imposed by creditors, through debt covenants, by grantors, or by law.
Fund Balances
The governmental fund financial statements the District maintains may include
nonspendable, restricted, committed, assigned and unassigned fund balances.
Nonspendable fund balances are those that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained
intact. Criteria include items that are not expected to be converted into cash, for
example prepaid expenses.
Restricted fund balance consists of amounts that can be spent only on specific
purposes stipulated by constitutional provisions or enabling legislation or externally
imposed by creditors, grantors, contributors, or laws or regulations of other
governments. The District maintained no restricted fund balances at September 30,
?016.
Committed fund balance consists of amounts that represent resources whose use is
constrained by limitations the Board (highest decision making) imposes upon itself.
These constraints made by the Board remain binding unless removed in the same
manner. The District maintained no committed fund balance at September 30,
2016.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 20 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Fund Balances, continued
Assigned fund balance represents the portion of fund balance that reflects the
District's intended use of resources. Such intent can only be established by the
Board. The District maintained assigned fund balance totaling 31,340,382 for various
uses at September 30, 2016. The Board's minimum fund balance policy is to
maintain not less than three (3) months budgeted expenditures in assigned fund
balance as well as other specifically assigned amounts.
Unassigned fund balance is the portion of fund balance representing resources in
excess of what can properly be classified in one of the other categories.
Interfund Transactions
The District considers interfund receivables (due from other funds) and interfund
liabilities (due to other funds) to be loan transactions to and from other funds to
cover temporary (three months or less) cash needs. Transactions that constitute
reimbursements to a fund for expenditures initially made from it that are properly
applicable to another fund are recorded as expenditures in the reimbursing funds and
as reduction of expenditures in the fund that is reimbursed.
Pensions
In the government -wide Statement of Net Position, liabilities are recognized for the
District's proportionate share of each pension plan's net pension liability. For
purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of the Florida Retirement System (FRS) and the
Health Insurance Subsidy (HIS) defined benefit plan and additions to/deductions
from fiduciary net position have been determined on the same basis as they are
reported by the Plans. For this purpose, benefit payments, (including refunds of
employees contributions) are recognized when due and payable in accordance with
the benefit terms.
The District's retirement plans and related amounts are described in a subsequent
note.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 21 of 74
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position reports a separate section for
deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to future
periods and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The deferred amount on pensions is reported in the
government -wide Statement of Net Position. The deferred outflows of resources
related to pensions are discussed in a subsequent note.
In addition to liabilities, the Statement of Net Position reports a separate section for
deferred inflows of resources. This separate financial statement element, defer -ed
inflows of resources, represents an acquisition of net position that applies to a future
period and so will not be recognized as an inflow of resources (revenue) until that
time. The deferred amount on pensions is reported only in the government -wide
Statement of Net Position. A deferred amount on pension results from the difference
in the expected and actual amounts of experience, earnings, and contributions. This
amount is deferred and amortized over the service life of all employees that are
provided with pensions through the pension plan except earnings which are amortized
ZD
over five to seven years.
Subsequent Events
Subsequent events have been evaluated through June 23, 2017, which is the date
the financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
At September 30, 2016, cash and cash equivalents were $4,719,663, which
included $200 cash on hand (General Fund), unrestricted cash of $1,705,544
(General Fund) and restricted cash of $3,013,919, which was held in the Impact
Fee Fund. Restricted cash is comprised of impact fees which are restricted for
capital asset acquisition and/or improvement due to growth within the District.
IMMOKALEE FIRE CONTROL DISTRICT Page 22 of 74
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Deposits
The District's deposit policy allows deposits to be held in demand deposit or money
market accounts and other investments per Florida Statutes, Chapter 218.415(17).
All District deposits were held in a financial institution designated as a qualified
depository by the State Treasurer.
At September 30. 2016, the carrying amounts of the District's deposits were
$1,705,544 and $3,013,919 in the General Fund and the Impact Fee Fund,
respectively. At September 30, 2016, bank balances were $1,752,305 and
$3,013,919 in the General Fund and Impact Fee Fund, respectively. These deposits
were entirely insured by federal depository insurance or by collateral pursuant to the
Public Depository Security Act (Florida Statute 280) of the State of Florida.
NOTE C - DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2016, are as follows:
Due From Due To
Other Funds Other Funds
General Fund:
Impact Fee S S 69,878
Total General Fund 69,878
Special Revenue Fund:
Impact Fee:
General 69,878
Total Special Revenue Fund 69,878
Total S 69,878 S 69,878
lnterfund receivables and payables were eliminated for presentation purposes in the
Statement of Net Position at September 30, 2016.
NOTE D - DUE TO/FROM OTHER GOVERNMENTS
Due from other governments at September 30, 2016, are as follows:
Description Gencral Fund
Collier County Tax Collector 5 20,389
U.S. Department of Homeland Security
FEMA - SAFER - Hiring Grant (CFDA 97.83) 101,142
FEMA - SAFER - Hiring Grant (CFDA 97.83) 5,359
126,890
Impact Fee Fund
Collier County 97,573
S 224,463
IMMOKALEE FIRE CONTROL DISTRICT Page 23 of 74
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
NOTE E - CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the year ended
September 30, 2016:
Balance Balance
October I Increases/ Decreases/ Adjustments/ September 30
2015 Additions Deletions Reclassifications 2016
Capital Assets Not
Being Depreciated:
Land
S 114,916 S
- $
$
S 114,916
Construction in Progress
12,440
212,803
225_'43
Total Capital Assets Not
Being Depreciated
127,356
212,803
340,159
Capital Assets
Being Depreciated:
Buildings
455,967
-
455,967
Equipment & Machinery
1,000,821
123,064
(43,848)
1,080,037
Vehicles
2,956,823
143.786
(1 HMO)
2,962,609
Total Capital Assets
Being Depreciated
4,413,611
266,850
(181,848)
4,498,613
Less Accumulated
Depreciation:
Buildings
(303,592)
(11,500)
-
(315,092)
Equipment & Machinery
(536,348)
(95,602)
42,900
(589,050)
Vehicles
(1,718,590)
(203,023)
118,000
(1.803,613)
Total Accumulated Depreciation
(2,558,530)
(310,125)
160,900
(2,707,755)
Total Capital Assets Being
Depreciated, Net
1,855,081
(43,275)
(20,948)
1,790,858
Capital .Assets, Net $ 1,982,437 S 169,528 S (20,948) S - 2,131,017
Related debt -
Net investment in capital assets S 2,131,017
Depreciation expense was charged to the following functions during the year ended
September 30, 2016:
Amount
General Government $ 310,125
Total Depreciation Expense $ 310,125
IMMOKALEE FIRE CONTROL DISTRICT Page 24 of 74
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
NOTE F - LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended
September 30, 2016:
Balance
Balance
Amounts
October 1 Retirements / September 30
Due Within
2015 Additions Adjustments
2016
One Year
Net pension liability - FRS S 798,631 S 1,590,967 S S
2,389,598
5
Net pension liability - HIS 427,561 174,789
602,350
Termination Benefits 30,142 - (30,142)
Compensated Absences 247,597 126,954
374,551
Net OPEB Obligation 151.502 27,808
179,310
S 1,655,433 31,920,518 $ (30,143) S
3.545,809
S
The following is a summary of the long-term obligations at September 30, 2016:
Amount
Net pension obligation - FRS pension plan. This amount is actuarially
determined through calculation based upon the audited financial
statements of the Florida Retirement Plan.
$ 2,389,598
Net pension obligation - HIS plan. This amount is actuarially determined
through calculation based upon the audited financial statements of the
Florida Retirement Plan.
602,350
Early termination benefits. During the year ended September 30, 2011,
the District accepted the voluntary early retirement of a long term
employee to reduce long term operating costs. The benefits are
payable over a five (5) year period ending October 2015.
Non-current portion of compensated absences. Employees of the
District are entitled to paid leave (sick, vacation and comp time)
based on length of service and job classification, 374,551
Net OPEB obligation. Cumulative difference between annual OPEB
cost and District payments toward the cost of post employment
benefits other than pensions since GASB No, 45 transition date of
October 1, 2011. 179,310
Total long-term liabilities 3,545,809
Current portion -
Noncurrent portion $ 3,545,809
IMMOKALEE FIRE CONTROL DISTRICT Page 25 of 74
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN
General Information about the Florida Retirement System
The Florida Retirement System ("FRS") was created in Chapter 121, Florida
Statutes. The FRS was created to provide a defined benefit pension plan ("Pension
Plan") for participating public employees. All District employees are participants in
the Statewide Florida Retirement System (FRS) under authority of Article X, Section
14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS
was amended in 1998 to add the Deferred Retirement Option Program ("DROP")
under the defined benefit plan and amended in 2000 to provide an integrated defined
contribution plan alternative to the defined benefit plan for FRS members effective
July 1, 2002. This integrated defined contribution pension plan is the FRS Investment
Plan. Chapter I] I Florida Statutes, established the Retiree Health Insurance
Subsidy (HIS) Program, a separate cost-sharing, multiple -employer defined benefit
pension plan to assist retired members of any State -administered retirement system in
paying the costs of health insurance.
Essentially all regular employees of the District are eligible to enroll as members of the
State -administered FRS. Provisions relating to the FRS are established by Chapters
121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238,
Florida Statutes: and Florida Retirement System Rules, Chapter 60S, Florida
Administrative Code; wherein eligibility, contributions, and benefits are defined and
described in detail. Such provisions may be amended at any time by further action
from the Florida Legislature. The FRS is a single retirement system administered by
the Florida Department of Management Services, Division of Retirement, and
consists of two cost-sharing, multiple -employer defined benefit plans (Pension and
HIS Plans) and other nonintegrated programs. A comprehensive annual financial
report of the FRS, which includes its financial statements, required supplementary
information, actuarial report, and other relevant information dated June 30, 2016, is
available from the Florida Department of Management Services' Website
(www.dms.myflorida.com).
The District's total pension expense, $570,330 for the year ended September 30,
2016, is recorded in the government -wide financial statements. Total District actual
retirement contribution expenditures were $394,512, $255,412 and $224,064 for
the years ended September 30, 2016, 2015 and 2014, respectively. The District
contributed 100% of the required contributions.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 26 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan
Plan Description. The FRS Pension Plan ("Plan") is a cost-sharing, multiple -
employer defined benefit pension plan, with a Deferred Retirement Option Program
(DROP) for eligible employees. The general classes of membership are as follows:
Regular Class - Members of the FRS who do not qualify for membership in the
other classes.
Senior Management Service Class (SMSC) - Members in senior management
level positions.
Special Risk Class - Members who are employed as certified firefighters and
meet the criteria to qualify for this class.
Elected Officials - Members who are elected by the voters within the District
boundaries.
Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable
service and employees enrolled in the Plan on or after July 1, 2011, vest at eight
years of creditable service. All vested members, enrolled prior to July 1, 2011, are
eligible for normal retirement benefits at age 62 or at any age after 30 years of
service, except for those members classified as special risk who are eligible for
normal retirement benefits at age 55 or at any age after 25 years of service. All
members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for
normal retirement benefits at age 65 or any time after 33 years of creditable service,
except for members classified as special risk who are eligible for normal retirement
benefits at age 60 or at any age after 30 years of service. Members of both Plans
(Pension and HIS) may include up to 4 years of credit for military service toward
creditable service. The Plan also includes an early retirement provision; however,
there is a benefit reduction for each year a member retires before his or her normal
retirement date. The Plan provides retirement, disability, death benefits, and annual
cost of living adjustments to eligible participants.
DROP, subject to provisions of Section 121.091, Florida Statutes, permits
employees eligible for normal retirement under the Plan to defer receipt of monthly
benefit payments while continuing employment with an FRS employer. An employee
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 27 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan, continued
may participate in DROP for a period not to exceed 60 months after electing to
participate. During the period of DROP participation, deferred monthly benefits are
held in the FRS Trust Fund and accrue interest. The net pension liability does not
include amounts for DROP participants, as these members are considered retired and
are not accruing additional pension benefits.
Benefits Provided. Benefits under the Plan are computed on the basis of age,
and/or years of service, average final compensation, and credit service. Credit for
each year of service is expressed as a percentage of the average final compensation.
For members initially enrolled before July 1, 2011, the average final compensation is
the average of the five highest fiscal years' earnings; for the members initially enrolled
on or after Julv 1, 2011, the average final compensation is the average of the eight
highest fiscal years' earnings. The total percentage value of the benefit received is
determined by calculating the total value of all service, which is based on retirement
plan and/or the class to which the member belonged when the service credit was
earned_ Members are eligible for in -line -of -duty or regular disability and survivors'
benefits. The following chart shows the percentage value of each year of service
credit earned:
Class, Initial Enrollment, and Retirement Age/Years of Service
%Value
Regular Class and elected members initially enrolled before July 1, 2011
Retirement up to age 62, or up to 30 years of service
1.60
Retirement at age 63 or with 31 years of service
1.63
Retirement at age 64 or with 32 years of service
1.65
Retirement at age 65 or with 33 or more years of service
1.68
Regular Class and elected members initially enrolled on or after July 1. 2011
Retirement up to age 65 or up to 33 years of service
1.60
Retirement at age 66 or with 34 years of service
1.63
Retirement at age 67 or with 35 years of service
1.65
Retirement at age 68 or with 36 or more years of service
1.68
Special Risk Regular
Service from December 1, 1970 through September 30, 1974 2.00
Service on or after October 1, 1974 3.00
Senior Management Service Class 2.00
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 28 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan, continued
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in
the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011,
the annual cost -of -living adjustment is 3 percent per year. If the member is initially
enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is
an individually calculated cost -of -living adjustment. The annual cost -of -living
adjustment is a proportion of 3 percent determined by dividing the sum of the
pre -July 2011 service credit by the total service credit at retirement multiplied by 3
percent. Plan members initially enrolled on or after July 1, 2011, will not have a
cost -of -living adjustment after retirement.
Contributions. The Florida Legislature establishes contribution rates for
participating employers and employees. Contribution rates during the
year ended September 30, 2016 were as follows:
Percent of Gross
Employee Employer (1) Employer (3) Employer (4)
Florida Retirement System, Regular
3.00
7.37
7.26
7.52
Florida Retirement System, Senior Management Service
3.00
21.14
21.43
21 77
Florida Retirement System, Special Risk
3.00
19.82
22-04
22.57
Deferred Retirement Option Program - Applicable
to Members from All of the Above Classes
0.00
12.88
12.88
1299
Florida Retirement System, Reemployed Reerce
(2)
(21
V/A
N/A
Florida Retirement System, Elected Orificial
3.00
43.24
4227
4247
Notes:
(1) Employer rates include 1.26 percent for the post employment health insurance subsidy. Also.
employer rates, other than for DROP participants, include .04 percent for administrative costs for
the Investment Plan. Rates for 7;1/14 - 6/30115.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include A4 percent for administrative costs for
the Investment Plan. Rates for 7/1/15 - 6/30/16.
(4) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/16 - 6/30117.
As defined by the Plan.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 29 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan, continued
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the Pension Plan. At
September 30, 2016, the District reported a pension liability of $2,389,598 for its
proportionate share of the net pension liability. The net pension liability was measured
as of September 30, 2016, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1, 2016. The
District's proportionate share of the net pension liability was based on the District's
2015-16 fiscal year contributions relative to the total 2015-16 fiscal year
contributions of all participating members. At September 30, 2016, the District's
proportionate share was .009463726 percent, which was an increase of .003280620
percent from its proportionate share measure as of September 30, 2015.
For the year ended September 30, 2016, the District recognized a pension expense
of 5528,126. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to the pension from the following sources:
Deferred Outflows
Deferred Inflows
Description
of Resources
of Resources
Differences between expected
and actual experience
$ 182,966
$ 22.249
Change. of assumptions
144,564
-
Net difference between projected and
actual earnings on pension plan investments
1.099,304
454,793
Changes in proportion and differences between
District contributions and proportionate share
of contributions
424,810
-
District contributions subsequent to the
measurement date
97,738
-
Total
$ 1,949,382
$ 477,042
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 30 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan, continued
The deferred outflows of resources related to the FRS pension, totaling $97,738,
resulting from District contributions subsequent to the measurement date, will be
recognized as a reduction on the net pension liability in the fiscal year ended
September 30, 2017. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the pension will be recognized in pension
expense over the remaining service period of 6.4 years as follows:
Fiscal Years Ending
September 30
Amount
2017
$ 289,623
2018
289,623
2019
289,623
2020
289,625
2021
135,203
Thereafter
80,905
Total
$ 1,374,602
Actuarial Assumptions. The total pension liability in the July 1, 2016, actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.60 percent
Realpayroll growth 0.65 percent
Salary increases 3.25 percent, average, including inflation
Investment rate of return 7.60 percent, net of pension plan
investment expense. including inflation
Mortality rates were based on the Generational RP -2000 with Projection Scale BB.
The actuarial assumptions used in the July 1, 2016. valuation were based on the
results of an actuarial experience study for the period July 1, 2008 through June 30,
2013.
IMNIOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 31 of 74
MOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan, continued
The long-term expected rate of return on pension plan investments was not based on
historical returns, but instead is based on a forward-looking capital market economic
model. The allocation policy's description of each asset class was used to map the
target allocation to the asset classes shown below. Each asset class assumption is
based on a consistent set of underlying assumptions, and includes an adjustment for
the inflation assumption. The target allocation and best estimates of arithmetic and
geometric real rates of return for each major asset class are summarized in the
following table:
Total 100.00%
Assumed inflation - Mean 2.60% 1.90%
(1) As outlined in the Plan's investment policy
Discount Rate. The discount rate used to measure the total pension liability
was 7.60 percent. The Plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees.
Therefore, the discount rate for calculating the total pension liability is equal to the
long-term expected rate of return.
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation (1)
Return
Return
Deviation
Cash
1.00%
3.0%
3.0%
1.717o
Fixed income
18.0070
4.7%
4.6%
4.6%
Global equity
53.00%
8.1%
6.8%
17.217o
Real estate (property)
10.00%
6.47c
5.8%
12.05?
Private equity
6.00%
11.5%
7.8%
30.0%
Strategic investments
12.00%
6.1%
5.6%
11.1%
Total 100.00%
Assumed inflation - Mean 2.60% 1.90%
(1) As outlined in the Plan's investment policy
Discount Rate. The discount rate used to measure the total pension liability
was 7.60 percent. The Plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees.
Therefore, the discount rate for calculating the total pension liability is equal to the
long-term expected rate of return.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 32 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan, continued
Sensitivity of the District's Proportionate Share of the Net Pension Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net pension liability calculated using the discount rate of
7.60 percent, as well as what the District's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1 -percentage -point
lower (6.60 percent) or 1 -percentage -point higher (8.60 percent) than the current
rate:
1% Current 1%
Decrease Discount Rate Increase
(6.6070) (7.60%) (8.60%)
District's proportionate share of
the net FRS pension liability $ 4,399,412 $ 2,389,598 $ 716,694
Pension Plan Fiduciary Net Position. Detailed information about pension plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Systems Comprehensive Annual Financial Report (FRS CAFR)
dated June 30, 2016.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.conVworkforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2016, the District reported a
payable of 533,706 for the outstanding amount of contributions in the pension plan
required for the year ended September 30, 2016.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 33 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
HIS Plan
Plan Description. The Health Insurance Subsidy Plan ("HIS Plan") is a cost-sharing,
multiple -employer defined benefit pension plan established under section 112.363,
Florida Statutes. The benefit is a monthly payment to assist retirees of
State -administered retirement systems in paying their health insurance costs and is
administered by the Division of Retirement within the Florida Department of
Management Services.
Benefits Provided. For the year ended September 30, 2016, eligible retirees
and beneficiaries received a monthly HIS payment equal to the number of years of
creditable service completed at the time of retirement multiplied by $5. The
payments are at least $30 but not more than $150 per month, pursuant to Section
112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree
under a State -administered retirement system must provide proof of health insurance
coverage, which can include Medicare.
Contributions. The HIS Plan is funded by required contributions from FRS
participating employers as set by the Florida Legislature. Employer contributions are
a percentage of gross compensation for all active FRS members. For the year ended
September 30, 2016, the contribution rate ranged between 1.66 percent and 1.66
percent of payroll pursuant to Section 112.363, Florida Statutes. The District
contributed 100 percent of its statutorily required contributions for the current and
preceding three years. HIS Plan contributions are deposited in a separate trust fund
from which HIS payments are authorized. HIS Plan benefits are not guaranteed and
are subject to annual legislative appropriation. In the event the legislative
appropriation or available funds fail to provide full subsidy benefits to all participants,
benefits may be reduced or cancelled.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the HIS Plan. At September
30, 2016, the District reported a HIS liability of $602,350 for its proportionate share
of the net HIS Plan's net pension liability. The net pension liability was measured as
of September 30, 2016, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1, 2016. The
District's proportionate share of the net HIS liability was based on the District's
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 34 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
HIS Plan, continued
2015-16 fiscal year contributions relative to the total 2015-16 fiscal year
contributions of all participating members. At September 30, 2016, the District's
proportionate share was .005168356 percent, which was an increase of .000975933
percent from its proportionate share measured as of September 30, 2015.
For the fiscal year ended September 30, 2016, the District recognized HIS expense
of $42,204. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Description
Differences between expected
and actual experience
Change of assumptions
Net difference between projected and actual
earnings on HIS pension plan investments
Changes in proportion and differences between
District HIS contributions and proportionate
share of HIS contributions
District contributions subsequent to the
measurement date
Deferred Outflows Deferred Inflows
of Resources of Resources
$ - $ 1,372
94524 -
305
110,047
7,791 -
Total $ 212,667 $ 1,372
The deferred outflows of resources related to HIS, totaling $7,791, resulting from
District contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the year ended September 30, 2017. Other
amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense over the
remaining service period of 7.2 years as follows:
Fiscal Years Ending
September 30
Amount
2017
$ 32,851
2018
32,851
2019
32,851
2020
32,852
2021
32,775
Thereafter
39,324
Total
$ 203,504
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 35 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
HIS Plan, continued
Actuarial Assumptions. The total pension liability in the July 1, 2016, actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.60 percent
Real Payroll Growth 0.65 percent
Salary Increases 3.25 percent, average, including inflation
Municipal Bond Rate 2.85 percent
Mortality rates were based on the Generational RP -2000 with Projected Scale BB.
Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has
been completed for the Plan.
Discount Rate. The discount rate used to measure the total HIS liability was
2.85 percent. In general, the discount rate for calculating the total HIS liability is
equal to the single rate equivalent to discounting at the lone -term expected rate of
return for benefit payments prior to the projected depletion date. Because the HIS
benefit is essentially funded on a pay-as-you-go basis, the depletion date is
considered to be immediate, and the single equivalent discount rate is equal to the
municipal bond rate selected by the plan sponsor. The Bond Buyer General
Obligation 20 -Bond Municipal Bond Index was adopted as the applicable municipal
bond index.
Sensitivity of the District's Proportionate Share of the Net HIS Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net HIS liability calculated using the discount rate of
2.85 percent, as well as what the District's proportionate share of the net HIS
liability would be if it were calculated using a discount rate that is 1 -percentage -point
lower (1.85 percent) or 1 -percentage -point higher (3.85 percent) than the current
rate:
1% Current 1%
Decrease Discount Rate Increase
(1.85%) (2.85%) (3.85%)
District's proportionate share of
the net HIS liability $ 691,033 $ 602,350 $ 528,749
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 36 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
HIS Plan, continued
Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's
fiduciary net position is available in the separately issued FRS Pension Plan and
Other State Administered Comprehensive Annual Financial Report (FRS CAFR)
dated June 30, 2016.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myCorida.conn/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2016, the District reported a
payable of $2,694 for the outstanding amount of contributions to the HIS plan required
for the fiscal ended September 30, 2016.
FRS - Defined Contribution Pension Plan
The SBA administers the defined contribution plan officially titled the FRS Investment
Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial
statements and in the State of Florida Comprehensive Annual Financial Report.
As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect
to participate in the Investment Plan in lieu of the FRS defined benefit plan. District
employees participating in DROP are not eligible to participate in the Investment
Plan. Employer and employee contributions, including amounts contributed to
individual member's accounts, are defined by law, but the ultimate benefit depends in
part on the performance of investment funds. Benefit terms, including contribution
requirements, for the Investment Plan are established and may be amended by the
Florida Legislature, The Investment Plan is funded with the same employer and
employee contribution rates that are based on salary and membership class (Regular
Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS,
September 30, 2016
Page 37 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS - Defined Contribution Pension Plan, continued
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 FRS Financial Guidance Program, are
funded through an employer contribution of 0.06 percent of payroll and by forfeited
benefits of plan members. Allocations to the investment member's accounts during
the 2015-16 fiscal year were as follows:
Florida Retirement System, Reemployed Retiree (2) N/A N/A N/A
Florida Retirement System, Elected Official 3.00 43.24 42.27 42.47
Notes:
( 1) Employer rates include 1_26 percent for the post -employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .04 percent for administrative costs of
the Investment Plan. Rates for 7/1/14 - 6/30/15.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates. other than for DROP participants, include .04 percent for administrative costs for
the Investment Plan. Rates for 7/I115 - 6/30/16.
(4) Employer rates include 1 66 percent for the post employment health insurance subsidy. Also.
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/16 - 6/30/17.
As defined by the Plan.
For all membership classes, employees are immediately vested in their own
contributions and are vested after 1 year of service for employer contributions and
investment earnings. If an accumulated benefit obligation for service credit originally
earned under the FRS Pension Plan is transferred to the Investment Plan, the member
must have the years of service required for FRS Pension Plan vesting (including the
service credit represented by the transferred funds) to be vested for these funds and
the earnings on the funds. Nonvested employer contributions are placed in a
suspense account for up to 5 years. If the employee returns to FRS -covered
employment within the 5 -year period, the employee will regain control over their
account. If the employee does not return within the 5 year period, the employee will
forfeit the accumulated account balance. For the fiscal year ended September 30,
2016, the information for the amount of forfeitures was unavailable from the SBA;
however, management believes that these amounts, if any, would be immaterial to
the District.
Percent of Gross Salary,
Class
Employee
Employer (1)
Employer (3)
Employer (4)
Florida Retirement System, Regular
3-00
7.37
7.26
7.5 -
Florida Retirement System, Senior Management Service
300
21.14
21.43
21.77
Florida Retirement System, Special Risk
3.00
19.82
22.04
2257
Deferred Retirement Option Program - Applicable
to Members from All of the Above Classes
0.00
12_28
12.88
12.99
Florida Retirement System, Reemployed Retiree (2) N/A N/A N/A
Florida Retirement System, Elected Official 3.00 43.24 42.27 42.47
Notes:
( 1) Employer rates include 1_26 percent for the post -employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .04 percent for administrative costs of
the Investment Plan. Rates for 7/1/14 - 6/30/15.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates. other than for DROP participants, include .04 percent for administrative costs for
the Investment Plan. Rates for 7/I115 - 6/30/16.
(4) Employer rates include 1 66 percent for the post employment health insurance subsidy. Also.
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/16 - 6/30/17.
As defined by the Plan.
For all membership classes, employees are immediately vested in their own
contributions and are vested after 1 year of service for employer contributions and
investment earnings. If an accumulated benefit obligation for service credit originally
earned under the FRS Pension Plan is transferred to the Investment Plan, the member
must have the years of service required for FRS Pension Plan vesting (including the
service credit represented by the transferred funds) to be vested for these funds and
the earnings on the funds. Nonvested employer contributions are placed in a
suspense account for up to 5 years. If the employee returns to FRS -covered
employment within the 5 -year period, the employee will regain control over their
account. If the employee does not return within the 5 year period, the employee will
forfeit the accumulated account balance. For the fiscal year ended September 30,
2016, the information for the amount of forfeitures was unavailable from the SBA;
however, management believes that these amounts, if any, would be immaterial to
the District.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 38 of 74
NOTE G - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS - Defined Contribution Pension Plan, continued
After termination and applying to receive benefits, the member may rollover vested
funds to another qualified plan, structure a periodic payment under the Investment
Plan, receive a lump -sum distribution, leave the funds invested for future distribution,
or any combination of these options. Disability coverage is provided; the member
may either transfer the account balance to the FRS Pension Plan when approved for
disability retirement to receive guaranteed lifetime monthly benefits under the FRS
Pension Plan, or remain in the Investment Plan and rely upon that account balance for
retirement income.
The District's Investment Plan pension expense totaled $179,095 for the fiscal year
ended September 30, 2016.
Pavables to the Investment Plan. At September 30, 2016, the District reported a
payable of $0 for the outstanding amount of contributions to the Plan required for the
fiscal year ended September 30, 2016.
NOTE H - PROPERTY TAXES
Property taxes are levied after formal adoption of the District's budget and become
due and payable on November 1 of each year and are delinquent on April 1 of the
following year. Discounts on property taxes are allowed for payments made prior to
the April 1 delinquent date. Tax certificates are sold to the public for the full amount
of any unpaid taxes and must be sold not later than June 1 of each year. The billing,
collection, and related recordkeeping of all property taxes is performed for the
District by the Collier County Tax Collector. No accrual for the property tax levy
becoming due in November 2016 is included in the accompanying financial
statements, since such taxes are collected to finance expenditures of the subsequent
period.
Procedures for collecting delinquent taxes, including applicable tax certificate sales
and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is
approximately two years after taxes become delinquent and occurs only upon request
of a holder of a delinquent tax certificate. As of September 30, 2016, $20,389 was
due from the Collier County Tax Collector for ad valorem taxes and excess fees.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
NOTE H - PROPERTY TAXES, CONTINUED
Page 39 of 74
Important dates in the property tax cycle are as follows:
Assessment roll certified
Millage resolution approved
Beginning of fiscal year for which
taxes have been levied
Taxes due and payable (levy date)
Property taxes payable -
maximum discount (4 percent)
Due date
Taxes become delinquent (lien date)
Tax certificates sold by the Collier
County Tax Collector
July 1
No later than 93 days following
certification of assessment roll
October 1
November 1 with various discount
provisions through March 31
30 days after levy date
March 31
April 1
Prior to June 1
For the year ended September 30, 2016, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of $3.75 per $1,000 (3.75 mills) of the 2015
net taxable value of real property located within the District.
NOTE I - IMPACT FEE FUND ACTIVITY
During the year ended September 30, 2016, the Impact Fee Fund had the
following activity:
Amount
Unearned revenue, October 1, 2015 $ 2,388,749
Impact fee receipts* 1,190,665
Interest income 13,203
Transfer In from General Fund -
Capital outlay (400,319)
Commissions (admin fee) - paid to Collier County (11,903)
Unearned revenue, September 30, 2016 $ 3,180,395
* Includes $97,573 due from Collier County.
IMMOKALEE FIRE CONTROL DISTRICT Page 40 of 74
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
NOTE J - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of. damage to,
and destruction of assets; errors and omissions; injuries to employees; and natural
disasters.
Insurance programs for general/professional liability, automobile and property are
covered by commercial insurance. The District retains the risk of loss up to a
deductible amount (ranging from $0 to $2,500) with the risk of loss in excess of this
amount transferred to the insurance carrier with limits of liability of $1,000,000 per
occurrence and $10,000,000 in the aggregate. The District is third party insured
for employee health, dental and vision as well as workers' compensation.
NOTE K - FUND BALANCE ALLOCATIONS
Fund balance was allocated for the following purposes at September 30, 2016:
Nonspendable Fund Balance Amount
General Fund
Prepaid expenditures $ 37,197
Total Nonspendable Fund Balance - General Fund $ 37,197
Assigned Fund Balance Amount
General Fund
Assigned for fiscal year startup (90 day operations) $ 733:437
Fleet reserves 150.000
Accrued liabilities 241,071
Disaster reserves 75,000
800 Radio reserves 11,700
OPEB GASB reserves 129,174
Total Assigned Fund Balance - General Fund $ 1,3401382
NOTE L - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB)
Plan Description
The District's defined contribution OPEB Plan provides the opportunity to obtain
health insurance benefits to its retired employees. The year ended September 30,
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 41 of 74
NOTE L - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Plan Description, continued
2012, was the District's transition year. GASB No. 45 required transition at
September 30, 2010. As such, the District implemented GASB No. 45 on a
prospective basis. All retired full-time employees are eligible for OPEB benefits if
actively employed by the District immediately before retirement. As of September
30, 2016, there were two retirees receiving these benefits. The benefits are provided
both with and without contractual agreements.
Funding Policy
The District's OPEB benefits are unfunded. The retiree is eligible for benefits under
the District's health plan, but is obligated to reimburse the District for 100% of the
cost of the retiree's health coverage. As such., the District has no ultimate obligation
for the retiree's health insurance premium. The District acts as agent for the retiree on
a pay-as-you-go basis and recognizes expenditures at the time the premiums are due.
The District does, however, incur the cost of premium rate being increased on its
active employees due to providing coverage to its retirees. The District has not
determined if a separate trust fund or equivalent arrangement will be established into
which the District would make contributions to advance -fund the obligation.
Therefore, no separate financial statement is issued. All required disclosures are
presented herein.
Annual OPEB Cost and Net OPEB Obligation
The District's annual other postemployment benefit (OPEB) cost (expense) is
calculated based on the annual required contribution of the employer (ARC). The
District has elected to calculate the ARC and related information and has used the
alternative measurement method, in conjunction with an actuarial firm, permitted by
GASB Statement 45 for employers in plans with fewer than one hundred total plan
members. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The following
table shows the components of the District's annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the District's net OPEB
oblieation to the Retiree Health Plan:
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 42 of 74
NOTE L - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Annual OPEB Cost and Net OPEB Obligation, continued
Amount
Annual required contribution $ 43,572
Interest on net OPEB obligation 3,314
Adjustment to annual required contribution (3,628)
Annual OBEB cost (expense) 43,258
Contributions made (15.450)
Increase in net OBEB obligation 27,808
Net OPEB obligation - beginning of year 151,502
Net OPEB obligation - end of year S 179,310
The District's annual OPEB cost, the percentage of annual OPEB cost contributed to
the plan, and the net OPEB obligation for fiscal year 2016 is as follows:
(1) Estimated. No actuarial study performed
Funded Status and Funding Process
As of September 30, 2016, the actuarial accrued liability (AAL) for benefits was $548,117,
all of which was unfunded. The covered payroll (annual payroll of active employees
covered by the plan) was $1,735,883, and the ratio of the unfunded actuarial accrued
liability to the covered payroll was 24.13 percent.
Percentage of
Annual OPEB
Fiscal
Annual
Cost
Net OPEB
Year Ended
OPEB Cost
Contributed
Obligation
09/30/16
S
27,808
0.0%
$
179,310
09/30/15
$
28,898
0.0%
$
151,502
09/30/14
$
10,352
0.0%
$
122,604
09/30/13
(1) $
30,000
0.0%
$
112,252
09/30/12
S
82,252
0.0%O
S
82,252
(1) Estimated. No actuarial study performed
Funded Status and Funding Process
As of September 30, 2016, the actuarial accrued liability (AAL) for benefits was $548,117,
all of which was unfunded. The covered payroll (annual payroll of active employees
covered by the plan) was $1,735,883, and the ratio of the unfunded actuarial accrued
liability to the covered payroll was 24.13 percent.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 43 of 74
NOTE L - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Funded Status and Funding Process, continued
The projection of future benefit payments for an ongoing plan involves 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. The schedule of funding progress presents
multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive
plan (the plan as understood by the employer and plan members) and include types
of benefits provided at the time of each valuation and the historical pattern of sharing
of benefit costs between the employer and plan members to that point. The 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,
consistent with the long-term perspective of the calculations.
The following simplifying assumptions were made:
Retirement age for active employees - Based on the historical average retirement age
for the covered group, active plan members were assumed to retire at age 56.
Marital status - Marital status of member at the calculation date was assumed to
continue throughout retirement.
Mortality - Life expectancies were based on RP2000 Mortality Tables for Males and
Females projected 10 years.
Turnover - Non -group -specific age -based turnover data from GASB Statement 45
were used as the basis for assigning active members a probability of remaining
employed until the assumed retirement age and for developing an expected future
working lifetime assumption for purposes of allocating to periods the present value
of total benefits paid.
IMMOKALEE FIRE CONTROL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
Page 44 of 74
NOTE L - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Methods and Assumptions, continued
Healthcare cost trend rate - The expected rate of increase in healthcare insurance
premiums was based on the Getsen model promulgated by the Society for Actuaries
for use in long-term trend projection. A rate of 8.0 percent initially, reduced to an
ultimate rate of 4.7 percent after ten years was used.
Health insurance premiums - November 1, 2011 health insurance premiums for
retirees were used as the basis for calculation of the present value of total benefits to
be paid.
Payroll growth rate - The expected long-term payroll growth rate of 2.5 percent was
based on the average annual percentage change in the Consumer Price Index for
Urban Wage Earners and Clerical Workers (CPA -W) from 2003 - 2008.
Based on the historical and expected returns of the District's short-term investment
portfolio, a discount rate of 4.0 percent was used. In addition, a simplified version of
the entry age actuarial cost method was used. The unfunded actuarial accrued liability
is being amortized as a level percentage of projected payroll in an open basis. The
remaining amortization period at September 30, 2016, was twenty-eight (28) years.
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Fundina Progress for the Retiree Health Plan
NOTE M - TERMINATION BENEFITS
During the year ended September 30, 2011, the District accepted the early
retirement offer of a long term employee in exchange for severance pay in the gross
amount of $140,000 to reduce long-term operating costs. The severance package
Actuarial
UAAL as a
Actuarial
Accrued
Unfunded
Percentage
Actuarial
Value of
Liability (AAL)
AAL
Funded
Covered
of Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(b -a)
(a/b)
(c)
((b-a)/c)
9/30/16
$ 129,174
S 548,117
S 418,943
23.57%
$1.735,883
24.13%
9/30/15
$ 129,045
$ 430,337
$ 301,292
29.99%
$1,312.191
22.96%
9/30/14
S 85,470
$ 539,307
$ 453,837
15.85%
$1,195,445
37.96%
9/30/13
S -
$ 429.349
S 429,349
0.00%
S 789,278
54.40%
NOTE M - TERMINATION BENEFITS
During the year ended September 30, 2011, the District accepted the early
retirement offer of a long term employee in exchange for severance pay in the gross
amount of $140,000 to reduce long-term operating costs. The severance package
IMMOKALEE FIRE CONTROL DISTRICT Page 45 of 74
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2016
NOTE M - TERMINATION BENEFITS, CONTINUED
was payable in equal annual installments over five (5) years beginning October 15,
2011.
During the year ended September 30, 2016, the District made the final payment of
$30,142 in termination benefits and related FICA payroll taxes under the terms of this
agreement.
NOTE N - SUBSEQUENT EVENTS
Subsequent to the year ended September 30, 2016, the District was informed by the
Seminole Tribe that they intended not to renew the District's contract to provide fire
and rescue service to the Tribe's reservation within the Distiict's boundaries. The
contract ended December 2, 2016 and will reduce District revenue for the year ended
September 30, 2017 by approximately,$]30,000.
NOTE O - DEFICIT UNRESTRICTED NET POSITION (NET ASSETS)
During the year ended September 30, 2016, the District's unrestricted net position (net
assets) balance was again a deficit and totaled $(157,053), due substantially to
recording the current year actuarially determined net pension liability of $2,991,948.
The District's total available fund balance at September 30, 2016 remains
approximately equal to six (6) months of actual expenditures. However, the Board has
assigned $1,340,382 of the $1,705,121 available fund balance for specific purposes.
During the year ended September 30, 2015, the District's unrestricted net position (net
assets) balance beacam a deficit and of $(58,458), due substantially to recording the
current year actuarially determined net pension liability of $1,226,192. The District's
total available fund balance at September 30, 2015 remains approximately equal to four
(4) months of actual expenditures. However, the Board assigned 51,057,074 of the
$1,472,132 available fund balance for specified purposes.
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
IMMOKALEE FIRE CONTROL DISTRICT Page 46 of 74
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND -
SUMMARY STATEMENT
Year Ended September 30, 2016
REVENUES
Ad Valorem taxes
Intergovernmental revenues:
Public safety grant - SAFER
State grant - SHSGP USAR
Firefighter supplemental
Inspection fees
Plan review fees
Miscellaneous:
Interest
Other
Reserves brought forward
TOTAL REVENUES
General Fund
Variance
Original Final Favorable
Budget Budeet Actual (Unfavorable)
S 2,507,080 S
2,544,665 S
2,552,794 S
8,129
1,135,707
916,472
956.483
40.011
-
-
3,769
3,769
-
-
2,520
2.520
65,000
44,250
41,727
(2,523)
7,500
8,000
7,418
(582)
7,000
9.500
9.774
274
157,797
244.331
247,119
2,788
1,420,640
1,468,078
129,174
(1,468,078)
5,300,724
5,235,296
3,821,604
(1,413,692)
EXPENDITURES
Current
Public safety
Personnel services 3.030,148 2929355 2,884,075 45,280
Operating expenditures 649,834 724,122 656,352 67,770
Capital outlay 34,000 36,500 79,334 (42,834)
Debt service
Principal reduction - - -
Interest and fiscal charges
-
-
-
Assigned - 90 da) reserve
733,437
733,437
733.437
Assigned- Fleet Reserves
125,000
150,000
150,000
Assigned- Accrued Liabilities
241,071
241.071
241,071
Assigned- Disaster Reserves
150,000
75,000
75,000
Assigned- 800 Radio Reserves
11,700
11,700
11,700
Assigned - GASB reserve
129,174
129,174
129,174
Reserves- unassigned
206,360
206,260
-
206,260
TOTAL EXPENDITURES
5,310,724
5,236,619
3,619,761
1,616,858
EXCESS OF REVENUES
OVER EXPENDITURES
(10,000)
(1,323)
201,843
203,166
OTHER FINANCING SOURCES (USES)
Operating transfers in
-
-
-
Operating transfers out
Proceeds from disposition of capital assets
10,000
1,323
(1,323)
TOTAL OTHER FINANCING SOURCES ('USES)
10,000
1,323
-
(1,323)
NET CHANGE IN FUND BALANCE S
- 5
201,843 S
201,843
FUND BALANCE - Beginning
1,503,278
FUND BALANCE - Ending
$
1,705,121
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT
Page 47 of 74
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND
DETAILED STATEMENT
Year Ended September 30, 2016
General Fund
Valiance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Ad Valorem taxes S
2,507,080 S
2,544,665 S
2,552,794
5 8;129
Intergovernmental revenues:
Public safety grants - SAFERIAFG
1,135,707
916,472
956,483
40,011
State grant - SHSGP USAR
3,769
3,769
Firefighter supplemental
-
-
2,520
2,5'_'0
Inspection fees
65,000
44,250
41.727
(2.523)
Plan review fees
7,500
8.000
7,418
(582)
Miscellaneous:
Interest income
7,000
9,500
9,774
274
Seminole contract
132,010
132.140
132,141
1
PILT farm workers village
6,650
6,650
6;150
(500)
Donations
100
10
10
-
User fees - rent
7,500
1 1,875
10,095
(1,780)
Other income
11,537
93,656
98.723
5,067
Subtotal
3,880,084
1767,218
3,821,604
54,386
Reserves brought fora,ard
1.420.640
1,468,078
(1,468,078)
TOTAL REVENUES
5.300,724
5,235,296
3,821,604
(1.413,692)
EXPENDITURES
PERSONNEL SERVICES
Salaries
Firefighters & administrative
1,620,149
1,592,500
1.662,870
(70,310)
EMT incentive pay
106,875
106,875
2,930
103.945
Overtime pay
92,845
92,845
92,331
514
Holiday pay
41,541
41,541
37,229
4,312
Separation pay
28,000
28,000
-
28,000
Payroll taxes
Social Security
137,261
127,650
136,395
(8,745)
Benefits
Retirement
384,383
327,030
394,512
(67.482)
Group insurance
510,020
510,020
443,874
66,146
Workers compensation
78.545
78,545
102,597
(24,052)
Phvsicals
26,180
20,000
11,337
8.663
Unemployment
4,349
4,349
_
4,349
SUBTOTAL -PERSONNEL SERVICES
3.030,148
2.929,355
2.884,075
45,280
OPERATING
Contracted Services
Bank service charges
180
180
5
175
Legal fees
20,900
18,000
27,441
(9,441)
Property appraiser fees
22,387
22,387
19,248
3,139
Tax collection fees
55,309
55,309
52.778
2,531
Contracted services
126,791
131.730
96,707
35,023
Generators
-
-
Pest control
-
-
-
Subtotal- Contracted services
225,567
227,606
196,179
31,427
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT
Page 48 of 74
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET
AND ACTUAL
- GENERAL FUND
DETAILED STATEMENT - CONTINUED
Year Ended September 30, 2016
General Fund
Variance
Original
Final
Favorable
Budget
Budget Actual
(Unfavorable)
OPERATING, CONTINUED
Operating
Education and training
62,700
33,200
44,231
(1,031)
Travel
8,070
8.070
5,267
2,803
Communications - telephone
14,442
14,442
13,294
1,148
Postage
750
750
1,173
(4231
Utilities
27,000
27,000
20,659
6,341
Explorer program
3,000
3.000
1,470
1,530
Liability insurance
45.804
45,804
57611
(11,817)
Subtotal - Operating
161,766
142,266
143,715
(1,449)
Maintenance
Vehicle
57,000
92,500
80,204
12.296
Equipment - firefighter and rescue
9,000
15.000
12,144
2.856
Office equipment
12,000
2.000
1,351
649
Computer
2,000
2,000
767
1,233
Communications - radio
2.250
2,000
407
1,593
Building
10,000
40,000
31,351
(1,351)
Bunker gear
3,000
2.500
509
1,991
Cascade system
3.000
3,000
3,000
Subtotal - Maintenance
98,250
159,000
136,733
22,267
Legal advertising
1.500
4,000
5,642
(1,642)
Supplies
Office
3,000
3,000
2,272
728
Shipping
500
750
-
750
Firefighter rescue
-
-
-
-
Station - janitorial
4,000
4,000
5,465
(1,465)
Training
5,000
-
1,317
(1,317)
Fuel and oil
50,000
45,000
40,710
4.290
Uniforms
21,000
33,000
33,106
(106)
Uniforms- explorer program
2,400
2,400
832
1.568
Employee
500
500
-
500
Physical fitness equipment
600
600
-
600
Inter -departmental
500
500
(100)
600
Computer software and training
6,000
6,000
2,038
3,962
Miscellaneous
6,001
1.000
1,649
(649)
Bunkei gear
41,000
58,000
57,368
632
Fire prevention
2,000
2,000
-
2,000
Communication (radio)
1,500
1.500
58
1,442
Communication (phone)
1,000
1,000
-
1,000
Station - non janitorial
1,500
1.500
1,729
(229)
Public education
3,000
3,000
-
3,000
Furniture
1,500
2,000
1,706
294
Computer equipment
7,500
5,000
2,243
2,757
Fire Inspection
1,000
1,000
-
1,000
Operating
-
5.000
2,728
2,272
Minor equipment
10,000
13,790
(3,790)
Tires & batteries
-
-
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
DETAILED STATEMENT - CONTINUED
Year Ended September 30, 2016
General Fund
Debt service
Principal retirement
Interest charges and fiscal
SUBTOTAL - DEBT SERVICE
Page 49 of 74
Original
Final
Favorable
Budget
Budget
Books and dues
3,250
4,500
Subtotal - Supplies
162,751
191,250
2,400
SUBTOTAL - OPERATING EXPENDITURES
649,834
724.122
Capital Outlay
75,000
Firefighter rescue equipment
22,000
22,000
Communication equipment
12,000
12,000
Building
-
129,174
Vehtcles
129,174
-
Bunker gear
206,260
-
Furniture - Office
To"rALEXPENDITURES
5.310,724
Station equipment
3.619,761
1,616,858
Computer equipment
2,500
SUBTOTAL- CAPITAL OUTLAY
34,000
36,500
Debt service
Principal retirement
Interest charges and fiscal
SUBTOTAL - DEBT SERVICE
Page 49 of 74
998
Variance
1,305
Favorable
Actual
(Unfavorable)
7,172
(2.672)
174,083
17,167
656,352
67,770
998
21,002
1,305
10,695
50,610
(50,610)
15,753
(15,753)
2,617
(2,617)
5.651
(5,651)
2,400
100
79,334
(42,834)
Assigned - 90 day OPS
733,437
733.437
731437
Assigned- Fleet Reserves
125,000
150,000
150,000
Assigned- Accrued Liabilities
241,071
241,071
241,071
Assigned- Disaster Reserves
150.000
75,000
75,000
Assigned- 800 Radio Reserves
11,700
11,700
11,700
Assigned - GASB Reserves
129,174
129,174
129,174
Reserves- Unassigned
206,360
206,260
-
206,260
To"rALEXPENDITURES
5.310,724
5,236,619
3.619,761
1,616,858
EXCESS OF REVENUES
OVER EXPENDITURES
(10,000)
(1,323)
201,843
203,166
OTHER FINANCING SOURCES (USES)
Operating transfers in
-
-
Operating transfers out
-
-
Proceeds from disposition of capital assets
10,000
1,323
(1,323)
TOTAL OTHER FINANCING SOURCES (USES)
10,000
1,323
(1,323)
NET CHANGE IN FUND BALANCE S
- S
-
201,843 5
201,843
FUND BALANCE - BEGINNING
1,503,278
FUND BALANCE - ENDING
S
1,705,121
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 50 of 74
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - IMPACT FEE FUND
SUMMARY STATEMENT
Year Ended September 30, 2016
Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes S
- S
- S
- S
-
Impact fees
750,000
992,400
399,019
(593,381)
Intergovernmental revenue - grants
-
-
-
-
Miscellaneous:
Interest
4,000
11,750
13,203
1,453
Other
-
-
-
Cash brought forward
2,282,826
2282,826
-
(2,282,826)
TOTAL REVENUES
3,036,826
3.286,976
412,222
(2,874,754)
EXPENDITURES
Current
Public safety
Personnel services
-
-
-
Operating expenditures
-
57,375
11.903
45,472
Capital outlay
2,515.594
706,217
400,319
305,898
Debt service
Principal reduction
-
-
-
-
Interest and fiscal charges
-
-
Contingency
521,232
2.523,384
-
2,5231384
TOTAL EXPENDITLRES
3,036.826
3,286,976
412,222
2,874,754
EXCESS OF REVENUES
OVER EXPENDITURES
-
-
-
-
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
TOTAL OTHER FINr1ArCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE S
S
FUND BALANCE - Beginning
FUND BALANCE - Ending
$
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2016
Federal Program or
CFDA/ Grantor's Award
Grantor Agency/Program Title Number Number Amount
FEDERAL AGENCY
U.S. Department of Homeland Security
TYPE A - MAJOR
Staffing of Adequate Fire and Emergency Response ENTW-2014-FH-00126
SAFER - Hiring Grant 97.083 2015 -F4 -C211 -P4310000-4 10 1-D $ 2,012,052
Staffing of Adequate Fire and Emergency Response EMW-2013-FF-00593
SAFER - Recruitment & Retention Grant 97.083 2014 -M3 -C21 I -P4310000-4 10 1-D 457,942
2,469,994
TYPE B - NON MAJOR
Assistance to Firefighters Grant Program 97.044 EMW-2015-FO-06716
DHS -I2 -GPD -044-000-98 229,099
TOTAL FEDERAL FINANCIAL AWARDS $ 2,699,093
(I) Includes receivable of $101,142
(2) Does not receivable of $5,359
Page 51 of 74
Receipts/ Disbursements/ Passthrough
Revenue Expenditures to Subrecipients
$ 865,606 (l) $ 865,606 $
90,877 (2) 90,877
956,483 956,483
$ 956,483 $ 956,483 $
IlVIMOKALEE FIRE CONTROL DISTRICT Page 52 of 74
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended September 30, 2016
NOTE A - BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards and State Financial Assistance has
been prepared on the accrual basis of accounting in conformity with accounting
principles generally accepted in the United States of America and is in accordance
with the provisions of the OMB Uniform Guidance.
Expenditures reported on the Schedule of Expenditures of Federal Awards include
cash disbursements, whether capitalized or expensed, during the fiscal year as well as
Grant related amounts recorded as payable at year end. Revenues reported on the
Schedule of Expenditures of Federal Awards include cash receipts, whether
recognized or deferred, as well as grant receivables recorded at year end.
NOTE B - INDIRECT COSTS
The District did not routinely allocate indirect costs to Federal Awards. Costs
charged to such programs were direct costs_
The District has elected not to use the 10% de minimus indirect cost rate allowed
under the Uniform Guidance.
INIMOKALEE FIRE CONTROL DISTRICT Page 53 of 74
SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY - FLORIDA RETIREMENT SYSTEM (FRS) PENSION
PLAN (1)
District's proportion of the net pension liability
District's proportionate share of the net pension liability $
District's covered -employee payroll $
District's proportionate share of the net pension liability
as a percentage of its covered -employee payroll
Plan fiduciary net position as a percentage of the
total pension liability
2016 2015 2014
0.00946372617-v 0.006183105% 0.006001750%
2,389,598 $ 798,631 $ 366,195
1,735,883 $ 1,298,578 $ 1,199,275
137.65% 61.50% 30.53%
84.88% 9100% 96.0910
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN (1)
Contractually required contribution
Contributions in relation to the contractually
required contribution
Contribution deficiency (excess)
District's covered -employee payroll
Contributions as a percentage of covered -employee
payroll
2016 2015 2014
$ 365,318 $ 236,175 $ 209,820
3651318 236.175 209,820
$ 1,735,883 $ 1,298,578 $ 1,199,275
21.04% 18.19% 17.50%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However, until a full 10 -year trend is compiled,
governments should present information for only those years for which information is available.
IMMOKALEE FIRE CONTROL DISTRICT Page 54 of 74
SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY - HEALTH INSURANCE SUBSIDY (HIS) PENSION
PLAN (1)
District's proportion of the net pension liability
District's proportionate share of the net pension liability $
District's covered -employee payroll $
District's proportionate share of the net pension liability
as a percentage of its covered -employee payroll
Plan fiduciary net position as a percentage of the
total pension liability
2016 2015 2014
0.005168356% 0.004192421% 0.004035317%
602,350 $ 427,561 $ 377,312
1.735,883 $ 1,298,578 S 1,199,275
34.70% 32.93% 31.46%
0.97% 0.50C/'c 0.99%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1)
2016 2015 2014
Contractually required contribution $ 29,194 $ 19,237 S 14,244
Contributions in relation to the contractually
required contribution 29.194 19,237 14,244
Contribution deficiency (excess) $ - $ - $ -
District's covered -employee payroll $ 1,735,883 $ 1,298,578 S 1,199,275
Contributions as a percentage of covered -employee
payroll 1.70% 1.48% 1.19%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However, until a full 10 -year trend is compiled,
governments should present information for only those years for which information is available.
IMMOKALEE FIRE CONTROL DISTRICT Page 55 of 74
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2016
Changes of Assumptions
Actuarial assumptions for both cost-sharing defined benefit plans are reviewed
annually by the Florida Retirement System Actuarial Assumptions Conference. The
FRS Pension Plan has a valuation performed annually. The HIS Program has a
valuation performed biennially that is updated for GASB reporting in the year a
valuation is not performed. The most recent experience study for the FRS Pension
Plan was completed in 2014 for the period July 1, 2008, through June 30, 2013.
Because the HIS Program is funded on a pay-as-you-go basis, no experience study
has been completed for that program. The actuarial assumptions that determined the
total pension liability for the HIS Program were based on certain results of the most
recent experience study for the FRS Pension Plan.
The total pension liability for each cost-sharing defined benefit plan was determined
using the individual entry age actuarial cost method. Inflation increases for both plans
is assumed at 2.60%. Payroll growth, including inflation, for both plans is assumed at
3.25%. Both the discount rate and the long-term expected rate of return used for
FRS Pension Plan investments was reduced from 7.65% tos 7.60%. The plan's
fiduciary net position was projected to be available to make all projected future
benefit payments of current active and inactive employees. Therefore, the discount
rate for calculating the total pension liability is equal to the long-term expected rate of
return.
Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond
rate was reduced from 3.80% to 2.85% and was used to determine the total pension
liability for the program (Bond Buyer General Obligation 20 -Bond Municipal Bond
Index). Mortality assumptions for both plans were based on the Generational
RP -2000 with Projection Scale BB tables.
Florida Retirement System Pension Plan
There were changes in actuarial assumptions. As of June 30, 2016, the inflation rate
assumption retrained at 2.6 percent, the real payroll growth assumption was 0.65
percent, and the overall payroll growth rate assumption remained at 3.25 percent.
The long-term expected rate of return was reduced from 7.65 percent to 7.60
percent.
Health Insurance Subsidy Pension Plan
The municipal rate used to determine total pension liability decreased from 3.80
percent to 2.85 percent.
IMMOKALEE FIRE CONTROL DISTRICT Page 56 of 74
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2016
Pension Expense and Deferred Outflows/Inflows of Resources
In accordance with GASB 68, paragraphs 54 and 71, changes in the net pension
liability are recognized in pension expense in the current measurement period, except
as indicated below. For each of the following, a portion is recognized in pension
expense in the current reporting period, and the balance is amortized as deferred
outflows or deferred inflows of resources using a systematic and rational method over
a closed period, as defined below:
• Differences between expected and actual experience with regard to economic
and demographic factors - amortized over the average expected remaining
service life of all employees that are provided with pensions through the
pension plan (active and inactive employees)
• Changes of assumptions or other inputs - amortized over the average
expected remaining service life of all employees that are provided with
pensions through the pension plan (active and inactive employees)
• Changes in proportion and differences between contributions and
proportionate share of contributions - amortized over the average expected
remaining service life of all employees that are provided with pensions through
the pension plan (active and inactive employees)
• Differences between expected and actual earnings on pension plan investments
- amortized over five years
Employer contributions to the pension plans from employers are not included in
collective pension expense. However, employee contributions are used to reduce
pension expense.
The average expected remaining service life of all employees provided with pensions
through the pension plans at June 30, 2016, was increased from 6.3 years to 6.4
years for FRS and 7.2 years for HIS.
ADDITIONAL REPORTS
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
Tax Division
Page 57 of 74
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF BASIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee, Florida 34142
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards; issued by the Comptroller General of the United States of America, the basic financial
statements of the governmental activities and each major fund of Immokalee Fire Control District
(the "District") as of and for the year ended September 30, 2016 and the related notes to the
financial statements which collectively comprise the District's basic financial statements as listed in
the table of contents and have issued our report thereon June 23, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, eve considered the District's
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control. Accordingly, we do not express an opinion on the effectiveness of the District's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent
or detect and correct misstatements on a timely basis.
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 58 of 74
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 Immokalee Fire Control
District's basic financial statements will not be prevented or detected and corrected on a timely
basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and, therefore, material weaknesses or significant
deficiencies may exist that were not identified. We did identify certain deficiencies in internal
control, described in the accompanying Report to Management and identified as item 2014-05,
that we consider to be material weaknesses, as defined previously. In addition, we noted certain
other items that we reported in our Report to Management dated June 23, 2017.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Immokalee Fire Control District's basic
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 basic 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. Such matters are noted in our Report to Management dated June 23, 2017.
The District's Response to Findings
The District's response to the findings identified in our audit is described in the accompanying
Management's Response to Independent Auditor's Report to Management. The District'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 results of that testing, and not to provide an opinion on the effectiveness of the
District's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly, this comrpunication is not suitable for any other purpose.
Auaov 4
J ,
TUSCAN & COMPANY, P.
Fort Myers, Florida
June 23, 2017
TUSCAN
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Independent Auditor's Report on Compliance for Each Maior
Program and on Internal Control Over Compliance Required by
the Uniform Guidance
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee, Florida 34142
Private Companies Practice Section
Page j7xo�`I/=Fn
Report on Compliance for Each Major Federal Program
We have audited Immokalee Fire Control District's compliance with the types of compliance
requirements described in the OMB Compliance Supplement , as applicable, that could have a
direct and material effect on each of Immokalee Fire Control District's major federal programs for
the year ended September 30, 2016. Immokalee Fire Control District's major federal programs
are identified in the summary of auditor's 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, and the
terms and conditions of its federal awards.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Immokalee Fire Control
District's major federal programs 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 of America; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part
200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards" ("Uniform Guidance"). Those standards and the Uniform Guidance 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 occurred. An audit includes examining, on a test basis, evidence about
Immokalee Fire Control District's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 60 of 74
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of
Immokalee Fire Control District's compliance with those requirements.
Opinion on Each Major Federal Program
In our opinion, Immokalee Fire Control District 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 for the year ended September 30, 2016.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required
to be reported in accordance with the Uniform Guidance and which are described in the
accompanying schedule of findings and questioned costs as item 2016-06. Our opinion on each
major federal program is not modified with respect to these matters.
Report on Internal Control Over Compliance
Management of Immokalee Fire Control District 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 Immokalee Fire
Control District's internal control over compliance with the types of requirements that could have a
direct and material effect on each major federal program 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 to test and report on internal control over compliance in
accordance with the Uniform Guidance, 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 Immokalee Fire Control District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct noncompliance with a type of
compliance requirement of a federal program 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 will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Page 61 of 74
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control
over compliance that might be deficiencies, material weaknesses or significant deficiencies and
therefore, material weaknesses or significant deficiencies may exist that were not identified. We
indentified certain deficiencies in internal control over compliance as described in the
accompanying schedule of findings and questioned costs as item 2016-06, that we consider to be
a material weakness.
The District's response to the internal control over compliance findings identified in our audit is
described in the accompanying schedule of findings and questioned costs. The District's
response was not subjected to the auditing procedures applied in the audit of compliance and,
accordingly, we express no opinion on the response.
Purpose of the Report
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 results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
1AI&;4,,, 4 e�Lp I I
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June 23, 2017
IMMOKALEE FIRE CONTROL DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED
COSTS - FEDERAL AWARDS
Year ended September 30, 2016
Section I — Summary of Auditor's Results
Financial Statements
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Control deficiency(ies) identified? Yes
Significant deficiency(ies) identified? Yes
Material weakness(es) identified? X Yes
Noncompliance material to financial
statements noted? Yes
Federal Awards
Internal control over major programs:
Control deficiency(ies) identified? X Yes
Significant deficiency(ies) identified? Yes
Material weakness(es) identified? X Yes
Type of auditors report issued on compliance for
major programs Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR,
Section 200.516(a)? X Yes
Identification of major programs (Type A):
CFDA
Number(s) Name of Federal Program or Cluster
U.S. Department of Homeland Security
97.083 Staffing of Adequate Fire and Emergency Response
SAFER - Hiring Grant
97.083 Staffing of Adequate Fire and Emergency Response
SAFER - Recruitment and Retention Grant
Dollar threshold used to distinguish between
Type A and Type B programs Threshold used was $750,000.
Page 62 of 74
X No
X No
None reported
X No
x
No
No
None reported
No
Auditee qualified as low-risk auditee? Yes X No
INIMOKALEE FIRE CONTROL DISTRICT Page 63 of 74
SCHEDULE OF FINDINGS AND QUESTIONED
COSTS - FEDERAL AWARDS
Year ended September 30, 2016
Listing of Subrecipients and matching amounts passed -through:
None - not applicable
Section II- Financial Statement Findings
There were deficiencies, material weaknesses, and instances of noncompliance related to
the financial statements as reported in our Report to Management dated June 23, 2017.
Section III- Federal Award Findings and Questioned Costs
There were audit findings related to Federal Awards required to be reported by 2 CFR,
Section 200.516(a) as reported below:
Questioned
U.S. Department of Homeland Security Costs
Staffing of Adequate Fire and Emergency Response (SAFER) - CFDA No.
97.083 Grant No. 2015 -F4 -C211 -P1410000 -4101-D,
EMW-2014-FH-00126
2016-06 Condition: The District has submitted and received reimbursement
for pay and benefits that did not correspond to actual amounts paid.
Criteria: Requested reimbursement amounts should correspond to
payroll and related benefits allowable by the grant and paid during the
reimbursement period (B - allowable costs/cost principles).
Cause: The reimbursement requests for all quarters were prepared
at the beginning of the grant period for expected hours and rates and
did not necessarily agree to actual amounts paid during the
reimbursement period.
Effect: The reimbursement requests did not reflect actual wages and
benefits provided during the time period. The net effect was that
reimbursements were understated. We considered this
noncompliance a finding and material weakness deficiency in internal
control over grant related reporting.
Context: All reimbursement requests were understated and therefi $0
there were no questioned costs. Corrections were resubmitted
resulting in $33,832 additional funds requested.
Page 64 of 74
Recommendation: The reimbursement requests should be prepared
based on the actual wages and benefits paid to the respective
firefighters allowed under the terms of the grant.
Views of Responsible Officials and Planned Corrective Actions:
The District is in agreement and has been in contact with the grantor
agency. Based on discussions with the grantor agency, the District has
will submit revised reimbursement requests.
Total - U.S. Department of Homeland Security $0
Total
Management Response: We are committted to correcting this issue
this year.
$0
Section IV- Status of Federal Prior Year Findings
There were no prior year findings as the audit for the year ended September 30, 2016 is the
initial audit for the District required by Uniform Guidance.
TUSCAN
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
Tax Division
Page 65 of 74
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee, Florida 34142
We have examined Immokalee Fire Control District's compliance with Section 218.415, Florida
Statutes, regarding the investment of public funds during the year ended September 30, 2016.
Management is responsible for Immokalee Fire Control District's compliance with those
requirements. Our responsibility is to express an opinion on Immokalee Fire Control District's
compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a test
basis, evidence about Immokalee Fire Control District's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our examination provides a reasonable basis for our opinion. Our examination does not
provide a legal determination on Immokalee Fire Control District's compliance with specified
requirements.
In our opinion, Immokalee Fire Control District complied, in all material respects, with the
aforementioned requirements for the year ended September 30, 2016.
This report is intended solely for the information and use of Immokalee Fire Control District and
the Auditor General, State of Florida, and is not intended to be and should not be used by anyone
other than these specified parties.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June 23, 2017
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax. (239) 333-2097
TUSCAN
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
Tax Division
Page 66 of 74
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
ImmokaIee, Florida 34142
We have audited the accompanying basic financial statements of Immokalee Fire Control District
(the "District") as of and for the year ended September 30, 2016 and have issued our report
thereon dated June 23, 2017.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America and Chapter
10.550, Rules of the (Florida) .Auditor General. We have issued our Independent Auditor's
Report on Internal Control over Financial Reporting and Compliance and Other Matters based on
an audit of the financial statements performed in accordance with Government Auditing Standards
and Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated
June 23, 2017, should be considered in conjunction with this report to management.
Additionally, our audit was conducted in accordance with Chapter 10.550. Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter includes the following information, which is not included in the aforementioned
auditor's reports:
Section I0.554(1)(i)l., 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. Prior year
comments that have not been resolved are repeated and updated below.
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. Such
recommendations were noted to improve financial management.
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 67 of 74
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 an
effect on the financial statements that is less than material but more than inconsequential.
In connection with our audit, we did have such comments as noted below.
Section 10.554(1)(i)4., Rule of the Auditor General, requires that the name or official
title and legal authority for the primary government and each component unit of the
reporting entity be disclosed in the management letter, unless disclosed in the notes to
the financial statements. The District discloses this information in the notes to the
financial statements.
Section 10.554(1)(i)5.a,, Rules of the Auditor General, requires a statement be
included as to whether or not the local government entity has met one or more of the
conditions described in Section 218.503(1), Florida Statutes, and identification of the
specific condition(s) met. In connection with our audit, we determined that the District
did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the District for the fiscal year ended September
30, 2016, filed with the Florida Department of Financial Services pursuant to Section
218.32(1)(a) Florida Statutes, is in agreement with the annual financial audit report for
the fiscal year ended September 30, 2016. In connection with our audit, we
determined that these two reports were in agreement.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7), Rules of the Auditor General, we
have applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by same.
Pursuant to Section 10.554(1)(i)5.d., Rules of the Auditor General, requires a
statement indicating a failure, if any, of a component unit Special District to provide
financial information necessary to a proper reporting of the component unit within the
audited financial statements of this District (F.S. Section 218.39(3)(b)). There are no
known component special districts required to report within these financial statements.
Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our
audit to determine the District's compliance with the provisions of Section 218.415,
Florida Statutes, regarding the investment of public funds. In connection with our audit,
we determined that the District complied with Section 218.415, Florida Statutes as
reported in our Independent Accountant's Report on Compliance with Section
218.415, Florida Statutes dated June 23, 2017, included herein.
Page 68 of 74
PRIOR YEAR COMMENTS:
Prior year comments that have been resolved have been deleted. Those remaining
prior year comments each have a current year addendum which reflects the current
status of the comment.
2014-01 Compensated Absences Should be Monitored for all Employees (as revised)
During the audit, we noted the Chief had a payout of vacation and sick time
during this fiscal year, which was allowed under the Chiefs contract. However, the
District had not been tracking the Chiefs balance of sick and vacation hours and no
record of time off taken was available to us. Therefore, we were unable to test the
Chiefs accrued compensated absences during fieldwork.
We recommend the District track all employees' balances of sick and vacation hours
throughout the year to ensure that compensated absences are complete and accurate.
Additionally, the Chiefs vacation and sick accrual and time taken should be Board
approved.
Current Year Addendum: We continue to recommend the above. However, we
noted the District did implement a new timekeeping software. This issue, also, is
specifically related to theprior Chiefs contract being vague as to payment for time off
versus the recording of actual time taken off.
2014-02 Accounts Pavable Function Should be Utilized in the Impact Fee Fund
During the audit, it was noted that the District was not utilizing the accounts payable
function in the accounting software for the impact fee fund. As a result, the District is
not tracking accounts payable for items purchased with impact fees which resulted in
proposed audit adjustments.
We recommend that the District utilize the accounts payable function in their accounting
software to track and monitor accounts payable disbursements for the impact fee fund
and ensure proper recording of all liabilities.
Current Year Addendum: We continue to recommend the above. However, the
District has purchased accounting software (QuickBooks) that is being used in fiscal
year 2017, that will likely eliminate this issue.
2014-03 Maintain a Check Register for the Impact Fee Operating Account
During the audit, it was noted that the District is not maintaining a check register for
disbursements processed utilizing impact fee funds. The District is currently hand
writing impact fee checks and posting the checks with a journal entry.
Page 69 of 74
2014-03 Maintain a Check Register for the Impact Fee Operating Account (continued)
We.recommend that the District maintain a check register for all disbursements and
perform all disbursements via the accounting software.
Current Year Addendum: We continue to recommend the above. However, the
District has purchased accounting software (QuickBooks) that is being used in fiscal
year 2017, that will likely eliminate this issue.
2014-04 Increase Sunnort for Justification of Use of Impact Fees (as revised
During the audit, it was noted that the District purchased many items
below the capitalization threshold in which they utilized impact fee funds and posted the
purchases to the capital outlay account line item. The items should be separately
recorded in a non -capital outlay account or grouped if part of a larger purchase like a
truck. In addition, supporting documentation for capital assets purchased with impact
fees should include support that justifies the use of impact fees.
We recommend the District's attorney render a written opinion on the intended
purchase using impact fees prior to purchase. The opinion should be filed with the
item's invoice.
Current Year Addendum: We continue to recommend the above. We, further,
recommend that the District obtain a legal opinion specifically addressing the intended
use of impact fees by specific intended asset purchase prior to purchase rather than on
a general purchase basis. The Board should not approve an asset purchase using
Impact Fees without a written legal opinion in hand related to the specific asset
purchase.
2014-05 Material Weakness: Reconciliation of Fixed Asset and Accounting Software
Should be Performed Monthly (as revised)
Condition: There is no procedure for reconciling the detailed fixed asset schedules to
the general ledger or capital outlay disbursements on a regular basis.
Questioned Costs: None
Criteria: The activity included in the capital outlay accounts on the general ledger
should agree to the additions to the fixed asset schedule for the same time period.
Context: Several adjustments were proposed during the audit to both the fixed asset
schedule and the general ledger to reflect the proper balance of fixed assets and capital
outlay. This was primarily due to the following reasons:
Page 70 of 74
2014-05 Material Weakness: Reconciliation of Fixed Asset and Accounting Software
Should be Performed Monthly (as revised) (continued)
• Recording items in capital outlay that were below the capitalization policy amount.
• Not recording items in the fixed asset schedule that were expensed through capital
outlay.
• Recording components of an invoice in the fixed asset schedule when the entire
invoice amount was expensed in capital outlay.
Cause: Lack of reconciliation and understanding of the relationship between the items
recorded in capital outlay and the recording as a fixed asset.
Effect: The lack of proper reconciliation of fixed assets caused the audit process to be
extended and more time consuming and does not provide the required level of control
for the District or accurate reporting in the District's books and records.
Recommendation: We recommend that the general ledger fixed asset and capital
outlay accounts be reconciled to the general ledger on a monthly basis.
Current Year Addendum: Some improvements were noted. We noted during
the audit, the District deleted assets in the current year that were approved deletions in
the prior year. However, we continue to recommend the fixed asset listing be
reconciled monthly to the general ledger and capital outlay expense account and
between the General Fund and Impact Fee Fund. Great effort was required this year
during the audit to reconcile these accounts.
2015-01 Additional Oversight Should be Provided by the Board of Commissioners
Due to the District's size, the administrative staff of the District is limited and therefore
does not provide for adequate separation of duties. Based on this and the comments
noted above, it is our recommendation that the Commissioners perform additional
oversight functions to ensure the District is maintaining proper internal controls and
financial reporting.
Oversight and monitoring functions should include the following:
• Review monthly bank reconciliations to ensure they are being performed correctly
and in a timely manner.
• Review budget vs, actual statement on a monthly basis and investigate any unusual
variances.
• Review monthly internal financial reports for any unusual or unexpected transactions
or balances.
• Review the policies and procedures with respect to benefits of key employees and
officers and ensure adherence to written policies as it specifically related to
compensation and paid time off.
Page 71 of 74
2015-01 Additional Oversight Should be Provided by the Board of Commissioners (continued)
• Review key internal controls with the management team and understand how these
controls will be tested, maintained and monitored during the year.
We recommend the Board require the Staff provide, as part of the monthly board
packet, the following:
• Month and year to date budget vs. actual statement by budgeted line item for each
fund
• Balance sheet by fund
• Monthly check register
• Copies of bank reconciliation by account
• Use of impact fee schedule
The Board should approve the package and note such approval in the official Board
Minutes.
CURRENT YEAR COMMENTS:
2016-01 Fixed Assets Must Have Permanent Tag Numbers
During the audit, we noted eight (8) out of twenty-five (25) fixed assets selected for
testing did not have permanent tag (markings) numbers. Per Florida Administrative
Code 691-73.004, each fixed asset shall be permanently marked with the identification
number assigned to that fixed asset to establish its identity and ownership by the
,governmental unit holding title to the fixed asset.
We recommend all fixed assets be properly marked.
2016-02 Audited Budget Carryforward Not Included in Budget
During the audit, we noted that the amended budget did not include the prior year's
audited fund balance carryover per Florida Statute 189.016(3).
We recommend the District include in its annual budget the estimated carryforward
from prior year. Once the audit is completed for the prior year, the budget of the
current fiscal year should be officially amended to update the estimated carryforward to
the audited balance.
2016-03 Fund Balance Should Be Assigned for Specific Purposes
During the audit, we noted the District did not specifically assign its fund balance for
specific purposes. All assignment of fund balance should be correlated with the
District's five year plan and include amounts for items such as emergencies, capital
replacements, and operations (approximately 3 months). For example, we noted
Page 72 of 74
2016-03 Fund Balance Should Be AssiZned for Specific Purposes (continued)
approved line items assigned for "accrued liabilities and disaster" which are not specific.
Specifically, we recommend the District approve an assignment of 30 to 45 days for an
emergency reserve at a minimum.
2016-04 Documentation in Personnel Files Should Be Improved
During our testing of payroll, we noted that three (3) of the twenty-five (25) employees
tested did not have completed I -9's documented in the respective personnel files.
We recommend that completed I -9's be maintained in the respective personnel filed or
other file for all District employees.
2016-05 District Accountin! and Reporting Responsibility Should Be Determined and
Assigned
We have, in the past, recommended that the District increase accounting resources. In
response to that comment the District contracted a third party CPA to assist and hired
a part-time in-house assistant. For various reasons this took time to implement.
Simultaneously, the District brought payroll in-house and decided to convert to
QuickBooks. As such, effort and resources had to be focused on the payroll and
QuickBooks conversion and current FY 2017 accounting activity. Reconciliation and
clean-up for FY 2016 was delayed until the audit process began. As such, the
contracted CPA, in-house personnel, employees from North Collier Fire Control and
Rescue District along with the audit staff worked through the FY 2016 audit process
which took an extended effort.
The Board did hire a part time administrative assistant to help with accounting and
administrative functions. The District, however, does not have adequate resources
in-house to perform the complete accounting function. It should be noted since the new
person is related to other District personnel, it inherently can cause independence issues
and put the assistant in difficult situations. We recommend the Board consider this issue
when assigning duties as part of resolving the District accounting issues.
The accounting function is extremely important to ensure public funds are properly
expended and, ultimately, it is the Board's responsibility.
We recommend the future Chief coordinate with the Board and ensure proper and
timely accounting so that the Board can make timely and informed financial decisions.
We recommend that Board discuss and specifically determine who they want to be in
charge of the District accounting function to ensure timely reporting. The Board then
should communicate that direction and follow up monthly.
Page 73 of 74
2016-06 Single Audit Findings
See the Schedule of Findings and Questioned costs.
2016-07 Consideration Should be Given to Specific Details in Anv Future Chief's Contract
We reported in the past and continue to note that the previous Chiefs contract did not
clearly state how paid time off was earned, accrued and paid. Further, it was not clear
what circumstances constituted time off. The combination of these two issues made it
vague as to the amount of paid time off was properly due the Chief.
We recommend any future contract clearly describe how paid time off was to be earned,
accrued, used and paid.
2016-08 Resaonsibility for Administering the Single Audit Should be Determined and
Assigned
The District is receiving and must administer the SAFER and other. grants. During the
current audit, we determined the District was improperly filing the SAFER
reimbursement requests. North Collier Fire Control and Rescue District volunteered to
correct the District reporting.
The Board should designate a specific individual or position to administer the grant and
related reporting. Additionally, reimbursement requests should be reviewed by
responsible staff or Board member to ensure accuracy. We recommend the District
immediately take action on this item.
It should be noted this comment is related to the Finding 2016-06.
2016-09 The District's Construction in Progress (CIP) Account Should be Reviewed
During the audit, we noted the District expended impact fees for design of a new
station. We were told the project has been put on hold and possibly scrapped.
As such, the Staff and Board should analyze the recorded costs and determine any
future value. Those costs determined to be of no future value should be submitted to
the Board for formal action. The Board should formally vote to write off those costs.
Page 74 of 74
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners, management, the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
June 23, 2017
EXHIBIT
1
¢t� - Immokalee Fire Control District
502 New Market Road East, Immokalee, FL. 34142
Michael J. Choate, Interim Fire Chief
June 26, 2017
Commissioners, Tuscan & Company, et al.;
The following is the response drafted by this administration to the accountant's report on
compliance and Auditor's report to management from the audit performed for the period ending
September 30, 2016. With the recent change in administrations, frankly comes an undue burden
to rectify these problem areas. Please note that considerable considerations have been taken here.
We will work tirelessly to rectify these issues and bring our fire district back into compliance.
2014-01 Compensated Absences Should be Monitored for all Employees
We have purchased and put into place a time keeping software called "Plan -it." All
employees including the Chief will have their time tracked in this new software.
2014-02 Accounts Pavable Function Should be Utilized in the Impact Fee Fund
We've purchased software named "Quick books," now all transactions for the Impact
Fee fund will be tracked and all checks will cut through the same Quick Books
software.
2014-03 Maintain a Check Register for the Impact Fee Operating Account
In prior years this was tracked manually by staff. The purchase of Quick Books will
allow us to maintain a check register in an electronic version with separation of duties
performed for all Impact Fee Expenditures.
2014-04 Increase SUADort for Justification of Use of Impact Fees
Suggest we obtain a letter of justification from an attorney for all purchases of Impact
Fees. Further, suggest that all capital expenditures be purchased out of general revenue
initially. Once receipt of justification letter, funds be transferred from Impact Fees
back into the general fund for reimbursement.
2014-05 Material Weakness; Reconciliation of Fixed Assets and AccountineSSoftware
Should be Performed Monthly
This administration will continue to apply great effort to resolve all monthly
reconciliations. We will ensure staff reconciles the first of each month for the prior
month.
2015-01 Additional Oversight Should be Provided by the Board of Commissioners
All recommended items per auditor's request will be placed in Commissioners packets
for review 7 days prior to the public meeting each month.
Administration (239) 657-2111 Operations (239) 657-8587 Fire Prevention (239) 657-2700
Fax (239) 657-9489
2016-01 Fixed Assets Must Have Permanent Stickers
Currently we have an employee contracted for three days a week that performs multiple
task including fixed asset inventory. All fixed assets will be inventoried to ensure that
they are properly marked and we will work together as a team moving forward to
comply with the Florida Administrative code.
2016-02 Audited Budget Carried Forward Not Included in Budget
All budget responsibilities are under new administration. Current administration will
ensure all budget amendments will include the carry -forward line item as part of the
total amendment.
2016-03 Fund Balance Should be Assigned for all Purposes
All budget responsibilities are under new administration. Current administration will
ensure that appropriate fund balances will be assicyned appropriately and for specific
purposes.
2016-04 Documentation and Personnel Files Should be Improved
All personnel files will be promptly inventoried to ensure compliance.
2016-05 District Accountine and Reaortina Resnonsibilities Should be Determined and
Assigned
This administration is currently working with the administration with North Collier Fire
Control Rescue District on an inter -local agreement. This agreement will include all
accounting functions. Further, this administration will work with the Board to ensure
proper and timely information is presented for financial decisions.
2016-06 Single Audit Findings
The District will ensure all single audit reporting is timely and accurate. See Pages 63
and 64 of the audit report.
_2016-07 Consideration Should be Given to Specific Details in Any Future Chiefs Contract
Speaking for this administrator, the next Chief contract has been drafted and is very
clear on how time is earned, accrued, carried and paid.
2016-08 Responsibility for Administrating the Single Audit Should be Determined and
Assil4ned
This administration is currently working -,vith the administration with North Collier Fire
Control Rescue District on an inter -local agreement. This agreement will include all
grant management functions. Until that takes effect, the grant responsibilities are under
new administration. Current administration will ensure compliance with grant
management and reimbursements.
Page 2 of 3
2016-09 The Districts' Construction in Progress (CIP) Account Should be Reviewed
The District is under new administration, current administration is in the process of re -
prioritizing all CIP projects. Funds previously spent may be able to remain ear -marked
for projects initially approved for.
Should you have any further questions or concerns on any of the topics discussed, please feel
free to contact me at any time.
Respectfully,
Michael J. Choate
Interim Fire Chief
Office: (239) 657-2111
Fax: (239) 657-9489
Cell: (239) 986-7839
Web: www.irrunfire.com
Page 3 of 3
'w Immokalee Fire Control District
502 New Market Road East, Immokalee, FL. 34142
Michael J. Choate, Fire Chief
IMMOKALEE FIRE CONTROL DISTRICT
BOARD OF FIRE COMMISSIONERS
2018 REGULAR MEETING SCHEDULE
The Board of Fire Commissioners of the Immokalee Fire Control District
will hold Regular Meetings at 6:00 p.m. on the following dates:
January 18, 2018
February 15, 2018
March 15, 2018
April 19, 2018
May 17, 2018
June 21, 2018
July 19, 20 j 8
August 16, 2018
September 20, 2018
October 18, 2018
November 15, 2018
December 20, 2018
Regular Meeting Locations:
IFCD Headquarters (Fire Station 30)
502 New Market Rd. E.
Immokalee, Florida 34142
January, April, July and October Meeting location:
Ave Maria Master Association Office
5076 Annunciation Circle, Suite 103
Ave Maria, Florida 34142
Administration (239) 657-2111 Operations (239) 657-8587 Fire Prevention (239) 657-2700
Fax (239) 657-9489
Immokalee
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