IFCD District Audit FY End 09/30/2017 \00KAtee,
F I Immokalee Fire Control District
R ' 502 New Market Road East, Immokalee, FL. 34142
E E
Ave Maria Michael J. Choate, Fire Chief
May 17, 2018
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 a copy of the District's audit for the fiscal year ended 9-30-17.
Please contact me if you have any questions or would like to receive an electronic copy
of the audit.
Very truly yours,
MICHAEL CHOATE
Fire Chief/District Manager
Enclosures
Administration(239)657-2111 Operations(239)657-8587 Fire Prevention(239)597-9227
Fax(239)657-9489
IMMOKALEE FIRE CONTROL DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH ADDITIONAL REPORTS
YEAR ENDED
SEPTEMBER 30,2017
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT 1-3
MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-vi
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:
Statement of Net Position 4
Statement of Activities 5
FUND FINANCIAL STATEMENTS:
Governmental Funds:
Balance Sheet 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
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
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-
Impact Fee Fund-Summary Statement 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 62-63
Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes 64
Independent Auditor's Report to Management 65-69
Management's Response to Independent Auditor's Report to Management Exhibit
TUSCANAffiliations
Florida institute of Certified Public Accountants
&Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee,Florida 34142
Report on the Financial Statements
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 30,2017,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 30,2017. The District is required to record its proportionate share of the FRS and HIS liability in
the District's government-wide financial statements as of September 30,2017,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 Districts 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 Districts internal control. Accordingly,we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management,as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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 30,2017,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 Information
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis on pages i-vi,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 Supplementary information
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 MD&A
-budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic
financial statements.The required supplementary information other than MD&A-budgetary comparison information is
the responsibility of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements.Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves,and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion,the required supplementary information other than MD&A-
budgetary comparison information is fairly stated,in all material respects,in relation to the basic financial statements as a
whole.
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 30,2017 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 30,2017 is fairly stated,in all material respects,
in relation to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming 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.
Other Reporting Required by Section 218.415,Florida Statutes
In accordance with Section 218.415,Florida Statutes,we have also issued a report dated April 17,2018 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 audit performed 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 Standards,we have also issued our report dated April 17,2018 on our
consideration of the District's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws,regulations,contract and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not
to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering lmmokalee Fire Control Districts
internal control over financial reporting and compliance.
74.41,0.0 If$4,g1 , "
TUSCAN&COMPANY,P.A.
Fort Myers,Florida
April 17,2018
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2017
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 net financial position decreased during the fiscal year ended
September 30, 2017 by $561,328 substantially due to an increase in pension liability of
$ 506,368. The District's revenue was up$214,248 or 5% while expenses increased
$825,561 or 20% as compared to the fiscal year ended September 30, 2016. The
District is debt free.
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.
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 in the government-wide financial
statements. It also requires additional disclosure in the notes related to the financial
statements.
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, 2017
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
at September 30:
2016 2017
Assets:
Cash and Other Current Assets $ 4,981,323 $6,087,306
Capital Assets, Net of Depreciation 2,131,017 2,081,974
Total Assets 7,112,340 8,169,280
Deferred Outflows of Resources— Pensions 2,162,049 2,390,140
Liabilities:
Accounts Payable and Other Current Liabilities 95,807 216,432
Unearned Revenue-impact fees 3,180,395 4,147,807
Long Term Liabilities 3,545,809 4,622,831
Total Liabilities 6,822,011 8,987,070
Deferred Inflows of Resources—Pensions 478,414 159,714
Net Position:
Net Investment in Capital Assets 2,131,017 2,081,974
Unrestricted Net Assets (Deficit) 0157,053) (669,338)
Total Net Position $ 1,973,964 $ 1,412.636
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, 2017
Government-wide Financial Statements (Continued)
The following reflects the revenues, expenses and changes in financial position for the
years ended September 30:
2016 2017
Revenues:
Program Fees $ 49,145 $ 32,718
Ad Valorem Taxes 2,552,794 2,994,850
Interest Income 22,977 27,467
Grant Revenue 962,772 1,276,664
Impact Fees 399,019 38,159
Other Revenue 226,171 57,268
Total Revenue 4,212,878 4,427,126
Expenses
Public Safety Expenses 4,162,893 4,988,454
Change in Net Position 49,985 (561,328)
Net Position — Beginning 1,923,979 1,973,964
Net Position - Ending of the fiscal year $ 1,973.964 $ 1,412,636
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 2017, the District received $442,056 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 17% increase. Other revenues, however, decreased
$227,808 net over the prior fiscal year due substantially to less allowable use of impact
fees.
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.
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.
iii
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2017
Government-wide Financial Statements (Continued)
During the fiscal year of 2017 expenses increased by $825,561 vs. the prior fiscal year
due to increases in operating costs. These costs included an increase of$506,368 in
retirement expense, approximately$250,000 in overtime and sick time, approximately
$100,000 in health insurance and $50,000 in repairs and increased depreciation
expense of $191,685.
Net Position
During fiscal year 2017, net position decreased by ($561,328).
During fiscal year 2016, net position increased by$49,985.
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, 2017
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 ($3,912) less than budgeted due
to various factors. The actual expenditures in the General Fund were $1,715,665 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 at September 30:
Capital Assets
September 30
2016 2017
Capital Assets not being depreciated:
Land $ 114,916 $ 114,916
Construction in progress 225,243 229,638
Total Capital Assets not being deprecia 340,159 344,554
Capital Assets being depreciated:
Buildings and building improvements 455,967 455,967
Machinery& equipment 1,080,037 1,368,178
Vehicles 2,962,609 2,962,609
Total Capital Assets being depreciated 4,498,613 4,786,754
Less: Accumulated Depreciation (2,707,755) (3,049,334)
Capital Assets, being depreciated, net 1,790,858 1,737,420
v
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2017
The District purchased capital assets during the year ended September 30, 2017 in the
amount of$292,536 which consisted of various new equipment.
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 following is a summary of changes in long-term liabilities for the year ended
September 30:
2016 2017
Net pension liability- FRS 2,389,598 3,408,712
Net pension liability- HIS 602,350 636,395
Compensated absences 374,551 374,299
Net OPEB obligation 179,310 203,425
$ 3,545,809 $ 4,622,831
Economic Factors and Next Year's Budget Rates
The following were factors considered when next year's budget (2017-2018) was
prepared:
• The estimated property taxes increased by approximately$346,296 or 12%for
budgeting purposes for 2018 as compared to 2017. The millage rate stayed
consistent at 3.75 mills for the fiscal year ending September 30, 2018. The District
has been awarded the Federal SAFER Grant to help fund personnel costs; the grant
ended early FY 18. The District has reapplied for the grant but will not know if it was
awarded for several months. The District intends to retain all personnel until it learns
if it was awarded the SAFER Grant.
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, Fire Chief, telephone (239) 657-2111.
vi
IMMOKALEE FIRE CONTROL DISTRICT Page 4 of 69
STATEMENT OF NET POSITION
September 30,2017
Governmental
Activities
ASSETS
Current assets:
Cash and cash equivalents $ 1,783,979
Restricted cash and cash equivalents 3,966,296
Due from other governments,including restricted amount of$163,575 270,261
Deposits -
Prepaid expenses 66,770
Total current assets 6,087,306
Noncurrent assets:
Capital assets:
Land 114,916
Construction in progress 229,638
Depreciable buildings,equipment and vehicles
(net of$3,022,131 accumulated depreciation) L737,420
Total noncurrent assets 2,081,974
TOTAL ASSETS 8,169,280
DEFERRED OUTFLOWS OF RESOURCES-PENSIONS 2,390,140
LIABILITIES
Current liabilities:
Accounts payable 76,876
Accrued liabilities 119,501
Unearned revenue-impact fees 4,147,807
Due to other governments 20,055
Current portion of long-term obligations -
Total current liabilities 4,364,239
Noncurrent liabilities:
Noncurrent portion of long-term obligations 4,622,831
TOTAL LIABILITIES 8,987,070
DEFERRED INFLOWS OF RESOURCES-PENSIONS 159,714
NET POSITION
Net investment in capital assets 2,081,974
Restricted -
Unrestricted(deficit) (669,338)
TOTAL NET POSITION $ 1,412,636
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 5 of 69
STATEMENT OF ACTIVITIES
Year Ended September 30,2017
Governmental
Activities
EXPENSES
Governmental Activities
Public Safety-Fire Protection
Personnel services $ 3,837,657
Operating expenses 809,218
Depreciation 341,579
Interest and fiscal charges -
TOTAL EXPENSES-GOVERNMENTAL ACTIVITIES 4,988,454
PROGRAM REVENUES
Charges for services 32,718
Operating/capital grants and contributions 1,276,664
TOTAL PROGRAM REVENUES 1,309,382
NET PROGRAM EXPENSES 3,679,072
GENERAL REVENUES
Ad Valorem taxes 2,994,850
Impact fees 38,159
Interest 27,467
Loss on disposition of capital assets -
Other 57,268
TOTAL GENERAL REVENUES 3,117,744
DECREASE IN NET POSITION (561,328)
NET POSITION-Beginning of year 1,973,964
NET POSITION-End of the year $ 1,412,636
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 6 of 69
BALANCE SHEET-GOVERNMENTAL FUNDS
September 30,2017
Total
General Impact Fee Governmental
Fund Fund Funds
ASSETS
Cash and cash equivalents $ 1,783,979 $ $ 1,783,979
Restricted cash and cash equivalents - 3,966,296 3,966,296
Due from other governments 106,686 163,575 270,261
Due from other funds - 18,456 18,456
Deposits - _ -
Prepaid expenditures 66,770 - 66,770
TOTAL ASSETS $ 1,957,435 $ 4,148,327 $ 6,105,762
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable $ 76,356 $ 520 $ 76,876
Accrued liabilities 119,501 - 119,501
Due to other funds 18,456 - 18,456
Due to other governments 20,055 - 20,055
Unearned revenue-impact fees - 4,147,807 4,147,807
TOTAL LIABILITIES 234,368 4,148,327 4,382,695
FUND BALANCE
Nonspendable 66,770 - 66,770
Assigned 1,455,453 - 1,455,453
Unassigned 200,844 - 200,844
TOTAL FUND BALANCE 1,723,067 - 1,723,067
TOTAL LIABILITIES AND
FUND BALANCE $ 1,957,435 $ 4,148,327 $ 6,105,762
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 7 of 69
RECONCILIATION OF THE BALANCE SHEET -GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
September 30,2017
Amount
Total fund balance for governmental funds $ 1,723,067
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 229,638
344,554
Governmental capital assets being depreciated:
Building,Equipment and Vehicles 4,759,551
Less accumulated depreciation (3,022,131)
1,737,420
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 2,390,140
Deferred inflows related to pensions (159,714)
2,230,426
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 (3,408,712)
Net pension liability-HIS (636,395)
Compensated absences (374,299)
Net OPEB obligation (203,425)
(4,622,831)
Elimination of interfund amounts:
Due from other funds 18,456
Due to other funds (18,456)
Total net position of governmental activities $ 1,412,636
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 8 of 69
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-GOVERNMENTAL FUNDS
Year Ended September 30,2017
Impact Total
General Fee Governmental
Fund Fund Funds
REVENUES
Ad Valorem taxes $ 2,994,850 $ - $ 2,994,850
Intergovernmental revenues:
Federal public safety grants-SAFER/AFG 1,262,651 - 1,262,651
State grant 9,525 - 9,525
State firefighter supplemental 4,488 - 4,488
Fees:
Inspection fees 29,394 - 29,394
Impact fees - 38,159 38,159
Public safety services 3,324 - 3,324
Miscellaneous:
Interest 10,157 17,310 27,467
Other 57,268 - 57,268
TOTAL REVENUES 4,371,657 55,469 4,427,126
EXPENDITURES
Current
Public safety
Personnel services 3,307,426 - 3,307,426
Operating expenditures 799,166 10,052 809,218
Capital outlay 247,119 45,417 292,536
Debt service
Principal reduction - - - 1
Interest and fiscal charges - - -
TOTAL EXPENDITURES 4,353,711 55,469 4,409,180
EXCESS OF REVENUES
OVER EXPENDITURES 17,946 - 17,946
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 17,946 - 17,946
FUND BALANCE-Beginning of the year 1,705,121 - 1,705,121 '
FUND BALANCE-End of the year $ 1,723,067 $ - $ 1,723,067
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 9 of 69
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE•
GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Year Ended September 30,2017
Amount
Net change(excess of revenues over(under)expenditures)
in fund balance-total governmental funds $ 17,946
The decrease(change)in net position reported for governmental activities
in the statement of activities is different because:
Governmental funds report capital outlays as expenditures.
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 292,536
Less:proceeds from disposition of capital assets -
Plus:gain on disposition of capital assets -
Less:loss on disposition of capital assets -
Less:current year depreciation (341,579)
(49,043)
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 228,091
(Increase)decrease in deferred inflows 318,700
(Increase)decrease in net pension liability-pension(FRS) (1,019,114)
(Increase)decrease in net pension liability-HIS (34,045)
(Increase)decrease in compensated absences,net 252
(Increase)decrease in net OPEB obligation (24,115)
(530,231)
Decrease in net position of governmental activities $ (561,328)
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 10 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE A- ORGANIZATION AND SUMMARY 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 and has
approximately 42 employees including volunteers. 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.
IMMOKALEE FIRE CONTROL DISTRICT Page 11 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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
government. 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 Page 12 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 District are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self-balancing accounts that comprise its assets,liabilities,
fund equity or 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 Page 13 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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, "Basic Financial
Statements -and Management's Discussion and Analysis-for State and Local
Governments" (GASB 34). The funds that do not meet the criteria of a major fund are
considered non-major funds and are combined into a single column on the
governmental fund financial statements.
Separate financial statements are provided for governmental funds. Major
individual governmental funds are reported in separate columns on the fund financial
statements.
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.
IMMOKALEE FIRE CONTROL DISTRICT Page 14 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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.
Intergovernmental revenues that are reimbursements for specific purposes or projects
are recognized when all eligibility requirements are met.
Expenditures are generally recognized under the modified accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (1)
principal and interest on 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.
IMMOKALEE FIRE CONTROL DISTRICT Page 15 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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, 2017.
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 Page 16 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 expenses 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 3-20
Vehicles 4-10
IMMOKALEE FIRE CONTROL DISTRICT Page 17 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES,CONTINUED
Budgets and Budaetary 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:
1. During the summer of each year,the District Fire Chief submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
the upcoming October 1. The operating budget includes proposed expenditures
and the means of financing them.
2. Public hearings are conducted to obtain 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, 2017.
The District did not amend the Impact Fee Fund budget during the year ended
September 30, 2017.
IMMOKALEE FIRE CONTROL DISTRICT Page 18 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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
in the fund statements 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 sick,
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 sick,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 Page 19 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 reflects 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,
2017.
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,
2017.
IMMOKALEE FIRE CONTROL DISTRICT Page 20 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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$1,455,453 for various
uses at September 30, 2017. 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 plans 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 Page 21 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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, deferred
inflows of resources,represents an acquisition of net position that applies to a future
period and so will not be recognized as an inflow of resources(revenue)until that
time. The deferred amount on 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
over five to seven years.
Subsequent Events
Subsequent events have been evaluated through April 17, 2018,which is the date
the financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
At September 30, 2017,cash and cash equivalents were$5,750,275,which
included unrestricted cash of$1,783,979 in the General Fund(including petty cash of
$100)and restricted cash of$3,966,296, 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 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 30,2017, the carrying amounts of the District's deposits were
$1,783,879 and$3,966,296 in the General Fund and the Impact Fee Fund,
respectively. At September 30, 2017,bank balances were$1,860,287 and
$3,967,411 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 GOVERNMENTS
Due from other governments at September 30, 2017, are as follows:
Description General Fund
Collier County Tax Collector $ 20,111
U.S.Department of Homeland Security
FEMA-SAFER-Hiring Grant(CFDA 97.83) 78,959
FEMA-SAFER-Hiring Grant(CFDA 97.83) 7,616
106,686
Impact Fee Fund
Collier County 163,575
$ 270,261
NOTE D- DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2017, are as follows:
Due From Due To
Other Funds Other Funds
General Fund:
Impact Fee $ - $ 18,456
Total General Fund - 18,456
Special Revenue Fund:
Impact Fee:
General 18,456 -
Total Special Revenue Fund 18,456 -
Total $ 18,456 $ 18,456
Interfund receivables and payables were eliminated for presentation purposes in the
Statement of Net Position at September 30, 2017.
IMMOKALEE FIRE CONTROL DISTRICT Page 23 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE E- CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the year ended
September 30,2017:
Balance Balance
October 1 Increases/ Decreases/ Adjustments/ September 30
2016 Additions Deletions Reclassifications 2017
Capital Assets Not
Being Depreciated:
Land $ 114,916 $ - $ - $ - $ 114,916
Construction in Progress 225,243 4,395 - - 229,638
Total Capital Assets Not
Being Depreciated 340,159 4,395 - - 344,554
Capital Assets
Being Depreciated:
Buildings 455,967 - - - 455,967
Equipment&Machinery 1,080,037 288,141 (27,203) - 1,340,975
Vehicles 2,962,609 - - - 2,962,609
Total Capital Assets
Being Depreciated 4,498,613 288,141 (27,203) - 4,759,551
Less Accumulated
Depreciation:
Buildings (315,092) (11,500) - - (326,592)
Equipment&Machinery (589,050) (117,016) 27,203 - (678,863)
Vehicles (1,803,613) (213,063) - - (2,016,676)
Total Accumulated Depreciation (2,707,755) (341,579) 27,203 - (3,022,131)
Total Capital Assets Being
Depreciated,Net 1,790,858 (53,438) - - 1,737,420
Capital Assets,Net $ 2,131,017 $ (49,043) $ - $ - 2,081,974
Related debt -
Net investment in capital assets $ 2,081,974
Depreciation expense was charged to the following functions during the year ended
September 30, 2017:
Amount
General Government $ 341,579
Total Depreciation Expense $ 341,579
IMMOKALEE FIRE CONTROL DISTRICT Page 24 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE F- LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended
September 30, 2017:
Balance Balance Amounts
October 1 Retirements/ September 30 Due Within
2016 Additions Adjustments 2017 One Year
Net pension liability-FRS $ 2,389,598 $ 1,019,114 $ - $ 3,408,712 $
Net pension liability-HIS 602,350 34,045 - 636,395 -
Compensated Absences 374,551 - (252) 374,299
Net OPEB Obligation 179,310 24,115 - 203,425 -
$ 3,545,809 $ 1,077,274 $ (252) $ 4,622,831 $ -
The following is a summary of the long-term obligations at September 30,2017:
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. $3,408,712
Net pension obligation-HIS plan. This amount is actuarially determined
through calculation based upon the audited financial statements of the
Florida Retirement Plan. 636,395
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. 374,299
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. 203,425
Total long-term liabilities 4,622,831
Current portion -
Noncurrent portion $4,622,831
IMMOKALEE FIRE CONTROL DISTRICT Page 25 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 112,Florida Statutes,established the Retiree Health Insurance
Subsidy(HIS)Program, a separate cost-sharing,multiple-employer defined benefit
pension plan to assist retired members of any State-administered retirement system in
paying the costs of health insurance.
Essentially all regular employees of the District are eligible to enroll as members of the
State-administered FRS. Provisions relating to the FRS are established by Chapters
121 and 122, Florida Statutes;Chapter 112,Part IV,Florida Statutes;Chapter 238,
Florida Statutes;and Florida Retirement System Rules,Chapter 60S,Florida
Administrative Code;wherein eligibility,contributions,and benefits are defined and
described in detail. Such provisions may be amended at any time by further action
from the Florida Legislature. The FRS is a single retirement system administered by
the Florida Department of Management Services,Division of Retirement, and
consists of two cost-sharing, multiple-employer defined benefit plans(Pension and
HIS Plans)and other nonintegrated programs. A comprehensive annual financial
report of the FRS,which includes its financial statements,required supplementary
information,actuarial report, and other relevant information dated June 30, 2017,is
available from the Florida Department of Management Services'Website
(www.dms.myflorida.com).
The District's total pension expense,$916,968 for the year ended September 30,
2017, is recorded in the government-wide financial statements. Total District actual
retirement contribution expenditures were$410,600,$394,512 and$255,412 for
the years ended September 30, 2017, 2016 and 2015, respectively. The District
contributed 100% of the required contributions.
IMMOKALEE FIRE CONTROL DISTRICT Page 26 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 Page 27 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 July 1,2011, the average final compensation is the average of the eight
highest fiscal years'earnings. The total percentage value of the benefit received is
determined by calculating the total value of all service,which is based on retirement
plan and/or the class to which the member belonged when the service credit was
earned. Members are eligible for in-line-of-duty or regular disability and survivors'
benefits. The following chart shows the percentage value of each year of service
credit earned:
Class,Initial Enrollment,and Retirement Age/Years of Service %Value
Regular Class and elected members initially enrolled before July 1,2011
Retirement up to age 62,or up to 30 years of service 1.60
Retirement at age 63 or with 31 years of service 1.63
Retirement at age 64 or with 32 years of service 1.65
Retirement at age 65 or with 33 or more years of service 1.68
Regular Class and elected members initially enrolled on or after July 1,20]1
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
Elected Officers'Class 3.00
IMMOKALEE FIRE CONTROL DISTRICT Page 28 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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, 2017 were as follows:
Percent of Gross Salary*
Class Employee Employer(1) Employer(3)
Florida Retirement System,Regular 3.00 7.52 7.92
Florida Retirement System,Senior Management Service 3.00 21.77 22.71
Florida Retirement System,Special Risk 3.00 22.57 23.27
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 12.99 13.26
Florida Retirement System,Reemployed Retiree (2) N/A N/A
Florida Retirement System,Elected Official 3.00 42.47 45.50
Notes:
(I) 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.
(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.06 percent for administrative costs for
the Investment Plan. Rates for 7/1/17-6/30/18.
* As defined by the Plan.
IMMOKALEE FIRE CONTROL DISTRICT Page 29 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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, 2017, the District reported a pension liability of$3,408,712 for its
proportionate share of the net pension liability.The net pension liability was measured
as of June 30, 2017, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1, 2017. The
District's proportionate share of the net pension liability was based on the District's
2016-17 fiscal year contributions relative to the total 2016-17 fiscal year
contributions of all participating members. At September 30, 2017,the District's
proportionate share was .011523968 percent, which was an increase of.002060242
percent from its proportionate share measure as of September 30, 2016.
For the year ended September 30, 2017,the District recognized a pension expense
of$852,780. 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 $ 312,838 $ 18,883
Change of assumptions 1,145,567
Net difference between projected and
actual earnings on pension plan investments - 84,476
Changes in proportion and differences between
District contributions and proportionate share
of contributions 612,786 -
District contributions subsequent to the
measurement date 65,841 -
Total $ 2,137,032 $ 103,359
IMMOKALEE FIRE CONTROL DISTRICT Page 30 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE G - RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan,continued
The deferred outflows of resources related to the FRS pension,totaling$65,841,
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, 2018. 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
2018 $ 358,938
2019 358,938
2020 358,938
2021 358,938
2022 380,057
Thereafter 152,023
Total $ 1,967,832
Actuarial Assumptions. The total pension liability in the July 1, 2017, actuarial
valuation was determined using the following actuarial assumptions,applied to all
periods included in the measurement:
Inflation 2.60 percent
Real payroll growth 0.65 percent
Salary increases 3.25 percent, average, including inflation
Investment rate of return 7.10 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 1,2017, valuation were based on the
results of an actuarial experience study for the period July 1, 2008 through June 30,
2013.
IMMOKALEE FIRE CONTROL DISTRICT Page 31 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE 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:
Compound
Annual Annual
Target Arithmetic (Geometric) Standard
Asset Class Allocation(1) Return Return Deviation
Cash 1.00% 3.0% 3.0% 1.8%
Fixed income 18.00% 4.5% 4.4% 4.2%
Global equity 53.00% 7.8% 6.6% 17.0%
Real estate(property) 10.00% 6.6% 5.9% 12.8%
Private equity 6.00% 11.5% 7.8% 30.0%
Strategic investments 12.00% 6.1% 5.6% 9.7%
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 7.10 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 Page 32 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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
7.10 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(6.10 percent)or 1-percentage-point higher(8.10 percent)than the current
rate:
1% Current 1%
Decrease Discount Rate Increase
(6.10%) (7.10%) (8.10%)
District's proportionate share of
the net FRS pension liability $ 6,169,564 $ 3,408,712 $ 1,116,573
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, 2017.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee,FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2017,the District reported a
payable of$16,970 for the outstanding amount of contributions in the pension plan
required for the year ended September 30, 2017.
IMMOKALEE FIRE CONTROL DISTRICT Page 33 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 30,2017,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, 2017,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, 2017,the District reported a HIS liability of$636,395 for its proportionate share
of the net HIS Plan's net pension liability. The net pension liability was measured as
of June 30, 2017, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1,2017. The
District's proportionate share of the net HIS liability was based on the District's
IMMOKALEE FIRE CONTROL DISTRICT Page 34 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
HIS Plan,continued
2016-17 fiscal year contributions relative to the total 2016-17 fiscal year
contributions of all participating members. At September 30, 2017, the District's
proportionate share was .005951814 percent, which was an increase of.000783458
percent from its proportionate share measured as of September 30, 2016.
For the fiscal year ended September 30, 2017,the District recognized HIS expense
of$64,188. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected
and actual experience $ - $ 1,325
Change of assumptions 89,455 55,030
Net difference between projected and actual
earnings on HIS pension plan investments 353 -
Changes in proportion and differences between
District HIS contributions and proportionate
share of HIS contributions 156,803 -
District contributions subsequent to the
measurement date 6,497 -
Total $ 253,108 $ 56,355
The deferred outflows of resources related to HIS,totaling$6,497, 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, 2018. 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
2018 $ 30,717
2019 30,717
2020 30,717
2021 30,718
2022 30,629
Thereafter 36,758
Total $ 190,256
IMMOKALEE FIRE CONTROL DISTRICT Page 35 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE G- RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN,CONTINUED
HIS Plan,continued
Actuarial Assumptions. The total pension liability in the July 1, 2017, actuarial
valuation was determined using the following actuarial assumptions,applied to all
periods included in the measurement:
Inflation 2.60 percent
Real Payroll Growth 0.65 percent
Salary Increases 3.25 percent, average,including inflation
Municipal Bond Rate 3.58 percent
Mortality rates were based on the Generational RP-2000 with Projected Scale BB.
Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has
been completed for the Plan.
Discount Rate. The discount rate used to measure the total HIS liability was
3.58 percent. In general, the discount rate for calculating the total HIS liability is
equal to the single rate equivalent to discounting at the long-term expected rate of
return for benefit payments prior to the projected depletion date. Because the HIS
benefit is essentially funded on a pay-as-you-go basis, the depletion date is
considered to be immediate, and the single equivalent discount rate is equal to the
municipal bond rate selected by the plan sponsor. The Bond Buyer General
Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal
bond index.
Sensitivity of the District's Proportionate Share of the Net HIS Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net HIS liability calculated using the discount rate of
3.58 percent,as well as what the District's proportionate share of the net HIS
liability would be if it were calculated using a discount rate that is 1-percentage-point
lower(2.58 percent)or 1-percentage-point higher(4.58 percent)than the current
rate:
1% Current 1%
Decrease Discount Rate Increase
(2.58%) (3.58%) (4.58%)
District's proportionate share of
the net HIS liability $ 726,211 $ 636,395 $ 561,584
IMMOKALEE FIRE CONTROL DISTRICT Page 36 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 30,2017.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee,FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2017, the District reported a
payable of$1,277 for the outstanding amount of contributions to the HIS plan required
for the fiscal year ended September 30, 2017.
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 Page 37 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 2016-17 fiscal year were as follows:
Percent of Gross Salary*
Class Employee Employer(1) Employer(3)
Florida Retirement System.Regular 3.00 7.52 7.92
Florida Retirement System,Senior Management Service 3.00 21.77 22.71
Florida Retirement System,Special Risk 3.00 22.57 23.27
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 12.99 13.26
Florida Retirement System,Reemployed Retiree (2) N/A N/A
Florida Retirement System,Elected Official 3.00 42.47 45.50
Notes:
(1) 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.
(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.06 percent for administrative costs for
the Investment Plan. Rates for 7/1/17-6/30/18.
* 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,
2017,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 Page 38 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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$183,075 for the fiscal year
ended September 30, 2017.
Payables to the Investment Plan. At September 30, 2017,the District reported a
payable of$0 for the outstanding amount of contributions to the Plan required for the
fiscal year ended September 30,2017.
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 2017 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, 2017, $20,111 was
due from the Collier County Tax Collector for ad valorem taxes and excess fees.
IMMOKALEE FIRE CONTROL DISTRICT Page 39 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE H- PROPERTY TAXES,CONTINUED
Important dates in the property tax cycle are as follows:
Assessment roll certified July 1
Millage resolution approved No later than 93 days following
certification of assessment roll
Beginning of fiscal year for which
taxes have been levied October 1
Taxes due and payable(levy date) November 1 with various discount
provisions through March 31
Property taxes payable-
maximum discount(4 percent) 30 days after levy date
Due date March 31
Taxes become delinquent(lien date) April 1
Tax certificates sold by the Collier
County Tax Collector Prior to June 1
For the year ended September 30,2017, 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 2016
net taxable value of real property located within the District.
NOTE I- IMPACT FEE FUND ACTIVITY
During the year ended September 30,2017,the Impact Fee Fund had the
following activity:
Amount
Unearned revenue, October 1, 2016 $ 3,180,395
Impact fee receipts* 1,005,571
Interest income 17,310
Transfer In from General Fund -
Commissions(admin fee) -paid to Collier County (10,052)
Capital outlay (45,417)
Unearned revenue, September 30,2017 $ 4,147,807
*Includes $163,575 due from Collier County.
IMMOKALEE FIRE CONTROL DISTRICT Page 40 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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, 2017:
Nonspendable Fund Balance Amount
General Fund
Prepaid expenditures $ 66,770
Total Nonspendable Fund Balance-General Fund $ 66,770
Assigned Fund Balance Amount
General Fund
Assigned for fiscal year startup(90 day operations) $ 835,794
Fleet reserves 100,000
Accrued liabilities 318,157
Disaster reserves 50,000
OPEB GASB reserves 151,502
Total Assigned Fund Balance-General Fund $ 1,455,453
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 Page 41 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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, 2017, 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
obligation to the Retiree Health Plan:
IMMOKALEE FIRE CONTROL DISTRICT Page 42 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE L - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Annual OPEB Cost and Net OPEB Obligation,continued
Amount
Annual required contribution $ 44,661
Interest on net OPEB obligation 3,314
Adjustment to annual required contribution (3,628)
Annual OBEB cost(expense) 44,347
Contributions made (20,232)
Increase in net OBEB obligation 24,115
Net OPEB obligation-beginning of year 179,310
Net OPEB obligation-end of year $ 203,425
The District's annual OPEB cost, the percentage of annual OPEB cost contributed to
the plan, and the net OPEB obligation for fiscal year 2017 is as follows:
Percentage of
Annual OPEB
Fiscal Annual Cost Net OPEB
Year Ended OPEB Cost Contributed Obligation
09/30/17 $ 44,347 0.0% $ 203,425
09/30/16 $ 24,115 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 $ 82,252 0.0% $ 82,252
(1) Estimated. No actuarial study performed
Funded Status and Funding Process
As of September 30, 2017,the actuarial accrued liability(AAL)for benefits was$430,337,
all of which was unfunded. The covered payroll(annual payroll of active employees
covered by the plan)was $2,076,484, and the ratio of the unfunded actuarial accrued
liability to the covered payroll was 20.72 percent.
IMMOKALEE FIRE CONTROL DISTRICT Page 43 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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 Page 44 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
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, 2017, was twenty-eight(28)years.
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress for the Retiree Health Plan
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)
9/30/17 $ 129,045 $ 430,337 $ 301,292 29.99% $2,076,484 14.51%
9/30/16 $ 129,174 $ 548,117 $ 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 $ 85,470 $ 539,307 $ 453,837 15.85% $1,195,445 37.96%
9/30/13 $ - $ 429,349 $ 429,349 0.00% $ 789,278 54.40%
IMMOKALEE FIRE CONTROL DISTRICT Page 45 of 69
NOTES TO THE FINANCIAL STATEMENTS
September 30,2017
NOTE M- DEFICIT UNRESTRICTED NET POSITION(NET ASSETS)
During the year ended September 30, 2017,the District's unrestricted net position(net
assets)balance was again a deficit and totaled$(669,338),due substantially to
recording the current year actuarially determined net pension liability of$4,045,107.
The District's total available fund balance at September 30, 2017 remains
approximately equal to five(5) months of actual expenditures. However,the Board has
previously assigned $1,455,453 of the$1,656,297 available fund balance for specific
purposes.
During the year ended September 30, 2016,the District's unrestricted net position(net
assets)balance was again a deficit and totaled$(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$1,705,121 available fund balance for specific purposes.
During the year ended September 30, 2015,the District's unrestricted net position(net
assets)balance became a deficit and of$(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$1,057,074 of the
$1,472,132 available fund balance for specified purposes.
NOTE N- SUBSEQUENT EVENTS
Subsequent to the year ended September 30, 2017,the District's SAFER grant ended.
As such,the District has decided to retain the affected employees and fund the related
costs through the use of District reserves while it reapplies for the SAFER grant.
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
IMMOKALEE FIRE CONTROL DISTRICT Page 46 of 69
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND-
SUMMARY STATEMENT
Year Ended September 30,2017
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ 2,918,762 $ 2,998,762 $ 2,994,850 $ (3,912)
Intergovernmental revenues:
Federal public safety grant-SAFER/AFG 1,415,820 1,186,721 1,262,651 75,930
State grant 9,050 9,050 9,525 475
State firefighter supplemental 3,840 3,840 4,488 648
Inspection fees 73,000 73,000 29,394 (43,606)
Public safety services 15,275 15,275 3,324 (11,951)
Miscellaneous:
Interest 8,000 8,000 10,157 2,157
Other 174,730 69,607 57,268 (12,339)
Reserves brought forward 1,648,566 1,705,121 - (1,705,121)
TOTAL REVENUES 6,267,043 6,069,376 4,371,657 (1,697,719)
EXPENDITURES
Current
Public safety
Personnel services 3,202,988 3,505,089 3,307,426 197,663
Operating expenditures 679,759 700,716 799,166 (98,450)
Capital outlay 842,269 295,433 247,119 48,314
Debt service
Principal reduction _ - - -
Interest and fiscal charges - - - -
Assigned-90 day reserve 835,794 835,794 - 835,794
Assigned-Fleet Reserves 100,000 100,000 - 100,000
Assigned-Accrued Liabilities 318,157 318,157 - 318,157
Assigned-Disaster Reserves 50,000 50,000 - 50,000
Assigned-800 Radio Reserves - - - _
Assigned-GASB reserve 151,502 151,502 - 151,502
Reserves-unassigned 86,574 112,685 - 112,685
TOTAL EXPENDITURES 6,267,043 6,069,376 4,353,711 1,715,665
EXCESS OF REVENUES
OVER EXPENDITURES - - 17,946 17,946
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 $ - $ - 17,946 $ 17,946
FUND BALANCE-Beginning 1,705,121
FUND BALANCE-Ending $ 1,723,067
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 47 of 69
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND
DETAILED STATEMENT
Year Ended September 30,2017
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ 2,918,762 $ 2,998,762 $ 2,994,850 $ (3,912)
Intergovernmental revenues:
Federal public safety grants-SAFER/AFG 1,415,820 1,186,721 1,262,651 75,930
State grant 9,050 9,050 9,525 475
State firefighter supplemental 3,840 3,840 4,488 648
Inspection fees 73,000 73,000 29,394 (43,606)
Public safety services 15,275 15,275 3,324 (11,951)
Miscellaneous:
Interest income 8,000 8,000 10,157 2,157
Seminole contract 134,123 - - -
PILl farm workers village 6,650 6,650 6,150 (500)
Donations 100 100 200 100
User fees-rent 5,748 5,748 6,121 373
Other income 28,109 57,109 44,797 (12,312)
Subtotal 4,618,477 4,364,255 4,371,657 7,402
Reserves brought forward 1,648,566 1,705,121 - (1,705,121)
TOTAL REVENUES 6,267,043 6,069,376 4,371,657 (1,697,719)
EXPENDITURES
PERSONNEL SERVICES
Salaries
Firefighters&administrative 1,604,391 1,735,458 1,692,702 42,756
EMT incentive pay 201,840 201,840 3,125 198,715
Overtime pay 119,489 170,493 298,593 (128,100)
Holiday pay 55,301 65,786 62,421 3,365 !
Vacation&sick sell back pay 14,449 29,671 60,779 (31,108)
Separation pay - - -
Payroll taxes
Social Security 150,117 150,117 159.979 (9,862)
Benefits
Retirement 425,159 425,159 410,600 14,559
Group insurance 546,327 623,308 552.995 70,313
Workers compensation 85,915 103,257 57,849 45,408
Unemployment - - 8,383 (8,383)
SUBTOTAL-PERSONNEL SERVICES 3,202,988 3,505,089 3,307,426 197,663
OPERATING
Contracted Services
Physicals 15,960 15,960 5,876 10,084
Bank service charges - - - -
Legal fees 19,200 19,200 33,939 (14,739)
Property appraiser fees 30,671 30,671 19,603 11,068
Tax collection fees 61,342 61,342 61,639 (297)
Contracted services 132,719 132,719 129,786 2,933
Generators 1,000 1,000 - 1,000
Pest control 1,125 1,125 509 616
Subtotal-Contracted services 262,017 262,017 251,352 10,665
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 48 of 69
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND
DETAILED STATEMENT- CONTINUED
Year Ended September 30,2017
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
OPERATING,CONTINUED
Operating
Education and training 62,300 62,300 34,791 27,509
Travel 12,548 12,548 7,646 4,902
Communications-telephone 15,216 15,216 16,125 (909)
Postage 750 750 1,434 (684)
Utilities 22,594 22,594 20,707 1,887
Explorer program 3,000 3,000 454 2,546
Liability insurance 54,974 54,974 66.346 (11.372) I
Subtotal-Operating 171,382 171,382 147,503 23,879
Maintenance
Vehicle 41,250 62,207 89,481 (27,274)
Equipment-firefighter and rescue 30,010 30,010 16,609 13,401
Office equipment - - - -
Computer - - - -
Communications-radio - - - -
Building 21,070 21,070 63,230 (42,160)
Bunker gear - - - _
Cascade system - - - -
Subtotal-Maintenance 92,330 113,287 169,320 (56,033)
Legal advertising 4,350 4,350 5,904 (1,554)
Supplies
Office 4,000 4,000 3,809 191
Shipping 750 750 - 750
Firefighter rescue - - 75,870 (75,870)
Station-janitorial 4,530 4,530 6,055 (1,525)
Training - - - -
Fuel and oil 41,500 41,500 48,201 (6,701)
Uniforms 23,000 23,000 22,724 276
Employee 500 500 - 500
Physical fitness equipment 750 750 - 750
Inter-departmental 500 500 8 492
Computer software and training 7.500 7,500 2,097 5,403
Miscellaneous 2,000 2,000 2,153 (153)
Bunker gear 22,500 22,500 25,076 (2,576)
Fire prevention 2,000 2,000 _ 2,000
Communication(radio) 1,500 1,500 - 1,500
Communication(phone) 1,000 1,000 51 949
Station-non janitorial 1,800 1,800 1,924 (124)
Public education 3,000 3,000 3,513 (513)
Furniture 4,200 4,200 8,226 (4,026)
Computer equipment 2,250 2,250 608 1,642
Fire Inspection - - - -
Operating 4,000 4,000 7,908 (3,908)
Minor equipment 9,500 9,500 3,091 6,409
Tires&batteries 7,450 7,450 8,867 (1,417)
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 49 of 69
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND
DETAILED STATEMENT- CONTINUED
Year Ended September 30,2017
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Books and dues 5,450 5,450 4,906 544
Subtotal-Supplies 149,680 149,680 225,087 (75,407)
SUBTOTAL-OPERATING EXPENDITURES 679,759 700,716 799,166 (98,450)
Capital Outlay
Land - - - -
Firefighter rescue equipment - - 780 (780)
Communication equipment 3,500 3,500 3,174 326
Building 581,261 34,425 34,425
Vehicles - - - -
Bunker gear - - - -
Furniture-Office - - - -
Station equipment 252,008 252,008 209,840 42,168
Computer equipment 5,500 5,500 33,325 (27,825)
SUBTOTAL-CAPITAL OUTLAY 842,269 295,433 247,119 48,314
Debt service
Principal retirement - - - -
Interest charges and fiscal - - - -
SUBTOTAL-DEBT SERVICE - - - -
Assigned-90 day OPS 835,794 835,794 - 835,794
Assigned-Fleet Reserves 100,000 100,000 - 100,000
Assigned-Accrued Liabilities 318,157 318,157 - 318,157
Assigned-Disaster Reserves 50,000 50,000 - 50,000
Assigned-800 Radio Reserves - - - -
Assigned-GASB Reserves 151,502 151,502 - 151,502
Reserves-Unassigned 86,574 112,685 - 112,685
TOTAL EXPENDITURES 6,267,043 6,069,376 4,353,711 1,715,665
EXCESS OF REVENUES
OVER EXPENDITURES - - 17,946 17,946
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 $ - $ 17,946 $ 17,946
FUND BALANCE-BEGINNING 1,705,121
FUND BALANCE-ENDING $ 1,723,067
The accompanying notes are an integral part of this statement.
I
IMMOKALEE FIRE CONTROL DISTRICT Page 50 of 69
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE-BUDGET AND ACTUAL-IMPACT FEE FUND
SUMMARY STATEMENT
Year Ended September 30,2017
Impact Fee Fund
Variance
Original Final Favorable l
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ - $ - $ - $ -
Impact fees 775,000 775,000 38,159 (736,841)
Intergovernmental revenue-grants - - - -
Miscellaneous:
Interest 5,000 5,000 17,310 12,310
Other - - - -
Cash brought forward 3,013,680 3,013,680 - (3,013,680)
TOTAL REVENUES 3,793,680 - 3,793,680 55,469 (3,738,211)
EXPENDITURES
Current
Public safety
Personnel services - - - -
Operating expenditures 11,625 11,625 10,052 1,573
Capital outlay 3,347,770 3,347,770 45,417 3,302,353
Debt service
Principal reduction - - - -
Interest and fiscal charges - - - -
Contingency 434,285 434,285 - 434,285
TOTAL EXPENDITURES 3,793,680 3,793,680 55,469 3,738,211
EXCESS OF REVENUES
OVER EXPENDITURES - - - -
OTHER FINANCING SOURCES(USES)
Operating transfers in - - - -
Operating transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) - - - -
NET CHANGE IN FUND BALANCE $ - $ - - $ -
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 30,2017
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 EMW-2014-FH-00126
SAFER-Hiring Grant 97.083 2015-F4-C211-P4310000-4101-D $ 2,012,052
Staffing of Adequate Fire and Emergency Response EMW-2013-FF-00593
SAFER-Recruitment&Retention Grant 97.083 2014-M3-C211-P4310000-4101-D 457,942
2,469,994
TYPE B-NON MAJOR
Assistance to Firefighters Grant Program 97.044 EMW-2015-FO-06716
DHS-12-GPD-044-000-98 229,099
TOTAL FEDERAL FINANCIAL AWARDS $ 2,699,093
(1)Includes receivable of$78,959
(2)Includes receivable of$7,616
(3)Does not include the 10%match requirement.
Page 51 of 69
Receipts/ Disbursements/ Pass through
Revenue Expenditures to Subrecipients
$ 947,963 (1) $ 947,963 $ -
111,369 (2) 111,369 -
1,059,332 1,059,332 -
203,319 (3) 203,319 -
$ 1,262,651 $ 1,262,651 $ -
IMMOKALEE FIRE CONTROL DISTRICT Page 52 of 69
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended September 30,2017
NOTE A- BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards 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.
IMMOKALEE FIRE CONTROL DISTRICT Page 53 of 69
SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY -FLORIDA RETIREMENT SYSTEM(FRS)PENSION
PLAN(1)
2017 2016 2015 2014
District's proportion of the net pension liability 0.011523968% 0.009463726% 0.006183105% 0.006001750%
District's proportionate share of the net pension liability $ 3,408,712 $ 2,389,598 $ 798,631 $ 366,195
District's covered-employee payroll $ 2,117,620 $ 1,735,883 $ 1,298,578 $ 1,199,275
District's proportionate share of the net pension liability
as a percentage of its covered-employee payroll 160.97% 137.66% 61.50% 30.53%
Plan fiduciary net position as a percentage of the
total pension liability 83.89% 84.88% 92.00% 96.09%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS-
FLORIDA RETIREMENT SYSTEM (FRS)PENSION PLAN (1)
2017 2016 2015 2014
Contractually required contribution $ 381,858 $ 365,318 $ 236,175 $ 209,820
Contributions in relation to the contractually
required contribution 381,858 365,318 236,175 209,820
Contribution deficiency(excess) $ - $ - $ - $ -
District's covered-employee payroll $ 2,117,620 $ 1,735,883 $ 1,298.578 $ 1,199,275
Contributions as a percentage of covered-employee
payroll 18.03% 21.05% 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 69
SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY -HEALTH INSURANCE SUBSIDY(HIS)PENSION
PLAN(1)
2017 2016 2015 2014
District's proportion of the net pension liability 0.005951814% 0.005168356% 0.004192421% 0.004035317%
District's proportionate share of the net pension liability $ 636,395 $ 602,350 $ 427,561 $ 377,312
District's covered-employee payroll $ 2,117,620 $ 1,735,883 $ 1,298,578 $ 1,199,275
District's proportionate share of the net pension liability
as a percentage of its covered-employee payroll 30.05% 34.70% 32.93% 31.46%
Plan fiduciary net position as a percentage of the
total pension liability 1.64% 0.97% 0.50% 0.99%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS-
HEALTH INSURANCE SUBSIDY(HIS)PENSION PLAN(1)
2017 2016 2015 2014
Contractually required contribution $ 28,742 $ 29,194 $ 19,237 $ 14,244
Contributions in relation to the contractually
required contribution 28,742 29,194 19,237 14,244
Contribution deficiency(excess) $ - $ - $ - $ -
District's covered-employee payroll $ 2,117,620 $ 1,735,883 $ 1,298,578 $ 1,199,275
Contributions as a percentage of covered-employee
payroll 1.36% 1.68% 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 69
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30,2017
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 7.60%to 7.10%. 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 increased from 2.85%to 3.58% 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, 2017,the inflation rate
assumption remained at 2.6 percent,the real payroll growth assumption was 0.65
percent, and the overall payroll growth rate assumption remained at 3.25 percent.
The long-term expected rate of return was reduced from 7.60 percent to 7.10
percent.
Health Insurance Subsidy Pension Plan
The municipal rate used to determine total pension liability increased from 2.85
percent to 3.58 percent.
•
IMMOKALEE FIRE CONTROL DISTRICT Page 56 of 69
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30,2017
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, 2017, remained at 6.4 years for FRS and 7.2
years for HIS.
ADDITIONAL REPORTS
T Affiliations
Florida Institute of Certified Public Accountants
&Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Pubic Accountants&Consultants Tax Division
Page 57 of 69
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 30,2017 and the related notes to the
financial statements which collectively comprise the District's basic financial statements as listed in
the table of contents and have issued our report thereon dated April 17, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements,we considered the District's
internal control over financial reporting(internal control)to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control. Accordingly, we do not express an opinion on the effectiveness of the District's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions,to prevent
or detect and correct misstatements on a timely basis.
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane,Building 55•Fort Myers,FL 33907 •Phone:(239)333-2090 •Fax: (239)333-2097
Page 58 of 69
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, however, noted certain other items that we
reported in our Report to Management dated April 17,2018.
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 Independent Auditor's Report to Management
dated April 17,2018.
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 communication is not suitable for any other purpose.
)I4401:, A.
TUSCAN&COMPANY, P.A.
Fort Myers, Florida
April 17,2018
T IJ CAN icAcccounons
Florida Institute of Certified Public Accountants
& Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 59 of 69
Independent Auditor's Report on Compliance for Each Maior
Program and on Internal Control Over Compliance Required by
the Uniform Guidance
Board of Commissioners
Inimokalee Fire Control District
502 East New Market Road
Immokalee,Florida 34142
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 30,2017. 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 69
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, 2017.
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.
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. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
Page 61 of 69
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.
40440 d44744/ 4?
TUSCAN &COMPANY,P.A.
Fort Myers, Florida
April 17,2018
IMMOKALEE FIRE CONTROL DISTRICT Page 62 of 69
SCHEDULE OF FINDINGS AND QUESTIONED
COSTS -FEDERAL AWARDS
Year ended September 30,2017
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 X No
Significant deficiency(ies)identified? Yes X _ No
Material weakness(es)identified? Yes X None reported
Noncompliance material to fmancial
statements noted? Yes X No
Federal Awards
Internal control over major programs:
Control deficiency(ies)identified? Yes X No
Significant deficiency(ies)identified? Yes X No
Material weakness(es)identified? Yes X None reported
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)? Yes X No
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 Staffmg 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.
Auditee qualified as low-risk auditee? Yes X No
IMMOKALEE FIRE CONTROL DISTRICT Page 63 of 69
SCHEDULE OF FINDINGS AND QUESTIONED
COSTS - FEDERAL AWARDS,CONTINUED
Year ended September 30,2017
Listing of Subrecipients and matching amounts passed-through:
None-not applicable
Section II-Financial Statement Findings
There were no deficiencies, material weaknesses, or instances of noncompliance related to
the financial statements.
Section III-Federal Award Findings and Questioned Costs
There were no audit findings related to Federal Awards required to be reported by 2 CFR,
Section 200.516(a).
Section IV-Status of Federal Prior Year Findings
Prior year finding (2016-06) appears to have been resolved.
Affiliations
T� _'; NFlorida Institute of Certified Public Accountants
& Company, PA American Institute of Certified Public Accountants
Certified
Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 64 of 69
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 30,2017.
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 30,2017.
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
April 17, 2018
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090•Fax: (239)333-2097
�9 Affiliations
TU S CA
Florida Institute of Certified Public Accountants
&Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 65 of 69
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee,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, 2017 and have issued our report
thereon dated April 17,2018.
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
April 17,2018, 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 10.554(1)(i)1., Rules of the Auditor General, requires that we determine
whether or not corrective actions have been taken to address findings and
recommendations made in the preceding annual financial audit report. 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 66 of 69
• 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., Rules of the Auditor General,requires that the name or official
title and legal authority for the primary government and each component unit of the
reporting entity be disclosed in 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, 2017,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 30,2017. 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 April 17, 2018, included herein.
Page 67 of 69
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.
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 69I-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.
Current Year Addendum
During the audit for the year ended September 30,2017,we noted none of the current
year fixed asset additions were assigned permanent tag numbers. We, subsequently,
retested ten (10)current year additions for permanent tag numbers and determined
seven(7)current year additions had been properly tagged. Three of the items were not
properly tagged. We continue to recommend all fixed assets be properly assigned and
marked with identification numbers.
2016-05 District Accounting 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.
Page 68 of 69
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.
Current Year Addendum
On October 1,2017 the District entered into an Interlocal Agreement with North
Collier Fire Control and Rescue District to perform certain management and
administrative services which included the financial accounting function. As a result,the
accounting data for the year ended September 30,2017 was reanalyzed and adjusted
prior to audit and the previous year's comments were addressed and most were
resolved.
CURRENT YEAR COMMENTS:
2017-01 Non-Compliance with Florida Statute Chapter 189.015
During the audit,the District was unable to determine and provide support that the
schedule of the Board of Commissioners meetings was sent to the Collier County Clerk.
We recommend the District ensure compliance with the above Florida Statute and
retain documentation of compliance.
2017-02 Grant Related Internal Control Should be Consistently Maintained
During the audit,we noted a lack of internal controls and oversight over grant
purchases and reporting in the first part of the year ended September 30,2017. This
is consistent with prior year finding 2016-16,SAFER grant reimbursement requests
submitted did not agree to actual expenses incurred. As a result of the prior year
finding, the District established an inter-local agreement with another District to provide
accounting assistance and oversight. With the assistance of the other District,internal
controls over grants have improved and the SAFER reimbursement requests were
subsequently reviewed,revised, and corrected during fiscal year 2017.
Again,prior to the inter-local agreement,the District purchased items,with the intent of
obtaining reimbursement through the Assistance to Firefighters Grant. Some of the
items that were purchased were not approved under the grant agreement resulting in a
Page 69 of 69
denial for reimbursement by the grantor. With the assistance of the other District,the
reimbursement request was subsequently revised and approved for payment by the
grantor. However,subsequent to the year ended September 30,2017 it was
determined that there was a mathematical error in the reimbursement request
submission and the amount requested was incorrect,resulting in an overpayment. Due
to the unapproved purchases and incorrect submissions the District was unable to
maximize the grant. The District is working with the grantor agency on corrective
action which may result in a request for reimbursement by the grantor in an amount of
approximately$5,300.
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.
4adort) °2.41/61 1 •
TUSCAN&COMPANY,P.A.
Fort Myers,Florida
April 17,2018
EXHIBIT
\t,00K4(4
Immokalee Fire Control District
R I I U
E E 502 New Market Road East, Immokalee, FL. 34142
Ave Maria Michael J. Choate, Fire Chief
May 3, 2018
Auditor General's Office
Local Government Audits/342
Claude Pepper Building, Room 401
111 West Madison Street
Tallahassee, FL 32399-1450
The following details the Immokalee Fire Control District's response to the audit
comments (prior and current) for the fiscal year ended 9-30-17:
PRIOR YEAR COMMENTS:
2016-01 Fixed Assets Must Have Permanent Tag Numbers
FYE 16 Comment: During the audit for the fiscal year ended 9-30-16,
eight out of twenty five 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.
Current Year Addendum: During the audit for the year ended 9-30-17, it
was noted that none of the current year fixed asset additions were
assigned permanent tag numbers. We, subsequently, retested 10 current
year additions for permanent tag numbers and determined seven current
year additions had been property tagged. Three of the items were not
properly tagged. We continue to recommend all fixed assets be properly
assigned and marked with identification numbers.
Response:
A Standard Operating Procedure ("SOP")for the receipt and tagging of
fixed assets has been instituted. All fixed assets are now tagged within
thirty days of receipt of the item pursuant to that SOP. All items
purchased in the 9-30-17 fiscal year have now been properly tagged per
Florida Administrative Code 691-73.004. Staff remains committed to
property tagging and tracking the District's fixed assets. The Fire Chief
has identified compliance as a high priority for District staff.
2016-05 District Accounting and Reporting Responsibility Should be
Determined and Assigned
Administration(239)657-2111 Operations(239)657-8587 Fire Prevention(239)597-9227
Fax(239)657-9489
FYE 16 Comment(Summarized): 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.
Current Year Addendum: On October 1, 2017 the district entered into an
Interlocal Agreement ("ILA") with North Collier Fire Control and Rescue
District ("NCFR") to perform certain management and administrative
services which included the financial accounting function. As a result, the
accounting data for the year ended September 30, 2017 was reanalyzed
and adjusted prior to audit and the previous year's comments were
addressed and most were resolved.
Response:
With the implementation of the ILA with NCFR, accounting and financial
reporting responsibilities have been transitioned to their staff, including
payroll, bank reconciliations, and monthly general ledger review and
financial statement preparation. A monthly financial report is prepared for
the Board of Fire Commissioners and included in their Board packets.
Included in this financial report is the financial statement with budget to
actual comparison, bank reconciliations, check registers and a comparison
of current YTD to prior YTD revenue and expenses.
CURRENT YEAR COMMENTS:
2017-01 Non-Compliance with Florida Statute Chapter 189.015: During the
Audit the District was unable to determine and provide support that the
schedule of the Board of Commissioners meetings was sent to the Collier
County Clerk. We recommend the District ensure compliance wit hthe
above Florida Statue and retain documentation of compliance.
Response:
A compliance checklist has been prepared and provided to staff identifying
annual submittal requirements pursuant to Chapter 189.015. The 2017-
2018 schedule of Board of Fire Commission meetings was provided to the
Collier County Clerk on March 13, 2018.
2017-02 Grant Related Internal Control Should be Consistently Maintained:
During the audit, we noted a lack of internal controls and oversight over
grant purchases and reporting in the first part of the year ended
September 30, 2017. This is consistent with prior year finding 2016-16,
Page 2 of 3
SAFER grant reimbursement requests submitted did not agree to actual
expenses incurred. As a result of the prior year finding, the District
established an inter-local agreement with another District to provide
accounting assistance and oversight. With the assistance of the other
District, internal controls over grants have improved and the SAFER
reimbursement requests were subsequently reviewed, revised and
corrected during fiscal year 2017. Again, prior to the inter-local
agreement,the District purchased items, with the intent of obtaining
reimbursement through the Assistance to Firefighters Grant. Some of the
items that were purchased were not approved under the grant agreement
resulting in a denial for reimbursement. With the assistance of the other
District, the reimbursement request was subsequently revised and
approved for payment by the grantor. However subsequent to the year
ended September 30, 2017 it was determined that there was a
mathematical error in the reimbursement request submissions and the
amount requested was incorrect, resulting in an overpayment. Due to the
unapproved purchases and incorrect submissions the District was unable
to maximize the grant. The District is working with the grantor agency on
corrective action which may result in a request for reimbursement by the
grantor in an amount of approximately $5,300.
Response:
Pursuant to the ILA entered into with NCFR, financial and administrative
services are provided, including grant report submission and review for
compliance. Any future grants will be administered, maintained and
reviewed to ensure compliance with the grantors requirements, and that
all requests for reimbursement are submitted accurately.
The District continues to improve financial reporting and compliance functions, and
address any deficiencies in internal controls, policies and procedures. Close
communication with our auditing firm,Tuscan & Co., PA is maintained to ensure all
current and prior year comments are resolved. The Board of Fire Commissioners and
management staff are committed to addressing and resolving all current and prior audit
comments, and avoiding future possible comments. We have engaged qualified
professionals through cooperative efforts with NCFR and maintain our assurance that
future audits will reflect the actions we have taken.
Sincerely,
IMMOKALEE FIRE CONTROL DISTRICT
Page 3 of 3