The URL can be used to link to this page

Agenda 11/13/2012 Item #14B711/13/2012 Item 14.6.7. EXECUTIVE SUMMARY Recommendation that the Collier County Board of County Commissioners (BCC) acting as the Community Redevelopment Agency (CRA) approve the submittal of the attached Rural Business. Enterprise Grant (RBEG) application to U.S. Department of Agriculture (USDA) Rural Development in the amount of $35,000.00 for the completion of a Feasibility Study to evaluate expanding the current Immokalee Business Development Center (IBDC) and approve all necessary budget amendments. OBJECTIVE: To receive approval from the BCC acting as the CRA Board to submit a USDA/Rural Development RBEG application for the completion of a Feasibility Study to evaluate expanding the current Immokalee Business Development Center (IBDC). CONSIDERATIONS: The Immokalee Business Development Center was established on March 9, 2010, under Item 14A by the BCC acting as the CRA as an economic development too] to accelerate the growth and success of entrepreneurial enterprises through an array of business support resources and services. The primary goal of the IBDC is to assist and educate entrepreneurs, enabling them to run successful, self - sustaining businesses which create long term economic growth and job creation in Immokalee. The CRA forecasts that as the local economy strengthens recognized problems of unemployment, low wages and narrow industry opportunities will lessen. As the program grows, there is a need to provide different services to accommodate the needs of the community. The Study will help determine whether it is feasible to build a new stricture with lease space, offices, staging, parking, food production facility, training, and supportive services. Due to the size of the grant application, the County's most recent three (3) years audit is not included in the grant application as an attachment, but was provided under separate cover to the Board of County Commissioners, as well as members of the County administration. Members of the Public may view this document at the Board's Minutes and Records office. FISCAL IMPACT: The total cost for the implementation of the grant in Fund 715 will be $35,000.00. If the grant is awarded, a budget amendment will be brought to the BCC for approval. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney and is legally sufficient for Board approval, which requires majority support. The Board will have the opportunity to accept or reject the funds if approved. -JBW GROWTH MANAGEMENT IMPACT: The USDA /Rural Development RBEG grant, coupled with the IBDC furthers the programs and projects within the budgetary and policy guidance and directives of the CRA and the BCC in furtherance of Policy 4.2 of the Future Land Use Element of the Growth Management Plan which reads as follows: "The Immokalee Area Master Plan addresses conservation, future land use, population, recreation, transportation, housing, and the local economy. Major purposes of the Master Plan are coordination of land uses and transportation planning, redevelopment or renewal of blighted areas and the promotion of economic development." RECOMMENDATION: Recommendation that the Collier County Board of County Commissioners (BCC) acting as the Community Redevelopment Agency (CRA) approve the submittal of the attached Rural Business Enterprise Grant (RBEG) application to US Department of Agriculture (USDA) Rural Development in the amount of $35,000.00 to complete a fFeasibility Study to evaluate expanding the current business development center located at 1320 N 15°i Street, Immokalee, FL and authorize the CRA Chairman to sign all documents required for application submittal. PREPARED BY: Marie Capita, Center Manager of the IBDC Packet Page -1319- 11/13/2012 Item 14.13.7. Attachment: 1) USDA/Rural Development RBEG grant application. Packet Page -1320- 11/13/2012 Item 14.13.7. COLLIER COUNTY Board of County Commissioners Item Number: 14.B.7. Item Summary: Recommendation that the Collier County Board of County Commissioners (BCC) acting as the Community Redevelopment Agency (CRA) approve the submittal of the attached Rural Business Enterprise Grant (RBEG) application to U.S. Department of Agriculture (USDA) Rural Development in the amount of $35,000 for the completion of a Feasibility Study to evaluate expanding the current Immokalee Business Development Center (IBDC) and approve all necessary budget amendments. (This item to be heard after Items 14134, 14135 and 14136) Meeting Date: 11/13/2012 Prepared By Name: CapitaMarie Title: VALUE MISSING 10/26/2012 3:20:39 PM Approved By Name: Markiewiczioanne Title: Manager - Purchasing Acquisition,Purchasing & Gene Date: 10/26/2012 3:50:30 PM Name: PhillippiPenny Title: Executive Director, Immokalee CRA, Date: 10/29/2012 1:46:20 PM Name: StanleyTherese Title: Management /Budget Analyst, Senior,Office of Manage Date: 10/29/2012 2:54:26 PM Name: WhiteJennifer Title: Assistant County Attomey,County Attorney Date: 10/30/2012 2:49:56 PM Name: KlatzkowJeff Title: County Attorney Packet Page -1321- Date: 10/31/2012 8:33:10 AM Name: FinnEd Title: Senior Budget Analyst, OMB Date: 11/1/2012 4:02:19 PM Name: OchsLeo Title: County Manager Date: 11/4/2012 11:36:38 AM Packet Page -1322- 11/13/2012 Item 14.6.7. 11/13/2012 Item 14.13.7. TABLE OF CONTENT Section 1 .. .........................a....• a..... a.. as* ..a see .. ease ... Grant Application Section 2 ............ ► .. ............::....... ...:.....:.....:... Current inanda . or Audit Section3 .........................,.... ,.......,.....................a Scope of Work Section 4 ........................... ........a...................... opinion from Attorney Section S ' .............................. a.............................. Certifications Section6 ............................................................... Letters of Support Section7 ......... ,•..►... u.. age see .... ..•.. Masses ....c►.►...►... eon a. Request for Environmental Section V ea. ar sea .. a.. r!. .a►.... *as see .......s..►,...e.. Letters of Support from Community Section 9. ......................... .........................,..es. Resumes Section 10 .................................. Quotes from Vendors Section11.......►.► ................. ..........u•u.................. Clearance Letter Packet Page - 1323 - 11/13/2012 Item 14.6.7. Section12 ................ see ... ................t........ Rao* .. Cha rrnan Letter, APPLICATION FOR 11/13/2012 Item 14.6.7. rf=Uf KAL ASSISTANCE 2. DATE SUBMITTED Applicant Identifier 1. TYPE OF SUBMISSION: 3. DATE RECEIVED BY STATE State Application Identifier Application Pre - application 0 Construction C! Construction 4. DATE RECEIVED BY FEDERAL AGENCY Federal Identifier Non - Construction Non - Construction 6. APPLICANT INFORMATION Legal Name: Organizational Unit: COLLIER COUNTY COMMUNITY REDEVELOPMENT AGENCY- IMMOKALEE Department: COMMUNITY REDEVELOPMENT AGENCY- IMMOKALEE Organizational DUNS: 076997790 Division: COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Address: Name and telephone number of person to be contacted on matters Street: 1320 N 15TH STREET, STE 2 involving this application (give area code) MRS First Name: PENNY II�� City: — Middle MiddleaaName County: PfTLUPmI gCOLLIER FLORIDA Zip Code Suffix: 34142 UNry ITED STATES Emall. PennyPhillippi @Colliergov.net 6. EMPLOYER IDENTIFICATION NUMBER (EIN): Phone Number (give area code) Fax Number (give area code) luf— EMKOE® 239- 867 -4121 239 -252 -6725 8. TYPE OF APPLICATION: 7. TYPE OF APPLICANT: (See back of form for Application Types) V New Irl Continuation Revision B If Revision, enter appropriate letter(s) in box(es) (See back of form for description of letters.) O ❑ Other (specify) Other (specify) 9. NAME OF FEDERAL AGENCY: USDA, RURAL DEVELOPMENT 10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: 11. DESCRIPTIVE TITLE OF APPLICANT'S PROJECT: F,]E 9] IMMOKALEE BUSINESS DEVELOPMENT CENTER EXPANSION TITLE (Name of Program : RURAL BUSINESS ENTERPRISE GRANT FEASIBILITY ANALYSIS 12, AREAS AFFECTED BY PROJECT (Cities, Counties, States, etc.): IMMOKALEE, FLORIDA 13. PROPOSED PROJECT 14. CONGRESSIONAL DISTRICTS OF: Start Date: JANUARY 1, 2013 Ending Date: JULY 31, 2013 a. Applicant b. Project 25 5 15. ESTIMATED FUNDING: 16. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE RDER 112.172 PROCESS? a. Federal 35,000' a. Yes. THIS PREAPPLICATION /APPLICATION WAS MADE AVAILABLE TO THE STATE EXECUTIVE ORDER 12372 b. Applicant 0 PROCESS FOR REVIEW ON DATE: c. State $ U0 0, b No. 'I PROGRAM IS NOT COVERED BY E. 0. 12372 rl OR PROGRAM HAS NOT BEEN SELECTED BY STATE d. Local p e. Other f. Program Income $ 0 . 17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? 0 Yes If "Yes" attach an explanation. 191 No g. TOTAL $ 35,000. 18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS APPLICATIONIPREAPPLICATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED. a" Authorized R resentative a6fix First Name IDONNA Middle Name Last Name FIALA Suffix b. Title CHAIRMAN OF COLLIER COUNTY REDEVELOPMENT AGENCY BOARD . Telephone Number (give area code) 239- 252 -8097 r. Signature of Authorized Representative . Date Signed Pr Au ..e MCC— 11—ki- �ranaaro corm 424 (Nev.9 -2003) Authorized far�,sr LJ�aoireduction > tO k= & 10081 Sltd bribed by OMB Circular A -102 DWIGHT S. BROCK, Clem h By; _ Packet Page - 13263 -Q Vq ., •9ORM11,1111int County Attorney e 11/13/2012 Item 14.6.7. INSTRUCTIONS FOR THE SF -424 'ublic reporting burden for this collection of information is estimated to average 45 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (034 8-0043), Washington, DC 20503. PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY. This is a standard form used by applicants as a required face sheet for pre - applications and applications submitted for Federal assistance. It will be used by Federal agencies to obtain applicant certification that States which have established a review and comment procedure in response to Executive Order 12372 and have selected the program to be included in their process, have been given an opportunity to review the applicant's submission. Item: Entry: Item: Entry: 1. Select Type of Submission. 11. Enter a brief descriptive title of the project. if more than one program is involved, you should append an explanation on a separate sheet_ If appropriate (e.g., construction or real property projects), attach a map showing project location. For preapplications, use a separate sheet to provide a summary description of this project. 2. Date application submitted to Federal agency (or State if applicable) 12. List only the largest political entities affected (e.g., State, and applicant's control number (if applicable). counties, cities). 3. State use only (if applicable). 13 Enter the proposed start date and end date of the project. 4. Enter Date Received by Federal Agency 14. List the applicant's Congressional District and any District(s) Federal identifier number: If this application is a continuation or affected by the program or project revision to an existing award, enter the present Federal Identifier number. If for a new project, leave blank. 5. Enter legal name of applicant, name of primary organizational unit 15 Amount requested or to be contributed during the first (including division, if applicable), which will undertake the funding/budget period by each contributor. Value of in kind assistance activity, enter the organization's DUNS number contributions should be included on appropriate lines as (received from Dun and Bradstreet), enter the complete address of applicable. If the action will result in a dollar change to an the applicant (including country), and name, telephone number, e- existing award, Indicate only the amount of the change. For mail and fax of the person to contact on matters related to this decreases, enclose the amounts in parentheses. If both basic application. and supplemental amounts are included, show breakdown on an attached sheet. For multiple program funding, use totals and show breakdown using same categories as Item 15. 6. Enter Employer Identification Number (EIN) as assigned by the 16. Applicants should contact the State Single Point of Contact Internal Revenue Service. (SPOC) for Federal Executive Order 12372 to determine whether the application is subject to the State intergovernmental review process. 7. Select the appropriate letter in 17. This question applies to the applicant organization, not the the space provided. 1. State Controlled person who signs as the authorized representative. Categories A. State Institution of Higher of debt include delinquent audit disallowances, loans and B. County Learning taxes. C. Municipal J. Private University D. Township K. Indian Tribe E. Interstate L. Individual F. Intermunicipal M. Profit Organization G. Special District N. Other (Specify) H. Independent School O. Not for Profit District Or anization 8. Select the type from the following list 18 To be signed by the authorized representative of the applicant. • "New/' means a new assistance award. A copy of the governing body's authorization for you to sign • "Continuation" means an extension for an additional this application as official representative must be on file in the funding/budget period for a project with a projected completion applicant's office. (Certain Federal agencies may require that date. this authorization be submitted as part of the application.) • "Revision' means any change in the Federal Government's financial obligation or contingent liability from an existing obligation. If a revision enter the appropriate letter: A. Increase Award B. Decrease Award C. Increase Duration D. Decrease Duration 9. Name of Federal agency from which assistance is being requested with this application. 10. Use the Catalog of Federal Domestic Assistance number and title of the program under which assistance is requested. SF -424 (Rev. 7 -97) Back Packet Page -1327- W E L L a O V M L �F+ G O U G O Z I G E L G W in 0 u m N n u n u 6 v n S S 1 I 11/13/2012 Item 14.B.7. 0 0 O O O M O O O M r6 ... M M L d v M m' v N m m a d) LL E< c o` 3 o Z Z E» � v d9 CD 0 O p M M _ d ^ (u Q Li GH s 6g m a�i ^ W LL C O LL 0 Z N I � 69 Eli m N W Lo � t7 W A of 0 vq Vi v � C a N Qf di yy� LL 40 4) � 6<E� t� o Z m O aa) ICU E N 6e UD E» Q C) o O o p o 0 o a O c o O EC 0 0 _5: � J N n " 5 a`o m LL Q 0 LU � U- E,9 L) E9 m � I :1 r CV m .6 t n u n u 6 v n S S 1 I 11/13/2012 Item 14.B.7. Packet Page -1328- N N Cp V Q' � 3? � O qm No a m a v m ci O m O) awl 6) a m C O w 0 0 m CL O O O O O O M M L M o � v d9 Q s C O A of 0 a N 6e E» C) o O o p o 0 o a O c o O Er; M O Li E,9 E9 � I L m co 0 vai ici � � v c o ?> m N y to N (D U m o m O O E E (Np C m N E N I N. V U 2 �_ U N U p m n N °'a O U y c a�i = a c c �' ;o E 03 a � F su w U U O F— _= t-- rn a O co a ci o Eu w d> c o d Packet Page -1328- N N Cp V Q' � 3? � O qm No a m a v m ci O m O) awl 6) a m C O w 0 0 m CL 0�© Z3, r v ©_® MN -4'10 d z to a ti M O_© mmm W a1 7 a C N amm ME N rs} eH O _ d O c w O O O m m co E >- M M 0 0 — d E � m m W C CD lly O 0 t- v�Nlul 11/1; 3/2C N N a3 L U �i C N N L 107 t LL U = U o m v � CO N 12 Item 14. Y a7 E N N N M O 4 Q w `m V �U 04 CO '72 LL o y0 'a .n U N a) a` i r 1, O l N a) m (L w NN a) a m N D C O 15 W N 0 m d w m LL _ d O c w m m co E N V1 m W c m � — d E � m W C CD lly O l6 LU O O Z 4 F ;r L Packet Page -1329- 3/2C N N a3 L U �i C N N L 107 t LL U = U o m v � CO N 12 Item 14. Y a7 E N N N M O 4 Q w `m V �U 04 CO '72 LL o y0 'a .n U N a) a` i r 1, O l N a) m (L w NN a) a m N D C O 15 W N 0 m d CA 4) L 4. C 0 3 N c mm C C •C C M o c c a E N v t r- 044 c m a a ws ma U d �a oa N a) a3 a) �o C C m m L � `a N a c ai ns o � U m N 4M c �a c ns O a) >jE 0 m E o ir cD E 0 t a Cx C a � U C N U N � C 7 N C `md n I/` O 1 a c 0 L CD 0 N ri Co a) mCL > C � ,o o E a Q) —o M E.G _ `o N C N N 'C U O Co U E a) rn C = O � c o5; U wa o � U @ z .' o E c o N U •O 7 'C m m c n o°ii ns c C � T -O c = O a) 'D 'D 0 ID �- C L... c 0-0 m C J O E m j 0 4) D L p a) y .0 0, ate, (n0 E C c c 0 °'aE a� -ii = C O C 0 o O N W a .' M >, C C y C f a E am -Z E v, L D) '(p C D (n E m Nod M c E L G C = O . Co M " d '++ d M C L M a) U O) W F- a,�3�moa M 'D •D 'o 7 4) tC6 E C 3 U- u) Co m- N O 7 E C 0 E CL C U U D 0 7 0 G .�° N 00 N o :5 C c C a M 'o c Co D)0-a o ccEc —o° wD- a) C N N M 0 C 4%"3' C O 0 0 0 0� C E O � � D 11/13/2012 Item 14.13.7. U •MD M CO O gyp, to pCj p w0 N O O O N C L y a c c E= (n (n c D �- m E 0) c l- c C :01 (a �j O) "-' Vj O L O (a E M LL c a D) C N w O 4Mj N C O O) ?� E y�cm�ar MME V-0 o M c M� nQ a a) c `n 4)a rn� $ N C p t fC6 4) L •� C-Y J' In O O C 4) m LL ,� m E c m. M M M 'o a Ca 0 c E U- 0 .O E v E ° o >, C Mo Ec o 0 ` E U x LL E w a � �o p O E O c E ° O � N c Q C to Co O '� 3= U .- > V 4) C C O +-' L C = 7 C 0 M `3 D) L O O G M O y 0 O U '- X.Ec MrE -a _ 1 ° a"i Ei - a°i � EE °a) 4) N' Z Co M 4) C Q p to N O Cn O(a to L 0 N C p 7 4? N C O tq G E C G G c U N N «- a o� o 0 o E vc o c.0 M o � M'c �� co E E O C) C L () (a •O r E o c aC 0 :3 cm ° �o o �� c m °' N cnvc o 4Ni v E C UMEm o ° ai oc - -4� _' c tM E Ew >cm �caw °E m womE. 0 o E co M m 0— 0 0 M D• L C) c`a ccn M (a CO y M� O L E U -o -O '� 0 cn m °'wc a' a) c.`a)c C o.. E U� M 4) tfi (n a) O p o O) M D O Q M M C D) 0 CD C .';"..� N� .-. C m (j rn 0. CL = ..•. O C C U C E 0 E »L.. IT 3 C --o M M —'D O .+ C j N L M ..LO Q 'C O y C 0 y C@ 4. D) cV o E c o O r- a) M y w 0 0 '� �- �c � o 4) � �� L 'C L o Cn�0.. a 3 Ea)UO�a� 3 c° °� LL a) 0 cc ��c L) a) d •` () m C c° E m N 0 I u W m C M C c 'o m M II cW0 coE � c �ccc� w � � mEEwo wna)ca) camNEa? in o yoov,N io'' ��caa)caE �Ecmc>i 0 0 V U L v 4Y m 4) C N a M 4i '} E c O c •G c c C U C O C a C C G G C (`6 4) 0 4) C E L" 4) tL M Cu LL E C J C Z ca a) 2 J D ..! D) .L cn o J r- (n Co M tM 0 d 4) C- C Q1 >+ 4) 4) U C > 1 0 E 3yo wm�� .m U c 3 c E om N p c d C �oc? 6 Y ° M y) v M a DO p Y . E Y 7 0 0 p LL 0 M N v O C 4 O O O n .0 0 a •oa - E - cG N��flroaa ca)ccc.0 iiL)0 -ate �c LL aa0 ct— D vM C n a m a) M ':3 N 4) (a N in •06 'N G (` m m c m D) -EE >+'D L 'n y U d E a- C r. O C 0 C`0 m Q C D *' O a) C C a) a) ` O :� CL= 0 D M O DS 4) 4) (a U C U C' L U O C C O to C C m ,C i D O C C C (Ea (Ua C C• O 7 E �' ��.0c U) o 'o -a o o)) E `D) o M E °�-' a) a o Cc c`CD 3 m� $C1 L a)-D c .« o E G 0. `o) 0 E o E c M M D M c D o ac 0 C° U= o o E c o 0 0 c�m�c �a oY a)c Co CY) 0 0) M m O DSO c E C O 0 LL a) m O N O C Q t +. O p CO N N U C N N _V O y , y U C) -5 �a `3 DS U E m CL" C a a C G O O C `- M 4) C N Eo acirdpQ Co r- MN u, °o CcL +J d Co C w (1== O O D D M O O C d N �.. E O C 4) ` O O o E �. E 4) 0 to 'm CL 0 Oc 0— o c r oL E CMa c pc) c rnv E c u°) 0-- 4C) o Co (D) 6 m w '� u` )) c 'E E 0 .� 'm 0 ° c c _ -O a L O C C d N 'C C tf M M n DS o a) O N O) O 4) O c o` �� m m �� o° c ° m Q.> 3 y N C} C 'j C N C (� 4) 'C O O 0 O C O O D U Co N 'OD @ L U o C m L U m O U 13 o U E p > M- '6 y M d p 'D .-+ O C.0 .-. c E00) 0006(5 Mom Q �c°'i�c L)Z 0av) R `' `o >, E C '- O N C � C Q c c E o U O 0Y .. G ro 0= 3 0.0 M a) U = M y p � d C Co C W ;� COJ) N O ZM C >, N N >` -0 4l ^ `' N a' U `- 7 0 'C � 4l D fl O to C O 0) M(nnw .0 wMU)Mm �- ESa.oE Packet Page -1330- w .c E (n E0- o)E M �m °4>io o �O C ° ID O O• C = E Ea)_c0 Er a) Co c d 0 O ocna-D2 Co M CL L 4) 0 ° C w 75 0 n o c ro d L f9 di Co oma a O L) M .2- 0 � �. C E O c M N C c.Q�aai C L N N C !n1 CO O C (a 'r- 0 (a ff o U M a E O Cu nn.L�cE0) Cr pa) M n L C1 .G O s Ur N G 0 0 v r N 4f J C — 0 c 3 0 a)EM CD �c w m a o ° CL CS LL O.•C m ° Y 0 d C C ca M a= va)� C w o r- :3 E U a? a U 0 o CL > C_ O Co °) c y4)C. G - d U o Cl) (a Co W r w C C cE�, M C uO. U 'R RN 4- > m � U �U �m LL N4 a a d .n y d a r_ a M O CO d v W N m 0 W N a 0 a d t C T: C U 0 L E O 0 p O N - O '•' c E X y O O C `V, c N uNi v cU- o aa))� w Q� C �'m E C w tn— Ca 0 O mt c U) W 3M CO E ca) m `~o m L y d LT p O •0 .O O O .0 C 01- "O C C t. N V Q. w 'a a) a) C O w- O C �= 0 0 C fA aS "' N X E E A O ° a) m d N +_� N� CO a`)a� ~da E �� o 0M0 a) as (0 ) m d a) CO c c v C° c ui a `� oL w E U. ° v' d C 0) �p a) >, 0) d 'E u� a �O o o y d to + '> a v R N _V f6 N Ecda) :3Z ++ U C ,Fz O` 0 0 N o d C v U 0— O (a O dC C LL � a) c .n - + m M c a - C a O "- '?� 0 d a) 0 U W U co U) :II A N 'E6 N .0 C c�9 O p, A �- a) .,t.., x 0 l6 C C C 0 d C� E O t � d C V O (D C C x 0 0 N �., C � d M C C a) E c o'� 3 c E 0 '0 � v) a C CO o o o m ca .r ca 0) on °) ° c -6 o Lill c rn °' M »° � a) @ m �'� - T ) :3 — a)CO rn O n O µ�m - aL) ° N ° d N v oc va) ca Od - w a Q 0 0 � m - EF � N IQ0-o °c `a a)0 Cu moa0� Ccro o M LL 0" c� Cu c-0 u)Y �E LL t: c0 O t=ip •n n? y N W `p 1 LL w M i 0 a) C CN i3 a ° o o E d d �- a) a) M d 0 ti d d fa G. C 0.. E> O .1 M ca ca 0 0 U 0 "- to C N . M N C C 6 fa J L) J L C C ¢ ° 'C v V ca .CD r - °) �, c c 0 °: a M E c E c a) c °) '0 0) o (n a) c m `w c E o CD c m o .. U m p• U} U 0- tOn (n a3 U .a 'D O C C .D Q) C C Y L .O ° E m c 3 G 0 7 C U O >' w w � A .0 U 'd C F- a3 �% to v r- Z) y0 cn d as a) CL as 0. as 0 0 U N (�D N a C c C II ° M o W N + N C a3 C O N C Vl C M A Ca w° m E a d o C y a) O LO d a) C ;+ N ° — O w . 0 ° � E O E> U; o' = U? u ° C 1 o -J d o y c O C� � .0 C c CO a) c 0 U d U p Z t C c O O ° d O 3 00 N 0 CO m O 0 O a 0 U o 0 M M 0 W N wU O tE6 C C .'C- O .A �5 O t9 �O E U O C N d O `- ' L O 0 a5 U �; d O° 0 . a) E O �0 E Vj C C C C C h C 7 C O= N a) E a3 O LO M W y- W Lu cn LU c°n Lu a) a) a) C C O C C .Q IIS C __ C C w C M C (� O ° U E y E � al E d m(D E a) E W d I d n Lu LLI 1 0 O LLJ O CO C O O O -6 0 O O r p) O r r y C_ G C d C C y ti -j N Packet Page -1331- 11/13/2012 Item 14.B.7. N N CD 4 ai m U go qm LL �O T a a1 a 0 a o C d m a m N C O a W 5 O N LL ASSURANCES - NON- CONSTRUCTION PROGRAMS 11/13/2012 Item 14.6.7. OMB Approval No. 0348 -0040 Public reporting burden for this collection of information is estimated to average 15 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (0348 - 0040), Washington, DC 20503. !PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY. NOTE: Certain of these assurances may not be applicable to your project or program. if you have questions, please contact the awarding agency. Further, certain Federal awarding agencies may require applicants to certify to additional assurances. If such Is the case, you will be notified. As the duly authorized representative of the applicant, I certify that the applicant: 1. Has the legal authority to apply for Federal assistance and the institutional, managerial and financial capability (including funds sufficient to pay the non - Federal share of project cost) to ensure proper planning, management and completion of the project described in this application. Will give the awarding agency, the Comptroller General of the United States and, if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the award; and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives. 3. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain. 4. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. 5. Will comply with the Intergovernmental Personnel Act of 7. 1970 (42 U.S.C. § §4728 -4763) relating to prescribed standards for merit systems for programs funded under one of the 19 statutes or regulations specified In Appendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R. 900, Subpart F). 6. Will comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88 -352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. § §1681- 1683, and 1685 - 1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Previous Edition Usable Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. § §6101- 6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92 -255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91 -616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) § §523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. § §290 dd -3 and 290 ee 3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title Vill of the Civil Rights Act of 1968 (42 U.S.G. § §3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and, 0) the requirements of any other nondiscrimination statute(s) which may apply to the application. Will comply, or has already complied, with the requirements of Titles Ii and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91 -646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally- assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. 8. Will comply, as applicable, with provisions of the Hatch Act (5 U.S.C. § §1501 -1508 and 7324 -7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds. Authorized for Local Reproduction Packet Page -1332- Standard Form 4248 (Rev. 7 -97) Prescribed by OMB Circular A -102 9. Will comply, as applicable, with the provisions of the Davis - Bacon Act (40 U.S.C. § §276a to 276a -7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. § §327- 333), regarding labor standards for federally- assisted construction subagreements. 10. Will comply, if applicable, with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93 -234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more. 11. Will comply with environmental standards which may be prescribed pursuant to the following: (a) Institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91 -190) and Executive Order (EO) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. § §1451 et seq.); (f) conformity of Federal actions to State (Clean Air) Implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. § §7401 et seq.); (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93 -523); and, (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93- 205). f 5,S': DWIGHT E. BROCK, Cle& gyp. SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL 11/13/2012 Item 14.6.7. 12. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. § §1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system. 13. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.G. § §469a -1 et seq.). 14. Will comply with P.L. 93 -348 regarding the protection of human subjects involved in research, development, and related activities supported by this award of assistance. 15. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89 -544, as amended, 7 U.S.C. § §2131 et seq.) pertaining to the care, handling, and treatment of warm blooded animals held for research, teaching, or other activities supported by this award of assistance. 16. Will comply with the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. § §4801 et seq.) which prohibits the use of lead -based paint in construction or rehabilitation of residence structures. 17. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No. A -133, "Audits of States, Local Governments, and Non - Profit Organizations." 18. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations, and policies governing this program. Istant County attorney APPLICANT ORGANIZATION DATE SUBMITTED Standard Form 4248 (Rev. 7 -97) Back Packet Page -1333- 11/13/2012 Item 14.13.7. Scone of Work Rural Business Enterprise Grant Application Collier County Community Redevelopment Agency, Immokalee The Collier County Community Redevelopment Agency, Immokalee is applying for a Rural Business Enterprise Grant (RBEG) from Rural Development (hereafter referred to as "grantor "), an Agency of the USDA. The following Scope of work will be used to measure the performance of the Collier County Community Redevelopment Agency, Immokalee (hereafter referred to as "grantee "). 1) The specific purposes for which grant funds will be utilized: The Immokalee Business Development Center (IBDC) addresses the general problem of a weak economic and business climate in Immokalee, and some of the barriers to entry for new businesses. Economic and social conditions are addressed and overcome through a combination of technical assistance, education, training, and business guidance. The IBDC promotes business growth, job creation, proper working environment and economic growth and stimulus for the Immokalee Community. The IBDC operates under the auspice of the Immokalee Community Redevelopment Agency (CRA). The grant funds will be used to pay for the completion of a Feasibility Study to determine the feasibility of expanding the current business development center located at 1320 N 15`x' Street, Ste. 2, Immokalee, Florida and the implementation of a food production program within the center, to assist small and emerging businesses, such as Vecona, Inc., Edwin's Rollin Bar -Q, and Ande's Walking Fruits within Immokalee and Eastern Collier County. The use of finds are in line with RD Instruction 1942 -G, §1942.304, which states that RBEG funds can be used for projects such as technical assistance. The regulation further defines technical assistance as "A function performed for the benefit of a private business enterprise ...., such as market research, product and/or service improvement, feasibility study, etc." The IBDC is an existing small business incubator working under the Immokalee Community Redevelopment Agency (CRA). Currently we are subleasing approximately 1,070.5 sq. feet of space from the CRA's 3,938 sq. feet office building and want to determine the viability of expanding by building a larger structure. The study will help us determine whether it is feasible or needed to build a new structure with space to lease, offices, staging, parking, food production facility, training, and supportive services. The expansion will add a new program to the incubator by providing a facility to allow small local producers to turn their products into "Value- added" agriculture. Our goal is to educate local growers to increase the economic value and consumer appeal of the raw farm products and marketing it more directly to the public. As per § 1942.302 of RD Instruction 1942 -G, here the "grant program will be used to support the development of small and emerging private business enterprises in rural areas." Furthermore, the study will also help us determine if the current facility is adequate to meet the current needs of the community and if building a new structure is not the best option at this time. 2) Timeframes or dates by which action surrounding the use of funds will be accomplished. Based on the timelines provided in the different quotes, the grantee anticipates having all funds used within 6 months after notification of grant funding. Packet Page -1336- 11/13/2012 Item 14.13.7. 3) Who will be carrying out the purpose for which the grant is made? The 113DC has obtained three (3) quotes from vendors who conducts Feasibility Studies. The quotes are herein submitted with the grant application. Upon being award the funds, the IBDC will adhere to the Federal Procurement requirements in selecting a vendor from the quotes that were provided. The IBDC. is a Collier County entity. The vendor selected will have no affiliation with the IBDC, no connection to Collier County or the type of industry which we service. 4) How the grant purposes will be accomplished. The grant purpose will be accomplished by selecting a local public business school to prepare a feasibility study to determine whether it is feasible to expand our current facility, build a new building, or should we make no changes to the current program. S) Documentation regarding the availability of matching funds The Collier County Community Redevelopment Agency - Immokalee will contribute $0 towards the preparation of an Incubator Feasibility Analysis for the Immokalee Business Development Center. b) Project Budget The Collier County CRA ( Immokalee) has committed long term support of the IBDC and will strive to ensure that the IBDC builds towards becoming economically self - sufficient and has developed a long term plan. The plan includes securing a portfolio of grants (EDA, CDBG, and RBEG) to build a structure that will be used to house the IBDC. and a regional food production facility. The structure is expected to have adequate space to be leased out to potential businesses. The leasing of the spaces, the fees charge for the hourly use of the food production facility and the fees charged for the workshops /training will allow the IBDC to structure a methodology to procure revenues that will provide a path for sustainability. 7) Additional information to justify the need for the project: a. Information which will establish /identify the need for the Immokalee Business Development Center Feasibility The IBDC is a program that is currently grant funded and as a result, funds are very limited. A feasibility study will help us determine whether this project warrants us spending these Iimited funds. Immokalee is an agricultural community that is being affected by the decline in agriculture. The decline in agriculture within the Southwest Florida region is due in part to external threats, such as, foreign competition, diseases in crops, land development, government regulations, and changes in climate. As agriculture decreases, this will create a significant increase in unemployment unless the people are retrained for something else. The spirit of entrepreneurship is certainly present in Immokalee and is evidenced by the numerous restaurants, grocery stores, and franchises- such as Burger King, McDonalds, and Subways. The 113DC helps with the enhancement of the entrepreneurial skills in these individuals. 2 Packet Page -1337- 11/13/2012 Item 14.13.7. Furthermore, there are 2,801 individuals currently enrolled in Immokalee in the Women, Infant, and Children Program (WIC). This is 27% of the total enrollment for the Collier County WIC program. Immokalee WIC program has 2,171 clients on Medicaid, 1,323 clients on Food Stamps, and 49 clients on Temporary Cash Assistant program (TCA). Individuals on Federal Programs can be trained in entrepreneurship or the new businesses being created or expanded can employ some of these individuals, thus alleviating some of the government's financial burden. It is the intent of the 113DC to address these problems through the implementation of the business development center where environmental and social conditions can be addressed and overcome through a combination of support, education, and business guidance and assistance. The IBDC will promote business growth, job creation, proper working environment and economic growth and stimulus for the Immokalee community. The Collier County Community Redevelopment Agency, Immokalee is located in Collier County. Economic statistics are as follows: • Unemployment rates are based on Florida Workforce Development Information • Median Household Income is based on 2010 Census • Population is based on 2010 Census Immokalee is designated as an Enterprise Zone (EZone), (See Attached). Immokalee is a rural, economically depressed area that is starting to realize some gradual economic growth, but stilt lacking stable, employment opportunities that pay a living wage. One of the main barriers to the start -up and expansion of business enterprises in Immokalee is the lack of a full time known resource conveniently located in the enterprise zone to assist start -up and expansion of existing businesses. The IBDC addresses the needs for that permanent resource in Immokalee. b. Experience in Economic Development. Collier County Community Redevelopment Agency, Immokalee has 12 years of successful experience in economic development and assisting small rural businesses. This is evidence by the successful implementation of the Commercial Fagade Grant, which since its inception in October of 2008, has helped 17 local businesses in Immokalee by providing them with financial incentives which helps increase consumer traffic by making their store fronts more attractive. The CRA also facilitates direct procedural and technical assistance for the State Enterprise Zone (EZDA) Program. As a direct result of this program, during 2011, seventy -seven (77) new jobs were created and $45,649.82 in Tax Incentives was awarded to businesses with the EZone. A Collateral Brochure was developed to inform potential businesses about Federal, State, and County, and CRA incentives available to a business considering Immokalee as a potential site. AIso, on September 2011, with the assistance of CRA staff, the Board of County Commissioners approved. a Resolution to petition Governor Scott to Packet Page -1338- Immokalee Collier County State of Florida US May 2010 Unemployment Rate N/A 8.8 8.2 9.6 Median Household Income (2010 $23,897 $58,106 $47,661 $51,914 2010 Census Population 24,154 328,134 18,801,310 308,745,538 • Unemployment rates are based on Florida Workforce Development Information • Median Household Income is based on 2010 Census • Population is based on 2010 Census Immokalee is designated as an Enterprise Zone (EZone), (See Attached). Immokalee is a rural, economically depressed area that is starting to realize some gradual economic growth, but stilt lacking stable, employment opportunities that pay a living wage. One of the main barriers to the start -up and expansion of business enterprises in Immokalee is the lack of a full time known resource conveniently located in the enterprise zone to assist start -up and expansion of existing businesses. The IBDC addresses the needs for that permanent resource in Immokalee. b. Experience in Economic Development. Collier County Community Redevelopment Agency, Immokalee has 12 years of successful experience in economic development and assisting small rural businesses. This is evidence by the successful implementation of the Commercial Fagade Grant, which since its inception in October of 2008, has helped 17 local businesses in Immokalee by providing them with financial incentives which helps increase consumer traffic by making their store fronts more attractive. The CRA also facilitates direct procedural and technical assistance for the State Enterprise Zone (EZDA) Program. As a direct result of this program, during 2011, seventy -seven (77) new jobs were created and $45,649.82 in Tax Incentives was awarded to businesses with the EZone. A Collateral Brochure was developed to inform potential businesses about Federal, State, and County, and CRA incentives available to a business considering Immokalee as a potential site. AIso, on September 2011, with the assistance of CRA staff, the Board of County Commissioners approved. a Resolution to petition Governor Scott to Packet Page -1338- 11/13/2012 Item 14.6.7. extend the Rural Area of Critical Economic Concern (RACEC) designation awarded to the Florida Heartland Regional Economic Development Initiative, Inc. (FHREDI) Region for another 5 -years and to keep the Community of Immokalee within the South Central RACEC designation. This Iead to a $2 million appropriation for the establishment of the Rural Economic Development Catalyst Project. Another example of the CRA's experience in Economic Development is the creation of the IBDC. With funding from CDBG, the center opened its doors on March of 2011. During this brief time, the IBDC has created and /or expanded ten new businesses in Immokalee, documented the creation of 5 new, permanent jobs, graduated three classes from its Entrepreneur School, and has trained more than 140 individuals in businesses related workshops. See attached Letters of support from local elected officials explaining the applicant's experience in economic development. c. Job Creation and Retention For the 113DC to be able to train entrepreneurs, we must also be involved in creating jobs. With the decline of agriculture in the Southwest Florida Region, the need in Immokalee is jobs that will not be affected by changes in agriculture. The quickest and most economical way to create jobs is to train existing businesses on how to expand. The expansion will increase businesses' market base, whereby creating a need for more employees. The IBDC will create approximately 10 jobs as a result of this project. This is evidenced by the attached letters from the small and emerging businesses that will be assisted. Also, we want to link our trainings to the related areas that will provide the people with the skills needed to procure jobs. For example, with the Food Program, we will provide workshops on food certification. With this certification, an individual can seek employment in nearby restaurants and food related industries. Small Business Development Small business development is currently occurring and this is evidenced by the attached supporting letters from the small businesses that we have assisted. The Immokalee Business Development Center Feasibility Study will help us determine if we should expand the center or remain the way we are currently. d. Community & Economic Development Plans The Immokalee Business Development Center Feasibility is consistent with, and does not duplicate, economic development activities under existing community or economic development plans for the community. The IBDC seeks to improve the existing jobs, create new jobs and retrain the citizens for new jobs because agriculture is diminishing. El Packet Page -1339- 11/13/2012 Item 14.6.7. This Sco a of Work is submitted by the grantee. Upon approval by the grantor, the grantee agrees that no c�anges will be made to the Scope of Work without prior written approval by the grantor. COMMUNITY REDEVELOPMENT AGENCY OF COLLIER COUNTY, FLORIDA, 0 DONNA FIALA, CHAIRMAN This Scope of Work is hereby approved by USDA - Rural Development. USDA - RURAL DEVELOPMENT By: (Signature) (Title) (Date) A T TEST. DW10HT E. BROOK, Clark By: kpPmved at to tort & legni Suf ielj 5 Packet Page -1340- P.wM ,tint County Attorney 11/13/2012 Item 14.6.7. Sources US Census Bureau. 2010 Census InteractNe Population Map. Retrieved March 20, 2012 from http:/ 2010. census. gov /2010census /popmap /ipmtext.php. US Census Bureau. State and County QuickFacts. Retrieved July 24, 2012 from http://quickfacts.census.gov/qfd/states/I 2/12021.html. US Census Bureau. 2000 Fact Sheet. Retrieved September 24, 2009 fiom ftt:// factfinder .census.gov /servlet /SAFFFacts? Event = Search &geo id =& geoContext= &fang =en& sse= on &pctxt= fph &pgs1 =010 &show 2003 tab= &redirect =Y Dr. Stuart Van Auken, Dr. Howard Finch, Dr. Ara Volkan, Dr. Walter Rodriguez, Dr. Shelton Weeks, and Dr. Gary Jackson. "AG Business in SW Florida:Present and Future ", June 6, 2007. Col Packet Page -1341- 11/13/2012 Item 14.13.7. ATTORNEY'S OPINION RELATIVE TO ORGANIZATION, AUTHORITY, AND CONTINUOUS EXISTENCE To Whom It May Concern: 1. I am the County Attorney for Collier County, Florida. 2. 1 am familiar with Ordinance, Resolutions, and Regulations of Collier County, Florida. 3. That on March 14, 2000, the Collier County Board of County Commissioners adopted resolution 2000 -83, which established itself as the Collier County Community Redevelopment Agency. Said Resolution was adopted and authorized pursuant to Florida Statute §163.357(1). 4. That the Collier County Redevelopment Agency is authorized to engage in all activities permitted by Florida statute, Collier County Code Ordinance, Resolutions, Regulations and Bylaws. 5. The Collier County Redevelopment Agency has been in continuous legal existence since its incorporation. 6. Collier County is a valid political subdivision of the State of Florida. 7. Attached to this Opinion please find Resolution 2000 -83 and Bylaws of the Community Redevelopment Agency Local Redevelopme4ft, Advilory Boards of Collier County, Florida. JEf Co , Florida SWORN TO (OR AFFIRMED) AND SUBSCRIBED before me this 1�{i.� day of 2012, by Jeffrey A. Klatzkow. He is personally known to me or has produced (type of identification) as identification. SIGNATURE OF NOTARY PUBLIC 4W NotaryPubk Ste* ofFWft PRINT TYPE OR STAMP � . Vl kft A NOW v v My ConvnWW DDOM25 Expk.e M 2312011 COMMISS NED NAME OF NOTARY PUBLIC MY COMMISSION EXPIRES: Packet Page -1343- 11/13/2012 Item 14.6.7. Articles of Incorporatlon Resolution No. 2000 -83 12 C Z RE8aLU7TON MR. 19OD -SS A M1813 N F CRLUI CO 09 0 ��,,ppMI,SfB* N B OF AW B CbtlkfiY. Fl: ltGG1ff yM►�/lpAOy1Own ; A6pE! MB � 9P ARIAJSYgE�pFIN&F� tf�tI �IQ 1Ra� RR EA PRS:VPJiA4FOk ftgbvlCNNO irf` nVeDA �tIT1CNSAROS B16RY WHERDAD, Rw Hasid o? Oommh910MM has 44004d d-"SO AOn ioldtnp Ow mdst64O of am or more bfrghtad afoot Irt ttWwUroapOrolad omd of Ilro E4LAY nW fuWw rn4gep owi the robabtilatk% consorw9on or fodavobptnoat W e mbinadon MOW* In such want is topassmy in Uto hlorolt of Ib0 pubio hasl4 solely, rrPorols orvrolford of Ow rdotdonts dCofrgreowty, plodde, and WHERe", 1a awry oul 96d )rrrploraonl 9m toftaleopmonl powors and odldns oeefomptsWdby, Part Ill, Chapter 165: noddt StahAd, N40M tudt VMAf. R f0 pssosesiythal A somrrWntw rodavglopment rponsy be drostedr and WHFAUAB 'As poard of f?alydy Ooavntsitxwis 4kj"d to osrro as Use Oa MMIty rodoveopmoat ootm w and hws 64s;sW WiLrO 6osd6Cao of abkono afd proparbr wmots {n .. the westptovid>f v" caIdINA Dowd aenotrNM Via rodoveloprotnto fRratow; Itt1W, TIMUEORtar D6 IT RRGQ4% a BY TtIR DOARO OF COOS" COMMIDSIONER9 ORCD uwt40umYsFOR,IMAVOtlOWer avAi4ni, E1GfBal. Vho foroAOhs sodWt 9ra hotdby cdoplOq wA Incorporated mroh to tho same ox4nl as R th6yvbto setfoM M Wo dodton. SodUon2. nadorloW at 1141tq er nAw!j at eemmurirr &JMAloo IItAHo0, At proYidtd A DOOM i6SA37(i), F1pdd9 0I0a{t1t (1959 }, 00 DooW at Couhtir Oom misslomn of CWor t kmV, foddo, dead hereby detuto bsalf to ba Uw Cpttor!;alter Bomrmvlby ftadovo cpmant A9oncY At en 04"Dntt duty of 61st, opd I190 AuO,srdidpto lhal oU Iho slghls, pWMI. Wuw, phiftes, and k=uMlov vested by Pact Ill, OhRmdr lea, F101do WWI" 41m) 10 such a daimurity rodevotapngntcpsney wo horoby vested k the DOS1d Of Cooniy Cammisslangre, svb)ad{ la OR N;Pw9%IW61 and 11"U06 Irnposod orinw"d. secdon 9. g.aento teas; tir U. Tho members of Ow Rased of Comb Cow dsobnors We the raembera of the Coevtrrhy Rttlato opmsM Ape,w/, bl l dso muNwn aomorata the hood of n Sep., orkly, toperato, dfsttx4 end I6QopondwA rrom ft 8ou4'41 FovgyOomrrisslonora gac9on0, Qc'tdpnarAdvtta„ti9a »rds.There oro to be croilad, updar dtpgrata resoludogs by Ova Ooj mMyft Rtdevelepmont Agoney, Myhory boards, for each wrnponord Packet Page -1344- 11/13/2012 Item 14.13.7. area or me eomm=* rodevetoprasal area In the uroacOrpaoted 0100 of Co01or County, W/ch shell be composed of Offiwns, residents, pMpsrty Ownsm and bueinaas ownses or paraono Onallood to bUelrleae in the arer+, as pro-dded bt 0110 r9sotulon Of thO Communty ftgdsvoloptnord AoiW 0 WAM for ats uppohtmenl of Stroh raemboro. TIa dutlos and responslbll0ss or etich Advisory boccdlt shelf 109 set fofM TO 1hs fesOWdOrl Of I" C=Mwdly ltodswfopmant AponcY. Soedon 4. CTeAtYetf. Alt resotul0es 4411 pertO of (ssowdOdt in oaact vAli O'ny of the pfovRiong of this Isipputlo arc hombyre¢ soled, Seelene' fty,, M. If eny asetkn or portion of 0 saga► Of dds louoluUOn prpvoa to be lnvald, untevdut, or unc«uUWltonai, it the0 not be hold Io Inveldsla Of impeV the ubOdity, WOO, Or9p4of My 9ther ovetlon or pill of We di$05900n, pellonA. Htl reC va aale Thit mduka shell b000ms #Use*4IMMOOlatOlY vpgn 114 passsye and sd9ptlon. $eouon7. This ftesOlultOn odopled 9114MO110n, sseond nand me`Odty vOtO tWs .I L) day of. 1 4000• Alit i 00ARDOFC t51pNER9 ONG",T' ROOK, CL&R14 f OLt (< f� f17 (, FLOR1bA ay N C E 1M gr� T1h10 ;.�.�, ''� •11:3, o CbairAen's. 00W �� 4111 y. APPROVER As TO FORIAAND LEGAL 6UFFI0IEKOY Devi¢ O, Wotpel ' GauntKAtldtney 8 Packet Page -1345- ,i AM BY-Laws SY LAW8 OWTAilr CONMUIrlITY itl�p V� ,Q�> /dICNPd`A� t+tt LOCA16 RE Dlv' E, LOI'lylM A DVTISOM ' BOARDS or COLLIER Ce;3MY19 M.01MA 11/13/2012 Item 14.6.7. MUM SH4r°I'ICNi A. MW The local Advisory board, one per each component redevelopment Agee, $hail be knows: as "tite'narrte ottho component redevelopment amp it, which oho local planning board ails , LOCaI Redevelopment AdvisoryRoard, SSQ;'I"ti ON 2, QWHt AMNI The area of "ration of aft advisoryy board aonshis of that Cates,, geagraphloal ores identified In CPA RosoMion 200"1 by the - Community Itodova3oyawnt ,Agency (CRA) and Resolution 2M.181 by tits 134CC, and referred to thcraht as thti 'Xtittrmhaleo Component lRadovslopmont Aron and the Sayahom/Gateway Component Rodoveigptttunt Area, Additional tadaveiapmont component tmeas my be design$tod by- separato roaalutions oftitn Cormttuniay Redovelapmrent ,Agency of Colllorr County (, CitAI) and tlm Cotlior County Rorltd of County Commisslonsrs (" ate') +attar oil upproprfato findings have been made and a redavetapnMt aomponon, plan for those areas is adopted by the CRA and BCC, All In aueordance with Part fit, Chapter &63, Vtot4da Statutes (the "Act "). , SII UN �- PUMME' ' Malt advJsary bmid is Intended to be A* prlrrwry souma of'Conmunity Input to rho golf ler County Community Redevoloprmot Agency (the "CU") and to the CRA so 1. gosh advisory lmatd will oonsider And make recommendations to tho CPA soft and tim tom, concerning the Redevalopment Plant, A=ndmottts to tho Rodavelopwnt Plan, sW rodovelopm nt area work proem and its Impletttontdtlon and any ;e ovelopment prof eats proposed for the a n'of operatlon of qho sdvtsmy board, Tiro ad*ory beard funotions, Aro advisory only, And arc to assist with Ow public input, its site 1 =1 Wdevoloprrtentplanning prcrttrse. More speclfically, the pwgrasa and duties of eaoh advisory boatel shall he as foltowst , (a) roview tho applicable cornzwnant Awavelopment atea°a Twovels ptttattt plan aw whstt Moassaty mcomriroato the ORA Any ohangos to dwplan; (6) mbuo MOmmondatlorts to the CRA, on plan frnplemntation, Including dovaloping on Antxuat work pragrAm, 6e0149 proJeet priolitlea, and developing incontives to furthdrtho p+cdevoloprrmnt effazts and catW oat and efi'rctuate Cite Jrurlr030 and previsions at the Act in fire companemt nwovolugnMstt awal (e) ret:olvo input from rtmembon of tfta public intermsted to redevelopment of tit# comp ntnt redevelopment ante and totepott shah Intormation to tiro Cif; And W. MiOw And earnmsrlt On atty redevelopment projeato proposed In, the ablemy fmatd °s component tedovelopmont area. Packet Page -1346- 11/13/2012 Item 14.13.7. t � (g) dlno (1) at targe reprosentative who resides or engages in business, or both, In the $ayehore!(3ateway Triangle Component Redevelopment Area; 4trt°"i'Yt]Iv d• trr�mRk rxl lI deyalartm:lnt Advisary 11 rdr In order to d1surs s comprahsnelve appraach In the Tramokolea community, the Immokaloo Enterprise Z0114 Doveio rront Agency as cmated «tsy the KC pursuant to Collier County Ordinance 952x, as amended, shall Mho Immoka1w Local Redoveloproont Advisory Board. The Immolsalee Looal Rodevelopment,Advilosy Board shall adharo to the provisions or these bylaws, except as otherwise provided by Collier County Ordinance 9522, as amouded. SECTI()N7, Appligalign, budmrM4, Applicants must bo residents and 01e0100 of Collier County. Residents interested in applying to serve on an advisory board shall submit A letter requesting such appotntmont and containing a brief resume to The CRA. Guidelines for appointing the members to the advlsory board will be consistent witb those procedums outilned in BCC Resolution $4»136. SSO ION d. ToOM Except for the fmm koloo lL.ocat IRodeveioprpertt Advisory Board, advisoty boated members strati serve for two (2) year tests, with no more than two reoppointmanto parmhod. However, for purposes of staggering reappointmmnte, three (3) of the initial trte,nbers will have one U) year terms ae follows. Bayshoreldataway Local Radcvelopnwnt Advisory Board- the Bayshoro rasidant, the Gateway Triangle resident and the at tares represant"I" will each serve only a one (1) year term for the first year of the advisory bowd, with two (2) year terms from•thert on, The terms for the InMkaira I..acdl Redevelopment Advlgory,Board will be consistent with the tome sot forth in Collier County Urdinancca 95 -22, as amended, , SEC} jON 9, yggndW Vacancles occuniq on any advisory board shah ba publietzed, but nod nos ' Em advertised, in A publication of genotal circulation within tits co MV and vacattcy ttotices an to be posted in tics county libraries, the courthouse and on Mo Intornet; Appahrtwnts to fill vacanelea on ties advisory board strati W f:llgd by the CRA Board rrwmber of tits component reduvelepmont ayes, The term of an advisory board member appointed to fill a vacancy explras At rite time tU term of the orlginAY tnomber would have expired- Sl3MON 10. a • it is the intent and stronz desire of ' ho Ciz a that there bo full attendance of advisory board members at all meetings of ties advisory board, s+eeognixing, however, lbal it may be necessary for board mmhtb$ra to bo absent from a tneesting due to unusual or enwygency circumstances. The following roquiremottts are established: 1. Any advisory troard rnember who Is absent for moro than two - thirds of die advisa y board's meetings in a given fiscal year shalt be decrrmA to have tendered his or her rosignatloa from.the advisory board, The CRA shall, as soon as pmothablo after such roslgnation, declare tiro position' vacant and shall promptly fill the posltlon, Tho affected advisory board member shall not servo at any mcmting altar his or her posltlon is declmod vacant by the CRA. 2. In the event that any advisory board member is absent ftrom two consecutive advisory board meetings without -A satisfactory excuse accaptabla to the advisory lawtrd, hies advisory board chairman shall state suoh fact at the next regularly scheduled advisory board roemting and shall thoreafier notlfj, in -writing, the CRA of the advisory boW } member's failure to attend without a satisfactory excuse. The CM shalt ravlaw the notification at a CRA meeting and shall declare the advisory board memboes Mition to be vacant if the CRA concurs that the advisory board member was ubsent front two Packet Page -1347- 11/13/2012 Item 14.13.7. SP 4N' S. OM99C Yjnnft Ito vacanoy axies In any office, rho advisory baaW shall elect A now officer by the afiir m ive vote of a p4ority of the advtaory board members present and voting at a ' meeting of the advisory board, to All the incomplete term of the vacated office, S9MON 9. Removal .or esi aat> ,tl_ort; The advisory board rrmy remove an officer at any titre with or without cause by the affirmative vote of a r4ority df the advisory board membern present and voting at a duly cunstitoW meeting of the advisory board, An officer may malgmat any time by delivering notloe thereof to the advisory board. A resignallon Is effootive when IN notice Is delivered to tits advisory board unless the WIN WON a later affective date and the advlsory boom) accepts the Mum aft'oot#va date, the pending vacancy may be filled brrtbra the effective date provided that the successor does nol tglto Office until the effective date, I&RT ..�.�. Una tv � rig SECTION 1. Cmalion The advisory board may osute, from draft to time, such aubcominittees as shall be necessary or desirable to oury out the functions, purposes, and objectives of the advisory boards. Any such subaonrmittets shall be subordinate to the Advisory board, shalt be assigned a speoitbo purpose and oblectivo, and shall be given a date certain to complote its teaks, at which tuna the subcommittee shall be dissolved, unless sold data Is extanded by the aMmiativo veto of a motjority of the advisory board rtascmtors pmsont and voting at a duly constituted mating of the advisory bond. S> 6nON2. Ugmhrw The mmnbata of such subcommltteo shall be elected by the advisory board for such term and shall havo quoliiicatlovs as the advisory board may desire: ,,. slacnor 3. Remad, The advisory board my remove any subcamtnitto P*mber with or Without cause by tiro a €a?Irtrrativa vote Of 1m4arity of advisory board members pr wnt And voting at any mooing of the advisory board. SHMOr44. The subcon ntittess shall be subject to tho same parilamontery procedures as the advisory board and Florida's Government in the Sunshine Law, SV=oAT 1, gibing Regular momingat of the advisory board shall be held on -such day, d= and )place as nay be determined) by the advisory bound, and at a minimum once a month. TM punvo of the meotings is to dlscasar and to then prepare mcommendationo and advice to the CRS,, on matters brought before ilia ,advisory board. S�:C 0X 2. � fi At all regular or speoiat tnmmtings of att advisory board, a rnu orfty of the membership of the advisory board shall constitute a quorum, Voting shalt be by volce unless a rnernbox of the advisory board requests a toil call, Tho roll shall bo In atghaboticai order with the lint name called ro AO$ with c4ch motion #pan which tho voter is calltrd, The Chairman #hall always vote last, A Mort oflhofall call 811011 be kept'as park of the minutes, SRCTiox 31 fign1w,meeftc Special MoOlings may bra ratted by the Chairionat anytltrter provided l adequato notico la given pursuant to Article 3, Section 4 hereof, The Chalrman tray also call a speclol )octhrg who roquestod to do so in w4litfg'by aa.ma�jority of the mcmbers•of trio advisory board or by a MA staff member; xha'n i(ca of such a mmoting shall specify the purposo of such a meeting and no Packet Page -1348- 11/13/2012 Item 14.6.7. PASSBD AND CSRT 15 AS To 1'ASSA.Q$ by the Collier County Community Redavelo Agency this = .c1aY of ar�o p..,, k vCI sCxlrAttY azs.�R Co DBVI,OPMI AQBNCY ra A 1. MULA S, MlACIXM, CHA, r MAN Approved As to i~orsn and Loj$l Sufflclency cldi Ashton AssIstant County Attomayl and CRALogal Caunsel ' i I r ' -- Packet Page -1349- 11/13/2012 Item 14.6.7. Form RD 400 -1 FORM APPROVED (Rev. 5 -00) UNITED STATES DEPARTMENT OF AGRICULTURE OMB No. 0575 -0018 EQUAL OPPORTUNITY AGREEMENT This agreement, dated between COLLIER COU)7TY COMMUNITY REDEVELOPMENT AGENCY- IMMOKALEE (herein called "Recipient" whether one or more) and United States Department of Agriculture (USDA), pursuant to the rules and regulations of the Secretary of Labor (herein called the 'Secretary') issued under the authority of Executive Order 11246 as amended, witnesseth: In consideration of financial assistance (whether by a loan, grant, loan guaranty, or other form of financial assistance) made or to be made by the USDA to Recipient, Recipient hereby agrees, if the cash cost of construction work performed by Recipient or a construction contract financed with such financial assistance exceeds $10,000 - unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965. 1. 'To incorporate or cause to be incorporated into any contract for construction work, or modification thereof, subject to the relevant rules, regulations, and orders of the Secretary or of any prior authority that remain in effect, which is paid for in whole or in part with the aid of such financial assistance, the following "Equal Opportunity Clause ": During the performance of this contract, the contractor agrees as follows: (a) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex of- national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited, to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the USDA setting forth the provisions of this nondiscrimination clause. (b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. (c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the USDA, advising the said labor union or workers' representative of the contractor's commitments under this agreement and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (d) The contractor will comply with all provisions of Executive Order 11246 of September 24,1965, and of all rules, regulations and relevant orders of the Secretary of Labor. (e) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, rules, regulations, and orders, or pursuant thereto, and will permit access to his books, records, and accounts by the USDA Civil Rights Office, and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (f) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of Labor, or as otherwise provided by Law. (g) The contractor will include the provisions of paragraph 1 and paragraph (a) through (g) in every subcontract or purchase order, unless exempted by the rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the USDA may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided. however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the USDA, the contractor may request the United States to enter into such litigation to protect the interest of the United States. According to the Paperwork Reduction Act of 1995, an aggenvy nrat Trot conduct or sponsor, and a person: is not required to respond to, a collection o nrfb imation unless it displays a valid tJAM control mmmher. The valid OMB control number for this information collections is 0575 -0018. the time required to complete this information collection is estintated to average IO,nrinutesper response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and conrpletttrg and reviewing the collection of information. Position 6 Packet Page -1351- RD 400 -1 (Rev. 5 -00) 11/13/2012 Item 14.6.7. 2. To be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, that if the organization so participating is a State or local goverment, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract. 3. To notify all prospective contractors to file the required 'Compliance Statement', Form RD 400 -6, with their bids. 4. horm AD -425, Instructions to Contractors, will accompany the notice of award of the contract. Bid conditions for all nonexempt federal and federally assisted construction contracts require inclusion of the appropriate "Hometown" or "Imposed" plan affirmative action and equal employment opportunity requirements. All bidders must comply with the bid conditions contained in the invitation to be considered responsible bidders and hence eligible for the award. 5. To assist and cooperate actively with USDA and the Secretary in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and rules, regulations, and relevant orders of the Secretary, that will furnish USDA and the Secretary such information such as , but not limited to, Form AD -560, Certification of Nonsegregated Facilities, to submit the Monthly Employment Utilization Report, Form CC -257, as they may require for the supervision of such compliance, and that it will otherwise assist USDA in the discharge of USDA's primary responsibility for securing compliance. 6. To refrain from entering into any contract or contract modification subject to such Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and Federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by USDA or the Secretary of Labor pursuant to Part 1I, Subpart D, of the Executive Order. 7. That if the recipient fails or refuses to comply with these undertakings, the USDA may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the organization under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such organization; and refer the case to the Department of Justice for appropriate legal proceedings. Signed by the Recipient on the date first written above. Recipient (900 it' G Recipient (CORPORATE SEAL) Name of C rporate Recipient Attest: By Secretary President - ATTEST DWIGHT E. eROCK, 018r rw: 'ppmZfed as to form & leged Suffielency Packet Page -1352- A SSIs ant County Attorney co 11/13/2012 Item 14.6.7. Position 3 USDA FORM APPROVED Form RD 400 -4 ASSURANCE AGREEMENT OMB No. 0575 -0018 (Rev. 3 -97) (Under "Title VI, Civil Rights Act of 1964) The COLLIER COUNTY COMMUNITY REDEVELOPMENT (nanie of recipient) 1320 N 15TH STREET, STE 2, IMMOKALEE, FL 34142 (address) ( "Recipient' herein) hereby assures the U. S. Department of Agriculture that Recipient is in compliance with and will continue to comply with Title VI of the Civil Rights Act of 1964 (42 USC 2000d et. seq.), 7 CFR Part 15, and Rural housing Service, Rural Business- Cooperative Service, Rural Utilities Service, or the Farm Service Agency, (hereafter known as the "Agency ") regulations promulgated thereunder, 7 C.F.R. § 1901.202. In accordance with that Act and the regulations referred to above, Recipient agrees that in connection with any program or activity for which Recipient receives Federal financial assistance (as such term is defined in 7 C.F.R. § 1.4.2) no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination. 1. Recipient agrees that any transfer of any aided facility, other than personal property, by sale, lease or other conveyance of contract, shall be, and shall be made expressly, subject to the obligations of this agreement and transferee's assumption thereof. 2. Recipient shall: (a) Keep such records and submit to the Government such timely, complete, and accurate information as the Government may i determine to be necessary to ascertain our /my compliance with this agreement and the regulations. (b) Permit access by authorized employees of the Agency or the U.S. Department of Agriculture during normal business hours to such books, records, accounts and other sources of information and its facilities as may be pertinent to ascertaining such compliance. (c) Make available to users, participants, beneficiaries and other interested persons such information regarding the provisions of this agreement and the regulations, and in such manner as the Agency or the U. S. Department of Agriculture finds necessary to inform such persons of the protection assured them against discrimination. 3. Tile obligations of this agreement shall continue: s S (a) As to any real property, including any structure, acquired or improved with the aid of the Federal financial assistance, so long as such real property is used for the purpose for which the Federal financial assistance is made or for another purpose which affords similar services or benefits, or for as long as the Recipient retains ownership or possession of the property, @ whichever is longer. ;' (b) As to any personal property acquired or improved with the aid of the Federal financial assistance, so long as Recipient su retains ownership or possession of the property. (c) As to any other aided facility or activity, until the last advance of funds under the loan or grant has been made. 4. Upon any breach or violation this agreement the Government may, at its option: (a) Terminate or refuse to render or contimte financial assistance for the aid of the property, facility, project, service or activity. .« C7 (b) Enforce this agreement by suit for specific performance or by any other available remedy under the laws of the United States or the State in which the breach or violation occurs. Rights and remedies provided for under this agreement shall be cumulative. In witness whereof; COLLIER COUNTY COMMUNITY REDEVELOPMENT on this (name of recipient) date has caused this agreement to be executed by its duly authorized officers and its seal affixed hereto, or, if a natural person, has hereunto executed this agreement. Recipient (SEAL,) _ Date Attest: , />Y +l %fJ Title l rg�ti I ��i�j,L✓ Lirj/V Title According to the Paperwork Reduction Act oft 415, no pervons are required to respond to a collection of informalion unless it dlrplay.v a valid OMB court »l nnnber: The ralid OUR colurol ittiniberfor this it forntrrtiati collectioii is 11570 4018. The rime requin;d to rnntplcte this inf mnntiou is ertinrared an average M minutes per response, including the time for revtetri,rg irrsrnrctiotu, senreling eatrting data sources, gntherirg and maitttaininn the dntn needed. and conmletirrg and reyie+ritrg rice callerrion of it jsnrntion. Packet Page -1353- 11/13/2012 Item 14.6.7. U.S. DEPARTMENT OF AGRICULTURE Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Primary Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 7 CFR Part 3017, Section 3017.510, Participants' responsibilities. The regulations were published as Part IV of the January 30, 1989 Federal Register (pages 4722 - 4733). Copies of the regulations may be obtained by contacting the Department of Agriculture agency offering the proposed covered transaction. (BEFORE COMPLETING CER'T'IFICATION, READ INSTRUCTIONS ON REVERSE) (1) The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals: (a) are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; (b) have not within a three -year period preceding this proposal been convicted of or had a civil judgement rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (1xb) of this certification; and (d) have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. (2) Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Organization Name Names) and Title(s) of Authorized Representatives) PR/Award Number or Project Name signature(s) Date X TEST. DWIGHT E. BROCK, Clark By; Form AD -1047 (1/92) ,1j.;pi vwj as to bra: & legal Sul`i4ClailCj> Packet Page - 1354 - mt Cral.11ity Attorney 11/13/2012 Item 14.13.7. Instructions for Certification 1. By signing and submitting this form, the prospective primary participant is providing the certification set out on the reverse side in accordance with these instructions. 2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective participant shall submit an explanation of why it cannot provide the certification set out on this form. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction. 3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 4. The prospective primary participant shall provide immediate written notice to the department or agency to whom this proposal is submitted if at any time the prospective primary participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 5. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations. 6. The prospective primary participant agrees by submitting this form that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 7. The prospective primary participant further agrees by submitting this form that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion- Lower Tier Covered Transactions," provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the Nonprocurement List. 9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 2 Form AD -1047 (1/92) Packet Page -1355- 11/13/2012 Item 14.6.7. UNITED STATES DEPARTMENT OF AGRICULTURE CERTIFICATION REGARDING DRUG -FREE WORKPLACE REQUIREMENTS (GRANTS) ALTERNATIVE I - FOR GRANTEES OTHER THAN INDIVIDUALS This certification is required by the regulations implementing Sections 5151 -5160 of the Drug-Free Wodrplace Act of 1966 (Pub 1..100.690, Title V, Subtitle Q 41 U.S.C. 701 et seq.), 7 CFR Part 3017, Subpart F, Section 3017.600, Purpose. The January 31, 1989, regulations were amended and published as Part II of the May 25,1990 Federal Register (pages 21681. 21691). Copies of the regulations may be obtained by contacting the Department of Agriculture agency offering the grant. (Before completing Certffecatton, read instructions our page 2) (g) Making a good faith effort to continue to maintain a drug-free workplace Alternative l through implementation of paragraphs (a), (b), (c), (d), (e) and (q. , B. The grantee may Insert in the space provided below #* sil e(s) for the performance A. The grantee certifies that it will or will cantina*. to provide a drug -free workplace by: of work done in connection with the specific grant (a) Publishing a statement notifying employees that the unlawful manufacture, Place of Performance (Street address, city, county, State, zip code) distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing an ongoing drug4ree awareness program to inform employees about — (1) The dangers of drug abuse in the workplace; (2) The grantee's policy of maintaining a drug-free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance programs; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (c) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a) ; (d) Notifying the employee in the statement required by paragraph (a) that as a condition of employment under the grant, the employee will — (1) Abide by the terms of the statement; and (2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; (e) Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, Including position title, to every grant officer on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification numbers) of each affected grant; (f) Taking one of the following adios, within 30 calendar days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted (1) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 1 Check ❑ it there are workplaces on file that are not identified here. Organization Name Award Number or Project Name Name and Title of Authorized Representative Signature Date tai i T . ISS f DWIGHT B. BROCK, Clark aBY : 1-`tpprt° eer,j as 1cb fori , & legal Sufflc,orj c t Packet Page -1356- �'�IntCOU�lltytiorne+ Form AD-1049 (REV %D) INSTRUCTIONS FOR CERTIFICATION 1. By signing and submitting this form, the grantee is providing the certification set out on pages 1 and 2. 2. The certification set out on pages 1 and 2 is a material representation of fact upon which reliance Is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug -Free Workplace Act, the agency, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug -Free Workplace Act. 3. Workplaces under grants, for grantees other than individuals, need not be Identified an the certification. If known, they may be Identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on Me in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's drug -free workplace requirements. 4. Workplace Identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e,g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio studios). 5. If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see 11/13/2012 Item 14.6.7 paragraph three). 6. Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug -Free Workplace common rule apply to this certification. Grantees' attention Is called, in particular, to the following definitions from these rules: "Controlled" substance means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of noto contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non - Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: (1) all "direct charge" employees; (11) all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and, (Ili) temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). Form AD -1049 (REV 5/90) Packet Page -1357- 11/13/2012 Item 14.6.7. SURVEY ON ENSURING EQUAL OPPORTUNITY FOR APPLICANTS OMB No. 1890 -0014 Exp. 02/28/09 Purpose: The Federal government is committed to ensuring that all qualified applicants, small or large, non - religious or faith - based, have an equal opportunity to compete for Federal funding. In order for us to better understand the population of applicants for Federal funds, we are asking nonprofit private organizations (not including private universities) to fill out this survey. Upon receipt, the survey will be separated from the application. Information provided on the survey will not be considered in any way in making funding decisions and will not be included in the Federal grants database. While your help in this data collection process is greatly appreciated, completion of this survey is voluntary. Instructions for Submitting the Survey If you are applying using a hard copy application, please place the completed survey in an envelope labeled "Applicant Survey." Seat the envelope and include it along with your application package. If you are applying electronically, please submit this survey along with your application. Applicant's (Organization) Name: ., L� �r1 ✓? i�'jt��-y (/ GtrtJ/ Applicant's DUNS Number: Federal Program: al,W L, !�GtS�ii?l� -s"� '�i� C- 9/&44V7-CFDA Number: 1. Has the applicant ever received a grant or contract from the Federal government? OrYes No 2. Is the applicant a faith-based organization? Q Yes 3. Is the applicant a secular organization? QYes No 4. Does the applicant have 501(e)(3) status? ❑ Yes 4 1Vo 5. Is the applicant a local affiliate of a national organization? EI Yes No 6. How many full -time equivalent employees does the applicant have? (Check only one box). 3 or Fewer [ 15 -50 [] 4 -5 F]` 51 -I00 [J 6 -14 ti ^ over 100 7. What is the size of the applicant's annual budget? (Check only one box.) Q Less Than $150,000 OX $150,000 - $299,999 E $300,000 - $499,999 0 $500,000 - $999,999 $1,000,000 - $4,999,999 ©x$5,000,000 or more Packet Page -1358- 11/13/2012 Item 14.13.7. Survey instructions on Ensuring Equal Opportunity for Applicants Provide the applicant's (organization) name and DUNS number and the grant name and CFDA number. 1. Self - explanatory. 2. Self - identify. 3. Self - identify. 4. 501(c)(3) status is a legal designation provided on application to the Internal Revenue Service by eligible organizations. Some grant programs may require nonprofit applicants to have 501(c)(3) status. Other grant programs do not. 5. Self - explanatory. 6. For example, two part -time employees who each work half -time equal one full -time equivalent employee. If the applicant is a local affiliate of a national organization, the responses to survey questions 2 and 3 should reflect the staff and budget size of the local affiliate. 7. Annual budget means the amount of money your organization spends each year on all of its activities. Paperwork Burden Statement According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless such collection displays a valid OMB control number. The valid OMB control number for this information collection is 1890 -0014. The time required to complete this information collection is estimated to average five (5) minutes per response, including the time to review instructions, search existing data resources, gather the data needed, and complete and review the information collection. If you have any comments concerning the accuracy of the time estimate(s) or suggestions for improving this form, please write to: The Agency Contact listed in this grant application package. OMB No. 1890 -0014 Exp. 02/28/09 Packet Page -1359- Julio Rodriguez Vecona, Inc. 9416 SW 6th Terrace Miami, Florida 33174 To whom it may concern; 11/13/2012 Item 14.6.7. Vecona, Inc. offers this letter of confidence and support for your proposed application to the United States Department of Agriculture (USDA) for the Rural Business Enterprise Grant (RBEG) to procure funding for preparation of an Incubator Feasibility Study. Vecona, Inc. is a small business involved in the food production industry. Having a regional food production center will provide individuals like me with not only a physical facility to operate their business, but also a place to develop their entrepreneurial skills. Local growers /farmers will also have an opportunity to learn how to turn their farm products into value added propositions that can be distributed beyond the borders of Immokalee. As a small business that is looking to grow we fully support the venture to procure funding to prepare a feasibility study to consider whether the Immokalee Community Redevelopment Agency (CRA) should expand its resources to include a larger building for its business development center and the addition of a food production center. Sincerely, Julio B. Rodriguez President of Vecona, Inc. 1 Packet Page -1361- 11/13/2012 Item 14.6.7. Edwin Barroso Edwin's Rollin Barbeque 1703 7"' Avenue Immokalee, FL 34142 August 28, 2012 Marie Capita Center Manager Immokalee Business Development Center 1320 15" Street N. Suite 2 Immokalee, FL 34142 Dear Ms. Capita: I am a long -time resident of Immokalee and have been enrolled with the Immokalee Business Development Center. I am writing to express my full support for the center and its plans to expand the operations to include a food preparation program. The Immokalee Business Development Center plays an important role in our community and has provided me with technical assistance and support during the start up of my small business. As an individual whose business involves the food industry, a food production facility will be a great asset for the success ofmy catering business. It is a good assurance to know that we have the business resources needed available to us in Immokalee. I am one of many who have relied on the Immokalee Business Development Center for guidance, technical support and networking opportunities for the betterment of my business. I urge you to move forward with plans to expand the center to accommodate small business start ups with reasonable rental options and hands -on support for entrepreneurs in a community that relies heavily on small businesses. I am looking forward to your continued success. Sincerely, f' Edwin Barroso Packet Page -1362- 11/13/2012 Item 14.13.7. ande'sWALKI NG FRUIT t sL L ... a heaCthy, happy choice Robert and Andrea Hallman, Owners 1372 Lincoln Court Immokalee, Florida 34142 Greetings: We offer this letter of confidence and support for your proposed application to the United States Department of Agriculture (USDA) for the Rural Business Enterprise Grant (RBEG) to procure funding for preparation of an Incubator Feasibility Study. Ande's Walking Fruit is a small business involved in the food production industry. Having a regional food production center will provide individuals like me with not only a physical facility to operate their business, but also a place to develop their entrepreneurial skills. Local growers /farmers will also have an opportunity to learn how to turn their farm products into value added propositions that can be distributed beyond the borders of Immokalee. As a small business that is looking to grow we fully support the venture to procure funding to prepare a feasibility study to consider whether the Immokalee Community Redevelopment Agency (CRA) should expand its resources to include a larger building for its business development center and the addition of a food production center. Sincerely, Robert and Andrea Halman Packet Page -1363- 11/13/2012 Item 14.13.7. Noemy Gonzalez — Mimi's Party Rentals, LLC_ 112 West Main St Immokalee, FL 34142 August 28, 2012 Marie Capita Manager Immokalee Business Development Center 1320 15" Street N. Suite 2 Immokalee, FL 34142 Dear Ms. Capita: I am a long-time resident of Immokalee and have been enrolled with the Immokalee Business Development Center since August 2012. I am writing to express my full support for the center and its plans to expand the operations to include a food preparation program. The Immokalee Business Development Center plays an important role in our community and has provided me with technical assistance and support during the start up of my small business. And though I have only been enrolled for a small period of time I have learned slot from services such as the workshops and the Entrepreneur School. I know that I will continue to utilize all the information that has been given to me by the Immokalee Business Development Center. Also Marie has been extremely helpful in many ways. If there is ever a question she doesn't know the answer to,she will find it for me. I am one of many who have relied and continue to rely on the Immokalee Business Development Center for guidance, technical support and networking opportunities for the betterment of my business. I urge you to move forward with plans to expand the center to accommodate small business start ups with reasonable rental options and hands -on support for entrepreneurs in a community that relies heavily on small businesses. I am looking forward to your continued success. Packet Page -1364- 11/13/2012 Item 14.13.7. KIDS IN MOTION ACADEMY OF THE ARTS, INC 5 yr"�fy�✓j t Annette & David Anderson 517 Stokes Ave., Immokalee FL 34142 239- 657 -1509 Marie Capita, Manager Immokalee Business Development Center 132015th Street N. Suite 2 Immokalee, FL 34142 Dear Ms. Capita: I am a long -time resident of Immokalee and have been enrolled with the Immokalee Business Development Center since May11, 2011. lam writing to express my full support for the center and its plans to expand the operations to include a food preparation program. The Immokalee Business Development Center plays an important role in our community and has provided me with technical assistance and support to help me with the explanation of our Large Family Child Care Home small business. Although we have been in business for 12 years we have never received any technical support to help us operate our business properly the way a business should operate. I am one of many who have relied on the Immokalee Business Development Center for guidance, technical support and networking opportunities for the betterment of my business. I urge you to move forward with plans to expand the center to accommodate small business start ups with reasonable rental options and hands -on support for entrepreneurs in a community that relies heavily on small businesses. I am looking forward to your continued success. Sincerely, Annette Anderson Packet Page -1365- 11/13/2012 Item 14.6.7. 6001 Lake Trafford Road, Immokalee, FL 34142 8/24/2012 To Whom It Concerns, Airboats & Alligators at Lake Trafford Mariner in Immokalee Florida offers this letter of confidence and support for your proposed application to the United States Department of Agriculture (USDA) for the Rural Business Enterprise Grant (RBEG) to procure funding for preparation of an Incubator Feasibility Study. Currently, the Immokalee Business Development Center (IBDC) plays an important role in the community by providing new and existing small businesses with the technical assistant and support needed to grow their business. Immokalee is a community filled with aspiring entrepreneurs. Having an incubator within the community is a valued asset that helps in the creation of skilled /high wage jobs for the residents of Immokalee. The expansion of the center will enable staff to help more business owners. Furthermore, the addition of a food production facility within the program will allow the IBDC to focus on the individuals who are interested in food production and those who are interested in learning how to turn their farm products into value added propositions that can be distributed beyond the borders of Immokalee. As an organization we fully support the venture to procure funding to prepare a feasibility study to consider whether the Immokalee Community Redevelopment Agency (CRA) should expand its resources to include a larger building for its business development center and food production center. Cinrnrnlri Owner Packet Page -1366- USDA Form RD 1940 -20 (Rev, 4 -06) WISCONSIN FORM RD 1940 -20 REVISED 0612007 11/13/2012 Item 14.6.7. Position 3 FORM APPROVED RE, QUEST FOR ENVIRONMENTAL INFORMATION Name of Project OMB No. 0575 -0094 Location Item In. Has a Federal, State, of Local Environmental Impact Statement or Analysis been prepared for this project? ❑Ycs E) No Copy attached as EXHIBIT 1 -A Ib. if "No," provide the information requested in Instructions as EXHIBIT I. Item 2. The State Historic Preservation Officer (SHPO) has been provided a detailed project description and has been requested to submit comments to the appropriate Rural Development Office, ❑ Yes M No TIE S11P0 SUBX11rrAL ANILL BE COMPLETED BY THE RURAL DEVELOPMENT WI SPATE OFFICE. SUBMIT INFORMATION AS REQUESTED IN MINI 2 ON PACES, Item 4. Are any facilities under your ownership, lease, or supervision to be utilized in the accomplishment of this project, either listed or tinder consideration for listing on the Environmental Protection Agency's list of Violating Facilities? ❑ Yes 0 No Signed: ^j (13 *r is (Applicant) Dili` #G T E. BROOK, 06avvP According to the Paperwork Redaction Act of 1995, an agency nay not conduct or sponsor, and a person is Trot rewired to respond i , a collection of in formation unless it displays a valid 0112 conn'ol tnanber, The valid 0A1B control nunber for this ittjarrrration collections is 0575- 0094, The tirne rewired io congrlete this information collection is estimated to average 6 to 10 hours per response, including the line for reviewing instructions, searching existing data sources, gathering and maintaining the data deeded, and completing and reviewing file colle ---- Packet Page -1368- A Item 3. Are any of the following land uses or environmental resources either to be affected by the proposal or located Within or adjacent to the project sitc(s)? (Check appropriate box for evety item of thefollosping checklist). Yes No Unknown Yes No Unknown 1. industrial ........ ............................... ❑ ❑D ❑ 19. Dunes ........................... ❑ ❑✓ ❑ 2. Commercial ..... ............................... ❑ El ❑ 20. Estuary ........................... ❑ El ❑ 3. Residential ...... ............................... ❑ 0 ❑ 2l. Wetlands ........................... ❑ 0 ❑ 4. Agricultural ... .............................. - ❑ 0 ❑ 22. Floodplain ... ................. .... E] IF, 1 ❑ 5. Grazing, ........................................ ❑ El ❑ 23. Wilderness ........................ ❑ n U (designated or proposed under the JFilder7ress Act) 6. Mining, Quarrying ............................ ❑ ❑' ❑ 24. Wild or Scenic River. ............. ❑ F/I ❑ (proposed or designated under the Wild 7. Forests... .................... ...... ....... and Scenic Rivers Act) t l S. Recreational ...... ............................... ❑ ❑+ ❑ 25. Historical, Archaeological Site ❑ ❑ (Listed on the National Register of 9. Transportation. ................ ............... ❑ (] ❑ Historic Places or which rna;) be Eligible far listing) t?3 i10. Parks ............. ............................... ❑ 3 U 26. Critical Habits ...... -- .......... ❑ El ❑ (endangered/tllreatened species) e-• t. Hospital.... ..... ............................... ❑ ❑ ❑ 27. Wildlife ........................... ❑ ❑ ❑ r t�2. Schools .......... ............................... ❑ 0 ❑ 28. Air Quality...... �s 3. Open spaces ...... ................. - ......... ❑ o ❑ 29. Solid Waste Management...... ❑ ED ❑ r"�r rd 4. Aquifer Recharge Area ...................... ❑ ❑ ❑ 30. Energy Supplies,................. [] ❑ ❑ 15. Steep Slopes .... ............................... ❑ El ❑ 31. Natural Landmark............... ❑ Q ❑ (Listed on National Regisny of Natural } 16. Wildlife Refuge .............................. ❑ ❑ ❑ Landmarks) 17. Shoreline ........ ............................... ❑ El ❑ 32. Coastal Barrier Resources System... ❑ F11 ❑ 18. Beaches ........ ............................... ❑ El ❑ Item 4. Are any facilities under your ownership, lease, or supervision to be utilized in the accomplishment of this project, either listed or tinder consideration for listing on the Environmental Protection Agency's list of Violating Facilities? ❑ Yes 0 No Signed: ^j (13 *r is (Applicant) Dili` #G T E. BROOK, 06avvP According to the Paperwork Redaction Act of 1995, an agency nay not conduct or sponsor, and a person is Trot rewired to respond i , a collection of in formation unless it displays a valid 0112 conn'ol tnanber, The valid 0A1B control nunber for this ittjarrrration collections is 0575- 0094, The tirne rewired io congrlete this information collection is estimated to average 6 to 10 hours per response, including the line for reviewing instructions, searching existing data sources, gathering and maintaining the data deeded, and completing and reviewing file colle ---- Packet Page -1368- A 11/13/2012 Item 14.6.7. INSTRUCTIONS FOR PREPARING FORM RD 1940 -20 Federal agencies are required by law to independently assess the expected environmental impacts associated with proposed Federal actions. It is extremely important that the information provided be in sufficient detail to permit Rural Department to perform its evaluation. Failure to provide sufficient data will delay agency review and a decision on the processing of your application. This information request is designed to obtain an understanding of the area's present environmental condition and the project's elements that will affect the environment. Should you believe that an item does not need to be addressed for your project, consult with the RD office from which you received this Form before responding. In all cases when it is believed that an item is not applicable, explain the reasons for this belief. It is important to understand the comprehensive nature of the information requested. Information must be provided for a) the site(s) where the project facilities will be constructed and the surrounding areas to be directly and indirectly affected by its operation and b) the areas affected by any primary beneficiaries of the project. The amount of detail should be commensurate with the complexity and size of the project, and the magnitude of the expected impact. Some examples: A small community center project may not require detailed information on air emissions, meteorological conditions and solid waste management. A water resource, industrial development, or housing development project will require detailed information. Item la - Compare the Environmental Impact Statement or Analysis that was previously prepared with the information requested in the instructions for Item lb below to be sure that every point in the information request is covered in the Environmental Impact Statement or Analysis. if any of the requested information is not covered, attach to the Environmental Impact Statement or Analysis a supplemental document that corrects any deficiencies or omissions. Item lb - Provide responses to the following items in the order listed and attach as EXHIBIT I. In order to understand the full scope of the land uses and environmental factors that need to be considered in responding to these items, it may be helpful to complete Item 3 of the Form before completing these narrative responses. If your application is for a project that Rural Development has classified as a Class I action, complete only parts (1), (2), (13), (15), (16), and (17) of this Item. The Rural Development office from which you received this Form can tell you if your application falls within the Class I category. (1) PrimaLy Beneficiaries Identify any existing businesses or major developments that will benefit from the proposal, and those which will expand or locate in the area because of the project. These businesses or major developments hereafter will be referred to as primary beneficiaries. Packet Page -1369- 11/13/2012 Item 14.13.7. Page 2 (2) Area Description a. Describe the size, terrain, and present land uses as well as the adjacent land uses of the areas to be affected. These areas include the site(s) of construction or project activities, adjacent areas, and areas affected by the primary beneficiaries. IDENTIFY THE TOWNSHIP, RANGE, AND SECTION NUMBER OF THE PROJECT IDCATION. b. For each box checked "Yes" in item 3, describe the nature of the effect on the resources. If one or more of boxes 17 through 22 is checked "Yes" or "Unknown," contact Rural Development for instructions relating to the requirements imposed by the Floodplain Management and Wetland Protection Executive Orders. Attached as Exhibit II the following: 1) a U.S. Geological Survey "15 minute" ( "71 /z minute" if available) topographic map which clearly delineates the area and the location of the project elements; 2) the Federal Emergency Management Administration's floodplain map(s) for the project area; 3) site photos; 4) if completed, a standard soil survey for the project area; and 5) if available, an aerial photograph of the site. If a floodplain map is not available, contact Rural Development for additional instructions relating to the requirements imposed by the Floodplain Management Executive Order. (3) Air Quality a. Provide available air quality data from the monitoring station(s) either within the project area or, if none exist nearest the project area. b. Indicate the types and quantities of air emissions to be produced by the project facilities and its primary beneficiaries. If odors will occur, indicate who will be affected. c. Indicate if topographical or meteorological conditions hinder the dispersal of air emissions. d. Indicate the measures to be taken to control air emissions. (4) Water Quality a. Provide available data on the water quality of surface or underground water in or near the project area. b. Indicate the source, quality, and available supply of raw water and the amount of water which the project is designed to utilize. c. Describe all of the effluents or discharges associated with the project facilities and its primary beneficiaries. Indicate the expected composition and quantities of these discharges prior to any treatment processes that they undergo and also prior to their release into the environment. Packet Page -1370- Page 3 11/13/2012 Item 14.13.7. d. Describe any treatment systems which will be used for these effluents and indicate their capabilities and their adequacy in terms of the degree and type of treatment provided. Indicate all discharges which will not be treated. Describe the receiving waters and their uses (e.g., recreational) for any sources of treated and untreated discharge. e. If the treatment systems are or will be inadequate or overloaded, describe the steps being taken for necessary improvements and their completion dates. f. Describe how surface runoff will be handled if not discussed in (d) above. (5) Solid Waste Management a. Indicate the types of quantities of solid wastes to be produced by the project facilities and its primary beneficiaries. b. Describe the methods for disposing of these solid wastes plus the useful life of such methods. c. Indicate if recycling or resource recovery programs are or will be used. (6) Transportation a. Briefly describe the available transportation facilities serving the project area. b. Describe any new transportation patterns which will arise because of the project. c. Indicate if any land uses, such as residential, hospitals, schools or recreational, will be affected by these new patterns. d. Indicate of any existing capacities of these transportation facilities will be exceeded. If so, indicate the increased loads which the project will place upon these facilities, particularly in terms of car and truck traffic. (7) Noise a. Indicate the major sources of noise associated with the project facilities and its primary beneficiaries. b. Indicate the land uses to be affected by this noise. (8) Historic /Archeological Properties a. Identify any known historic /archeological resources within the project area that are either listed on the National Register of Historic Places or considered to be of local and state significance and perhaps eligible for listing in the National Register, b. Attach as EXHIBIT III any historical /archaeological survey that has been conducted for the project area. Packet Page -1371- 11/13/2012 Item 14.13.7. Page 4 , (9) Wildlife and Endangered �ed S ecies a. Identify any known wildlife resources located in the project area or its immediate vicinity. b. Indicate whether to your knowledge any endangered or threatened species or critical habitats have been identified in the project area or its immediate vicinity. (10) Energy a. Describe the energy supplies available to the project facilities and the primary beneficiaries. b. Indicate what portion of the remaining capacities of these supplies will be utilized. (11) Construction a. Describe the methods which will be employed to reduce adverse impacts from construction, such as noise, soil'erosion and siltation. (12) Toxic Substances a. Describe any toxic, hazardous, or radioactive substances which will be utilized or produced by the project facilities and its primary beneficiaries. b. Describe the manner in which these substances will be stored, used, and disposed. (13) Public Relation a. Describe any objections which have been made to the project. b. If a public hearing has been held, attach a copy of the transcript as EXHIBIT IV. If not, certify that a hearing was not held. c. Indicate any other evidence of the community's awareness of the project such as through newspaper articles or public notification. (14) Alternatives to the Proposed Proiect Provide a description of any of the following types of alternatives which were considered: a. Alternative locations. b. Alternative designs. c. Alternative projects having similar benefits. Packet Page -1372- 11/13/2012 Item 14.6.7. Page 5 (15) Mitigation Measures Describe any measures which will be taken to avoid or mitigate any adverse environmental impacts associated with the project. (16) Permits a. Identify any permits of an environmental nature which are needed for the project. b. Indicate the status of obtaining each such permit and attach as EXHIBIT V any that have been received. (17) Other Federal Actions Identify other federal programs or actions which are either related to this project or located in the same geographical area and for which you are filing an application, have recently received approval, or have in the planning stages. Item 2 — All applicants are required to provide the WI RURAL DEVELOPMENT STATE OFFICE with (a) a narrative description of the project's elements and its location; (b) a map of the area surrounding the project which identifies the project site, adjacent streets and other identifiable objects, (e) A SITE PLAN OF THE PROJECT and (d) photographs of the affected properties if building demolition or renovation is involved. ALSO SUBMIT THE TOTAL AMOUNT (IN SQUARE FEET) OF NEW GROUND DISTURBANCE THAT WILL OCCUR AT THE BUILDING SITE FO RTHE CONSTRUCTION OF THE PROPOSED PROJECT. This material will be submitted to the SHPO by RURAL DEVELOPMENT. THE APPLICANT SHOULD NOT CONTACT OR SUBMIT PROJECT MATERIALS TO THE WISCONSIN SHPO FOR THE RURAL DEVELOPMENT APPLICATION, Item 3 — Self-explanatory. Item 4 — Self - explanatory. ADDITIONAL INFORMATION USING MAPS AND AERIAL PHOTOS CAN BE FOUND ON -LINE AT: ww�N %tonozone.com Identify the name of the USGS map (if known). FLOODPLAiN MAPS CAN BE FOUND ON -LINE AT: www.fema.eov SOILS MAPS (IF NEEDED) CAN BE FOUND ON -LINE AT: hq: Jt websoilsurvey _sc.egov.usda,eovlapp° LOCATE THE PROJECT SITE ON ALL MAPS SUBMITTED WITH THE APPLICATION. ON THE USGS MAP, IDENTIFY ADJACENT STREETS AND OTHER SURROUNDING LANDMARKS NEAR THE PROJECT. INCLUDE PHOTOS OF THE PROJECT SITE. PHOTOS SHOULD SHOW THE PROJECT SITE LOOMING N- S -E -W. Packet Page -1373- (( 11/13/2012 Item 14.13.7. r IMMOKALEE HELPING OUR PEOPLE in EMERGENCIES, Inc. September 21, 2012 As a small business that is looking to grow we fully support the venture to procure funding to prepare a feasibility study to consider whether the Immokalee Community Redevelop- ment Agency (CRA) should expand its resources to include a larger building for its business development center and the addition of a food production center. Sincerely, Richard L. Heers, Executive Director -1 HOPE, Inc. Mailiq Addrrss: P. O. Box 777, Inonlokake, FL 34143 Offrm located at 2050 Commerce Ave: -Th it #7 -at the Tradepoi7 (across 846 firm the airport) telephone. 239-657-3889-FAX-239-657-3885 239 - 657 -3885 FEIV #. Packet Page -1375- r To whom it may concern: Executive Board Richard Rice, Chair Vacant, V Chair I HOPE, Inc. offers this letter of confidence and support for Rev. Dennis Norvell, Secre- your proposed application to the United States Department taryn'reasurer of Agriculture (USDA) for the Rural Business Enterprise Board Members Grant (RBEG) to procure funding for preparation of an In- Julic tlamihon -Youth }lavers Olga Hernandez- tMMCAA cubator Feasibility Study. Richard Rice Rev. Thom Street -FUMG iJMCOK As a local, small, not for profit business in Immokalee for Rev. Dennis Norvell. First the past six years, I HOPE, Inc, previously looked into the Baptist Church possibility of developing a food production center. A num- Executive Director ber of local farmers had verbally committed to even donate Richard L. Fleers crops, especially tomatoes that had begun to ripen on the Warehouse Statr vines prior to picking; we have access to volunteer labor, Dave Schubert both locally and nationally, that could .even provide some f, e Sta free labor to us in the picking process. However, because Misty Stith- receptionist our main focus is �qn home rehabbing, and our staffing is so small, we decided against proceeding any further with the concept. As a small business that is looking to grow we fully support the venture to procure funding to prepare a feasibility study to consider whether the Immokalee Community Redevelop- ment Agency (CRA) should expand its resources to include a larger building for its business development center and the addition of a food production center. Sincerely, Richard L. Heers, Executive Director -1 HOPE, Inc. Mailiq Addrrss: P. O. Box 777, Inonlokake, FL 34143 Offrm located at 2050 Commerce Ave: -Th it #7 -at the Tradepoi7 (across 846 firm the airport) telephone. 239-657-3889-FAX-239-657-3885 239 - 657 -3885 FEIV #. Packet Page -1375- r UFUNIVERSITY of FL 0-R--IDA co v CoRnty A Public Services Department IFAS Extension Agriculture Collier County' �o rrriorr i�r tiara, d,F ° Monday, September 17, 2012 Ms. Marie Capita Center Manager Immokalee Business Development Center 1320 N 15th Street, Unit 2 Immokalee, FL 34142 Ms. Capita, 11/13/2012 Item 14.6.7. 14700 Immokalee Road Naples, FL 34120 239 - 353 -4244 As the Agriculture and Small Fain-is Extension Agent with the Collier County University of Florida Institute for Food and Agriculture Science (IFAS) Extension, it gives me great pleasure to write this letter in support of and commitment to your proposed application to the United States Department of Agriculture (USDA) for the Rural Business Enterprise Grant (RBEG) to procure funding for preparation of an Incubator Feasibility Study. This proposal being submitted by you will serve to strengthen the bond (both human and economic) between the rural Collier and Immokalee Communities. I am pleased to lend appropriate University of Florida IFAS Extension educational resources to the partnership and to assist in related educational outreach outlined in the proposal. My hope is to assist in the educational and implementation of the proposed facility and later the agricultural program topic areas. In addition, Ms. Suzanne Fundingsland, Family Nutrition Program agent is slated to be working with both the citizens of Immokalee on nutrition issues and the culinary Students at Immokalee TECH for this project. Our resources will be available for any educational capacity building as a result of the visioning. As faculty members within the University of Florida System, it gives us a great deal of pleasure to provide our input into this project. Sincerely, Robert D. Halman County Extension Director/ rdhalman r?ufl.edu Agriculture Agent Packet Page -1376- OFFICERS Michael W. Sullivan Chairman of' the 130ard Wilhaum J. Burrell Vice Cha irnlan Carofyn S. Green sevrewn Robert M. Arna ll Treasurer Date Selincider Assistant Secretar y Thomas t, Fcuri�,2 f'rvsident DIRE C OIts Daniel Adams 13emard A. Davis Sherri C. terming shaadenr Dozier 0101 -Yi Fll4- G110;1111 fla rhnrn Hartman Nlichale! R. R4CK inle,v C.ieorge T. N4',11ut..lr- \\lilham I,. IMODa nicl. Jr. Judae ft. Wallace f'ack Rvy V floltort. Judge GCOrLC C. ltieharcis Chico itiver'a flelinda kvdrimuez Jon A. Simmons loseph l). Spielman MEMBER Gwdwill Industries tnternutionat. fuc. Commission on Accreditation ol'lehahi?itastion Facilities hlcsridaa Rehabilitation t.ssoc;iadon i hu Mai or ".-� Alliance Florida t_itwdx� ill A,sociation United \Va v of,1 -c:e Cbunty �titiraf{tNJ /� fi United Way'l�fY of 1e. County 11 /13/2012 Item 14.6.7. Building lives, Goodwi families, and communities- Industries of Southwest Florida, Inc. Line jot) at atone w August 24, 2012 To the staff of the Immokalee Business Development Center: This letter conveys that we fully support your proposed application to the United States Department of Agriculture (USDA) for the Rural Business Enterprise Grant (RBEG) to procure funding for preparation of an Incubator Feasibility Study. Currently, the Immokalee Business Development Center (IBDC) plays an important role in the community by providing new and existing small businesses with the technical assistant and support needed to grow their business. Immokalee is a community filled with aspiring entrepreneurs. Having an incubator within the community is a valued asset that helps in the creation of skilled/high wage jobs for the residents of Immokalee. The expansion of the center will enable staff to help more business owners. Furthermore, the addition of a food production facility within the program will allow the IBDC to focus on the individuals who are interested in food production. and those who are interested in learning how to turn their farm products into value added propositions that can be distributed beyond the borders of Immokalee. In closing, as an organization we fully support the venture to procure funding to prepare a feasibility study to consider whether the Immokalee Community Redevelopment Agency (CRA) should expand its resources to include a larger building for its business development center and food production center. Sincerely yours, Fred Richards MBA, MS Vice President of Career Development Services 4940 Baayline Drive Fort Myer-N. ILL 339171 * F'Foone. 2.19- 99-; -2106 ;; Fax:: 239- 995 -:868 n TTY: 239 - 995 -9207 N Packet Page - 1377 -1 KEN O'LEARY, President RE: Letter of Support Immokalee Business Development Center Immokalee, FL 11/13/2012 Item 14.6.7. 9530 Marketplace Road, Suite 104 Fort Myers, Florida 33912 Phone: 239- 225 -2500 Fax: 239 -225 -2559 Toll Free: 1 -866- 992 -8463 TTY: 711 JOE PATERNO, Executive Director The Southwest Florida Workforce Development Board offers this letter of confidence and support for your proposed application to the United States Department of Agriculture (USDA) for the Rural Business Enterprise Grant (RBEG) to procure funding for preparation of an Incubator Feasibility Study. Currently, the Immokalee Business Development Center (IBDC) plays an important role in the community by providing new and existing small businesses with the technical assistant and support needed to grow their business. Immokalee is a community filled with aspiring entrepreneurs. Having an incubator within the community is a valued asset that helps in the creation of skilled/high wage jobs for the residents of Immokalee. The expansion of the center will enable staff to help more business owners. Furthermore, the addition of a food production facility within the program will allow the IBDC to focus on the individuals who are interested in food production and those who are interested in learning how to turn their farm products into value added propositions that can be distributed beyond the borders of Immokalee. As an organization we fully support the venture to procure funding to prepare a feasibility study to consider whether the Immokalee Community Redevelopment Agency (CRA) should expand its resources to include a larger building for its business development center and food production center. Sincerely, F' Tames 1. Wall Business Development Director Packet Page -1378- Member: ,ME ti 11/13/2012 Item 14.6.7. I '. P:T At L- l V,MN— i'`S'tr'rkN To Prevent. To Protect. To Prevail. rd of Direction no Shapiro, it r Baron Brand August 24, 2012 it/ Corpenler Hersiin s Hinds dNwksymetz Ms. Rosemary Dillon AMonle`a"n Immokalee Business Development Center lff Kevin Rorrtbosk 1324 N 151h Street, Unit 2 .n Remington udSmith Immokalee, Florida 34142 e zoneSmith ut Tarter Dear Ms. Dillon: f Tom Weschler -d of Trustees The Shelter for Abused Women & Children fully supports your grant application to the United in Remington, States Department of Agriculture (USDA) for the Rural Business Enterprise Grant (RBEG) to it -"�.,ese ; procure funding for an Incubator Feasibility Study. °er"e150f The Immokalee Business Development Center (IBDC) plays an important role in the community Cahners igiaDolle-Pezze by providing new and existing small businesses with the technical assistance and support 4 Dinordo needed to be successful. An expansion of the center would enable staff to help more business Edwards owners, especially those who are interested in food production and distributing their farm s Fri`"be`k f Feinstein products outside of Immokalee. Fingersh e Frey Again, we fully support your grant application to procure funding for the feasibility study. If I h1CF�`r° can be of further assistance, please feel free to contact me at (239) 775 -3862. crbora Jordan t King Sincerely, lburd )'Meora POP >he Pokula r 7eiyn Pierce schwasinger Linda Clberhaus s Starkey r��r Executive Director to Waltrip ST. Webster _y White P.O. Box 10102, No pies, Florido 34101 1 239. 775.3862 1 Fox 239.775.3061 1 24 -Hour Crisis tine 239.775 -1101 Immokalee Office 239.657 -5700 I TTY 239. 775.4265 1 www.roplesshefier org I info @noplesshelter org Options Thrift Shoppe. 968 Second Avenue North, Naples 34101 •239- 434-7115 The Shelter toy Abused Women $ Children is grateful for Funding from United Way of Collier County. Department of Children 8 Families (Domestic V olence bust Fund) and private contributors Packet Page -1379- 11/13/2012 Item 14.6.7. 1: K �� .. )offers this letter of confidence and support for your r proposed application to the United States Department of Agriculture (USDA) for the Rural Business Enterprise Grant (RBEG) to procure funding for preparation of an Incubator Feasibility Study. Currently, the Immokalee Business Development Center (IBDC) plays an important role in the community by providing new and existing small businesses with the technical assistant and support needed to grow their business. Immokalee is a community filled with aspiring entrepreneurs. Having an incubator within the community is a valued asset that helps in the creation of skilled /high wage jobs for the residents of Immokalee. The expansion of the center will enable staff to help more business owners. Furthermore, the addition of a food production facility within the program will allow the IBDC to focus on the individuals who are interested in food production and those who are interested in learning how to turn their farm products into value added propositions that can be distributed beyond the borders of Immokalee. As an organization we fully support the venture to procure funding to prepare a feasibility study to consider whether the Immokalee Community Redevelopment Agency (CRA) should expand its resources to include a larger building for its business development center and food production center. Sincerely__ i e4o—e.,4 Packet Page -1380- 11/13/2012 Item 14.6.7. 1320 N 15'" Street Tel.: (239) 867 -4121 Immokalee, Florida 34142 Fax: (954) 414 -4368 Email: Man tC:zj imv ic(�ifiersoc_ncl Marie C. Capita. Experience 1998 -2000 Miami Dade Community College Miami, Florida ESOL Professor .Taught English as a Second language to foreigners, specifically Cubans and Haitians. Implemented a curriculum that enhanced their speaking skills and ability to learn the English language. Students were taught the English language whereby they could become self sufficient when seeking employment, working in an environment where English was primary language, and can communicate with others. After learning English, they were able to advance in their education. 2000 -2002 Law Offices of Keith A. Martin Lauderhill, Florida Of- Counsel Prepare motions and conduct hearings for real estate, probate, trust, guardianship and family matters. Litigate real estate matters include, not all inclusive, defending homeowners in unfair and deceptive trade practices, defending homeowners in foreclosures and representing homeowners in loss mitigation of their mortgages, prosecuting or defending quite title actions, will or trust contests, evictions, etc. Conduct probate and real estate bench trials. Also, conduct real estate closings that include, abstracting title, clearing clouds on title, preparing settlement statements, reviewing and explaining closing documents, preparing owner and lender title polices, and reconciling trust accounts. Represent general contractors in claim of lien, breach of contract and foreclosure matters. Represent sellers, buyers and corporations at closing transactions. 2002 -2009 Law Offices of Marie C. Capita, Davie, Florida Attorney . Responsible for all files that included real estate, family, business, and probate matters. Litigated probate, real estate and family matters. Mediated matters of real estate, and family. Drafted and executed pleadings and memorandums of law. Drafted and argued motions. Packet Page -1382- 11/13/2012 Item 14.6.7. Supervised acquisition and merger transactions for small businesses. Formed corporations for new businesses. Day to day responsibility included supervising and managing junior attorneys, legal assistants and interns. Also, managed human resources, which included payroll, insurance, company policy and hiring and /or firing of employees. . Title Agent - Conducted closings and represented clients in real estate transactions. June 2010 to July 2010 Synergy Legal Professionals, Miramar, Florida Document Reviewer .Reviewing, analyzing, and tagging business records of banks, financial institutions, pharmaceutical and computer software companies for purpose of discovery and trial ,preparation. 2011 to present Collier County BCC/ Immokalee Business Development Center, Immokalee, Florida Center Manager .Oversee the program for the Immokalee Business Development Center. Responsible for daily operations of the center's program. Provide start- up businesses with counseling and support, review budgets, business planning an execution, and track results over time. Maintains internal financial records, budget projections, and recruit mentors and partners for the program. Teach business related workshops and training to participants. Education 1989 -1993 Florida International University Miami, Florida Graduated with a B.A. in Finance 1994 -1997 University of Miami Coral Gables, Florida Graduated with a Degree of Juris Doctor Interests Member of the Family Law Section of the Florida Bar, Member of the Lee County Barr Association, Member of the Broward County Bar Association, help CRA in Immokalee with projects pertaining to the Haitian Community, Officer in the Immokalee Celebration of Culture, Inc., Member of the PTA. Language English, French, and Creole Packet Page -1383- 11/13/2012 Item 14.6.7. Penny Phillippi 3 10 Alachua Street Immokalee, FL 34142 239.252.2310 ** E -mail: PgjnyPjillippi@CoJ lig!ygov.net PROFESSIONAL .December 2007 —Present Executive Director, Collier County Redevelopment Agency (CRA) - Immokalee The Director of the Immokalee CRA is responsible for development, redevelopment and economic development in a rural agricultural -based community. The Director has oversight of the CRA, the State Enterprise Zone Development Agency (EZDA), the Rural Area of Critical Economic Concern (RACEC) and the Federal Enterprise Community and the Advisory Boards to those entities. The Director provides overall direction for the CRA office including, but not limited to, program development, administration, budgeting, and personnel. November 2000 November 2007 Housing Director, Highlands County Board of County Commissioners The Housing Director must plan, schedule, assign, review, and coordinate community development. Coordinate programs with other County departments, public and private organizations to develop innovative programs toward revitalization. Develop improvementplans for targetedneighborhoods. Catalyze community change, i.e., developed a Neighborhood Preservation and Enhancenxent Improvement District, Highlands County Homeless Coalition, a six - county rural Continuum of Care , a six county HOME Investment Partnership Consortia (HOME) Participating Jurisdiction (P3) and the three -county Heartland Community Land Trust, Inc.). Write, establish and implementprograms with the xesponsibility of ensuring adequate and affordable housing for present and future County residents and for households with special needs in accordance with the Housing Element of the Comprehensive Plan, Land Development Regulations, the Local Housing Assistance Plan (LHAP) and the six- county Consolidated Plan. Responsible for receipt, allocation, expenditure, evaluation, leveraging and the management of the State Housing Initiatives Partnership (SHIP) Program, Small Cities Community Development Block Grants (CDBG) (Housing, Economic Development and Community Revitalization), HOME, USDA Rural. Development and other programs associated with Highlands County's maintenance and enhancement of designated communities. Ranked Number 1 in Innovation Category for the $5 million Community Workforce Housing Innovation Pilot Program (CVVHIP). A disaster ready position required to manage a storm shelter, access damages, and plan for, garner funds and implement post disaster housing replacement and repair. July 1995 - June 2000 Senior Associate and Director of Social Investment, The Gray Group, L.L.C. Consultant and grant writer, responsible for directing The Gray Group's Southeastern operations for affordable housing programs such as HOME, S111P, State Apartment Incentive Loan (SAIL) Program, and CDBG; and social service programs such as Community Services Block Grant (CSBG). Coordinated affordable housing development and community building for governmental, non -profit and for profit sponsors. As principal lead for HOPE VI Community Development and Packet Page -1384- 11/13/2012 Item 14.6.7. PENNY PHILLIPPII Page Two Supportive Services and Family Self - Sufficiency programs in Florida and the Southeast, created, developed and implemented a flagship Fancily Self Sufficiency Program that received the National Association of Housing and Redevelopment Officials (NAHRO) 2000 Award and received the Department of Housing and Urban Development (HUD) Best Practices 2000 Award. Contracts included: 1. State of Florida, Department of Community Affairs, Community Services Block Chant Program (CSBG), designed the State program, trained Community Action Agencies (statewide) and wrote both the Model and the State Community Action Plan. 2. Assisted with the Cites of Norfolk and Portsmouth comibinW successful 1998 Empowerment Zone Application. July 1990 - July 1995 Planner, Research and Technical Assistance /Affordable Housing CatalystUmt, Division of Housing and Community Development, Bureau of Community Development, Florida Department of Community Affairs (DCA). Managed and monitored training and technical assistance contracts on SHIP, HOPE, and HOME training and technical assistance programs. Researched and assisted in drafting the Affordable Housing in Florida report to the Florida Legislature, 1991 -1994. Provided research for the State Comprehensive Housing Affordability Strategy (CHAS). Conducted, prepared and updated the annual Inventory ofPublicly Owned Lands andBuildings for affordable housing. Analyzed Strategic Policy Plans for the Regional Planning Councils to ensure compliance withFlorida Administrative Code andFlorida Statutes. Reviewed Small Cities CDBG applications from local governments for compliance with local and state Comprehensive Plans. Audited Housing Element portions of local government Comprehensive Plans and maintained an informational database. Implementation of workshops, public speaking engagements, and training and technical assistance throughout Florida for the myriad of state housing programs. Community Assistance Consultant, DCA. Negotiated, managed, and monitored Weatherization Assistance Program (WAP) and FloridaFix contractual agreements between the state and local governments and non - profits such as Community Action Agencies, Urban Leagues and Economic Development Commissions. Provided training and technical assistance to meet OMB requirements for successful audits, application of energy conservation and indoor air quality techniques, startup training, leveraging of funds, and partnership development. July 1989 - July 1990 Weatherization Specialist and FloridaFix Coordinator, Central Florida Community Action Agency (a Florida non-profit). Developed, marketed and implemented the pilot retrofit FloridaFix Program. Marketed the program to churches, civic organizations, and local governments via presentations and the media. Prepared successful grant requests. Inspected homes, estimated repairs, purchased materials, supervised contractors and volunteer construction crews. Provided community outreach for the WAP and FloridaFix to three of Florida`s rural counties. Packet Page -1385- 11/13/2012 Item 14.13.7. PENNY PDILLIPPI Page Three EDUCATION University of Wisconsin, Green Bay, 1978 BA in Hcunanistic Studies, Dual Major, Education and Anthropology Florida State University, Graduate Studies in Cultural Anthropology AFFILIATIONS Heartland Community Land Trust, Executive Board, 2007- Present South Florida Regional Planning Council CEDS Committee, 2007 Sebring )!Ridge Museum, Executive Board 2006- Present Highlands County Coalition for the Homeless, Inc., Executive Board, President 2002 -2006 Florida's Heartland Rural Consortia for the Homeless, Inc., Executive Board, President 2003 -2006 Neighborhood Lending Partners of West Florida, Advisory Board, Member Christian Contractors Association, Inc., Advisory Board, Member ReBuilding Together, Inc., Advisory Board, Member West Florida Regional SHIP Steering Committee, Member 2000 - 2007 Florida Community Development Association, Inc., Member American Friends Service Committee (Southeastern Region Executive Committee -1994) Florida Housing Coalition, Board Member —1990 Enrolled member of the Cherokee Nation of Oklahoma PIUBLI$HIKD MATERIALS Native Voices published in Common Groung The Delta Endangered, Spring 1996, Vol. 1(1), Penny Jessel http://www.liDs-gov/histM/archeoloU/cgLvoll numl /voices htm Disaster: Hurricane Andrew and the Miccosukee published in Anthropologists and Indians in the New South, Rachel Bonney mud Anthony Paredes, editors (University of Alabama Press, 2001), "A Disaster", Penny Jessel. This book received the prestigious honor of "Academic Title of the Year for 2002" lLttp:// www. uanress .ua.edti /Catalosz/ProductSearch aspx? search= Anthropologist9+and+lndians +i n+the+New +South Packet Page -1386- 11/13/2012 Item 14.6.7. 0 FLORIDA GULFCOAST utgert College of Business UNIVERSn October 5, 2012 Ms. Marie Capita Immokalee Business Development Center 1320 N 15" Street, Unit 2 Immokalee, FL 24142 Concept Proposal for Feasibility Study of New Business Center Dear Ms. Capita, In response to your request, please find concept proposal to conduct a feasibility study for the Immokalee CRA new proposed Business Center. The feasibility study would be conducted on the below proposed center and would include the following approach. Proposed Business Center: The proposed Business Center is a 10,000 square foot building which will include a community kitchen, classrooms, offices, and retail space. The building would be located across from the Seminole Casino in Immokalee. The building would support the current CRA /Business Development efforts to provide business assistance to the local businesses and the community. Proposed Feasibility Study The study would involve the following steps and task: Proiect Preplanning: As part of the first task, the project team will meet with CRA staff and acquire plans and drawings, and sign the project contract. Task 1: Summarize the local economy and demographics: The first step or task of the study would utilize the latest Census data to provide a summary of the existing population, income, education levels, and employment for the CRA service area. This information will be important to provide an understanding of the service area and to document the need for services. Task 2: Review New Business Center Project, construction and operating plans: The second task of the study would involve gathering information about the construction of the new proposed building. This task would include interviewing key CRA staff and building consultants, as well as conducting a comprehensive review of building plans, capital costs, matching funds, and operating plans and costs. Task 3: Literaturelinternet search: The third task of the study will be to conduct a comprehensive review of existing literature, noting previous studies and reports on similar facilities and structures using community kitchens. This task will be used to not only provide informative information on other similar facilities but also to identify best practices and to establish other business center benchmarks. 239 - 590 -7300 SUNCOM:731 -7300 FAX: 239 -590 -7330 http: / /www.fgcu.edu /cob 10501 FGCU Blvd. South e Fort Myers, Florida 33965 -6565 An Affirmative Action Equal Opportunity Employer • A member of the Stele Urdversity System of Rmide Packet Page -1388- 11/13/2012 Item 14.6.7. 0 ftomm GULFC4AST utgert College of Business UNIVERSITY Task 4: Identify and Interview managers of similar centers: As part of developing similar business center benchmarks and identifying best practices, this task will involve two face -to- face or conference call interviews with managers at two similar centers. These information gleamed from these interviews will also help the CRA to better understand their business models, services offered, and challenges they face. Task 5: Hold a focus aroup of local business managers: This step will involve a focus group session. The research team will work with Immokalee CRA in selecting key individuals from diverse industries and positions to participate in the focus group session. The focus group will be a facilitated session and qualitative techniques will be used to solicit feedback and information from the focus group participants. It is anticipated that the local business managers and owners will provide invaluable information on the new business center and the services to be offered. Task 6: Interview five (5) key Stakeholders: The final task will involve interviews with five (5) key stakeholders. As part of this task, a specific interview instrument will be developed that includes the topics and questions to ask each stakeholder. The instrument will include both closed and open ended questions. It is anticipated that the CRA staff will help to identify the key stakeholders that will be interviewed. Task 7: Analysis of Findings and Write Final Report — The team at RERI will develop a report that provides the findings and recommendations for the new business center. As part of this a draft of the final report will be developed and submitted to CRA for their review and feedback. Approximately 2 weeks after this a final report will be submitted to the CRA. Proposed timeline The project would be expected to begin in late October or early November once funding is obtained for the study. The following provides approximate times to complete study tasks: 1. Project start- meet with staff, acquire plans and drawings, sign contract —two to three weeks 2. Summarize the local economy and demographics — Two to three weeks 3. Review New Business Center project, construction and operating plans - Three to four weeks 4. Literaturelinternet search — two to three weeks 5. Identify and Interview managers of similar centers- four weeks 6. Hold a focus group of local business managers — six weeks 7. Interview five (5) key Stakeholders — six to eight weeks 8. Analyze information, develop recommendations and write the report — five to six weeks 9. Provide for Client review of the draft document and finalize report — two weeks It will take approximately four to six months to complete the project and the overall cost for the project would be a fixed fee amount of $35,000. 239 - 590 -7300 SUNCOM:731 -7300 FAX: 239-590-7330 http: /Iwww.fgcu.edu /cob 10501 FGCU Blvd. South • Fort Myers, Florida 33965 -6565 An Afbmafrie Action Equal Opporturdty Employer • A member of the State University System of Florida Packet Page -1389- 11/13/2012 Item 14.6.7. 0 (�'ff FLORIDA lJULF' COAST utgert College of Business U�nvE[�srtY Gary Jackson, Ph.D. Director, Regional Economic Research Institute (RERI) Lutgert College of Business Florida Gulf Coast University Phone: 239 590 -7319 Email: gjackson @fgcu.edu 239 -590 -7300 SUNCOM:731 -7300 FAX: 239 -590 -7330 http./Awiw.fgcu.edu/r-ob 10501 FGCU Blvd. South . Fort Myers, Florida 33965 -6565 An Affirmative Action Equal OpportLOty Employer a A member of the State University System of Hodda Packet Page -1390- 11/13/2012 Item 14.6.7. .:f;0.. 2'1410, O Board of Collier County Commissioners _ ..... ... . _ - - - -_. Donna Fiala Georgia A. Hiller, Esq. Tom Henning Fred W. Coyle Jim Coletta District 1 District 2 District 3 District 4 District 5 October 2, 2012 Richard Machek, State Director P.O. Box 147 4440 NW 25th Place Gainesville, FL 32614 -7010 Dear Mr. Machek: I am writing in regards to the Immokalee Business Development Center RBEG grant application. The purpose of this letter is to request that your review board take the following factors into consideration when awarding discretionary points to the Immokalee Business Development Center/ Feasibility Project. In rating a specific project, your review board compares the unemployment rate of the State to that of the County where the project is located. In our case, although the project is located in Immokalee, the unemployment rate of Florida is compared to that of Collier County, not Immokalee. Collier County is composed of the cities of Naples, Marco Island, Everglades Cities, and the unincorporated areas of Golden Gate, Immokalee, and Ave Maria. Although Collier County is known to have one of the strongest economies and the median household income ($58,106.00) is greater than that of the State of Florida ($47,661.00), the community of Immokalee does not share these qualities. According to 2010 estimates, the median household income in Immokalee is 39.9% less than the Florida average and 45.2% less than the National average. Immokalee has long been recognized as a distinct community within Collier County. Its economic base, geography, and demographic make -up are different than the rest of Collier County. Immokalee is a place where the main source of employment opportunities is limited to unskilled agricultural labor which is seasonal in nature. Furthermore, Immokalee is designated by the Florida Governor's Office of Trade, Tourism and Economic Development (OTTED) as a Rural Area of Critical Economic Concern (RACEC). Despite the fact that Immokalee is located in Collier County, l believe that any comparison that is made must take Immokalee's unique characteristics into consideration. To do otherwise will negatively impact the project for scoring purposes. I appreciate your time and attention to this matter. Sincerely, ComrWissioner Donna Fiala 3299 Tamiami Trail East, Suite 303 • Naples, Florida 34112- 5746.239- 252 -8097 • FAX 239. 252 -3602 Packet Page -1391- 11/13/2012 Item 14.6.7. Quote To (Prepare an Incubator Feasibility Analysis For the Immokalee Business Development Center July 31, 2012 Submitted to Marie Capita, Center Manager Immokalee Business Development Center 1320 N 15th Street, Unit Immokalee, FL 34142 239- 867 -4121, Ext 207 MarieCaPita aacollieraov.net www.lmmokalee.biz Submitted by Jim Greenwood, President Greenwood Consulting Group, Inc. 1150 Junonia Sanibel, Florida 33957 239 - 395 -9446 Gail -iim .g jgreenwood.com www.q-i-greenwood.com Packet Page -1392- 11/13/2012 Item 14.6.7. 1. Understanding of Project The Immokalee Business Development Center (IBDC) is a successful, existing small business incubator associated with the Immokalee Community Redevelopment Agency (CRA). Its leadership has determined that the IBDC should consider expanding its resources to include a building for its business development and food production center. To determine the viability of this expansion, and in turn support a grant application to cover its cost, the IBDC is seeking a feasibility study by an independent third party. The purpose of this document is to describe how our firm, Greenwood Consulting Group, Inc. (GCGI), would approach this feasibility assessment for the IBDC. It also provides an estimate of the cost of this assessment, and an approximate time frame for GCGI to conduct it. 2. Scope of Work. Greenwood Consulting Group, Inc. (GCGI) is very experienced with incubator studies, particularly feasibility analyses and work /business /implementation plans. With an extensive project list of more than 75 incubator consultations across the United States and in Canada, GCGI has performed approximately 53 feasibility analyses and prepared approximately 24 work /business /implementation plans. This breadth of experience is unparalleled by any other incubator consultant in the country, particularly given that the principals of GCGI also have over 20 years of collective experience managing and operating business incubators. Put another way, we know and appreciate what it takes to run a business incubator day -to -day, and we apply that experience in our assessment of the feasibility of a proposed incubator. In the IBDC project, GCGI will use its proprietary incubator feasibility assessment model, which we developed while we were under contract with The Ohio State University. This model assesses incubator feasibility against six criteria: • Is there a clear and defined market of entrepreneurs and others of sufficient size and readiness to achieve a high level of occupancy in the incubator? • Is there at least one candidate organization capable and willing to champion the incubator project? • Are there suitable locations (either existing buildings or buildable lots) for the incubator, and is there reasonable consensus among potential tenants on a preferred location? • Are there unmet areas of business assistance needed in the community, and can the incubator play an important role in providing that assistance? • How much money will be required to create and initially operate the incubator, and can sufficient sources of development funding be identified that equal or exceed the required amount? • Does the incubator have a reasonable chance of achieving financial self sustainability (or "break even ") after its first few years of operations? Packet Page -1393- 11/13/2012 Item 14.13.7. GCGI envisions that these criteria need to be modified for the IBDC assessment, since this is an operating business development center with a proven track record. We believe the primary modifications involve evaluating how the leadership of IBDC may modify its operations and management to include a new incubator facility, and in turn be even more effective and successful in the future. Further, the second criterion is largely irrelevant, given the IBDC is an operational program being championed by its development center director and the Immokalee CRA. GCGI's proprietary incubator feasibility model allows for both qualitative and quantitative assessment of the incubator's potential, while most consultants only provide qualitative analyses. With the quantitative assessment, it is easier to seethe areas of strength and weakness in the incubator's feasibility potential, which helps the champion focus on exploiting the incubator's strengths and mitigating its weaknesses. And, in the case of an incubator that is not feasible, the GCGI incubator model clearly shows the serious weaknesses that led to the infeasibility conclusion, and what would have to be overcome to change the proposed incubator from "infeasible" to "feasible." GCGI proposes to conduct the feasibility study for a new building for the IBDC by completing the following 10 tasks: Task 1. Review relevant literature and databases to understand the area's overall economy. GCGI would rely on the IBDC.to provide copies of any relevant documents that will help us come up to speed quickly on the economy of the IBDC service area, and its challenges and opportunities. GCGI would provide written and electronic databases at its disposal; for example, GCGI will use these data to determine the number of microbusinesses in the area, by industry group, and trends in those numbers over time. Task 2. Hold kick off meeting with IBDC team members to clarify the analysis we will be performing, receive suggestions as to persons we should interview, and respond to any questions or concerns or suggestions about our study. GCGI would review this work plan, and ask for suggestions for changes and recommendations for persons who we should interview. Any questions about content, timelines, or methodologies also would be addressed at this time. Task 3. Assess the community's economic development goals in light of our experience with incubators and knowledge of their capabilities as an economic development tool. GCGI is a leader in discovering innovative ways to utilize incubators to achieve a wide variety of economic development goals, so it is possible that we can recommend even more ways that the IBDC incubator could benefit its service area. However, we do not believe that incubators are panaceas that can solve all economic and social problems in a community. We will use this balanced perspective and experience to evaluate potential expansions in the role played by the IBDC in economic, community and business development. 2 Packet Page -1394- 11/13/2012 Item 14.8.7. Task 4. Conduct interviews with IBDC team members; local business and civic leaders government officials, foundation representatives entrepreneurs; potential incubator partners and funding sources, food producers; business assistance service providers (non-profit and for profit); commercial /industrial realtors; and others who are relevant to the incubator feasibility questions. This is a time intensive effort to meet one -on -one with a variety of potential sources of information about the economy, entrepreneurial activity, employment trends and challenges, economic and community issues, preferred locations for an incubator, and potential sources of funding. Tasks 1 and 2 will help identify the appropriate persons and entities to interview. These interviews will be conducted by GCGI during multiple site visits to the Immokalee area. Task S. Disseminate a market survey via seminar, website, direct mailing, and other means to ensure widespread distribution to existing and potential entrepreneurs in the IBDC area, then compile and interpret the responses. GCGI believes that evidence of an adequate market for the expanded I BDC is a crucial part of the feasibility analysis, and that the best evidence of that market comes from expressions of interest by potential tenants and clients. In addition to helping quantify the market for the incubator, another outcome of this exercise is a database of specific individuals and their companies who might be targeted as possible tenants of the incubator, or who can be contacted in the future regarding their opinions and preferences for a new, expanded IBDC. The survey also will ask about the kinds of services and facilities in the incubator that are desired by prospective tenants, and preferred geographic location(s) for the proposed incubator facility. GCGI has successfully used several means for disseminating a survey to help identify candidates for business incubators, and we propose to use some of those techniques here. One is a free evening seminar on a topic of interest to IBDC area small and start up businesses that is promoted widely in the community, with assistance from local entities. The seminar would include a brief discussion about the proposed expansion of the I BDC. Attendees of the seminar will be asked to complete surveys that identify themselves, their companies, and their potential interest in the incubator. The survey also asks the attendees to identify any others who did not attend the seminar but who should be contacted about the proposed incubator. Surveys also could be completed "on line" for those who prefer to complete and return them electronically (GCGI has found survey response levels are much higher in some of our projects when respondents can use the convenience of completing the survey electronically) at a website. GCGI would propose to also disseminate the survey to existing IBDC clients to ensure that their opinions and preferences are considered in their assessment. Ample attention should be paid to existing clients, especially if the IBDC hopes to retain them if it adds a new facility. 3 Packet Page -1395- 11/13/2012 Item 14.6.7. GCGI will discuss and decide with the IBDC team what other options for dissemination of the survey (such as direct mailings and inserts in local newspapers and Chamber of Commerce newsletters) are utilized in this project. After allowing suitable time for responses, GCGI will tally and interpret the results, and include them in the analysis in Task 7 and in the final report in Task 10. Task 6. Tour existing buildings and vacant parcels to assess availability and cost of alternative locations for the expanded IBDC. GCGI believes that both new construction and renovation of an existing building should be explored as alternatives for a new location for the incubator. GCGI would work with the IBDC team (and possibly a commercial real estate professional familiar with the area) to identify a list of possible sites (both vacant as well as those that could be cleared of dilapidated structures) and existing buildings, and to refine that list to the most promising locations based on factors such as availability, cost, size, zoning, and compatibility with surrounding uses, and opportunity to have positive impact on the neighborhood. The list of available properties shown on the IBDC website and offered by the Immokalee CRA likely will be a good place to identify candidate properties. GCGI also will interview appropriate local realtors and contractors to collect information about rental rates and construction (including renovation) costs for commercial and industrial space. Task 7. Analyze the data from Tasks land 2, and 4 through 6, against Greenwood Consulting Group, Inc.'s proprietary incubator feasibility model. The data collected in these tasks will provide the necessary inputs for GCGI to evaluate the IBDC against the six criteria in our feasibility model. Both qualitative and quantitative evaluations will be made as part of this analysis. GCGI will rely in part on our extensive experience in other communities with existing or contemplated incubator programs, and on our experience operating incubators, in assessing the feasibility of the proposed expansion of the IBDC to include a new facility. Task 8. Conclude whether a new and expanded IBDC is feasible, infeasible, or conditionally feasible, with any shortcomings highlighted and mitigating measures recommended. By weighting each of the six criteria in its feasibility analysis, GCGI is able to sum together the feasibility scores on all criteria to get an overall value that we can interpret based on similar analyses in other communities that have considered starting incubators or adding new facilities to their programs. The score received by a criterion, plus the importance weight of the criterion, helps identify those areas where the most improvement can be made in terms of feasibility. GCGI then identifies specific recommendations for how those improvements might be achieved to increase the probability of success of a new IBDC facility. However, if the overall feasibility score is very low, and opportunities for improving that score are 0 Packet Page -1396- 11/13/2012 Item 14.6.7. limited, then GCGI is prepared to conclude that a new IBDC facility is infeasible, and explain why. GCGI has seen too many situations where an ill- advised incubator program was started in a community, only to languish for years (and consume enormous amounts of money and other scarce resources) and eventually be shut down --we would much prefer to advise the IBDC team that a new incubator facility is infeasible than to cause this unfortunate situation to occur here. And, even in this worst case scenario, GCGI is confident that we will be able to offer suggestions on how the existing IBDC could be improved in terms of its operations, programs, and /or services. Task 9. Prepare draft feasibility report. This report will summarize the data collected and analyzed during the feasibility study, and the outcome of the analyses. It also will include recommendations for next steps, which will be dependent on the conclusion about feasibility and the strengths and weaknesses identified during the feasibility analysis. Task 10. Make presentation about feasibility conclusion to the IBDC leadership, and at the IBDC's option, other community leaders, and prepare final report. This task allows for dissemination of information to the IBDC staff, Immokalee CRA, and others about the feasibility project and its conclusions and recommendations. It begins with dissemination of the draft feasibility report from Task 9 that summarizes the project and our findings, and continues with a presentation to appropriate - persons invited by the IBDC Team. GCGI will receive comments during and after this presentation, revise the draft feasibility report accordingly, and issue the final report. The final report will be an important addition to the IBDC's proposal to the Federal Economic Development Administration (EDA) for grant funding for the proposed new facility. At the conclusion of the feasibility study, the IBDC will be expected to either terminate the expansion /relocation project (if a new incubator facility is deemed to be infeasible) or continue on to developing the business /implementation plan. GCGI would be pleased to work with the IBDC on creation of that plan if requested to do so, or support creation of the proposal to the EDA for grant funding. 3. Outcomes of the Feasibility Assessment At the conclusion of the feasibility assessment, IBDC would have the following information: a. A thorough final report documenting the feasibility assessment process, conclusions and recommendations. A typical incubator feasibility report produced by GCGI consists of approximately 75 -90 pages of detailed information. The text will address strengths and weaknesses of the proposed new IBDC facility relative to the six criteria in our incubator feasibility model, Packet Page -1397- 11/13/2012 Item 14.B.7. and scores indicating how well the proposed project meets each criterion. The report then will show the overall feasibility score for the proposed incubator, and compare that score with the "average" and "ideal" incubators. The report text concludes with a conclusion about feasibility of the proposed incubator facility and the most significant strengths and weaknesses, a recommendation about whether to continue with the project, and recommendations for additional actions to advance the project (assuming it is feasible). The report is supplemented typically with several important appendices, which show tallies for the market surveys collected during the feasibility assessment, and cash flow projections for several scenarios for the first five years of operations of the new incubator facility. This report serves several important functions: • It can guide the IBDC leadership in deciding whether to continue pursuit of a new facility. • It will indicate what parameters or characteristics are important to the new IBDC facility being feasible and financially viable. • It specifies areas of weakness or concern on which IBDC can focus resources to mitigate factors that would detract from the new incubator facility's success (valuable whether the new facility proves feasible or not). • It can be used as the basis for a plan of action to move the IBDC expansion /relocation project forward. • It will be ample documentation to the EDA and other funding sources regarding the viability of the proposed I BDC expansion. b. Contact information and other date for potential tenants and clients of the expanded IBDC. As part of the feasibility assessment, GCGI will collect information about potential tenants and clients of the project through the market survey described in Task 5 of the Scope of Work. At the conclusion of this project, GCGI will produce an Excel spreadsheet with all of the data collected from these market survey respondents, including contact information. This can be very valuable information, as a list of entrepreneurs and small businesses with whom the IBDC should be in contact as it develops the expanded incubator, and who may be enticed to become tenants and service users in the new incubator facility. 4. Compensation & Fees All of the work proposed for the IBDC feasibility assessment will be done by Gail and Jim Greenwood, the owners and principals of Greenwood Consulting Group, Inc. The Greenwoods led and did the bulk of the work on the 75+ incubator consulting projects done by GCGI, and jointly have over 20 years experience operating and managing small business incubators. 0 Packet Page -1398- 11/13/2012 Item 14.13.7. The hourly fee for Jim Greenwood is $105. Gail Greenwood's time is billed at $55 per hour. Costs for travel, printing, and other direct charges are billed at actual cost. GCGI proposes to do the work outlined in the Scope of Work section of this Qualifications Statement for a total of $25,860, as broken down in Table 1. Of that, only about $675 is related to travel, since GCGI can take advantage of its close proximity to Immokalee to minimize those costs. Table 1. HOURS & COST FOR IBDC FEASIBILITY ASSESSMENT PR Mysdr d� J��'SVIIY f r^4 4 �i"''1° r f �cr A"'Tf'r rn+ ^+ CI rf ?r. G i F r 170UR5 , �,lOLiR TRAVE4J x y, SUB r � t A 2 A14.1 rM E;RI30 AL5 FEASIBILITY ASSESSMENT ,:�, r ._. ,+,u+,.. ,. r . �: aa;., .. �.,,:.. h. n.< >' ..,: F.r .,..Mr. -�; _, .,n � r,;:u. .L. �i r ..;A, r f!, ..,(,T I� , ..�?,r Y:,.m � .'' ✓. �: i c l .,, ,.a rrJ:,, t, ., ,.. `2. Kick off mtglconference cal{ 16 2 �>;<� El3,GOals/lncub compatlbllltY` n `;;6 4 Interviews 60 450 6 Real estate assessment 20 C 7 q L 8 Feasibillty conclusion $ 10 Presentation, final report 20 _ Total Cost by Category ''$24,360 $ 825 $675 $25,860 .f GCGI recognizes that this may exceed the budget available for this project. If so, then we are willing to negotiate a reduced scope that will bring the feasibility assessment in line with that budget. 5. Qualifications of GCGI GCGI has performed over 75 incubator analyses throughout the United States and in several provinces and territories of Canada. Our work ranges from feasibility analyses and needs assessments for proposed incubators, to operational assessments for existing ones. Of particular relevance to the IBDC feasibility assessment is GCGI's incubator consulting experience in the following categories: • 53 feasibility assessments • 16 projects involving existing incubators • 19 college or university - related incubator projects • 9 incubator projects in Florida • 11 incubator projects serving populations with substantial minority representation • 29 projects seeking funding through the Economic Development Administration • 5 projects including food production or kitchen incubation components 7 Packet Page -1399- 11/13/2012 Item 14.6.7. A complete list of GCGI's prior and current incubator consulting projects is available on request, as is a list of references who can attest to the high quality of our work and the soundness of our approach. GCGI's knowledge of how incubators work and what is required to create a successful incubator program is not limited to its extensive consulting project list. GCGI's principals collectively have over 40 years experience in the incubator industry, including 22 years managing and operating business incubators. GCGI's President, Jim Greenwood, who will lead the IBDC feasibility analyses, has served on the Board of Directors of the National Business Incubation Association (NBIA), and was a founding member of state incubator organizations in Florida and Georgia. He has been a speaker at every NBIA annual conference since 1989, and was co- developer and co- presenter of the original NBIA Fall Training Institutes for incubator developers and managers. He is a contributing author to several NBIA publications and has consulted on other NBIA books, such as the NBIA guide to developing business incubators. He also has taught several "webinars" for NBIA, on topics such as feasibility studies and incubator funding sources. Mr. Greenwood also is a certified economic development finance professional, as designated by the National Development Council. His interest and expertise in economic development finance helps ensure that the financial viability of a proposed incubator, like the expanded IBDC, will be carefully analyzed with a goal of identifying one or more scenarios where the incubator can achieve financial self sustainability in its operations. 6. Timeline for Completion of Feasibility Study Based on our extensive experience preparing feasibility studies for incubators, GCGI estimates that 90 days will be required to complete this project. Table 2 on page 9 indicates the time frame for the tasks GCGI proposes to complete as part of the IBDC facility expansion feasibility study. Reasonable adjustments to the schedule can be made to accommodate client needs and preferences. A Packet Page -1400- 11/13/2012 Item 14.6.7. Table 2. TIMELINE FOR IBDC EXPANSION FEASIBILITY ASSESSMENT Task Month #1 Month #2 Month #3 1. literature & data review 2. Kick off mtg /Conference call s 3. ED Goals /Incub compatibility 4. Interviews 5. Market survey 6. Facility assessment 7. Financial analysis 8. Analyze new IBDC against feasibility criteria 9. Draft feasibility report 10. Present conclusions, finalize feasibility report Packet Page -1401- 11/13/2012 Item 14.13.7. Charles F. D'Agostino, MBA Developmental Consulting LLC 165 Nelson Drive Baton Rouge, Louisiana 70808 225 -921 -0900 July 24, 2012 Marie Capita Center Manager Immokalee Business Development Center 1320 N 15th Street, Unit 2 Immokalee, FL 34142 Dear Marie: Attached is a proposal for developing a business incubator feasibility study / business plan for Immokalee Business Development Center. As you are aware, I have 24 years experience in the business incubation industry as a practitioner, developer and consultant. I founded the Louisiana Business & Technology Center in 1988 and have continuously been its only executive director for the last 24 years and am looking forward to beginning my 25th year in November 2012. Also, I have served six years on the board of the National Business Incubation Association and I am currently serving my third three year term on the board of the Association of University Research Parks where I serve as first vice president. During this career, the LBTC at LSU has been awarded the 2005 Randall Whaley Award as the National Business Incubation Association's Incubator of the Year and in 2009 named the US Department of Commerce — Excellence in Economic Development Award. The LBTC is also designated as a NBIA Soft Landing Incubator for International Clients and the US Department of Energy Clean Energy Incubator. I will bring all this knowledge and expertise in business incubation to Immokalee and your group. I have done consulting for incubators and economic development groups in Florida, Louisiana, Mississippi, Texas, Maine, Virginia, Connecticut, Colorado, Italy and Indonesia. I look forward to working with you on this project. I am currently completing incubator /research park studies and plans for Texas State University, Sam Houston State University and the city of Lake Charles, Louisiana. Once you have reviewed the outline for action and the proposal, please call if you have any questions or need more information. Sincerely, Charles F. D'Agostino President Packet Page -1402- 11/13/2012 Item 14.6.7. Proposal To Develop a Feasibility Study / Business Plan for an Incubator for the Immokalee Business Development Center (IBDC) Immokalee, Florida Prepared for: Marie Capita Center Manager Immokalee Business Development Center 1320 N 15th Street, Unit 2 Immokalee, FL 34142 Immokalee ;t "G KALE BIZ 3y ILBusiness Deyda{pmeni Censer Prepared by: Developmental Consulting LLC Charles F. D'Agostino, President 165 Nelson Drive Baton Rouge, Louisiana 70808 July 24, 2012 Packet Page -1403- 11/13/2012 Item 14.6.7. Proposal To Develop a Feasibility Study / Business Plan for an Incubator for the Immokalee Business Development Center (IBDC) Immokalee, Florida Introduction Immokalee Business Development Center is applying for a RBEG grants for rural projects that finance and facilitate development of small and emerging rural businesses and other economic development tools to stimulate rural economies. This funding source has been an excellent partner in business incubator development in rural communities. Developmental Consulting LLC is on the approved USDA consultant list in Louisiana and has been funded to conduct studies paid for from these funds in Mississippi and Florida also. The USDA has been very active in fostering assistance to businesses by funding entities such as the IBDC. Over the past years, Immokalee and southwest Florida have aggressively marketed itself as a great place to work, operate a business, play and live. Because of Immokalee's proximity to the Florida coast and many vibrant communities, it offers business and industry a vibrant location near major markets and on excellent transportation arteries, while at the same time offering the quality of life that is associated with country living. The economy is based on agriculture, manufacturing, recreation, transportation, marine industries and retail / wholesale operations. As a complimentary economic development strategy, the leadership is interested in developing a business incubator to provide a place and focal point for entrepreneurs and small business owners in the community. Florida Gulf Coast University is another important ingredient to the overall economic development strategy that centers on providing entrepreneurial assistance and training to area residents. Business incubators have historically provided the infrastructure, management assistance and business support services that many entrepreneurs and small business owners need to start and grow their businesses. The Immokalee Business Development Center can utilize the incubator programs to develop entrepreneurs that will create technology businesses with high quality and high paying jobs. In addition, by incorporating the programs of the Small Business Development Center at Florida Gulf Coast University, the incubator clients can receive proven business assistance and training programs to insure that they will have the highest probability for success. Business incubators can meet this need and assist these entrepreneurs create businesses that are more likely to survive and grow. It is critical that Immokalee's leadership continue to develop effective economic development strategies to keep the county competitive in this global economy and in a time when the financial markets are experiencing serious readjustments and restructuring. Business incubation is an important component for the local economy to remain competitive in the years to come. Packet Page -1404- 11/13/2012 Item 14.13.7. That is why it is wise for the local stakeholders to contract with an experienced incubator consultant to prepare a feasibility study/ business plan in advance of moving forward on the plan to establish the business incubator. In addition, it is critical that the stakeholders select a consultant that has practical experience in developing and operating business incubator programs and how to establish professional networks and long term funding strategies. The business incubator is a community resource providing assistance and facilities that create an environment that will stimulate small business formation, job creation, and economic diversification. An incubator is a focal point and catalyst that facilitates business creation, growth, and survival. Business incubators are more than just a physical facility in which to operate within and a provider of shared services and equipment. Incubators are dynamic facilities that offer an environment for financial security and growth. Incubators also must link with institutions of higher education as well as the local professionals in the community that can provide technical assistance and consulting services to the incubator clients. This project will show how to establish these networks and relationships. A true business incubator must include the counseling and management assistance services that give the start -up businesses access to the resources and networks that are normally not available to small start- up companies or home -based businesses. These technical resources include access to area universities, the local community colleges, Small Business Development Centers, and professionals in the community that can provide legal, accounting, financial and marketing resources. Florida Gulf Coast University currently operates the SBDC that covers Immokalee and the IBDC provides a full array of counseling and training programs necessary for successful business incubation. Another resource to be tapped is the NASA Kennedy Space Center and its many contractors and federal labs operating in the region. "Business Incubation Works" - Business incubators have proven that they can have a significant influence on the economy of the area in which they are located. A recent study conducted by the U.S. Department of Commerce — Economic Development Administration and the National Business Incubation Association (Charles D'Agostino was a member of the LABIA board of director from 1992- 1998) published the following statistics which were updated in the 2009 State of the Business Incubation Industry.: • The average business incubator will create 468 direct jobs and 234 spin-off jobs within its first five years of operations. • Since 1988, incubators nationally have accounted for over 500,000 jobs. • For every fifty (50) incubator graduate jobs another 25 community jobs are created. • Business incubators return $30 for every $1 of public funding invested. • The return on local tax revenues on public dollars invested is $4.86 to $1. • The survival rate of incubator graduates is 87 %, while 75% of non - incubated startups fail within their first five years. • Over 84% of the graduates stay in the community in which the incubator is located upon graduation. • -The average size incubator is 37,000 square feet and has 25 tenants. • Business incubators work, and have a favorable cost - benefit ratio. Packet Page -1405- 11/13/2012 Item 14.6.7. Business incubation is a dynamic process. It requires total community involvement and commitment by all of the stakeholders to be successful. An incubator must be run like a business and have a working business plan that defines the goals, objectives, implementation and operational strategies. As client businesses must have a business plan, so must the incubator. The proposed business plan prepared by Developmental Consulting LLC will be the blueprint for the development of a successful business incubator in Immokalee. 11. Scope of Work The study will address each of the listed questions including: • Critical Mass and Current Economic Status of the local economy • Demand Analysis (entrepreneurial climate in the area) • Property Assessment/ Building and site analysis and recommendations • Program Design and Optimum Size of Facility • Organization and Governance • Cash Flow Models and Funding (Capital and Operational) • Concept plan and capacity study for the incubator. The business plan as outlined requires several major tasks. To conduct these tasks properly, the research project and feasibility study must include primary research of historical and economic data, personal interviews and observations, strategic planning sessions with the community leaders in the area, and interviews with governmental, business, professional, and industrial leaders in the Immokalee region. In addition, the study will include an analysis of successful business incubator models that can be replicated by the IBDC. A. Interviews, surveys, & data collection A market study will be conducted by interviewing the managers, boards, and staff of the following organizations: • Local community governmental officials from Immokalee region. • Municipal officials from Immokalee. • Economic development officials operating in the county including the utility companies, the chambers and state economic development officials. • Community leaders recommended by the IBDC. • Practitioners from Florida Gulf Coast University and the director of the Small Business Development Center. • The Florida Economic Development officials and their regional reps. • Major employers and industry leaders in the area • Technologists and Federal Labs'in the region (NASA Kennedy) • Attorneys, accountants, and other professionals, and • Financial institution (banking, angel networks and venture/ equity leadership). Packet Page -1406- 11/13/2012 Item 14.13.7. B. Market Analysis A data base will be developed based on interviews with the major points of contact for entrepreneurs and start -up companies. These include IBDC, bankers, attorneys, accountants, chamber of commerce staff, city and county officials, and other stakeholders in the project. A survey will be taken to determine the number of home -based businesses in the area that may become incubator tenants. A resource inventory will be conducted to determine what types of tenants are most likely to be attracted into an incubator setting. Incubators can offer valuable services to industry sectors such as the construction trades, technology providers, food product manufacturers and artists. Local manufacturing and technology businesses will be inventoried to determine the potential for spin off businesses and the creation of new businesses to supply goods and services that are currently being purchased outside of the area. The following market area data will be collected to make recommendations as to the feasibility of the project: • Number of start-up businesses for the past three years • Number of failed businesses in the last three years • Number of home -based businesses in the service area • Number of new commercial utility hook -ups for the last three years • Number of permits or occupational licenses issued • Number of clients handled by the IBDC, SBDC or university faculty and staff • Survey of attorneys, accountants, and bankers on entrepreneurial activity for the past three years • Survey of patents or intellectual property developed by area companies C. Financial Model A model will be developed to project the financial viability of the project. The ultimate plan is to establish the incubator with financial self- sustainability as the major goal. In addition, it is important to have a sound financial plan for the incubator so that the executive director and staff can concentrate on assisting small business clients and not be focused on fundraising to keep the incubator open. Historically, business incubators do not generate sufficient cash flow to cover mortgage or lease cost of occupying a building. D'Agostino will estimate the size, number and arrangement of the offices and workshops within the incubator. A space allocation plan will be developed so that the architects will know how to allocate the interior space for the building. A financial model will be constructed to estimate the operational costs for the incubator. It is assumed that the construction costs for the facility will be raised from federal and state grant funding and no debt service or lease will be required for operations. Potential sources of funding will be suggested for both infrastructure and operational cost. The financial model developed, as part of this business plan will project income and expenses based on the size and type of incubator developed. Income can be derived from the following sources: • Rent from incubator companies • Rent from anchor tenants and support services • Service revenue Packet Page -1407- 11/13/2012 Item 14.6.7. • Contracts • Training programs and seminars • Sponsors investments, contributions and naming rights • Equity or deferred income from tenants and clients Expenses generally include: • Salary and benefits of staff * Utilities • Facility maintenance • Equipment and supplies • Telephone and internet • Travel • Marketing and promotion • Dues and memberships (LABIA and FBIA) • Janitorial, security, upkeep. • Consulting services. Once these projections are made (for three years), the needed operating subsidy will be projected. In many cases, the sponsoring agency or stakeholders will be willing to operate with a permanent subsidy if the return to the community is greater than the subsidy provided. This model will answer these questions and give the stakeholders the necessary information to make that decision. In addition, the turnkey cost for opening the doors of the incubator will be delineated. A pro forma financial statement will be developed to determine the economic viability of the project D. Building Recommendations The consultants will make recommendations on the proper size for the incubator building and the number and size of offices, workshops, labs and tenant spaces based on the market assessment for the incubator. In addition, the consultants will recommend the number and size of training rooms, conference rooms and administrative offices for the facility. These recommendations will be available for use by the project architects once they are selected. D'Agostino has extensive experience in the construction industry having been a commercial contractor and developer for over 15 years. In addition, he was responsible for the renovation and construction of the LBTC since its inception and the relocation of the LBTC to the LSU Innovation Park. This experience will be a helpful tool in performing this phase of the study. A suggested layout will be recommended to include office, warehouse, manufacturing, and wet lab space needed to meet the demands of the client companies. The survey and market data will provide the needed information to project the layout and configuration of the building that will be most useful to the targeted client pool. Packet Page -1408- 11/13/2012 Item 14.6.7. E. Management and Governance Developmental Consulting LLC will work with IBDC stakeholders to recommend the proper governance structure for managing and operating the incubator. Selecting the proper structure and an energized board of directors is essential to the success of business incubation programs. The consultants will utilize their experience and networks to recommend a structure that best fits the community and the incubator project. The consultants will work with IBDC to recommend the size, type and qualifications of staffing for the incubator. if requested, job descriptions and interview questions and selection criteria will be developed. In addition, a plan will be formulated to.access students and graduate students from area colleges and universities to work as interns for the incubator and their client companies as an extension of their course work. III. Cost and Timeline and Proposal Acceptance This business plan can be completed in 90 -120 days. The cost of the project is as follows: • Total Cost of the Project is $29,900 • Travel expenses will not exceed $3,000 and will be reimbursed as actual expenses for trips to the area. Payment is requested in three equal payments beginning with an initial payment upon signing the contract, a payment upon delivery of draft and a final payment upon delivery of the final report. The project includes an oral presentation to whomever the project leaders wish to invite as well as ten bound copies of the report and an original report for the Committee to make additional copies as needed. Proposal Submission Charles F. D'Agostino, President of Developmental Consulting LLC submits this proposal. 165 Nelson Drive, Baton Rouge, Louisiana 70808. 1 can be reached at 225 -921 -0900. PROPOSAL ACCEPTANCE Submitted by: Charles F. D'Agostino, President Developmental Consulting LLC December 10, 2009 Accepted by: Immokalee Business Development Center Date: Packet Page -1409- 11/13/2012 Item 14.6.7. w Packet Page -1410- 11/13/2012 Item 14.13.7. The final report will include: • Sample Tenant Policy Manuel • Business Plan and Operating Budget • Sample Leases • Tenant Application and Data Form • Entrance & Exit Policy • List of equipment needed, and • Job descriptions for key personnel. Proposed IBDC Business Incubator July 24, 2012 Business Plan Outline 1. Preface 11. Introduction — History and Background on the Project Ill. Demographics / Economic Data on Immokalee region and Eastern Collier County a. Population b. Industrial base and targeted industries c. Market access d. Labor force e. Demographics f. Income IV. History of Business Incubators and Explanation of the Concept a. Business Incubation in the US b. Definition of Business Incubators c. The Incubation Process d. Florida Business Incubators & Associations e. Incubators in comparable communities f. Types and Governance of Incubators g. Incubator Best Practices V. Market Assessment of the Target Area a. Entrepreneurship Culture b. Incubator Targeted Industries c. Feeder System for Entrepreneurs and Small Businesses i. Florida Gulf Coast University VI. Physical Facility a. Recommendations on Facility 1. Size of offices, workshops, warehouse and core service areas ii. Amenities required in facility / Green Building considerations iii. Space Allocation —office, warehouse, labs etc Vli. Management of the Incubator a. Governance b. Organizational Chart c. Job Descriptions —Staff Requirements d. Management Assistance and Business Counseling Support Services Packet Page -1411- 11/13/2012 Item 14.6.7. e. Strategic Partners — Energizing Stakeholders f. Selecting a Board and Board Responsibilities g. Entrance and Exit Criteria VIII. Financial Analysis a. Sources and Uses of Funds in an Incubator b. Possible Funding Agencies c. Proforma Financial Statement d. Breakeven Analysis e. Discussion of Subsidy to Self- sufficiency f. Business Incubation Legislation and State Programs IX. Marketing Plan a. Target Market and Attracting that Market b. Mission Statement c. Branding the Incubator d. Partnering with the city of Immokaiee, Eastern Collier Chamber and Economic Development Groups e. Public Relations f. Advertising g. Special Marketing Programs h. Media Relations X. Summary and Conclusions Xi. Appendix Study to be prepared by Developmental Consulting LLC and Charles D'Agostino. This outline is the property of DC LLC and cannot be shared with other consultants. Packet Page -1412- 11/13/2012 Item 14.6.7. Consultant Qualifications Charles F. D'Agostino, MBA President Developmental Consulting LLC 165 Nelson Drive Baton Rouge, Louisiana 70808 225- 921 -0900 (cell) 1/15/2012 Education: Louisiana State University, Masters Business Administration (MBA) 1972. Louisiana State University, Bachelors of Arts & Sciences — Chemistry 1970. LABIA Certification Business Incubation Manager Certification 2010 Fulbright Specialists for Economic Development — US State Department 2010 Phi Delta Kappa — Excellence in Research Award —1989. Job Title: President, Developmental Consulting LLC Executive Director, Louisiana Business & Technology Center - Louisiana State University Executive Director, LSU Innovation Park Acting Director, LSU's Stephenson Entrepreneurship Institute Honors: LABIA Lifetime Achievement Award 2011— Business Incubation 2009 US DOC — Economic Development Administration's - Excellence in Economic Development 2009 NBIA Most Innovative Program for Rural Entrepreneurship 2008 IEDC Economic Excellence Award 2005 National Business Incubator of the Year by the NBIA 2006 Association of Research Parks — Excalibur Award 2007 Southern Growth Policies Board — Innovator of the Year 1992 Small Business Advocate of the Year Boards and Commissions: Louisiana Industrial Development Executives Association Board 2009 -2012 Board of Association of University Research Parks (AURP) 1999- 2005; 2012 -2015 2012 Board Vice President National Business Incubation Association— Board of Directors 1991 -1998. Louisiana Business Incubation Association — Founder & Chairman Small Business Entrepreneurship Legislative Commission of the State of Louisiana 2007 -2009 (Appointed by Governors Blanco and Jindal) Greater Baton Rouge Port Commission — Chairman 2000, 1988 -1992 & 1996- 2004. Appointed by Governors Roemer and Foster and re- appointed by Governor Kathleen Blanco Baton Rouge Area Chamber - Board of Directors 1986, 2001, 2005 -08. Packet Page -1413- 11/13/2012 Item 14.13.7. Developmental Consulting LLC Partial Listing of Clients Business Incubator Studies and Contracts Texas A &M Corpus Christi City of Corpus Christi Incubator St Tammany Parish Southwest Louisiana (McNeese) Alexandria, Louisiana Terrebonne Parish Louisiana Houma, Louisiana St, James Parish Incubator Jennings, Louisiana Dixie Business Development Center Shreveport, Louisiana Pueblo, Colorado Canon City, Colorado Florida Business Incubation Association Ascension Parish Food Incubator Texas State University Thibodaux, Louisiana Lincoln Parish, Louisiana New Iberia, Louisiana Jefferson Davis Parish, Louisiana Morehouse Parish, Louisiana New Orleans Food Technology State of Maine Incubator System Norco Food / Kitchen Incubator Louisiana Edible Creations Barksdale AFB / Bossier City Cyber Malaysian Government BioTech Consortium Pennington BioMedical Incubator University of North Texas Texas State University —San Marcos Waveland Mississippi Business incubator Stafford Virginia — Quantico Marine Baylor University —Waco, TX University of Connecticut - Storrs Sam Houston State University Research Park and Business Incubator Author of A Guide to Developing a Business incubator in Your Community — 2001 Instructor on Association of University Research Parks (AURP) faculty for Research Parks Courses 101/201 Instructor for National Business Incubation Association's Incubation Training Institute Speaker for LIDEA Economic Development Certification Workshops Conference Speaker and Webinar Instructor for LABIA, AURP, IEDC and other economic organizations Economic Development Studies (USDA Approved List Research Park — Cyber Space Command — Bossier City, LA South Carolina Shrimp Processors & Seafood Plant, South Carolina Advanced Technology Study for Lincoln Parish Compilation of Resource Guide for the State of Louisiana (LED) Economic Development Study and Impact Analysis for a Minor League Baseball Stadium in Downtown Baton Rouge Industrial Park Reorganization Plan and Restrictions — Avoyelles Parish Strategic Marketing Plan for Chennault Industrial Airpark, Lake Charles, LA Strategic Economic Development Plan for Norco, Louisiana (NCEDF) Port Fourchon and Port of West St. Mary Economic and Marketing Plan Certified Site Selection Applications for St. Mary Parish Packet Page -1414- 11/13/2012 Item 14.6.7 Packet Page -1415- 11/13/2012 Item 14.6.7. Charles F. D'Agostino, MBA Executive Director Louisiana Business & Technology Center E. J. Ourso College of Business Louisiana State University 2010 Fulbright Specialists in Economic Development Charles D'Agostino, the founder and Executive Director of the Louisiana Business & Technology Center at Louisiana State University (1988), has been actively involved in entrepreneurship, economic development and small business issues for the last 23 years. He served on the Board of Directors of the Association of University Research. Parks (1999 -2005) and was reelected as Vice President for 2012 -2015 and served the board of the National Business Incubation Association (1991 - 1998). D'Agostino founded (1990) and served as chairman of the Louisiana Business Incubation Association. D'Agostino was given the Lifetime Achievement Award by the National Business Incubation Association in 201.1. Under the umbrella of the Louisiana Business and Technology Center (LBTC), D'Agostino directs the Small Business Incubator, the LSU Small Business Development Center (SBDC), LSU Rural Entrepreneurship & disaster business counseling programs, the International Business program and the Louisiana Technology Transfer Office (LTTO). The LTTO has offices located at LSU and the NASA's Stennis Space Center. The LBTC is a 35,000 square foot high -tech business incubator at the LSU Innovation Park of Louisiana State University, a recently acquired research and technology park. D'Agostino has been charged with developing and managing this 200 acre research park. As a Fulbright Specialist, D'Agostino was assigned to the Universita degli Studi dell'Aquila in Italy to assist in the development of an incubator and business disaster recovery after the 2009 Earthquake that destroyed the town and university. Under D'Agostino's direction, the Louisiana Business & Technology Center was selected as the 2005 National Business Incubator of the Year and the 2009 Most Innovative Incubator Program. In addition, the LBTC won the 2009 US Department of Commerce — Economic Development Administration — Excellence in Economic Development Award. D'Agostino received his bachelor degree from Louisiana State University in 1970 (A &S- Chemistry) and a Masters in Business Administration (MBA) in 1972. The following is a partial listing of D'Agostino's awards and accomplishments: • Appointed by the Governor to the newly established Small Business Entrepreneurship Commission Small Business Administration — Advocate of the Year in Louisiana (1992) • Phi Delta Kappa Excellence in Research Award (1989) . • Commissioner of the Greater Baton Rouge Port Commission (1996 - 2005). e Board of the Greater Baton Rouge Chamber of Commerce (1986 -7, 1992 -3, & 2002 -2003, 2006 -2009) + Authored a book on Business Incubator Development — "Guide to Developing A Business Incubator in Your Community" 2001 • Elected to the board of Louisiana Industrial Developers Executive Association (2008 -11) • Appointed to the International Economic Development Council's Higher Education Committee (2010 -2012) Updated 11 -10 -2007 Packet Page -1416- 11/13/2012 Item 14.6.7. W FR P Southwest Florida Regional Planning Council ;V&* 1926 Victoria Ave, Fort Myers, Florida 33901 -3414 (239) 338 -2550 FAX (239) 338 -2560 www.swtrpc.org �teCt c a 4 11 -,F September 20, 2012 Mrs. Penny Phillippi Collier County Community Redevelopment Agency Immokalee 1320 N. 15th Street, Ste 2 Immokalee, FL 34142 RE: IC &R Project #2012 -30 Funding Agent: USDA, Rural Development Funding Amount: $26,000 Collier County Community Redevelopment Agency - Immokalee Business Development Center Expansion Feasibility Analysis. Dear Mrs. Phillippi: The staff of the Southwest Florida Regional Planning Council reviews various proposals, Notifications of Intent, Preapplications, permit applications, and Environmental Impact Statements for compliance with regional goals, strategies, and actions, as determined by the Strategic Regional Policy Plan. The staff reviews such items in accordance with the Florida Intergovernmental Coordination and Review Process (Chapter 291 -5, F.A.C.), and adopted regional clearinghouse procedures. These designations determine Council staff procedure in regards to the reviewed project. The four designations are: Less Than Regionally Significant and Consistent no further review of the project can be expected from Council. Less Than Regionally Significant and Inconsistent Council does not find the project of regional importance, but will note certain concerns as part of its continued monitoring for cumulative impact within the noted goal area. Re�ionallySignificant and Consistent and Consistent project is of regional importance, and appears to be consistent with Regional goals, objectives, and policies. Packet Page -1418- 11/13/2012 Item 14.6.7. To: Nfi-s. Penny Phillippi Date: September 20, 2012 Re: S WFRPC #2012 -30 Page: 2 Regionally Significant and Inconsistent project is of regional importance and does not appear to be consistent with Regional goals, objectives, and policies. Council will oppose the project as submitted, but is willing to participate in any efforts to modify the project to mitigate the concerns. The above referenced document has been reviewed by this office, based on the information contained in the document, and on local knowledge, has been found Regionally Significant and Consistent with adopted goals, objectives, and policies of the Strategic Regional Policy Plan. Should you or any other party request this finding to be reconsidered, please contact Nichole L. Gwinnett, IC &R Coordinator, with this request, or any questions concerning staff review of this item. This recommendation will be discussed at the next scheduled Council meeting. Should Council action differ from the staff recommendation, you will be notified. Sincerely, SOUTHWEST FLORIDA REGIONAL PLANNING COUNCIL (Lk.1 1 Margaret uerstle, AICP Executive Director MW /NLG Packet Page -1419- 11/13/2012 Item 14.6.7. s b.uarn` 0 Board of Collier County Commissioners Donna Fiala Georgia A. Hiller, Esq. Tom Henning District 1 District 2 District 3 October 2, 2012 Richard Machek, State Director P.O. Box 147 4440 NW 25th Place Gainesville, FL 32614 -7010 Dear Mr. Machek: Fred W. Coyle Jim Coletta District 4 District 5 I am writing in regards to the Immokalee Business Development Center RBEG grant application. The purpose of this letter is to request that your review board take the following factors into consideration when awarding discretionary points to the Immokalee Business Development Center/ Feasibility Project. In rating a specific project, your review board compares the unemployment rate of the State to that of the County where the project is located. In our case, although the project is located in Immokalee, the unemployment rate of Florida is compared to that of Collier County, not Immokalee. Collier County is composed of the cities of Naples, Marco Island, Everglades Cities, and the unincorporated areas of Golden Gate, Immokalee, and Ave Maria. Although Collier County is known to have one of the strongest economies and the median household income ($58,106.00) is greater than that of the State of Florida ($47,661.00), the community of Immokalee does not share these qualities. According to 2010 estimates, the median household income in Immokalee is 39.9% less than the Florida average and 45.2% less than the National average. Immokalee has long been recognized as a distinct community within Collier County. Its economic base, geography, and demographic make -up are different than the rest of Collier County. Immokalee is a place where the main source of employment opportunities is limited to unskilled agricultural labor which is seasonal in nature. Furthermore, Immokalee is designated by the Florida Governor's Office of Trade, Tourism and Economic Development (OTTED) as a Rural Area of Critical Economic Concern (RACEC). Despite the fact that Immokalee is located in Collier County, I believe that any comparison that is made must take Immokalee's unique characteristics into consideration. To do otherwise will negatively impact the project for scoring purposes. I appreciate your time and attention to this matter. Sincerely, Comdissioner Donna Fiala 3299 Tamiami Trail East, Suite 303 • Packet Page -1421- 239 -252 -8097 - FAX 239- 252 -3602 Articles of Incorporation Resolution No. 2000 -83 11/13/2012 Item 14.13.7. RESOLUTION NO. 2000 -83 12 C 1 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA RELATING TO COMMUNITY REDEVELOPMENT; DECLARING THE BOARD OF COUNTY COMMISSIONERS TO BE THE COLLIER COUNTY COMMUNITY REDEVELOPMENT AGENCY; AUTHORIZING THE CREATION OF ADVISORY BOARDS FOR THE COMMUNITY REDEVELOPMENT AREA; PROVIDING FOR CONFLICT WITH OTHER RESOLUTIONS AND SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners has adopted a resolution finding the existence of one or more blighted areas In the unincorporated area of the County and further finding that the rehabilitation, conservation or redevelopment or combination thereof, In such areas Is necessary in the interest of the public health, safety, morals or welfare of the residents of Colter County, Florida; and WHEREAS, to carry out and implement the redevelopment powers and actions contemplated by Part III, Chapter 163, Florida Statutes, within such grass, it is necessary that a community redevelopment agency be created: and WHEREAS, the Board of County Commissioners desires to serve as the community redevelopment agency and have advisory boards consisting of citizens and property owners in the areas providing advice to the Board concerning the redevelopment of the areas; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA AS FOLLOWS: Section 1. Findlnas The foregoing recitals are hereby adopted and Incorporated herein to the same extent as if they ware sat forth in this section. Section 2. Declaration of egpM of County Commissioners as Community Redevalooment Adencv. As provided in Section 163.361(1), Florida Statutes (1099), the Board of County Commissioners of Collier County, Florida, does hereby declare itself to be the Collier County Community Redevelopment Agency as on additional duty of office, and does further declare that all the rights, powers, dunes, privileges, and Immunities vested by Part III, Chapter 163, Florida Statutes (1999) In such a community redevelopment agency are hereby vested In the Board of County Commissioners, subject to ail responsibilities end liabilities imposed or incurred. Section 2, Separate Leas[ EnIK. The members of the Board of County Commissioners are the members of the Community Redevelopment Agency, but the members Conslitute the head of a legal entity, separate, distinct, and independent from the Board of County Commissioners. Secton 3. Creation of Advisory Boards. There are to be created, under separate resolutions by the Community Redevelopment Agency, advisory boards for each component Packet Page -1423- 1.2 c ,1 area of the community redevelopment area In the unincorporated area of Collier County, which shall be composed of dtizens, residents, property owners and business owners or parsons engaged In business in the area, as provided In the resolution of the Community Redevelopment Agency providing for the appointment of such members. The duties and responsibilities of such advisory boards stall be set forth in the resolution of the Community Redevelopment Agency. Section 4. Conflicts. AN resolutions and parts of resolutions In conflict with any of the provisions of this resolution are hereby repealed. Section S. Saverabil . if any section or portion of a section of this resolution proves to be invalid, unlawful, or unconstitutional, it shall not be held to invalidate or impair the validity, force, or effect of any other section or part of this resolution. Section G. Effective DateJhis resolution shall become effective immediately upon Its passage and adoption, Section 7. This Resolution adopted after motion, second and majority vote this 14-9 day of ..20170. ATTEST OF C STONERS •D1MGtYT�. BROCK, CLERK COLLIER TUN7, FLORIDA 4 41 lye . BY: TIMOT CONSTA NE, C IRMA AtRest.s 3d Chairman's : tgaetrre'Orly. APPROVED AS TO FORM AND LEGAL SUFFICIENCY David C. Weigel County attorney z Packet Page -1424- 11/13/2012 Item 14.13.7. 501(c)(3) IRS Tax Exemption Letter N/A Packet Page -1426- 11/13/2012 Item 14.6.7. CRA Board Commissioner Donna Fiala Chair Commissioner Tom Henning Commissioner James N. Coletta Commissioner Fred W. Coyle Commissioner Georgia Hiller �R Advisory Board Michael Facundo Chairman Edward "Ski" Olesky Jeffrey Randall Robert Halman Ex- officio Julio Estremera Floyd Crews James Wall Eva Deyo Carrie Williams Daniel Rosario Cristina Perez CRA Staff Penny Phillippi Executive Director Bradley Muckel �,'RA Project Manager Christie Betancourt CRA Administrative Assistant Jeffrey Nagle 4STU Project Manager Marie Capita IBDC Manager Collier County Community Redevelopment Agency IMMVKALEE CRA i Ti Place to Call Home ! � r, MEMORANDUM TO: Collier County Board of County Commissioners FROM: Marie Capita, Manager Immokalee Business Development Center DATE: November 7, 2012 CC: County Attorney, County Manager, and Clerk of Court - Board Minutes and Records RE: November 13, 2012 BCC Agenda Item No. - 14 B. 7 - Rural Business Enterprise Grant application to U.S. Department of Agriculture (USDA) Rural Development in the amount of $35,000 for the completion of a Feasibility Study to evaluate expanding the current Immokalee Business Development Center and approve all necessary budget amendments. The County's audit for years 2010, 2009, and 2008 are required to be submitted to the USDA as part of the Rural Business Enterprise Grant application that is being considered on November 13, 2012, Agenda Item No. 14 B. 7. The audits were not included in Board's agenda back -up materials that were published due to size. The Executive Summary for the item states that members of the public may view the audits at the Board's Minutes and Records office. If you have any questions regarding this item, please contact me or Penny Phillippi. ComprehensWe Annu, al 1FR'n.%ncA'zR Report co illy SHER', dil �XSR C% 1923 FLORID COUNT The Comprehensive Annual Financial Report (CAFR) is prepared each year by the Cleric of the Circuit Court. On the cover: Collier County is located in southwest Florida. The logo of Collier County as well as the logo of each constitutional office is represented on the cover including: Clerk of Courts - Dwight E. Brock Property Appraiser - Abe Skinner Sheriff's Office - Kevin J. Rambosk Supervisor of Elections - Jennifer J. Edwards Tax Collector - Larry H. Ray M8� Nov- l -b, COMPN EHEN SWE AHNUAL ANN ANA CC AL REPORT FO' FISCAL YEAR E 'DED SEPTEMBER 30, 2 0o9 COWER COUNTY, FLI,ORWA 60OA"D OF COU T CO. �ISSIONERS DONNA L. HALLA, C HAMMAN o DNS MCT I FRED W. COYLE, WCC- CHAIRMAM e ®BSTRECc; u 4 JAMES N. COLETTA, Jr. m DISTRICT 5 COUNTY MANAGER JAMES V. IO UDD COUNTY ATTORNEY JEFFREY A. KLATZKOVV CL ' I� OL THE CIRCUIT CGUT �,'� C�'.E FII!AIV'CIAL CFF�CE� �l-'T E. E "SCl/ CRYSTAL K. KINZEL Prepared bV the Finance and Accounting Department THIS PAGE INTENTIONALLY LEFT BLANK v 'p O J L in U L O V Y t! m U v W N W o m N �n h a` Y O d. E m m c��} m` Y C N � j N O o ° T 7 W N r v U a a m v `w F m � C m � U i T O 3 c O cV N ¢ N Y C C w J s l U 4 41 O m W � uvi O � c o` c u ° o L •y .� 4 4 Z O C 4t E v EO G tD c mro V N � � W t N N C N o0 U C � Y O Ja a m C L � m � O N N � O ° o a 0 E O uuN�� O N W ~ � O U L � o � vn m m Y W G C � } L c4 O � W O Q U a � co O � O E '4 E u° c a v v E u !TN W .2 E N ° h E c J J c m O W b0 m c � O N v U m o c Y 4 UI G m � m c m O Tm m o o U v >C Ul C O 4 ti Q 14 -� t,,,bv.l:�,, 2oiZZ O y O `>Ym c c °• = D I � N d O �cw v p Q u i ❑' E� 2vm ry 4 '�°�•°c°m �1 m Q ° N y v N i v I wu m C O N m Z E N t4 3 J z E pm4 F-r nY,mn 4 E U m o. c v J Q z a w W O v O dJ C c ELL a m u E E Us Et°- a S� 0 v 0 m m a, m p _ O m � N O U W u u 0 N O N � U m C U C ro m p ` L `o a o. N h a` Y O d. E m m c��} m` Y C N � j N O o ° T 7 W N r v U a a m v `w F m � C m � U i T O 3 c O cV N ¢ N Y C C w J s l U 4 41 O m W � uvi O � c o` c u ° o L •y .� 4 4 Z O C 4t E v EO G tD c mro V N � � W t N N C N o0 U C � Y O Ja a m C L � m � O N N � O ° o a 0 E O uuN�� O N W ~ � O U L � o � vn m m Y W G C � } L c4 O � W O Q U a � co O � O E '4 E u° c a v v E u !TN W .2 E N ° h E c J J c m O W b0 m c � O N v U m o c Y 4 UI G m � m c m O Tm m o o U v >C Ul C O 4 ti Q 14 -� t,,,bv.l:�,, 2oiZZ O y O `>Ym D I � N d O �cw O ❑' E� 2vm '�°�•°c°m �1 m N y v N O c o o m g I > a 0 YL°wt° C O N m Z E N t4 3 a7J u W C O O pm4 F-r nY,mn 4 E U m o. c v J Q z a w W O v O dJ C E n O c O W N O N � m mY m E u — °•2 N y v N I > a 0 YL°wt° C O N m Z E N t4 3 a7J u W C O O s a o 5 o c!2 4 E U m o. O v 3 •„ � m v •z •g = v °vro m mY m E u — °•2 N y v N I > a 0 YL°wt° E o m Z E N m a7J u W C O O I.-' 4 A •� U ,C a a J L c v J Q z a w W O v O dJ C E n u E W � o W N O I g •„ � m v •z •g = v °vro m mY m E u — °•2 N y v N I > a 0 YL°wt° E o m Pw J I.-' 4 U c o ° �n i0 O p •� v' v N • v m � v J u °c^ E I > a 0 YL°wt° 5 Pw J 4 v 4 = m c v J Q I 1 COLLIER COUNTY, FLORIDA � 4 B 7 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 200 1 TABLE OF CONTENTS INTRODUCTORY SECTION Page TransmittalLetter ............................................................................................................................................ ............................... i Certificateof Achievement ............................................................................................................................ ............................... vii FINANCIAL SECTION Report of Independent Certified Public Accountants ................................................................................... ............................... 1 Management's Discussion and Analysis (Unaudited) ................................................................................... ............................... 3 Basic Financial Statements: Statementof Net Assets .......................................................................................................................... ............................... 14 Statementof Activities ................................................................................................................................ .............................16 BalanceSheet — Governmental Funds ..................................................................................................... ............................... 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ............. ............................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ............... .............................20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................................................................................... ............................... 21 General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual ( Non- GAAP) ..................................................................................................................................... ............................... 22 Community Redevelopment - Statement of Revenues, Expenditures and Changes in Fund Balances — Budgetand Actual ( Non- GAAP) .............................................................................................................. ............................... 25 Statement of Net Assets — Proprietary Funds ............................................................................................ .............................26 Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds ....................... .............................28 Statement of Cash Flows — Proprietary Funds ......................................................................................... ............................... 29 Statement of Fiduciary Assets and Liabilities — Agency Funds ................................................................... .............................31 Notesto the Financial Statements ............................................................................................................. .............................33 Required Supplementary Information ........................................................................................................... .............................74 Combining and Individual Fund Financial Statements: Nonmaior Governmental Funds CombiningBalance Sheet ................................................................................................................................ .............................80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................ .............................88 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non -GAAP) ............... 96 Nonmaior Enterprise Funds CombiningStatement of Net Assets ........................................................................................................... ............................... 120 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ...................................... ............................... 121 CombiningStatement of Cash Flows ............................................................................... ............................... ............................122 Internal Service Funds CombiningStatement of Net Assets ........................................................................................................... ............................... 126 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ...................................... ............................... 127 CombiningStatement of Cash Flows .......................................................................................................... ............................... 128 Fiduciary Funds Combining Statement of Fiduciary Assets and Liabilities ........................................................................... ............................... 132 Combining Statement of Changes in Assets and Liabilities ............................................. ............................... ............................133 Component Units CombiningStatement of Net Assets ........................................................................................................... ............................... 136 Combining Statement of Revenues, Expenditures and Changes in Net Assets .............. ............................... ............................137 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2009 TABLE OF CONTENTS - CONTINUED STATISTICAL SECTION (UNAUDITED) NetAssets by Component ........................................ — .......... ...... ................... . ............................................................................ 140 Changein Net Assets ................................................................................................................................... ............................... 141 Governmental Activities Tax Revenues by Source ........................................................... ............................... ............................143 FundBalances of Governmental Funds ...................................................................................................... ............................... 144 Changes in Fund Balances of Governmental Funds .................................................................................... ............................... 145 Assessed Value and Estimated Actual Value of Taxable Property ............................................................. ............................... 146 Property Tax Rates —All Direct and Overlapping Governments ................................................................. ............................... 147 PrincipalTax Payers County -Wide .............................................................................................................. ............................... 148 PropertyTax Levies and Collections ............................................................................................................ ............................... 149 Ratiosof Outstanding Debt by Type ........................................................................................................... ............................... 150 Ratios of General Bonded Debt Outstanding ................. ............................... ............... ............................... ............................... 151 LegalDebt Margin Information ................................................................................................................... ............................... 152 Direct and Overlapping Governmental Activities Debt .............................................................................. 152 ............................... Pledged- Revenue Coverage ......................................................................................................................... ............................... 153 Demographicand Economic Statistics ........................................................................................................ ............................... 154 PrincipalEmployers ..................................................................................................................................... ............................... 155 Full -Time Equivalent County Employees by Function ................................................................................. ............................... 156 OperatingIndicators by Function ................................................................................................................ ............................... 157 CapitalAsset Statistics by Function ............................................................................................................. ............................... 158 SINGLE AUDIT /SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ................161 Report of Independent Certified Public Accountants on Compliance With Requirements Applicable to Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB Circular A -133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General ........ ............................163 Schedule of Expenditures of Federal Awards and State Projects .................................... ............................... ............................166 Notes to the Schedule of Expenditures of Federal Awards and State Projects .............. ............................... ............................174 Schedule of Findings and Questioned Costs .................................................................... ............................... ............................177 Scheduleof Prior Audit Findings ...................................................................................... ............................... ............................193 14B 7 THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION 14 ►' THIS PAGE INTENTIONALLY LEFT BLANK 149 71 Ernst & Young LL P !` { i- ••,t,Il if_,U' ti` �`1 11 �f� �i."P `Z —by Suite 700 100 Northeast Third Avenue Fort Lauderdale, FL 33301 -1166 Tel: +1954 888 8000 Fax: +1954 888 8160 www.ey.com Deport of Independent Certified ]public Accountants Distinguished Members of the Board of County Commissioners Collier County, Florida: We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (the County), as of and for the year ended September 30, 2009, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the County's internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2009, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison information for the general fund and community redevelopment fund for the year then ended in conformity with US generally accepted accounting principles. As discussed in note 18, the net assets of governmental activities and fund balance of the Community redevelopment Fund have been restated as of September 30, 2008 to correct the accounting for land purchased in a prior year and previously excluded from governmental activities and for land rehabilitated and held for resale in previous periods that was excluded from the Community redevelopment Fund. 1002- 1130878 A member firm of Emst & Young Global Limited �,l�l�lllllllllliil�� w�i�� , .. In accordance with Government Auditing Standards, we have also issued our report dated February 10, 2010 on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and'compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The Management's Discussion and Analysis on pages 3 through 13 and schedule of funding progress for the retiree health plan on page 74 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards and state projects is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A -133, Section 215.97, Florida Statutes and Chapter 10.550, Rules of the Auditor General, and is not a required part of the basic financial statements. The combining and individual nornmajor fund financial statements and the schedule of expenditures of federal awards and state projects have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. February 10, 2010 2 1002- 1130878 fgd�� t"T UP A member firm of Ernst & Young Global Umited (UNAUOOTE®) As Cleric of the Circuit Court and chief financial officer of Collier County, Florida, I present the readers of the County's financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30, 2009. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i -vi of this report. Financial Highlights - Collier County's assets exceeded its liabilities as of September 30, 2009 by $2,398,274,491. Of this amount, $341,863,646 represents unrestricted net assets and may be used to meet future obligations. - The County's total net assets increased by $68,887,651 over fiscal year 2008, with $37,709,841 of the increase resulting from governmental activities and $31,177,810 resulting from business - type activities. - As of September 30, 2009 Collier County's governmental fund financial statements showed combined ending fund balances of $410,216,176, a decrease of $92,720,302 over the previous fiscal year. Of the total combined ending fund balance, $295,263,039 remains in the various governmental funds of Collier County as unreserved. - The General Fund reported an unreserved fund balance of $38,923,751 at September 30, 2009, a decrease of $23,029,184 compared to September 30, 2008. - Total net bonded debt and outstanding loans owed by Collier County decreased by $23,894,064 during fiscal year 2009, with a decrease in net governmental activities debt of $22,190,023 and a decrease in the net business -type activities debt of $1,704,041. The County prepaid $19,513,000 in commercial paper debt, with $11,235,000 of the total relating to Caribbean Gardens. During fiscal year 2009, Collier County also borrowed $13,244,204 to partially fund the purchase of an environmentally sensitive property known as the Pepper Ranch Preserve. The Bayshore /Gateway Community Redevelopment Agency borrowed $13,500,000 for purposes of refinancing a $5,901,000 line of credit and acquisition of properties targeted for redevelopment. The Collier County Water and Sewer District also borrowed $10,071,825 from the Florida Department of Environmental Protection's State Revolving Fund Program. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County's basic financial statements, comprised of government -wide and fund financial statements, as well as notes to the financial statements. There is additional supplementary information following these financial statements that may be of interest to the reader. Govern ment- @!hide Financial Statements Government -wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Assets and a Statement of Activities and are found on pages 14 to 17 of this report. The Statement of Net Assets shows the financial position of Collier County as of September 30, 2009. The statement shows the County's assets less its liabilities, with the difference being reported as net assets. Changes in net assets are useful indicators of financial condition. The Statement of Activities follows the statement of net assets and reports the changes in net assets over the fiscal period. All changes in net assets are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business -type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business -type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds - Governmental funds; presented on pages 18 to 25, account for substantially the same functions as governmental activities reported under the Government -Wide Statement of Net Assets and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government's near term financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government -wide financial statements to facilitate comparison. 4 14B 71 Governmental funds presented individually in Collier County's statements include four major funds, the General Fund, Road Impact Districts Fund, Road Construction Fund and the Community Redevelopment Fund. While there are many smaller governmental funds under Collier County management, they are aggregated in a total column named "othe "r governmental funds ". Combining statements for these other governmental funds have been presented elsewhere in this report. Proprietary funds - Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on pages 26 to 30 of this report. Enterprise funds report, with more detail, the same functions presented as business -type activities in the government -wide financial statements for water and sewer, Goodland water, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund is presented individually as a major fund. Internal service funds are maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker's compensation insurance, property and casualty insurance and fleet operations. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government. These funds are not presented in the government -wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds are presented in the on page 31 of this report. All of the County's fiduciary funds are agency funds. The accounting used for agency funds is based on the concept that assets equal liabilities when the government is acting in a fiduciary capacity. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government -wide and fund financial statements. The notes appear on pages 34 to 72 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 83. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining balance sheets and statements of revenues, expenses and changes in fund net assets for enterprise funds. Also included are combining financial statements for internal service and agency funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical and Single Audit sections of this report. R Government -Wide Financial Analysis Changes in net assets over time are a useful indicator in assessing financial condition. Collier County's increase in net assets for this fiscal year amounts to $68,887,651, resulting in an ending net assets balance as of September 30, 2009 of $2,398,274,491. Collier County's investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the construction or purchase of the asset, amounts to 74% of net assets. Capital assets are used to provide services to the citizens and consequently do not represent spendable resources. Collier County's net assets also include restricted net assets of $271,473,714 and unrestricted net assets of $341,863,646. Restricted net assets are resources subject to external restriction on how they may be used while unrestricted net assets may be used to meet the County's ongoing obligations. Following are Collier County's net assets and changes in net assets for the fiscal years ended September 30, 2008 and 2009, shown in condensed form: Collier County's Schedule of Net Assets (in millions) Note: Certain fiscal year 2008 balances are restated in a manner consistent with the restatement discussed in Note 18 on page 72. 6 Total Governmental Business -type Percentage Activities Activities Total Change 2009 2008 2009 2008 2009 2008 2008 -2009 Current and other assets $ 536.4 $ 653.2 $ 200.0 $ 177.5 $ 736.4 $ 830.7 (11.4 %) Capital assets, net 1,644.7 1,537.8 914.2 915.5 2,558.9 2,453.3 4.3% Total assets 2,181.1 2,191.0 1,114.2 1,093.0 3,295.3 3,284.0 0.3% Long -term liabilities 510.0 537.3 252.8 255.7 762.8 793.0 (3.8 %) Current liabilities 106.8 127.1 27.4 34.5 134.2 161.6 (17.0 %) Total liabilities 616.8 664.4 280.2 290.2 897.0 954.6 (6.0 %) Net assets: Invested in capital assets, net of related debt 1,131.6 1,031.7 653.3 658.9 1,784.9 1,690.6 5.6% Restricted 240.2 295.0 31.3 30.2 271.5 325.2 (16.5 %) Unrestricted 192.5 199.9 149.4 113.7 341.9 313.6 9.0% Total net assets $1,564.3 $1,526.6 $ 834.0 $ 802.8 $2,398.3 $2,329.4 3.0% Note: Certain fiscal year 2008 balances are restated in a manner consistent with the restatement discussed in Note 18 on page 72. 6 H M, Collier County's schedule of Changes in Met Assets (in millions) Note: Certain fiscal year 2008 balances are restated in a manner consistent with the restatement discussed in Note 18 on page 72. 7 Total Governmental Business -typ,e Percentage Activities Activities Total • Change 2009 2008 2009 2008 2009 2008 2008 -2009 Revenues Program revenues: Charges for services $ 58.8 $ 68.9 $156.7 $157.3 $ 215.5 $ 226.2 (3.3%) Operating grants and contributions 22.0 20.2 3.3 4.4 25.3 24.6 2.8% Capital grants and contributions 24.9 52.3 18.2 23.3 43.1 75.6 (43.0 %) General revenues: Propertytaxes 313.3 327.2 - - 313.3 327.2 (4.2%) Othertaxes and shared revenues 77.9 76.7 - - 77.9 76.7 1.6% Interest income 11.5 34.5 2.4 5.9 13.9 40.4 (65.6 %) Change in fairvalue of investments (0.3) (0.8) (0.2) (0.2) (0.5) (1.0) (50.0 %) Miscellaneous 12.0 10.6 0.6 0.1 12.6 10.7 17.8% Total revenues 520.1 589.6 181.0 190.8 701.1 780.4 (10.2%) Expenses General government 114.0 112.7 - - 114.0 112.7 1.2% Public safety 182.9 183.3 - - 182.9 183.3 (0.2%) Physical environment 21.3 22.1 - - 21.3 22.1 (3.6%) Transportation 64.6 66.0 - - 64.6 66.0 (2.1%) Economic environment 12.1 13.5 - - 12.1 13.5 (10.4 %) H u ma n se rvices 12.0 13.5 - - 12.0 13.5 (9.6%) Culture and recreation 45.7 43.4 - - 45.7 43.4 4.8% Interest on long -term debt 20.5 21.5 - - 20.5 21.5 (4.7%) Water and sewer - - 90.0 85.5 90.0 85.5 5.3% Solid waste - - 30.8 30.0 30.8 30.0 2.7% Airport authority - - 3.9 5.1 3.9 5.1 (23.5 %) Emergency medical services - - 28.7 30.1 28.7 30.1 (4.7%) Mass transit - - 9.0 9.4 9.0 9.4 (4.3%) Total expenses 473.1 476.0 162.4 160.1 635.5 636.1 (0.1%) Increase in net assets before net transfers and special item 47.0 113.6 18.6 30.7 65.6 144.3 (54.5 %) Special item- registry,bond 3.3 (3.3) - - 3.3 (3.3) - Transfers, net (12.6) (28.3) .12.6 28.3 - - - Change in net assets 37.7 82.0 31.2 59.0 68.9 141.0 (51.1 %) Net assets - beginning, as restated 1,526.6 1,444.6 802.8 743.8 2,329.4 2,188.4 6.4% Net assets - ending $1,564.3 $1,526.6 $834.0 $802.8 $2,398.3 $2,329.4 3.0% Note: Certain fiscal year 2008 balances are restated in a manner consistent with the restatement discussed in Note 18 on page 72. 7 1A 7 Governmental Activities The current year increase for net assets of governmental activities amounted to $37,709,841, an increase of 3% over the previous year's net assets. The previous fiscal years' increase was 6% and this trend is the result of an overall decline in governmental activities revenues. The total ad valorem tax collections -for fiscal year 2009 were down $13,954,493, or 4 %, mainly due to a 4% decrease in taxable assessed value. The general fund millage rate remained unchanged from fiscal year 2008. Governmental impact fees are collected to offset the cost of growth necessitated capital improvements and are reported as capital contributions in the governmental activities. During fiscal year 2009 the County collected governmental activity impact fees for transportation, parks, libraries, emergency medical services, correctional facilities, law enforcement, governmental facilities and fire totaling $17,761,229. This represents a decrease in total governmental activity impact fee collections compared to fiscal year 2008 of 52 %, and is further evidence of the widespread slow down in the construction and real estate industries. Sales tax revenues decreased by 11% versus fiscal year 2008, and this decrease reflects a general decline in the state's economy. In addition, gas tax revenues decreased by 2% versus fiscal year 2008. Market interest rates declined during fiscal year 2009, when compared to fiscal 2008, and investable balances decreased as debt proceeds and residual impact fees were spent for capital improvements. These factors combined for a substantial decrease in interest revenue versus fiscal year 2008. Of the eight categories that comprise governmental expenses, six experienced declines due mainly to reductions in operating costs. Total general governmental activities expenses increased 1% over fiscal 2008 due mainly to nonoperating depreciation expense on general government capital assets put into service. Culture and recreation expenses increased by 5% over fiscal year 2008 due to a 9% increase in depreciation expense related to projects placed in service during fiscal 2009. Governmental activities interest expense was $20,491,509 for fiscal year 2009, which represents a decrease of 5 %, net of amortizations. Business -type Activities Increases in net assets related to business -type activities amounted to $31,177,810 in the aggregate, representing a 4% increase over the previous year's net assets. The majority of the increase, or $30,977,127, can be attributed to the Collier County Water and Sewer District. Water and wastewater operating revenues increased $4,847,392, or 5 %, over the previous fiscal year, while costs of operations, excluding depreciation, were essentially flat with no change from fiscal year 2008. Operating revenues increased primarily due to a rate increase of 3.5% that went into effect on October 1, 2008. This increase was partially offset by decreased usage caused by continued water restrictions and conservation measures. Depreciation expense increased by 16% over fiscal year 2008 as over $136M in capital facilities were added and improved during fiscal -year 2008 and for fiscal year 2009 a further $105M was added. Fiscal year 2009 water and wastewater impact fee collections dropped to $6,320,015, or a decrease of 35% versus fiscal 2008. This was the primary reason for a 20% decrease in capital grants and contributions, which includes impact fees. The County Water and Sewer District charges water and wastewater impact fees on new construction in order to finance growth necessitated capital expansion. In addition, solid waste charges for services decreased by 10% from fiscal year 2008 while operating costs, including depreciation, increased by 2% over the same period. The decrease in solid waste charges for services can be mainly attributed to a 24% decrease in total commercial, residential and construction related tonnage being accepted into the landfills during FY -2009. These factors contributed to a minimal increase in solid waste net assets year on year of $1,771,097. 148 7 Fund ;Financial;S .tatement,Analysis. As mentioned above, Collier- County utilizes fund accounting to ensure compliance with .finance related legal requirements. GovernmentalTunds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unreserved fund balance is a useful measure of:net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. As of September 30, 2009 Collier County governmental funds reported combined fund balances of $410,216,176, a decrease of $92,720,302. when compared to prior year combined fund balances. Governmental funds reserved $64,676,912 of fund balance for encumbrances in the next fiscal year, $15,376,572 for inventory, deposits and prepaid items, $4,976,678 for debt service and $29,922,975 for advances made to other funds. The remainder of fund balance is considered unreserved and available for discretionary spending. The following were noteworthy. activities and changes relating to the major governmental funds for fiscal year 2009: The General Fund is the main operating fund of Collier County. At September 30, 2009, total fund balance in the general fund was $47,886,135, of which $38,923,751 was unreserved. As a percentage of total general fund expenditures and net- transfers, the unreserved portion is 12 %. The total fund balance decreased by $20,669,285 or 30 %, compared to the September 30, 2008 total fund balance. The decrease is primarily due to decreased ad valorem and sales tax.collections and decreased interest revenue. The Road Impact Districts Fund is used to account for the receipt and expenditure of road impact fees. Road impact fees of $13,086,883 were collected during fiscal year 2009, to be used for growth related transportation capital improvements. This represents a decrease in total road impact fee collections versus fiscal year 2008 of SS %, which is consistent with the slowdown in both the real estate and construction industries. Capital expenditures of road impact fees decreased by.68% for fiscal year 2009 when compared to fiscal year 2008. The major projects completed -and capitalized during fiscal year 2009 were Immokalee Road from Interstate 75 to Collier Boulevard and Rattlesnake Hammock Road from Polly Avenue to Collier Boulevard in the combined amount of $33,806,641. Major ongoing construction related to Santa Barbara Boulevard in the combined amount of amount of $47,959,565 was in process as of September 30, 2009. These activities resulted in a decrease in fund balance of $7,137,793 for the Road Impact Districts Fund. The Road Construction Fund accounts for the accumulation of gas taxes and General Fund transfers for the construction of roads and payment of transportation related debt service. Capital expenditures in the Road Construction Fund decreased by 44% when compared to fiscal year 2008. Major projects completed and capitalized during fiscal year 2009 included portions of the Immokalee Interstate 75 Loop, Vanderbilt Beach Road from Airport Road.to Interstate 75 right of way purchase and - Collier Boulevard from Golden Gate Boulevard to Immokalee Road in the combined total of $66,431,491. Major ongoing projects include Immokalee Road from Collier Boulevard to Wilson Boulevard, 9 14B 761 Immokalee Road from US 41 to Interstate 75 and Santa Barbara Boulevard from Golden Gate Parkway to Radio Road right of way purchase. The total amount of construction in progress for these projects was $70,079,159 as of September 30, 2009. The combination of these activities resulted in a decrease in fund balance of $17,466,225 for the Road Construction Fund. The Community Redevelopment Fund accounts for the receipt and expenditure of tax increment revenues for the Bayshore /Gateway Triangle and Immokalee Redevelopment Authorities. During fiscal year 2009 the Bays ho re/G ateway Triangle borrowed $13,500,000 for purposes of refinancing $5,901,000 in existing debt and the purchase of $6,738,572 of land targeted for redevelopment within the Triangle. Proprietary funds Proprietary fund statements provide the same information as the business -type activities in the government -wide financial statements, but in greater detail, and on a fund basis for enterprise funds. At September 30, 2009, total net assets amounted to $833,968,648 for enterprise funds, as compared to $802,790,838 as of September 30, 2008. Net assets change as a result of operations, non - operating revenues and expenses, capital contributions and grants and donations. The Collier County Water and Sewer District's activity represents the vast majority of the increase in net assets. For the year ended September 30, 2009 the Water and Sewer District reported capital grants and contributions of $17,029,766, which includes system development fees of $6,320,015, $10,053,839 in developer infrastructure contributions and capital grants for other governmental agencies of $655,912. Net Operating Income /(Loss) 2009 2008 County Water and Sewer $23,137,977 $22,828,461 Non -major enterprise funds ,(20,622,049) (17,801,466) Total $ 2,515,928 $ 5,026,995 The Collier County Water and Sewer Fund net operating income increased by $309,516. The increase in net operating income was the result of an increase in operating revenues of $4,847,392, or 5 %, over the previous fiscal -year, while costs of operations, including depreciation, were up 6% overall. The primary reason for this increase was the addition of $241M in capital assets over the last two fiscal years and the attendant depreciation. County Water and Sewer payments in lieu of taxes paid to the General Fund of $3,289,600 were reclassified from operating expense to operating transfers for financial statement purposes. Personal services expenses decreased by 4 %, when compared to fiscal year 2008, as the majority of employees lost to attrition were not replaced. Operating expenses increased by 4% due mainly to the increased cost of chemicals used in the treatment of water and wastewater. Capital-Assets Collier County's financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County's investment in capital assets for the governmental and business -type activities amounted to 10 148 $2,558,828,372, net of accumulated depreciation. This investment in capital assets, both purchased and donated, includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. investment in capital assets for the current fiscal year, net of depreciation, increased by. $116,055,456 over the previous year. There was an increase in the governmental activities of $117,386,468, or 8 %. The proprietary. fund. capital assets decreased by $1,331,012, as amounts depreciated exceeded amounts capitalized. The major factors behind these changes are as follows: - Water and sewer, solid waste disposal and airport authority construction in progress increases amounted to $21,371,001. Of this amount, $18,941,944 was related to water and wastewater facilities and improvements constructed by the County Water and Sewer District. - Capitalization as construction in progress of $98,294,309 of governmental activity_ related costs, With $51,011,908 of this amount related to transportation projects and $26,460,148 related to government facilities, including a new fleet facility, and a courthouse annex. In addition, $11,920,229 of water management costs were capitalized as well as $8,902,024 of parks and recreation and other projects. - Purchases of land and non - depreciable assets were $53,783,550 for fiscal year 2009. Additional information regarding Collier County's capital assets can be found in Note 5 beginning on page 50 of this report. Debt Administration At September 30, 2009, Collier County, had. net bonded revenue debt of $546,096,948 outstanding, a decrease of $21,655,601 from the previous year: The following table illustrates the balances of all outstanding long -term debt for the fiscal years ended September 30, 2009 and 2008: Outstanding. Debt: 2009 2008 Limited General Obligation Bonds, net $ 37,700,223 $ 29,099,538 Revenue Bonds, net 546,096,948 567,752,549 Florida Local Government Loans 66,047,000 85,560,000 State Revolving Fund Loans 116,906,373 115,830,489 Line of Credit and Miscellaneous Notes 13,571,675 5,973,707 Total $ 780,322,219 $ 804;216,283 During fiscal year 2009 Collier County prepaid a total of $19,696,000 in debt. Of this amount, $19,513,000 was related to the Florida Local Government pooled commercial paper program and $185,000 was related to the Naples Park Area Stormwater Special Assessment Bond. The prepayments under the commercial paper pool included the final pay off of the Caribbean Gardens loan that had been secured by the pledge of up to a .15 mil ad valorem tax levy. On November 21, 2008 Collier County issued the $13,244,204 Series 2008 Conservation Collier Limited General Obligation Bonds. The bonds were issued for the purpose of partially funding the purchase of approximately. 2,511.9 acres of environmentally sensitive land known generally as Pepper Ranch. 11 KA During fiscal year 2009, cumulative downgrades in the rating of bond insurers FGIC, MBIA and AMBAC obligated, Collier County to fund a cash reserve in the amount of $19,570,777. The funds were advanced to the governmental activities from monies available in the business -type activities. The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County's long -term debt can be found in Note 6 beginning on page 51 of this report. Budgetary Highlights Budgetary comparison statements are provided in the basic financial statements for the General Fund and the Community Redevelopment Fund (CRA). Budget columns are presented for both the original budget and the final budget. These columns are followed by a column for actual revenues and expenditures and a column for differences between final budget and actual revenues and expenditures. Significant period revenue and expenditure budget increases and decreases, over $250,000 within a department, were made and are outlined in the following table: BCC Departmefit/ Budget Agency Irncrease /(Decrease) ' Reason.for Increase /(Decrease) Other General Admin. $ (5,612,200) Decrease in anticipated Ad Valorem Tax receipts. Other General Admin. (2,334,500) Decrease in anticipated sales tax receipts. Other General Admin. (825,900) Decrease in anticipated state shared revenues receipts. Sheriff's Agency 1,770,000 Increase in charges for services - special detail duties. Tax Collector's Agency (943,523) Decrease in operating expenditures to actual. Natural Resources 1,052,259• Rebudget of lapsed appropriation. Other General Admin. 295,000 Increase to cover increased unemployment claims. Other General Admin. 560,850 Increase to cover outer-year audit expenses. Other General Admin. 483,773 Increase to cover increased juvenile justice allocation. Sheriff's Agency (686,772) Decrease in operating expenditures. Mental Health 450,000 Increase contribution to Collier mental health program. BCC Transfers Out 4,135,414 Additional General Fund transfers to otherfunds., CRA 6,340,575 Increase Bayshore Gateway land purchases. CRA 7,554,575• Financed Bayshore Gateway land purchases. CRA Transfers Out 1,214,000 Increase transfers to CRA debt service fund. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2009. Tax revenues were under budget by $6,917,924 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4% to 1 %, depending on the date of payment. Interest income -was under budget as interest revenues budgeted within the Clerk of the Circuit Court's General Fund, were also budgeted in the Board of County Commissioners' General Fund. General Fund general government expenditures were under budget primarily due to $2,907,549 in unspent budget related to a watershed study that will be ongoing until 2010, with the majority of the work still to be completed. 'Also contributing to the budget to actual surplus in the general government function -was the Clerk of the Circuit Court's General Fund functions and the Board's Other General and Administrative function. The Clerk of the Circuit Court's personal services expenditures were under budget by $585,317, primarily due to staff reductions. The Board's Other General and Administrative function was under budget by a combined $540,537 primarily due to 12 148 7 operating costs being less than anticipated. Sheriff's public safety expenditures were a combined $3,897,909 less than anticipated for fiscal year 2009. Human services related expenditures were a combined $1,974,675 under budget due mainly to unspent client assistance budget of $990,447. Economic Factors and Year. 2®10 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2010 budget: - The population of Collier County increased by .1% from fiscal year 2008 to fiscal year 2009. - Further declines in the taxable assessed value of property. - A total number of building permits issued during FY -2009 of 18,219, which represented an 11% decrease from the 20,580 issued in FY -2008. - A fiscal year 2009 annual unemployment rate in Collier County, without seasonal adjustment, of 10 %. - Expected continued decreases in sales tax revenues and gas tax revenues. - The focus of the Collier County Capital Improvement Program in FY -2010 is the completion of the transportation network, public service and health, safety and welfare related projects initiated over the past two years. During fiscal year 2009, the General Fund unreserved fund balance decreased by $23,029,184• to $38,923,751. As of January 20, 2010, $33,217,700 of the fiscal year 2009 unreserved fund balance has been appropriated as carryforward for fiscal year 2010. Other: Discussion The Clerk of Courts is currently involved in litigation with the County. In Case #2D07 -4549; L.T. #04-941 - CA the Second District Court of Appeals (DCA) of the State of Florida issued its opinion on September 23, 2009 reaffirming that the Clerk of Courts is accountant, auditor and custodian of all county.funds and is entitled to audit the county for purposes of determining legality of payment. The DCA has since denied two additional motions filed by Collier County in response to the DCA opinion; one to rehear the case and the other to certify the case to the Florida Supreme Court. Both motions were denied by.the DCA. The DCA reaffirmed its rulings to uphold the Clerk's right to audit. The Board of County. Commissioners has indicated that it will continue pursuing this issue, seeking discretionary review by. the Florida Supreme Court. On November 24, 2009 the County.filed a notice to invoke discretionary jurisdiction of the Florida Supreme Court and a motion for stay of issuance of mandate in Case #2D07 -4549; L.T. Case #04- 941 -CA. Contact! information This financial report is intended to give the user a general overview of Collier County Government's finances. Any questions resulting from review of this information may be addressed to: Collier County Cleric of the Circuit Court Department of Finance and Accounting 3301 East Tamiami Trail, Building F -4t" Floor Naples, Florida 34112 Our office may also be contacted via the internet at.www.colfierclerk. cam. 13 COO LLI _F OU TY, FLORID�. STATE � JT C��F ET �.SStTS SEFTEr ?0 20 09 The notes to the financial statements are an integral part of this statement. 14 Primary Government Governmental Business-type Component Activities Activities Total Units ASSETS Current assets: Cash, cash equivalents and investments $ 239,422,846 $ 110,174,805 $ 349,597,651 $ 486,147 Trade receivables, net 1,400,770 10,016,290 11,417,060 - Contributions receivable 11,100,000 - 11,100,000 - Special assessments receivable 89,119 662,119 751,238 - Interest receivable 301,823 322,282 624,105 - Unbilled receivables - 5,087,788 5,087,788 - Notes receivable 105,531 - 105,531 - Due from other governments 9,402,639 1,454,575 10,857,214 - internal balances (28,293,836) 28,293,836 - - Deposits 560,957 2,301 563,258 - Inventory 16,075,327 2,933,175 19,008,502 - Prepaid costs 101,776 58,837 160,613 - Restricted assets: Cash, cash equivalents and investments 18,585,335 4,037,436 22,622,771 - Trade receivables, net 2,542,699 - 2,542,699 - Interest receivable 337,093 - 337,093 - Due from other governments 2,415,815 - 2,415,815 - Total current assets 274,147,894 163,043,444 437,191,338 486,147 Noncurrent assets: Restricted assets: Cash, cash equivalents and investments 243,709,872 32,899,646 276,609,518 - Notes receivable 10,372,393 - 10,372,393 - Special assessments receivable 243,943 553,568 797,511 - Notes receivable 3,100,188 2,020,322 5,120,510 - Deferred charges 4,898,165 1,529,244 6,427,409 - Capital assets: Land and nondepreciable capital assets 617,203,838 87,663,997 704,867,835 - Depreciable capital assets, net 1,027,447,752 826,512,785 1,853,960,537 - Total noncurrent assets 1,906,976,151 951,179,562 2,858,155,713 - Total assets 2,181,124,045 1,114,223,006 3,295,347,051 486,147 The notes to the financial statements are an integral part of this statement. 14 14B 7 STATEMEN OF T AS STS, SE:��Eh�B �,3Q; x®09=: 15 Primary Government Governmental, Business -type Component Activities Activities Total Units LIABILITIES Currentl liabilities: Accounts payable $ 22,715,044 $ 6,737,236 $ 29,452,280 $ - Wages payable 6,312,947 1,826,299 8,139,246 - Retainage payable 1,209,933 3091466 1,519,399 - Due to other governments 2,147,543 31,912 2,179,455 - Due to individuals 371,232 377,455 748,687 - Arbitrage rebate 52,260 - 52,260 Self- insurance claims payable 5,574,384 - 5,574,384 - Compensated absences 10,263,532 1,953,411 12,216,943 - Capital lease obligations 153,672 131,926 285,598 - Unearned revenue 4,823,561 - 4,823,561 - interest payable 8,268,503 2,783,994 11,052,497 - Bonds and loans payable 26,846,427 11,734,146 38,580,573 - Liabilities payable from restricted assets: Accounts payable 8,417,016 2831465 8,700,481 - Wages payable 223,188 - 223,188 Retainage payable 8,589,820 5241966 9,114,786 - Refundable deposits 915,538 265,564 1,181,102 - Notes payable - 71,675 71,675 - Unearned revenue - 364,287 364,287 - Total current liabilities 106,884,600 27,395,802 134;280,402 - Noncurrent. liabilities: Arbitrage rebate 262,925 9931889 1,256,814 - Self- insurance claims payable 3,754,616 - 3,754,616 - Compensated absences 11,522,095 488,352 12,010,447 - Capital lease obligations 445,198 359,814 805,012 - Landfill post - closure liability - 1,913,827 1,913,827 - Net OPEB obligation 1,381,471 - 1,381,471 - Bonds and loans payable, net 492,567,297 249,102,674 741,669,971 - Total noncurrent liabilities 509,933,602 252,858,556 762,792,158 Total liabilities 616,818,202 280,254,358 897,072,560 - NET.ASSETS Invested in capital assets, net of related debt 1,131,617,181 653,319,950 1,784,937,131 - Restricted for: Growth related capital expansion 112,233,808 16,708,672 128,942,480 - Transportation capital projects 80,353,062 - 80,353,062 - Conservation Collier 16,434,540 - 16,434,540 - Tourist development k 26,248,780 - 26,248,780 - Debt service 4,976,678 14,218,174 19,194,852 - Renewal and replacement - 300,000 300,000 - Unrestricted 192,441,794 149,421,852 341,863,646 486,147 Total net assets $1,564,305,843 $ 833,968,648 $ 2,398,274,491 $ 486,147 15 14B 7`1 COWER COUNTY, KORIDA STATEMENT 0PACTIVITIES FOR -THE FISCAL YEAR ENDE®S *EPTEMBE'R : .5 ®; . .20 ®9 Program Business -type Activities: 'Fees, Fines and Operating 90,041,762 104,926,649 58,516 Charges for Grants and FUNCTIONS /PROGRAMS Expenses Services Contributions Primary Government: 8,974,589 1,100,812 2,732,686 Emergency Medical Services Governmental Activities: 15,280,542 344,712 Total business -type activities 162,330,033 General government $ 113,906,311 $ 32,257,456 $ 797,170 Public safety 182,962,153 11,940,469 3,742,230 Physical environment 21,227,115 821,717 812,132 Transportation 64,601,041 3,101,341 3,743,119 Economic environment 12,125,259 283,480 10,224,104 Human services 12,013,659 513,599 2,446,573 Culture and recreation 45,727,465 9,830,038 182,283 Interest on long -term debt 20,491,509 - - Total governmental activities 473,054,512 58,748,100 21,947,611 Business -type Activities: Water and Sewer 90,041,762 104,926,649 58,516 Solid Waste 30,773,997 32,922,299 89,214 Airport Authority 3,894,793 2,353,326 10,000 Mass Transit 8,974,589 1,100,812 2,732,686 Emergency Medical Services 28,644,892 15,280,542 344,712 Total business -type activities 162,330,033 156,583,628 3,235,128 Total primary government $ 635,384,545 $ 215,331,728 $ 25,182,739 Component Units: Industrial Development Authority $ 146 $ - $ - Health Facilities Authority - - - Housing Finance Authority 410 - - Educational Facilities Authority 15,931 - - Total component units $ 16,487 $ - $ - General revenues: Property taxes Gas taxes Sales taxes Tourist taxes Othertaxes State revenue sharing Interest income Change in fair value of investments Miscellaneous Special item - registry bond (See Note 19) Transfers, net Total general revenues and transfers Change in net assets Net assets - beginning, as previously reported Prior period adjustment Net assets - beginning, as restated Net assets - ending The notes to the financial statements are an integral part of this statement, 16 L Revenues Net (Expense) Revenue and Changes in Net Assets Capital P..rimary Government Grants and Governmental Business -type Component Contributions Activities Activities Total Units $ 3,066,962 $ (77,784,723) $ - $ (77,784,723) 1,877,072 (165,402,382) - (165,402,382) - 2,373,279 (17,219,987) - (17,219,987) - 13,657,991 (44,098,590) - (44,098,590) - 193,355 (1,424,320) - (1,424,320) - 27,668 (9,025,819) - (9,025,819) - 3,670,508 (32,044,636) - (32,044,636) - - (20,491,509) - (20,491,509) - 11,487,682 2,409,636 13,897,318 24,866,835 (367,491,966) - (367,491,966) - 17,029,766 - 31,973,169 31,973,169 - - 2,237,516 2,237,516 841,548 - (689,919) (689,919) 259,697 - (4,881,394) (4,881,394) 16,146 - (13,003,492) (13,003,492) 18,147,157 - 15,635,880 15,635,880 - $ 43,013,992 (367,491,966) 15,635,880 (351,856,086) - $ (146) (410) (15,931) (16,487) 313,290,445 - 313,290,445 18,455,964 - 18,455,964 - 26,778,873 - 26,778,873 - 12,345,057 - 12,345,057 - 12,240,634 - 12,240,634 - 7,927,456 - 7,927,456 - 11,487,682 2,409,636 13,897,318 934 (33,198) (14,986) (48,184) - 12,065,985 551,189 12,617,174 3,239,000 - 3,239,000 - (12,596,091) 12,596,091 - 405,201,807 15,541,930 420,743,737 934 37,709,841 31,177,810 68,887,651 (15,553) 1,516,043,884 802,790,838 2,318,834,722 501,700 10,552,118 - 10,552,118 - 1,526,596,002 802,790,838 2,329,386,840 501,700 $ 1,564,305,843 $ 833,968,648 $ 2,398,274,491 $ 486,147 17 C®dLlER COUNTY, F LOP IDA B d6nN6E SHEE T GOVERNMENTAL FUNDS FOR THE FISCAL-YE RI ENDED 'SEPTEMBER 30,2009 Road Other Total General Impact Road Community Governmental Governmental Fund 'Districts Construction Redevelopment Funds Funds ASSETS $12,286,848 $ 3,022,703 $ 3,415,840 $ 300,002 $ 11,516,585 $ 30,541,978 Wages payable Cash, cash equivalents and investments $ 52,640,157 $74,874,073 $ 83,706,304 $ 6,207,596 $ 238,077,033 $ 455,505,163 Receivables: 30 - 3,401,456 4,502,142 Due to other governments 1,274,637 - Interest 46,064 106,170 118,611 12,695 292,377 575,917 Trade, net 653,216 27,783 1,936,562 - 1,285,498 3,903,059 Notes 1,612,479 6,823,749 - - 5,141,884 13,578,112 Special assessments - - - - 333,062 333,062 Due from other funds 3,672,793 3,496 974 - 1,167,954 4,845,217 Due from other governments 2,414,477 119,903 1,832,585 - 7,413,124 11,780,089 Deposits 3,500 - - - - 3,500 Inventory 128,881 - - 13,662,211 1,749,095 15,540,187 Advances to other funds 7,045,275 - - - 22,877,700 29,922,975 Prepaid costs 100,091 - - - 1,685 101,776 Total assets $ 68,316,933 $81,955,174 $ 87,595,036 $ 19,882,502 $ 278,339,412 $ 536,089,057 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $12,286,848 $ 3,022,703 $ 3,415,840 $ 300,002 $ 11,516,585 $ 30,541,978 Wages payable 4,338,999 - 124,452 29,205 1,912,549 6,405,205 Due to other funds 1,100,583 73 30 - 3,401,456 4,502,142 Due to other governments 1,274,637 - - - 872,906 2,147,543 Due to individuals 201,595 - - - - 169,637 371,232 Deferred revenue 340,870 '6,823,749 - - 9,912,228 17,076,847 Refundable deposits 887,266 - - - 28,272 915,538 Retainage payable - 4,004,880 3,700,708 - 2,094,165 9,799,753 Advances from other funds - - - - 54,112,643 54,112,643 Total liabilities 20,430,798 13,851,405 7,241,030 329,207 84,020,441 125,872,881 Fund balances: Reserved for: Encumbrances 1,684,637 13,240,075 19,732,670 142,632 29,876,898 64,676,912 Deposits 3,500 - - - - 3,500 Inventory 128,881 - - 13,662,211 1,480,204 15,271,296 Advances to other funds 7,045,275 - - - 22,877,700 29,922,975 Prepaid costs 100,091 - - - 1,685 101,776 Debt service - - - - 4,976,678 4,976,678 Unreserved, reported in: General fund 38,923,751 - - - 38,923,751 Special revenue funds - - - 5,748,452 108,459,725 114,208,177 Debt service funds - - - - 1,586,837 1,586,837 Capital project funds - 54,863,694 60,621,336 - 25,059,244 140,544,274 Total fund balances 47,886,135 68,103,769 80,354,006 19,553,295 194,318,971 410,216,176 Total liabilities and fund balances $ 68,316,933 $81,955,174 $ 87,595,036 $ 19,882,502 $ 278,339,412 $ 536,089,057 The notes to the financial statements are an integral part of this statement. 18 C0LL1ER-,COUNTY,.FLOA1DA,. 14B 7, RECONCILIAT- M OP: THE, BALANCE, SHFET ;O GOVERNME TALFUNDS T.0,TWF S'I'ATEM ENT -OF: 6ff- ASSETS FOR-7H FISC�AI�Y-EARENOE0,S- E,PITEMRE.R 3®; 2009 Differences in amounts reported for governmental activities in the statement of net assets on pages 14 -15: Fund balances - total governmental funds $ 410,216,176 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land and other non - depreciable assets $ 366,860,067 Construction in progress 250,343,771 Depreciable assets, net of $449,450,433 in accumulated depreciation. 1,013,562,929 1,630,766,767 Certain accounts receivable are not financial resources and therefore are not reported in the governmental funds. 11,100,000 Certain long -term assets are not financial resources and therefore are not reported in the governmental funds. 4,898,165 Certain revenues will be collected after year -end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred revenue in the funds. 12,253,286 Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long- term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net assets. Balances at September 30, 2009 are: Accrued interest on bonds $ (8,268,503) Bonds and notes payable (504,248,827) Capital lease obligations (598,870) Compensated absences (21,563,849) Arbitrage rebate liability (315,185) Unamortized deferred loss 282,659 Unamortized premium (15,981,953) Unamortized discount 534,397 (550,160,131) Internal service funds are used by the County to charge self - insurance and fleet management services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Internal service fund net assets are: 45,231,580 Total net assets - governmental activities $ 1,564,305,843 The notes to the financial statements are an integral part of this statement. 19 COLLIER COUNTY,! FL®RBI IA 14 7 STATEMENT 0F 9 EVEN UES,! EXPENDITUKES'AND C6 ANGES1IN FUND:9ALAV@9 S :GOVERNMENTAL-'FUNDS EOR7HEIISCAL 1fEAR EN ®ED' SPTEMBER 30,-2009 Special item - registry bond (See Note 19) 3,239,000 Road Other Total Net change in fund balances General Impact Road Community Governmental Governmental Fund balances at beginning of year, Fund Districts Construction Redevelopment Funds Funds Revenues: as previously stated 68,555,420 75,241,562 97,820,231 5,494,780 248,900,846 Taxes $ 236,676,576 $ - $ 12,855,662 $ 2,910,600 $ 96,337,167 $ 348,780,005 Licenses and permits 191,832 13,086,883 - - 12,670,996 25,949,711 Intergovernmental 38,005,552 - 6,509,387 - 25,368,368 69,883,307 Charges for services 20,459,514 13,000 2,061,381 10,645 13,383,349 35,927,889 Fines and forfeitures 845,857 - - - 5,070,445 5,916,302 Interest income 8,257,315 265,344 253,608 145,046 2,382,140 11,303,453 Change in fair value of investments (7,203) (7,558) (9,102) (663) (22,205) (46,731) Special assessments - - 2,852,507 2,852,507 Miscellaneous 1,725,757 54,497 608;653 5,545 8,948,825 11,343,277 Total revenues 306,155,200 13,412,166 22,279,589 3,071,173 166,991,592 511,909,720 Expenditures: Current: General government 64,619,342 - - 31,070,032 95,689,374 Public safety 146,162,243 - - 22,430,173 168,592,416 Physical environment 793,477 - 9,814,887 10,608,364 Transportation - 474,704 6,055,270 - 34,641,178 41,171,152 Economic environment 763,181 - - 1,791,693 9,569,570 12,124,444 Human services 8,695,982 - - - 2,580,635 11,276,617 Culture and recreation 15,813,915 - - - 21,397,679 37,211,594 Debt service: Principal - - 1,957,377 - 46,127,670 48,085,047 Interest - - 82,623 - 21,415,714 21,498,337 Fiscal charges - - - - 115,818 115,818 Capital outlay 5,882,976 20,075,255 38,691,132 - 112,031,482 176,680,845 Total expenditures 242,731,116 20,549,959 46,786,402 1,791,693 311,194,838 623,054,008 Excess (deficiency) of revenues over (under) expenditures 63,424,084 (7,137,793) (24,506,813) 1,279,480 (144,203,246) (111,144,288) Other financing sources (uses): Bonds issued - - - - 13,244,204 13,244,204 Loans issued - - 7,554,575 5,945,425 13,500,000 Sale of capital assets 269,407 - - 31,360 300,767 Insurance proceeds 381,335 - - 371,394 752,729 Transfers in 8,416,699 - 23,441,888 - 111,416,560 143,275,147 Transfers out (96,399,810) - (16,401,300) (1,699,179) (41,387,572) (155,887,861) Total other financing sources (uses) (87,332,369) - 7,040,588 5,855,396 89,621,371 15,184,986 Special item - registry bond (See Note 19) 3,239,000 - 3,239,000 Net change in fund balances (20,669,285) (7,137,793) (17,466,225) 7,134,876 (54,581,875) (92,720,302) Fund balances at beginning of year, as previously stated 68,555,420 75,241,562 97,820,231 5,494,780 248,900,846 496,012,839 Prior period adjustment - - - 6,923,639 - 6,923,639 Fund balances at beginning of year, as restated 68,555,420 75,241,562 97,820,231 12,418,419 248,900,846 502,936,478 Fund balances at end of year $ 47,886,135 $ 68,103,769 $ 80,354,006 $ 19,553,295 $ 194,318,971 _.$.410;216,176 The notes to the financial statements are an integral part of this statement. 20 C,QLLaER,000Nw;.FdORI®A> 1411 74 FEC- ONCILIA- IQN:OF-THE S--TA E.MEf4T'. -Q , REV.ENUES; EX( ENOITURES ANN GHAN.U.S. -A I FUND�M A -NOES-,:®FrG_OVERNh1fIE_NTA ,,.f�1 N S.. T. ®-tTJi E- STATEM ENT, O F.rAC7'IVITI ES FOR; THE.- FISC,ALYEi?AR .ENOEQ.:SEP.TEIVI.EER :30; 2009 Differences in amounts reported for governmental activities in the statement of activities on pages 16 -17: Net change in fund balances - total governmental funds $ (92,720,302) 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. Capital outlay $ 176,680,845 Depreciation expense (65,391,894) 111,288,951 Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net assets in the statement of net assets. 1,832,287 Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources.. 20,132 In the statement of activities, the loss on the sale of capital assets is reported. However, in the governmental funds the proceeds from the sale of capital assets increase financial resources. The change in net assets differs from the change in fund balance by the net book value of assets disposed. (2,798,777) Expenses related to the write off of developer contributions receivable are not reported as expenditures in the governmental funds. (562,814) Revenues that are not available are deferred in the governmental funds but are included in the statement of activities. Deferred revenues decreased bythis amount this year. (1,075,772) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long -term liabilities in the statement of net assets. (26,744;204) Repayment of principal on long -term debt is an expenditure in governmental funds, but a reduction of long -term liabilities in the statement of net assets. Bond and loan principal payments $ 47,931,377 Payments on capital lease obligations 153,670 48,085,047 Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Increase in compensated absences $ (592,182) Accrued interest on bonds (5,579) Amortization of deferred charges, net (237,192) Amortization of deferred loss (94,220) Amortization of premium 1,125,408 Amortization of discount (28,338) Decrease in arbitrage rebate liability 362,567 530,464 The net expenses of internal service funds are reported with governmental activities. (145,171) Change in net assets - governmental activities $ 37,709,841 The notes to the financial statements are an integral part'of this statement. 21 14B 73, COLLIER, 000i\fT ( FLORIDA GENERAL FUND STATEMENT OFREVENUES EXPENDITURES-AND-814ANGES IN F9JNUBALANCES BUDGETAND'ACTLAL (NON-'GAAP) FOR THE' FISCALYEARIENDEUSEPTEMBER .3®; 1®09 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest income Miscellaneous Total revenues Expenditures: Current: General government Board of County Commissioners personal services Board of County Commissioners operating County manager administrative personal services County manager administrative operating Budget and management personal services Budget and management operating Budget and management capital outlay Administrative services personal services Administrative services operating Administrative services capital outlay Human resources administration personal services Human resources administration operating Clerk of the Circuit Court personal services Clerk of the Circuit Court operating Clerk of the Circuit Court capital outlay Property Appraiser personal services Property Appraiser operating Property Appraiser capital outlay Tax Collector personal services Tax Collector operating Tax Collector capital outlay County attorney personal services County attorney operating County attorney capital outlay Natural resource planning personal services Natural resource planning operating Circuit court costs operating Circuit court costs capital outlay Original Final Budget Budget Variance with Final Budget Favorable Actual (Unfavorable) $ 249,206,700 $ 243,594,500 $ 236,676,576 $ (6,917,924) 161,000 161,000 191,832 30,832 39,807,100 36,701,417 38,005,552 1,304,135 22,974,680 24,721,955 20,459,514 (4,262,441) 522,100 522,100 845,857 323,757 - 28,244,300 28,244,300 8,257,315 (19,986,985) 10,224,500 10,324,396 11,455,864 1,131,468 351,140,380 344,269,668 315,892,510 (28,377,158) Pia 1,053,300 951,077 952,932 (1,855) 67,800 54,900 39,656 15,244 941,900 954,350 943,094 11,256 30,800 27,400 20,019 7,381 807,100 902,123 896,245 5,878 78,000 51,400 34,230 17,170 2,500 - - - 5,433,600 5,532,508 5,511,622 20,886 2,709,900 2,377,749 2,306,146 71,603 8,200 170,583 92,877 77,706 1,462,700 1,482,327 1,475,464 6,863 349,100 247,949 180,780 67,169 6,778,600 6,778,600 6,193,283 585,317 2,978,900 2,395,539 2,129,484 266,055 92,700 632,700 575,187 57,513 5,190,526 5,190,526 4,858,456 332,070 1,549,729 1,542,630 1,580,240 (37,610) 50,000 50,000 125,905 (75,905) 9,886,501 9,390,413 9,390,413 - 3,639,349 3,372,883 3,342,481 30,402 59,078 68,600 68,600 - 3,021,300 2,878,201 2,783,625 94,576 346,500 361,317 264,287 97,030 21,500 21,500 21,295 205 228,500 232,500 232,728 (228) 2,792,600 3,840,859 933,310 2,907,549 48,300 41,300 20,400 20,900 1,000 - - - Courthouse security operating Courthouse security capital outlay County court cost operating State Attorney operating State Attorney capital outlay Public Defender operating Public Defender capital outlay Other general administrative personal services Other general administrative operating Facilities management personal services Facilities management operating Facilities management capital outlay Sheriff personal services Sheriff operating Supervisorof Elections personal services Supervisor of Elections operating Supervisor of Elections capital outlay Real property management personal services Real property management operating Total general government Public safety Sheriff personal services Sheriff operating Sheriff capital outlay Emergency management administration personal services Emergency management administration operating Helicopter operations personal services Helicopter operations operating Helicopter operations capital outlay Medical examiner services operating Total public safety Physical environment Conservation and resource management personal seMce Conservation and resource management operating Conservation and resource management capital outlay Immokalee cemetery operating Total physical environment Economic environment Veterans services personal services Veterans services operating Veterans services capital outlay Impact fee assistance operating Housing and urban improvement operating Total economic environment Human services Health Care Responsibility Act operating Domestic animal services personal services Domestic animal services operating Domestic animal services capital outlay Health department operating 121,000 381,090 4 41,406 1,100,600 1,110 600 1095 709 �4 891 70,500 70,500 56,955 13,545 28,700 22,600 8,442 14,158 504,600 304,685 290,702 13,983 26,900 - - - 212,800 157,200 148,286 8,914 3,000 - - - 121,000 381,090 339,684 41,406 7,306,500 8,167,043 7,667,912 499,131 3,513,800 3,482,778 3,497,307 (14,529) 9,362,800 9,238,263 9,114,620 123,643 180,000 168,000 165,707 2,293 3,760,800 3,760,800 3,800,024 (39,224) 144,600 144,600 126,638 17,962 1,801,900 1,978,253 1,885,267 92,986 1,432,200 1,140,222 1,085,485 54,737 52,500 127,537 114,869 12,668 818,000 865,924 865,852 72 39,400 25,400 22,819 2,581 80,110,583 80,695,429 75,259,037 5,436,392 121,389,200 121, 208,600 119,496,653 1,711,947 27,459,800 27,229,828 23,117,849 4,111,979 2,130,000 1,853,800 3,779,817 (1,926,017) 825,000 878,363 863,126 15,237 282,500 290,745 175,931 114,814 741,800 737,520 667,858 69,662 785,400 747,409 739,420 7,989 10,100 10,041 59 1,119,100 1,109,773 1,101,406 8,367 154, 732, 800 154,066,138 149, 95 2,101 4,114, 037 s 755,500 721,565 669,523 52,042 163,600 160,600 104,507 56,093 - 5,192 - 5,192 25,900 20,900 19,447 1,453 945,000 908,257 793,477 114,780 271,500 274,868 275,000 (132) 76,200 49,356 21,514 27,842 - 23,360 23,360 - 307,500 307,500 - 307,500 720,300 720,300 466,667 253,633 1,375,500 1,375,384 786,541 588,843 23 50,000 50,000 - 50,000 1,969,000 1,849,345 1,818,249 31,096 941,700 910,551 607,543 303,008 31,600 55,568 32,816 22,752 1,749,800 1,749,800 1,404,835 344,965 271,500 274,868 275,000 (132) 76,200 49,356 21,514 27,842 - 23,360 23,360 - 307,500 307,500 - 307,500 720,300 720,300 466,667 253,633 1,375,500 1,375,384 786,541 588,843 23 50,000 50,000 - 50,000 1,969,000 1,849,345 1,818,249 31,096 941,700 910,551 607,543 303,008 31,600 55,568 32,816 22,752 1,749,800 1,749,800 1,404,835 344,965 23 50,000 50,000 - 50,000 1,969,000 1,849,345 1,818,249 31,096 941,700 910,551 607,543 303,008 31,600 55,568 32,816 22,752 1,749,800 1,749,800 1,404,835 344,965 Health department capital outlay Mental health operating Client assistance personal services Client assistance operating Public services division office personal services Public services division office operating Total human services Culture and recreation Library administration personal services Library administration operating Library administration capital outlay Extension services personal services Extension services operating Extension services capital outlay Beach and water park operation personal services Beach and water park operation operating Beach and water park operation capital outlay Total culture and recreation Total expenditures Excess of revenues over expenditures Other financing sources (uses): Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Special item - registry bond Net change in fund balance Fund balance at beginning of year Fund balance at end of year Reconciliation: Net change in fund balance, budgetary basis Bad debt expense Net change in fair value of investments Advances budgeted as transfers Net change in fund balance, GAAP basis 23,500 23,500 23,444 56 899,300 1,349,300 1,124,475 224,825 586,800 517,038 494,647 22,391 4,047,800 3,885,973 2,917,917 968,056 318,600 322,542 320,547 1,995 21,800 13,300 7,769 5,531 10,639,900 10,726,917 8,752,242 1,974,675 5,673,800 5,487,740 5,125,303 362,437 11297,900 1,263,916 1,233,034 30,882 818,700 818,700 766,621 52,079 136,500 95,666 87,970 7,696 11,900 11,900 11,039 861 1,000 1,000 1,000 - 4,973,400 4,886,091 4,736,901 149,190 5,345,800 5,186,666 4,619,668 566,998 33,500 24,637 24,482 155 18,292,500 17,776,316 16,606,018 1,170, 298 266,096,283 265,548,441 252,149,416 13,399,025 85,044,097 78,721,227 63,743,094 (14,978,133) - 1,830 381,335 379,505 1,869,900 1,708,773 8,416,699 6,707,926 (98,142,597) (102,278,011) (99,719,667) 2,558,344 (96,272,697) (100,567,408) (90,921,633) 9,645,775 - - 3,239,000 3,239,000 (11,228,600) (21,846,181) (23,939,539) (2,093,358) 45,470,300 57,344,608 57,344,608 - $ 34,241,700 $ 35,498,427 $ 33,405,069 $ (2,093,358) $ (23,939,539) (42,400) (7,203) 3,319,857 $ (20,669,285) The notes to the financial statements are an integral part of this statement. 24 COLLIER COUNTY, FL ®R10k. 14B 71 COMMUNITY REDEVELOPMENT! STATEMENT OF REVENUES, EXPEN0ITURE -S AN® O.HARJGE� FUN® BALANCES BUDGET AND ACTUAtjN0WGAAR) FOR-THE' RWAL YEAR'ENDE0 SEPTEMBER -30,' 2,000 Expenditures: Current: Economic environment Bayshore /Gateway personal services 398,400 398,400 390,019 8,381 Bays hore/Gateway operating 1,055,300 1,055,689 529,117 526,572 Bayshore /Gateway capital outlay 2,625,000 8,965,575 6,738,572 2,227,003 Immokalee redevelopment personal services Immokalee redevelopment operating Immokalee redevelopment capital Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing; uses: Loans issued Transfers out Total other financing uses Net change in fund balance Fund balance at beginning of year Fund balance attend of year Reconciliation: Excess of revenues over expenditures, budgetary basis Land purchased for resale Net change in fair value of investments Net change in fund balance, GAAP basis 250,600 280,600 272,587 8,013 688,000 Variance with 599,970 402,861 200,000 150,000 - 150,000 Final Budget 11,853,095 Original Final. Favorable Budget Budget Actual (Unfavorable) Revenues: Taxes $ 2,910,600 $ 2,910,600 $ 2,910,600 $ - Charges for services - - 10,645 10,645 Interest income 14,500 14,500 145,046 130,546 Miscellaneous - - 5,545 5,545 Total revenues 2,925,100 2,925,100 3,071,836 146,736 Expenditures: Current: Economic environment Bayshore /Gateway personal services 398,400 398,400 390,019 8,381 Bays hore/Gateway operating 1,055,300 1,055,689 529,117 526,572 Bayshore /Gateway capital outlay 2,625,000 8,965,575 6,738,572 2,227,003 Immokalee redevelopment personal services Immokalee redevelopment operating Immokalee redevelopment capital Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing; uses: Loans issued Transfers out Total other financing uses Net change in fund balance Fund balance at beginning of year Fund balance attend of year Reconciliation: Excess of revenues over expenditures, budgetary basis Land purchased for resale Net change in fair value of investments Net change in fund balance, GAAP basis 250,600 280,600 272,587 8,013 688,000 1,002,831 599,970 402,861 200,000 150,000 - 150,000 5,217,300 11,853,095 8,530,265 3,322,830 (2,292,200) (8,927,995) (5,458,429) 3,469,566 - 7,554,575 7,554,575 - (500,000) (1,714,000) (1,699,179) 14,821 (500,000) 5,840,575 5,855,396 14,821 (2,792,200) (3,087,420) 396,967 3,484,387 5,224,300 5,354,020 5,354,020 - $ 2,432,100 $ 2,266,600 $ 5,750,987 $ 3,484,387 $ 396,967 6,738,572 (663) $ 7,134,876 The notes to the financial statements are an integral part of this statement. 25 ASSETS Current assets: Cash, cash equivalents and investments Receivables: Trade, net Special assessments Interest Unbilled revenue Due from other funds Due from other governments Deposits Inventory Prepaid costs Restricted assets: Cash, cash equivalents and investments Total current assets Noncurrent assets: Restricted assets: Cash, cash equivalents and investments Receivables: Special assessments Advances Notes Deferred charges Capital assets: Land and nondepreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets 148 71 COLLIER COUNTY, FLORIDA 9TATCIIl NT OF NEV ASSETS PROPRIETARY FUNDS SEPTEIC 15tI130; 2009 Business -type Activities Enterprise Funds Governmental Activities - County Water Other Internal Service and Sewer Funds Total Funds $ 87,173,810 $ 23,000,995 $ 110,174,805, $ 46,212,890 6,074,618 3,941,672 10,016,290 40,410 662,119 - 662,119 - 198,215 124,067 322,282 62,999 4,664,465 423,323 5,087,788 - 33,947 46,289 80,236 13,789 333,261 1,121,314 1,454,575 38,365 2,301 - 2,301 557,457 2,809,637 123,538 2,933,175 535,140 •26,754 32,083 58,837 - 3,403,949 633,487 4,037,436 - 105,383,076 29,446,768 134,829,844 47,461,050 32,899,646 - 32,899,646 - 553,568 - 553,568 - 18,550,000 5,639,668 24,189,668 - 2,020,322 - 2,020,322 - 1,529,244 - 1,529,244 - 67,626,870 20,037,127 87,663,997 - 796,263,765 30,249,020 826,512,785 13,884,823 919,443,415 55,925,815 975,369,230 13,884,823 1,024,826,491 85,372,583 1,110,199,074 61,345,873 (Continued) 26 The notes to thefinancial statements are an integral part of this statement. 27 COLLIER TWRIDA. 148 STATEMFNTOF NETASSET5 PROPRIETARYPUNDS•- SEPTR•IOT:R 30,02009. Business -type. Activities Enterprise Funds Governmental Activities - County,Water Other Internal Service. and Sewer Funds Total Funds LIABILITIES Current liabilities: Accounts payable $ 3,624,222 $ 3,113,014 $ 6,737,236 $ 590,082 Wages payable 944,117 882,182 1,826,299 130,930 Retainage payable 309,466 - 309,466 - Due to other funds 311 426,463 426,774 10,326 Due to other governments 297 31,615 31,912 - Due to individuals - 377,455 377,455 - Self- insurance claims payable - - - 5,574,384 Compensated absences 1,145,706 807,705 1,953,411 177,421 Capital lease obligations - 131,926 131,926 Interest payable 2,783,994 - 2,783,994 - Bonds and loans payable 11,734,146 - 11,734,146 - Liabilities payable from restricted assets: Accounts payable 283,465 - 283,465 - Retainage payable 456,519 68,447 524,966 - Refundable deposits 64,811 200,753 265,564 - Notes payable 71,675 - 71,675 - Unearned revenue - 364,287 364,287 - Total current liabilities 21,418,729 6,403,847 27,822,576 6,483,143 Noncurrent. liabilities: Arbitrage rebate 993,889 - 993,889 - Self- insurance claims payable - - - 3,754,616 Compensated absences 286,427 201,925 488,352 44;357 Capital lease obligations - 359,814 359,814 - Net OPEB obligation - - - 1,381,471 Landfill post- closure liability - 1,913,827 1,913,827 - Bonds and loans payable, net 249,102,674 - 249,102,674 - Total noncurrent liabilities 250,382,990 2,475,566 252,858,556 5,180,444 Total liabilities 271,801,719 8,879,413 280,681,132 11,663,587 NET ASSETS Invested in capital assets, net of related debt 603,525,543 49,794,407 653,319,950 13,884,823 Restricted for growth related capital expansion 16,708,672 - 16,708,672 - Restricted for renewal and replacement 300,000 - 300,000 - Restricted for debt service 14,218,174 - 14,218,174 - Unrestricted 118,272,383 26,698,763 144,971,146 35,797,463 Total net assets $ 753,024,772 $ 76,493,170 829,517,942 $ 49,682,286 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds. 4,450,706 Net assets of Business -type Activities $ 833,968,648 The notes to thefinancial statements are an integral part of this statement. 27 COLLIER COUNTY, FLORMA STATEMENT WAEVENUES; EXPENSES-AND-C, HANGES- IN FUND-NET ASSETS PROPRIETARY "FUNDS FOR THE'FISCAL•YEAR ENCED SEPTEMBER30, 2009 Operating revenues: Charges for services Insurance proceeds Miscellaneous Total operating revenues Operating expenses: Personal services Operating Depreciation and amortization Total operating expenses Operating income (loss) fibre= operating revenues (expenses): Operating grants and contributions Interest income Insurance reimbursement Change in fair value of investments Rebatable arbitrage Interest expense Gain (loss) on disposal of capital assets �. Business -type- Activities Enterprise Funds Governmental Activities - Cou6ty -Water Other Internal Service and Sewer wands Total Funds $ 103,189,801 $ 51,863,064 $155,052,865 $ 61,372,696 - - - 1,691,111 1,349,431 179,491 1,528,922 124,938 104,539,232 52,042,555 156,581,787 63,188,745 22,573,636 21,463,016 44,036,652 3,057,665 27,192,647 48,000,093 75,192,740 60,065,667 31,634,972 3,201,495 34,836,467 581,246 81,401,255 72,664,604 154,065,859 63,704,578 23,137,977 (20,622,049) 2,515,928 (515,833) 57,466 3,177,662 3,235,128 - 2,186,776 222,860 2,409,636 184,229 343,421 207,768 551,189 201 (12,063) (2,923) (14,986) 13,533 511,691 - 511,691 - (8,316,846) (25,195) (8,342,041) - (320,242) 58,046 (262,196) 6,421 Total non - operating revenues (expenses) (5,549,797) 3,638,218 (1,911,579) 204,384 Income (loss) before contributions and transfers 17,588,180 (16,983,831) 604,349 (311,449) Capital grants and contributions 17,029,766 1,117,391 18,147,157 - T ransfers in 177,594 16,926,706 17,104,300 14,239 Transfers out (3,818,413) (689,796) (4,508,209) (17,748) Change in net assets 30,977,127 370,470 31,347,597 (314,958) Net assets _ beginning Net assets - ending Consolidation adjustment for internal service fund activities related to enterprise funds. Change in net assets of Business -type Activities 722,047,645 76,122,700 49,997,244 $ 753,024,772 $ 76,493,170 $ 49,682,286 (169,787) $ 31,177,810 The notes to the financial statements are an integral part of this statement. FM COLLIER. COUNTY, FLORIDA. STATEMENT ®F!CASIi FLOVVS P;RCDPRIETARY FUNDS. FOR THE., FISCALiYEAR ENDED SEPTE)1 RER; 30,! 2009 Cash flows from operating activities: Cash received for services Cash received from other funds for services Cash received from employees for services Cash received from insurance Cash received from other governments for services Cash received from refundable deposits Cash received from retirees for services Cash payments on behalf of retirees Cash payments for goods and services Cash payments to employees Cash payments on refundable deposits Net cash provided by (used for) operating activities Cash flows from non - capital financing activities: Cash received from operating grants Cash transfers from other funds Cash transfers to other funds Net cash provided by (used for) non - capital financing activities Cash flows from capital and related financing activities: System development charges Special assessment collections Receipts from insurance reimbursements Proceeds from disposal of capital assets Proceeds from capital grants Proceeds from state revolving loans Payments for capital acquisitions Principal payments on state revolving loans Principal payments on bonds Principal payments on leases Interest and fiscal agent fees paid Net cash used for capital and related financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Business -type Activities Enterprise Funds Governmental Activities - County Other. Internal Service Water and Sewer Funds Total Funds $ 103,849,138 $ 47,847,535 $151,696,673 $ - - - - 56,220,442 - - 4,822,494 - - - 2,053,880 271 - 271 93,314 54,916 1,110,547 1,165,463 - - - 1,191,029 - (1,088,796) (26,865,934) (40,885,579) (67,751,513) (60,288,409) (22,349,200) (21,288,673) (43,637,873) (3,023,509) (128,248) (1,210,917) (1,339,165) - 54,560,943 (14,427,087) 40,133,856 (19,555) - 3,021,354 3,021,354 - 178,127 19,826,060 20,004,187 - (22,359,255) (8,821,693) (31,180,948) - (22,181,128) 14,025,721 (8,155,407) - 7,569,927 - 7,569,927 - 614,026 - 614,026 - 343,421 207,768 551,189 201 59,716 60,240 119,956 8,400 653,419 813,758 1,467,177 - 9,861,546 - 9,861,546 - (24,646,707) (4,671,140) (29,317,847) (83,033) (7,038,563) - (7,038,563) - (4,905,000) - (4,905,000) - - (126,145) (126,145) - (10,214,453) (25,195) (10,239,648) - (27,702,668) (3,740,714) (31,443,382) (74,432) 2,803,563 232,415 3,035,978 134,763 2,803,563 232,415 3,035,978 134,763 Net increase (decrease) in cash, cash equivalents and investments 7,480,710 (3,909,665) 3,571,045 40,776 Cash, cash equivalents and investments, October 1, 2008 115,996,695 27,544,147 143,540,842 46,172,114 Cash, cash equivalents and investments, September 30, 2009 $ 123,477,405 $ 23,634,482 $147,111,887 $ 46,212,890 Current cash, cash equivalents and investments $ 87,173,810 $ 23,000,995 $110,174,805 $ 46,212,890 Current cash, cash equivalents and investments - restricted 3,403,949 633,487 4,037,436 - Noncurrent cash, cash equivalents and investments - restricted 32,899,646 - 32,899,646 - Cash, cash equivalents and investments, September 30, 2009 $ 123,477,405 $ 23,634,482 $147,111,887 $ 46,212,890 (Continued) 29 COLLIER COUNTY; FLORIDA STATEMENT OF CASH; FLOWS PROPRIETARY FUNDS' (CONTINUED) RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES FOR °THE FISCAL-YEAR ENDED SEPTEMBER 30, 2009 Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense Amortization of bond issuance costs Amortization of utility acquisition adjustment Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Deposits Prepaid costs Inventory Accounts payable Wages payable Due to other funds Due to other governments Due to individuals Compensated absences Refundable deposits Unearned revenue Self- insurance claims payable Net OPEB obligation Landfill post closure liability Total adjustments Net cash provided by (used for) operating activities Non -cash investing, capital and financing activities: 14a 7': Business -type Activities Enterprise Funds Governmental Activities - County Other Internal Service -Water and Sewer Funds Total Funds $ 23,137,977 $(20,622,049) $ 2,515,928 $ (515,833) 31,033,811 3,201,495 34,235,306 581,246 540,706 - 540,706 - 60,455 - 60,455 - (392,158) 2,060,614 1,668,456 603,546 (28,178) (331,883) (360,061) 104,706 (214,453) (11,659) (226,112) 44,742 10,993 - 10,993 (44,511) (26,754) 18,109 (8,645) 638,607 46,536 685,143 (115,013) (272,795) 700,837 428,042 (241,093) 68,491 69,596 138,087 15,793 (146) 384,339 384,193 10,071 (61,489) (38,140) (99,629) (64) 155,945 103,023 258,968 18,363 (90,069) (100,370) (190,439) - - (6,202) (6,202) - - - - (957,000) 475 492 - 98,667 98,667 - 31,422,966 6,194,962 37,617,928 496,278 $ 54,560,943 $(14,427,087) $ 40,133,856 The enterprise funds experienced a non -cash investing loss due to a change in the fair value of investments as follows: County Water and Sewer $ (12,063) Otherfunds (2,923) Total $ (14,986) There were non -cash captial assettransfers out of the County Water and Sewerfund as capital assets with a historical cost of $9,158 and no accumulated depreciation were transferred out to governmental activities. There were non -cash contributions of $259,697 in the non -major enterprise funds as assets with a historical cost of $288,552 were purchased with cash of $28,855 and a State of Florida grant. There were non -cash capital asset transfers in of $55,049 in the non -major enterprise funds as capital assets with a historical cost of $55,049 and no depreciation were transferred from governmental activities. There were non -cash capital asset transfers out in the non -major enterprise funds as capital assets with a historical cost of $62,514 and no depreciation were transferred to governmental activities. The internal service funds experienced a net non -cash investing gain due to a change in the fair value of investments as follows: Internal service funds $ 13,533 There were non -cash capital asset transfers of $14,239 in the internal service funds, as capital assets with a historical cost of $162,074 and accumulated depreciation of $147,835 were transferred in from governmental activities. There were non -cash capital asset transfers out of $17,748 in the internal service funds, as capital assets with a historical cost of $18,049 and accumulated depreciation of $301 were transferred to governmental activities. The notes to the financial statements are an integral part of this statement. 30 COLLIER ". COUi 'Tl', FLORIDA ST�,TE ''T OF I�UC'3�r� ' �ti�ETti �'D LIB- ��ILiTIES AG -ENCY FU.NM SEPTEMBER-30i.200.9 Agency Funds ASSETS Cash, cash equivalents and investments $ 29,790,645 Receivables: Interest 8,670 Other 37,039 Total assets $ 29,836,354 LIABILITIES Due to other governments $ 6,663,651 Due to individuals 1,864,624 Refundable deposits 20,461,920 Due to special assessment holders 846,159 Total liabilities $ 29,836,354 The notes to the financial statements are an integral part of this statement. 31 14B 7" mm� THISPAGE!INTENTIONALLY -�55 BLANK COLLIER-COUNTY, ROR9 ®A. S 14B � NOTIES,TO'THE FINANCIAL$TATEME6 TB SEPTEMBER 30, Z®09. INDEX NOTE PAGE NUMBER 1 Summary of Significant Accounting Policies 34 2 Cash, Cash Equivalents and Investments 44 3 Trade Receivables 47 4 Interfund Payables and Receivables 48 5 Capital Assets 50 6 Long -Term Obligations 51 7 Conduit Debt Obligations 59 8 Defeased Debt 59 9 Pension Plan Obligations 60 10 Transfers 61 11 Net Assets /Fund Balances 62 12 Risk Management 63 13 Other Postemployment Benefits' 65 14 Landfill Liability 70 15 Significant Contingencies 70 16 Significant Commitments 71 17 Fund Deficits 71 18 Restatement of Beginning Net Assets and Beginning Fund Balances 72 19 Special Item 72 20 Subsequent Event 72 33 14 COLLIERCOUNTY, FLORIDA 4 7 H018TO THEE FINAN AL- STATE10 ENTS SEPTEMER -30;' 009 NOTEA -SUMMARY OF SIGNIFICANT ACCOUNTING—. POLICIES THE REPORTING ENTI T Y The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Supervisor of Elections. The Constitutional Officers are elected countywide. Under the direction of the Clerk of the Circuit Court, the Collier County Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board, impose its will on the organization, and the existence of a financial benefit /burden relationship or fiscal dependency. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex- officio. These entities are legally separate, however financial support has been pledged and financial or operational policies may be significantly influenced by the County. In accordance with Governmental Accounting Standards Board (GASB) Statement ' No. 14, The financial Reporting Entity, as amended by GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District The District was established by Chapter 88 -499, as amended by Chapter 03 -353, Laws of Florida, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Goodland Water District The District was established by a Special Referendum Election authorized by Collier County Ordinance 75 -5 and Section 125.01(q), Florida Statutes. The District provides potable-water service to the residents of Goodland. Collier County Community Redevelopment Agency (CRA) The CRA was established by Resolution 2000 -82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore /Gateway Triangle Redevelopment areas. These two redevelopment areas are geographically separate and distinct. 34 COLaISO��ER.,C_0 q,I�YA1�S*U yp V',L Q.R!QA-_- 5� 14Bi SEP 1 6:YVII� R-30 D • 2009 . . NOTE 1-- SUMMARY OF SIGN IFICAWACCOUNTING P.OLICIE-S- CONTINUED The County's discretely, presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units' Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB 39, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. Collier County Housing Finance Authority, The Authority was formed in 1980 by Collier County.Ordinance 80 -66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by.the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Collier County Health Facilities Authority, The Authority was established in 1979 by Collier County Ordinance 79 -75 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Collier County Industrial Development Authority The Authority. was created in 1978 by. Collier County. Resolution 78 -94 to facilitate the financing of projects that; promote economic growth and increase opportunities' for employment in the County; Their. financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority.is disclosed in Note 7, "Conduit Debt Obligations ". Collier County Educational Facilities Authority. The Authority was created in 1999 by. Collier County Resolution 99 -177 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court. 35 OLILVEG� COUNTY,` FLORIDA 148 '�; MOTE TOITHE. fFliilANCIAL SiTATEMIEU�TS SEI -TEMM X00 2000 MOTE-1— SUMMARY OF SIG N11EICANVACCOUNTI KG. POLKIES - CONTINUED THE REPORTING ENTITY— CONTINUED Administrative Offices: Collier County Water and Sewer District and Goodland Water District 3301 East Tamiami Trail Naples, Florida 34112 Bayshore Gateway Community Redevelopment Agency 2740 Bayshore Drive, Unit 17 Naples, Florida 34112 Immokalee Community Redevelopment Agency 3301 East Tamiami Trail Naples, Florida 34112 Collier County Health Facilities Authority and Housing Finance Authority 5811 Pelican Boulevard, Suite 210 Naples, Florida 34108 Collier County Industrial Development Authority and Educational Facilities Authority 3050 N. Horseshoe Drive, Suite 120 Naples, Florida 34104 GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business type activities of Collier County. The government-wide financial statements consist of a Statement of'Net Assets and a Statement of 'Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business -type activities. As a general rule, the effect of interfund activity has been eliminated from the government wide financial statements. Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Assets reports all financial and capital resources of Collier County's governmental and business -type activities. Net assets equal assets minus liabilities, and is shown in three categories: invested in capital assets, net of related debt; restricted net assets and unrestricted net assets. The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree the particular program has been self - supporting. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. 36 NOTE- S :.TOTHE-F;IN ANCIALSTATEMENTfS, 4 L1 $EPTIE_NINER"30i 2009 : (NOTE 1- StD10llli'OIARY OF MGNIFICANT.A000UNTING POLICIES- CONTINUED GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS — CONTINUED When both restricted and unrestricted. resources are available, restricted resources will be used first for incurred expenditures, and unrestricted as needed. The fund financial statements follow the government wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances is a reconciliation explaining the differences between the governmental fund presentation and the government wide presentation. BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund — the General fund is the general operating fund of the County. All general tax.revenues and other receipts that are not accounted-for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County's consolidated General Fund. Road Impact Districts Fund — the Road Impact Districts Capital Project fund is used to account for the receipt and expenditure of road impact fees collected from qualifying new construction. The impact-fees must be used for the acquisition and construction of transportation related facilities by district. Road Construction Fund —the Road Construction Capital Project fund is used to account for the receipt and expenditure of gas taxes and bond proceeds. Projects include, but are not limited to, right -of -way, acquisition, design and construction of various transportation improvements. Community Redevelopment Fund — the Community Redevelopment Fund is used to account for the receipt and expenditure of tax increment revenues relating to the Bayshore /Gateway Triangle and Immokalee Community Redevelopment Authorities. The following is reported as a major enterprise fund: County Water and Sewer Fund — the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County's unincorporated area. Collier County also maintains the following nonmajor fund types: Special Revenue Funds — Special revenue funds are used to account for the accumulation of resources set aside for a specific purpose. Debt Service Funds — Debt service funds are used to account for the accumulation of resources for the payment of principal, interest and other- expenditures on long -term obligations, other than bonds and notes payable from the operations of business -type activities. 37 COWER- COUNTY, FLORIDA 148 • N®TE977b TIDE FINANCIAL STATEMIENTS SEPT(EMBER :9% 2009 NOTE I - SUMMARY OF SIGNIFICANT"ACC®UNTiNG, POLICIES v CONTINUED BASIS OF PRESENTATION — CONTINUED Capital Proiect Funds — Capital project funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Enterprise Funds, — Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds — Internal service funds are used to account for the provision of goods and services by one department to another department within the County or to other governmental units on a cost reimbursement basis. Agency Funds— Agency funds are custodial in nature and do not report the results of operations (assets equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for individuals, private organizations or other governments. The Board of County Commissioners, Sheriff, Clerk of the Circuit Court and Tax Collector all maintain agency funds. BASIS OFACCOUNTING AND MEASUREMENT FOCUS Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. The government wide financial statements, as well as the fund financial statements for the proprietary funds, are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized in the period in which they are earned and expenses are recognized in the period incurred. Grant revenues are recognized when eligibility requirements are met. The intent in proprietary operations is that the costs of providing goods or services to the general public be financed primarily through user charges, or where periodic determination of revenues earned, expenses incurred, and /or net income is deemed appropriate. Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non - operating revenues and expenses. All governmental fund financial statements are reported using a current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized in the period in which they become both measurable and available to finance expenditures of the current period. Available means collectible within the current period or soon enough thereafter, generally 60 days, to be used to pay liabilities of the current period. Primary revenues including non -grant intergovernmental revenues, charges for services and interest are treated as susceptible to 38 GQWERWUNTY F;bQRAUA. NOTES-70"TH E -FO MANCIAL, STATEM ENTS: 14B 7 SEPTEMBER 30;,2009.7 NOTE 1:- SUMMARY OfF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED: accrual under the modified accrual basis. In applying the susceptibility -to- accrual concept to grant revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. In addition, grant revenues are considered available if they are expected to be collected within one year of the end of the current fiscal period. Property taxes are discussed later in this footnote. Other revenue sources are not considered measurable and available and are noic treated as susceptible to accrual. Expenditures are recorded when the related, fund liability is incurred. Exceptions to this general rule include accrued compensated absences and principal and interest on long -term debt. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by.the Board of County Commissioners in establishing the budgets for the County: 1) Within fifteen days after certification of the ad valorem tax. roll by the Property Appraiser, the County. budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2) Within eighty days of the certification of value, but not earlier than sixty -five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and. announces publicly. the percentage, if any, by.which the recomputed proposed millage rate exceeds the rolled -back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3) Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4) A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy.is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively. adopted millage rate, except as allowed for by emergency. provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6) The County Manager approves intradepartmental budget changes less than $50,000 that do not alter the total expenditures of the department. All other budgetary changes must be approved bythe Board of County Commissioners as a matter of policy. The initial adopted budget was amended in accordance with the Florida Statutes. 39 COLLIERCOUNTY FLORIDA 14B 71 NOTES TO11* 41NANCiAL-STATEME NTS SEPTEMOER 30;'2009 NOTE 1- SUMMARY OF SIGNIFICAN ACt0O1961ITING POLICIES = CONTINUED 7) Florida Statute Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board funds except for agency funds and the Impact Fees Escrow special revenue fund. The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts is a fee officer, and as such, prepares his budget in accordance with Section 215,35, Florida Statutes. The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the Board. The Clerk of Court's budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Florida Department of Revenue. Budgets are adopted for all governmental funds except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non - budgeted revenues and expenses and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current-year. Capital project costs are budgeted in the year they are anticipated to be obligated: In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. CASH, CASH EQUIVALENTS AND INVESTMENTS The County maintains a cash and investment pool that is available for use by all funds. The Clerk of the Circuit Court administers the investment pool pursuant to an investment policy established by the Board of County Commissioners under Florida Statute, Section 218. Subsequent to the amendment of Florida Statute 28.33, interest is allocated monthly to each fund based on the individual fund's average daily balance in the pool. Pursuant to the provisions of GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, all investments are stated at fair value. Cash equivalents are short -term investments -with maturities of three months or less from the date purchased. ACCOUNTS RECEIVABLE —UNBILLED REVENU Unbilled charges for services are accrued in the County Water and Sewer, Emergency Medical Services and Goodland Water funds by prorating subsequent bills. 40 COLLI.ER COUNTY; ELO.119 ®A NOTES .TO TUBE RIYANCIALSTATEMEWS . SETTEIVIBER3. F 2009: 148 . NOTE 2 -SUMMARY MARY OF SIGNIFICANT,-ACCOUNTING POLICIES — CONTINUED 1 INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first -in, first -out method: Inventory in the governmental funds consists of supplies held for consumption and land. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and .are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are offset by a reserve, which indicates that they do not-constitute available resources. Inventories and prepaid costs in the government wide and proprietary fund financial. statements are reported as an expense when consumed. CAPITAL ASSETS Land, buildings, improvements and equipment are stated at cost. Capital contributions are recorded.at their fair value on the date donated. Facilities constructed using system development impact fees, collected from developers and customers, are stated at cost. The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year. Expenditures for maintenance and repairs are charged to operating expenses. The cost of assets retired or sold, together with the related accumulated depreciation, is removed from the accounts and any gain or loss on disposition is credited or charged to earnings. Depreciation is calculated using the straight -line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Fixed Asset Estimated Useful Life Buildings 20 -45 years Infrastructure 3 -30 years Improvements other than buildings 4 -45 years Machinery.and equipment 3 -10 years For constructed assets including buildings, infrastructure and improvements other than buildings a half year convention is used in placing these assets into service. Costs incurred in the renourishment of beaches are included in the infrastructure class of capital assets and are capitalized and depreciated over three years. Infrastructure acquired prior to fiscal years ended after June 30, 2980 is not reported: CAPITAL LEASE OBLIGATIONS In the government -wide financial statements and proprietary fund financial statements capital lease obligations and the related cost of assets acquired are reflected in the Statement of Net Assets. For capital lease obligations originating in governmental funds, an expenditure for. the asset and the offsetting amount of the financing source is reflected in the fund financial statements in the year of inception. 41 WIL ER CI0Ui TY, FLOR11 UA H'OTES$O7 HE- fFII AUCIALSTATEMENTS SEPTEMBER 50,-2009 NOTE-1 -SU 11fiMARY OF SIGNIFIICAN'T'ACCOUNTING POLICIES = CQNTINUE® BOND PREMIUMS, DISCOUNTS AND ISSUANCE COSTS Bond premiums, discounts and issuance costs for the governmental activities and the business -type activities are deferred and amortized over the term of the bonds using "the straight -line method. Bond discounts are presented as a reduction of the face amount of bonds payable,- premiums as an increase, while issuance costs are recorded as deferred charges, which are shown on the face of the Statement of Net Assets as a component of noncurrent assets. In the governmental fund financials, bond premiums, discounts and issuance costs are recognized in the current period. DEFEA5ANCE OF DEBT For refundings resulting in the defeasance of debt, generally accepted accounting principles require that the difference between the reacquisition price and the net carrying amount of the old debt be deferred and amortized over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. The straight -line method is used for amortization of the deferred charge. 'INTEREST COST In the proprietary funds interest costs are. capitalized in accordance with the provisions of Financial Accounting Standards Board (FASB) Statement No. 34, Capitalization of Interest Cost, and FASB Statement No. 62, Capitalization of Interest Cost in Situations Involving Certain Tax - Exempt Borrowings and Certain Gifts and Grants, when applicable. PROPER T `I TAXES Property taxes become due and payable on November 1st of each-year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2009 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1st delinquent date as follows:' November - 4 %, December - 3 %, January - 2 %, and February -1 %. Tax certificates for the full amount of any unpaid taxes must be sold not later than June 1st of each year. No accrual'for the property tax levy becoming due in November 2009 is includefln the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. Key dates in the property tax cyele for the fiscal year ended September 30, 2009 are as follows: Property Tax Cycle Assessment roll compiled Assessment roll certified Millage resolution approved Beginning of fiscal year for tax levy Taxes due and payable (levy date) Due date Delinquent (lien date) Tax certificates sold Date January 1; 2008 July 1, 2008 Within 35 days of the certification of the assessment roll October 1, 2008 November 1, 2008 March 31, 2009 April 1, 2009 Prior to June 1, 2009 42 CQUIER -CO NTY; FL®R1.QX 14B 7 SEPTfE'MBER30,: 009 : NOTE 1- SUMMARY OF SIG NI F.ICAWA000UNTING P.OEICIES - CONTINUED. APPLICATION.OF FASB PRONOUNCEMENTS TO PROPRIETARY FUNDS In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the County has elected not to apply. those FASB Statements and Interpretations issued after November 30, 1989. ACCOUNTING ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may.differ from those estimated. IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS Effective October 1, 2008 the County adopted the provisions of GASB Statement NO. 49, Accounting and Financial Reporting for Pollution Remediation Obligations. The effect of this adoption was to establish uniform reporting standards for pollution remediation obligations. The standard defines a pollution remediation obligation as an obligation to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities. In. two instances land was purchased by Collier County and monies were withheld from the seller and escrowed as part of the purchase for site remediation. The total amount escrowed for these land purchases was $300,000, and per engineering reports, this amount exceeded the cost of remediation. The adoption of this statement did not have a material impact on the County's financial position or results of operations. UNEARNED REVENUE AND DEFERRED REVENUE In instances where assets have been received by.the County.for services to be rendered in future periods; asset balances are offset by.an unearned revenue liability.account in the financial statements. Examples of unearned revenues of the County as of September 30, 2009 are unspent State Housing Initiative Partnership (SHIP) monies and cash receipts associated with unspent advance grant agreements. Deferred revenue liabilities are reported in the governmental funds to offset receivables that do not meet the availability criterion under the modified accrual basis of accounting. Primary examples of the County's deferred revenues are amounts associated with SHIP loans made to qualifying organizations and deferred impact fee agreements made with developers and individuals. ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. 43 COLLIER COUNTY, FLORIDA 14B 7 NOTE5 TO47HE FINAWAL STATED NTS SEPTEM1 ER-30, 2009 NOTE.1- SUMMARY OF SIGN iFKAIL T."ACMUNTING` POLICIES — CONTINUED It is the Board of County Commissioners'; policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and 100% of allowable vacation hours at the current rate of pay. The Sheriffs policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,000 hours, and up to 400 hours of unused vacation time. Both the Clerk of the Circuit Court's and Tax Collector's policy's allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of unused sick leave payout based -upon years of service, not to exceed 1,040 hours, and up to 240 hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government -wide financial statements and the proprietary fund financials. A liability is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are considered due and payable as of yearend. NOTE-1 = CASH; CASH: EQUiVALENTS-AND INVESTMENTS As of September 30, 2009, the County had the following cash, cash equivalents and investments: Investment Cash on hand Demand deposits State Board of Administration Pool: Pool A Pool B Federal Home Loan Bank Federal Home Loan Bank Federal National Mortgage Assoc. Federal Home Loan Bank Federal Home Loan Mortgage Corp. Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal National Mortgage Assoc. Federal Home Loan Bank Total Maturities 'Fair Value Call Date Call Fre *quency (Raging N/A $ 89,277 N/A N/A N/A N/A 195,965,729 N/A N/A 'N /A N/A 704,367 N/A N/A AAAm N/A 26,313 N/A N/A N/A 5/20/2010 50,015,500 11/20/2009 one -time AAA 6/1/2010 50,031,500 none N/A AAA 8/12/2010 51,187,500 none N/A AAA 9/22/2010 25,015,750 3/2212010 one -time AAA 9/22/2010 13,854,497 none N/A AAA 9/30/2010 50,094,000 none N/A AAA 1/13/2011 39,062,106 10/13/2009 one -time AAA 2/18/2011 25,070,250 2/18/2010 one -time AAA 7/27/2011 72,849,191 1/27/2010 one -time AAA 8/10/2011 29,521,856 11/10/2009 continuous AAA 8/17/2011 50,078,000 11117/2009 continuous AAA 2/3/2012 25,054,750 213/2010 one -time AAA $ 678,620,585 The County maintains a cash and investment pool that is available for use by all funds. Each fund'siportion of this pool is displayed on the'balance sheet under the heading of Cash, Cash Equivalents and Investments. Pursuant to the amendment of Florida Statute 28.33, effective July 1, 2009, investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. 44 COMER..COUNTY,FLQRoDA -: 14B 7 HOTEST0. -TA I�:FINANQAL�SrTATEI@ MTS. SERTFMREK-30; 2009 NOTE 2 — CASFI, CASH EQUIVALENTS AND INVESTMENTS e CONTINUED CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County's investment practices are governed by Florida Statutes, Chapter 218 and the County's Investment Policy. The County's Investment Policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (SBA), direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation /Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by,U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers' acceptances rated "AA" or higher, prime commercial paper.rated "A =1" and "P -1 ", tax - exempt obligations rated "AA" or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved.in a repurchase agreement must execute the County's master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a . term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and:104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. The SBA is an investment pool administered by the State Board of Administration, under the regulatory oversight of the State of Florida, The SBA operates two pools, Fund A (LGIP) and Fund B, with Fund B carrying a AAAm rating from Standard & Poor's. At September 30, 2009, the Sheriff had $730,680 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool. Of this amount, $704,367 is invested in the LGIP and $26,313 in the Fund B Surplus Funds Trust Fund. The LGIP investment is fully liquid and carries a weighted average days to maturity. of 31.5 days. Fund B is accounted for as a fluctuating net asset value pool and the fair value factor for September 30, 2009 was .54915. The Fund B amount has a weighted average life of 6.69 years. Fund B cash holdings continue to be distributed to participants as they become available from maturities, sales and income received. CUSTODIAL CREDIT RISK All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public Deposits Act ". Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range from 50% to 12S% depending upon the depository's financial condition. Any.losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. 45 COLLIER, - COUNTV,. 011111 ®A WT891GTHE FINANCIAL§TATEf@11ENTS SEPTEMW-30o X000 NOTE- ® CASH CASK EQUIVALENTS ANY, INVESTMENTS m CONTINUED The policy requires execution of a third -party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the, County's name. At September 30, 2009 the County had demand deposits of $195,965,729. These demand deposits do not include discretely presented component unit deposits of $406,147. These deposits were fully covered -by federal depository insurance or by collateral, in the County's name as required by Sections 200.07 and 250.08 of the Florida Statutes. INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair valise of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall; have an average maturity of not more than five years, except for the Florida Local Government Surplus Trust Fund (SBA), which has no stated final maturity, and mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. CONCENTRATION OF CREDIT RISK The County's investment policy establishes limitations on portfolio composition in order to control credit risk. The policy allows 100 percent of the portfolio to be invested in U.S. Government Securities, Agencies and Instrumentalities (excluding mortgage securities), 50 percent to be invested in SBA, 30 percent to be invested in certificates of deposit, 20 percent to be invested in qualifying repurchase agreements and 10 percent each in the categories of fixed income mutual funds, domestic bankers' acceptances, prime commercial paper and tax- exempt obligations. The portion of the County's portfolio invested in U.S. Government Instrumentalities is detailed as follows, at September 30, 2009: Percent of Issuer Portfolio Federal- Nome Loan Bank 54.04% Federal Nome Loan Mortgage Corporation 2.04% Federal' National'Mortgage Association 14.92% Total U.S. Government Instrumentalities 71.00% 46 COLL1ER.CQQNTY F.LQRl[P& NOTES-IM THEMAIDCIAL -STATE .EMS SEPTE OER.30 2009.: NOTE 2 — CASHj CASH EQUIVALENTS AhID JMVESiTMENTS� CONTINUED. Reconciliation of cash, cash equivalents and investments to the basic financial statements: Primary government: Cash, cash equivalents and investments Restricted cash, cash equivalents and investments - current Restricted cash, cash equivalents and investments - noncurrent Agency funds: Cash, cash equivalents and investments Total NOTE 3 - TRADE RECEIVABLES 14B 7 $ 349,597,651 22,622,771 276,609,518 29,790,645 $ 678,620,585 Trade receivables for governmental and business -type activities are net of an allowance for doubtful accounts as follows: General Fund Road Impact Districts Road Construction Nonmajor governmental funds Total receivables reported in governmental funds Total receivables reported in internal service funds Developer contributions receivable Total Governmental Activities trade receivables County Water and Sewer Nonmajor enterprise funds Total Business -type Activities trade receivables Trade Allowance for Net Trade Receivables Doubtful Accounts Receivables $ 741,821 $ 88,605 $ 653,216 27,783 - 27,783 1,936,562 - 1,936,562 1,356,828 71,330 1,285,498 4,062,994 159,935 3,903,059 51,277 10,867 40,410 11,100,000. - 11,100,000 $ 15,214,271 $ 170,802 $ 15,043,469 6,396,411 321,793 6,074,618 27,960,654 24,018,982 3,941,672 $ 34,357,065 $ 24,340,775 $ 10,016,290 47 COLL. IlEt COUNTY; FL6916A 148 711 N- OTES10 THE FIJIAN AL S- TA$MENTS S PYEWER 0, -20®9 NOTE 4 114TERFUN® PAYABLES Aft®° RECEIVABLES ADVANCES Advances are made to various funds for the purposes of capital improvements. Reimbursements will take places over the next several years. Advances to and advances from other funds at September 30, 2009 were as follows: Business -type Activities: County Water and Sewer 18,550,000 - Other business -type funds: Solid Waste Disposal 51639,668 - Total Business -type Activities 24,189,668 - Total Advances $ 54,112,643 $ 54,112,643 DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. 48 Advance Advance To From Governmental Activities: General Fund $ 7,045,275 $ - Other governmental funds: Community Development Fund - 1,400,000 Tourist Development Fund - 57,950 Capital Improvement Revenue Bonds Fund 19,570,777 Parks Improvement Fund 1,400,000 - County -Wide Library Impact Fees Fund - 8,543,825 Correctional Facilities Impact Fees Fund - 53,100 Emergency Medical Services Impact Fees Fund - 1,159,300 Government Facilities Impact Fees Fund - 12,933,491 Law Enforcement Impact Fees, Fund - 10,394,200 Other Capital Projects Funds 21,477,700 - Total Governmental *Activities 29,922,975 54,112,643 Business -type Activities: County Water and Sewer 18,550,000 - Other business -type funds: Solid Waste Disposal 51639,668 - Total Business -type Activities 24,189,668 - Total Advances $ 54,112,643 $ 54,112,643 DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. 48 N O. TE- STO:TbE-:'F;1[lANCI,ALS4A -TE 8EN S.. 5EPTEMOfI130, 0.00; 14 B NOTE 4- INTERFUND.IPAYAfBLESAND RECEIVABLES" CONTINUED - Due from and due to other funds at September 30, 2009 were as follows: 49 Due From Due To Govern BV entaI!Activitiese General Fund $ 3,672,793 $ 1;100,583 Road Impact Districts 3,496 73 Road Construction 974 30 Other Governmental Funds: Unincorporated Area MSTD 439,895 93,958 Community, Development - 20,560 Water Management and Pollution Control 54,502 - Grants and Shared Revenues 28,149 3,110,569 Improvement Districts 45,265 - Fire Control Districts 40,201 20,639 Lighting Districts 5,733 - 911 Enhancement Fee - 47,661 Tourist Development 113,799 357 State Housing Initiative Partnership - 47 800 MHz - 183, State Court Administration 77,990 - Utility Fee Trust 1,131 - Conservation Collier 138,396 Other Special Revenue Funds 54 100,714 Gas Tax Revenue Bonds - 275 Pooled Commercial Paper Program Loan - 2,164 Caribbean Gardens Loan 121,746 - Stormwater Improvement Assessment Bonds 1,067 - Limited General Obligation Conservation Collier Bonds 53,251 - Forest Lakes Limited General Obligation Bonds 6,987 - County -Wide Capital Improvements - 3,962 Parks Improvements 38,233 36 Water Management 550 - Other Capital Projects 1,005 331 Total other governmental funds 1,167,954 3,401,456 Bus! ness-type.Acth ities: County Water and Sewer 33,947 311 Other Business -type funds: Solid Waste Disposal 46,289 29,070 Emergency Medical Services - 287 Collier Area Transit 397,106 Total other business -type funds 46,289 426,463 Interrna8 Service Funds 13,789 10,326 Total All Funds $ 4,939,242 $ 4,939,242 49 COLLIER COUNTY, FLORIDA NOVESIT-0 THE- FINANCIAL ST EIVIEWS SEPTEM BER30, 1009 NOTE'S � CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2009 is as follows: 14B 7 October 1, Deductions/ September 30, 2008, as restated Additions Reclassifications 2009 Governmental Activities: 70,768,539 11,238,279 (7,766) 81,999,052 Capital assets not depreciated: 171,109,753 27,099,391 - 198,209,144 Land and other non - depreciable assets $ 314,971,954 $ 53,783,550 $ (1,895,437) $ 366,860,067 Construction in progress 422,485,649 98,294,309 (270,436,187) 250,343,771 Total capital assets not depreciated 737,457,603 152,077,859 (272,331,624) 617,203,838 Capital assets depreciated: 793,435,998 (34,989,877) 269,001,631 1,027,447,752 Buildings 291,080,881 2,328,181 124,971,162 418,380,224 Infrastructure 543,100,843 8,557,691 140,358,913 692,017,447 Improvements otherthan buildings 200,951,899 1,766,217 4,352,421 207,070,537 Machinery and equipment 150,853,352 18,331,174 (7,606,692) 161,577,834 Total capital assets depreciated 1,185,986,975 30,983,263 262,075,804 1,479,046,042 Less accumulated depreciation: Buildings 70,768,539 11,238,279 (7,766) 81,999,052 Infrastructure 171,109,753 27,099,391 - 198,209,144 Improvements other than buildings 48,172,791 9,536,596 - 57,709,387 Machinery and equipment 102,499,894 18,098,874 (6,918,061) 113,680,707 Total accumulated depreciation 392,550,977 65,973,140 (6,925,827) 451,598,290 Total depreciable capital assets, net 793,435,998 (34,989,877) 269,001,631 1,027,447,752 Total governmental activities 28,832,995 1,601,085 (1,367,884) 29,066,196 capital assets, net $ 1,527,265,122 $ 117,087,982 $ (3,329,993) $ 1,644,651,590 Bu sin ess =type Activities: Capital assets not depreciated: Land and other non - depreciable assets $ 24,058,192 $ 321,386 $ 392,441 $ 24,379,578 Construction in progress 137,771,163 21,371,001 (95,857,745) 63,284,419 Total capital assets not depreciated 161,829,355 21,692,387 (95,857,745) 87,663,997 Capital assets depreciated: 258,254,150 34,235,306 (1,268,546) 291,220,910 Buildings 129,996,357 149,252 5,223,072 135,368,681 Improvements other than buildings 853,103,237 10,071,757 90,123,824 953,298,818 Machinery and equipment 28,832,995 1,601,085 (1,367,884) 29,066,196 Total capital assets depreciated 1,011,932,589 11,822,094 93,979,012 1,117,733,695 Less accumulated depreciation: Buildings 56,123,190 3,437,521 392,441 59,953,152 Improvements other than buildings 185,927,858 27,605,394 (410,107) 213,123,145 Machinery and equipment 16,203,102 3,192,391 (1,250,880) 18,144,613 Total accumulated depreciation 258,254,150 34,235,306 (1,268,546) 291,220,910 Total depreciable capital assets, net 753,678,439 (22,413,212) 95,247,558 826,512,785 Total business -type activities capital assets, net $ 915,507,794 $ (720,825) $ (610,187) $ 914,176,782 50 CO,,LLIE. CQUINITY FL®fs1111.00A, � .7 , VO SNOTHE.FINANCIALST -EMEN75, 4B TE AT SEPTEMsE,..�Ra% oa- NOTE S'm CAPITAL ASSET'S A summary of capital asset activity for the year ended September 30, 2009 is as follows: October 1, Deductions/ September 30, 2008, as restated Additions Reclassifications 2009 Governmental activities: Capital assets not depreciated: Land and other non - depreciable assets $ 314,971,954 $ 53,783,550 $ (1,895,437) $ 366,860,067 Construction in progress 422,485,649 98,294,309 (270,436,187) 250,343,771 Total capital assets not depreciated 733,829,124 152,077,859 (272,331,624) 617,203,838 Capital assets depreciated: Buildings Infrastructure Improvements other than buildings Machinery and equipment Total capital assets depreciated Less accumulated depreciation: Buildings Infrastructure Improvements other than buildings Machinery and equipment Total accumulated depreciation Total depreciable capital assets, net Total governmental activities capital assets, net 291,080,881 2,328,181 124,971,162 418,380,224 543,100,843 8,557,691 140,358,913 692,017,447 200,951,899 1,766,217 4,352,421 207,070,537 150,853,352 18,331,174 (7,606,692) 161,577,834 1,185,986,975 30,983,263 262,075,804 1,479,046,042 70,768,539 11,238,279 (7,766) 81,999,052 171,109,753 27,099,391 - 198,209,144 48,172,791 9,536,596 - 57,709,387 102,499,894 18,098,874 (6,918,061) 113,680,707 392,550,977 65,973,140 (6,925,827) 451,598,290 793,435,998 (34,989,877) . 269,001,631 1,027,447,752 $ 1,527,265,122 $ 117,087,982 $ (3,329,993) $ 1,644,651,590 Business -type Activities: Capital assets not depreciated: Land and other non - depreciable assets $ 24,058,192 $ 321,386 $ - $ 24,379,578 Construction in progress 137,771,163 21,371,001 (95,857,745) 63,284,419 Total capital assets not depreciated 161,829,355 21,692,387 (95,857,745) 87,663,997 Capital assets depreciated: Buildings Improvements other than buildings Machinery and equipment Total capital assets depreciated Less accumulated depreciation: Buildings Improvements other than buildings Machinery and equipment Total accumulated depreciation Total depreciable capital assets, net Total business -type activities capital assets, net 129,996,357 149,252 51223,072 135,368,681 853,103,237 10,071,757 90,123,824 953,298,818 28,832,995 1,601,085 (1,367,884) 29,066,196 1,011,932,589 .11,822,094 93,979,012 1,117,733,695 56,123,190 3,437,521 392,441 59,953,152 185,927,858 27,605,394 (410,107) 213,123,145 16,203,102 3,192,391 (1,250,880) 18,144,613 258,254;150 34,235,306 (1,268,546) 291,220,910 753,678,439 (22,413,212) 95,247,558 826,512,785 $ 915,507,794 $ (720,825) $ (610,187) $ 914,176,782 50 COLLIER COUNYY, fFLORI ®A NaTE5 TOTHE41(VANCIAL S`IATEWNTS SEPT18IVIRER30 2009 MOTE S - CAPITAL ASSETS - CONTINUED Schedule of depreciation for fiscal year 2009: General Government $ 7,884,248 Public Safety $ 26,846 14,644,130 Physical Environment. (366) 10,987,248 Transportation 753 22,758,928 Economic Environment - 599 29,286 Human Services 68 714,644 Culture and Recreation 5,574 8,373,410 Subtotal - 65,391,894 Internal Service Funds 21,175 581,246 Total Governmental Activities $ 65,973,140 Water and Sewer $ 31,090,140 Solid Waste $ 42,890 544,757 EMS 658,859 Airport Authority 872,676 Mass Transit 1,068,874 Total Business -type Activities $ 34,235,306 MOTE 6 LONG =TERM OBLIGATIONS SUMMARY OF CHANGES IN LONG -TERM OBLIGATIONS 14B 7N The following is a summary of changes in long -term obligations for the year ended September 30, 2009: Governmental Activities: Bonds and Loans Payable Arbitrage Rebate Capital Lease Obligations Self- Insurance Claims Net OPEB Obligation Compensated Absences Total Business -type Activities: Bonds and Loans Payable Notes Payable Arbitrage Rebate Capital Lease Obligations Landfill Closure Liability Compensated Absences Total 000's Omitted Premium or October 1, Discount /Loss September 30, Due within 2008 Additions Reductions Amortized, net 2009 one-year $ 541,604 $ 26,744 $ (47,931) $ (1,003) $ 519,414 $ 26,846 678 3 (366) - 315 52 753 - (154) - 599 154 10,286 68 (1,025) - 9,329 5,574 906 475 - - 1,381 - 21,175 ..7,073 (.6,462) - 21,786 10,264 $ 575,402 $ 34,363 $ (55,938) $ (1,003) $ 552,824 $ 42,890 $ 262,540 $ 10,072 $ (11,945) $ 169 $ 260,836 $ 11,734 73 - (1) - 72 72 1,506 - (512) - 994 - 618 - (126) - 492 132 1,815 99 - - 1,914 - 2,183 2,084 (1,825) - 2,442 1,953_ $ 268,735 $ 12,255 $ (14,409) $ 169 $ 266,750 $ 13,891 51 CO16UERM-NIJNT:Y, R®MA. SEPTEMER 30; X009 NOTE 6 - LONG- TERl9/ DEBT- CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2009 were composed of the following: Governmental Activities Limited General Obligation Bonds $32,815,000 2005A Limited General Obligation Bonds, Conservation Collier Program, due in annual installments of $3,285,000 to $4,805,000 through January 1, 2013; interest at 3.00% to 5.00 %. $13,244,204 2008 Limited General Obligation Bonds, Conservation Collier Program, due in annual installments of $3,067,279 to $3,529,181 through January 1, 2013; interest at 4.14 %. 14B 7 " $17,885,000 13,244;204 $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit, due in installments of $300,000 to $540,000 through January 1, 2022; interest at 3.75% to 4.25 %. 5,590,000 Total Governmental Activities Limited General Obligation Bonds Governmental Activities Revenue Bonds $47,430,000 2002 Capital Improvement Revenue Bonds due in annual installments of $1,780,000 to $2,830,000 through October 1, 2016; interest at 1.60% to 5.00%. $49,360,000 2003 Capital Improvement and Refunding Revenue Bonds due in annual installments of $1,130,000 to $2,570,000 through October 1, 2033; interest at 2.00% to 4.75 %. $167,200,000 2005 Capital Improvement and Refunding Revenue Bonds due in annual installments of $2,035,000 to $7,240,000 through October 1, 2035; interest at 2.25% to 5.00 %. $102,125,000 2003 Gas Tax Revenue Bonds, due in annual installments of $1,495,000 to $6,865,000 through June 1, 2023; interest at 2.00% to 5.25 %. $96,255,000 2005 Gas Tax Revenue Bonds, due in annual installments of $445,000 to $13,985,000 through June 1, 2025; interest at 3.00% to 5.00 %. 36,719,204; 30,175,000 38,285,000 149,275,000 65,780,000 94,085,000 $1,870,000 1997 Naples Park Area Stormwater Improvement Assessment Bonds due in annual installments of $75,000 to $185,000 through September 1, 2012; interest at 6.45% fixed rate. 340,000 Total Governmental Activities Revenue Bonds 52 377,940,000 COLLIER 00UNTY, FLORIDA I 148 J NOTES T0•TME FINANCIAL STATEIl91ENTS SEP I'EMER .36; 2009 NOTE 6 - LONG-TERIi/l DEBT - C®MTIVilUED DESCRIPTIONS OF BONDS LOANS AND NOTES PAYABLE - CONTINUED Governmental'Activities Loans and Notes Payable $78,446,000 Commercial Paper issued by the Florida Local Government Finance Commission Pooled Commercial Paper Program due on December 4, 2012; monthly variable interest rate for the current fiscal year of 0.95% to 4.45 %, based on the underlying commercial paper that is purchased and collateralized by all legally available non ad valorem revenue. $66,047,000 $12,000,000 Florida Department of Transportation State Infrastructure Bank Loan, due in annual installments of $1,839,148 to $4,414,096 through October 1, 2012; interest at 2.0 %. 10,042,623 $13,500,000 Bayshore Gateway Community Redevelopment Agency Taxable Note, due September 1, 2014; monthly variable interest rate for the current fiscal year end of 4.01 %. Variable rate of 30 -Day LIBOR plus 3.75 %. 13,500,000 Total Governmental Activities Loans and Notes Payable Total Governmental Activities Obligations Unamortized Bond Discount Unamortized Bond Premium Deferred Loss on Bond Refunding Governmental Activities Obligations, Net Less Current Portion of Governmental Activities Obligations Long -Term Portion of Governmental Activities Obligations,'Net Business -type Activities Revenue Bonds $33,630,000 20038 County Water and Sewer Refunding Revenue Bonds due in annual installments of $1,410,000 to $4,125,000 through July 1, 2021; interest at 4.25% to 5.50 %. $6,605,000 1999A Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $35,000 to $1,035,000 through July 1, 2010; interest at 3.00% to 4.25 %. 53 89,589,623 $504,248,827 $(534,397) 15,981,953 (282,659) 519,413,724 (26,846,427) $492,567,297 $31,580,000 785,000 CQL6ER---. l0,QpYllylrQPRI®Y N EST0 HE- VAVp'WUMATEV'cN TS', 14B 7 SEPTEIVIRE;R;30;2009 NOTE 6 - LONIG- TERKDEBT;- CONTMUEl3' DESCRIPTIONS OF BONDS LOANS AND NOTES PAYABLE —CONTINUED $22,855,000 1999B Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $950,000 to $1,875,000 through July 1, 2016; interest at 4.00% to 5.125 %. $11,450,000 $110,165,000 2006 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,310,000 to $8,695,000, commencing July 1, 2017 through July 1, 2036; interest at 4.00% to 5.00 %. 110,165,000 Total Business -type Activities Revenue Bonds 153,980,000 Business -type Activities Loans and Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer system development fee credits. Non - interest bearing agreement. 71,675 $14,547,667 County Water and Sewer District State Revolving Fund Loan, interest payable at 4.25% payable in 20 semiannual payments commencing October 1, 1992. 2,930,661 $13,292,898 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.65% payable in 40 semiannual payments commencing January 15, 1999. 71040,095 $22,238,677 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing November 15, 2001. 14,600,956 $5,160,675 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing October 15, 2004. 4;147,104 $6,560,956 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing January 15, 2005. 5,268,810 $29,224,004 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.95% payable in 40 semiannual payments commencing June 15, 2006. 25,257,434 $10,525,509 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.90% payable in 40 semiannual payments commencing September 15, 2006. 8,713,752 54 COLUEWCOUNTYy fFLORMA 14B 7 HOTES TO TAE; FINAOCIA STA'iTEMENTS '�ERgEV14iI3EI�30,�� ®� NOTE 6 e.LOMG- ;TERiyi DEBT � CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE — CONTINUED $5,445,223 County Water and Sewer District State Revolving Fund Loan, interest payable at 2,92% payable in 40 semiannual payments commencing December 15, 2005. $4,614,837 $5,188,500 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.74% payable in 4.0 semiannual payments commencing November 15, 2007. 3,719,346 $7,123,496 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.75% and 2.64% payable in 40 semiannual payments commencing April 15, 2008. 4,816,360 $11,478,810 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.64% and 2.79% payable in 40 semiannual payments commencing August 15, 2008. 11,009,256 $11,637,070 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.64% and 2.79% payable in 40 semiannual payments commencing October 15, 2009. 11,815,681 $3,294,890 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.79% payable in 40 semiannual payments commencing December 15, 2009. 2,929,458 Total Business -type Activities Loans and Notes Payable 106,935,425 Total Business -type Activities Obligations 260,915,425 Unamortized Bond Premium 4,738,118 Deferred Loss on Bond Refunding (4,745,048) Business -type Activities Obligations, Net 260,908,495 Less Current Portion of Business -type Activities Obligations Payable from Unrestricted Assets (11,734,146) Less Current Portion of Business -type Activities Obligations Payable from Restricted Assets (71,675) Long -Term Portion of Business- type'Activities Obligations, Net $249,102,674 55 �A ly ®LL�S,��p��^-.lSi®p�l�lplp/�Y Y, y��,L4O1��ION �y NOTE -5.TO HIE. F'YVL`9ltl CIAL5TA�1 EMENTS: 148 SEPTEMBER-30Y!,2009. NOTE S.- LONG-TERM-DEBT —CONTINUED SUMMARY OF DEBT,SERVICE REQUIREMENTS TO MATURITY The total annual debt service requirements to maturity of long -term debt, excluding compensated absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows: Governmental Activities Fiscal Limited General Loans and Loans and Year Year Obligation Bonds Revenue Bonds Notes Payable Totals Interest Principal Interest Principal Interest Principal Interest $ 6,704,835 $ 2010 $ 7,557,279 $ 1,493,796 $ 16,550,000 $ 17,625,236 $ 2,739,148 $ 31564,871 $ 49,530,330 2011 7,962,597 1,137,371 17,120,000 16,992,775 2,775,930 3,467,069 49,455,742 2012 8,330,147 763,174 17,715,000 16,202,980 2,813,449 3,369,434 49,194,184 2013 8,714,181 371,544 17,590,000 15,390,381 71,361,096 1,287,004 114,714,206 2014 390,000 163,475 15,700,000 14,619,163 9,900,000 643,176 41,415,814 2015 -19 3,765,000 664,425 87,365,000 61,145,833 - - 152,940,258 2020 -24 - - 105,015,000 37,517,416 - - 142,532,416 2025 -29 - - 50,230,000 16,079,375 $ 395,959,946 - 66,309,375 2030 -34 - 37,875,000 7,495,784 - 45,370,784 2035 -39 - - 12,780,000 597,780 - - 13,377,780 Totals $ 36,719,204 $ 4,593,785 $ 377,940,000 $ 203,666,723 $ 89,589,623 $ 12,331,554 $ 724,840,889 Business -type Activities Fiscal Loans and Year Revenue Bonds Notes Payable Totals Principal Interest Principal Interest 2010 $ 5,125,000 $ 7,138,343 $ 6,704,835 $ 3,060,552 $ 22,028,730 2011 4,885,000 6,895,082 6,608,605 2,861,407 21,250,094 2012 5,125,000 6,658,256 6,813,167 2,656,847 21,253,270 2013 5,380,000 6,409,782 5,963,626 2,445,790 20,199,198 2014 5,615,000 6,173,796 6,136,565 2,272,850 20,198,211 2015 -19 21,580,000 27,024,901 32,565,808 8,594,785 89,765,494 2020 -24 23,200,000 22,216,113 29,200,495 4,024,251 78,640,859 2025 -29 29,370,000 16,043,950 12,942,324 688,421 59,044,695 2030 -34 36,680,000 8,735,077 - - 45,415,077 2035 -39 17,020,000 1,144,318 - - 18,164,318 Totals $ 153,980,000 $ 108,439,618 $ 106,935,425 $ 26,604,903 $ 395,959,946 LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. r. 1. C®LLIERCOUIVTY o FLORIDA 148 70 V0 OTE5 017HE'FII AKCIAL STATEMENTS SEPTEIliiOEVR -30,.1009 N OTE 6 LANG= TERM' ®EBT — CONTINUED RESTRICTIVE COVENANTS According to the official statements and County resolutions authorizing the issuance of the Series 2002, 2003 and 2005 Capital Improvement Revenue and Refunding Revenue Bonds, as well as the Series 2003 and 2005 Gas Tax Revenue Bonds, the issues are payable from and secured by liens on the local government half -cent sales tax and gas tax revenues, respectively. During fiscal year 2008 Collier County experienced insurer rating downgrades on its Series 2002, 2003 and 2005 Capital Improvement Revenue Refunding Bonds. The covenants related to these issues require that in the event of an insurer downgrade below "A ", by either Moody's or Standard and Poor's, the County must fund a cash reserve to replace the surety within twelve months. By September 30, 2009 Collier County was required to fund the reserve in the amount of $19,570,777, which represents the maximum remaining annual debt service amount on the outstanding Capital Improvement Bonds and -which is included in non - current restricted cash, cash equivalents and investments in the Statement of'Net Assets. The County used internal borrowings to achieve the required reserve funding. All required principal and interest payments have been made in a timely manner on these bonds and the County's pledged coverage on these bonds is 1.38. The covenants of the loan agreement authorizing the Florida Local Government Finance Commission loans include appropriation in the annual budget amounts of non ad valorem revenues or other legally available funds sufficient to satisfy the loan repayments. The 1997' Naples Park Area Storm"water Improvement Assessment Bonds are limited special obligations of the County, payable solely from the proceeds of stormwater improvement assessments. Tax increment revenues and a covenant to budget and appropriate from all legally available CRA non -ad valorem revenues is pledged for the repayment of the Bayshore Gateway Community Redevelopment Agency's taxable note. The average of actual receipts and cash carried forward from the previous year must. cover annual debt service requirements by 125%. In the opinion of management the agency was in compliance with this covenant for the year ended September 30, 2009. Water and sewer revenue bonds are payable solely from and secured by a first lien upon and pledge of the net revenues and certain other fees and charges derived from operation of the County's water and sewer system. The pledge of net revenues 'derived by the County from the operation of the system does not constitute a lien upon the system or any other property of the County. The covenants of the resolutions authorizing the County Water and Sewer District Bonds, Series 2006, 20038, 1999A and 1999B include an obligation for the County to fix, establish and maintain such rates and collect such fees, rentals or other charges for the services and facilities of the water and sewer system, and to revise the same whenever necessary, so as to provide in each year net revenues, as defined in the resolutions authorizing the revenue bonds, which together with system development fees and special assessment proceeds received shall be adequate to pay at least 125% of the annual debt service requirements for the Water and Sewer Bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service for the bonds. In addition, bond covenants require a renewal and replacement amount equal to $300,000 to be set aside in the County Water and Sewer District Funds. In the opinion of management, the water and sewer funds were in compliance with these covenants for the year ended September 30, 2009. 61FA COLUER-,CQWMTYi FLQR11lQA 14B N TES:T .O,THE:FINANCIALSTATEMENTS SEPTEMDER'30,, 2009 NOTE 6 -. LONG- TERI@! MEBT® COMTINUED The Collier County Water and Sewer District has several State Revolving Fund loans outstanding with the Florida Department of Environmental Protection. These loans are collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and;Sewer: System and system development fees. The lien shall be subordinate in all respects to liens placed upon pledged revenues established by bonded indebtedness. The County_ Water and.Sewer• District shall maintain rates and charges for services which together with system development fees sufficient.to pay. 115% of the annual debt service requirements on the loans, as well. as satisfy the coverage requirements of all senior debt obligations. In the opinion of management, the State Revolving funds were in compliance with these covenants for-the year ended September 30, 2009. INTEREST CAPITALIZED Interest costs on long -term debt, including capitalized leases, incurred and capitalized during the year. ended September 30, 2009 were as follows: Total Interest Inte rest Cost Net Interest Cost Incurred Capitalized Expense Business -type Activities $10,211,073 $1,869,033 $8,342,040 LEASE OBLIGATIONS Capitalized leases payable at September 30, 2009 amounted to $1,090,610. These obligations, which are collateralized by equipment and vehicles, have annual installments ranging from $35,230 to $342,001 including interest ranging from 4.26% to 7.21% and mature through 2015. Future minimum capital lease obligations as of September 30, 2009 were as follows: 58 7 Governmental Business -type Activities Activities Total 2010 $ 190,660 $ 151,341 $ 342,001 2011 190,660 151,341 342,001 2012 104,821 131,773 236,594 2013 77,920 98,830 176,750 2014 77,920 - 777920 2015 35,230 - 35,230 Total minimum lease payments 677,211 533,285 1,210,496 Less amount representing interest (78,341) (41,545) (119,886) Present value of minimum lease payments $ 598,870 $ 491,740 $ 1,090,610 58 7 COLLIER COUNVYo FLORIDA V�9MES'16 HE EINANCIALSTATEMENTS SEPTEMBER 30; X0®9 NOTE1- CONDUIT DEBT 0130 AVIONS COMPONENT UNIT CONDUIT DEBT 14B 7 The Industrial Development Authority, -Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi - family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuer, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2009 the outstanding principal amount payable on all component unit conduit debt was $309,274,230 and is made up of the following: Industrial development revenue bonds $ 77,604,230 Housing finance revenue bonds 72,615,000 Health facilities revenue bonds 85,330,000 Educational facilities revenue bonds 73,725,000 Total $ 309,274,230 On October 15, 2009, an event of 'default occurred on $2,615,000 of outstanding industrial development revenue bonds. Pursuant to the terms of the trust indenture the maturity of the bonds was accelerated and a line of credit was drawn upon as of October 20, 2009 to pay all remaining principal and interest on the bonds. All bondholders were paid in full and neither the County nor the issuer is obligated in any manner. 'NOTE 8 -; DEWASEQ DEBT The County has defeased certain outstanding bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all future debt service payments on the defeased debt. Accordingly, the trust accounts and the defeased bonds are not included in the County's financial statements. At September 30, 2009 the following issues were considered defeased: 59 Original Debt Defeased Bonds Governmental Activities Defeased Outstanding._ 1986 Capital Improvement Program Revenue Bonds, $ 12,245,000 $ 4,085,000 Sub - Series 5 Mode A 2003 Capital Improvement and Refunding Revenue Bonds 4,360,000 '4,_165,000 Total Governmental Activities Defeased Debt $ 16,605,000 $ 8,250,000 Original Debt Defeased Bonds Business -type Activities _ . _. . Defeased.. Outstanding . 1983 County-Water and Sewer District Refunding Bonds $ 22,000,000 $ 5,285,000 59 NOTES -TO, THE. FINANCIALSTMT- EMEMS 14B 7 SEPTEMBER 301 ZQ09 (NOTE 9— PENSION. PLAN. OBLIGATIONS, RETIREMENT PLAN. Substantially all full time and part time employees of the County are eligible to participate in the State of Florida Retirement System (the System), a cost sharing, multiple employer program administered by.the State of Florida, Division of Retirement. The System provides two retirement plans from which eligible employees can choose: the Pension Plan (defined benefit) and the Investment Plan (defined contribution). The County follows the provisions of GASB 27, Accounting for Pensions by State and Local Governmental Employers, as described in the following disclosure. PLAN DESCRIPTION Employeeswho are regular risk members and retire at or after age 62 with 6 years of credited service, or with 30 years of service regardless of age, are entitled to a retirement benefit, payable monthly for life, equal to 1.6 percent of their average final compensation for each year of credited service. Final average compensation is the employee's average of the five highest years of salary earned during credited service. Vested employees may retire before age 62 and receive benefits that are reduced 5 percent for each year prior to normal retirement age or date. The System also provides death and disability benefits as well as annual cost -of- living adjustments to plan participants and beneficiaries. The Florida Legislature established the System under Chapter 121, Florida Statutes and has sole authority to amend benefit provisions. Special Risk Class members qualify for normal retirement with 6 years of special risk service and age 55 or with 25 years of special risk service at any age. The monthly benefit payable is equal to 2 -3 percent of their average final compensation for each year depending on the percent in effect during the service period. Vested employees may. retire before age 55 and receive benefits that are reduced 5 percent for each year prior to normal retirement age or date. The Deferred Retirement Option Program (DROP) is a program that provides an alternative method for payment of retirement benefits for a specified and limited period for members of the System, effective July 1, 1998. Under this program, the employee may retire and have their benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while continuing to work for a System employer. The act of participating in the program does not change the individual employee's employment conditions. When the DROP period ends, a maximum of 60 months, employment must be terminated.; At the time of termination of employment, the employee will receive payment of the accumulated DROP benefits, and begin receiving their monthly retirement benefit (in the same amount determined at retirement, plus annual cost -of- living increases). The System publishes an annual report that provides ten -year historical trend information regarding progress made in accumulating sufficient assets to pay benefits when due. The report maybe obtained by writing the Division of Retirement, Research, Education and Policy Section, 1317 Winewood Boulevard, Tallahassee, Florida 32315 -9000, or by calling (866) 738 -2366, or accessing their internet site at www.dms.mvflorida.com. .E 14B 74 .COLLIEIII;"000NTY, 091 A NOTES TO FINAKCIAL STATEMENTS SEPYEMM- 30;..2009 NOTE 9 — PENSIOU PLAN' OBLIGATIONS -CONTINUED FUNDING POLICY The System is non - contributory for employees and the County is required to contribute at an actuarially determined rate. The current rate is 20.92% for special risk employees, 16.53% for county elected officials, 9.85% for regular employees, 13:12 %for senior' management and 10.91% for DROP employees of annual covered- payroll. The contributions of the County are established by the State legislature and therefore subject to amendment. The County's contributions to the System for the years ending September 30, 2009, 2008 and 2007 are represented in the table below. The County's contributions were equal to the required contributions for each year. General Fund Road Construction Community Redevelopment County-Water and Sewer Nonmajor Governmental Funds Nonmajor Enterprise Funds Internal Service Funds Totals NOTE 10 —" ANSPERS FY -2009 FY -2008 FY -2007 $ 18,878',678 $ 18,842,653 $ 18,678,498 196,737 169,894 160,080 48,712 24,511 22,013 1,574,521 1,549,255 1,673,956 4,451,766 4,825,491 4,846,006 2,684,350 21593,107 2,719,220 _. .. 217,901 General Fund 20 $ 28,052,665 $ 28,209,276 $ 28,307,047 Transfers for the year ended September '30, 2009 -were as follows: Transfers; from Fund Transfers to• Rund Amount Government, Activities: General Fund Road Construction $ 23,441,888 Nonmajor Governmental Funds 57,854,671 County Water and Sewer 5,494 Nonmajor Business Type 15,097,757 Road Construction General Fund 253,200 Nonmajor Governmental Funds 14,374,200 Nonmajor Business Type 1,773,900 Community Redevelopment Nonmajor Governmental Funds 1;699,179 Nonmajor Governmental Funds General Fund 4,055,263 Nonmajor Governmental Funds 37,277,409 County Water and Sewer 54,900 BusinessAype Activities: County Water and Sewer General Fund 3,616,155 Nonmajor Governmental Funds 193,100 Nonmajor Business -type General Fund 492,081 Nonmajor Governmental Funds 18,001 County Water and Sewer 117,200 Totals $ 160,324,398 61 CO ER.,COUNTY, FL.O.R11DA. 14B NQTES-.TO :-THE FINANCIAL.5TATIEMENTS SOTE_MRIER 301 0.09 NOTE M— TRANSFERS — CONTINUED Transfers between funds move unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations and to move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as payments become due. Transfers of capital assets between governmental activities and business -type activities are also recorded as transfers in the entity wide statements. Capital assets with a net book value of $55,049 were transferred from governmental activities to business -type activities. Capital assets with a net book value of $71,672 were transferred from business -type activities to the governmental activities. Capital assets with a net book value of $17,748 were transferred from the internal service funds to the governmental activities. Capital assets with a net'book value of $14,239 were transferred from the governmental activities to the internal service funds. NOTE 11— NET ASSETS /FUND BALANCES Net assets represent the difference between total assets and liabilities and are categorized as follows: Invested in capital assets, net of related debt: Total capital assets, net of debt issued in the acquisition of these assets and net of depreciation is reported separately in the net assets section. Restricted for growth related capital expansion: Impact fee and system development charges restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for Conservation Collier: One quarter mill of ad valorem revenues restricted for the purchase of environmentally sensitive land. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long -term debt. Restricted for renewal and replacement: Balance is restricted -in conjunction with the issuance of County Water and Sewer District Bonds. The use of monies in the renewal and replacement fund is restricted to funding the cost of additions, replacement or major repair of water and wastewater capital assets. Unrestricted: Balances are not restricted for specific purposes. The following categories are used to report governmental fund balances in the fund financial statements. Fund Balances Reserved /Unreserved Reserved for prepaid costs: Balances represent insurance, travel and other expenses paid in advance and which are not considered available and spendable resources. Reserved for inventory: Balances represent items not considered available and spendable resources. 62 7 COLLIER- C��91iITY, EEORI ®A NCVYES TC)•THE� EINANfCIAE ST�Ai- [EiMEN!rS5 SEFTMEl80, 2009 .NOTE 21 e NETASSETS /FUND 9ALANCES — CONTINUED 14B 74 Reserved for advances to other funds: Balances represent long -term advances made to other funds which do not constitute expendable and available financial resources. Reserved for encumbrances: Balances are segregated for expenditure upon vendor performance. Reserved for debt service: Balances represent monies legally restricted to the payment of principal and interest on long -term debt. Unreserved, reported in general fund: Balances in the general fund not reserved for specific purposes. Unreserved, reported in special revenue funds: Balances in the special revenue funds not reserved for specific purposes. Unreserved, reported in debt service funds: Balances in the debt service funds not reserved for specific purposes. Unreserved, reported in capital: project funds: Balances in the 'capital project funds not reserved for specific purposes. NOTE112 - RISK. MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self - insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self - insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self- insurance fund and for all other covered risks of loss. Claim Type Property and casualty claims Auto liability claims Employee health claims Workers' compensation claims County's Coverage $50,000 - $500,000 (5% Named Storm) $200,000 $175,000 $500,000 Excess Carrier's Coverage $50,000 - $125,000,000 $200,000 - $1,000,000 $175,000 - $2,000,000 $500,000 - $25,000,000 Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2009 the operating departments were charged $31,078,865 for workers' compensation, health and property and casualty self- insurance programs. 63 C OLUE.R- C®IJ_NTYp FLORIDA, 14B 7 NOTES ,TOrTHE FIMANQAU$ ATFM SEPTJE 9ERX30;. 009.. NOTE 12 e (RISK MANAGEMENT,- CONTINUED The claims loss reserve for workers' compensation, health and property. and:casualty. of $7,208,000 reported at September 30, 2009 was calculated by third .party actuaries based upon GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be reported:when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were discounted at 3.5 %. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $3,453,384 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self- Insurance Fund for its professional liability. insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self - Insurance Fund provides liability. insurance coverage subject to the following limitations: $3,100,000 for any claim involving a single individual, $3,200,000 for any incident which involves multiple claims and aggregate, $3,500,000 ultimate net loss per Sheriff during any policy period. The Sheriff also participates in the Statewide Florida Sheriff's Self- Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self- insurance fund providing coverage for the first $350,000 of every claim. Re- insurance is provided through a third party insurer for all claims exceeding $350,000 up to $10,000,000 and an aggregate of $500,000 depending on type of bodily injury. Settled claims have not exceeded the insurance provided by third party.carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by.Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self - insured risks are reported in the basic financial statements of the Statewide Florida Sheriff's Self- Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by.the program. The Sheriff has also established a self- funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any. one incident exceeding $150,000 up to $1;000,000. Payrnents to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims. The claims loss reserve for health of $2,121,000 reported at September 30, 2009 was calculated by third: party actuaries based upon GASB Statement 30, Risk Financing Omnibus which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is recorded as a current liability. 64 CCOdL115R tO1UNTY PLORI. A 4 B 0 7 NIOTES TOI E, FINANCIiAL STATEMENTS SEPTEMBER -30; 2009 : NOTE 22? - R9 K IVIAIVAGEMENT—t CONTINUED CHANGES IN SELF - INSURANCE CLAIMS PAYABLE Changes in the self - insurance claims payable for fiscal years 2008 and 2009 were as follows for the County and Sheriff self- insurance programs: Balance at September 30, 2007 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2008 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2009 Property and Group Workers' Casualty Health Compensation Total $ 2,937,000 $ 4,662,000 $ 3,972,000 $ 11,571,000 561,528 40,430,555 (608,384) 40,383,699 (1,268,528) (39,886,555) (513,616) (41,668,699) 2,230,000 5,206,000 2,850,000 10,286,000 1,226,571 (1,425,571) $ 2,031,000 NOTE 13 OTHER POSTEMPLOYM NT BENEFITS 38,918, 275 (38,850,275) $ 5,274,000 378,061 (1,204,061) $ 2,024,000 40,522,907 (41,479,907) $ 9,329,000 Plan Description - The Board and the Tax Collector administer a single - employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the County,; be at least 55-years of age or have completed 30 years of service under the Florida Retirement System (FRS)-and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active, plan. The Tax Collector offers an OPEB plan that subsidizes 100% the cost of health care for employees with 10 -years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement. Additionally, in accordance with Florida Statute 112.0801, County employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group* rate as for active employees. The plan does not issue a publicly available financial report. In 2009 Board employees meeting certain eligibility requirements were offered access to a Voluntary Separation Incentive Program (VSIP). The requirements for eligibility were that the employee had to be eligible to retire without penalty under FRS. Eligible employees had three options under VSIP. Option 1: Medical and dental coverage for a period of three years, with employee enrollment in the plans as of the date the election is made. If the employee has waived coverage, the employee will be enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level. The Board will cover costs including both the employer and employee portions of the medical and dental premiums during the coverage period. 65 CO LUEIR- ,COUNITY; WRIDA, 14B 7 NOTES:70- PIKE = FINANCIAL STATEMENTS. SEPTEMBER-3%Z009., NOTE 13— OTHEIf; POSTEVlI PLOYMENTiBENEFITS - CONTINUED; Option 2: Employee receives a cash incentive in lieu of three years of medical and dental benefits. The employee will receive a cash payment equivalent to 50% of the average value of three years' medical. and dental plan premiums, less applicable payroll taxes. Option 3: Employee receives medical and dental benefits until they reach age 65 with a cash incentive for remaining months under the plan. The employee is enrolled in the plans as of the date the election is made. If the employee has waived coverage, the employee will be enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level. The Board will cover costs including both the employer and employee portions of the medical and dental premiums during the coverage period. As of the first of the month following the date when an employee reaches age 65, the employee will be entitled to receive a one -time cash payment equivalent to 50% of the average monthly value of the medical and dental plan premiums, less applicable payroll taxes, for the remaining months in which the employee is eligible to participate under the plan. At September 30, 2009, the date of the latest actuarial valuation, County plan participation consisted of: OPEB plan participants 2,261 Retirees receiving benefits 100 Funding Policy - The County has the authority to establish and amend funding policy. For the yeariended September 30, 2009, the County contributed.$658,599 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation - The annual cost of the County's OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the County's annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution $ 661,962 Interest on net OPEB obligation 6,839 Adjustment to annual required contribution (11,293) Annual OPEB cost 657,508 Contributions made (658,599) Decrease in net OPEB obligation (1,091) Net OPEB obligation - beginning of year 356,111 Net OPEB obligation - end of year $ 355,020 66 I COLLIER COUNTY, PLO64I ®A 148 70 NOTES701I1-II5 I=96lIPNCIAL STATEMEWS SE15TEMBE6R-30,'2009 NOTE13- OTHE6R POSTEMPLOYMENT BENEFITS= CONTIiVUE® Funded Status and Funding Progress - The contributions made for the 2009 fiscal year were 100% of the annual OPEB cost. Information for the two preceding fiscal years is not available as GASB Statement No. 45 was implemented. last fiscal year. As of the September 30, 2008 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $3,769,254, and the actuarial value of plan assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $3,769,254. As of the September 30, 2009 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $5,814,470, and the actuarial value of plan assets was $0, resulting in a UAAL of $5,814;470. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $164.9 million, and the ratio of the UAAL to the covered payroll was 3.5 %. Actuarial- Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long -term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions are: Actuarial cost method Amortization method Amortization period Investment rate of return Discount rate Healthcare cost trend rate Unit Credit Actuarial Cost Level Dollar Amount 30 years 3% 3% 8% for the 2010 fiscal year grading to an ultimate rate of5 %for the 2016 fiscal year Plan Description - The Sheriff administers a single- employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost of health care for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for single coverage and 21% for family coverage for qualifying individuals. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. The plan does not issue a publicly available financial report. 67 NOTES TO THE.FINANCIAL A-TE(IiilENTS•-,. 'T SEPTEM13.IE_R-30 0.09x, NOTE 13; m OTHER POSTEMPLOYMENT ,BENEFITS - CONTINUE® Beginning in 2009, employees meeting certain eligibility requirements were offered an Early Voluntary Separation Program. Eligibility, requirements were that the employee had to be eligible to retire without penalty under FRS or. have 20 years of service with the Sheriff's Office, have a. specified base salary and meet the requirements for retirement in good standing. In addition, employees had to meet the eligibility requirements prior to April 17, 2009 and retire no later than 5/11/2009. Employees who met the eligibility requirements between April 17, 2009 and September 30, 2009 could choose to retire between two weeks after the final date and September 28, 2009. Eligible employees had the following options: Option 1: Medical coverage for a period of 3 years at no more than the current coverage level: If the employee had waived coverage, he /she would be eligible for single coverage. Option 2: A combination of insurance coverage and a cash payment. Employee could then supplement with the conversion of 100% of accumulated sick leave to additional coverage beyond the 3 year period. At September 30, 2009, the date of the latest actuarial valuation, Sheriff plan participation consisted of: OPEB plan participants 1,319 Retirees receiving benefits 92 Funding Policy.- The Sheriff has the authority to establish and amend funding policy. For the year ended September 30, 2009, the Sheriff contributed $876,138 to the OPEB Plan. No trust or-agency.fund has been established for the plan. Annual OPEB.Cost and Net OPEB Obligation - The annual cost of the Sheriff's OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any. unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the Sheriff's annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution $ 1,363,461 Interest on net OPEB obligation 16,496 Adjustment to annual required contribution (27,236) Annual OPEB cost 1,352,721 Contributions made (876,138) Increase in net OPEB obligation 476,583 Net OPEB obligation - beginning of year 549,868 Net OPEB obligation - end of year $ 1,026,451 68 COLLIE KCOU NY-Y,. FLORIDA NOTES"Ya,T -RE FINANC AL-S-''A` 'EMtigTs 14B 7 SEPTEM9IER 30,-009 MOTE 13 — OTHER POSTEMPL®yMENT iBENEFITS = CONTINUED Funded Status and Funding Progress - The contributions made for the 2009,fiscal year were 65% of the annual, OPEB cost. Information for the two preceding fiscal years is not available as GASB Statement No. 45 was implemented this fiscal year. As of the September 30, 2008 actuarial valuation date, the OPEB Plan -was 0.0% funded, the actuarial accrued liability for benefits was $9,354,088, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $9,354,088. As of the September 30, 2009 actuarial valuation date, the OPEB Plan was 0.0 %,funded, the actuarial accrued liability for benefits 'was $14,171,709, and the actuarial value of assets was $0, resulting in a UAAL of $14,171,709. The covered payroll (annual payroll of active employees covered by the OPEB Plan) -was $123.3 million, and the ratio of the UAAL to the covered payroll was 11.5 %. Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the' potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long -term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions are: Actuarial cost method Unit Credit Actuarial Cost Amortization method Level Dollar Amount Amortization period 30 years Investment rate of return 3% Discount rate 3% Healthcare cost trend rate 10% for the 2010 fiscal year grading to an ultimate rate of 5% for the 2020 fiscal year .• CQlS IER.CDONI'I1, IrWRI10A. NOTES.TO.)THE: RIANCIAL STATEMENTS- 140 7 SEPTE MBE.R 30, X009: (NOTE 14 -- LANDFILL LIABILITY On May 1, 1995 the County entered into'a landfill operating agreement with a third party, for the privatization of the County's landfill operations. Under the contract, the third party is responsible for the daily operations, capital improvements, closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County's estimated liability. in connection with the landfills is included in the proprietary funds statement of net assets. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost. The County has funded an escrow account with Fifth Third Bank in the amount of $10,000 to comply with Rule 62- 701.630, Florida Administrative Code for the inactive Eustis Avenue Landfill site. These funds bear interest and are restricted for the exclusive use of the Eustis Avenue Landfill site's long -term care. There were no deposits, other than interest, or withdrawals from this account in fiscal year 2009. NOTE IS.- SIGINIFICANTCOINTINGENCIES LITIGATION. The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the County. Litigation is pending between the Clerk of the Circuit Court and the Board of County Commissioners regarding the role of the Clerk of the Circuit Court as County Auditor. See page 13 of the Management's Discussion and Analysis for more information. STATE AND FEDERAL GRANTS Grant monies received and disbursed by.the County are for specific purposes and are subject to review. by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. The total arbitrage rebate liability as of September 30, 2009 was $1,309,074, of which $315,185 related to governmental activities and $993,889 to business -type activities. 70 'COLLIMCOIJUTY - FICORODA 148 74 NOTES TDIHE HI AIMCI'Ab- 51TATEMENTS SEPTEMBER,30,-2009 NOTE -16 - SIGNIFICANT COMMITMENTS CONSTRUCTION COMMITMENTS Collier County has active construction projects as of September 30, 2009. The projects include road construction, governmental facilities and utilities improvements. 'At year end the County's commitments with contractors includes'the following: Govern menta0 Activities° Road Impact Districts Road Construction Community Redevelopment Other Governmental Bus! ness -type Activities: County Water and Sewer Other Enterprise Total MOTE 17 = FUNQ' DEFICITS Future Category Commitments Roads $ 11,761,085 Roads 15,303,388 Economic Development 483,832 Parks 3,706,270 Natural Resource Planning 555,226 Roads 2,055,523 Buildings 5,038,320 Beach restoration 629,803 Stormwater drainage 2,357,132 Utilities 11,339,607 Landfill expansion and closure 1,211,372 Airports 362,215 $ 54,803,773 The following funds had fund balance deficits at September 30, 2009: Fund Amount County -Wide Library Impact Fee $ (4,148,592) Emergency Medical Services Impact Fee (101,572) Government Facilities Impact Fee (5,355,509) Law Enforcement Impact Fee (7,284,158) Total $ (16,889,831) The fund balance deficits are primarily the result of advances from other funds made prior to September 30, 2009. These advances were recorded to ensure repayment of non - impact fee monies loaned to the impact fee fund for the construction of growth necessitated facilities. County management anticipates that the deficits will be covered by future years' impact fee revenues. 71 CC. ®LLBEfR COUNTY, FL®IRS ®A. MOTES•T0.THE. RNANCIAL STATEMENTS . 140 7 SEPTEMBER 30; 2009 NOTE IS — RESTATEMENT:OF BEG-INNING NEYASSETS- AND BEGINNING _FUND BALANCES Governmental activities beginning net assets and governmental funds' beginning fund balances have been restated as follows: Prior period adjustments: Governmental activities capital assets were understated as four parcels of land with a total value of $10,552,118 were not previously recorded. Governmental activities capital assets were overstated and inventory understated by $6,923,639, as land purchased by the Bayshore Gateway Community Redevelopment Agency for resale was capitalized in previous years. In the fund financial statements, Community Redevelopment inventory and fund balance were understated by a corresponding amount. Net assets /fund balance, September 30, 2008, as previously reported Unrecorded nondepreciable capital assets Land held for resale Total adjustment Net assets /fund balance, September 30, 2008, as restated NOTE 19 — SPECIAL ITEM., Governmental Community Activities Redevelopment $ 1,516,043,884 $ 5,494,780 10,552,118 - 6,923,639 10,552,118 6,923,639 $ 1,526,596,002 $ 12,418,419 On September 25, 2008 the Court issued oral ruling in Case 07- 1056 -CA dated October 1, 2008 requiring the Clerk to post a surety bond in an amount of $3,239,000 in place of the cash bond previously deposited into the Court registry. On October 6, 2008 the Second District Court of Appeal reversed the Court orders and remanded back to the Twentieth Judicial Circuit for a full evidentiary hearing related to maintaining the automatic appellate stay and the propriety of a bond, if any, and the amount, if any, of such a bond. On December 1, 2008, the Twentieth Judicial Circuit Court conducted the full evidentiary hearing pursuant to the mandate of the Second District Court of Appeal and on December 18, 2008 the Court Ordered and Adjudged that the Clerk cause to be released to the County's General Fund the $3,239,000 cash bond and interest earned on the cash bond while in the Court registry. NOTE 20 SUBSEQUENT EVENTS On October 8, 2009 the Collier County Water and Sewer District issued the $11,727,489 Collier County Water -Sewer District Water and Sewer Refunding Revenue Bond, Series 2009 for purposes of refunding all of the outstanding Collier County Wafter and Sewer District's Series 1999B bonds. The bonds were issued on parity with existing County Water and Sewer debt and pay a fixed rate of interest of 2.97% through their maturity on July 1, 2016. The refunding achieved a net present value savings of 5.24 %. On January 12, 2010 the Collier County Board of County Commissioners authorized the submission of an amendment to State Revolving Fund Loan Agreement DW111 030 for purposes of reimbursing $5,839,056 of costs associated with a 12 million gallon per day reverse osmosis plant. The amendment was approved by the Florida Department of Environmental Protection on January 25, 2010 at an interest rate of 2.71% per annum. 72 14B 70 IT!!!! 61! 1 Required Supplementary Information Collier County, Florida Schedule of Funding Progress for the Retiree Health Plan 74 Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) - Percentage of Valuation Value of Unit Credit Unfunded Funded Covered Covered Agency Date Assets Actuarial Cost AAL (UAAL) Ratio Payroll Payroll Board and Constitutionals 10/1/2008 $ - •$ 3,769,254 $ 3,769,254 0.0% $ 173,538,752 2.2% (Non - Sheriff) Board and Constitutionals 10/1/2009 - 5,814,470 5,814,470 0.0% 164,923,591 3.5% (Non - Sheriff) Sheriff 10/1/2008 - 9,354,088 9,354,088 0.0% 128,182,544 7.3% Sheriff 10/1/2009 - 14,171,709 14,171,709 0.0% 123,296,677 11.5% 74 SINGLE AUDIT/FEDERAL AND STATE SCHEDULE OF FINANCIAL ASSISTANCE I The Single Audit/Federal endStatesohedu|eoffinancialassistanuesectoopresentsGrants compliance reports filed by Collier County with Federal government and State government, 1� r THIS PAGE INTENTIONALLY LEFT BLANK (i lI,,. °i rc-; ?_ry r �-�'�`�bvpvc.-u Ernst ar Young LLP Suite 700 100 Northeast Third Avenue Fort Lauderdale, FL 33301 Tel: +1954 883 8000 Fax: +1954 888 8160 www.ey.coin Report of Independent Certified Public Accountants on Internal Control Over Financial Deporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards Members of the Board of County Commissioners Collier County, Florida We have audited the financial statements of the governmental. activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (the County) as of and for the year ended September 30, 2009, which collectively comprise the County's basic financial statements and have issued our report thereon dated February 10, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over financial Reporting In planning and performing our audit, we considered the County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 1002 - 1130878 161 A member firm of Ernst 3 Youna Global Limited Compliance and Other batters As part of obtaining reasonable assurance about whether the County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, the Board of County Commissioners, others within the entity, the Auditor General of the State of Florida, federal and state awarding agencies and pass - through entities and is not intended to be and should not be used by anyone other than these specified parties. February 10, 2010 1002 - 1130878 162 A member firm of Ernst & Young Global Limited NLE' PVS & I YCT( PAGa Compliance and Other batters As part of obtaining reasonable assurance about whether the County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, the Board of County Commissioners, others within the entity, the Auditor General of the State of Florida, federal and state awarding agencies and pass - through entities and is not intended to be and should not be used by anyone other than these specified parties. February 10, 2010 1002 - 1130878 162 A member firm of Ernst & Young Global Limited 'fl�fllrr,. ,,III MIIIIII��E'' PiP, 6 T&�(017JPVG Ern5� 2 YOungU! 8 Suite 700 100 Northeast Third Avenue Fort Lauderdale, FL 33301 Tel: +1954 888 8000 Fax: +1954 888 8160 vjww.ey.com Deport of Independent Certified Public Accountants on Compliance With Requirements Applicable to Each Major Federal Program and Mate Project and on Internal Control Over Compliance iri Accordance With OMB Circular A -133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General Members of the Board of County Commissioners Collier County, Florida Compliance We have audited the compliance of Collier County, Florida (the County), with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement, and the requirements described in the Florida Department of Financial Services State Projects Compliance Supplement, that are applicable to each of its major federal programs and state projects for the year ended September 30, 2009. The County's major federal programs and state projects are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs and state projects is the responsibility of the County's management. Our responsibility is to express an opinion on the County's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A -133, Audits of States, Local Governments, and Non Profit Organizations; Section 215.97, Florida Statutes (Section 215.97); and Chapter 10.550, Rules of the Auditor General, State of Florida (Chapter 10.550). Those standards, OMB Circular A -133, Section 215.97 and Chapter 10.550 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the County's compliance with those requirements. - 1002 - 1130878 163 A member firm of Ernst 5 Young Global Limited ` � � I � � � � � � � I I I'' i l j e' • °�� rFr11' �:/J�' %�•{��.. �� p? i,®�'�'/] gpP?� �,r''= ! W LLPL9 ��n..Y � �a�•a Y �`wV 1�,,,Pd Arx As described in item 2009 -1 in the accompanying schedule of findings and questioned costs, the County did not comply with requirements regarding allowable costs that are applicable to its Community Care for the Elderly and Aging Cluster programs. As described in item 2009 -1 and 2009 -3 in the accompanying schedule of findings and questioned costs, the County did not comply with requirements regarding allowable costs and reporting that are applicable to its State Housing Initiative Partnership (SHIP) Program. Further, as described in item 2009 -6 in the accompanying schedule of findings and questioned costs, the County did not comply with requirements regarding the Davis -Bacon Act that are applicable to its Airport Improvement Program. Compliance with such requirements is necessary, in our opinion, for the County to comply with requirements applicable to these programs. In our opinion, except for the noncompliance described in the preceding paragraph, the County complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs and state projects for the year ended September 30, 2009. The results of our auditing procedures also disclosed other instances of noncompliance with those requirements that are required to be reported in accordance with OMB Circular A -133, Section 215.97, or Chapter 10.550, and which are described in the accompanying schedule of findings and questioned costs as items 2009 -1 (with respect to the Community Development Block Grant (CDBG) Program), 2009 -2, 2009 -4, and 2009 -5. Internal Control Over Compliance The management of the County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs and state projects. In planning and performing our audit, we considered the County's internal control over compliance with requirements that could have a direct and material effect on a major federal program or state project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the County's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies and others that we consider to be material weaknesses. 1002-1130878 164 A member firm of Ernst & Youna Global Limited p. A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program or state project such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program or state project that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2009 -1, 2009- 2, 2009 -3 and 2009 -5 and 2009 -6 to be significant deficiencies. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented or detected by the entity's internal control. Of the significant deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs, we consider items 2009 -1 (except with respect to the CDBG and Home Investment Partnerships programs), 2009 -3, and 2009 -6 to be material weaknesses. The County's response to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County's response and, accordingly, we express no opinion on it. This report is intended solely for the information and use of management, the Board of County Commissioners, others within the entity, the Auditor General of the State of Florida, federal and state awarding agencies, and pass - through entities and is not intended to be and should not be used by anyone other than these specified parties. fg/w"-t Yr r"I up February 10, 2010 1002 - 1130878 165 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF _ FEDERAL AWARDS AND STATE PROJECTS WWI FOR THE FISCALYEAR ENDED SEPTEMBER 30, 2009 CFDA #/ Federal or5tate Grantor /Pass- Through Grantor Program Title CSFA# Grant /Contract Number Expenditures Department of Agriculture Indirect Programs: Florida Department of Education: Summer Food Service Program for Children 10.559 04 -0804 $ 749,898 Florida Department of Agriculture and Consumer Services: Cooperative Forestry Assistance 10.664 Ochopee Fire District 5,851 Total Department of Agriculture 755,749 Department of Commerce Direct Programs: National Fish and Wildlife Foundation: Educational Partnership Program / Sea Turtle Disorientation 11.481 2006- 0114 -004 8,550 Indirect Programs: Florida Division of Emergency Management: Public Safety Interoperable Communications/ PSIC 11.555 09- DS- 31- 09 -21 -01 -269 150 Total Department of Commerce 8,700 Department of Housing and Urban Development Direct Programs: Community Planning and Development: Community Development Block Grants/ Entitlement(CDBG) 14.218 B- 02 -UC -12 -0016 16 Community Development Block Grants/ Entitlement(CDBG) 14.218 B- 04- UC -12- 0016 250,618 Community Development Block Grants /Entitlement (CDBG) 14.218 B- 05 -UC -12 -0016 436,094 Community Development Block Grants/ Entitlement (CDBG) 14.218 B -06 -UC -12 -0016 572,100 Community Development Block Grants /Entitlement (CDBG) 14.218 B- 07 -UC -12 -0016 1,077,682 Community Development Block Grants/ Entitlement(CDBG) 14.218 B- 08 -UC -12 -0016 1,535,065 Community Development Block Grants/ Entitlement(CDBG) 14.218 B- 09 -UC -12 -0016 91,517 Community Development Block Grants / Neighborhood Stabilization 14.218 B- 08 -UN -12 -0003 1,778,737 Total CFDA 5,741,829 Emergency Shelter Grants Program (ESG) 14.231 S- 08 -UC -12 -0024 94,007 Supportive Housing Program (CoC) 14.235 FL14B50 -6001 68,636 Supportive Housing Program (CoC) 14.235 FL14B50 -6002 116,900 Supportive Housing Program (CoC) 14.235 FL1060 -6003 2,415 Supportive Housing Program (CoC) 14.235 FL141370 -6001 10,976 Supportive Housing Program (CoC) 14.235 FIL141370 -6002 104,587 Total CFDA 303,514 Home Investment Partnerships Program (HOME) 14.239 M- 06 -UC -12 -0217 142,116 Home Investment Partnerships Program (HOME) 14.239 M- 07 -UC -12 -0217 89,023 Home Investment Partnerships Program (HOME) 14.239 M- 09 -UC -12 -0217 383,260 Home Investment Partnerships Program (HOME) 14.239 M- 09 -UC -12 -0217 16,958 Total CFDA 631,357 Indirect Programs: Florida Department of Community Affairs: Community Development Block Grant /State's Program (DRI) 14.228 07DB- 3V- 09- 21- 01 -Z01 1,336,153 Community Development Block Grant / State's Program (DR]) 14.228 08DB- D3- 09- 21- 01 -A03 934,467 Total CFDA 2,270,620 Total Department of Housing and Urban Development 9,041,327 (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. 1002 - 1130878 166 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF 14 B 4 FEDERAL AWARDS AND STATE PROJECTS FORTHE FISCALYEAR ENDED SEPTEMBER 30, 2009 Federal or State Grantor /Pass- Through Grantor Program Title CFDA #/ CSFA# Grant /Contract Number Expenditures Department ofthe Interior 108,903 16.606 2008 -AP -BX -0316 Direct Programs: 16.710 2008CKWX0170 350,738 Fish and Wildlife Service: 2007CKWX0089 2,029 Coastal Program / Otter Mound 15.630 401818/610 $ 8,400 Partnersfor Fish and Wildlife /Conservation Collier Land 15.631 401815JO21 1,800 National Fire Plan- Wildland Urban Interface Community fire Assistance 15.228 401818G563 10,314 Indirect Programs: 219,549 16.527 Florida Fish and Wildlife Conservation Commission: 100,383 16.523 SB -105 Sport Fish Restoration Program - Artificial Reef Construction 15.605 FWC -08258 60,000 Total Department of the Interior 2008- JAG - COLL -I -Q9 -170 31,263 80,514 Department of Treasury Direct Programs: Department of Treasury: Federal Equitable Sharing Total Department of Treasury Department of Justice Direct Programs: Office of Justice Programs: Federal Equitable Sharing Services for TraffickingVictims / Anti Trafficking Task Force State Criminal Alien Assistance Program (SCAAP) Public Safety Partnership and Community Policing Grants / COPS /Technology Program Public Safety Partnership and Community Policing Grants / COPS / Secure Our Schools Total CFDA Edward Byrne Memorial Justice Assistance Grant Program Edward Byrne Memorial Justice Assistance Grant Program Edward Byrne MemorialJustice Assistance Grant Program Total CFDA Office on Violence Against Women: Supervised Visitation, Safe Havens for Children Indirect Programs: Florida Department of Juvenile Justice: Juvenile Accountability Block Grants / Peer Mediation Program Florida Office of Attorney General: Crime Victim Assistance (VOCA) Florida Department of Law Enforcement: Edward Byrne Memorial Formula Grant /Sexual Predator Edward Byrne Memorial Formula Grant /Sexual Predator Total CFDA Community Prosecution and Project Safe Neighborhoods/ Anti -Gang Initiative 1002- 1130878 167 21.unknown Collier County Sheriff 210,585 210,585 16.unknown Collier County 16,019 16.320 2005 -VT -BX -0002 108,903 16.606 2008 -AP -BX -0316 12,433 16.710 2008CKWX0170 350,738 16.710 2007CKWX0089 2,029 352,767 16.738 2006 -DJ -BX -0474 49,210 16.738 2007 -DJ -BX -0504 131,917 16.738 2008 -D1 -BX -0340 38,422 219,549 16.527 2007 -CW -AX -0007 100,383 16.523 SB -105 25,400 16.575 V8055 114,742 16.579 2008- JAG - COLL -I -Q9 -170 31,263 16.579 2009- JAG- COLL -1-T7 -011 56,619 87,882 16.609 2008 - PMAG - COLL -I -R6 -005 14,956 (Continued) COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF 4:B FEDERAL AWARDS AND STATE PROJECTS FORTHE FISCAL YEAR ENDED SEPTEMBER 30, 2009 Federal or State Grantor/ Pass - Through Grantor Program Title CFDA # / CSFA# Grant /Contract Number Expenditures Florida Department of Children and Families: ARRA Violence Against Women Formula Grants /InVEST 16.588 ARRA LN947 $ 12,305 Violence Against Women Formula Grants/ STOP 16.588 LN816 104,344 Violence Against Women Formula Grants /STOP 16.588 LN916 38,445 Total CFDA 155,094 Total Department of Justice 1,208,128 Department of Transportation Direct Programs: Federal Aviation Administration: Airport Improvement / Immokalee Construct Aircraft Apron 20.106 3 -12 -0031- 005 -2009 174,279 Airport Improvement / Marco Master Plan Study Update 20.106 3 -12- 0142 -002 -2006 10,179 Airport Improvement / Marco Apron Phase I & II 20.106 3 -12- 0142- 003 -2006 1,612 Airport Improvement/ Marco Land Acquisition 20.106 3 -12- 0142 - 007 -2009 246,850 Airport Improvement/ Marco Phase 11 Surcharge /Construction 20.106 3 -12- 0142- 004 -2007 27,911 Airport improvement/ Marco South Taxiway & Apron Design 20.106 3 -12 -0142- 005 -2008 164,423 Total CFDA 625,254 Federal Transit Administration: Federal Transit - Formula Grants /Section 5307 20.507 FL -90- X645 -00 13,281 Federal Transit - Formula Grants /Section 5307 20.507 FL -90- X665 -00 651,136 Federal Transit - Formula Grants / Section 5307 20.507 FL -90- X699 -00 104,763 Total CFDA 769,180 Indirect Programs: Florida Department of Transportation: Highway Planning and Construction / Lighting 20.205 412559 72,271 Highway Planningand Construction / Pedestrian Bridge 20.205 412627 142,714 Highway Planning and Construction / Landscaping 20.205 200732 97,996 Highway Planningand Construction /Landscaping 20.205 414534 67,085 Highway Planningand Construction / Bicycle /Pedestrian Bridges 20.205 415590 239,839 Highway Planning and Construction/ MPO UPWP 20.205 416342 551,856 Highway Planning and Construction / Immokalee Sidewalks 20.205 422164 28,000 Highway Planning and Construction / Immokalee Sidewalks 20.205 422165 142,675 Highway Planningand Construction / Minor intersection Improvements 20.205 415543 124,415 Highway Planning and Construction / Dynamic Message Signs 20.205 423653 156,442 Highway Planning and Construction / Opticom Receivers 20.205 423666 75,000 Total CFDA 1,698,293 Federal Transit - Metropolitan Planning Grants /Section 5303 20.505 AM356 71,003 Formula Grants for Other Than Urbanized Areas /lmkCirculator 20.509 AOW89 244,253 Capital Assistance Program for Elderly Persons and Persons with Disabilities/ Section 5310 20.513 FL -16- 0033 259,697 Total Department of Transportation 3,667,680 Environmental Protection AeencV Indirect Programs: Florida Department of Environmental Protection: Capitalization Grants For Drinking Water State Revolving Funds 66.468 DW1111010 1,268,176 Capitalization Grants For Drinking Water State Revolving Funds 66.468 DW1111020 4591981 Total Environmental Protection Agency 1,728,157 (Continued) 1002 - 1130878 168 COLLIER COUNTY, FLORIDA 1/4B �f; SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 Federal or State Grantor /Pass - Through Grantor Program Title CFDA #/ CSFA# Grant /Contract Number Expenditures Election Assistance Commission (EAC) 26,698 indirect Programs: 93.045 OAA 203.08 68,233 Florida Division of Elections: OAA 203.08 94,997 93.045 Help America Vote Act Requirements Payments / Poll Workers 175,332 93.045 OAA 203.09 Recruitment 90.401 Collier County $ 11,793 Help America Vote Act Requirements Payments / Voter NSIP 203.08 1,855 93.053 Education 90.401 Collier County 16,579 Help America Vote Act Requirements Payments / Federal Election Activities 90.401 Collier County 3,117 Help America Vote Act Requirements Payments / Voting Systems Assistance (HAVA 2002) 90.401 Collier County 97,684 Total Election Assistance Commission (EAC) 129,173 Department of Health and Human Services Direct Programs: Health Resources and Services Administration: Specially Selected Health Projects Indirect Programs: Florida Department of ElderAffairs -Area Agency on Agingfor Southwest Florida, Inc.: Aging Cluster: Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers Total CFDA Special Programs for the Aging -Title III, Part C -1- Nutrition Services Special Programs fortheAging -Title III, Part C- 2- Nutrition Services Special Programs forthe Aging -Title III, Part C -1- Nutrition Services Special Programs for the Aging-Title III, Part C- 2- Nutrition Services Total CFDA Nutrition Services Incentive Program Nutrition Services Incentive Program Total CFDA ARRA Aging Home-Delivered Nutrition Services - Title III -C2 ARRA Aging Congregate Nutrition Services for States -Title III -C1 Total Aging Cluster National Family Caregiver Support -Title III, Part E National Family Caregiver Support -Title 111, Part E Total CFDA Florida Department of Transportation - Commissionforthe Transportation Disadvantaged: Medical Assistance Program Florida Department of Revenue: Child Support Enforcement Total Department of Health and Human Services 1002 - 1130878 169 93.888 D1BIT10769 13,440 93.044 OAA 203.08 19,130 93.044 OAA 203.09 26,698 45,828 93.045 OAA 203.08 68,233 93.045 OAA 203.08 94,997 93.045 OAA 203.09 175,332 93.045 OAA 203.09 194,231 93.563 CD 311 532,793 93.053 NSIP 203.08 1,855 93.053 NSIP 203.09 17,690 19,545 93.705 ARRA 203.09 15,990 93.707 ARRA 203.09 26,583 640,739 93.052 OAA 203.08 13,695 93.052 OAA 203.09 26,108 39,803 93.778 BDM59 378,335 93.563 CD 311 243,065 1,315,382 (Continued) COLLIER COUNTY, FLORIDA 4 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FORTHE FISCAL YEAR ENDED SEPTEMBER 30, 2009 CFDA #/ Federal or State Grantor /Pass- Through Grantor Program Title CSFA# Grant /Contract Number Expenditures Corporation for National and Community Service Direct Programs: Retired and Senior Volunteer Program Total Corporation for National and Community Service Department of Homeland Security Direct Programs: Assistance to Firefighters Grant / Mobile Data Terminals Assistance to Firefighters Grant /Stair Chairs Total CFDA Indirect Programs: Homeland Security Cluster: Florida Department of Law Enforcement: Domestic Preparedness Equipment Support Program Homeland Security Grant Program J Issue 20 Homeland Security Grant Program / Issue 21 Homeland Security Grant Program / Issue 8 Homeland Security Grant Program / Issue 806A Homeland Security Grant Program / Issue 813 Florida Department of Community Affairs: Homeland Security Grant Program Homeland Security Grant Program Homeland Security Grant Program Total CFDA Total Homeland Security Cluster Disaster Grants - Public Assistance / Tropical Storm Fay Disaster Grants - Public Assistance / Hurricane Wilma Total CFDA Hazard Mitigation Grant Hazard Mitigation Grant Hazard Mitigation Grant Hazard Mitigation Grant Total CFDA Emergency Management Performance Grant Emergency Management Performance Grant Total CFDA Total Department of Homeland Security TOTAL EXPENDITURES OF FEDERAL AWARDS 1002 - 1130878 170 94.002 06SRSFL004 $ 55,072 55,072 97.044 EMW- 2007 -FO -04528 39,871 97.044 EMW - 2008 -FO -03394 47,594 87,465 97.004 2006LETPCOLL3N1 -013 662,971 97.067 2008SHSPCOLL3S4 -011 87,008 97.067 2008SHSPCOLL2S4 -009 29,800 97.067 2008SHSPCOLLIS4 -010 17,783 97.067 2009SHSPCOLLIV3 -014 169,901 97.067 20095HSPCOLL2V3 -016 70,000 97.067 09CC- 49- 09 -21 -01 -341 5,773 97.067 09CI- 49- 09 -21 -01 -350 7,439 97.067 09DS- 51- 09 -21 -01 -322 26,165 413,869 1,076,840 97.036 Collier County 409,828 97.036 Collier County 64,907 474,735 97.039 07- EC- 33- 09 -21 -01 -486 54,717 97.039 09HM- 37- 09 -21 -01 -019 43,856 97.039 08HM- 6G- 09 -21 -01 -017 66,952 97.039 09HM- 37- 09 -21 -01 -001 10,752 176,277 97.042 09- BG -03 -09 -21-01 -159 42,000 97.042 09- BG- 20- 09 -21 -01 -427 18,830 60,830 1,876,147 $ 20,076,614 COLLIER COUNTY, FLORIDA t SCHEDULE OF EXPENDITURES OF 148 u, FEDERAL AWARDS AND STATE PROJECTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 CF DA #/ Federal or State Grantor/ Pass - Through Grantor Program Title CSFA# Grant /Contract Number Expenditures Florida Executive Office of the Governor Visit Florida 31.006 M -08187 $ 5,000 Total Florida Executive Office of the Governor 5,000 Florida Department of Environmental Protection Beach Erosion Control Program Florida Recreation Development Assistance Program Florida Recreation Development Assistance Program Total CSFA Statewide Surface Water Restoration and Wastewater Projects Innovative Waste Reduction and Recycling Grants Innovative Waste Reduction and Recycling Grants Total CSFA Total Florida Department of Environmental Protection Florida Department of State and Secretary of State Public Library Construction Program Public Library Construction Program Total CSFA State Aid to Libraries State Aid to Libraries State Aid to Libraries Total CSFA Total Florida Department of State and Secretary of State Florida Department of Community Affairs Emergency Management Programs Emergency Management Projects Total Florida Department of Community Affairs Florida Housing Finance Corporation State Housing Initiatives Partnership (SHIP) Program State Housing Initiatives Partnership (SHIP) Program State Housing Initiatives Partnership (SHIP) Program Total Florida Housing Finance Corporation Florida Department of Transportation Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Total CSFA 1002 - 1130878 171 37.003 0SC01 21,945 37.017 A9048 133,480 37.017. A8119 95,057 45.030 06 -ST -12 228,537 37.039 4600001765 50,000 37.050 IG8 -07 20,285 37.050 IG8 -09 49,186 69,471 369,953 45.020 06- PLC -04 200,000 45.020 07- PLC -04 200,000 400,000 45.030 06 -ST -12 3,181 45.030 08 -ST -12 85,047 45.030 09 -ST -10 272 88,500 488,500 52.008 09- BG- 03- 09 -21 -01 -159 98,722 52.023 09CP- 04- 09 -21 -01 -124 8,300 107,022 52.901 FY 07 1,127 52.901 FY 08 10,870 52.901 FY 09 1,099,229 1,111,226 55.001 APK39 55.001 AP589 55.001 AP621 143,111 59,400 454,698 • 657,209 (Continued) CFDA #/ Federal or State Grantor/Pass-Through Grantor Program Title CSFA# Grant /Contract Number Expenditures Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 COLLIER COUNTY, FLORIDA $ 7,080 SCHEDULE OF EXPENDITURES OF fi> FEDERAL AWARDS AND STATE PROJECTS FORTHE FISCAL YEAR ENDED SEPTEMBER 30, 2009 55.002 CFDA #/ Federal or State Grantor/Pass-Through Grantor Program Title CSFA# Grant /Contract Number Expenditures Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 APJ51 $ 7,080 Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 AP647 14,689 Total CSFA 21,769 Aviation Development Grants / Marco Mitigation Taxiway 55.004 AI526 3,181 Aviation Development Grants / Marco Land Acquisition 55.004 AI935 8,625 Aviation Development Grants / Marco Taxiway "C" Phase 1 55.004 AOF09 25,525 Aviation Development Grants / Marco Master Plan Study 55.004 ANF50 268 Aviation Development Grants / Marco Mitigation Phase II 55.004 ANH17 734 Aviation Development Grants J Marco Taxiway "C" Phase 1 55.004 ANF48 3,763 Aviation Development Grants / Slope Mower 55.004 AP144 96,207 Aviation Development Grants / Marco Fuel Farm 55.004 A0010 14,650 Aviation Development Grants / Marco Apron Phase I & II 55.004 AOK80 50 Total CSFA 153,003 County Incentive Grant Program / PD &E StudySR82 55.008 419950- 2 -22 -01 44,661 Public Transit Block Grant Program 55.010 AOW93 471,212 Public Transit Service Development Program /Red Route 55.012 AOK37 86,738 State Infrastructure Bank Loan 55.020 420655 -2 1,957,377 Total Florida Department of Transportation 3,391,969 Florida Department of Children and Families Homeless Challenge Grant /CoC 60.014 HFZ93 77,584 Total Florida Department of Children and Families 77,584 Florida Department of Health County GrantAwards / Emergency Medical Services 64.005 C8011 174,808 Total Florida Department of Health 174,808 Florida Department of ElderAffairs Area Agency on Aging for Southwest Florida, Inc: Home Care for the Elderly (HCE) 65.001 HCE 203.08 3,747 Home Care for the Elderly (HCE) 65.001 HCE 203.09 2,089 Total CSFA 5,836 Alzheimer's Respite Services (AD]) 65.004 AM 203.08 68,523 Alzheimer's Respite Services (AM) 65.004 ADI 203.09 13,660 Total CSFA 82,183 Community Care forthe Elderly (CCE) 65.010 CCE 203.08 597,094 Community Care for the Elderly (CCE) 65.010 CCE 203.09 115,136 Total CSFA 712,230 Total Florida Department of Elder Affairs 800,249 Florida Department of Management Services Wireless 911 Emergency Telephone System 72.001 S- 08 -07 -31 9,574 Total Florida Department of Management Services 9,574 (Continued) 1002 - 1130878 172 COLLIER COUNTY, FLORIDA 4 B SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 Florida Department of Juvenile Justice Delinquency Prevention /TRAC Delinquency Prevention / FTRAC Total Florida Department ofJuvenile Justice TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 1002 - 1130879 173 80.029 DP -576 80.029 GS -120 42,378 27,277 69,655 $ 6,767,967 CFDA #/ Federal or State Grantor/ Pass - Through Grantor Program Title CSFA# Grant /Contract Number Expenditures Florida Fish and Wildlife Conservation Commission Florida Boating Improvement Program 77.006 07071 $ 67,846 Florida Boating Improvement Program 77.006 08064 33,090 Florida Boating Improvement Program 77.006 08079 61,491 Total Florida Fish and Wildlife Conservation Commission 162,427 Florida Department of Juvenile Justice Delinquency Prevention /TRAC Delinquency Prevention / FTRAC Total Florida Department ofJuvenile Justice TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 1002 - 1130879 173 80.029 DP -576 80.029 GS -120 42,378 27,277 69,655 $ 6,767,967 Collier County, Florida Notes to the Schedule of Expenditures of Federal Awards and State Projects Year Ended September'30, 2009 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Projects (the Schedule) includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on the modified accrual basis of accounting for expenditures accounted for in the governmental funds and the accrual basis of accounting for expenditures in proprietary funds. Under the modified accrual basis, revenue is recognized if it is both measurable and available for use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if measurable. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. The information in the Schedule is presented in accordance with the requirements of U.S. Office of Management and Budget (OMB) Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, and Section 215.97, Florida Statutes. Therefore, some amounts presented in the Schedule may differ from amounts presented, or used in the preparation of, the basic financial statements for the fiscal year ended September 30, 2009. 2. State Revolving Funds Reconciliation of State Revolving Funds (CFDA# 66.468) expended to cash received during fiscal year 2009: Expenses reported on Single Audit Schedule Reimbursements received for prior year expenses Retainage timing differences, net Less current year expenses that have not been reimbursed Total State Revolving Fund reimbursements received 1002 - 1130878 174 $ 1,728,157 8,290,527 295,480 (452,618) $ 9,861,546 A member firm of Ernst 3 Young Global Limited 1419 7" Collier County, Florida Notes to the Schedule of Expenditures of Federal Awards and State Projects (continued) 3. State Infrastructure Bank Loan The County received a $12,000,000 State Infrastructure Bank Loan from the Florida Department of Transportation in fiscal year 2008 for construction of the I- 75/lmmolcalee Road interchange. The Florida Department of Transportation included this project with their concurrent widening of I -75 and retained the loan proceeds to fund the project. Accordingly, the County's expenditures for purposes of reporting on the Schedule consist of principal loan repayments only ($1,957,377 for fiscal year 2009) as no proceeds were received under the loan and no project expenditures were incurred or paid directly by the County. The balance of the loan as of September 30, 2009 is $10,042,623. The repayment schedule for this loan is as follows: Payment Date Principal Interest Total 10/1/2008 $ 1,957,377 $ 82,623 $ 2,040,000 10/1/2009 1,839,148 200,852 2,040,000 10/1/2010 1,875,930 164,070 2,040,000 10/1/2011 1,913,449 126,551 2,040,000 10/1/2012 4,414,096 88,282 4,502,378 $ 12,000,000 $ 662,378 $ 12,662,378 4. Subgrant Awards The following subgrant awards were made by Collier County during fiscal year 2009: Program Title Federal: Community Development Block Grant Community Development Block Grant / State's Program Emergency Shelter Grant Supportive Housing Program Home Investment Partnerships Program State: State Housing Initiatives Partnership Program Homeless Challenge Grant 1002 - 1130878 175 CFDA /CSFA Subgrant Number Amount 14.218 $ 3,520,432 14.228 1,706,132 14.231 94,007 14.235 301,567 14.239 341,117 52.901 699,090 60.014 80,353 Collier County, Florida Notes to the Schedule of Expenditures of Federal Awards and State Projects (continued) 5. Contingency 142 74 The grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the County. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations. 1002 - 1130878 176 Collier County, Florida Schedule of Findings and Questioned Costs For the Year Ended September 30, 2009 Part I— Summary of Auditor's Results ]Financial Statements Section Type of auditor's report issued: Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards and .State Projects Section Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weaknesses? Type of auditor's report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with section .510(a) of OMB Circular A -133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General, State of Florida? 1002 - 1130878 177 14B 74 Unqualified Yes X No Yes X bone reported Yes X No X Yes No X Yes bone reported Qualified for the Aging Cluster (CFDA No.'s 93.044, 93.045, 93.053, 93.705, 93.707), the Airport Improvement Program (CFDA No. 20.106), the Community Care for the Elderly Program (CSFA No. 65.010), and the State Housing Initiatives Partnership Program (CSFA# 52.901); and Unqualified for all other major programs X Yes No 14B ',7 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Identification of major federal programs: ]Federal Programs CFDA, Number Federal Agency/Name of ]Federal Program U.S. Department of Housing and Urban Development: 14.218 Community Development Block Grant Program (CDBG) 14.239 Home Investment Partnerships Program (HOME) 14.228 Community Development Block Grant / State's Program (DRI). U.S. Department of Agriculture: 10.559 Summer Food Service Program for Children (Child Nutrition Cluster) U.S. Department of Justice: 16.710 Public Safety Partnership and Community Policing Grants U.S. Department of Transportation: 20.507 Federal Transit — Formula Grants (Federal Transit Cluster) 20.106 Airport Improvement Program U.S. Environmental Protection Agency: 66.465 Capitalization Grants For Drinking Water State Revolving Funds 93.044, 93.045, 93.053, 93.705, 93.707 97.004, 97.067 U.S. Department of Health and Human Services: Aging Cluster U.S. Department of Homeland Security: Homeland Security Cluster 1002-1130878 178 14 11 ' Collier County, Florida Schedule of Findings and Questioned Costs (continued) Identification of major state projects: State Rrojects CSFA Number State Ageucy/Name of State Project Florida Housing Finance Corporation: 52.901 State Housing Initiatives Partnership Program (SHIP) Florida Department of Transportation: 55.001 Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.010 Public Transit Block Grant Program 55.020 State Infrastructure Bank Loan Program Florida Department of Elder Affairs: 65.010 Community Care for the Elderly Dollar threshold used to distinguish between Type A and Type B programs: O Federal Programs $602,298 O State Projects $ 300,000 Auditee qualified as low -risk auditee? 1002 - 1130878 179 }Yes X No Collier County, Florida Schedule of Findings and Questioned Costs (continued) Part 11— Financial Statement Findings Section This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of provisions of contracts and grant agreements, and abuse related to the financial statements for which Government Auditing Standards require reporting. No such matters were identified. 1002 - 1130878 180 14 B ',,.7 Collier County, Florida Schedule of Findinngs and Questioned Costs (continued) Part III Federal Awards and State Projects Findings and Questioned Costs Section This section identifies the audit findings required to be reported by Circular A -133 section .510(a), Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General, State of Florida, such as material weaknesses, significant deficiencies, and material instances of noncompliance, including questioned costs, as well as any abuse findings involving federal awards or state projects that are material to a major program. Finding 2009 -1 Federal /State Program Information Federal Agencies/Programs: U.S. Department of Housing and Urban Development (HUD) Home Investment Partnerships Program. (HOME) — CFDA No. 14.239 Community Development Block Program (CDBG) — CFDA No. 14.218 U.S. Department of Health and Human Services Aging Cluster (AC) — CFDA No.'s 93.044, 93.045, 93.053, 93.705, 93.707 State Agencies /Programs: Florida Department of Elder Affairs Community Care for the Elderly (CCE) — CSFA No. 65.010 Florida Housing Finance Corporation State Housing Initiatives Partnership Program (SHIP) — CSFA No. 52.901 1002-1130873 181 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Criteria 14 M ',771-1' Allowable Costs: Compensation for personnel services rendered in connection with Federal awards must be documented and supported as described in OMB Circular A -87, Cost Principles for State, Local and Indian Tribal Governments (A -87). Additionally, pursuant to the SHIP Program Manual and the State of Florida's Part Four Compliance Supplement for the CCE program, administrative costs for the SHIP and CCE state programs should also be in conformance with A -87. According to A -87, the standards regarding time distribution are in addition to the payroll documentation and require the following: Charges to Federal awards for salaries and wages, whether treated as direct or indirect costs, will be based on payrolls documented in accordance with the generally accepted practice of the governmental unit and approved by responsible official(s) of the governmental unit. Where employees are expected to work solely on a single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on the program for. the period covered by the certification. These certifications will be prepared at least semi - annually and will be signed by the employee or supervisory official having first -hand knowledge of the work performed by the employee. Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation which meets the following standards (unless a statistical system or other substitute system has been approved by the cognizant Federal agency): a) must reflect an after - the -fact distribution of the actual activity of each employee, b) must account for the total activity for which each employee is compensated, c) must be prepared at least monthly and must coincide with one or more pay periods, and d) must be signed by the employee. e) Budget estimates or other distribution percentages determined before the services are performed do not qualify as support for charges to Federal awards but may be used for interim accounting purposes. 1002 - 1130878 182 : RJ j Collier County, Florida Schedule of Findings and Questioned Costs (continued) Condition/Context We noted that from the beginning of the fiscal year through January 2009, the County's documentation supporting payroll allocations for employees that work on multiple grants did not meet federal standards as described in OMB Circular A -87 above. The County has used a Personnel Activity Report (PAR) to allocate payroll salaries for employees who work on multiple activities. These reports are prepared annually, at the beginning of each fiscal year, based on an estimate of the time the employees are expected to work on a grant. The PAR does not show the total activity for which an employee is compensated and does not require the employee's signature. The County's Department of Housing and Human Services initiated a timesheet process in fiscal year 2006 whereby employees in the department indicate the projects to which their time relates each week. These timesheets are signed by the employees and supervisors and kept in the department for internal control purposes. For the first part of fiscal year 2009, these timesheets were not provided to the County's payroll department to adjust the allocation of payroll costs from the estimate as indicated in the annual PAR form to actual time spent. Thus, there is not an "after the fact" accounting based on actual activity. We noted that the HOME program had no payroll expenditures charged to the program during the period noted above (although there should have been), and therefore, no question costs have been reported for this program. The payroll charges related to the HOME program were instead charged to other housing programs as a result of the lack of an after the fact accounting for the period noted above. Questioned Costs Total salaries and related costs for the time period noted above are summarized as follows: CDBG (CFDA No. 14.218) $ 175,668 SHIP (CSFANo. 52.901) 75,351 AC (CFDA No.'s 93.044, 93.045, 93.053, 93.705, 93.707) 87,992 CCE (CSFA No. 65.010) 65,706 1002 - 1130878 183 a14 I Collier County, Florida Schedule of Findings and Questioned Costs (continued) Cause /Effect The PARS and timesheets used do not meet the requirements of OMB Circular A -87 with respect to the documentation supporting the allocation of salaries and related costs for the period 'noted above. The payroll charged to a grant was based on the PAR, or budgeted amount, and there was no process in place to compare the PAR percentage used by the payroll department to allocate costs during this period to the actual time incurred by the employee based on the timesheets. Additionally, PAR reports do not include the employee's signature and are completed annually; however, for employees who work solely on one grant, certification forms are required to be completed at least semi: annually. Recommendation The County should ensure that an effective and consistent process is in place to record payroll charges to grant programs throughout the entire fiscal year. The process should entail providing the timesheets to the payroll department on a periodic basis to match the related payroll allocated to each grant (as based on the PAR), to the actual time spent working on the federal/state grant based on the after - the -fact timesheet, and any adjustments necessary to true -up the estimated payroll charged to the grant (based on the PAR) to the actual amount (based on the timesheets) should be made. Alternatively, the payroll department could charge payroll costs to the grants based on actual timesheets submitted weekly as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay period. PAR reports should be signed by the employee and completed at least semi - annually for those employees who work solely on one grant. Views of Responsible Officials and Planned Corrective Action The finding in question occurred during the 1" quarter of FY09. The time was tracked correctly; however, a manual step was missed. Effective January 17, 2009, the Human Resources Department began processing bi- weekly time and effort entries for all Housing and Human Services grant staff. Staff submits timesheets that are signed by the employee and management to fiscal staff for review. The timesheets are forwarded to Human Resources to enter the actual percentage of time and effort into SAP prior to payroll expenses actually posting to SAP. This allows for "real time" charges directly to the appropriate grant in SAP, thereby eliminating the need to process journal entries at all. 1002 - 1130878 184 Collier County, Florida X48 7 Schedule of Findings and Questioned Costs (continued) Finding 2009 -2 Federal Program Information Federal Agency /Program: U.S. Department of Housing and Urban Development (HUD): Community Development Block Grant / State's Program (DRI) — CFDA No. 14.228 U.S. Department of Agriculture: Summer Food Service Program for Children— CFDA No. 10.559 U.S. Depaxtment of Justice: Public Safety Partnership and Community Policing Grants — CFDA No. 16.710 U.S. Department of Homeland Security: Homeland Security Cluster — CFDA No. 97.004, 97.067 U.S. Department of Transportation: Airport Improvement Program— CFDA No. 20.106 Criteria. Procurement, Suspension and Debarment: Non - Federal entities are prohibited from contracting with or malting subawaxds under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions. When a non - federal entity enters into a covered transaction with an entity at a lower tier, the non- federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause or condition to the covered transaction with that entity. Condition/Context Although the County indicated that its practice is to check the EPLS system, no documentation evidencing that it had checked the EPLS was maintained, and a certification from the entity was not collected or clause or condition included in the agreements, as applicable, for certain sample transactions selected for testing. Questioned Costs N/A 1002 - 1130878 185 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Cause /Effect 4 _18 P Internal controls with respect to suspension and debarment were not operating effectively as no documentation was maintained indicating 'that the EPLS was checked for the selected contract vendors or subrecipients, as applicable. Additionally, there was no evidence that the County had obtained a certification from the entity or added a clause or condition to the contract with the entity, as applicable. Therefore, we could not verify whether the County met its requirement to verify that the entities were not suspended or debarred or otherwise excluded. Recommendation The County should perform the required verification by checking the EPLS (and documenting evidence of the verification, when it was performed and by whom), collecting a certification from the entity, or adding a clause or condition to the contract with that entity in accordance with the Federal requirements. Views of Responsible Officials and Planned Corrective Action Collier County will apply currently enacted controls and measures operating effectively in one division agency -wide to ensure compliance. The Grants Coordinator for the Collier County Sheriff's Office will be responsible for checking EPLS and documenting the verification as recommended above for all Sheriff's grants with this requirement. Finding 2009 -3 State Program Information Florida Housing Finance Corporation (the Corporation) State Housing Initiatives Partnership Program (SHIP) CSFA No. 52,901 1 002 - 1130878 186 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Criteria Reporting: In accordance with Section 420.9075(10), Florida Statutes, each county or eligible municipality shall submit to the Corporation by September 15 of each year a report of its affordable housing programs and accomplishments through June 30, immediately preceding submittal of the report. Amival reports for the Closeout Fiscal Year (2006/2007), Interim Fiscal Year 2 (2007 /2008), and Interim Fiscal year 3 (2008/2009) (the Annual Report) must be included in the submission to the Corporation. The local SHIP administrator's tracldng system and annual reports must exactly match the information recorded in the local city or county's general ledger. SHIP administrators, therefore, are required to regularly reconcile their tracking system with the local finance department's general ledger. They should meet with the director of their finance department to create a process that will ensure compliance with the single audit act. Condition/Context The financial information included in the submitted Annual Report was not reconciled to the County's general ledger. Accordingly, we were unable to validate the amount of expenditures and program income reported in the Annual Report. Additionally, we noted approximately $192,000 of reversal entries appearing in the detail we were provided of SHIP projects completed during fiscal year 2009 and we were informed that these credits represented prior period corrections dating back as far as 2003. Questioned Costs Unknown 1002 - 1130878 187 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Cause /Effect 14B , The financial information submitted in the annual statutory reports did not agree to and was not reconciled with the general ledger. This could result in incorrect and /or inconsistent information between the reports filed and the underlying financial records and indicates that the County may not be in compliance with the provisions of the SHIP Program Manual requiring that amounts reported in the Annual Report match the amounts reported in the general ledger. Internal controls with respect to reporting were not operating effectively. Recommendation The County should implement procedures that require that the statutory reports be reconciled to the general ledger and reviewed and approved prior to being filed with the State. Additionally, should corrections to prior period expenditures be necessary, a process should be in place to ensure that such items are identified and captured on a tamely basis. Views of Responsible Officials and Planned Corrective Action Management concurs with the recommendations. Recognizing that internal attempts at completing this difficult reconciliation have fallen short of the requirement, Housing and Human Services has budgeted SHIP grant funds to receive onsite and offsite technical assistance (TA) from the Florida Housing Coalition (FHC). FHC is the technical advisor designated by the grantor agency, Florida Housing Finance Corporation. The TA will consist of reviewing current reconciliation procedures, reports and data collection and maintenance. Any suggested improvements will be implemented. As of this writing, the contract for TA is being review by Housing and Human Services and the County Attorney's Office for form and legal sufficiency. Finding 2009 -4 State Program Information Florida Housing Finance Corporation (the Corporation) State Housing Initiatives Partnership Program (SHIP) CSFA No. 52.901 1002 - 1130878 188 14B 7 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Criteria Special Test and Provisions: SHIP requires that funds be advertised before taking applications for assistance (SHIP Rule 67- 37.005 (6) (a) and (b), F.A.C.). Funds are to be advertised at least 30 days prior to taking applications. Condition/Context No advertisement was made for fiscal year 2009. Questioned Costs N/A Cause /Effect The County was not in compliance with the SHIP rules related to marketing outreach. Recommendation The County should adhere to the established SHIP rules with respect to advertising SHIP funds. Views ofResponsible Officials and Planned Corrective Action The County will adhere to the established SHIP rules. Finding 2009 -5 State Program Information Florida Department of Transportation (FDOT) State Infrastructure Bank (SIB) Loan Program CSFA No. 55.020 Criteria Reporting: Effective internal controls over reporting requirements are required to be in place. 1002 - 1130878 189 148 �7 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Condition/Context The State compliance supplement for this program and the loan agreement require the submission to FDOT of semi - annual progress reports on program and financial activities that occur each year following the award. We noted that reports for December 2008 and June 2009 were not completed or submitted to the FDOT until the time of our testing (September 2009). Questioned Costs N/A Cause /Effect The County had not been aware of the need to create the reports as the County believed any reporting requirements would be the responsibility of the FDOT. The reports were prepared and submitted by the County in September 2009 after the County was notified by FDOT that the reports had not been submitted as required. The reports were not reviewed by someone other than the preparer for accuracy and completeness. Recommendation The County should review agreements for reporting requirements and if questions arise as to party responsible for completion, the County should promptly seek written clarification from the grantor agency. Also, the County should ensure that reports are reviewed for accuracy and completeness by someone other than the preparer. Views of Responsible Officials and Planned Corrective Action Originally the SIB agreement was for road construction considered to be a local Collier County project. After the SIB agreement was executed, Federal Highway Administration (FHWA) determined that the project would become a state project due to the procurement for a Design Build Finance of I -75 (IROX). Collier's original local project became part of larger state IROX project. 1002 - 1130878 190 Collier County, Florida Schedule of Findings and Questioned Costs (continued) The Grants Coordinator made a verbal inquiry to Florida Department of Transportation (FDOT) during calendar year 2008 regarding the reporting requirements cited in the SIB agreement and was advised the report was not Collier's responsibility since the project was not let by Collier nor would any portion of the project be managed by Collier as originally anticipated. Subsequently, a report was requested by FDOT for only the most recent six month period. Collier explained to MOT that if the report was now required, all reports due during the fiscal year 2009 would need to be drafted and submitted as due diligence. All reports submitted were reviewed by the Transportation Administrator though not formally documented as such. Subsequent report reviews by the Transportation Administrator are documented before submission. Collier has no access to FDOT's financial activity or financial system which is needed to complete the report, nor does Collier receive any project status reports on a routine basis. Collier only has access to the data on the amount of loan payback which Collier disburses. This loan payment information can be populated by FDOT as well. Collier must request financial activity and project status information proactively. Requests for data from the grantor on prior year single audit reporting and CAFR data such as loan amortization schedules and project statuses to capture asset valuation has proven to be cumbersome and difficult. Future financial activity requests will be made within 10 business days after the semi - annual report period end to MOT in order to verify and obtain correct data by the submission date. The Division will prepare the report based on the information provided by FDOT. Prior to submission, the Transportation Administrator will perform a documented review. Finding 2009 -6 Federal Program Information Federal Agency /Program: U.S. Department of Transportation: Airport Improvement Program— CFDA No. 20.106 Criteria The requirements of the Davis -Bacon Act are applicable to construction work for airport development projects financed with grants under this program (49 USC 47112). Non - federal entities shall include in their construction contracts subject to the Davis -Bacon Act a requirement that the contractor or subcontractor comply with the requirements of the Davis - Bacon Act and the Department of Labor (DOL) regulations (29 CFR part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). 1002 - 1130878 191 148 4P Collier County, Florida Schedule of Findings and Questioned Costs (continued) This includes a requirement for the contractor or subcontractor to submit to the non - Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6). Condition/Context We noted a project during fiscal year 2009 that was subject to the Davis -Bacon requirements. We noted that the required prevailing wage clauses were not included in the contract and the weekly certified payrolls had not been submitted as required. We were informed that the Comity planned to obtain the certified payrolls upon project completion; however, the requirements dictate that weekly certified payrolls are to be submitted during the course of the project. Questioned Costs $183,452 Cause /Effect Internal controls with respect to compliance with Davis -Bacon Act requirements were not operating effectively and the County is not in compliance. Recommendation The County should ensure that the required prevailing wage clauses are included in all contracts subject to the Davis -Bacon Act and that the required weekly certified payrolls are obtained. Views of Responsible Officials and Planned Corrective Action In order to rectify this deficiency Airport Authority personnel will review payroll submittals and provide documentation to assure compliance with the Davis -Bacon Act. Additionally personnel will work with any consultants and purchasing to include proper language in bids and contracts. In addition our procedure manual will be updated. 1002-1130878 192 14� 1 Collier County, Florida Schedule of Prior Audit ]Findings For the Year Ended September 30, 2009 The current statics of findings reported for the years ended September 30, 2008 and 2007 related to major federal programs and state projects is as follows: Finding 20081 Federal /State Program Information Federal Agency: US Department of Housing and Urban Development (HUD) Horne Investment Partnerships Program (HOME) — CFDA No. 14.239 Community Development Block Program (CDBG) — CFDA No. 14.218 State Agency: Florida Housing Finance Corporation State Housing Initiatives Partnership Program (SHIP) — CSFA No. 52.901 Compliance Requirement: Allowable Costs Condition/Context We noted that for the majority of fiscal year 2008, the County's documentation supporting payroll allocations for employees that work on multiple grants did not meet federal standards as described in OMB Circular A -87 above. The County has used a Personnel Activity Report (PAR) to allocate payroll salaries for employees who work on multiple activities. These reports are prepared annually, at the beginning of each fiscal year, based on an estimate of the time the employees are expected to work on a grant. The PAR does not show the total activity for which an employee is compensated and does not require the employee's signature. The County's Department of Housing and Human Services (the department responsible for the administration of the HUD grants) initiated a timesheet process in fiscal year 2006 whereby employees in the department indicate the projects (HOME, SHIP, or CDBG) to which their time relates each week. These timesheets are signed by the employees and supervisors and kept in the department for internal control purposes. For the majority of fiscal year 2008, these timesheets were not provided to the County's payroll department to adjust the allocation of payroll costs from the estimate as indicated in the annual PAR form to actual time spent. Thus, there is not an "after the fact" accounting based on actual activity. 1002 - 1130878 193 Collier County, Florida Schedule of Prior Audit Findings (continued) Recommendation 14'B 71 We recommend that the County continue to use the timesheet process implemented during fiscal year 2006 whereby the employees and a supervisor sign each timesheet. In addition, the County should implement a process to provide the timesheets to the payroll department on a periodic basis to match the related payroll allocated to each grant (as based on the PAR), to the actual time spent working on the federal /state grant based on the after -the -fact timesheet, and any adjustments necessary to true -up the estimated payroll charged to the grant (based on the PAR) to the actual amount (based on the timesheets) should be made. Alternatively, the payroll department could charge payroll costs to the grants based on actual timesheets submitted weekly as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay period. PAR reports should be signed by the employee and completed at least semi - annually for those employees who work solely on one grant. Planned Corrective Action Effective July 1, 2008, all grant staff were required to complete bi- weekly timesheets indicating the amount of hours spent on each grant. This timesheet is signed by the employee and the employee's supervisor. Journal entries are then made by fiscal staff to charge actual time and effort worked to the appropriate grant. In an effort to mitigate this finding even further, effective January 1, 2009, the Human Resources department began processing bi- weekly time and effect entries for all Housing and Human Services grant staff. Staff will continue to complete their bi- weekly timesheets. The timesheets will be sent to Human Resources to enter the actual time into SAP prior to the payroll actually posting to SAP. This will allow for actual time spent to be charged directly to the appropriate grant in SAP, thereby eliminating the need to process journal entries at a later date. Current Status The proposed correction included a manual step, which was missed. Staff realized this during the first quarter of FY 2009 and revised the procedure. Effective January 17, 2009, the Human Resources Department began processing bi -weekly time and effort entries for all Housing and Human Services grant staff. Staff submits timesheets that are signed by the employee and management to fiscal staff for review. The timesheets are forwarded to Human Resources to 1002 - 1130878 194 Collier County, Florida Schedule of Prior Audit Findings (continued) enter the actual percentage of time and effort into SAP prior to payroll expenses actually posting to SAP. This will allow for "real time" charges directly to the appropriate grant in SAP, thereby eliminating the need to process journal entries at a later date. Also see current year finding 2009 -1 above. Finding 2005 -2 Federal Program Information U.S. Department of Justice State Criminal Alien Assistance Program (SCAAP) — CFDA No. 16.606 Compliance Requirement: Reporting Condition/Context In addition to overtime which appears to be allowable based on the information stated in the original finding, the County included wage benefits (i.e. incentives, training costs, retirement, group life and health insurance, and workers compensation) totaling $6.5 million in the calculation of total correctional salaries reported in the SCAAP grant application for the FY 2007 SCAAP grant. Also, the number of certified correctional officers employed during the reporting period reported in the application of 321 was overstated by 65 due to vacant positions being erroneously included in the amount submitted in the application. Recommendation We understand from the Sheriff's personnel that benefits were appropriately excluded from the FY 2008 SCAAP award application. In the future, we recommend that the Sheriff review program guidelines and contact the grantor agency if reporting criteria are not clearly stated or if clarification is needed in interpreting information contained in the program guidelines. Written documentation from the grantor agency should be retained to support any such correspondence. Additionally, a thorough review of future applications should be made in order to detect potential errors such as with respect to the number of correctional officer positions reported as noted above. 1002 - 1130878 195 Collier County, Florida Schedule of Prior Audit Findings (continued) Planned Corrective Action As stated in the recommendation, the calculation was changed for the FY2008 application. We concur with this recommendation to contact the grantor agency in writing, if reporting criteria are not clearly stated or if clarification is needed in interpreting information contained in the program guidelines. We do believe, having dealt with this grant for many years, that there have been years in which the criteria for calculation could be interpreted differently by different parties. Documentation has not always been clear in establishing guidelines. Current Status The Collier County Sheriff's Office (CCSO) continues to contact the grantor agency in writing, to clarify any uncertainty regarding grant guidelines, reporting criteria or grant related issues. Written documentation is retained to support grant applications and grant actions. The Bureau of Justice Assistance determined the unallowable costs for the FY 2006 and FY 2007 SCARP applications. The FY 2006 costs were deducted from the pending FY 2009 SCAAP award. The unallowable costs from the FY 2007 SCRAP application were returned to the Bureau of Justice Assistance from unspent funds. Finding 2008 -3 Federal Program Information Federal Agency/Program: U.S. Department of Housing and Urban Development (HUD): Community Development Block Grant / State's Program (DRI) — CFDA No. 14.228 U.S. Department of Transportation: Highway Planning and Construction Federal Transit Cluster — CFDA No. 20.500 / 20.507 Compliance Requirement: Procurement, Suspension and Debarment Condition/Context Although the County indicated that its practice is to check the EPLS system, no documentation evidencing that it had checked the EPLS was maintained, and a certification from the entity was not collected or clause or condition included in the agreements, as applicable, for certain sample transactions selected for testing. 1002 - 1130878 196 Collier County, ]Florida Schedule of Prior .Audit ]Findings (continued) Recommendation 148 7�a The County should perform the required verification by checking the EPLS (and documenting evidence of the verification, when it was performed and by whom), collecting a certification from the entity, or adding a clause or condition to the contract with that entity in accordance with the Federal requirements. Planned Corrective Action Management concurs with this finding. While the Department of Housing and Human Services (HHS) has always checked vendors against the EPLS listing; this check did not include non -profit subrecipients. As of December 2008, HHS now requires current audit reports and debarment certification letters for all subrecipients as part of the grant application submission process. Once awards are made, the assigned Grant Coordinator is responsible for checking all subrecipients, vendors and contractors against the EPLS listing. Screen prints of the EPLS listing are made to prove verification and are included in the file. Debarment and audit reports have also been included in the Master File Checklist which is included in the isle folder and reviewed by the Grants Manager. The Transportation Division has started a new procedure during FY09 where all grant related purchase orders will be approved by the Grants Coordinator. At the time of review for approval, the Grants Coordinator performs verification that the vendor has not been suspended or debarred or otherwise excluded at the EPLS website. The verification is printed and maintained in the grant procurement file. In addition, current procedures include federal clause language and a written certification for all federal transit grant procurements over $50,000. Other steps are taken by the Purchasing Department at the time of advertisement of bids and requests for proposals that include review of each project to determine if grant funding is involved and whether there are specific compliance issues related to debarment. Forms are provided to vendors requiring they certify they are not on the Excluded Parties List. Furthermore, departments managing grants have been provided a link on the Purchasing Department website to the EPLS website so they can complete their own verification. Current Status Collier County will apply currently enacted controls and measures operating effectively in one division to agency -wide to ensure compliance. Also see finding 2009 -2 above. 1002- 1130878 197 14B J Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 20084 Federal Program Information U.S. Environmental Protection Agency Capitalization Grants For Drinking Water State Revolving Funds (SRF) — CFDA No. 66.468 Compliance Requirement: Allowable Costs ConditionlContext We reviewed all of the invoices supporting the loan expenditures reported and noted two invoices for consulting services dated in August2008 totaling $12,942 included in the August 28, 2008 disbursement request that had not been reviewed and approved by the related Project Manager prior to seeking reimbursement under the loan program. We did not identify any discrepancies or exceptions in our compliance testing. Recommendation We recommend that all invoices be properly reviewed and approved to ensure that they are allowable costs prior to being charged to the loan program. Planned Corrective Action Public Utilities initiated a procedure for grants in December 2008 that now includes adding the Accounting Technician's name to the SRF transmittal sheet. The Accounting Technician verifies whether all the invoices are properly approved and are paid. After this approval, it goes to the Project Manager, Director and the Administrator for approval of the disbursement request. Current Status The procedure noted above continues to be in effect. 1002 - 1130878 198 a�f j Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 2005 -5 State Program Information Florida Housing Finance Corporation (the Corporation) State Housing Initiatives Partnership Program (SHIP) CSFA No. 52.901 Compliance Requirement: Reporting ConditionlContext The financial information included in the submitted Annual Report was not reconciled to the County's general ledger. Accordingly, we were unable to validate the amount of expenditures and program income reported in the Annual Report. Recommendation The County should implement procedures that require that the statutory reports be reconciled to the general ledger and reviewed and approved by finance department staff prior to being filed with the State. Planned Corrective Action The Department of Housing and Human Services recognizes the importance of reconciling statutory reports, internal staff reports, and the general ledger. Procedures were implemented following the FY07 audit. While these procedures greatly improved the accuracy and accountability of the statutory and internal staff reports, they did not account for the point -in- time nature of the statutory reports. To effectively control for, and document, the complete reconciliation of the statutory reports and general ledger, the Department of Housing and Human Services will produce a "screen shot" from within the general ledger software (SAP) to be included with the statutory report. The purpose of this activity is to document the status of funds during the reporting timeframe. Prior to submitting statutory reports, the Department of Housing and Human Services will provide a copy of the report to the Cleric of Courts Finance Department for review. Approval of the statutory report lies with the Board of County Commissioners. 1002 - 1130878 199 M � Collier County, Florida Schedule of Prior Audit Findings (continued) Current Status Recognizing that internal attempts at completing this difficult reconciliation have failed, Housing and Human Services has budgeted SHIP grant fiends to receive onsite and offsite technical assistance (TA) from the Florida Housing Coalition (FHC). FHC is the technical advisor designated by the grantor agency, Florida Housing Finance Corporation. The TA will consist of reviewing current reconciliation procedures, reports and data collection and maintenance. Any suggested improvements will be implemented. As of this writing, the contract for TA is being review by the Housing and Human Services and the County Attorney's Office for form and legal sufficiency. Also see finding 2009 -3 above. ]Finding 2005 -6 Federal Program Information U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant / State's Program (DRI) CFDA No. 14.228 Compliance Requirement: Reporting Condition/Context This federal grant is passed through to the County from the State of Florida, Department of Community Affairs (the Department). The grant agreement between the Department and the County sets forth various reporting requirements. We noted that the County completed the required reports, as applicable, during fiscal year 200'8, and we did not note any discrepancies. However, there was no evidence that a review as to accuracy and completeness took place for certain reports submitted to the Department (i.e. Contractual Obligation and MBE Report, Projection of Contract Payments Form and Disaster Quarterly Status Report). Recommendation The County should implement procedures whereby review by someone other than the preparer is obtained to help ensure completeness and accuracy of the reports submitted to the Department. Such reviews and approvals should be documented to evidence that the review tools place. 1002 - 1130878 200 1148 7 Collier County, Florida Schedule of Prior Audit Findings (continued) Planned Corrective Action The Department of Housing and Human Services has implemented procedures to ensure all reports are reviewed for accuracy prior to submission to the Department of Community Affairs. Once prepared, reports are reviewed for errors and/or omissions by the Housing Manager. Once approved as accurate, the Housing Manager signs the report to indicate completed review. Copies of signed reports are maintained by staff of the Department of Housing and Human Services. Current Status The Housing Manager reviews, signs and approves as accurate, all reports prior to submission to the Florida Department of Community Affairs. Signed copies are maintained in program files. Finding 2007 -05 Federal Program Information U.S. Department of Transportation Highway Planning and Construction CFDA Number: 20.205 Condition/Context The same individual is responsible for both completing and approving the reimbursement requests. The grant coordinator prepares the reimbursement requests and submits them to the grantor agency for reimbursement. However, there is no review of the reimbursement requests by someone other than the preparer for completeness and accuracy. Recommendation The County should ensure review and authorization by someone other than the preparer is obtained in order to properly segregate the duties of requesting and approving reimbursement requests, and to help ensure completeness and accuracy of the requests. Such reviews and approvals should be documented to evidence that the review tools place. Planned Corrective Action The following actions will be implemented. 1002- 1130878 201 14B 7 Collier County, Florida Schedule of Prior Audit Findings (continued) All grant reimbursement requests will be reviewed by the appropriate Official(s). For all LAP funded highway projects, the Grants Coordinator will prepare the reimbursement request. The Operations Manager will review and approve the request prior to submission to the grantor and Finance. The Operations Manager's review will be documented to provide an audit trail to demonstrate segregation of duties. For all grants other than LAP, invoices /reimbursement requests will be developed and /or approved by the appropriate project manager and forwarded to the Grants Coordinator for review, approval and processing. The Grants Coordinator will provide Finance a copy of the grant invoices /reimbursement requests with all reconciliation documentation attached the same day the request is submitted to the grantor. Payments from the grantor will continue to be received by the Finance Department. Current Status The Grants Coordinator /Budget Analyst ensures all LAP reimbursement requests have a documented review by the Operation's Manager. In absence of the Operation Manager, the Division Administrator serves as backup. The reimbursement request process identified in the corrective action plan was put into place late 2007 and continues to be followed. Finding 2007 -06 State Program Information Florida Department of Environmental Protection Statewide Surface Water Restoration and Wastewater Projects CFSA Number: 37.039 Condition/Context The project's grant agreement required that a final report be submitted to the South Florida Water Management District (the "District," pass though entity) by August 1, 2007 to provide a final summary of the project. The final report to the grantor agency indicated "Scheduled Value" for the deliverables totaling $16.5 million. The County was not able to provide support for or reconcile this total to the expenditures for the project as recorded in the general ledger system. However, we were able to agree the District's cost share in the final report to the grant agreement and we noted that the expenditures in the general ledger system and in the final report were significantly higher than the District's cost share under the grant agreement. 1002- 1130878 202 Collier County, Florida Schedule of Prior Audit Findings (continued) Recommendation 14B 7 The County should implement procedures to ensure that reports are completed properly and that adequate supporting documentation is maintained. Additionally, a more organized /systematic approach should be taken to better identify specific project expenditures to be wholly or partially reimbursed by a grantor agency vs. other general project expenditures. Planned Corrective Action At the completion of the project (actually four different projects combined under CFSA Number: 37.039), staff recorded that the incurred costs were equal to the original costs projected in the grant. In fact, the actual costs incurred were greater than anticipated in the grant. As a result, since actual costs exceeded the costs projected in the grant, staff felt that this satisfied the grant agreement. For the current year and going forward, the Public Utilities Engineering Department Grant Coordinator will write and submit all interim and final project reports to the grantor, with guidance on the exact project status from the respective project manager. The Coordinator will maintain all project documents for each grant. Invoices and payment receipts for grant reimbursements are issued by the Utility Billing and Customer Service section of Public Utilities. Finally, an Excel spreadsheet will be created to track and identify expenditures associated with purchase order numbers by grant task. Current Status The procedures noted above continue to be maintained. Finding 200707 Federal Program Information U.S. Department of Justice State Criminal Alien Assistance Program (SCAAP) CFDA Number: 16.606 1002 - 1130878 203 Collier County, Florida T 1 Schedule of Prior Audit Findings (continued) Condition/Context In addition to overtime which appears to be allowable, the County included wage benefits (i.e. incentives, training costs, retirement, group life and health insurance, and workers compensation) totaling $5.2 million in the calculation of total correctional salaries reported in the SCARP grant application for the FY 2006 SCRAP grant. Recommendation The Sheriff should review program guidelines and contact the grantor agency if reporting criteria are not clearly stated or if clarification is needed in interpreting information contained in the program guidelines. Written documentation from the grantor agency should be retained to support any such correspondence. Views of Responsible Officials and Planned Corrective Action The Collier County Sheriff's Office (CCSO) concurs with this recommendation to contact the grantor agency in writing, as is CCSO's practice, if reporting criteria are not clearly stated or if clarification is needed in interpreting information contained in the program guidelines. Written documentation from the grantor agency will be retained, as CCSO normally does, to support any such correspondence. The Collier County Sheriff's Office has received SCARP awards every year since 1997. SCAAP guidelines are followed regarding all application submission requirements and eligible and ineligible application inclusions. Questions arise when SCAAP Guidelines and SCAAP online application forms have used different verbiage. The Bureau of Justice Assistance' Grant Management System (GMS) has a "SCRAP HELP" link in its SCAAP application site that is available for applicant clarification or to resolve conflicting statements. SCAAP HELP refers grantees directly to the applicable year's State Criminal Alien Assistance Program Guideline for proper direction in resolving questionable grant rules to follow for or in the grant application. The SCARP Guidelines clearly state if a cost is eligible or ineligible. For example the FY 2006 SCAAP Guidelines clearly indicate in the "Correctional Officer Definition" who does and does not qualify for inclusion in the officer count. 1002 - 1130878 204 14B 74 Collier County, Florida Schedule of Prior Audit Findings (continued) The "FY 2006 SCAAP Guidelines" with respect to the "Correctional Officer Salary Calculation" is included in the audit Criteria section above. There is no reference to benefits not being eligible for inclusion in the "actual salary expenditures" for the application reporting period. The 2006 SCAAP Guidelines are silent about benefits and management believes that it was reasonable to include them in the calculation. We do not believe it is logical for benefits to be an allowable cost for only one year (FY2005) and then to revert back to years prior to 2005. When comparing the above referenced SCAAP 2006 Guidelines Correctional Officer Salary Calculation section to the SCAAP 2005 Guidelines Correctional Officer Salary Calculation section, commencing in 2005, benefits are allowable inclusions in the correctional officer salary calculation. No SCAAP Guideline after 2005 states that benefits are excluded. The CCSO maintains DOJ /BJA did not exclude benefits in SCAAP Guidelines after 2005 and that SCAAP 2005 Guidelines supersede 2002 SCAAP Frequently Asked Questions about the eligibility of the inclusion of benefits-in the SCAAP 2006 corrections officer salary calculation. FY 2005 SCAAP Guidelines indicates the following with respect to the "Correctional Officer Salary Calculation:" "Salary information reported in the SCAAP application must reflect the total salaries and wages paid to full- and part -time correctional officers and others who meet the SCAAP definition. The reported sum should total the jurisdiction's actual salary expenditures for the applicable reporting period, not a projection, estimate, or average. Correctional officer salary costs may include premium pay for specialized service (e.g., bilingual officers), shift differential pay, and fixed -pay increases for time in service. It may also include employee benefits and overtime required by negotiated contract, statute, or regulation (e.g., union agreements, contractual obligations, required post staffing minimums, etc). Office of Management and Budget (OMB) Circular A -87 (www.whitchouse.gov /omb/ circulars /a087 /toc.htn l) provides general guidance on how benefits are defined for units of government." To correct any possible questionable DOJ/BJA verbiage in the future, however, management will request written clarification, as it normally does, from the DOJ/BJA when there is an unclear SCAAP directive, contradiction, or what appears to be an omission in SCAAP Guidelines and not depend on SCAAP Guidelines to be complete. Nonetheless, there is a duty on the part of the grantor agency (DOJ /BJA) to explicitly state and include specific language in the SCAAP Guidelines each year about what costs are eligible and ineligible for application content. Suppressing words in SCAAP Guidelines by DOJ /BJA does not indicate benefit eligibility exclusion. It should also be noted that grantees and auditors are not privy to the numbers DOJ /BJA uses in the formula to calculate and determine SCAAP awards which are only partial 1002- 1130878 205 ■ Collier County, Florida Schedule of Prior Audit Findings (continued) reimbursement for the costs associated with the control and custody of criminal illegal aliens. Grantees must interpret grantor developed applications that may omit important application sections that would offer both the grantor and the grantee with application field options to indicate what is in compliance with grantor guidelines (e.g., a separate field for wages, a separate field for fringe benefits, a separate field for overtime). Also, there is the concept of fixed compensation that is not addressed as eligible or ineligible by DOJ /BJA in their SCAAP Guidelines, and would be applicable to grantees nationwide since fixed compensation includes all benefits. This would mean that DOJBJA would be obligated, unless explicitly stated about what would be ineligible, to include wages, fringe benefits, and overtime in actual salary expenditures. Management believes the intent of the SCRAP 2005 Guidelines was there to continue to permit the inclusion of benefits in the correctional officer salary calculation since DOJ/BJA did not state otherwise in writing. Current Status The Collier County Sheriff's Office (CCSO) continues to contact the grantor agency in writing, to clarify any uncertainty regarding grant guidelines, reporting criteria or grant related issues. Written documentation is retained to support grant applications and grant actions. The Bureau of Justice Assistance determined the unallowable costs for the FY 2006 and FY 2007 SCAAP applications. The FY 2006 costs were deducted from the pending FY 2009 SCAAP award. The unallowable costs from the FY 2007 SCAAP application were returned to the Bureau of Justice Assistance from unspent funds. Finding 2007 -08 Federal/State Program Information Schedule of Expenditures of Federal Awards and State Financial Assistance Projects Condition/Context The Schedule of Expenditures of Federal Awards and State Financial Assistance Projects (the Schedule) provides total federal and state financial assistance project awards expended for each individual federal and state program. Various revisions were required from the original Schedule to the final Schedule due to errors and/or omissions that were identified by the County throughout the reconciliation process which extended for several months or through inquiries we posed in relation to specific grants or variances from prior year amounts. We were also notified of a communication the County recently received from a grantor agency indicating that certain prograrns were not reported in the Schedule in prior years. 1002 - 1130878 206 Collier County, Florida Schedule of Prior Audit Findings (continued) Recommendation 148 71 The County should implement additional procedures and internal controls to ensure the information used to develop the Schedule is accurate and complete and submitted on a timely basis. Planned Corrective Action The County will review its current policies, processes and procedures. Additional procedures and internal controls will be developed and implemented to monitor the information used to develop the Schedule for grants and aid programs. A major consideration will be a central coordination point for the processing and control of reporting requirements. Current Status A cross agency team was established to examine the underlying issues involved and develop a process to assure accurate information is provided for the Schedule of Expenditures. That team identified a method for all those managing grants to identify and validate the expenditure information, using a spreadsheet approach and a quarterly reconciliation to the official financial records. In addition, the process involved providing this information to a central person in order to Deep current with required information. The new process was implemented in July 2009 and the first reports were due in August for the interim audit. The quarterly process formally started in mid- October for reporting of the full fiscal year expenditures. Additionally, an intense effort to implement a Grant Management System integrated with the County's project management (RPM) and financial management system (SAP) began in June 2009. The goals of the new system are to standardize and streamline grants management processes and share grants information with all internal stakeholders. This solution will enforce agency wide commonality and eliminate data entry redundancies by integration with the core financial system. The new system went live on December 11, 2009. All new grants will be maintained in this system, allowing much easier access to expenditure information for future reporting. All other previously awarded grants will continue to have expenditure information reported using the previously described spreadsheet process. Finally, the County Grants Office continues to provide training as necessary and uses the Grant Manual issued in 2007 to provide ongoing one -on -one instruction on proper grant management. 1002 - 1130878 207 148 71 Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 2007 -09 Federal Program Information U.S. Department of Housing and Urban Development Home Investment Partnerships Program (HOME) CFDA No. 14.239 Condition/Context While the County has a broad standard of monitoring subrecipients, outlined in the One -Year Action Plan, they do not have detailed policies and procedures in place to early out such monitoring. We selected two of the three subrecipients (Big Cypress, Inc. and Collier County Housing Authority -CCHA) to which HOME funds were disbursed during the fiscal year. At the time we performed our testing, we noted Collier County had not obtained or reviewed the audit reports for either subrecipient during the year. County staff subsequently obtained the audit reports. We also noted that there was no evidence of the monitoring (phone, desk or onsite reviews) as described by the One -Year Action Plan, approved by HUD. Recommendation We recommend that management document and implement the policies and procedures required to properly monitor subrecipients, and that management keep records to evidence such monitoring. Planned Corrective Action Staff performs extensive desk and phone monitoring of all subrecipients. Desk monitoring occurs during the receipt, analysis and processing of each payment request and phone monitoring occurs on an ongoing basis. In addition, subrecipients provide a monthly status report on projects which is a type of monitoring. Annual audits are requested from each subrecipient and those noted in the finding have been received and placed in their files. Management will, however, document and implement more detailed policies and procedures regarding monitoring and ensure that accurate records are kept as evidence of project monitoring. Details should include dates of phone and desk monitoring, items covered and any follow -up needed. 1002 - 1130878 208 Collier County, Florida Schedule of Prior Audit Findings (continued) Current Status 146 71 Annual requests for audit reports and debarment letters continue to be issued. In the January - February timeframe of each year staff reviews each open file to ensure current documents are included in all project files. As stated previously, debarment letters and audit reports are now part of the application process for all new requests for funding. The section master calendar has proved an invaluable tool for ensuring compliance is completed correctly and in a timely manner. Screen shots of EPI,S status continued to be included in all project files. Finding 2007 -10 Federal Program Information U.S. Department of Housing and Urban Development Home Investment Partnerships Program (HOME) CFDA No. 14.239 Condition/Context During our testing of the HOME grant and review of the participants' files that were selected for eligibility testing, we noted that one participant to whom HOME funds were provided during the year was assigned an incorrect file number and was actually a participant for the CDBG. Recommendation We recommend that management review monitoring controls to ensure that participants are charged to the correct program and that any errors are identified and corrected. Planned Corrective Action 1) A journal entry will be processed to post the expenditure to the proper fund account. 2) Controls over data entry will be reviewed, and if necessary, revised. 1002 - 1130878 209 Collier County, Florida Schedule of Prior Audit Findings (continued) Current Status 14B 70 This finding has been resolved as each fiscal staff member responsible for signing off on expenditures has been given a list of all account expenditures codes for HOME and CDBG and has been instructed to compare the account string on the request for payment, to the account string on the master account list. They have also been instructed to place a check marls or initials next to the account string on the request for payment to ensure that it has been verified. Finding 2007 -11 Federal /State Program Information Federal Agency: US Department of Housing and Urban Development (HUD) Home Investment Partnerships Program (HOME) — CFDA No. 14.239 Community Development Block Program (CDB G) — CFDA No. 14.218 State Agency: Florida Housing Finance Corporation State Housing Initiatives Partnership Program (SHIP) — CSFA No. 52.901 Condition/Context We noted that the County's documentation supporting payroll allocations for employees that work on multiple grants did not meet federal standards as described in OMB Circular A -87. The County uses a Personnel Activity Report (PAR) to allocate payroll salaries for employees who work on multiple activities. These reports are prepared annually, at the beginning of each fiscal year, based on an estimate of the time the employees are expected to work on a grant. The PAR does not show the total activity for which an employee is compensated and does not require the employee's signature. The County's Department of Housing and Human Services (the department responsible for the administration of the HUD grants) initiated a timesheet process in FY 2006 whereby employees in the department indicate the projects (HOME, SHIP, or CDBG) to which their time relates each week. These timesheets are signed by the employees and supervisors and kept in the department for internal control purposes. These timesheets are not provided to the County's payroll department to adjust the allocation of payroll costs from the estimate as indicated in the annual PAR form to actual time spent. Thus, there is not an "after the fact" accounting based on actual activity. 1002 - 1130878 210 148 '/ Collier County, Florida Schedule of Prior Audit Findings (continued) Also, we noted a salaried employee in our sample for the CDBG program whose payroll is allocated 100% to the grant; however, semi - annual certifications were not completed as described above. Recommendation We recommend that the County continue to use the timesheet process implemented during fiscal year 2006 whereby the employees and a supervisor sign each timesheet. In addition, the County should implement a process to provide the timesheets to the payroll department on a periodic basis to match the related payroll allocated to each grant (as based on the PAR), to the actual time spent working on the federal /state grant based on the after -the -fact timesheet, and any adjustments necessary to true -up the estimated payroll charged to the grant (based on the PAR) to the actual amount (based on the timesheets) should be made. Alternatively, the payroll department could charge payroll costs to the grants based on actual timesheets submitted weekly as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay period. PAR reports should be signed by the employee and completed at least semi- annually for those employees who work solely on one grant. Planned Corrective Action 1) Housing and Human Services Department will work with Human Resources Payroll staff regarding the SAP module for time tracking to develop a process that will enable us to charge the actual time incurred by the employee (after the fact) to a grant versus projected budgeted allocation based on the PAR. 2) Housing and Human Services staff will continue utilizing the timesheet documentation process developed in FY 2006. 3) Management will review the timesheets quarterly and compare them against cost allocations to make adjustments accordingly. 4) The PAR forms will be revised to accommodate employee's signature. 5) Departmental policies and procedures will be revised to reflect changes. 1002- 1130878 211 Collier County, Florida Schedule of Prior Audit Findings (continued) Current Status This finding continued in FY 2009. The procedure implemented in FY 2008 included a manual step which was missed. Effective January 17, 2009, the Human Resources Department began processing bi- weeldy time and effort entries for all Housing and Human Services grant staff. Staff submits timesheets that are signed by the employee and management to fiscal staff for review. The timesheets are forwarded to Human Resources to enter the actual percentage of time and effort into SAP prior to payroll expenses actually posting to SAP. This will allow for "real time" charges directly to the appropriate grant in SAP, thereby eliminating the need to process journal entries at a later date. Finding 2007 -12 Federal Program Information U.S. Department of Housing and Urban Development Home Investment Partnerships Program (HOME) CFDA No. 14.239 Condition/Context The HOME Match Report was not submitted for fiscal year 2007. The County was not aware that this report was required, and did not meet any of the exemption criteria. In addition, the records used to track the HOME match contributions are not in accordance with 24 CFR 92.504. The tracking spreadsheet utilized by the County shows the matching contributions by program but does not indicate the exact amount that was contributed. There is no clear indication in the spreadsheet as to the date the contribution was made to the program and we were unable to validate the amount contributed from the spreadsheet to the general ledger as there are no index numbers or dates in the spreadsheet. In addition, the spreadsheet is not reviewed to ensure compliance with the matching requirements. Upon drawdown of entitlements the County is required to input the match contributed to the project to HUD's Integrated Disbursement and Information System (IDIS), however, IDIS is unable to generate a report that identifies the matching previously submitted. 1002 - 1130878 212 Collier County, Florida Schedule of Prior Audit Findings (continued) Recommendation 1 9 4 B 7 We recommend that the County /Department of Housing and Human Services review HOME program guidelines and provide the program managers with the reporting and recordkeeping requirements. The County should implement a tracking system to ensure reporting requirements are being met. The County should improve its method of tracking matching contributions to support the amounts reported in IDIS (including source of funding: index numbers to trace source to general ledger) and the general ledger. Planned Corrective Action 1) Housing and Human Services (HHS) staff will review the HOME program guidelines to further understand the HOME match requirements. 2) HMS staff has recently developed a tracking system to track the HOME match contributions in compliance with 24 CFR 92.504 which is an improvement to the current tracking mechanism,. 3) The HOME Match Report (HUD- 40107 -A) will be completed by September 30 of each year and included in the Consolidated Annual Performance and Evaluation Report (CAPER). 4) Departmental policies and procedures will be revised to reflect the changes made. Current Status HHS staff requested and received technical assistance from the HUD Miami Field Office on completing the HOME Match Log. The HOME match log continues to be completed and submitted as an integrated part of the Consolidated Annual Performance and Evaluation Report (CAPER). As part of the preparation of the CAPER a milestone timeline is now included to ensure compliance in all aspects of the CAPER; the tasking for review and accuracy of the HOME match report is now an integrated part of the CAPER timeline. Finding 2007 -13 Federal Program Information U.S. Department of Housing and Urban Development Home Investment Partnerships Program (HOME) CFDA No. 14.239 1002 - 1130878 213 Collier County, Florida Schedule of Prior Audit Findings (continued) Condition/Context The County did not submit Form HUD 60002 during the program year. The program received a grant of which $200,000 went to a subrecipient, Big Cypress, to provide financial assistance with the construction of low - income housing. Recommendation We recommend that the County /Department of Housing and Human Services review HOME program guidelines and provide the program managers with the reporting requirements. The County should implement a tracking system to ensure reporting requirements are being met. Planned Corrective Action Housing and Human Services will review the HOME program guidelines and update our checldist to ensure that the Section 3 reports are completed as indicated. Whenever a subrecipient receives $200,000 or more in CDBG or HOME assistance as it relates to construction, a Section 3 form will be included in the award package and completed. The report will be sent to the field office by the deadline required. Current Status HHS staff has attended Section 3 training presented by the HUD Miami Field Office to better understand the reporting requirements for Section 3. Inclusion of Section 3 reporting into the CAPER timeline assignments /requirements continues to work well as an internal control. Finding 2007-14 State Program Information Florida Housing Finance Corporation (the Corporation) State Housing Initiatives Partnership Program (SHIP) CSFA No. 52.901 1002 - 1130878 214 Collier County, Florida Schedule of Prior Audit Findings (continued) Condition/Context The financial information included in the submitted Annual Report was not reconciled to the County's general ledger. Accordingly, we were unable to validate the amount of expenditures reported in the Annual Report. Additionally, we noted that there were no amounts reported for "program income (interest)" for the 2004/2005 and 2005/2006 grant award periods, however, interest was earned on the unspent portion of the respective advances and should have been reflected as program revenue. Recommendation The County should implement procedures that require that the statutory reports be reconciled to the general ledger and reviewed and approved by finance department staff prior to being filed with the State. The County should also establish a separate general ledger account or index code for each entitlement year for interest income and ensure that interest income is appropriately captured, reported, and expended as appropriate. Planned Corrective Action The HHS staff will perform a reconciliation of SHIP transactions monthly to ensure that the Annual SHIP report tracks to the SHIP annual report. This is a new procedure that was just implemented. The SHIP grant support specialist will run reports at the end of each month and reconcile those transactions to the activity in the SHIP spreadsheet. These reports are maintained throughout the year and are expected to greatly improve staff's ability to reconcile with the general ledger when preparing the SHIP Annual Report. Current Status The above "Planned Corrective Action" was not a sufficient control to ensure that statutory reports reconciled to the general ledger. Housing and Human Services has budgeted SHIP grant funds to receive onsite and offsite technical assistance (TA) from the Florida Housing Coalition (FHC). FHC is the technical advisor designated by the grantor agency, Florida Housing Finance Corporation. The TA will consist of reviewing current reconciliation procedures, reports and data collection and maintenance. Any suggested improvements will be implemented. As of this writing, the contract for TA is being review by the Housing and Human Services and the County Attorney's Office for form and legal sufficiency. 1002 - 1130878 215 14B 7 Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 2007 -15 Federal Program Information U.S. Department of Housing and Urban Development (HUD) Community Development Block Program (CDBG) CFDA No. 14.218 ConditionlContext The County did not maintain documentation indicating that it had checked the EPLS for subawards to subrecipients. Additionally, there was no certification from the entity or clause or condition included in subrecipient agreements. Recommendation The County should perform verification of subrecipients by checking the EPLS (and documenting evidence of the verification, when it was performed and by whom), collecting a certification from the entity, or adding a clause or condition to the contract with that entity in accordance with the Federal requirements. Planned Corrective Action HHS has reviewed the debarment status of every contractor and sub - contractor working on construction projects in the EPLS system. The department will add debarment certification criteria to the application process for each sub - recipient. No contract will be executed with a sub - recipient until debarment review for that entity is performed. The debarment certification will be added to our checklist for the project file. Current Status Collier County will apply currently enacted controls and measures operating effectively in one division to agency -wide to ensure compliance. 1002 - 1130878 216 a Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 2007 -16 Federal Program Information U.S. Department of Housing and Urban Development (HUD) Community Development Block Program (CDBG) CFDA No. 14.218 Condition/Context The Form 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low - Income Persons submitted by the County on January 18, 2008 for the reporting period of July 1, 2006 to June 30, 2007 specified that the total amount of award was $2,400,655. However, this award amount relates to the 2007 -2008 entitlement for the program year that began on July 1, 2007. Accordingly, it appears that the incorrect award was used to complete this report. The expenditures reported in the C04PR26 — CDBG Financial Summary report for the period of July 1, 2006 through June 30, 2007 based on the IRIS system had not been appropriately reconciled to the County's general ledger. Recommendation The County should implement procedures that require that financial reports extracted from IDIS be reconciled to the general ledger and reviewed and approved by appropriate staff on a timely basis. Evidence of the reconciliation and of the review should be documented and retained. Performance reports should be thoroughly reviewed for accuracy and completeness before they are submitted. Planned Corrective Action 1) Housing and Human Services (HHS) staff will review the HUD program guidelines regarding report submission requirements. 2) HHS staff is in the process of development a reporting calendar whereas all HUD reports will be submitted in a timely manner. 3) Report Form 60003, Section 3 Summary Report will be completed and submitted prior to the deadline of September 30 of each year. 1002 - 1130878 217 Collier County, Florida Schedule of Prior Audit Findings (continued) Current Status M itU Responsibility to ensure correct year data for the Section 3 Summary Report has been assigned as a coordinated effort to the Grant Section's Operations Coordinator and the Accountant. The Operations Coordinator is responsible for producing proof of award amount for each subrecipient award and the Accountant is responsible for ensuring the general ledger accurately reflects the award amount. The Accountant is responsible for completion of the CO4PR26. A department master calendar was created and HUD report deadlines and other important deadlines are listed and reviewed by the Grants Operations Manager and the Department Director. The Section 3 report was completed and submitted on time. 1002 - 1130878 218 747111511i, 11, jp1 l� "I Year Ended September 30, 2010 148 7 The Comprehensive Annual Financial Report (CAFR) is prepared each year by the Cleric of the Circuit Court on behalf of Collier County government. On the cover: The map of Collier County, located in southwest Florida, with representations of many aspects of what goes into creating a comprehensive financial report. Source: Florida Center for Instructional Technology, Exploring Florida Maps (Tampa, FL: University of South Florida, 2008) Map Credit: Florida Center for Instructional Technology, University of South Florida. COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2010 COLLIER COUNTY, FLORIDA FRED W. COYLE, CHAIRMAN v DISTRICT 4 FRANK HALAS, VICE- CHAIRMAN — DISTRICT Z DONNA L. FIALA —DISTRICT 1 THOMAS K. HENNING — DISTRICT 3 JAMES N. COLETTA, Jr. — DISTRICT 5 COUNTY MANAGER LEO E. OCHS, Jr. COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND CHIEF FINANCIAL OFFICER DWIGHT E. HROCK DIRECTOR OF FINANCE AND ACCOUNTING CRYSTAL K. KINZEL Prepared by the Finance and Accounting Department i48 74 THIS PAGE INTENTIONALLY LEFT BLAND r 0 Q% m - V O u y� N Lp N V C O mUe w oco N p0 ` uNf ra- N vN1 a N T O. C C 6 U 6 c � T a a c o° o m v � a c c m o pEp o �pp m � a as 8ZE V tV V C a d `oar 'v m m = ap+ 0 L mi m � C N C � C - O a J V Y p� y tNlN� � U N 6 ~ Y Env v K L N C H Y O V � N Q t0 {3 c c o Q 6 t A NNN VO C N J lg o a w O Q E a Y ^ m IJ Q N Y C � � 3 a VT y ` � 0 T _ pnj a a y o 0 a Z v! � m � c c h � tL d N W O m 6 C U � v m cmm 8rq9 m N '^ « � c m d 4 W a C E $ E 8 a O U E v 2 c E o 0 a V 14B 71 m N E is N N v L c o m ¢ N O - E° o 2 C m� o c E N mt M umai m° a c c a a o Spa x C p O C ' O w C E c o_ E O N a ry I� LO 9 E G m C m 0 u1 �m zZ VC O U O Y D ti- O T o` C a W 0 wm d z o a E 'g c m o O N v L c o m ¢ N O - a C d a LE S C m� o c E N `o — m o Spa x m c a maE m N =p NS O c O H 0 m 'pE w J � m ¢ N O m a C d a LE S C m� o c E N `o — m o Spa u C p O C ' O w C E c Q J O N a ry I� LO 9 ts ol o E L° d � a c o O � m a C m� o c E N m Spa �w�EaoY" E c Q J COLLIER COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT � , B 7 YEAR ENDED SEPTEMBER 30, 2010 TABLE OF CONTENTS INTRODUCTORY SECTION Page TransmittalLetter ............................................................................................................................................ ............................... i Certificateof Achievement ........................................................................................................................... ............................... vii FINANCIAL SECTION Report of Independent Certified Public Accountants .................................................................................. ............................... 1 Management's Discussion and Analysis ( Unaudited) .................................................................................. ............................... 3 Basic Financial Statements: Statementof Net Assets .......................................................................................................................... ............................... 14 Statementof Activities ............................................................................................................................... .............................16 BalanceSheet —Governmental Funds .................................................................................................... ............................... 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ............ ............................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances— Governmental Funds .............. .............................20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Fundsto the Statement of Activities ................................................................................................ .............................21 General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Non -GAAP) .................................................................................................................................... ............................... 22 Community Redevelopment - Statement of Revenues, Expenditures and Changes in Fund Balances — Budgetand Actual ( Non- GAAP) .............................................................................................................. ............................... 25 Statement of Net Assets — Proprietary Funds ............................................................................................ .............................26 Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds ...................... .............................28 Statement of Cash Flows — Proprietary Funds ........................................................................................... .............................29 Statement of Fiduciary Assets and Liabilities — Agency Funds .................................................................. .............................31 Notesto the Financial Statements ............................................................................................................. .............................33 RequiredSupplementary Information ........................................................................................................... .............................74 Combining and Individual Fund Financial Statements: Nonmaior Governmental Funds CombiningBalance Sheet ................................................................................................................................ .............................80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................... .............................90 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non- GAAP) .............100 Nonmaior Enterprise Funds CombiningStatement of Net Assets ........................................................................................................... ............................... 124 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ...................................... ............................... 125 CombiningStatement of Cash Flows ............................................................................... ............................... ............................126 Internal Service Funds CombiningStatement of Net Assets ........................................................................................................... ............................... 130 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ...................................... ............................... 131 CombiningStatement of Cash Flows .......................................................................................................... ............................... 132 Fiduciary Funds Combining Statement of Fiduciary Assets and Liabilities ........................................................................... ............................... 136 Combining Statement of Changes in Assets and Liabil ities ............................................. ............................... ............................137 Component Units CombiningStatement of Net Assets ........................................................................................................... ............................... 140 Combining Statement of Revenues, Expenditures and Changes in Net Assets .............. ............................... ............................141 COLLIER COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT � 4 B 70 YEAR ENDED SEPTEMBER 30, 20,0 TABLE OF CONTENTS e CONTINUED STATISTICAL SECTION (UNAUDITED) NetAssets by Component ................................................................................................ ............................... ............................144 Changein Net Assets ................................................................................................................................... ............................... 145 Governmental Activities Tax Revenues by Source .......................................................... ............................... ............................148 Fund Balances of Governmental Funds ...................................................................................................... ............................... 149 Changes in Fund Balances of Governmental Funds ................................................................................... ............................... 150 Assessed Value and Estimated Actual Value of Taxable Property ............................................................. ............................... 152 Property Tax Rates —All Direct and Overlapping Governments ................................................................ ............................... 153 PrincipalTax Payers County -Wide .............................................................................................................. ............................... 154 PropertyTax Levies and Collections ............................................................................................................ ............................... 155 Ratiosof Outstanding Debt by Type ........................................................................................................... ............................... 156 Ratios of General Bonded Debt Outstanding ............................................................................................. ............................... 157 LegalDebt Margin Information ................................................................................................................... ............................... 158 Direct and Overlapping Governmental Activities Debt .............................................................................. ............................... 158 Pledged- Revenue Coverage ........................................................................................................................ ............................... 159 Demographic and Economic Statistics ........................................................................................................ ............................... 160 PrincipalEmployers ..................................................................................................................................... ............................... 161 Full -Time Equivalent County Employees by Function ................................................................................ ............................... 162 Operating Indicators by Function ............................................................................................................... ............................... 163 Capital Asset Statistics by Function ............................................................................................................. ............................... 164 SINGLE AUDIT /SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ...............167 Report of Independent Certified Public Accountants on Compliance With Requirements Applicable to Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB Circular A -133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General. ................................... 169 Schedule of Expenditures of Federal Awards and State Projects ................................... ............................... ............................172 Notes to the Schedule of Expenditures of Federal Awards and State Projects .............. ............................... ............................178 Schedule of Findings and Questioned Costs .................................................................... ............................... ............................181 Scheduleof Prior Audit Findings ...................................................................................... ............................... ............................197 14B 7 THIS PAGE INTENTIONALLY LEFT BLANK Dwight E. Brock Clerk of Courts March 8, 2011 CLEF OF T14E G. COLLIER COUNTY 3299 TAMTAIVII TRAIL NAPLES, FLOF To the Citizens and ' Members of the Board of County Commissioners, Collier County, Florida >ller 140 741 T COURT R l'E J Clerk of Courts 3 C, E #403 Accountant Auditor Custodian of County Funds It is with extreme pleasure that we present to you, the citizens of Collier County and members of the Board of County Commissioners, the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2010. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Board of County Commissioners and County management. The Clerk of the Circuit Court's Finance and Accounting Department, as well as County management, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements, and maintaining accountability of assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. The Clerk is not capable of representing that the internal controls of the County provide reasonable assurance as his office was precluded from examining those controls as a result of a dispute regarding the role of the Clerk of the Circuit Court as County Auditor. On November 10, 2010 the Florida Supreme Court dismissed the appeal of the Board of County Commissioners of Collier County v. Dwight Brock, and in doing so, reaffirmed the right of Clerk of Courts, Dwight Brock to audit all public funds used in county operations. The Florida Supreme Court upheld an earlier decision by the Florida Second District Court of Appeals issued on September 23, 2009. It is the Clerk's intention to reconstitute its auditing role during the fiscal year 2010 — 2011. Chapter 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counties in the State. For the fiscal year ended September 30, 2010, the report of the independent auditor, Ernst and Young LLP, is included in the Financial Section of this report. In addition to meeting the requirements set forth in State statutes, the audit was also designed to meet the requirements of the Federal 1996 Single Audit Act Amendments and the related OMB Circular A-133. Phone (239) 252 -2646 Fax (239) 252 -2755 Website: www.collierclerk.com Email: collierclerkecollierclerk.com 14B 7 The Florida Single Audit is required by Florida Statute 215.97. Information relating to the Single Audits, including the schedule of expenditures of federal awards and state projects and the independent auditors' report on compliance and internal control over compliance with requirements applicable to each major federal and state program, are included in the Federal and State Single Audit Section of this report. Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to compliment MD&A and the twd should be read in concert. Collier County's MD &A can be found in the Financial Section immediately following the independent auditors' report. PROFILE OF THE GOVERNMENT Collier County is a Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and is made up of five residents elected by voters. In addition to the County Commissioners, voters elect the following five constitutional officers: the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. Services provided by Collier County include public safety, emergency management, transportation services, water and wastewater services, parks, libraries and solid waste collection and disposal. Budgets are prepared annually. Formal budgetary integration is employed as a management control device during the year. The Board of County Commissioners conducts budget workshops during June of each year. The Board's proposed budget is released by July 15, in accordance with Florida Statutes. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to state statute. Public hearings are held in September to allow taxpayer input and to adopt the budget as final. The General Fund ad valorem tax millage for fiscal year 2010 increased by .4176 from 3.1469 the previous fiscal year to 3,5645 in FY -10. The General Fund ad valorem tax millage for fiscal year 2008 was reduced to 9% below the rolled back millage rate, (the rate which generates the same tax revenue as levied in the previous year, exclusive of new construction) in accordance with property tax reform measures adopted during a special legislative session. On January 29, 2008 Florida voters approved statutory revisions that included increases to the homestead exemption, portability of Save Our Homes tax breaks up to $500,000, a 10% cap on future assessment increases for non - homesteaded property starting in 2009 and a new tangible equipment exemption of $25,000. ii 146 7 f. EC'ONOMICCON®ITIONAN® OUTLOOK Collier County, the state's largest county at 2,026 square miles, is on the southwest coast of Florida, directly west of Miami. With a 2010 population of 331,300 (a 44 percent increase over the 2000 level), the County has been considered to be one of the fastest growing counties in the state over the last ten years. The County's economic base is concentrated in tourism and agriculture, fishing, ranching and forestry with a growing services economy and an emerging high technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. Taxable property market valuation for fiscal year 2010 totaled just under $70 billion, or a very high $210,900 per capita. Unemployment levels in recent years approximate, or are slightly above, the statewide average. The 2009 annual County unemployment rate stood at 12.2 %, while the statewide average is 11.6 %. Income levels are high, with a per capita personal income of $62,559. The County's financial operations have been managed with recurring General Fund operating surpluses contributing to historically strong cash and General Fund balance positions. This trend has-been negatively impacted by property tax legislation and a general slowing of the economy. The County's millage for General Fund operations in fiscal year 2010 remained at only 35% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Relevant financial policies include the appropriation of carryforward as revenue in the following year, budgeting revenues with a 5% reserve, recommended General Fund unreserved fund balance of between 10% and 15% of actual expenditures, the maximization of impact fees as allowed by law and the use of gas taxes for the Road Construction Capital Improvement Program. The Collier County debt policy provides for a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13 %. The major focus of the Capital Improvement Plan for FY -11 will be to complete the transportation network, public service and life, health and safety related projects initiated over the past few years. Funding for road construction will be provided by remaining unspent Road Construction Fund monies and road impact fees. Water and wastewater projects will be focused on maintenance and will be funded primarily by water and wastewater user fees. LONG TERM FINANCIAL PLANNING Long term financial planning in Collier County focuses on the provisions of the Local Government Comprehensive Planning and Land Development Regulation Act. The provisions of this Act require that local government comprehensive plans include a Capital Improvement Element (CIE). The CIE is a planning document that identifies public facilities that will be required during the next five or more years. The Capital Improvement Element is the foundation of Collier County's annual Capital Improvement iii R ■ Program (CIP). Included in the County's current CIP for fiscal years 2011 -2015 are approximately $140 million for transportation projects and approximately $262 million for water and wastewater facilities and various replacement and rehabilitation projects. Parks and recreation projects of approximately $39 million are planned, as well as $33 million for tourist development and green space projects. Less than one percent of the fiscal year 2011 — 2015 Capital Improvement Program is funded by bond or loan proceeds. In summary, the multi -year implications of tax reform, continuing declines in property tax values, volatile state shared revenues and unstable permitting revenues have changed the priorities of Collier County. The continued decrease in property taxable values was not, however, unanticipated. Reduction of recurring costs, realignment of operations for purposes of efficiency and the reduction or deferral of capital expenditures is now the primary focus. New home construction is hampered by the number of existing_homes available and a growing number of foreclosures. The overall housing market remains relatively soft, however there continues to be activity in the high end real estate market. State budget issues are a further concern, with competitive regional tourism coupled with sales tax volatility creating an environment for unstable state revenues. Historically, Collier County's economy has proven to be better insulated from economic downturns than other Florida counties, or the nation. Future years will be challenging, given the current issues in the housing market and the state budget, inflationary concerns, and revenue limitations imposed by tax reform. CASH MANAGEMENT The Finance and Accounting Department monitors the daily cash needs of the County and invests the County's portfolio in accordance with the County's written investment policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund, U.S. treasury securities, U.S. agency securities, commercial paper and bankers' acceptances. The weighted average maturity of the total managed portfolio was .39 years, not including overnight deposits, as of September 30, 2010. The average yield for fiscal year 2010 was .87 %, on an accrual basis, which constitutes a significant reduction from historical rates. Changes in the fair value of investments are recorded as part of interest income in the financial statements. OTHER DISCUSSION For the past several years the Clerk of the Circuit Court has been involved in certain litigation with Collier County. All litigation with the County was resolved, through mutual agreement, as of the end of fiscal year 2009 with the exception of case #2D07- 4549: L.T. #04- 941 -CA reaffirming that the Clerk of Courts is accountant, auditor and custodian of all county funds and is entitled to audit the county for purposes of determining legality of payment. The Board of County Commissioners elected to go forward with this case before the Florida Supreme Court. iv 14B 7 On September 2, 2010 the case was presented before the Florida Supreme Court. On November 10, 2010 the Florida Supreme Court dismissed the appeal of the Board of County Commissioners of Collier County v. Dwight Brock and in doing so reaffirmed the right of Clerk of Courts, Dwight Brock to audit all public. funds used in county operations. The Florida Supreme Court let stand the earlier decision by The Florida Second District Court of Appeals issued on September 23, 2009. AWARDS GFOA Certificate of Achievement. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting-to Collier County, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2009. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past twenty -four years, from fiscal year 1986 to 2009. We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2009. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the last twenty -one consecutive years. The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court for its annual budget for the fiscal year beginning October 1, 2009. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget presentation Award is valid for a period of one year only. The Clerk's Office has received this award for the last nine consecutive years. V 14B 7 ACKNOWLEDGEMENTS The preparation and publication of this Comprehensive Annual Financial Report represents a significant effort by the Finance and Accounting Department as well as numerous County personnel who contribute to its production. In particular we would. like to express our appreciation to Kelly Jones, CGFO, Edith Manuel, CPA, Precious Corrado, June Wathen, Liz Willis, Suzanne Boothby, Dan Tripaldi, Ashley Pearson and Karen Oberrath, all Accountants, along with Constance Murray, CGFO, General Operations Manager, Raymond Milum, Jr., Clerk's Fiscal Operations Manager and Nancy Fragione, Senior Financial Specialist, and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to Ernst and Young LLP, the Board of County Commissioners, the Constitutional Officers, the County Manager, Division Administrators and the Department Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Crystal K. Kinzel, Director of Finance and Accounting, at (239) 252- 6299. ctfu P Dwight . Brock Cleric of a Circuit Court Chief Financial Officer d Cryst I K. Kinzel Deputy Clerk ce and Accounting :er M. Johnssen, CPA eputy Clerk General Accounting Manager Vi Certificate of Achievement for Excellence in Financial Reporting Presented to Collier Counter Clerk of the Circuit Court Florida For its Comprehensive .Annual Financial Report for the Fiscal Year Ended September 30, 2009 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President Executive Director X46 71 14B 7 Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2009. This was the twenty -fourth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 14B 74 1 1 _ THIS PAGE INTENTIONALLY LEFT BLANK 11111111111, 111111111111111111111 JERNST &YOUNG 14B 7" Ernst & Young LLP Suite 500 5100 Town Center Circle Boca Raton, Florida 33486 Tel: +1 561 955 8000 Fax: +1 561 955 8200 www.ey.com Report of Independent Certified ]Public Accountants Distinguished Members of the Board of County Commissioners Collier County, Florida: We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (the County), as of and for the year ended September 30, 2010, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the County's internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2010, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison information for the general fund and community redevelopment fund for the year then ended in conformity with US generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 22, 2011 on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and 1102 - 1231597 A member firm of Ernst & Young Global Limited 4B 7 111111111 _I 1111111 JETERNSTa YOUNG 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The Management's Discussion and Analysis on pages 3 through 13 and schedule of funding progress for the retiree health plan on page 74 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards and state projects is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A -133, Section 215.97, Florida Statutes and Chapter 10.550, Rules of the Auditor General, and is not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards and state projects have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. 19� f f7 LLi February 22, 2011 1102 - 1231597 2 A member firm of Ernst & Young Global Limited MANAGEMENT'S DISCUSSION AND ANALYSIS 14B (UNAUDITED) As Clerk of the Circuit Court and chief financial officer of Collier County, Florida, I present the readers of the County's financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30, 2010. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i -vi of this report. Financial Highlights - Collier County's assets exceeded its liabilities as of September 30, 2010 by $2,434,545,233. Of this amount, $359,425,041 represents unrestricted net assets and may be used to meet future obligations. - The County's total net assets increased by $36,270,742 over fiscal year 2009, with $22,228,643 of the increase resulting from governmental activities and $9,042,099 resulting from business - type activities. - As of September 30, 2010 Collier County's governmental fund financial statements showed combined ending fund balances of $410,216,427, an increase of $251 over the previous fiscal year. Of the total combined ending fund balance, $267,751,647 remains in the various governmental funds of Collier County as unreserved. - The General Fund reported an unreserved fund balance of $59,705,240 at September 30, 2010, an increase of $20,781,489 compared to September 30, 2009. - Total net bonded debt and outstanding loans owed by Collier County decreased by $39,897,193 during fiscal year 2010, with a decrease in net governmental activities debt of $34,279,834 and a decrease in the net business -type activities debt of $5,617,359. In February of 2010 the County prepaid $6,154,000 in variable rate commercial paper debt. In July of 2010 the remaining commercial paper balance of $59,893,000 was refinanced by the fixed rate Series 2010 Special Obligation Revenue Bonds. The Bayshore /Gateway Community Redevelopment Agency prepaid $1,114,000 of taxable variable rate debt during the period. During fiscal year 2010, the Collier County Water and Sewer District refinanced all outstanding Series 1999B Refunding Revenue Bonds. The Collier County Water and Sewer District also borrowed $6,492,630 from the Florida Department of Environmental Protection's State Revolving Fund Program. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County's basic financial statements, comprised of government -wide and fund financial statements, as well as notes to the financial statements. There is additional supplementary information following these financial statements that may be of interest to the reader. Government -Wide Financial Statements Government -wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are 14B 7 comprised of a Statement of Net Assets and a Statement of Activities and are found on pages 14 to 17 of this report. The Statement of Net Assets shows the financial position of Collier County as of September 30, 2010. The statement shows the County's assets less its liabilities, with the difference being reported as net assets. Changes in net assets are useful indicators of financial condition. The Statement of Activities follows the statement of net assets and reports the changes in net assets over the fiscal period. All changes in net assets are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business -type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business -type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds - Governmental funds, presented on pages 18 to 25, account for substantially the same functions as governmental activities reported under the Government -Wide Statement of Net Assets and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government's near term financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government -wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County's statements include three major funds, the General Fund, Government Facilities Impact Fee Fund and the Community Redevelopment Fund. While there are many smaller governmental funds under Collier County management, they are aggregated in a total column named "other governmental funds ". Combining statements for these other governmental funds have been presented elsewhere in this report. 4 148 7" Proprietary funds - Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on pages 26 to 30 of this report. Enterprise funds report, with more detail, the same functions presented as business -type activities in the government -wide financial statements for water and sewer, Goodland water, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund is presented individually as a major fund. - Internal service funds are maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker's compensation insurance, property and casualty insurance, fleet operations and information technology. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government. These funds are not presented in the government -wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds are presented on page 31 of this report. All of the County's fiduciary funds are agency funds. The accounting used for agency funds is based on the concept that assets equal liabilities when the government is acting in a fiduciary capacity. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government -wide and fund financial statements. The notes appear on pages 34 to 72 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 80. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining balance sheets and statements of revenues, expenses and changes in fund net assets for enterprise funds. Also included are combining financial statements for internal service and agency funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical and Single Audit sections of this. report. Government -Wide Financial Analysis Changes in net assets over time are a useful indicator in assessing financial condition. Collier County's increase in net assets for the fiscal years ending September 30, 2010 and 2009 amounted to $36,270,742 and $68,887,651, respectively. Collier County's rate of growth continued to decline during fiscal year 2010 and this is an indication that the country's overall economic situation has had an impact on the County. Positive balances were reported in all categories of net assets in the governmental and business -type activities for fiscal year 2010, as well as fiscal year 2009. Collier County's net assets at September 30, 2010 increased $17,561,395 for unrestricted net assets and decreased $1,107,918 for restricted net 5 14B 7 assets. Restricted net assets are resources subject to external restriction on how they may be used while unrestricted net assets may be used to meet the County's ongoing obligations. Collier County's investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 74.1% of net assets as of September 30, 2010, compared to 74.4% as of September 30, 2009. Capital assets are used to provide services to the citizens and consequently do not represent spendable resources. As such, the capital assets themselves cannot be used to liquidate the debt incurred to purchase or construct the capital assets. Following are Collier County's net assets and changes in net assets for the fiscal years ended September 30, 2009 and 2010, shown in condensed form: Collier County's Schedule of Net Assets (in millions) Total Governmental Business -type Percentage Activities Activities Total Change 2010 2009 2010 2009 2010 2009 2009 -2010 Current and other assets $ 513.4 $ 536.4 $ 226.4 $ 200.0 $ 739.8 $ 736.4 0.5% Capital assets, net 1,651.3 1,644.7 891.6 914.2 2,542.9 2,558.9 (0.6 %) Total assets 2,164.7 2,181.1 1,118.0 1,114.2 3,282.7 3,295.3 (0.4 %) Long -term liabilities 471.7 510.0 246.5 252.8 718.2 762.8 (5.8 %) Current liabilities 101.4 106.8 28.5 27.4 129.9 134.2 (3.2 %) Total liabilities 573.1 616.8 275.0 280.2 848.1 897.0 (5.5 %) Net assets: Invested in capital assets, net of related debt 1,169.1 1,131.6 635.7 653.3 1,804.8 1,784.9 1.1% Restricted 232.6 240.2 37.8 31.3 270.4 271.5 (.4 %) Unrestricted 189.9 192.5 169.5 149.4 359.4 341.9 5.1% Total net assets $1,591.6 $1,564.3 $ 843.0 $ 834.0 $2,434.6 $2,398.3 1.5% 11 14B 7 Collier County's Schedule of Changes in Net Assets (in millions) Total Governmental Business -type Percentage Activities Activities Total Change 2010 2009 2010 2009 2010 2009 2009 -2010 Revenues Program revenues: Charges for services $ 56.3 $ 58.8 $154.7 $156.7 $ 211.0 $ 215.5 (2.1%) Operating grants and contributions 31.9 22.0 4.4 3.3 36.3 25.3 43.5% Capital grants and contributions 25.8 24.9 10.4 18.2 36.2 43.1 (16.0%) General revenues: 76.6 64.6 - - 76.6 64.6 18.6% Property taxes 299.4 313.3 - - 299.4 313.3 (4.4%) Other taxes and shared revenues 76.1 77.9 - - 76.1 77.9 (2.3%) 1 nterest i ncome 4.7 11.2 1.6 2.2 6.3 13.4 (53.0%) Miscellaneous 8.0 12.0 0.1 0.6 8.1 12.6 (35.7 9/.) Total revenues 502.2 520.1 171.2 181.0 673.4 701.1 (4.0%) Expenses Genera I government 100.5 114.0 - - 100.5 114.0 (11.8%) Public safety 179.2 182.9 - - 179.2 182.9 (2.0%) Physical environment 16.8 21.3 - - 16.8 21.3 (21.1 %) Transportation 76.6 64.6 - - 76.6 64.6 18.6% Economic environment 11.1 12.1 - - 11.1 12.1 (8.3%) Human services 13.0 12.0 - - 13.0 12.0 8.3% Culture and recreation 46.9 45.7 - - 46.9 45.7 2.6% Intereston long-term debt 19.5 20.5 - - 19.5 20.5 (4.9%) Water and sewer - - 103.3 90.0 103.3 90.0 14.8% Solid waste - - 27.4 30.8 27.4 30.8 (11.0 %) A! rport authority - - 4.4 3.9 4.4 3.9 12.8% Emergency medical services - - 28.8 28.7 28.8 28.7 0.3% Mass transit - - 9.6 9.0 9.6 9.0 6.7% Total expenses 463.6 473.1 173.5 162.4 637.1 635.5 0.3% Increasein net assets before nettransfers and special item 38.6 47.0 (2.3) 18.6 36.3 65.6 (44.7 %) Special item - registry bond - 3.3 - - - 3.3 (100.0 %) Transfers, net (11.3) (12.6) 11.3 12.6 - - - Change in net assets 27.3 37.7 9.0 31.2 36.3 68.9 (47.3 %) Net assets - beginning, as restated 1,564.3 1,526.6 834.0 802.8 2,398.3 2,329.4 3.0% Netassets - ending $1,591.6 $1,564.3 $843.0 $834.0 $2,434.6 $2,398.3 1.5% VA 14B 7 Governmental Activities The current year increase for net assets of governmental activities amounted to $27,228,643, an increase of 1.8% over the previous year's net assets. The previous fiscal years' increase was 2.5% and this declining rate of growth is the result of a continued decline in overall governmental activities revenues. Fiscal year 2010 reflects decreases in charges for services, property taxes, other taxes and shared revenues as well as interest and miscellaneous revenues. The total ad valorem tax collections for fiscal year 2010 were down $13,901,502, or 4.4 %, primarily due to an 11.0% decrease in taxable assessed value. Decreases in expenses occurred in most areas of governmental activity in fiscal year 2010, with the largest decrease in transportation, followed closely by general government. The decreased spending across the government functions is a result of the County's efforts to manage the basic needs of the citizenry while facing declining property tax revenues. Decreased personnel costs were a major component of the current year savings. Governmental activities interest expense net of amortizations was $19,475,226 for fiscal year 2010, a decrease of 5% compared to fiscal year 2009. Business -type Activities Increases in net assets related to business -type activities amounted to $9,042,099 in the aggregate, representing a 1.1% increase over the previous year's net assets. The majority of the increase, or $7,245,478, can be attributed to the Collier County Water and Sewer District. Total water, wastewater and reuse irrigation operating revenues decreased $3,879,757, or 3.7 %, over the previous fiscal year, while costs of operations, excluding depreciation, increased by 2.3 %. Operating revenues decreased primarily due to decreased usage caused by continued water restrictions, conservation measures and home vacancies. Fiscal year 2010 water and wastewater impact fee collections were $7,259,306, or an increase of 14.9% versus fiscal 2009. County Water and Sewer District charges water and wastewater impact fees on new construction in order to finance growth necessitated capital expansion. Overall, the Water and Sewer District experienced a 45.8% decrease in capital grants and contributions, mainly due to a decrease in developer donations of water and wastewater infrastructure. Operating expenses increased as the Water and Sewer District's focus has shifted from capital expansion to maintenance and optimization of existing facilities. Depreciation expense increased by 5.8% over fiscal year 2009 as over $105M in capital improvements and facilities added in fiscal year 2009 were depreciated for a full year. The County Water and Sewer District also recognized the impairment of the South Reverse Osmosis Raw Water Wellfield in the amount of $9,247,207. For more information, please see the footnotes to these financial statements. Solid waste charges for services increased by 1.7% from fiscal year 2009 while operating costs, including depreciation, decreased by 11.4% over the same period. The increase in solid waste charges for services can be mainly attributed to an 8.0% increase in the commercial tipping fee and a 6.0% increase in the residential tipping fee. Operating costs declined mainly due to a 12.8% decrease in total commercial, residential and construction related tonnage being accepted into the landfills during FY -2010. These factors contributed to an increase in solid waste net assets year on year of $4,614,672. 91 14B 7 Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unreserved fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. As of September 30, 2010 Collier County governmental funds reported combined fund balances of $410,216,427, an increase of $251 when compared to prior year combined fund balances. Governmental funds reserved $74,625,000 of fund balance for encumbrances in the next fiscal year, $17,862,784 for inventory and prepaid items, $4,567,076 for debt service and $45,384,925 for advances made to other funds. The remainder of fund balance is considered unreserved and available for discretionary spending. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2010: The General Fund is the primary operating fund of Collier County. At September 30, 2010, total fund balance in the general fund was $71,374,611, of which $59,705,240 was unreserved. As a percentage of total general fund expenditures and net transfers, the unreserved portion is 21.7 %. The total fund balance increased by $23,460,476 or 49.0 %, compared to the September 30, 2009 total fund balance. The increase in total fund balance is primarily due to decreased operating transfers from the General Fund to the Other Governmental Funds. The Government Facilities Impact Fee Fund accounts for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition of construction of government facilities. During fiscal year 2010 the Government Facilities Impact Fee Fund spent $1,853,437 on the Property Appraiser's new Radio Road location, $341,448 on the Courthouse Annex, $239,731 on the Emergency Services Complex and $256,058 on other government facilities. The Community Redevelopment Fund accounts for the receipt and expenditure of tax increment revenues for the Bays ho re/G ateway Triangle and Immokalee Redevelopment Authorities. During fiscal year 2010 the Bays ho re/Gateway Triangle prepaid $1,114,000 on a taxable note due to mature on September 1, 2014. The prepayment was the result of not closing on a parcel of real estate targeted for redevelopment within the Triangle. Proprietary funds Proprietary fund statements provide the same information as the business -type activities in the government -wide financial statements, but in greater detail, and on a fund basis for enterprise funds. At September 30, 2010, total net assets amounted to $843,010,747 for enterprise funds, as compared to $833,968,648 as of September 30, 2009. Net assets change as a result of operations, non - operating �~ 7 s revenues and expenses, capital contributions and grants and donations. The Collier County Water and Sewer District's activity represents the vast majority of the increase in net assets. For the year ended September 30, 2010 the Water and Sewer District reported capital grants and contributions of $9,225,164, which includes system development fees of $7,259,306, $1,664,505 in developer infrastructure contributions capital grants from other governmental agencies of $288,000 and other contributions of $13,353. Net Oneratirnis Income /iLoss 2010 2009 County Water and Sewer $ 16,396,126 $ 23,137,977 Solid Waste Disposal 6,264,619 2,099,676 Non -major enterprise funds (21,584,975) (22,721,725) Total $ 1,075,770 $ 2,515,928 The Collier County Water and Sewer Fund net operating income decreased by $6,741,851. The decrease in net operating income was the result of a decrease in operating revenues of $3,879,757, or 3.7 %, compared to the previous fiscal year, while costs of operations, including depreciation and amortization, were up 3.5% overall. The primary reason for this increase was the addition of $105M in capital assets during the last fiscal year and the related depreciation on those capital assets. County Water and Sewer payments in lieu of taxes paid to the General Fund of $3,459,500 were reclassified from operating expense to operating transfers for financial statement purposes. Personal services expense increased by 2.4 %, when compared to fiscal year 2009, as overtime increased due to an increased occurrence of line breaks and emergencies. Workers compensation expenses increased when compared to 2009 due to rebates applied to 2009. Other operating expenses were held constant over the last two fiscal years. Capital Assets Collier County's financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County's investment in capital assets for the governmental and business -type activities amounted to $2,542,861,280, net of accumulated depreciation. This investment in capital assets, both purchased and donated, includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year, net of depreciation, decreased by $15,967,092 when compared to the previous year. There was an increase in the governmental activities of $6,580,153, or .4%. The proprietary fund capital assets decreased by $22,547,245, or 2.5% as amounts depreciated and impaired exceeded amounts capitalized. The major factors behind these changes are as follows: The County Water and Sewer District experienced an impairment of the South County Wellfield in the amount of $9,247,207. The County Water and Sewer District also capitalized $13,226,952 of work in process related to water and wastewater facilities and improvements. - Capitalization of construction in progress of $52,466,062 for governmental activity related costs, with $36,044,463 of this amount related to transportation projects, $6,962,562 related to water 10 148 management and the remaining $9,459,037 to parks and recreation, governmental facilities and other projects. Purchases of land and non - depreciable assets were $7,858,168 for fiscal year 2010. Additional information regarding Collier County's capital assets can be found in Note 5 beginning on page 50 of this report. Debt Administration At September 30, 2010, Collier County had bonded revenue debt, net of amortizations, of $584,371,983 outstanding, an increase of $38,275,035 from the previous year. The following table illustrates the balances of all outstanding long -term debt for the fiscal years ended September 30, 2010 and 2009: Outstanding Debt Limited General Obligation Bonds, net Revenue Bonds, net Florida Local Government Loans State Revolving Fund Loans Miscellaneous Notes Total 2010 2009 $ 29,854,422 $ 37,700,223 584,371,983 546,096,948 - 66,047,000 114, 640, 946 116, 906, 373 11, 557, 675 13,571, 675 $740,425,026 $ 780, 322, 219 During fiscal year 2010 Collier County prepaid a total of $7,268,000 in debt. Of this amount, $6,154,000 was related to the Florida Local Government pooled commercial paper program and $1,114,000 was related to the Bays h o re/Gateway Triangle Redevelopment Agency. On October 8, 2009 the Collier County Water and Sewer District issued the $11,727,489 Collier County Water -Sewer District Water and Sewer Refunding Revenue Bond, Series 2009 for purposes of refunding all of the outstanding Collier County Water and Sewer District's Series 1999B bonds. On July 23, 2010 Collier County issued the $59,895,000 Series 2010 Special Obligation Bonds. The bonds were issued for the purpose of refunding all outstanding commercial paper in the Florida Local Government Pooled Program. The commercial paper was variable rate and set to mature on December 4, 2012. On November 30, 2010 Collier County issued the Series 201013 Special Obligation Refunding Revenue Bonds in the par amount of $24,620,000. These bonds were issued for the purpose of advance refunding all of the County's outstanding Capital Improvement Revenue Bonds, Series 2002. The refinancing of the Series 2002 Bonds, and their attendant restrictive covenants, caused the required cash reserve surety replacement relating to the Series 2002, 2003 and 2005 bonds to decrease from $19,570,777 to $15,717,300, or $3,853,477. The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County's long -term debt can be found in Note 6 beginning on page 51 of this report. 11 6 1, 4,8 ;�7 m Budgetary Highlights Budgetary comparison statements are provided in the basic financial statements for the General Fund and the Community Redevelopment Fund (CRA). Budget columns are presented for both the original budget and the final budget. These columns are followed by a column for actual revenues and expenditures and a column for differences between final budget and actual revenues and expenditures. Significant period revenue and expenditure budget increases and decreases, over $250,000 within a department, were made and are outlined in the following table: BCC Department/ Budget Agency Increase /(Decrease) Reason for increase /(Decrease) Intersection Safety $ 990,850 Increase in expenditures for new red light enforcement program. Tax Collector's Agency (448,999) Decrease in operating expenditures to actual. Natural Resources 998,222 Rebudget of lapsed appropriations. Other General Admin. 569,400 Rebudget of lapsed appropriations. Library (503,971) Decrease in capital expenditures. Parks and Recreation (834,900) Decrease expenditure budget to revised revenue forecasts. Sheriff's Agency (1,234,500) Decrease in personal services. Sheriff's Agency (412,821) Decrease in operating expenditures. BCC Transfers In 15,000,000 Increase transfers from Self Insurance for potential short term loan. Intersection Safety 841,000 Increase in fines from new red light enforcement program. CRA 317,341 Increase Immokalee Redevelopment expenditures forstorm water. CRA 250,000 increase Immokalee Redevelopment land purchases. CRA Transfers Out 317,341 Increase transfer in from otherfunds forstorm water master plan. Sheriff's Agency 1,614,100 Increase in charges for services - special detail duties. Tax Collector's Agency 834,523 Increase in charges for services to actual. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2010. Tax revenues were under budget by $10,853,721 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4% to 1 %, depending on the date of payment. General Fund general government expenditures were under budget primarily due to $1,485,764 in unspent budget related to natural resource planning and $1,309,730 of unspent budget in the other general administrative category. The other general administrative category was under budget mainly due to decreased operating expenditures such as property insurance. The Clerk of the Circuit Court's personal services and operating expenditures were under budget by a combined $1,157,137, primarily due to staff vacancies, unpaid furloughs and decreased legal fees. Sheriff's public safety expenditures were a combined $2,780,527 less than anticipated for fiscal year 2010. Human services related expenditures were a combined $1,336,862 under budget due mainly to unspent client assistance budget of $911,884. Economic Factors and Year 2011 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2011 budget: - An 11.6% average reduction in countywide taxable property values. - Forecast ad valorem collections at 95.3% of budget. - Expected increases in sales tax and state shared revenues of 2.2% and 6.0 %, respectively. - No new or expanded programs and initiatives; all existing programs to be funded at 95% of the prior year's level. 12 Continuation of Board Agency hiring freeze within ad valorem funded operations and exception replacement hiring within enterprise operations. Maintain health care program contributions at 80% employer and 20% employee across all agencies (Non- Sheriff). During fiscal year 2010, the General Fund unreserved fund balance increased by $20,781,489 to $59,705,240. As of January 28, 2011, $46,539,399 of the fiscal year 2010 unreserved fund balance has been appropriated as carryforward for fiscal year 2011. Contact Information This financial report is intended to give the user a general overview of Collier County Government's finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112 -5746 Our office may also be contacted via the internet at www.colllerclerk.com. 13 COLLIER COUNTY, FLORIDA STATEMENT OF NET ASSETS 14B SEPTEMBER 30, 2010 ASSETS Current assets: Cash, cash equivalents and investments Trade receivables, net Special assessments receivable Interest receivable Unbilled receivables Notes receivable Due from other governments Internal balances Deposits Inventory Prepaid costs Restricted assets: Cash, cash equivalents and investments Trade receivables, net Interest receivable Due from other governments Total current assets Noncurrent assets: Restricted assets: Cash, cash equivalents and investments Notes receivable Special assessments receivable Notes receivable Deferred charges Capital assets: Land and nondepreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets Primary Government Governmental Business -type Component Activities Activities Total Units $ 229,638,115 $ 134,593,992 $ 364,232,107 $ 459,432 1,524,668 10,069,354 11,594,022 - 94,259 580,258 674,517 - 287,806 354,419 642,225 - - 5,312,233 5,312,233 - 38,573 - 38,573 - 10,335,437 1,576,092 11,911,529 - (26,040,421) 26,040,421 - - 518,267 9,079 527,346 - 18,699,743 3,573,538 22,273,281 - 48,037 - 48,037 - 14,491,328 3,838,004 18,329,332 - 2,502,311 - 2,502,311 - 303,510 - 303,510 - 4,584,450 - 4,584,450 - 257,026,083 185,947,390 442,973,473 459,432 238,135,379 37,982,409 276,117,788 - 9,477,307 - 9,477,307 - 139,557 61,914 201,471 - 3,232,444 1,066,047 4,298,491 - 5,409,712 1,358,479 6,768,191 - 451,008,495 90,560,733 541,569,228 - 1,200,223,248 801,068,804 2,001,292,052 - 1,907,626,142 932,098,386 2,839,724,528 - 2,164,652,225 1,118,045,776 3,282,698,001 459,432 The notes to the financial statements are an integral part ofthis statement 14 6 148 74 15 Primary Government Governmental Business -type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable $ 16,917,880 $ 8,095,800 $ 25,013,680 $ - Wages payable 6,445,768 2,019,227 8,464,995 - Retainage payable 480,776 109,901 590,677 - Due to other governments 1,847,342 67,841 1,915,183 - Due to individuals 212,863 385,712 598,575 - Self- insurance claims payable 5,547,417 - 5,547,417 - Compensated absences 10,652,217 1,858,961 12,511,178 - Capital lease obligations 170,037 249,535 419,572 - Unearned revenue 3,986,381 - 3,986,381 - Interest payable 8,351,806 2,615,394 10,967,200 - Bonds and loans payable 29,403,527 9,352,464 38,755,991 - Liabilities payable from restricted assets: Accounts payable 7,902,808 264,949 8,167,757 - Wages payable 235,665 - 235,665 - Retainage payable 7,266,415 498,735 7,765,150 - Refundable deposits 1,947,378 233,154 2,180,532 - Notes payable - 71,675 71,675 - Unearned revenue - 260,644 260,644 - Bonds and loans payable - 2,500,866 2,500,866 - Total current liabilities 101,368,280 28,584,858 129,953,138 - Noncurrent liabilities: Self- insurance claims payable 3,061,583 - 3,061,583 - Compensated absences 11,268,363 796,698 12,065,061 - Capital lease obligations 269,059 386,811 655,870 - Landfill post - closure liability - 1,900,531 1,900,531 - Net OPEB obligation 1,420,091 - 1,420,091 - Bonds and loans payable, net 455,730,363 243,366,131 699,096,494 - Total noncurrent liabilities 471,749,459 246,450,171 718,199,630 Total liabilities 573,117,739 275,035,029 848,152,768 NET ASSETS Invested in capital assets, net of related debt 1,169,052,341 635,702,055 1,804,754,396 - Restricted for: Growth related capital expansion 101,362,445 23,849,801 125,212,246 - Transportation capital projects 65,303,300 - 65,303,300 - Conservation Collier 23,168,991 - 23,168,991 Tourist development 38,169,429 - 38,169,429 - Debt service 4,567,076 13,644,754 18,211,830 - Renewal and replacement - 300,000 300,000 - Unrestricted 189,910,904 169,514,137 359,425,041 459,432 Total net assets $1,591,534,486 $843,010,747 $2,434,545,233 $ 459,432 15 COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES 14B FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Business -type Activities: Program Revenues Water and Sewer Fees, Fines and Operating Capital 9,225,164 Solid Waste Charges for Grants and Grants and FUNCTIONS /PROGRAMS Expenses Services Contributions Contributions Primary Government: Mass Transit 9,617,411 1,145,338 4,246,994 Governmental Activities: Emergency Medical Services 28,767,067 16,4524497 175,514 General government $ 100,482,993 $ 29,281,277 $ 1,911,027 $ 4,232,662 Public safety 179,276,496 16,384,980 2,284,052 1,084,632 Physical environment 16,807,929 867,048 10,648,220 2,842,447 Transportation 76,603,220 828,935 5,074,101 13,453,185 Economic environment 11,141,270 184,512 9,063,173 - Human services 12,987,422 504,885 2,865,519 - Culture and recreation 46,870,497 8,267,287 38,003 4,149,104 Interest and fiscal charges 19,475,226 - - - Total governmental activities 463,645,053 56,318,924 31,884,095 25,762,030 Business -type Activities: Water and Sewer 103,271,857 101,062,479 11,185 9,225,164 Solid Waste 27,415,599 33,568,288 14,493 33,168 Airport Authority 4,382,071 2,518,720 - 80,500 Mass Transit 9,617,411 1,145,338 4,246,994 700,390 Emergency Medical Services 28,767,067 16,4524497 175,514 345,795 Total business -type activities 173,454,005 154,747,322 4,448,186 10,385,017 Total primary government $ 637,099,058 $ 211,066,246 $ 36,332,281 $ 36,147,047 Component Units: Industrial Development Authority $ 194 $ 3,948 $ - $ - Health Facilities Authority - - - - Housing Finance Authority 30,662 - Educational Facilities Authority • 178 - Total component units $ 31,034 $ 3,948 - General revenues: Property taxes Gastaxes Sales taxes Tourist taxes Communications services tax State revenue sharing Othertaxes Interest income Miscellaneous Transfers, net Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending The notes to the financial statements are an integral part of this statement 16 6 Net (Expense) Revenue and Changes in Net Assets Primary Government Governmental Business -type Component Activities Activities Total Units 146 7 $ (65,058,027) $ - $ (65,058,027) (159,522,832) - (159,522,832) (2,450,214) - (2,450,214) (57,246,999) - (57,246,999) (1,893,585) - (1,893,585) - (9,617,018) - (9,617,018) - (34,416,103) - (34,416,103) - (19,475,226) - (19,475,226) - 5,545,415 - (349,680,004) - (349,680,004) - - 7,026,971 7,026,971 - - 6,200,350 6,200,350 - - (1,782,851) (1,782,851) - - (3,524,689) (3,524,689) - (11,793,261) (11,793,261) - (3,873,480) (3,873,480)_ - (349,680,004) (3,873,480) (353,553,484) - $ 3,754 (30,662) (178) (27,086) 299,388,943 - 299,388,943 - 18,415,124 - 18,415,124 - 26,926,904 - 26,926,904 - 12,856,489 - 12,856,489 - 5,545,415 - 5,545,415 - 7,854,315 - 7,854,315 - 4,493,384 - 4,493,384 - 4,664,915 1,569,011 6,233,926 371 8,022,325 87,401 8,109,726 - (11,259,167) 11,259,167 - - 376,908,647 12,915,579 389,824,226 371 27,228,643 .9,042,099 36,270,742 (26,715) 1,564,305,843 833,968,648 2,398,274,491 486,147 $ 1,591,534,486 $ 843,010,747 $ 2,434,545,233 $ 459,432 17 ASSETS Cash, cash equivalents and investments Receivables: Interest Trade, net Notes Special assessments Due from other funds Due from other governments Inventory Advances to otherfunds Prepaid costs Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Wages payable Due to otherfunds Due to other governments Due to individuals Deferred revenue Refundable deposits Retainage payable Advances from otherfunds Total liabilities COLLIER COUNTY, FLORIDA � f, 4 B BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2010 Government Other Total General Facilities Community Governmental Governmental Fund Impact Fee Redevelopment Funds Funds $ 70,259,476 $ 7,469,874 $ 3,872,596 $ 359,294,450 $ 440,896,396 72,095 11,230 6,530 456,747 546,602 422,772 445 - 3,460,034 3,883,251 1,729,764 300,811 - 10,717,749 12,748,324 - - - 233,816 233,816 4,159,299 - - 1,120,215 5,279,514 2,127,458 8,555 - 12,782,823 14,918,836 117,186 - 13,662,212 4,352,277 18,131,675 9,317,325 - - 36,067,600 45,384,925 24,995 - - 24,995 $ 88,230,370 $ 7,790,915 $ 17,541,338 $ 428,485,711 $ 542,048,334 $ 7,319,991 $ 86,541 $ 346,192 $ 15,846,074 $ 23,598,798 4,239,938 - 36,040 2,108,694 6,384,672 1,782,384 - - 4,185,280 5,967,664 1,156,275 - 2,613 688,454 1,847,342 208,243 - - 4,620 212,863 309,892 300,811 - 14,570,702 15,181,405 1,867,036 - - 80,342 1,947,378 - 72,666 - 7,674,525 7,747,191 4,567,076 19,828,091 - 49,116,503 68,944,594 16,883,759 20,288,109 384,845 94,275,194 1311,8311,907 Fund balances (deficit): Reserved for: Encumbrances 2,181,865 1,364,616 566,845 70,511,674 74,625,000 Inventory 117,186 - 13,662,212 4,083,386 17,862,784 Advances to otherfunds 9,317,325 - - 36,067,600 45,384,925 Prepaid costs 24,995 - - - 24,995 Debt service - - - 4,567,076 4,567,076 Unreserved, reported in: General fund 59,705,240 - - - 59,705,240 Special revenuefunds - - 2,927,436 123,708,909 126,636,345 Debt service funds - - 2,026,416 2,026,416 Capital project funds - (13,861,810) - 93,245,456 79,383,646 Total fund balances (deficit) 71,346,611 (12,497,194) 17,156,493 334,210,517 410,216,427 Total liabilities and fund balances (deficit) $ 88,230,370 $ 7,790,915 $ 17,541,338 $ 428,485,711 $ 542,048,334 The notes to the financial statements are an integral part of this statement. 18 COLLIER COUNTY, FLORIDA 1 4 B 7 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Differences in amounts reported for governmental activities in the statement of net assets on pages 14-15 Fund balances - total governmental funds Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: $ 410,216,427 Land and other non - depreciable assets $ 378,046,623 Construction in progress 72,920,895 Depreciable assets, net of $507,901,337 in accumulated depreciation. 1,177,301,982 1,628,269,500 Certain long -term assets are not financial resources and therefore are not reported in the governmental funds. 5,409,712 Certain revenues will be collected after year -end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred revenue in the funds. 11,195,024 Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long -term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net assets. Balances at September 30, 2010 are: Accrued interest on bonds $ (8,351,806) Bonds and notes payable (470,136,399) Capital lease obligations (439,096) Compensated absences (21,398,346) Unamortized deferred loss 188,439 Unamortized premium (15,691,991) Unamortized discount 506,061 (515,323,138) Internal service funds are used bythe County to charge self - insurance, fleet management and information technology services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Internal service fund net assets are: Total net assets - governmental activities The notes to the financial statements are an integral part of this statement. 19 51,766,961 $1,591,534,486 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Q GOVERNMENTAL FUNDS 4 u FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Expenditures: Government Other Total Current: General Facilities Community Governmental Governmental General government Fund Impact Fee Redevelopment Funds Funds Revenues: 142,488,627 278,246 - 22,250,491 165,017,364 Taxes $ 239,089,279 $ - $ 2,453,600 $ 92,011,415 $333,554,294 Licenses, permits and impact fees 350,784 909,400 - 27,660,140 28,920,324 Intergovernmental 35,986,176 - - 50,459,137 86,445,313 Charges for services 18,040,462 - 6,070 9,075,397 27,121,929 Fines and forfeitures 2,568,833 - - 3,160,856 5,729,689 Interest income 961,365 80,248 47,241 3,216,722 4,305,576 Special assessments - - - 2,847,764 2,847,764 Miscellaneous 1,872,621 - 383,352 4,124,232 6,380,205 Total revenues 298,869,520 989,648 2,890,263 192,555,663 495,305,094 Expenditures: Current: General government 57,364,440 419,556 - 24,624,438 82,408,434 Public safety 142,488,627 278,246 - 22,250,491 165,017,364 Physical environment 738,866 - - 9,235,320 9,974,186 Transportation - - - 43,677,170 43,677,170 Economic environment 844,538 - 2,691,564 7,585,760 11,121,862 Human services 9,144,886 - - 2,971,050 12,115,936 Culture and recreation 16,160,019 - - 21,409,255 37,569,274 Debt service: Principal - - 1,114,000 33,160,202 34,274,202 Interest - - - 20,339,711 20,339,711 Fiscal charges - - - 890,591 890,591 Capital outlay 5,536,564 1,992,872 232,518 62,047,002 69,808,956 Total expenditures 232,277,940 2,690,674 4,038,082 248,190,990 487,197,686 Excess (deficiency) of revenues over (under) expenditures 66,591,580 (1,701,026) (1,147,819) (55,635,327) 8,107,408 Other financing sources (uses): Bonds issued - - - 59,895,000 59,895,000 Premiums on bonds issued - - - 844,241 844,241 Payment to refund commercial paper - - - (59,893,000) (59,893,000) Sale of capital assets 175,661 - - 72,392 248,053 Insurance proceeds 64,639 - - 245,587 310,226 Transfers in 9,189,343 - 383,961 95,819,970 105,393,274 Transfers out (52,560,747) (5,440,659) (1,632,944) (55,270,601) (114,904,951) Total other financing sources (uses) (43,131,104) (5,440,659) (1,248,983) 41,713,589 (8,107,157) Net change in fund balances 23,460,476 (7,141,685) (2,396,802) (13,921,738) 251 Fund balances (deficit) at beginning of year 47,886,135 (5,355,509) 19,553,295 348,132,255 410,216,176 Fund balances (deficit) at end of year $ 71,346,611 $(12,497,194) $ 17,156,493 $ 334,210,517 $410,216,427 The notes to the financial statements are an integral part ofthis statement 20 701 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND 14 B CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Differences in amounts reported for governmental activities in the statement of activities on pages 16 -17: Net change in fund balances -total governmental funds $ 251 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. Capital outlay $ 69,808,956 $ (1,058,262) Depreciation expense (69,716,099) 92,857 Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net assets in the statement of net assets. 3,396,515 Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. (11,023,404) In the statement of activities, the loss on the sale of capital assets is reported. However, in $ 34,114,428 the governmental funds the proceeds from the sale of capital assets increase financial 59,893,000 resources. The change in net assets differs from the change in fund balance by the net book 159,774 94,167,202 value of assets disposed. (963,235) Expenses related to the reduction of developer capital contributions receivable are not reported as expenditures in the governmental funds. (2,550,000) Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. Deferred revenue $ (1,058,262) Developer contributions (2,550,000) (3,608,262) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long -term liabilities in the statement of net assets. (60,739,241) Repayment of principal on long -term debt is an expenditure in governmental funds, but a reduction of long -term liabilities in the statement of net assets. Bond and loan principal payments $ 34,114,428 Payments to refund commercial paper 59,893,000 Payments on capital lease obligations 159,774 94,167,202 Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental Decrease in compensated absences Accrued interest on bonds Amortization of deferred charges, net Amortization of deferred loss Amortization of premium Amortization of discount Decrease in arbitrage rebate liability Certain amounts reported in the statement of activities as deferred are reported as expenditures in the governmental funds. The net revenues of internal service funds are reported with governmental activities. Change in net assets - governmental activities The notes to the financial statements are an integral part of this statement. 21 $ 165,503 (83,303) (324,062) (94,220) 1,134,205 (28,338) 315,185 1,084,970 835,609 6,535,381 $ 27,228,643 COLLIER COUNTY, FLORIDA �I Jr GENERALFUND 1 4 D 70 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON -GAAP) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Expenditures: Variance with Current: Final Budget General government Original Final Favorable Board of County Commissioners personal services Budget Budget Actual (Unfavorable) Revenues: 47,800 47,800 44,404 3,396 Taxes $ 249,943,000 $ 249,943,000 $ 239,089,279 $ (10,853,721) Licenses, permits and impact fees 164,000 164,000 350,784 186,784 Intergovernmental 33,208,900 33,208,900 35,986,176 2,777,276 Charges for services 16,247,845 18,881,157 18,040,462 (840,695) Fines and forfeitures 458,200 1,299,200 2,568,833 1,269,633 Interest income 2,190,800 2,190,800 886,772 (1,304,028) Miscellaneous 6,859,700 7,113,715 7,802,221 688,506 Total revenues 309,072,445 312,800,772 304,724,527 (8,076,245) Expenditures: Current: General government Board of County Commissioners personal services 955,000 955,000 934,855 20,145 Board of County Commissioners operating 47,800 47,800 44,404 3,396 County manager administrative personal services 931,600 931,600 846,872 84,728 County manager administrative operating 29,300 29,300 16,140 13,160 Budget and management personal services 912,400 912,400 767,905 144,495 Budget and management operating 51,500 51,500 18,218 33,282 Administrative services personal services 1,759,800 1,759,800 1,607,630 152,170 Administrative services operating 105,000 112,488 100,451 12,037 Administrative services capital outlay 7,500 5,929 4,227 1,702 Human resources administration personal services 1,303,200 1,317,200 1,314,997 2,203 Human resources administration operating 351,000 337,000 151,688 185,312 Clerk of the Circuit Court personal services 4,972,050 5,454,750 4,814,113 640,637 Clerk of the Circuit Court operating 2,810,750 2,228,050 1,723,554 504,496 Clerk of the Circuit Court capital outlay 87,900 187,900 175,896 12,004 Property Appraiser personal services 5,128,771 4,954,985 4,847,899 107,086 Property Appraiser operating 1,470,850 1,622,832 1,720,790 (97,958) Property Appraiser capital outlay 50,000 71,804 71,804 - Tax Collector personal services 9,586,604 9,467,219 9,467,219 - Tax Collector operating 3,367,515 3,038,431 2,987,311 51,120 Tax Collector capital outlay 50,242 49,712 49,712 - County attorney personal services 2,522,000 2,522,000 2,421,881 100,119 County attorney operating 445,300 445,300 180,050 265,250 Natural resource planning personal services 229,200 229,355 228,710 645 Natural resource planning operating 1,485,600 2,387,011 901,892 1,485,119 Circuit court costs operating 42,500 42,500 17,736 24,764 Courthouse security operating 1,205,200 1,263,019 1,260,834 2,185 Courthouse security capital outlay 40,000 - 8,836 (8,836) County court cost operating 22,900 22,900 5,303 17,597 State Attorney operating 319,100 319,100 248,253 70,847 Public Defender operating 159,700 201,100 201,100 - Other general administrative personal services 460,100 460,100 331,855 128,245 Other general administrative operating 7,423,200 7,778,150 6,596,665 1,181,485 Facilities management personal services 3,295,500 3,516,343 3,516,343 - Facilities management operating 7,738,900 7,718,541 7,639,208 79,333 Facilities management capital outlay 217,000 149,018 165,084 (16,066) 22 COLLIER COUNTY, FLORIDA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON -GAAP) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Sheriff personal services Sheriff operating Supervisor of Elections personal services Supervisor of Elections operating Supervisor of Elections capital outlay Real property management personal services Real property management operating Total general government Public safety Sheriff personal services Sheriff operating Sheriff capital outlay Emergency management administration personal service Emergency management administration operating Helicopter operations personal services Helicopter operations operating Intersection safety personal services Intersection safety operating Medical examiner services operating Medical examiner services capital outlay Total public safety Physical environment 14B 7 Variance with Final Budget Original Final Favorable Budget Budget Actual (Unfavorable) 3,744,300 3,412,100 3,529,650 (117,550) 126,200 126,200 132,535 (6,335) 1,978,100 1,978,100 1,846,784 131,316 1,298,400 1,283,613 1,227,044 56,569 14,900 24,270 20,480 3,790 813,900 834,900 825,753 9,147 22,400 22,400 17,857 4,543 67,583,182 68,271,720 62,989,538 5,282,182 118,355,700 117,453,400 114,349,982 3,103,418 26,707,400 26,294,579 23,289,123 3,005,456 1,635,000 1,636,240 4,964,587 (3,328,347) 860,100 860,100 845,764 14,336 345,100 369,199 202,141 167,058 639,500 741,562 741,562 - 826,600 724,538 675,999 48,539 - 31,000 22,708 8,292 - 959,850 1,116,713 (156,863) 1,064,200 1,064,200 1,051,273 12,927 54,900 54,900 49,995 4,905 150,488,500 150,189,568 147,309,847 2,879,721 Conservation and resource management personal service 620,900 633,900 612,990 20,910 Conservation and resource management operating 162,600 162,600 104,728 57,872 Immokalee cemetery operating 8,200 8,200 2,642 5,558 Total physical environment 791,700 804,700 720,360 84,340 Economic environment Veterans services personal services Veterans services operating Impact fee assistance operating Housing and urban improvement operating Total economic environment Human services Health Care Responsibility Act operating Domestic animal services personal services Domestic animal services operating Domestic animal services capital outlay Health department operating Mental health operating Client assistance personal services Client assistance operating Public services division office personal services Public services division office operating Total human services 271,800 282,800 277,738 5,062 61,600 50,600 29,971 20,629 187,500 187,500 - 187,500 537,000 590,000 515,676 74,324 1,057,900 1,110,900 823,385 287,515 50,000 50,000 - 50,000 1,949,800 1,949,800 1,886,123 63,677 741,700 741,700 495,279 246,421 53,500 - - - 1,720,100 1,795,100 1,748,233 46,867 899,300 899,300 899,300 - 446,700 446,700 432,667 14,033 4,040,300 4,040,300 3,142,449 897,851 318,700 318,700 302,956 15,744 11,100 11,100 8,831 2,269 10,231,200 10,252,700 8,915,838 1,336,862 23 COLLIER COUNTY, FLORIDA GENERALFUND 148 74 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON -GAAP) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Variance with Final Budget Original Final Favorable Budget Budget Actual (Unfavorable) Culture and recreation Library administration personal services 5,231,200 5,260,612 5,040,453 220,159 Library administration operating 1,726,300 1,726,300 1,553,870 172,430 Library administration capital outlay 510,400 6,662 6,543 119 Beach and water park operations personal services Beach and water park operations operating Beach and water park operations capital outlay Total culture and recreation Total expenditures Excess of revenues over expenditures Other financing sources (uses): Sale of capital assets Insurance proceeds Transfersin Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Reconciliation: Net change in fund balance, budgetary basis Bad debt expense Net change in fair value of investments Advances budgeted as transfers Net change in fund balance, GAAP basis 5,026,400 4,881,700 4,640,592 241,108 5,519,000 4,824,869 4,520,352 304,517 71,000 20,877 19,400 1,477 18,084,300 16,721,020 15,781,210 939,810 248,236,782 247,350,608 236,540,178 10,810,430 60,835,663 65,450,164 68,184,349 2,734,185 290,500 290,500 175,661 (114,839) - 55,482 64,639 9,157 7,240,937 20,880,884 9,218,923 (11,661,961) (70,192,800) (69,692,855) (57,138,969) 12,553,886 (62,661,363) (48,465,989) (47,679,746) 786,243 (1,825,700) 16,984,175 20,504,603 3,520,428 33,217,700 34,902,337 34,902,337 $ 31,392,000 $ 51,886,512 $ 55,406,940 $ 3,520,428 The notes to the financial statements are an integral part of this statement 24 $ 20,504,603 (6,220) 74,593 2,887,500 $ 23,460,476 COLLIER COUNTY, FLORIDA COMMUNITY REDEVELOPMENT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON -GAAP) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Revenues: Taxes Charges for services Interest income Miscellaneous Total revenues Expenditures: Current: Economic environment Bayshore /Gateway personal services Bayshore /Gateway operating Bayshore /Gateway capital outlay Immokalee redevelopment personal services Immokalee redevelopment operating Immokalee redevelopment capital outlay Debt service: Bayshore /Gateway principal Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing uses Net change in fund balance Variance with Final Budget Original Final Favorable Budget Budget Actual (Unfavorable) $ 2,453,600 $ 2,453,600 $ 2,453,600 $ - - - 6,070 6,070 55,000 55,000 40,980 (14,020) 79,000 383,352 304,352 2,508,600 2,587,600 2,884,002 296,402 397,600 509,420 404,692 104,728 1,086,000 1,228,632 866,436 362,196 2,100,000 986,000 - 986,000 264,600 354,600 260,147 94,453 894,000 1,411,341 1,160,289 251,052 200,000 450,000 232,518 217,482 - 1,114,000 1,114,000 4,942,200 6,053,993 4,038,082 2,015,911 (2,433,600) (3,466,393) (1,154,080) 2,312,313 33,800 383,961 383,961 - (1,787,300) (1,987,300) (1,632,944) 354,356 (1,753,500) (1,603,339) (1,248,983) 354,356 (4,187,100) (5,069,732) (2,403,063) 2,666,669 Fund balance at beginning of year 6,144,000 6,286,632 6,286,632 - Fund balance at end of year $ 1,956,900 $ 1,216,900 $ 3,883,569 $ 2,666,669 Reconciliation: Excess of revenues over expenditures, budgetary basis $ (2,403,063) Net change in fair value of investments 6,261 Net change in fund balance, GAAP basis $ (2,396,802) The notes to the financial statements are an integral part ofthis statement. 25 14B 7 COLLIER COUNTY, FLORIDA STATEMENT OF NET ASSETS 148 71 PROPRIETARY FUNDS SEPTEMBER 30, 2010 0 Business -type Activities Enterprise Funds Governmental County Activities - Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds ASSETS Current assets: Cash, cash equivalents and investments $ 110,157,924 $ 19,141,059 $ 5,295,009 $ 134,593,992 $ 41,368,426 Receivables: Trade, net 5,868,482 613,783 3,587,089 10,069,354 143,728 Special assessments 580,258 - - 580,258 - Interest 227,082 117,059 10,278 354,419 44,714 Unbilled revenue 4,739,744 - 572,489 5,312,233 - Due from other funds 30,711 44,868 - 75,579 869,997 Due from other governments 44,025 29,748 1,502,319 1,576,092 1,051 Deposits 9,079 - - 9,079 518,267 Inventory 3,429,373 - 144,165 3,573,538 568,068 Prepaid costs - - - - 23,042 Restricted assets: Cash, cash equivalents and investments 3,327,694 255,205 255,105 3,838,004 - Total current assets 128,414,372 20,201,722 11,366,454 159,982,548 43,537,293 Noncurrent assets: Restricted assets: Cash, cash equivalents and investments 37,982,409 - - 37,982,409 - Receivables: Special assessments 61,914 - - 61,914 - Advances 18,550,000 5,009,669 - 23,559,669 - Notes 1,066,047 - - 1,066,047 - Deferred charges 1,358,479 - - 1,358,479 - Capital assets: Land and nondepreciable capital assets 77,000,360 3,259,295 10,301,078 90,560,733 40,977 Depreciable capital assets, net 762,382,058 15,552,075 23,134,671 801,068,804 22,921,266 Total noncurrent assets 898,401,267 23,821,039 33,435,749 955,658,055 22,962,243 Total assets 1,026,815,639 44,022,761 44,802,203 1,115,640,603 66,499,536 (Continued) 0 COLLIER COUNTY, FLORIDA 1 4 B STATEMENT OF NET ASSETS PROPRIETARY FUNDS SEPTEMBER 30, 2010 Noncurrent liabilities: Business -type Activities Enterprise Funds Invested in capital assets, net of related debt Governmental 18,811,370 32,799,403 635,702,055 22,962,243 Self- insurance claims payable - - - Activities - 3,061,583 County Water Solid Waste Other 255,389 Internal Service 156,671 and Sewer Disposal Funds Total Funds LIABILITIES Net OPEB obligation - - - Current liabilities: Landfill post-closure liability - 1,900,531 - 1,900,531 Accounts payable $ 5,056,130 $ 1,712,481 $ 1,327,189 $ 8,095,800 $ 1,221,890 Wages payable 1,051,535 76,841 890,851 2,019,227 296,761 Retainage payable 109,901 - - 109,901 - Due to other funds 277 26,257 226,137 252,671 4,755 Due to other governments 23 409 67,409 67,841 - Due to individuals 7,944 - 377,768 385,712 - Self- insurance claims payable - - - - 5,547,417 Compensated absences 1,166,114 96,939 595,908 1,858,961 365,563 Capital lease obligations - - 249,535 249,535 - Interest payable 2,615,394 - - 2,615,394 - Bonds and loans payable 9,352,464 - - 9,352,464 - Liabilities payable from restricted assets; Accounts payable 264,949 - - 264,949 - Retainage payable 444,221 - 54,514 498,735 - Refundable deposits 38,002 176,849 18,303 233,154 - Unearned revenue - 78,356 182,288 260,644 - Notes payable 71,675 - - 71,675 - Bonds and loans payable 2,500,866 - - 2,500,866 - Total current liabilities 22,679,495 2,168,132 3,989,902 28,837,529 7,436,386 Noncurrent liabilities: Invested in capital assets, net of related debt 584,091,282 18,811,370 32,799,403 635,702,055 22,962,243 Self- insurance claims payable - - - - 3,061,583 Compensated absences 499,763 41,546 255,389 796,698 156,671 Capital lease obligations - - 386,811 386,811 - Net OPEB obligation - - - 1,420,091 Landfill post-closure liability - 1,900,531 - 1,900,531 - Bonds and loans payable, net 243,366,131 - - 243,366,131 - Total noncurrent liabilities 243,865,894 1,942,077 642,200 246,450,171 4,638,345 Total liabilities 266,545,389 4,110,209 4,632,102 275,287,700 12,074,731 NET ASSETS Invested in capital assets, net of related debt 584,091,282 18,811,370 32,799,403 635,702,055 22,962,243 Restricted for growth related capital expansior 23,849,801 - - 23,849,801 - Restricted for renewal and replacement 300,000 - - 300,000 - Restricted for debt service 13,644,754 - - 13,644,754 - Unrestricted 138,384,413 21,101,182 7,370,698 166,856,293 Total net assets $ 760,270,250 $ 39,912,552 $ 40,170,101 840,352,903 $ 54,424,805 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds 2,657,844 Net assets of Business -type Activities The notes to the financial statements are an integral part of this statement 27 $ 843,010,747 r COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSET 4 B PROPRIETARY FUNDS f FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 201.0 Non - operating revenues (expenses): Business -type Activities Enterprise Funds Governmental County 11,185 14,493 4,422,508 Activities - - Water Solid Waste Other 69,064 Internal Service 359,339 and Sewer Disposal Funds Total Funds Operating revenues: Rebatable arbitrage 993,889 - - 993,889 Charges for services $ 99,880,767 $ 33,368,652 $ 20,439,329 $ 153,688,748 $ 67,137,322 Miscellaneous 778,708 199,636 80,230 1,058,574 19,428 Total operating revenues 100,659,475 33,568,288 20,519,559 154,747,322 67,156,750 Operating expenses: Total non - operating revenues (expenses) (16,202,193) 209,681 4,106,063 (11,886,449) Personal services 23,116,018 1,678,517 19,806,344 44,600,879 6,802,284 Operating 27,777,417 24,925,295 19,530,690 72,233,402 64,628,761 Depreciation and amortization 33,369,914 699,857 2,767,500 36,837,271 2,071,722 Total operating expenses 84,263,349 27,303,669 42,104,534 153,671,552 731,502,767 Operating income (loss) 16,396,126 6,264,619 (21,584,975) 1,075,770 (6,346,017) Non - operating revenues (expenses): Operating grants and contributions 11,185 14,493 4,422,508 4,448,186 - Interest income 1,305,382 194,565 69,064 1,569,011 359,339 Insurance reimbursement 39,460 2,296 45,645 87,401 1,362,872 Rebatable arbitrage 993,889 - - 993,889 - Interest expense (9,326,347) - (28,875) (9,355,222) - Gain (loss) on disposal of capital assets 21,445 (1,673) (402,279) (382,507) (744) Loss on impairment of capital assets (9,247,207) - (9,247,207) - Total non - operating revenues (expenses) (16,202,193) 209,681 4,106,063 (11,886,449) 1,721,467 Income (loss) before contributions and transfers 193,933 6,474,300 (17,478,912) (10,810,679) (4,624,550) Capital grants and contributions 9,225,164 33,176 1,175,623 10,433,963 11,067,069 Transfers in 1,539,365 44,868 15,357,300 16,941,533 - Transfers out (3,712,984) (1,937,672) (79,200) (5,729,856) (1,700,000) Change in net assets 7,245,478 4,614,672 (1,025,189) 10,834,961 4,742,519 Netassets - beginning 753,024,772 35,297,880 41,195,290 49,682,286 Netassets - ending $ 760,270,250 $ 39,912,552 $ 40,170,101 $ 54,424,805 Consolidation adjustment for internal service fund activities related to enterprise funds (1,792,862) Change in net assets of Business -type Activities $ 9,042,099 The notes to the financial statements are an integral part of this statement. 28 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Cash flows from capital and related financing activities: System development charges Business -type Activities Enterprise Funds - 8,219,945 Governmental Special assessment collections County - - 569,441 - Activities - 37,760 Water Solid Waste Other Proceeds from disposal of capital assets Internal Service - 12,008 63,892 and Sewer Disposal Funds Total Funds Cash flows from operating activities: Proceeds from state revolving loans 6,291,674 - - 6,291,674 (4,844,464) Cash received for services $ 101,056,410 $ 33,295,907 $ 14,334,535 $ 148,686,852 $ - Cashreceivedfromotherfundsforservices - - - 60,822,685 Cash received from employees for services - - Principal payments on state revolving loans (6,918,878) 4,624,707 Cash received from other governments for services - - - - (5,274,324) 386,172 Cash received from refundable deposits 41,000 806,587 - 847,587 - Cash received from retirees for services - - - - 1,080,767 Cash payments on behalf of retirees - - - (21,498,871) (1,434,114) (3,647,210) (26,580,195) (927,494) Cash payments for goods and services (24,794,117) (24,279,489) (10,792,797) (59,866,403) (64,331,778) Cash paymentsto employees (19,284,230) (1,366,374) (17,714,062) (38,364,666) (5,523,339) Cash payments for interfund services (6,581,347) (621,990) (5,050,906) (12,254,243) (933,861) Cash payments on refundable deposits (59,200) (832,518) (4,301) (896,019) Net cash provided by (used for) operating activities 50,378,516 7,002,123 (19,227,531) 38,153,108 (4,802,141) Cash flows from non - capital financing activities: Cash received from operating grants 7,308 56,120 4,441,279 4,504,707 - Cashtransfersfromotherfunds 1,540,169 2,778,468 20,741,888 25,060,525 - Cash transfers to other funds (3,712,984) (4,041,272) (5,618,214) (13,372,470) (1,700,000) Net cash provided by (used for) non - capital financing activities (2,165,507) (1,206,684) 19,564,953 16,192,762 (1,700,000) Cash flows from capital and related financing activities: System development charges 8,219,945 - 8,219,945 71,377 Special assessment collections 569,441 - - 569,441 - Receipts from insurance reimbursements 37,760 2,296 61,785 101,841 1,362,872 Proceeds from disposal of capital assets 51,884 - 12,008 63,892 14,100 Proceeds from capital grants' 288,000 3,420 411,537 702,957 - Proceeds from state revolving loans 6,291,674 - - 6,291,674 (4,844,464) Proceeds from bond issue 41,047 - - 41,047 - Paymentsforcapitalacquisitions (14,716,056) (1,439,830) (3,924,623) (20,080,509) (96,918) Payments for bond closing costs (103,377) - (103,377) - Principal payments on state revolving loans (6,918,878) - - (6,918,878) - Principal payments on bonds (5,274,324) - - (5,274,324) - Principal payments on leases - - (179,042) (179,042) - interest and fiscal agent fees paid (9,985,987) - (28,875) (10,014,862) - Net cash provided by (used for) capital and related - Cash, cash equivalents and investments, September 30, 2010 $ 151,468,027 $ financing activities (21,498,871) (1,434,114) (3,647,210) (26,580,195) 1,280,054 Cash flows from investing activities: Interest on investments 1,276,484 188,982 71,377 1,536,843 377,623 Net cash provided by investing activities 1,276,484 188,982 71,377 1,536,843 377,623 Net increase (decrease) in cash, cash equivalents and investments 27,990,622 4,550,307 (3,238,411) 29,302,518 (4,844,464) Cash, cash equivalents and investments, October 1, 2009 123,477,405 14,845,957 8,788,525 147,111,887 46,212,890 Cash, cash equivalents and investments, September 30, 2010 $ 151,468,027 $ 19,396,264 $ 5,550,114 $ 176,414,405 $ 41,368,426 Current cash, cash equivalents and investments $ 110,157,924 $ 19,141,059 $ 5,295,009 $ 134,593,992 $ 41,368,426 Current cash, cash equivalents and investments - restricted 3,327,694 255,205 255,105 3,838,004 - Noncurrent cash, cash equivalents and investments - restricted 37,982,409 - - 37,982,409 - Cash, cash equivalents and investments, September 30, 2010 $ 151,468,027 $ 19,396,264 $ 5,550,114 $ 176,414,405 $ 41,368,426 (Continued) 29 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (CONTINUED) RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense Amortization ofbond issuance costs Amortization of utility acquisition adjustment Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Deposits Prepaid costs Inventory Prepaid costs Accounts payable Wages payable Due to other funds Due to other governments Due to individuals Compensated absences Refundable deposits Unearned revenue Self - insurance claims payable Net OPEB obligation Landfill post closure liability Total adjustments Net cash provided by (used for) operating activities 14B 7 Business -type Activities Enterprise Funds Governmental County Activities - Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds $ 16,396,126 $ 6,264,619 $ (21,584,975) $ 1,075,770 $ (6,346,017) 32,761,066 699,857 2,767,500 36,228,423 2,071,722 548,393 - - 548,393 - 60,455 - 60,455 143,651 88,958 (486,405) (253,796) (103,318) 2,433 368,787 - 371,220 (856,208) 293,113 - 9,141 302,254 37,314 (6,779) - (6,779) 39,190 26,754 32,083 58,837 - (619,736) (20,627) (640,363) (32,928) - - - (23,042) 451,051 (42,301) 78,158 486,908 631,809 107,418 11,856 73,654 192,928 165,831 (35) (370,178) (16,830) (387,043) (5,571) (274) 201 (29,577) (29,650) (665) - 313 (352) - 233,745 19,551 (39,402) 213,894 300,456 (18,200) (1,300) (4,301) (23,801) - - (24,631) (6,263) (30,894) - - - (720,000) - - 38,621 (13,296) (13,296) 33,982,390 737,504 2,357,444 37,077,338 1,543,876 $ 50,378,516__$ 7,002,123 $ (19,227,531) $ 38,153,108 $ (4,802,141) Non -cash investing, capital and financing activities: The enterprise funds experienced a non -cash investing gain due to a change in the fair value of investments as follows: County Water and Sewer $ 185,189 Solid Waste 28,050 Otherfunds 9,823 Total $ 223,062 There were non -cash developer contributions of $1,664,505 in the County Water and Sewer District fund. There were non -cash capital asset transfers out of the County Water and Sewer District fund as capital assets with a historical cost of $1,985 and $529 accumulated depreciation were transferred out to governmental activities. There were non -cash capital asset transfers in of $48,945 in the Nonmajor Business Type funds as capital assets with a historical cost of $466,702 and $417,757 of accumulated depreciation were transferred from governmental activities. The internal service funds experienced a net non -cash investing gain due to a change in the fair value of Investments as follows: I nterna I service funds $ 47,437 There were non -cash capital asset transfers of $11,067,069 in the internal service funds. The notes to the financial statements are an integral part ofthis statement. 30 COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS SEPTEMBER 30, 2010 The notes to the financial statements are an integral part of this statement 31 48; 7 Agency Funds ASSETS Cash, cash equivalents and investments $ 32,536,268 Receivables: Interest 5,398 Other 29,757 Total assets $ 32,571,423 LIABILITIES Due to other governments $ 6,636,329 Due to individuals 1,886,327 Refundable deposits 23,127,876 Due to special assessment holders 920,891 Total liabilities $ 32,571,423 The notes to the financial statements are an integral part of this statement 31 48; 7 THIS PAGE INTENTIONALLY LEFT BLANK COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 1 SEPTEMBER 30, 2010 INDEX NOTE PAGE NUMBER 1 Summary of Significant Accounting Policies 34 2 Cash, Cash Equivalents and Investments 45 3 Trade Receivables 48 4 Interfund Payables and Receivables 48 5 Capital Assets 50 6 Long -Term Obligations 51 7 Conduit Debt Obligations 58 8 Defeased Debt 59 9 Pension Plan Obligations 60 10 Transfers 61 11 Net Assets /Fund Balances 62 12 Risk Management 63 13 Other Postemployment Benefits 65 14 Landfill Liability 70 15 Significant Contingencies 70 16 Significant Commitments 71 17 Fund Deficits 71 18 Impairment of Capital Asset 72 19 Subsequent Events 72 33 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES THE REPORTING ENTITY luirm The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court, the Collier County Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board, impose its will on the organization, and the existence of a financial benefit /burden relationship or fiscal dependency. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex- officio. These entities are legally separate, however financial support has been pledged and financial or operational policies may be significantly influenced by the County. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity (GASB 14), as amended by GASB Statement No. 39, Determining Whether Certain Organizations are Component Units (GASB 39), these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District The District was established by Chapter 88 -499, as amended by Chapter 03 -353, Laws of Florida, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Goodland Water District The District was established by a Special Referendum Election authorized by Collier County Ordinance 75 -5 and Section 125.01(q), Florida Statutes. The District provides potable water service to the residents of Goodland. Collier County Community Redevelopment Agency (CRA) The CRA was established by Resolution 2000 -82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore /Gateway Triangle Redevelopment areas. These two redevelopment areas are geographically separate and distinct. 34 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS ,SEPTEMBER 30, 2010 14 B NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED THE REPORTING ENTITY— CONTINUED Collier County Metropolitan Planning Organization (MPO) The Authority was created in 1981 by Collier County Resolution 81 -222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide for short -term and long -term planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenue fund. The County's discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units' Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB 14, as amended by GASB 39, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. Collier County Housing Finance Authority The Authority was formed in 1980 by Collier County Ordinance 80 -66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Collier County Health Facilities Authority The Authority was established in 1979 by Collier County Ordinance 79 -75 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Collier County Industrial Development Authority The Authority was created in 1978 by Collier County Resolution 78 -94 to facilitate the financing of projects that promote economic growth and increase opportunities for employment in the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Collier County Educational Facilities Authority The Authority was created in 1999 by Collier County Resolution 99 -177 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". 35 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 140 SEPTEMBER 30, 2010 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED THE REPORTING ENTITY — CONTINUED Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court. Administrative Offices: Collier County Water and Sewer District and Goodland Water District 3339 EastTamiami Trail, Suite #214 Naples, Florida 34112 Bayshore Gateway Community Redevelopment Agency 4069 Bayshore Drive Naples, Florida 34112 Immokalee Community Redevelopment Agency 310 Alachua Street Immokalee, Florida 34142 Collier County Health Facilities Authority and Housing Finance Authority 5150 Tamiami Trail North, Suite #502 Naples, Florida 34103 Collier County Industrial Development Authority and Educational Facilities Authority 3050 N. Horseshoe Drive, Suite #120 Naples, Florida 34104 Collier County Metropolitan Planning Organization 2885 South Horseshoe Drive Naples, Florida 34104 GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business type activities of Collier County. The government wide financial statements consist of a Statement of Net Assets and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business -type activities. As a general rule, the effect of interfund activity has been eliminated from the government wide financial statements. Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Assets reports all financial and capital resources of Collier County's governmental and business -type activities. Net assets equal assets minus liabilities, and is shown in three categories: invested in capital assets, net of related debt; restricted net assets and unrestricted net assets. The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree the particular program has been self - supporting. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. 36 74 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS e SEPTEMBER 30, 2010 14B NOTE 1- -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS— CONTINUED When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenditures, and unrestricted as needed. The fund financial statements follow the government wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are reconciliations explaining the differences between the governmental fund presentation and the government wide presentation. BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund — the General fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County's consolidated General Fund. Government Facilities Impact Fee Fund — the Government Facilities Impact Fee fund is used to account for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition and construction of government facilities. Community Redevelopment Fund — the Community Redevelopment fund is used to account for the receipt and expenditure of tax increment revenues relating to the Bays ho re/Gateway Triangle and Immokalee Community Redevelopment Authorities. The following are reported as major enterprise funds: County Water and Sewer Fund — the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County's unincorporated area. Solid Waste Disposal Fund — the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. 37 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 'l SEPTEMBER 30, 2010 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED BASIS OF PRESENTATION — CONTINUED Collier County also maintains the following nonmajor fund types: 14B 74 Special Revenue Funds — Special revenue funds are used to account for the accumulation of resources set aside for a specific purpose. Debt Service Funds — Debt service funds are used to account for the accumulation of resources for the payment of principal, interest and other expenditures on long -term obligations, other than bonds and notes payable from the operations of business -type activities. Capital Proiect Funds — Capital project funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Enterprise Funds — Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds — Internal service funds are used to account for the provision of goods and services by one department to other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently operates the following Internal Service Funds: Self Insurance, Sheriffs Self Insurance, Fleet Management and Information Technology. Agency Funds — Agency funds are custodial in nature and do not report the results of operations (assets equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for individuals, private organizations or other governments. The Board of County Commissioners, Sheriff, Clerk of the Circuit Court and Tax Collector all maintain agency funds. BASIS OFACCOUNTING AND MEASUREMENT FOCUS Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. The government wide financial statements, as well as the fund financial statements for the proprietary funds, are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized in the period in which they are earned and expenses are recognized in the period incurred. Grant revenues are recognized when eligibility requirements are met. The intent in proprietary operations is that the costs of providing goods or services to the general public be financed primarily through user charges, or where periodic determination of revenues earned, expenses incurred, and /or net income is deemed appropriate. 38 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 4B SEPTEMBER 30, 2010 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED BASIS OF ACCOUNTING AND MEASUREMENT FOCUS — CONTINUED Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non - operating revenues and expenses. All governmental fund financial statements are reported using a current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized in the period in which they become both measurable and available to finance expenditures of the current period. Available means collectible within the current period or soon enough thereafter, generally 60 days, to be used to pay liabilities of the current period. Primary revenues including non -grant intergovernmental revenues, charges for services and interest are treated as susceptible to accrual under the modified accrual basis. In applying the susceptibility -to- accrual concept to grant revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. In addition, grant revenues are considered available if they are expected to be collected within one year of the end of the current fiscal period. Property taxes are discussed later in this footnote. Other revenue sources are not considered measurable and available and are not treated as susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include accrued compensated absences and principal and interest on long -term debt. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1) Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2) Within eighty days of the certification of value, but not earlier than sixty -five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled -back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 39 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 140 SEPTEMBER 30, 2010 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED BUDGETS AND BUDGETARY DATA — CONTINUED 3) Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4) A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6) The County Manager approves intradepartmental budget changes less than $50,000 that do not alter the total expenditures of the department. All other budgetary changes must be approved by the Board of County Commissioners as a matter of policy. The initial adopted budget was amended in accordance with the Florida Statutes. 7). Florida Statute Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board funds except for agency funds and the Impact Fees Escrow special revenue fund. The Property Appraiser and the Tax Collector adopt. budgets for their general funds independently of the Board. The Clerk of Courts operates as a fee officer, and as such, prepares its budget in accordance with Section 218.35, Florida Statutes. The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the Board. The Clerk of Court's budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Florida Department of Revenue. 40 7 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 14 B 7" NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED BUDGETS AND BUDGETARY DATA — CONTINUED Budgets are adopted for all governmental funds except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non - budgeted revenues and expenses and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. CASH, CASH EQUIVALENTS AND INVESTMENTS The County maintains a cash and investment pool that is available for use by all funds. The Clerk of the Circuit Court administers the investment pool pursuant to an investment policy established by the Board of County Commissioners under Florida Statute, Section 218. Subsequent to the amendment of Florida Statute 28.33, interest is allocated monthly to each fund based on the individual fund's average daily balance in the pool. Pursuant to the provisions of GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, all investments are stated at fair value. Cash equivalents are short -term investments with maturities of three months or less from the date purchased. ACCOUNTS RECEIVABLE— UNBILLED REVENUE Unbilled charges for services are accrued in the County Water and Sewer, Emergency Medical Services and Goodland Water funds by prorating subsequent bills. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first -in, first -out method. Inventory in the governmental funds consists of supplies held for consumption and land. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are offset by a reserve, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government wide and proprietary fund financial statements are reported as an expense when consumed. 41 COLLIER COUNTY, FLORIDA 148 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED CAPITAL ASSETS Land, buildings, improvements and equipment are stated at cost. Capital contributions are recorded at their fair value on the date donated. Facilities constructed using system development impact fees, collected from developers and customers, are stated at cost. The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year. Expenditures for maintenance and repairs are charged to operating expenses. The cost of assets retired or sold, together with the related accumulated depreciation, is removed from the accounts and any gain or loss on disposition is credited or charged to earnings. Depreciation is calculated using the straight -line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Fixed Asset Estimated Useful Life Buildings 20 -45 years Infrastructure 3 -30 years Improvements other than buildings 4 -45 years Machinery and equipment 3 -10 years Costs incurred in the renourishment of beaches are included in the infrastructure class of capital assets and are capitalized and depreciated over three years. Infrastructure acquired prior to fiscal years ended June 30, 1980 is not reported. CAPITAL LEASE OBLIGATIONS In the government -wide financial statements and proprietary fund financial statements capital lease obligations and the related cost of assets acquired are reflected in the Statement of Net Assets. For capital lease obligations originating in governmental funds, an expenditure for the asset and the offsetting amount of the financing source is reflected in the fund financial statements in the year of inception. BOND PREMIUMS DISCOUNTS AND ISSUANCE COSTS Bond premiums; discounts and issuance costs for the governmental activities and the business -type activities are deferred and amortized over the term of the bonds using the straight -line method. Bond discounts are presented as a reduction of the face amount of bonds payable, premiums as an increase, while issuance costs are recorded as deferred charges, which are shown on the face of the Statement of Net Assets as a component of noncurrent assets. In the governmental fund financials, bond premiums, discounts and issuance costs are recognized in the current period. DEFEASANCE OF DEBT For refundings resulting in the defeasance of debt, generally accepted accounting principles require that the difference between the reacquisition price and the net carrying amount of the old debt be deferred and amortized over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. The straight -line method is used for amortization of the deferred charge. 42 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS I' SEPTEMBER 30, 2010 14 "B r NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED INTEREST COST In the proprietary funds, interest costs are expensed or capitalized as required by the interest Topic 835, Subtopic 20, Section 30 "Amount of Interest to be Capitalized" of the FASB Accounting Standards Codification. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2010 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1st delinquent date as follows: November - 4 %, December - 3 %, January - 2 %, and February - 1 %. Tax certificates for the full amount of any unpaid taxes must be sold not later than June 1st of each year. No accrual for the property tax levy becoming due in November 2010 is included in the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. Key dates in the property tax cycle for the fiscal year ended September 30, 2010 are as follows: Property Tax Cycle Date Assessment roll compiled Assessment roll certified Millage resolution approved Beginning of fiscal year for tax levy Taxes due and payable (levy date) Due date Delinquent (lien date) Tax certificates sold January 1, 2009 July 1, 2009 Within 35 days of the certification of the assessment roll October 1, 2009 November 1, 2009 March 31, 2010 April 1, 2010 Prior to June 1, 2010 APPLICATION OF FASB PRONOUNCEMENTS TO PROPRIETARY FUNDS In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the County has elected not to apply private sector guidance issued after November 30, 1989. ACCOUNTING ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. 43 COLLIER COUNTY, FLORIDA 14B NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED UNEARNED REVENUE AND DEFERRED REVENUE In instances where assets have been received by the County for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Examples of unearned revenues of the County as of September 30, 2010 are unspent State Housing Initiative Partnership (SHIP) monies and cash receipts associated with unspent advance grant agreements. Deferred revenue liabilities are reported in the governmental funds to offset receivables that do not meet the availability criterion under the modified accrual basis of accounting. Primary examples of the County's deferred revenues are amounts associated with SHIP loans made to qualifying organizations and deferred impact fee agreements made with developers and individuals. ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. It is the Board of County Commissioners' policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and 100% of allowable vacation hours at the current rate of pay. The Sheriff's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,000 hours, and up to 400 hours of unused vacation time. Both the Clerk of the Circuit Court's and Tax Collector's policy's allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 240 hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government -wide financial statements and the proprietary fund financials. A liability is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are considered due and payable as of yearend. IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS Effective October 1, 2009 the County adopted the provisions of GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, which establishes accounting and financial reporting standards for intangible assets. As a Phase I government for the purpose of implementing GASB Statement 34, Collier County has applied retroactive reporting for all material intangible assets_ except for those considered to have indefinite useful lives as of the effective date of the Statement and those considered to be internally generated. 44 7 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 14 NOTE 2 — CASH. CASH EQUIVALENTS AND INVESTMENTS As of September 30, 2010, the County had the following cash, cash equivalents and investments: Investment Cash on hand Demand deposits State Board of Administration Pool: Pool A Pool B FHLB - Multi Step Coupon US Treasury Note FHLMC - Multi Step Coupon FNMA FHLMC- Multi Step Coupon FHLMC - Multi Step Coupon FHLMC - Multi Step Coupon FNMA - Multi Step Coupon FHLMC- Multi Step Coupon FNMA - Multi Step Coupon FNMA - Multi Step Coupon FHLB - Multi Step Coupon FNMA - Multi Step Coupon Total !7 r Maturities Fair Value Call Date Call Frequency Rating N/A $ 92,605 N/A N/A N/A N/A 227,147,807 N/A N/A N/A N/A 712,243 N/A N/A AAAm N/A 20,354 N/A N/A N/A 10/5/2011 24,620,000 10/5/2010 one -time AAA 3/31/2012 10,098,800 none N/A AAA 6/7/2012 50,010,000 12/7/2010 one -time AAA 6/22/2012 25,320,250 none N/A - AAA 6/29/2012 37,536,000 12/29/2010 continuous AAA 10/12/2012 25,002,000 10/12/2010 continuous AAA 4/26/2013 10,553,481 10/26/2010 continuous AAA 7/28/2014 25,070,250 7/28/2011 continuous AAA 7/28/2015 132,174,240 1/28/2011 continuous AAA 7/28/2015 11,894,095 1/28/2011 continuous AAA 8/12/2015 50,406,500 8/12/2011 continuous AAA 8/25/2015 10,509,870 8/25/2011 continuous AAA 9/1/2015 50,047,000 9/1/2011 continuous AAA $ 691,215,495 The County maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is displayed on the balance sheet under the heading of Cash, Cash Equivalents and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County's investment practices are governed by Florida Statutes, Chapter 218 and the County's Investment Policy. The County's Investment Policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (SBA), direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation /Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers' acceptances rated "AA" or higher, prime commercial paper rated "A -1" and "P -1 ", tax - exempt obligations rated "AA" or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. 45 COLLIER COUNTY, FLORIDA jr B 74 NOTES TO THE FINANCIAL STATEMENTS �} SEPTEMBER 30, 2010 NOTE 2 — CASH. CASH EQUIVALENTS AND INVESTMENTS - CONTINUED The policy requires that each firm involved in a repurchase agreement must execute the County's master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. The SBA is an investment pool administered by the State Board of Administration, under the regulatory oversight of the State of Florida. The SBA operates two pools, Florida PRIME and Fund B Surplus Trust Fund (Fund B), with the Fund B carrying a AAAm rating from Standard & Poor's. At September 30, 2010, the Sheriff had $732,597 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool. Of this amount, $712,243 is invested in the Florida PRIME and $20,354 in Fund B. The Florida PRIME investment is fully liquid and carries a weighted average days to maturity of 52 days. Fund B is accounted for as a fluctuating net asset value pool and the fair value factor for September 30, 2010 was .70706. Fund B amount has a weighted average life of 7.49 years. Fund B cash holdings continue to be distributed to participants as they become available from maturities, sales and income received. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public Deposits Act ". Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range from 50% to 125% depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK The policy requires execution of a third -party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the County's name. At September 30, 2010, the County had demand deposits of $227,147,807. These demand deposits do not include discretely presented component unit deposits of $459,432. All balances in excess of the Federal Depository Insurance Corporation insurance for demand deposits are fully collateralized by the multiple financial institutions' collateral pool in accordance with Florida Statutes Section 280. INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years,.except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. 46 COLLIER COUNTY, FLORIDA MOTES TO THE FINANCIAL STATEMENTS a t SEPTEMBER 30, 2010 NOTE 2 — CASH. CAST; EQUIVALENTS AND INVESTMENTS - CONTINUED CONCENTRATION OF CREDIT RISK The County's investment policy establishes limitations on portfolio composition in order to control credit risk. The policy allows 100 percent of the portfolio to be invested in U.S. Government Securities, Agencies and Instrumentalities (excluding mortgage securities), 50 percent to be invested in SBA, 30 percent to be invested in certificates of deposit, 20 percent to be invested in qualifying repurchase agreements and 10 percent each in the categories of fixed income mutual funds, domestic bankers' acceptances, prime commercial paper and tax - exempt obligations. The portion of the County's portfolio invested in U.S. Government Instrumentalities is detailed as follows, at September 30, 2010: Percent of Issuer Portfolio Federal Home Loan Bank 5.08% Federal Home Loan Mortgage Corporation 36.93% Federal National Mortgage Association 23.54% Total U.S. Government Instrumentalities 65.55% Reconciliation of cash, cash equivalents and investments to the basic financial statements: Primary government: Cash, cash equivalents and investments Restricted cash, cash equivalents and investments - current Restricted cash, cash equivalents and investments - noncurrent Agencyfunds: Cash, cash equivalents and investments Total 47 $ 364,232,107 18,329,332 276,117,788 32,536,268 $ 691,215,495 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 7 NOTE 3 - TRADE RECEIVABLES Trade receivables for Governmental and Business -type Activities are net of an allowance for doubtful accounts as follows: General Fund Government Facilities Impact Fee Nonmajor Governmental Funds Total receivables reported in Governmental Funds Trade Allowance for Net Trade Receivables Doubtful Accounts Receivables $ 517,597 $ 94,825 $ 422,772 445 - 445 3,532,345 72,311 3,460,034 4,050,387 167,136 3,883,251 Total receivables reported in Internal Service Funds 154,595 10,867 143,728 Total Governmental Activities trade receivables $ 4,204,982 $ 178,003 $ 4,026,979 County Water and Sewer $ 6,231,944 $ 363,462 $ 5,868,482 Solid Waste Disposal 613,783 - 613,783 Nonmajor Enterprise Funds 3,590,855 3,766 3,587,089 Total Business -type Activities trade receivables $ 10,436,582 $ 367,228 $ 10,069,354 NOTE 4 - INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances to and advances from other funds at September 30, 2010 were as follows: Governmental Activities: General Fund Government Facilities Impact Fees Fund Other governmental funds: Community Development Fund Capital Improvement Revenue Bonds Fund Parks Improvement Fund County -Wide Capital Improvements Fund County -Wide Library Impact Fees Fund Correctional Facilities Impact Fees Fund Emergency Medical Services Impact Fees Fund Law Enforcement Impact Fees Fund Total Governmental Activities Business -type Activities: County Water and Sewer Solid Waste Disposal Total Business -type Activities Total Advances Advance Advance To From $ 9,317,325 $ - - 19,828,091 1,400,000 19;570,778 1,400,000 - 34,667,600 - - 9,715,125 - 2,408,700 - 2,333,900 - 13,688,000 45,384,925 68,944,594 18,550,000 - 5,009,669 - 23,559,669 - $ 68,944,594 $ 68,944,594 Advances are made to various funds for the purposes of capital improvements and the funding of certain surety requirements. Reimbursements will take place over the next several years. 48 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 1,49 SEPTEMBER 30, 2010 NOTE 4 - IINTERFUND PAYABLES AND RECEIVABLES — CONTINUED DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. Due from and due to other funds at September 30, 2010 were as follows:. Governmental Activities: General Fund Other Governmental Funds: Road Districts Unincorporated Area MSTD Community Development Water Management and Pollution Control Grants and Shared Revenues Improvement Districts Fire Control Districts Lighting Districts 911 Enhancement Fee Tourist Development State Housing Initiative Partnership State Court Administration Conservation Collier Other Special Revenue Funds Caribbean Gardens Loan Stormwater Improvement Assessment Bonds Limited General Obligation Conservation Collier Bonds Forest Lakes Limited General Obligation Bonds County -Wide Capital Improvements Parks Improvements Water Management Parks Impact Districts Road Impact Districts Road Construction Other Capital Projects Total other governmental funds Business -type Activities: County Water and Sewer Solid Waste Other Business -type funds: Emergency Medical Services Collier Area Transit Total other business -type funds Internal Service Funds Total All Funds 49 Due From Due To $ 4,159,299 $1,782,384 4,301 28 360,494 11,287 - 8,583 48,997 - 28,960 3,920,287 38,996 5,044 37,331 - 7,910 - - 135,901 114,033 915 - 246 32,224 - 92,933 - - 100,884 12,569 - 1,006 - 82,960 - 5,598 - - 161 36,374 55 - 331 - 69 - 1,489 215,215 - M A _ 1,1LV,L15 4,1tS5,LtSU 30,711 44,868 869,997 $ 6,225,090 277 26,257 244 225,893 226,137 4,755 $ 6,225,090 Less accumulated depreciation: Buildings COLLIER COUNTY, FLORIDA 13,682,283 (5,130) NOTES TO THE FINANCIAL STATEMENTS Infrastructure 198,209,144 SEPTEMBER 30, 2010 - 229,632,996 NOTE 5 — CAPITAL ASSETS 57,709,387 10,123,175 (1,513,334) A summary of capital asset activity for the year ended September 30, 2010 is as follows: 113,680,707 16,558,511 October 1, Deductions/ September 30, 451,598,290 2009 Additions Reclassifications 2010 Governmental Activities: 1,027,447,752 (52,014,321) 224,789,817 Capital assets not depreciated: Total Governmental Activities 29,066,196 3,193,553 Land and other non - depreciable assets $ 366,860,067 $ 7,813,168 $ 3,373,388 $ 378,046,623 Construction in progress 250,343,771 52,466,062 (229,847,961) 72,961,872 Total capital assets not depreciated 617,203,838 60,279,230 (226,474,573) 451,008,495 Capital assets depreciated: Buildings 418,380,224 4,064,268 11,971,340 434,415,832 Infrastructure 692,017,447 1,245,744 202,366,522 895,629,713 Improvements other than buildings 207,070,537 1,903,632 8,863,321 217,837,490 Machinery and equipment 161,577,834 12,559,856 (9,894,650) 164,243,040 Total capital assets depreciated 1,479,046,042 19,773,500 213,306,533 1,712,126,075 Less accumulated depreciation: Buildings 81,999,052 13,682,283 (5,130) 95,676,205 Infrastructure 198,209,144 31,423,852 - 229,632,996 Improvements other than buildings 57,709,387 10,123,175 (1,513,334) 66,319,228 Machinery and equipment 113,680,707 16,558,511 (9,964,820) 120,274,398 Total accumulated depreciation 451,598,290 71,787,821 (11,483,284) 511,902,827 Total depreciable capital assets, net 1,027,447,752 (52,014,321) 224,789,817 1,200,223,248 Total Governmental Activities 29,066,196 3,193,553 (1,664,919) 30,594,830 capital assets, net $ 1,644,651,590 $ 8,264,909 $ (1,684,756) $ 1,651,231,743 Business -type Activities: Capital assets not depreciated: Land and other non - depreciable assets $ 24,379,578 $ 45,000 $ (123,757) $ 24,300,821 Construction in progress 63,284,419 18,201,606 (15,226,113) 66,259,912 Total capital assets not depreciated 87,663,997 18,246,606 (15,349,870) 90,560,733 Capital assets depreciated: 291,220,910 36,228,423 (1,898,654) 325,550,679 Buildings 135,368,681 233,623 1,019,893 136,622,197 Improvements other than buildings 953,298,818 1,715,390 4,388,248 959,402,456 Machinery and equipment 29,066,196 3,193,553 (1,664,919) 30,594,830 Total capital assets depreciated 1,117,733,695 5,142,566 3,743,222 1,126,619,483 Less accumulated depreciation: Buildings 59,953,152 3,502,567 - 63,455,719 Improvements other than buildings 213,123,145 29,577,368 (374,165) 242,326,348 Machinery and equipment 18,144,613 3,148,488 (1,524,489) 19,768,612 Total accumulated depreciation 291,220,910 36,228,423 (1,898,654) 325,550,679 Total depreciable capital assets, net 826,512,785 (31,085,857) 5,641,876 801,068,804 Total Business -type Activities capital assets, net $ 914,176,782 $ (12,839,251) $ (9,707,994) $ 891,629,537 50 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 5 - CAPITAL ASSETS- CONTINUED Schedule of depreciation for fiscal year 2010: General Government $ 8,227,535 Public Safety 14,720,592 Physical Environment 7,024,953 Transportation 30,428,408 Economic Environment 28,924 Human Services 717,605 Culture and Recreation 8,568,082 Subtotal 69,716,099 Internal Service Funds 1, 2,071,722 Total Governmental Activities $ 71,787,821 Water and Sewer $ 32,817,396 Solid Waste 699,857 EMS 654,111 Airport Authority Reductions 888,016 Mass Transit 2010 1,169,043 Total Business -type Activities $ 36,228,423 NOTE 6 - LONG -TERM OBLIGATIONS SUMMARY OF CHANGES IN LONG -TERM OBLIGATIONS The following is a summary of changes in long -term obligations for the year ended September 30, 2010: 51 000's Omitted Premium or October 1, Discount /Loss September 30, Due within 2009 Additions Reductions Amortized, net 2010 one year Governmental Activities: Bonds and Loans Payable $ 519,414 $ 60,739 $ (94,008) $ (1,011) $ 485,134 $ 29,404 Arbitrage Rebate 315 - (315) - - - Capital Lease Obligations 599 - (160) - 439 170 Self- Insurance Claims 9,329 - (720) - 8,609 5,547 Net OPEB Obligation 1,381 103 - - 1,484 - Compensated Absences 21,786 7,733 (7,598) - 211,921 10,652 Total $ 552,824 $ 68,575 $ (102,801) $ (1,011) $ 517,587 $ 45,773 Business -type Activities: Bonds and Loans Payable $ 260,836 $ 17,846 $ (23,643) $ 180 $ 255,219 $ 11,853 Notes Payable 72 - - - 72 72 Arbitrage Rebate 994 - (994) - - - Capital Lease Obligations 492 323' (179) - 636 250 Landfill Closure Liability 1,914 - (13) - 1,901 - Compensated Absences 2,442 2,237 (2,023) - 2,656 1,859 Total $ 266,750 $ 20,406 $ (26,852) $ 180 $ 260,484 $ 14,034 51 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 6 - LONG -TERM DEBT - CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2010 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Limited General Obligation Bonds 14B $32,815,000 2005A Limited General Obligation Bonds, Conservation Collier Program, due in annual installments of $3,285,000 to $4,805,000 through January 1, 2013; interest at 3.00% to 5.00%. $ 13,735,000 $13,244,204 2008 Limited General Obligation Bonds, Conservation Collier Program, due in annual installments of $3,067,279 to $3,529,181 through January 1, 2013; interest at 4.14 %. 10,176,925 $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit, due in installments of $300,000 to $540,000 through January 1, 2022; interest at 3.75% to 4.25%., 5,250,000 Total Governmental Activities Limited General Obligation Bonds $ 29,161,925 Governmental Activities Revenue Bonds $47,430,000 2002 Capital Improvement Revenue Bonds due in annual installments of $1,780,000 to $2,830,000 through October 1, 2016; interest at 1.60% to 5.00 %. $ 27,740,000 $49,360,000 2003 Capital Improvement and Refunding Revenue Bonds due in annual installments of $1,130,000 to $2,570,000 through October 1, 2033; interest at 2.00% to 4.75 %. $167,200,000 2005 Capital Improvement and Refunding Revenue Bonds due in annual installments of $2,03$,000 to $7,240,000 through October 1, 2035; interest at 2.25% to 5.00 %. $102,125,000 2003 Gas Tax Revenue Bonds, due in annual installments of $1,495,000 to $6,865,000 through June 1, 2023; interest at 2.00% to 5.25 %. $96,255,000 2005 Gas Tax Revenue Bonds, due in annual installments of $445,000 to $13,985,000 through June 1, 2025; interest at 3.00% to 5.00%. $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to $3,860,000 through July 1, 2034; interest at 3.00% to 4.50 %. $1,870,000 1997 Naples Park Area Stormwater Improvement Assessment Bonds due in annual installments of $75,000 to $185,000 through September 1, 2012; interest at 6.45% fixed rate. Total Governmental Activities Revenue Bonds 52 36,910,000 143,635,000 59,340,000 93,590,000 59,895,000 175,000 $ 421,285,000 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 1413 � SEPTEMBER 30, 2010 NOTE 6 - LONG -TERM DEBT - CONTINUED DESCRIPTIONS OF BONDS LOANS AND NOTES PAYABLE- CONTINUED Governmental Activities Loans and Notes Payable $12,000,000 Florida Department of Transportation State Infrastructure Bank Loan, due in annual installments of $1,839,148 to $4,414,096 through October 1, 2012; interest at 2.0 %. $ 8,203,474 $13,500,000 Bayshore Gateway Community Redevelopment Agency Taxable Note, due September 1, 2014; monthly variable interest rate of 30 -Day LIBOR plus 3.75 %. 11,486,000 Total Governmental Activities Loans and Notes Payable 19,689,474 Total Governmental Activities Obligations 470,136,399 Unamortized Bond Discount (506,061) Unamortized Bond Premium 15,691,991 Deferred Loss on Bond Refunding (188,439) Governmental Activities Obligations, Net 485,133,890 Less Current Portion of Governmental Activities Obligations (29,403,527) Long -Term Portion of Governmental Activities Obligations, Net $ 455,730,363 BUSINESS -TYPE ACTIVITIES Business -type Activities Revenue Bonds $33,630,000 2003B County Water and Sewer Refunding Revenue Bonds due in annual installments of $1,410,000 to $4,125,000 through July 1, 2021; interest at 4.25% to 5.50 %. $ 28,660,000 $110,165,000 2006 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,310,000 to $8,695,000, commencing July 1, 2017 through July 1, 2036; interest at 4.00% to 5.00 %. 110,165,000 $11,727,489 2009 Collier County Water and Sewer Revenue Bonds due in annual installments of $1,569,324 to $1,817,005, commencing July 1, 2010 through July 1, 2016; interest at 2.97 %. 10,158,165 Total Business -type Activities Revenue Bonds $ 148,983,165 53 COLLIER COUNTY, FLORIDA MOTES TO THE FINANCIAL STATEMENTS 14B SEPTEMBER 30, 2010 74 NOTE 6 - LONG -TERM DEBT - CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE — CONTINUED Business -Type Activities Loans and Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer system development fee credits. Non - interest bearing agreement. $ 71,675 $14,547,667 County Water and Sewer District State Revolving Fund Loan, interest payable at 4.25% payable in 20 semiannual payments commencing October 1, 1992. 1,993,921 $13,292,898 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.65% payable in 40 semiannual payments commencing January 15, 1999. 6,339,179 $22,238,677 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing November 15, 2001. 13,577,249 $5,160,675 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing October 15, 2004. 3,925,323 $6,560,956 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing January 15, 2005. 4,987,042 $29,224,004 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.95% payable in 40 semiannual payments commencing June 15, 2006. 24,049,234 $10,525,509 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.90% payable in 40 semiannual payments commencing September 15, 2006. 8,295,196 $5,445,223 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.92% payable in 40 semiannual payments commencing December 15, 2005. 4,384,830 $5,188,500 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.74% payable in 40 semiannual payments commencing November 15, 2007. 3,602,332 $7,123,496 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.75% and 2.64% payable in 40 semiannual payments commencing April 15, 2008. 4,940,807 $17,577,022 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.64% and 2.79% payable in 40 semiannual payments commencing August 15, 2008. 16,174,642 $11,637,070 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.64% and 2.79% payable in 40 semiannual payments commencing October 15, 2009. 11,373,978 54 COLLIER COUNTY, FLORIDA 14 tfiml NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 MOTE 6 - LONG -TERM DEBT - CONTINUED DESCRIPTIONS OF BONDS LOANS AND NOTES PAYABLE — CONTINUED $3,294,890 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.79% payable in 40 semiannual payments commencing December 15, 2009. 2,793,739 Total Business -type Activities Loans and Notes Payable $ 106,509,147 Total Business -type Activities Obligations $ 255,492,312 Unamortized Bond Premium 4,445,607 Deferred Loss on Bond Refunding (4,646,783) Business -type Activities Obligations, Net $ 255,291,136 Less Current Portion of Business -type Activities Obligations Payable from Unrestricted Assets (9,352,464) Less Current Portion of Business -type Activities Obligations Payable from Restricted Assets (2,572,541) Long -Term Portion of Business -type Activities Obligations, Net $ 243,366,131 SUMMARYOF DEBTSERVICE REQUIREMENTSTO MATURITY The total annual debt service requirements to maturity of long -term debt, excluding compensated absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows: Governmental Activities 7 Fiscal Year Limited General Obligation Bonds Revenue Bonds Loans and Notes Payable Totals Principal Interest Principal Interest Principal Interest 2011 $ 7,962,597 $ 1,137,371 $ 18,665,000 $ 19,250,486 $ 2,775,930 $ 925,281 $ 50,716,665 2012 8,330,147 763,174 19,405,000 18,561,293 2,813,449 825,894 50,698,957 2013 8,714,181 371,544 19,335,000 17,697,993 5,314,095 725,758 52,158,571 2014 390,000 163,475 17,495,000 16,874,426 8,786,000 575,608 44,284,509 2015 410,000 147,475 17,710,000 16,059,296 - - 34,326,771 2016 -20 2,295,000 471,475 101,755,000 66,952,867 - - 171,474,342 2021 -25 1,060,000 45,475 119,375,000 40,524,254 - - 161,004,729 2026 -30 - - 49,435,000 19,444,632 - - 68,879,632 2031 -35 - - 51,575,000 7,603,724 - - 59,178,724 2036 -40 - - 6,535,000 151,121 - - 6,686,121 Totals $ 29,161,925 $ 3,099,989 $ 421,285,000 $ 223,120,092 $ 19,689,474 $ 3,052,541 $ 699,409,021 55 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS .0 71 SEPTEMBER 30, 2010 NOTE 6 - LONG -TERM DEBT— CONTINUED SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY— CONTINUED Business -type Activities Fiscal Loans and Year Revenue Bonds Notes Payable Totals Principal Interest Principal Interest 2011 $ 4,969,157 $ 6,710,800 $ 6,955,847 $ 3,027,016 $ 21,662,820 2012 5,188,936 6,494,196 7,103,166 2,814,904 21,601,202 2013 5,422,044 6,267,614 6,261,502 2,595,968 20,547,128 2014 5,630,093 6,058,578 6,442,535 2,414,936 20,546,142 2015 5,885,930 5,792,443 6,628,818 2,228,653 20,535,844 2016 -20 19,867,005 25,942,803 34,323,887 8,190,507 88,324,202 2021 -25 24,265,000 21,150,125 29,729,420 3,485,371 78,629,916 2026 -30 30,790,000 14,623,900 9,063,972 407,747 54,885,619 2031 -35 38,270,000 7,144,977 - - 45,414,977 2036 -40 8,695,000 386,928 - - _ _ 9,081,928 Totals $ 148,983,165 $ 100,572,364 $ 106,509,147 $ 25,165,102 $ 381,229,778 LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. RESTRICTIVE COVENANTS According to the official statements and County resolutions authorizing the issuance of the Series 2002, 2003 and 2005 Capital Improvement Revenue and Refunding Revenue Bonds, as well as the Series 2003 and 2005 Gas Tax Revenue Bonds, the issues are payable from and secured by liens on the local government half -cent sales tax and gas tax revenues, respectively. During fiscal year 2008 Collier County experienced insurer rating downgrades on its Series 2002, 2003 and 2005 Capital Improvement Revenue Refunding Bonds. The covenants related to these issues require that in the event of an insurer downgrade below "A ", by either Moody's or Standard and Poor's, the County must fund a cash reserve to replace the surety within twelve months. By September 30, 2009 Collier County was required to fund the reserve in the amount of $19,570,777, which represents the maximum remaining annual debt service on the outstanding Capital Improvement Bonds and which is included in non - current restricted cash, cash equivalents and investments in the Statement of Net Assets. The County used internal borrowings to achieve the required reserve funding and the reserve remained funded as of September 30, 2010. Interest earned on the reserve is assigned to the funds from which the advances were made. All required principal and interest payments have been made in a timely manner on these bonds and the County's pledged coverage on these bonds was 1.39 for the fiscal year ended September 30, 2010. For further information please see Note 18, Subsequent Events. During fiscal year 2010, Collier County issued the Series 2010 Special Obligation Revenue Bonds. According to the official statements and County resolutions authorizing the issuance of these bonds, the County has covenanted and agreed, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment, if necessary, from non -ad valorem revenues amounts sufficient to pay the principal and interest on the Series 2010 Bonds. Putt COLLIER COUNTY, FLORIDA 14 B 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 6 -LONG-TERM DEBT — CONTINUED RESTRICTIVE COVENANTS — CONTINUED The 1997 Naples Park Area Stormwater Improvement Assessment Bonds are limited special obligations of the County, payable solely from the proceeds of stormwater improvement assessments. Tax increment revenues and a covenant to budget and appropriate from all legally available CRA non -ad valorem revenues is pledged for the repayment of the Bayshore Gateway Community Redevelopment Agency's taxable note. The average of actual receipts and cash carried forward from the previous year must cover annual debt service requirements by 125 %. The agency was in compliance with this covenant for the year ended September 30, 2010. Water and sewer revenue bonds are payable solely from and secured by a first lien upon and pledge of the net revenues and certain other fees and charges derived from operation of the County's water and sewer system. The pledge of net revenues derived by the County from the operation of the system does not constitute a lien upon the system or any other property of the County. The covenants of the resolutions authorizing the County Water and Sewer District Bonds, Series 2009, Series 2006 and 2003B include an obligation for the County to fix, establish and maintain such rates and collect such fees, rentals or other charges for the services and facilities of the water and sewer system, and to revise the same whenever necessary, so as to provide in each year net revenues, as defined in the resolutions authorizing the revenue bonds, which together with system development fees and special assessment proceeds received shall be adequate to pay at least 125% of the annual debt service requirements for the Water and Sewer Bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service for the bonds. In addition, bond covenants require a renewal and replacement amount equal to $300,000 to be set aside in the County Water and Sewer District Funds. The water and sewer funds were in compliance with these covenants for the year ended September 30, 2010. The Collier County Water and Sewer District has several State Revolving Fund loans outstanding with the Florida Department of Environmental Protection. These loans are collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and system development fees. The lien shall be subordinate in all respects to liens placed upon pledged revenues established by bonded indebtedness. The County Water and Sewer District shall maintain rates and charges for services which together with system development fees sufficient to pay 115% of the annual debt service requirements on the loans, as well as satisfy the coverage requirements of all senior debt obligations. The County Water and Sewer District State Revolving funds were in compliance with these covenants for the year ended September 30, 2010. INTEREST CAPITALIZED Interest costs on the long -term debt of business -type activities, including capitalized leases, incurred and capitalized during the year ended September 30, 2010 were as follows: Total Interest Cost Incurred Business -type Activities $ 9,754,676 Interest Cost Capitalized $ 399,454 Interest expense is shown as a direct expense of the Business -type Activities. 57 Net Interest Expense $ 9,355,222 COLLIER COUNTY, FLORIDA MOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 3®, 2 ®1® NOTE 6 - LONG -TERM DEBT— CONTINUED LEASE OBLIGATIONS M 4. i t M ) 1) Capitalized leases payable at September 30, 2010 amounted to $1,075,442. These obligations, which are collateralized by equipment and vehicles, have annual installments ranging from $35,231 to $131,773 including interest ranging from 4.26% to 7.21% and mature through 2015. As of year end, equipment leased under capital leases in the Government Activities had a historical cost of $1,341,358 and accumulated depreciation of $1,238,342. Equipment leased under capital leases in the Business - type Activities had a historical cost of $1,147,591 and accumulated depreciation of $372,339. Future minimum capital lease obligations as of September 30, 2010 were as follows: 2011 2012 2013 2014 2015 Total minimum lease payments Less amount representing interest Present value of minimum lease payments NOTE 7 - CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT Governmental Activities Business -type Activities Total $ 190,660 $ 272,917 $ 463,577 104,821 225,004 329,825 77,920 140,406 218,326 77,920 41,575 119,495 35,231 - 35,231 486,552 679,902 1,166,454 (47,456) (43,556) (91,012) $ 439,096 $ 636,346 $ 1,075,442 The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi - family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuer, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. 58 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 1" � " � SEPTEMBER 30, 2010 NOTE 7 - CONDUIT DEBT OBLIGATIONS — CONTINUED COMPONENT UNIT CONDUIT DEBT— CONTINUED As of September 30, 2010 the outstanding principal amount payable on all component unit conduit debt was $301,620,644 and is made up of the following: Industrial development revenue bonds $ 73,525,644 Housing finance revenue bonds 71,270,000 Health facilities revenue bonds 83,870,000 Educational facilities revenue bonds 72,955,000 Total $ 301,620,644 On October 15, 2009, an event of default occurred on $2,615,000 of outstanding industrial development revenue bonds. Pursuant to the terms of the trust indenture the maturity of the bonds was accelerated and a line of credit was drawn upon as of October 20, 2009 to pay all remaining principal and interest on the bonds. All bondholders were paid in full and neither the County nor the issuer is obligated in any manner. NOTE 8 - DEFEASED DEBT The County has defeased certain outstanding bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all future debt service payments on the defeased debt. Accordingly, the trust accounts and the defeased bonds are not included in the County's financial statements. At September 30, 2010 the following issues were considered defeased: Governmental Activities 1986 Capital Improvement Program Revenue Bonds, Sub - Series 5 Mode A 2003 Capital Improvement and Refunding Revenue Bonds Total Governmental Activities Defeased Debt Business -type Activities Original Debt Defeased Bonds Defeased Outstanding $ 12,245,000 $ 3,575,000 4,360,000 4,065,000 $ 16,605,000 $ 7,640,000 Original Debt Defeased Defeased Bonds Outstanding 1983 County Water and Sewer District Refunding Bonds $ 22,000,000 $ 3,670,000 On October 8, 2009 the Collier County Water and Sewer District issued the $11,727,489 Collier County Water -Sewer District Water and Sewer Refunding Revenue Bond, Series 2009 for purposes of currently refunding all of the outstanding Collier County Water and Sewer District's Series 1999B bonds. The bonds were issued on parity with existing County Water and Sewer debt and pay a fixed rate of interest of 2.97% through their maturity on July 1, 2016. The current refunding achieved a net present value savings of 5.32% on the refunded bonds. 59 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 1 148 ? SEPTEMBER 30, 2010 NOTE 9 — PENSION PLAN OBLIGATIONS RETIREMENT PLAN Substantially all full time and part time employees of the County are eligible to participate in the State of Florida Retirement System (the System), a cost sharing, multiple employer program administered by the State of Florida, Division of Retirement. The System provides two retirement plans from which eligible employees can choose: the Pension Plan (defined benefit) and the Investment Plan (defined contribution). The County follows the provisions of GASB 27, Accounting for Pensions by State and Local Governmental Employers, as described in the following disclosure. PLAN DESCRIPTION Employees who are regular risk members and retire at or after age 62 with 6 years of credited service, or with 30 years of service regardless of age, are entitled to a retirement benefit, payable monthly for life, equal to 1.6 percent of their average final compensation for each year of credited service. Final average compensation is the employee's average of the five highest years of salary earned during credited service. Vested employees may retire before age 62 and receive benefits that are reduced 5 percent for each year prior to normal retirement age or date. The System also provides death and disability benefits as well as annual cost -of- living adjustments to plan participants and beneficiaries. The Florida Legislature established the System under Chapter 121, Florida Statutes and has sole authority to amend benefit provisions. Special Risk Class members qualify for normal retirement with 6 years of special risk service and age 55 or with 25 years of special risk service at any age. The monthly benefit payable is equal to 2 -3 percent of their average final compensation for each year depending on the percent in effect during the service period. Vested employees may retire before age 55 and receive benefits that are reduced 5 percent for each year prior to normal retirement age or date. The Deferred Retirement Option Program (DROP) is a program that provides an alternative method for payment of retirement benefits for a specified and limited period for members of the System, effective July 1, 1998. Under this program, the employee may retire and have their benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while continuing to work for a System employer. The act of participating in the program does not change the individual employee's employment conditions. When the DROP period ends, a maximum of 60 months, employment must be terminated. At the time of termination of employment, the employee will receive payment of the accumulated DROP benefits, and begin receiving their monthly retirement benefit (in the same amount determined at retirement, plus annual cost -of- living increases). The System publishes an annual report that provides ten -year historical trend information regarding progress made in accumulating sufficient assets to pay benefits when due. The report may be obtained by writing the Division of Retirement, Research, Education and Policy Section, 1317 Winewood Boulevard, Tallahassee, Florida 32315 -9000, or by calling (866) 738 -2366, or accessing their internet site at www.dms.mvflorida.com. [ci11 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS la4 # SEPTEMBER 30, 2010 NOTE 9 — PENSION PLAN OBLIGATIONS - CONTINUED FUNDING POLICY The Systern is non - contributory for employees and the County is required to contribute at an actuarially determined rate. The current rate is 23.25% for special risk employees, 18.649,o' for county elected officials, 10.77% for regular employees, 14.57% for senior management and 12.25% for DROP employees of annual covered payroll. The contributions of the County are established by the State Legislature and therefore subject to amendment. The County's contributions to the System for the years ending September 30, •2010, 2009 and 2008 are represented in the table below. The County's contributions were equal to the required contributions for each year. General Fund Community Redevelopment Nonmajor Governmental Funds County Water and Sewer Solid Waste Disposal Nonmajor Enterprise Funds Internal Service Funds Totals NOTE 10 — TRANSFERS FY -2010 FY -2009 FY -2008 $ 18,772,784 $ 18,878,678 $ 18,842,653 49,919 48,712 24,511 7,105,137 4,648,503 4,995,385 1,640,191 1,574,521 1,549,255 119,386 113,447 103,541 2,637,057 2,570,903 2,489,566 487,388 217,901 204,365 $ 30,811,862 $ 28,052,665 $ 28,209,276 Transfers for the year ended September 30, 2010 were as follows: Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Nonmajor Governmental Funds $ 38,931,614 County Water and Sewer 4,965 Solid Waste Disposal 44,868 Nonmajor Business -type 13,579,300 Government Facilities Impact Fee Nonmajor Governmental Funds 5,440,659 Community Redevelopment Nonmajor Governmental Funds 1,632,944 Nonmajor Governmental Funds General Fund 3,244,187 Community Redevelopment 383,961 Nonmajor Governmental Funds 49,811,753 County Water and Sewer 52,700 Nonmajor Business -type 1,778,000 Business -type Activities: County Water and Sewer General Fund 3,712,984 Solid Waste Disposal General Fund 5321172 County Water and Sewer 1,405,500 Nonmajor Business -type Nonmajor Governmental Funds 3,000 County Water and Sewer 76,200 Internal Service Fund General Fund 1,700,000 Totals $ 122,334,807 61 COLLIER COUNTY, FLORIDA 14 B 19& MOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 10— TRANSFERS — CONTINUED Transfers between funds move unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations and to move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as payments become due. NOTE 11. —NET ASSETS /FUND BALANCES Net assets represent the difference between total assets and liabilities and are categorized as follows: Invested in capital assets, net of related debt: Total capital assets, net of debt issued in the acquisition of these assets and net of depreciation is reported separately in the net assets section. Restricted for growth related capital expansion: Impact fee and system development charges restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for Conservation Collier: One quarter mill of ad valorem revenues restricted for the purchase of environmentally sensitive land. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long -term debt. Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of County Water and Sewer District Bonds. The use of monies in the renewal and replacement fund is restricted to funding the cost of additions, replacement or major repair of water and wastewater capital assets. Unrestricted: Balances are not restricted for specific purposes. The following categories are used to report governmental fund balances in the fund financial statements. Fund Balances Reserved /Unreserved Reserved for prepaid costs: Balances represent insurance, travel and other expenses paid in advance and which are not considered available and spendable resources. Reserved for inventory: Balances represent items not considered available and spendable resources. 62 COLLIER COUNTY, FLORIDA F NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 11— NET ASSETS /FUND BALANCES — CONTINUED Reserved for advances to other funds: Balances represent long -term advances made to other funds which do not constitute expendable and available financial resources. Reserved for encumbrances: Balances are segregated for expenditure upon vendor performance. Reserved for debt service: Balances represent monies legally restricted to the payment of principal and interest on long -term debt. Unreserved, reported in general fund: Balances in the general fund not reserved for specific purposes. Unreserved, reported in special revenue funds: Balances in the special revenue funds not reserved for specific purposes. Unreserved, reported in debt service funds: Balances in the debt service funds not reserved for specific purposes. Unreserved, reported in capital project funds: Balances in the capital project funds not reserved for specific purposes. NOTE 12 - RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self- insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self - insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self - insurance fund and for all other covered risks of loss. Claim Type Property and casualty claims Auto liability claims Employee health claims Workers' compensation claims County's Coverage $50,000 - $500,000 (5% Named Storm) $200,000 $225,000 $500,000 Excess Carrier's Coverage $50,000 - $125,000,000 $200,000 - $1,000,000 $225,000 - $2,000,000 $500,000 - $25,000,000 Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2010 the operating departments were charged $31,455,308 for workers' compensation, health and property and casualty self- insurance programs. 63 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 140 7 SEPTEMBER 30, 2010 NOTE 12- RISK MANAGEMENT- CONTINUED The claims loss reserve for workers' compensation, health and property and casualty of $6,455,000 reported at September 30, 2010 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were discounted at 3.5 %. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $3,393,417 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self- Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self- Insurance Fund provides liability insurance coverage subject to the following limitations: $3,100,000 for any claim involving a single individual, $3,200,000 for any incident which involves multiple claims and aggregate, $5,000,000 ultimate net loss per Sheriff during any policy period. The Sheriff also participates in the Statewide Florida Sheriff's Self- Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self - insurance fund providing coverage for the first $500,000 of every claim. Re- insurance is provided through a third party insurer for all claims exceeding $500,000 up to $10,000,000 and an aggregate of $500,000 depending on type of bodily injury. Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self- insured risks are reported in the basic financial statements of the Statewide Florida Sheriff's Self- Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. The Sheriff has also established a self- funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $175,000 up to $2,000,000. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims. The claims loss reserve for health of $2,154,000 reported at September 30, 2010 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is recorded as a current liability. 64 COLLIER COUNTY, FLORIDA � NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 12 - RISK MANAGEMENT - CONTINUED CHANGES IN SELF - INSURANCE CLAIMS PAYABLE Changes in the self- insurance claims payable for fiscal years 2009 and 2010 were as follows for the County and Sheriff self- insurance programs: NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS Plan Description -The Board and the Tax Collector administer a single - employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the County, be at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan. The Tax Collector offers an 0PEB plan that subsidizes 100% the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement. Additionally, in accordance with Florida Statute 112.0801, County employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group rate as for active employees. The plan does not issue a publicly available financial report. In 2010 Board employees meeting certain eligibility requirements were offered access to a Voluntary Separation Incentive Program (VSIP). The requirements for eligibility were that the employee had to be eligible to retire without penalty under FRS. Eligible employees had three options under VSIP. Option 1: Medical and dental coverage for a period of three years, with employee enrollment in the plans as of the date the election is made. If the employee has waived coverage, the employee will be enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level. The Board will cover costs including both the employer and employee portions of the medical and dental premiums during the coverage period. 65 Property and Group Workers' Casualty Health Compensation Total Balance at September 30, 2008 $ 2,230,000 $ 5,206,000 $ 2,850,000 $ 10,286,000 Current year claims incurred and changes in estimates 1,226,571 38,918,275 378,061 40,522,907 Claim payments (1,425,571) (38,850,275) (1,204,061) (41,479,907) Balance at September 30, 2009 2,031,000 5,274,000 2,024,000 9,329,000 Current year claims incurred and changes in estimates 303,958 43,710,123 318,880 44,332,961 Claim payments (955,958) (43,583,123) (513,880) (45,052,961) Balance at September 30, 2010 $ 1,379,000 $ 5,401,000 $ 1,829,000 $ 8,609,000 NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS Plan Description -The Board and the Tax Collector administer a single - employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the County, be at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan. The Tax Collector offers an 0PEB plan that subsidizes 100% the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement. Additionally, in accordance with Florida Statute 112.0801, County employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group rate as for active employees. The plan does not issue a publicly available financial report. In 2010 Board employees meeting certain eligibility requirements were offered access to a Voluntary Separation Incentive Program (VSIP). The requirements for eligibility were that the employee had to be eligible to retire without penalty under FRS. Eligible employees had three options under VSIP. Option 1: Medical and dental coverage for a period of three years, with employee enrollment in the plans as of the date the election is made. If the employee has waived coverage, the employee will be enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level. The Board will cover costs including both the employer and employee portions of the medical and dental premiums during the coverage period. 65 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 14B 70, SEPTEMBER 30, 2010 NOTE 13— OTHER POSTEMPLOYMENT BENEFITS -CONTINUED Option 2: Employee receives a cash incentive in lieu of three years of medical and dental benefits. The employee will receive a cash payment equivalent to 50% of the average value of three years' medical and dental plan premiums, less applicable payroll taxes. Option 3: Employee receives medical and dental benefits until they reach age 65 with a cash incentive for remaining months under the plan. The employee is enrolled in the plans as of the date the election is made. If the employee has waived coverage, the employee will be enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level. The Board will cover costs including both the employer and employee portions of the medical and dental premiums during the coverage period. As of the first of the month following the date when an employee reaches age 65, the employee will be entitled to receive a one -time cash payment equivalent to 50% of the average monthly value of the medical and dental plan premiums, less applicable payroll taxes, for the remaining months in which the employee is eligible to participate under the plan. At September 30, 2010, the date of the latest actuarial valuation, County plan participation consisted of: OPEB plan participants 2,261 Retirees receiving benefits 118 Funding Policy - The County has the authority to establish and amend funding policy. For the year ended September 30, 2010, the County contributed $719,310 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation - The annual cost of the County's OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the County's annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution (ARC) Interest on net OPEB obligation Adjustment to ARC Annual OPEB cost Contributions made Decrease in net OPEB obligation Net OPEB obligation - beginning of year Net OPEB obligation - end of year Fiscal Year 2010 $ 661,962 10,651 (17,585) 655,028 Fiscal Year Fiscal Year 2009 2008 $ 661,962 $ 514,423 6,839 - (11,293) - 657,508 514,423 (719,310) (658,599) (158,312) (64,282) (1,091) 356,111 355,020 356,111 - $ 290,738 $ 355,020 $ 356,111 66 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS � M14 SEPTEMBER 30, 2010 " 74 NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS - CONTINUED Funded Status and Funding Progress - The contributions made for the 2010 fiscal year were 110% of the annual OPEB cost. As of the September 30, 2009 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $5,814,470, and the actuarial value of plan assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $5,814,470. As of the September 30, 2010 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $5,825,874, and the actuarial value of plan assets was $0, resulting in a UAAL of $5,825,874. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $159.3 million, and the ratio of the UAAL to the covered payroll was 3.7 %. Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long -term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions are: Actuarial cost method Amortization method Amortization period Investment rate of return Discount rate Healthcare cost trend rate Projected Unit Credit Actuarial Cost Level Dollar Amount 30 years, Closed 3% 3% 8% for the 2011 fiscal year grading to an ultimate rate of 5% for the 2017 fiscal year Plan Description - The Sheriff administers a single - employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost of health care for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for single coverage and 21% for family coverage for qualifying individuals. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. The plan does not issue a publicly available financial report. 67 COLLIER COUNTY, FLORIDA 4 123h NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER ;0, 2010 NOTE 13— OTHER POSTEMPLOYMENT BENEFIT'S -CONTINUED In 2010, employees meeting certain eligibility requirements were offered an Early Voluntary Separation Program. Eligibility requirements were that the employee had to be eligible to retire without penalty under FRS or have 20 years of service with the Sheriff's Office, have a specified base salary and meet the requirements for retirement in good standing. In addition, employees had to meet the eligibility requirements prior to May 17, 2010 and retire no later than September 30, 2010. Eligible employees had the following options: Option 1: Medical coverage for a period of 30 months at no more than the current coverage level. If the employee had waived coverage, he /she would be eligible for single coverage. Option 2: A one -time payment of 50% of the value of medical coverage in lieu of 30 months of coverage. Option 3: A combination of insurance coverage and a cash payment. Employee could then supplement with the conversion of 100% of accumulated sick leave to additional coverage beyond the 30 month period. At September 30, 2010, the date of the latest actuarial valuation, Sheriff plan participation consisted of: OPEB plan participants 1,188 Retirees receiving benefits 99 Funding Policy - The Sheriff has the authority to establish and amend funding policy. For the year ended September 30, 2010, the Sheriff contributed $985,790 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation - The annual cost of the Sheriff's OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the Sheriff's annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution (ARC) Interest on net OPEB obligation Adjustment to ARC Annual OPEB cost Contributions made Increase in net OPEB obligation Net OPEB obligation - beginning of year Net OPEB obligation - end of year Fiscal Year Fiscal Year Fiscal Year 2010 2009 2008 $ 1,108,742 $ 1,363,461 $ 1,019,866 30,794 16,496 - (50,844) (27,236) - 1,088,692 1,352,721 1,019,866 (985,790) (876,138) (469,998) 102,902 476,583 549,868 1,026,451 549,868 - $ 1,129,353 $ 1,026,451 $ 549,868 W COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 14, B SEPTEMBER 30, 2010 NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS - CONTINUED Funded Status and Funding Progress - The contributions made for the 2010 fiscal year were 91% of the annual OPEB cost. As of the September 30, 2009 actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $14,171,709, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $14,171,709. As of the September 30, 2010 actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $12,148,033, and the actuarial value of assets was $0, resulting in a UAAL of $12,148,033. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $117.9 million, and the ratio of the UAAL to the covered payroll was 10.3 %. Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long -term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions are: Actuarial cost method Projected Unit Credit Actuarial Cost Amortization method Level Dollar Amount Amortization period 30 years, Closed Investment rate of return 3% Discount rate 3% Healthcare cost trend rate 10% for the 2011 fiscal year grading to an ultimate rate of 5% for the 2021 fiscal year .• 7 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 14 g 74 SEPTEMBER 30, 2010 NOTE 14— LANDFILL LIABILITY On May 1, 1995 the County entered into a landfill operating agreement with a third party for the privatization of the County's landfill operations. Under the contract, the third party is responsible for the daily operations, capital improvements, closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been- established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County's estimated liability in connection with the landfills is included in the proprietary funds statement of net assets. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost. The County has funded an escrow account with Fifth Third Bank in the amount of $11,503, as of September 30, 2010, to comply with Rule 62- 701.630, Florida Administrative Code for the inactive Eustis Avenue Landfill site. These funds bear interest and are restricted for the exclusive use of the Eustis Avenue Landfill site's long -term care. There were no deposits, other than interest, or withdrawals from this account in fiscal year 2010. NOTE 15- SIGNIFICANT CONTINGENCIES LITIGATION The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the County. Litigation between the Clerk of the Circuit Court and the Board of County Commissioners regarding the role of the Clerk of the Circuit Court as County Auditor ended on November 10, 2010 when the Florida Supreme Court dismissed the appeal filed by the Board of County Commissioners. STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. There was no arbitrage rebate liability as of September 30, 2010. 70 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 16 - SIGNIFICANT COMMITMENTS CONSTRUCTION COMMITMENTS Collier County has active construction projects as of September 30, 2010. The projects include road construction, governmental facilities and utilities improvements. At year end the County's commitments with contractors includes the following: NOTE 17 — FUND DEFICITS The following funds had fund balance deficits at September 30, 2010: Fund Amount Future $ (12,497,194) Category Commitments Governmental Activities: (807,436) Emergency Medical Service Impact Fee General Fund Natural resource planning $ 1,415,246 Government Facilities Impact Fee Buildings 1,235,946 Community Redevelopment Economic development 480,165 Other Governmental Funds Beach restoration 585,726 Buildings 867,848 Parks 1,469,912 Roads 45,692,222 Stormwater drainage 4,002,373 Business -type Activities: Water and Sewer Utilities 18,847,522 Solid Waste Disposal Landfill expansion 469,659 Nonmajor Enterprise Funds Mass Transit 179,656 Airports 217,104 Total $ 75,463,379 NOTE 17 — FUND DEFICITS The following funds had fund balance deficits at September 30, 2010: Fund Amount Government Facilities Impact Fee $ (12,497,194) County -Wide Library Impact Fee (5,585,777) Correctional Facilities Impact Fee (807,436) Emergency Medical Service Impact Fee (1,254,875) Law Enforcement Impact Fee (10,475,567) Total $ (30,620,849) The fund balance deficits are primarily the result of advances from other funds made prior to September 30, 2010. These advances were recorded to ensure repayment of non - impact fee monies loaned to the impact fee fund for the construction of growth necessitated facilities. County management anticipates that the deficits will be covered by future years' impact fee revenues. 71 IJ COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2010 NOTE 1S— IMPAIRMENT OF CAPITAL ASSET 148 71 The Collier County Water -Sewer District has recorded an impairment of the value of its South Reverse Osmosis Raw Water Wellfield due to the failure of a raw water transmission pipeline. The pipeline was less than one year into its service life at the time of the failure. As a result of this pipeline failure, the Water -Sewer District lost the raw water supply from twenty -three wells. The estimated cost of restoring the wellfield was used to calculate the value of the impairment. The resulting loss of $9,247,207 was charged to the Water -Sewer District's Statement of Revenues, Expenses and Changes in Fund Net Assets as a non - operating expense and to the government wide Statement of Activities as a program expense. The remaining net book value of the wellfield as of September 30, 2010 was $46,325,641. The asset is currently idle, but the County Water -Sewer District expects to have the wellfield completely restored during fiscal year 2012. On November 19, 2010, the Water -Sewer District, through outside counsel, filed suit against the project's contractor and surety. Damages sought in this action are currently estimated at $9,000,000. NOTE 19— SUBSEQUENT EVENTS On November 30, 2010 Collier County issued the Series 2010B Special Obligation Refunding Revenue Bonds in the par amount of $24,620,000. These bonds were issued for the purpose of advance refunding all of the County's outstanding Capital Improvement Revenue Bonds, Series 2002. The final maturity of the bonds is October 1, 2021, with interest rates of 3.00% to 5.00 %. The refunding achieved a net present value savings of 5.41% on the refunded bonds. The refinancing of the Series 2002 Bonds, and their attendant restrictive covenants, caused the required cash reserve surety replacement relating to the Series 2002, 2003 and 2005 bonds to decrease from $19,570,777 to $15,717,300, or $3,853,477. 72 $ 'i �►� REQUIRED SUPPLEMENTARY INFORMATION I I1 Required Supplementary Information Collier County, Florida Schedule of Funding Progress for the Retiree Health Plan G 74 Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) - Percentage of Valuation Value of Unit Credit Unfunded Funded Covered Covered Agency Date Assets Actuarial Cost AAL (UAAL) Ratio Payroll Payroll Board and Constitutionals 10/1/2009 - 5,814,470 5,814,470 0.0% 164,923,591 3.5% (Non - Sheriff) Board and Constitutionals 10/1/2010 - 5,825,874 5,825,874 0.0% 159,321,900 3.7% (Non - Sheriff) Sheriff 10/1/2009 - 14,171,709 14,171,709 0.0% 123,296,677 11.5% Sheriff 10/1/2010 - 12,148,033 12,148,033 0.0% 117,879,632 10.3% G 74 14B 74 SINGLE AUDIT /FEDERAL AND STATE SCHEDULE OF FINANCIAL ASSISTANCE The Single Audit /Federal and State schedule of financial assistance section presents Grants compliance reports filed by Collier County with Federal government and State government, respectively. 146 71 THIS PAGE INTENTIONALLY LEFT BLANK 14B 7' Ernst oung LLP ST& YOU Suite 500MER 5100 Town Center C ircle Boca Raton, Florida 33486 Tel: +1 561 955 8000 Fax: +1 561 955 8200 www.ey.com Report of Independent Certified Public Accountants on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards Members of the Board of County Commissioners Collier County, Florida We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (the County) as of and for the year ended September 30, 2010, which collectively comprise the County's basic financial statements and have issued our report thereon dated February 22, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 1102- 1231314 167 A member firm of Ernst 6 Young Global Limited Illlllllllllllllliou�� " " "' ° " "" J�RNS = &�o�N� 1 °s 711 Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the County in a separate letter dated February 22, 2011. This report is intended solely for the information and use of management, the Board of County Commissioners, others within the entity, the Auditor General of the State of Florida, federal and state awarding agencies and pass - through entities and is not intended to be and should not be used by anyone other than these specified parties. February 22, 2011 1102 - 1231314 168 f �OUm�yLLi' U 0 A member firm of Ernst & Young Global Limited JERNST &YOUNG Ernst 9, Young LLP Suite 500 5100 Town Center Circle Boca Raton, Florida 33486 Tel: +1 561 955 8000 Fax: +1 561 955 8200 www.ey.com Report of Independent Certified Public Accountants on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB Circular A -133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General Members of the Board of County Commissioners Collier County, Florida Compliance We have audited Collier County, Florida's (the County) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement, and the requirements described in the Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct and material effect on each of the County's major federal programs and state projects for the year ended September 30, 2010. The County's major federal programs and state projects are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs and state projects is the responsibility of the County's management. Our responsibility is to express an opinion on the County's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations; Section 215.97, Florida Statutes (Section 215.97); and Chapter 10.550, Rules of the Auditor General, State of Florida (Chapter 10.550). Those standards, OMB Circular A -133, Section 215.97 and Chapter 10.550 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the County's compliance with those requirements. 1102 - 1231314 169 A member firm of Emst & Young Global Limited I AN ERNST& YOUNG As described in item 2010 -1 in the accompanying schedule of findings and questioned costs, the County did not comply with requirements regarding reporting that are applicable to its State Housing Initiative Partnership (SHIP) Program. Compliance with such requirements is necessary, in our opinion, for the County to comply with requirements applicable to that program. In our opinion, except for the noncompliance described in the preceding paragraph, the County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2010. The results of our auditing procedures also disclosed other instances of noncompliance with those requirements that are required to be reported in accordance with OMB Circular A -133, Section 215.97, or Chapter 10.550, and which are described in the accompanying schedule of findings and questioned costs as items 2010 -2 through 2010 -7. Internal Control Over Compliance The management of the County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs and state projects. In planning and performing our audit, we considered the County's internal control over compliance with the requirements that could have a direct and material effect on a major federal program or state project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133, Section 215.97, or Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. 1102- 1231314 170 A member firm of Ernst & Young Global Limited J+ R YO j \ f t 14B •7 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2010 -1 to be a material weakness. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2010 -2, 2010 -3, 2010 -4, 2010 -6 and 2010 -7 to be significant deficiencies. The County's responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County's responses and, accordingly, we express no opinion on the responses. This report is intended solely for the information and use of management, the Board of County Commissioners, others within the entity, the Auditor General of the State of Florida, federal and state awarding agencies, and pass - through entities and is not intended to be and should not be used by anyone other than these specified parties. February 22, 2011 1102- 1231314 1.71 19/� f �um�LLi� U o A member firm of Ernst & Young Global Limited COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FOR THE FISCALYEAR ENDED SEPTEMBER 30, 2010 146 :7, Department of Commerce Indirect Programs: Florida Department of Community Affairs: Public Safety Interoperable Communications Grant Program Total Department of Commerce Department of Housing and Urban Development Direct Programs: Office of Community Planning and Development: CDBG - Entitlement Grants Cluster. Community Development Block Grants / Entitlement Grants Community Development Block Grants / Entitlement Grants Community Development Block Grants / Entitlement Grants Community Development Block Grants / Entitlement Grants Community Development Block Grants / Entitlement Grants Total CFDA ARRA Community Development Block Grant ARRA Entitlement Grants Total CDBG - Entitlement Grants Cluster Emergency ShelterGrants Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Total CFDA Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Total CFDA Economic Development Initiative - Special Project, Neighborhood Initiative and Miscellaneous Grants ARRA Homelessness Prevention and Rapid Re- Housing Program (HPRP) Indirect Programs: Florida Department of Community Affairs: Community Development Block Grants / State's Program Community Development Block Grants/ State's Program Community Development Block Grants / State's Program Total CFDA Total Department of Housing and Urban Development Department of the Interior Direct Programs: Bureau of Land Management: Payments in Lieu of Taxes Fish and Wildlife Service: Partners for Fish and Wildlife Total Department of the Interior See accompanying notes to the schedule of expenditures offederal awards and state projects. 11.555 09- DS- 31- 09 -21 -01 -269 170,775 170,775 14.218 CFDA #/ 122,371 Transfers to 14.218 CSFA# Grant /Contract Number Expenditures Subrectplents Federal or State Grantor /Pass- Through Grantor Program Title B -09 -UC -12 -0016 1,657,652 1,221,541 Department of Agriculture B- 08 -UN -12 -0003 3,373,724 — Indirect Programs: B- 10-UC- 120016 154,890 — Florida Departmentof Education: 10.559 04 -0804 $ 795,363 $ — Summer Food Service Program for Children ARRA B- 09 -UY -12 -0016 78,971 48,000 Florida Department of Agriculture and Consumer Services: 10.664 Isles of Caprl Fire District 2.720 Cooperative Forestry Assistance 10.664 Ochopee Fire District 4,615 — Cooperative Forestry Assistance FL14B50 -6001 45,994 7,335 — Total CFDA FL14BSO -6002 24,016 24,016 14.235 FL1070 -6001 82,882 802,698 — Total Department of Agriculture FLO29484DO60801 104,646 102,155 Department of Commerce Indirect Programs: Florida Department of Community Affairs: Public Safety Interoperable Communications Grant Program Total Department of Commerce Department of Housing and Urban Development Direct Programs: Office of Community Planning and Development: CDBG - Entitlement Grants Cluster. Community Development Block Grants / Entitlement Grants Community Development Block Grants / Entitlement Grants Community Development Block Grants / Entitlement Grants Community Development Block Grants / Entitlement Grants Community Development Block Grants / Entitlement Grants Total CFDA ARRA Community Development Block Grant ARRA Entitlement Grants Total CDBG - Entitlement Grants Cluster Emergency ShelterGrants Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Supportive Housing Program Total CFDA Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Total CFDA Economic Development Initiative - Special Project, Neighborhood Initiative and Miscellaneous Grants ARRA Homelessness Prevention and Rapid Re- Housing Program (HPRP) Indirect Programs: Florida Department of Community Affairs: Community Development Block Grants / State's Program Community Development Block Grants/ State's Program Community Development Block Grants / State's Program Total CFDA Total Department of Housing and Urban Development Department of the Interior Direct Programs: Bureau of Land Management: Payments in Lieu of Taxes Fish and Wildlife Service: Partners for Fish and Wildlife Total Department of the Interior See accompanying notes to the schedule of expenditures offederal awards and state projects. 11.555 09- DS- 31- 09 -21 -01 -269 170,775 170,775 14.218 8- 07 -UC -12 -0016 122,371 121,966 14.218 B- 08 -UC -12 -0016 491,305 438,539 14.218 B -09 -UC -12 -0016 1,657,652 1,221,541 14.218 B- 08 -UN -12 -0003 3,373,724 — 14.21B B- 10-UC- 120016 154,890 — 5,799,942 1,782,046 14.253 ARRA B- 09 -UY -12 -0016 78,971 48,000 5,878,912 1,830,046 14.231 S- 09 -UC -12 -0024 86,574 84 ,541 14.235 FL14B50 -6001 45,994 40,977 14.235 FL14BSO -6002 24,016 24,016 14.235 FL1070 -6001 82,882 92.882 14.235 FLO29484DO60801 104,646 102,155 14.235 FL029564DO60801 78,002 78,002 14.235 FL0296B4DO60801 23,399 23,399 14.235 FL0294110060802 37,533 — 406,472 361,432 14.239 M-07 -UC -12 -0217 234,676 224,676 14.239 M- 08 -UC -12 -0217 17,882 204 14.239 M -09- UC -12- 0217 233,907 117,075 14.239 M- 10 -UC -12 -0217 24,323 — 510,798 341,955 14.251 B- 08 -SP -FL -0168 29,400 — 14.257 ARRA 509 -UY -12 -0024 207,221 187,059 172 14.228 07DB- 3V- 09- 21- 01 -ZOI 14.228 08DB- D3- 09- 21- 01-AO3 14.228 10- DB- D4 -09- 21- 01-KO9 15.226 Collier County 15.631 401815/021 118,694 99,218 1,485,016 617,361 24,184 — 1,627,894 716,579 8,747,271 3,521,612 1,229,064 — 1,746 — 1,230,810 (Continued) COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FORTHE FISCALYEAR ENDED SEPTEMBER 30, 2010 14 "B To CFDA #/ Transfers to Federal or State Grantor /Pass - Through Grantor Program Title CSFA# Grant/Contract Number Expenditures Subrecfpients Department of Justice Direct Programs: Office oflustice Programs: Federal Equitable Sharing 16.unknown Collier County Sheriff $ 6,557 $ - Office of Victims of Crime: Services forTrafficking Victims - 16.320 2005 -VT -BX -0002 106,045 Violence Against Women Office: Supervised Visitation, Safe Havens for Children 16.527 2009- CW- AX -KOII 126,384 - office of Community Oriented Policing Services: Public Safety Partnership and Community Policing Grants 16.710 2009CKWX0204 320,070 - Indirect Programs: Florida Office of Attorney General: Crime Victim Assistance 16575 V09129 118,625 - Florida Depa rtment of Children and Families: Violence Against Women Formula Grants 16.588 LN916 136,103 - ARRA Violence Against Women Formula Grants 16.588 ARRA LN947 85,851 - ARRA Violence Against Women Formula Grants 16.588 ARRA 8008 8,948 - Total CFDA 230,901 - Florida Department of Law Enforcement ' Project Safe Neighborhoods 16.609 2008 - PMAG - COLL -I -R6 -005 19,462 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 2010 - JAGC -COLL -1 -0X -221 171,718 - ARRA Recovery Act -Edward Byrne Memorial J usttce Assistance Grant (JAG) Program/ Grants to States and Territories 16.803 ARRA 2030 - ARRC -COLL -I -W7 -315 288,263 - ARRA Recovery Act -Edward Byrne Memorial Justice Assistance Grant (JAG) Program/ Grants to States and Territories 16.803 ARRA 2010 -ARRC COLL-2 -W7 -037 432,600 - Total CFDA 720,863 - Total Department ofJustice 1,820,526 - Department of Labor Indirect Programs: Employment Training Administration: WIAAdultProgram 17.258 Collier County 8,681 - Total Department of Labor 8,681 - Department of Transportation Direct Programs: Federal Aviation Administration: Airport Improvement Program 20.106 3 -12- 0031 - 005 -2009 10,921 - AirportlmprovementProgram 20.106 3 -12- 0031 -006 -2009 49,158 - Airport Improvement Program 20.106 3 -12- 0142 - 004 -2007 5,544 - Airport Improvement Program 20.105 3 -12- 0142 - 005 -2008 13,689 - Total CFDA 79,312 - Federal Transit Administration (FFA): Federal Transit Cluster. Federal Transit - Capital Investment Grants 20.500 FL -04- 0047 -00 86,175 Federal Transit-Capital investment Grants 20.500 FL -03- 0264 -00 48,997 Total CFDA 135,172 - ARRA Federal Transit- Formula Grants 20.507 ARRAFL- 96- XO19 -00 1,265,886 Federal Transit-Formula Grants 20.507 FLA0- X508 -00 4,985 Federal Transit-Formula Grants 20.507 FL -90- X553 -00 73,127 Federal Transit-Formula Grants 20.507 FL- 90- X580 -00 32,005 Federal Transit-Formula Grants 20.507 FL -90- X645 -00 464 - Federal Transit - Formula Grants 20.507 FL- 90- X665 -00 1,076,045 Federal Transit-Formula Grants 20.507 FL -90- X699 -00 990,924 Total CFDA 3,443,436 - TOtalFederalTransitCluster 3,578,609 - Indirect Programs: Florida Department of Transportation: Highway Planning and Construction 20.205 414534- 1 /APB25 381,015 - Highway Planning and Construction 20.205 416342 -1 / A4377 436,157 - HlghwayPlanningandConstruction 20.205 420871- 1/A4377 94,763 - HighwayPlanningandCOnstruction 20.205 420885- 1 /APK97 240,328 - Highway Planning and Construction 20.205 423653-1 / AP900 64,529 - HighwayPianningandConstruction 20.205 423654- 1 /APD71 240,489 - HighwayPlanningandCOnstruction 20.205 423655- 1 /APM21 70,714 - Total CFDA 1,527,995 - (Continued) 173 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FOR THE FISCALYEAR ENDED SEPTEMBER 30, 2010 14'B 7 174 CFDA g/ Transfers to Federal or State Grantor /Pass - Through Grantor Program Title CSFA9 Grant /Contract Number Expenditures Subreciplents Metropolitan Transportation Planning 20.505 204791- 1 /AM356 $ 24,465 $ — MetropolitanTransportatlonPlann ing 20.505 410113- 11 AP031 117,102 — Total CFDA 141,567 — Formula Grants for OtherThan Urbanized Areas 20.509 410120- 1 /AOW89 245,424 — ARRA Formula Grants for OtherThan Urbanized Areas 20.509 ARRA426772- 1 /APil9 159,093 — ARRA Formula Grants for OtherThan Urbanized Areas 20.509 ARRA426796- 1 /API19 78,681 — TOtaICFDA 483,198 — State and Community Highway Safety 20.600 APT94 89,868 — State and Community Highway Safety 20.600 APU14 31,710 Total CFDA 121,678 — Total Department of Transportation 5,932,360 — Department of Treasury Direct Programs: Department of Treasury: Federal Equitable Sharing 21.unknown Collier County Sheriff 35,400 — Total Department of Treasury 35,400 — Environmental Protection Aeencv Indirect Programs: Florida Department of Environmental Protection: Capitalization Grants For Drinking Water State Revolving Funds 66.468 DW1111030 5,839,056 — Total Environmental Protection Agency 5,839,056 — Department of Energy Direct Programs: ARRA Energy Efficiency and Conservation Block Grant Program (EECBG) 81.128 ARRA DE- EE0000783 1,140,045 — Total Department of Energy 1,140,045 — U.S. Election Assistance Commission Indirect Programs: Florida Department of State: ' HelpAmenca Vote Act Requirements Payments 90.401 Collier County -FY 2005 -06 6,724 — Hei pAmerica Vote Act Requirements Payments 90.401 Collier County -FY 2006-07 13,935 — HelpAmericaVoteActRequirementsPayments 90.401 Collier County -FY 2007 -08 31,825 — HelpAmerica Vote Act Requirements Payments 90A01 Collier County- FY 2008-09 590 Help America Vote Act Requirements Payments 90.401 2009- 2010 -0001a 7,406 — Total U.S. Election Assistance Commission 60,480 — Department of Health and Human Services Direct Programs: Health Resources and Services Administration: Health Care and Other Facilities 93.887 C76HF15996 95,090 Specially 5elected Health Projects 93.888 DIBIT10769 149,080 — Indirect Programs: Florida Department of Elder Affairs -Area Agency on Aging for Southwest Florida, Inc.: Aging Cluster. Special Programs forthe Aging -Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 OAA 203.09 22,980 — Special Programs for the Aging -Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 OAA 203.10 62,200 — TotalCFDA 85,181 — SpecialProgramsfortheAging -Title III, Part C- Nutrition Services 93.045 OAA 203.09 137,632 — SpecialPrograms for the Aging -Tale III, Part C- Nutrition Services 93.045 OAA 203.10 328,927 — Total CFDA 466,559 — Nutrition Services Incentive Program 93.053 NSIP 203.10 7,558 — ARRA Aging Home - Delivered Nutrition Services for States 93.705 ARRA 203.09 6,640 — ARRAAgingCongregateNutritionServlcesforSta }es 93.707 ARRA 203.09 19,178 — TotalAgingCluster 585,115 — National Family Caregiver Support -Title III, Part 93.052 OAA 203.09 22,599 — National Family Caregiver Support -Title III, Part 93.052 OAA 203.10 62,897 Total CFDA 85,496 (continued) 174 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 14B 7 Corporation for National and Community Service Direct Programs. Retired and SenlorVolunteer Program Retired and Senior Volunteer Program Total Corporation for National and Community Service Department of Homeland Security Indirect Programs: Homeland Security Cluster. Florida Department of Law Enforcement: State Domestic Preparedness Equipment Support Program Homeland Security Grant Program Homeland Security Grant Program Florida Department of Community Affairs: Homeland Security Grant Program Homeland Security Grant Program Homeland Security Grant Program Total CFDA Total Homeland Security Cluster Disaster Grants - Public Assistance (Presidentially Declared Disasters; Disaster Grants - Public Assistance (Presidentially Declared Disasters; Disaster Grants - Public Assistance (Presidentially Declared Disasters, Total CFDA Hazard Mitigation Grant Emergency Management Performance Grants Total Department of Homeland Security TOTAL EXPENDITURES OF FEDERAL AWARDS 94.002 06SRSFL004 869 — 94.002 09SRSFL017 47,010 — 47,879 97.004 2006-LETP- LOLL -3N1 -013 408,742 — 97.067 2008- SHSP- COLL- 3S4 -011 15,858 97.067 2008- SHSP -COLL- 154-010 5,000 — 175 97.067 09CC- 49 -09 -21 -01 -341 97.067 0901- 49- 09 -21 -OS -350 97.067 09DS- 51 -09 -21 -01 -322 97.036 06- WL- &K -09 -21 -01 -692 97.036 08- FA- 89 -09 -21 -00 -509 97.036 08- FA- B9 -09 -21 -00-510 97.039 SOHM- 98- 09- 21 -01 -012 97.042 10- BG- 25- 09 -21 -01 -102 1,203 — 1,300 — 61,115 84,477 493,218 — 9,731,561 — 1,634 144,582 — 9,877,777 — 29,748 35,202 10,435,945 — $ 37,932,292 $ 3,521,612 CFDA N/ Transfers to Federal or State Grantor /Pass - Through Grantor Program Title CSFAM Grant /Contract Number Expenditures Subreciplents Florida Department of Revenue: 93.563 CD311 $ 230,680 $ — ChildSupport Enforcement Florida Department of State: Voting Access for Individuals with Disabilities -G rants to States 93.617 Collier County -FY 2005 -06 7,538 — Florida Department of Transportation - Commission for the Transportation Disadvantaged: 93.778 416043- 1 /BDM59 507,266 — Medical Assistance Program 1,660,266 — Total Department of Health and Human Services Corporation for National and Community Service Direct Programs. Retired and SenlorVolunteer Program Retired and Senior Volunteer Program Total Corporation for National and Community Service Department of Homeland Security Indirect Programs: Homeland Security Cluster. Florida Department of Law Enforcement: State Domestic Preparedness Equipment Support Program Homeland Security Grant Program Homeland Security Grant Program Florida Department of Community Affairs: Homeland Security Grant Program Homeland Security Grant Program Homeland Security Grant Program Total CFDA Total Homeland Security Cluster Disaster Grants - Public Assistance (Presidentially Declared Disasters; Disaster Grants - Public Assistance (Presidentially Declared Disasters; Disaster Grants - Public Assistance (Presidentially Declared Disasters, Total CFDA Hazard Mitigation Grant Emergency Management Performance Grants Total Department of Homeland Security TOTAL EXPENDITURES OF FEDERAL AWARDS 94.002 06SRSFL004 869 — 94.002 09SRSFL017 47,010 — 47,879 97.004 2006-LETP- LOLL -3N1 -013 408,742 — 97.067 2008- SHSP- COLL- 3S4 -011 15,858 97.067 2008- SHSP -COLL- 154-010 5,000 — 175 97.067 09CC- 49 -09 -21 -01 -341 97.067 0901- 49- 09 -21 -OS -350 97.067 09DS- 51 -09 -21 -01 -322 97.036 06- WL- &K -09 -21 -01 -692 97.036 08- FA- 89 -09 -21 -00 -509 97.036 08- FA- B9 -09 -21 -00-510 97.039 SOHM- 98- 09- 21 -01 -012 97.042 10- BG- 25- 09 -21 -01 -102 1,203 — 1,300 — 61,115 84,477 493,218 — 9,731,561 — 1,634 144,582 — 9,877,777 — 29,748 35,202 10,435,945 — $ 37,932,292 $ 3,521,612 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FOR THE FISCALYEAR ENDED SEPTEMBER 30, 2010 148:7 Federal or State Grantor /Pass - Through Grantor Program Title CFDA #/ CSFA $t Grant /Contract Number Expenditures Transfers to Subreclprents Florida Department of Environmental Protection 21,775 55.004 Florida Recreation Development Assistance Program 37.017 A9048 $ 2,131 $ — Statewide Surface Water Restoration and Wastewater Projects 37.039 4600002032 39,329 — InnovativeWasteReductionandRecyclingGrants 37.050 IGB -07 3,229 — Innovative Waste Reduction and Recycling Grants 37.050 IGS -09 11,264 621,867 — Total CSFA 420446- 1/AOK37 3,041 — 14,493 420353- 1 /APF60 Total Florida Department of Environmental Protection 55.020 420655 -2 55,953 55.026 Florida Department of State and Secretary of State 3,085,092 — State Aid to Libraries 45.030 07 -ST -12 3,850 — StateAidtoLibraries 45.030 09 -51-10 29,153 Total Florida Department of State and Secretary of State 33,003 Florida Department of Community Affairs Emergency Management Programs 52.008 10- BG- 25- 09 -21 -01-102 98,095 — Emergency Management Projects 52,023 10- CP -04 -09 -21.01 -146 7,075 Total Florida Department of Community Affairs 105,170 Florida Housing Finance Corporation State Housing Initiatives Partnership (SHIP)Program 52.901 Collier County /Naples 294,879 84,887 Total Florida Housing Finance Corporation 294,879 84,8B7 Florida Department of Transportation Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 207246-1/207246-3 / APK39 428,670 — Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 207246- 1/207246 -3 / APZ63 146,982 Total CSFA 575,652 Commission for the Transportation Disadvantaged (CTD) Planning Grant Program Commission for the Transportation Disadvantaged (CTD) Planning Grant Program Total CSFA Aviation Development Grants Aviation Development Grants Aviation Development Grants Aviation Development Grants Aviation Development Grants Total CSFA PubllcTransit Block Grant Program Public Transit Service Development Program Intermodal Development Program State Infrastructure Bank Transportation Regional Incentive Program (TRIP) Total Florida Department of Transportation Florida Department of Children and Families Homeless Challenge Grant Total Florida Department of Children and Families Florida Department of Health County Grant Awards County Grant Awards Total Florida Department of Health 176 55.002 207246.2/APJ51 15,381 — 55.002 207246.2/AQ034 6,394 21,775 55.004 206430- 1 /AI935 16,383 — 55.004 410788-1 / AOF09 419,156 — 55.004 414299- 1 /AOR09 216,213 — 55.004 414370- 1 /ANH17 13,913 — 55.004 426083- 1 /APF78 2,351 670,015 55.010 410139-1 / AOW93 621,867 — 55.012 420446- 1/AOK37 3,041 — 55.014 420353- 1 /APF60 128,004 — 55.020 420655 -2 1,839,148 — 55.026 425477 -1 3,085,092 — 6,944,593 60.014 HFZ03 92,779 92,779 92,779 92,779 64.005 C8011 82,883 64.005 C9011 91,361 174,244 (Continued) COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 1 * H� 4.B�. , Florida Fish and Wildlife Conservation Commission Florida Boating Improvement Program 77.006 08079 Total Florida Fish and Wildlife Conservation Commission TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 177 62,017 62,017 $ 8,638,523 $ 177,666 CFDA g/ Transfers to Federal or State Grantor/PasrThrough Grantor Program Title CSFA9 Grant /Contract Number Expenditures Subrecipients Florida Department of Eider Affairs Area Agency on Aging for Southwest Florida, Inc: Home Care for the Elderly 65.001 HCE 203.09 $ $ 4474 $ Care for the Elderly 65.001 HCE 203.10 Total CSFA 4,935 Alzhelmer's Respite Services 65.004 ADI 203.09 81,345 — Alzhelmer'sRespiteServices 65.004 AD[ 203.10 20,517 Total CSFA 101,862 Community Care for the Elderly (CCE) 65.010 CCE 203.08 100 — Community Care forthe Elderly (CCE) 65.010 CCE 203.09 600,292 — Community Care for the Elderly (CCE) 65.010 CCE 203.10 168,695 Total CSFA 769,087 Total Florida Department of Elder Affairs 875,883 Florida Fish and Wildlife Conservation Commission Florida Boating Improvement Program 77.006 08079 Total Florida Fish and Wildlife Conservation Commission TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 177 62,017 62,017 $ 8,638,523 $ 177,666 Collier County, Florida 14B ; 7 Notes to the Schedule of Expenditures of Federal Awards and State Projects Year Ended September 30, 2010 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Projects (the Schedule) includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on the modified accrual basis of accounting for expenditures accounted for in the governmental funds and the accrual basis of accounting for expenditures in proprietary funds. Under the modified accrual basis, revenue is recognized if it is both measurable and available for use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if measurable. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. The information in the Schedule is presented in accordance with the requirements of U.S. Office of Management and Budget (OMB) Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, and Section 215.97, Florida Statutes. Therefore, some amounts presented in the Schedule may differ from amounts presented, or used in the preparation of, the basic financial statements for the fiscal year ended September 30, 2010. 2. State Revolving Funds Reconciliation of State Revolving Funds (CFDA# 66.468) expended to cash received during fiscal year 2010: Expenses reported on Single Audit Schedule $ 5,839,056 Reimbursements received for prior year expenses 452,618 Total State Revolving Fund reimbursements received $ 6,291,674 1102- 1231314 178 Collier County, Florida 14B Notes to the Schedule of Expenditures of Federal Awards and State Projects (continued) 3. State Infrastructure Bank Loan The County received a $12,000,000 State Infrastructure Bank Loan from the Florida Department of Transportation in fiscal year 2008 for construction of the I- 75/Immokalee Road interchange. The Florida Department of Transportation included this project with their concurrent widening of I -75 and retained the loan proceeds to fund the project. Accordingly, the County's expenditures for purposes of reporting on the Schedule consist of principal loan repayments only ($ 1,839,148 for fiscal year 2010) as no proceeds were received under the loan and no project expenditures were incurred or paid directly by the County. The principal balance of the loan as of September 30, 2010 is $ 8,203,475. The repayment schedule for this loan is as follows: Payment Date Principal Interest Total 10/1/2008 $ 1,957,377 $ 82,623 $ 2,040,000 10/1/2009 1,839,148 200,852 2,040,000 10/1/2010 1,875,930 164,070 2,040,000 10/1/2011 1,913,449 126,551 2,040,000 10/1/2012 4,414,096 88,282 4,502,378 $ 12,000,000 $ 662,378 $ 12,662,378 4. Hurricane Wilma FEMA Reimbursement Hurricane Wilma caused significant damage in Collier County on October 24, 2005. At that time, initial beach erosion damage reports indicated that Collier County was eligible for reimbursement of $3,783,907. The related expenditures were reported in the 2006 Schedule of Expenditures of Federal Awards and State Projects. As work progressed over the next few years, it was determined that Collier County had much more significant damage than originally thought. In January of 2010 a Storm Impact Re- assessment Report was completed, The results of this study formed the basis for an appeal to recapture additional reimbursement from FEMA. This appeal was successful and in September 2010, Collier County received an additional $9,731,561. These expenditures are reported in the 2010 Schedule of Expenditures of Federal Awards and State Projects since these expenditures were not determined to be eligible for reimbursement until the current fiscal year. 1102 - 1231314 179 IF) Collier County, Florida Notes to the Schedule of Expenditures of Federal Awards and State Projects (continued) 5. State Criminal Alien Assistance Program ( SCAAP) In January, 2010 Collier County Sheriff's Office returned $622,510 to the US Department of Justice (DOJ) as a result of DOD's audit of the SCAAP 2007 application. In April, 2010 DOJ reduced the SCAAP 2009 award by $791,555 as a result of their audit of the SCARP 2006 application. 6. Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the County. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations. 1102 - 1231314 180 Collier County, Florida Schedule of Findings and Questioned Costs For the Year Ended September 30, 2010 Part I— Summary of Auditor's Results Financial Statements Section Type of auditor's report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards and State Projects Section Internal control over major programs: Material weakness(es) identified? X Yes No Significant deficiency(ies) identified that are not considered to be material weaknesses? X Yes None reported Type of auditor's report issued on compliance for Qualified for the State Housing major programs: Initiatives Partnership Program (CSFA# 52.901); and Unqualified for all other major federal programs and state projects Any audit findings disclosed that are required to be reported in accordance with section .510(a) of OMB Circular A -133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General, State of Florida? X Yes No 1102 - 1231314 181 I K 4"t 7 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Identification of major federal programs: Federal Programs CFDA Number Federal Agency/Name of Federal Program U.S. Department of Housing and Urban Development: 14.218, 14.253 CDBG Entitlement Grants Cluster 14.228 Community Development Block Grant/State's Program (DRI) 14.257 Homelessness Prevention and Rapid Re- housing Program (HPRP) (Recovery Act Funded) U.S. Department of the Interior 15.226 Payments in Lieu of Taxes U.S. Department of Justice: 16.803 Recovery Act — Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to States and Territories U.S. Department of Transportation: 20.500, 20.507 Federal Transit Cluster U.S. Department of Energy: 81.128 Energy Efficiency and Conservation Block Grant Program (EECBG) U.S. Department of Homeland Security: 97.036 Disaster Grants — Public Assistance (Presidentially Declared Disasters) 1102 - 1231314 182 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Identification of major state projects: State Projects CSFA Number State Agency/Name of State Project Florida Housing Finance Corporation: 52.901 State Housing Initiatives Partnership Program (SHIP) Florida Department of Transportation: 55.004 Aviation Development Grants 55.020 State Infrastructure Bank Loan Program 55.026 Transportation Regional Incentive Program (TRIP) Florida Department of Elder Affairs: 65.010 Community Care for the Elderly (CCE) Dollar threshold used to distinguish between Type A and Type B programs: • Federal Programs $ 1,137,969 • State Projects $ 300,000 Auditee qualified as low -risk auditee? Yes X No 1102- 1231314 183 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Part H Financial Statement Findings Section This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of provisions of contracts and grant agreements, and abuse related to the financial statements for which Government Auditing Standards require reporting. No such matters were identified. Part III Federal Awards and State Projects Findings and Questioned Costs Section This section identifies the audit findings required to be reported by Circular A -133 section .510(a), Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General, State of Florida, such as material weaknesses, significant deficiencies, and material instances of noncompliance, including questioned costs, as well as any abuse findings involving federal awards or state projects that are material to a major program. Finding 2010 -1 State Program Information Florida Housing Finance Corporation (the Corporation) State Housing Initiatives Partnership Program (SHIP) CSFA No. 52.901 Criteria Reporting: • In accordance with Section 420.9075(10), Florida Statutes, each county or eligible municipality shall submit to the Corporation by September 15 of each year a report of its affordable housing programs and accomplishments through June 30, immediately preceding submittal of the report. Annual reports for the Closeout Fiscal Year (2007 /2008), Interim Fiscal Year 2 (2008/2009), and Interim Fiscal year 3 (2009/2010) (the Annual Report) must be included in the submission to the Corporation. 1102- 1231314 184 148 7/*1 Collier County, Florida Schedule of Findings and Questioned Costs (continued) • The local SHIP administrator's tracking system and annual reports must exactly match the information recorded in the local city or county's general ledger. • SHIP administrators, therefore, are required to regularly reconcile their tracking system with the local finance department's general ledger. They should meet with the director of their finance department to create a process that will ensure compliance with the single audit act. Condition/Context The financial information included in the submitted Annual Report was not reconciled to the County's general ledger. Accordingly, we were unable to validate the amount of expenditures and program income reported in the Annual Report. Questioned Costs N/A Cause /Effect The financial information submitted in the annual statutory reports did not agree to and was not reconciled with the general ledger. This could result in incorrect and/or inconsistent information between the reports filed and the underlying financial records and indicates that the County may not be in compliance with the provisions of the SHIP Program Manual requiring that amounts reported in the Annual Report match the amounts reported in the general ledger. Internal controls with respect to reporting were not operating effectively. Recommendation The County should implement procedures that require that the statutory reports be reconciled to the general ledger and reviewed and approved prior to being filed with the State. Views of Responsible Officials and Planned Corrective Action Management concurs with the recommendations of the auditors. On July 1, 2010, Collier County entered into a contract with Florida Housing Coalition, the technical assistance provider for Florida Housing Finance Corporation. The purpose was to receive assistance in reconciling the annual reports to the general ledger and establishing best practices to capture, reconcile, and report data. 1102 - 1231314 185 14B 7 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Further recognizing the importance of compliance, transparency and overall proper management of grants, the County hired two grant accountants who will work under the management of our Grants Management Office. These two employees are being deployed to areas exhibiting the greatest need for assistance and will work with individual departments and existing employees to bring consistent compliance, policies and procedures as they relate to grant activities throughout the county. Currently, one of the Grant Accountants is working with the employees of Housing, Human and Veteran's Services Department on the SHIP report reconciliation. Expenditures have been reconciled to the general ledger and the corresponding journal entries and adjustments are being made. Future reports will also be reconciled and approved by the program administrator prior to being filed with the State. Finding 2010 -2 Federal Program Information U.S. Department of the Interior Payments in Lieu of Taxes (PILT) CFDA No. 15.226 Criteria Reporting: Section 43 CFR Part 44.50 states the following - What are the local governments' responsibilities after receiving payments under this part? (a) The local government may use section 6902 payments for any governmental purpose. (b) Within 90 days of receiving sections 6904 and 6905 payments, the local government must distribute the funds to the affected units of general local government and affected school districts. The affected units of general local government and school districts may use sections 6904 and 6905 payments for any governmental purpose. (c) The local government must distribute section 6904 and 6905 payments in proportion to the tax revenues assessed and levied by the affected units of general local government and school districts in the Federal fiscal year before the Federal Government acquired the entitlement lands. The Redwoods Community College District in California is an affected school district for this purpose. 1102- 1231314 186 14B 7 Collier County, Florida Schedule of Findings and Questioned Costs (continued) (d) Within 120 days of receiving payments, the local government must certify to the Department that it has made an appropriate distribution of funds. ConditionlContext The County was not aware of the requirement noted in (d) above and did not certify to the Department that it had made an appropriate distribution of the funds within 120 days of receiving payments. Questioned Costs N/A Cause/Effect As the County was not aware of the requirement stated in the CFR, internal controls over reporting were not designed or operating effectively. Recommendation The County should implement procedures to identify all types of reporting requirements indicated in the federal regulations and to ensure all such reports or certifications are submitted as required and on a timely basis. Views of Responsible Officials and Planned Corrective Action The Clerk's Department of Finance and Accounting (Finance) determined that this program was considered a Federal grant in July 2010. At that time, Finance contacted the Department of Interior and was told that there were no reporting requirements for this program. All funds were properly 'distributed. Upon reviewing CFR 44.5(d) with the auditors, it was determined that a certification confirming the appropriate distribution of funds was required. The confirmation was sent and this requirement has been added to the PILT procedures for future years. 1102 - 1231314 187 148 7 4 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Finding 2010 -3 Federal Program Information U.S. Department of Homeland Security Disaster Grants — Public Assistance (Presidentially Declared Disasters) CFDA No. 97.036 Criteria Procurement, Suspension and Debarment: Non - Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. When a non - federal entity enters into a covered transaction with an entity at a lower tier, the non - federal entity must verify that the entity is not suspended or debarred or otherwise excluded. This verification may be accomplished by checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause or condition to the covered transaction with that entity. ConditionlContext We selected the largest vendor included in the population which comprised the majority of the expenditures incurred under the Federal program for testing. The expenditures were incurred during prior years although the Federal reimbursement was sought and received in the current year. We noted no documentation evidencing that the County had checked the EPLS, and a certification from the vendor was not collected or clause or condition included in the contract. We noted that the County's current policy it to document the EPLS check; however, as this vendor contract pertained to prior years, there was no documentation of the EPLS check being performed. Questioned Costs N/A 1102- 1231314 188 Collier County, Florida 14B 7 Schedule of Findings and Questioned Costs (continued) Cause /Effect Internal controls with respect to suspension and debarment were not operating effectively at the time the expenditures under the Federal program were incurred as no documentation was maintained indicating that the EPLS was checked. Additionally, there was no evidence that the County had obtained a certification from the entity or added a clause or condition to the contract with the entity. Therefore, we could not verify whether the County met its requirement to verify that the entities were not suspended or debarred or otherwise excluded. Recommendation The County should perform the required verification by checking the EPLS (and documenting evidence of the verification, when it was performed and by whom), collecting a certification from the entity, or adding a clause or condition to the contract with that entity in accordance with the Federal requirements. Views of Responsible Officials and Planned Corrective Action Management concurs with and has successfully implemented the procedure of performing EPLS checks on all vendors associated with grant activities. This contract was procured in July of 2005, prior to any damage done to Naples beaches and initial submission to FEMA for reimbursement. This contract bid process was intended for payment under non -grant revenue sources and accordingly, our procurement procedures do not require debarment checks for non- grant related vendors. The bid process did include the following language with regards to Public Entity Crimes: `By its submitting a Bid, Bidder acknowledges and agrees to and represents it is in compliance with the terms of Section 287.133(2)(a) of the Florida Statutes." Said statute prohibits a vendor from bidding on a contract when they have been convicted of a public entity crime. An after- the -fact EPLS check was performed on this vendor for the period of January 1, 2005 through and including September 30, 2010 and was found to be in good standing. At the time the County submits their second request for scope change with FEMA regarding the increased beach costs, all vendors submitted for reimbursement will be checked after -the -fact. 1102 - 1231314 189 14B 74 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Finding 2010 -4 Federal Program Information U.S. Department of Homeland Security Disaster Grants — Public Assistance (Presidentially Declared Disasters) CFDA No. 97.03 6 Criteria Reporting: The County received Federal program funds as a subgrantee of the State. Per review of the State's reporting guidelines, subgrantee quarterly financial reporting is required for all large projects to comply with program requirements and to allow the grantee to provide accurate progress reports, as required, to the Federal grantor agency. The compliance supplement requires that fmancial reports be complete and accurate, which includes a requirement that amounts reported be in agreement with accounting records that support the audited financial statements and the SEFA. Condition/Context For one of the two quarterly reports selected for testing on a large project we noted amounts were not reported accurately for the anticipated final amount and the amount expended to date. The accounting records reflected a total amount of $12.9 million whereas the report reflected $3.1 million. Further, we selected the next quarterly report and noted that the amounts reported were the same and had not been updated to reflect the actual activity based on the County's accounting records. Questioned Costs N/A Cause /Effect The reports submitted were not adequately reviewed to ensure accuracy and completeness. 1102 - 1231314 190 14B 74 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Recommendation We recommend that all reports submitted to grantor agencies be subjected to a thorough supervisory review for accuracy and completeness prior to submission. Views of Responsible Officials and Planned Corrective Action The Florida Public Assistance quarterly reporting is done electronically without any intermittent check points for review. Management will work around this by having staff create a spreadsheet prior to quarterly reporting submission and submit to Management for approval. Staff inquired about submitting revised quarterly reports for the periods in question and was advised that there are no options for doing this within the system. Finding 2010 -5 Federal Program Information U.S. Department of Homeland Security Disaster Grants — Public Assistance (Presidentially Declared Disasters) CFDA No. 97.036 Criteria Allowable Activities /Costs: Following a Presidential declaration of a major disaster or an emergency, the Federal Emergency Management Agency (FEMA), Department of Homeland Security (DHS), awards grants for public assistance to States. The State uses the funds to provide subgrants to local governments. Accordingly, the County is the subgrantee. Public Assistance (PA) program awards are made based upon a Project Worksheet (PW) prepared by a project formulation team, which includes representatives of FEMA, the State and the subgrantee. The PW documents the project formulation team's determination of the eligible scope of work and cost estimate. Accordingly, the compliance supplement indicates that the allowed activities for the PA program are for the approved project as described on the PW and supporting documentation. For large projects, the State must make an accounting to FEMA of eligible costs for each approved large project. In submitting the accounting, the State must certify that reported costs were incurred in the performance of eligible work, that the approved work was completed, that the project is in compliance with the FEMA -State Agreement, and that payments for the project 1102 - 1231314 191 14B T-t4 Collier County, Florida Schedule of Findings and Questioned Costs (continued) have been made in accordance with 44 CFR section 13.21 requirements for payment. The subgrantee is required to make similar accounting and certifications to the State. If actual costs are less than the approved amount, then the FEMA share will be based upon the actual costs. The subgrantee may request additional funding for eligible cost overruns on large projects. For additional funding, these requests must include a written recommendation from the State and approval of the FEMA Regional Administrator (RA) (44 CFR sections 206.204(e) and 206.205). Condition/Context The large project PW that was finalized during fiscal year 2010 and which set forth the allowable activities and costs for the project included approximately $10.5 million for costs associated with one vendor and $2.2 million related to various other vendor related costs. The County was reimbursed under the Federal program for the full amount of the approved PW (approximately $3.1 million was collected in prior years and approximately $9.7 million was collected during fiscal year 2010). For the other vendors included in the PW totaling $2.2 million, we selected three of the largest vendors to test covering over 60% of the other vendor total amount. We noted that for one of the vendors selected, the amount billed by the vendor and paid by the County was less than the amount in the PW by $27,997, which at the Federal reimbursable share per the PW of 55% equates to $15,398. Since this amount is above the OMB Circular A -133 reportable threshold of $10,000, we have reported this amount as a questioned cost. Questioned Costs $15,398 Cause /Effect According to the Federal compliance supplement if actual costs are less than the approved amount, then the FEMA share should be based upon the actual costs. As the County received grant funds for the full amount approved in the PW, it appears that the amount reimbursed was not based upon the actual costs incurred for this particular vendor. Recommendation We recommend that the County implement procedures to ensure that amounts reimbursed are based upon actual expenditures incurred. 1102 - 1231314 192 Collier County, Florida 14B 7 Schedule of Findings and Questioned Costs (continued) Views of Responsible Officials and Planned Corrective Action As discussed in previous meetings, this Project Worksheet 2700 (PW) was the result of a scope change and Collier County was allowed a much larger reimbursement for the damages done to Collier County Beaches. This is an on -going process and involves three Named Events (Tropical Storm Gabrielle on 9/12/2001; Hurricane Katrina on 8/29/2005; and Hurricane Wilma on 10/24/2005). At 9/30/2010, Collier County was half -way through this process. The invoice selected for testing on this project was incorrectly referenced in the written discussion on PW 2700 by State personnel at $682,000, the PO amount. There is a spreadsheet that FEMA, State personnel and Collier personnel are working with for the entire $33.9 million dollar scope change. The actual invoice amount of $654,002.73 is included on the spreadsheet. Finding 2010 -6 Federal Program Information U.S. Department of Housing and Urban Development Community Development Block Grants/Entitlement Grants (CDBG) CFDA No. 14.218 Criteria Program Income: Revenue received by a state, unit of general local government, or subrecipient (as defined at 24 CFR 570.500(c)) that is directly generated from the use of CDBG funds (which term includes NSP grant funds) constitutes CDBG program income. To ensure consistency of treatment of such revenue, the definition of program income at 24 CFR 570.500(a) shall be applied to amounts received by states, units of general local government, and subrecipients. However, Section 2301(d)(4) imposes certain limitations and requirements that necessitate an alternative requirement to govern the use of program income generated by activities carried out pursuant to Section 2301(c). The limitations and requirements are based on the NSP activity that generated the program income and on the date the income is received. In addition, Section 2301(d)(4) requires any revenue from the sale, rental, redevelopment, rehabilitation or any other eligible use of NSP funds to be provided to and used by the state or unit of local general government. This includes revenue received by a private individual or other entity that is not a subrecipient. Program income received before July 30, 2013, may be retained by the state or unit of general local government if it is treated as additional CDBG funds and used in accordance 1102 - 1231314 193 Collier-County, Florida 148 70 Schedule of Findings and Questioned Costs (continued) with the requirements of Section 2301. Furthermore, as provided under 24 CFR 85.21 for entitlements, grantees and subrecipients shall disburse program income before requesting additional cash withdrawals from the U.S. Treasury. Condition/Context We noted a total of approximately $732,000 of program income generated during fiscal year 2010 under the Neighborhood Stabilization Program (NSP) which is part of the CDBG program. Per review of the general ledger expenditure detail provided, we noted that the program income had been applied against specific program expenditures in determining the net amount of program expenditures reported in the SEFA. From the detail of program income provided, we selected a sample of specific program income transactions for testing and the first selection of approximately $66,000 was recorded in May 2010. The remaining five selections included in our sample were recorded during September 2010. There were no NSP program cash draws made subsequent to the receipt of the program income recorded in September 2010. We attempted to ascertain whether the amounts received as program income in May 2010 were properly offset against program expenditures in determining the amount of federal funds drawn for the next draw request occurring subsequent to the date the program income was received in order to satisfy the requirement that program income is used before requesting additional cash draws. However, we were informed that the May 2010 program income of $66,000 had not been deducting in subsequent cash draw requests made during fiscal year 2010. Questioned Costs N/A Cause /Effect It appears that NSP program income recorded in May 2010 was not used to offset expenditures prior to requesting additional cash draws. Recommendation We recommend that the County implement procedures to verify that program income received is properly offset against expenditures incurred when making draw requests under the federal program. 1102 - 1231314 194 Collier County, Florida 14B 7 Schedule of Findings and Questioned Costs (continued) Views of Responsible Officials and Planned Corrective Action Collier County concurs with the recommendation. Prior to making a request to draw new funds under NSP, County fiscal staff will submit evidence to the program administrator that all program income received will be, or has been, offset against expenditures. This requirement will apply regardless of what NSP activity generated the program income or what activity Collier County seeks to draw down against available program funds. Finding 2010 -7 Federal Program Information U.S. Department of Housing and Urban Development Community Development Block Grants/Entitlement Grants (CDBG) CFDA No. 14.218 Criteria Reporting: Per the NSP program regulations contained in the Federal Register, each grantee must submit a quarterly performance report, as HUD prescribes, no later than 30 days following the end of each quarter, beginning 30 days after the completion of the first full calendar quarter after grant award and continuing until the end of the 15th month after initial receipt of grant funds. In addition to this quarterly performance reporting, each grantee will report monthly on its NSP obligations and expenditures beginning 30 days after the end of the 15th month following receipt of funds, and continuing until reported total obligations are equal to or greater than the total NSP grant. After HUD has accepted a report from a grantee showing such obligation of funds, the monthly reporting requirement will end and quarterly reports will continue until all NSP funds (including program income) have been expended and those expenditures are included in a report to HUD. The compliance supplement requires that performance reports are complete and accurate. Condition/Context We selected two quarterly reports for the NSP program to test and noted that amounts reported for expenditures did not agree to the County's general ledger and a reconciliation was not provided. 1102 - 1231314 195 14B 7 Collier County, Florida Schedule of Findings and Questioned Costs (continued) Questioned Costs ��11 Cause /Effect The reports submitted were not subjected to a thorough supervisory review to ensure accuracy and completeness, including verification that amounts reported agreed to the accounting records or were appropriately reconciled, if necessary. Recommendation The County should implement procedures that require that the NSP reports be reconciled to the general ledger and reviewed and approved prior to being filed with the grantor. Views of Responsible Officials and Planned Corrective Action Collier County concurs with the recommendation. Program staff will ensure expenditures and program income have been reconciled to the general ledger. This item has been corrected and appropriate controls and procedures have been implemented to reconcile to the general ledger before submitting future Quarterly Performance Reports (QPR) to the grantor agency. Furthermore, future reports will be approved by the program administrator and appropriate documentation will be maintained prior to being filed with the grantor agency. 1102 - 1231314 196 Collier county, 14B 74 Co tY� Florida Schedule of Prior Audit Findings For the Year Ended September 30, 2010 The current status of findings reported for the years ended September 30, 2009 and 2008 related to major federal programs and state projects is as follows: Finding 2009 -1 Federal /State Program Information Federal Agencies /Programs: U.S. Department of Housing and Urban Development (HUD) Home Investment Partnerships Program (HOME) — CFDA No. 14.239 Community Development Block Program (CDBG) — CFDA No. 14.218 U.S. Department of Health and Human Services Aging Cluster (AC) — CFDA No.'s 93.044, 93.045, 93.053, 93.705, 93.707 State Agencies/Programs: Florida Department of Elder Affairs Community Care for the Elderly (CCE) — CSFA No. 65.010 Florida Housing Finance Corporation State Housing Initiatives Partnership Program (SHIP) — CSFA No. 52.901 Compliance Requirement: Allowable Costs ConditionlContext We noted that from the beginning of the fiscal year through January 2009, the County's documentation supporting payroll allocations for employees that work on multiple grants did not meet federal standards as described in OMB Circular A -87 above. The County has used a Personnel Activity Report (PAR) to allocate payroll salaries for employees who work on multiple activities. These reports are prepared annually, at the beginning of each fiscal year, based on an estimate of the time the employees are expected to work on a grant. The PAR does not show the total activity for which an employee is compensated and does not require the employee's signature. 1102 - 1231314 197 14B 7 Collier County, Florida Schedule of Prior Audit Findings (continued) The County's Department of Housing and Human Services initiated a timesheet process in fiscal year 2006 whereby employees in the department indicate the projects to which their time relates each week. These timesheets are signed by the employees and supervisors and kept in the department for internal control purposes. For the first part of fiscal year 2009, these timesheets were not provided to the County's payroll department to adjust the allocation of payroll costs from the estimate as indicated in the annual PAR form to actual time spent. Thus, there is not an "after the fact' ' accounting based on actual activity. We noted that the HOME program had no payroll expenditures charged to the program during the period noted above (although there should have been), and therefore, no question costs have been reported for this program. The payroll charges related to the HOME program were instead charged to other housing programs as a result of the lack of an after the fact accounting for the period noted above. Recommendation The County should ensure that an effective and consistent process is in place to record payroll charges to grant programs throughout the entire fiscal year. The process should entail providing the timesheets to the payroll department on a periodic basis to match the related payroll allocated to each grant (as based on the PAR), to the actual time spent working on the federal/state grant based on the after- the -fact timesheet, and any adjustments necessary to true -up the estimated payroll charged to the grant (based on the PAR) to the actual amount (based on the timesheets) should be made. Alternatively, the payroll department could charge payroll costs to the grants based on actual timesheets submitted weekly as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay period. PAR reports should be signed by the employee and completed at least semi - annually for those employees who work solely on one grant. Views of Responsible Officials and Planned Corrective Action The finding in question occurred during the I" quarter of FY09. The time was tracked correctly; however, a manual step was missed. Effective January 17, 2009, the Human Resources Department began processing bi- weekly time .and effort entries for all Housing and Human Services grant staff. Staff submits timesheets that are signed by the employee and management to fiscal staff for review. The timesheets are forwarded to Human Resources to enter the actual percentage of time and effort into SAP prior to payroll expenses actually posting to SAP. This allows for "real time" charges directly to the appropriate grant in SAP, thereby eliminating the need to process journal entries at all. 1102 - 1231314 198 Collier County, Florida 14B 7 Schedule of Prior Audit Findings (continued) Current Status Currently, all Housing, Human and Veterans staff members who work on grants submit bi- weekly timesheets that are signed by the employee and management for fiscal staff for review. The timesheets are forwarded to Human Resources to enter the actual percentage of time and effort into SAP prior to payroll expenses actually posting to SAP. This allows for "real time" charges directly to the appropriate grant in SAP, thereby eliminating the need to process journal entries at all. Finding 2009 -2 Federal Program Information Federal Agency/Program: U.S. Department of Housing and Urban Development (HUD): Community Development Block Grant / State's Program (DRI) — CFDA No. 14.228 U.S. Department of Agriculture: Summer Food Service Program for Children — CFDA No. 10.559 U.S. Department of Justice: Public Safety Partnership and Community Policing Grants — CFDA No. 16.710 U.S. Department of Homeland Security: Homeland Security Cluster — CFDA No. 97.004, 97.067 U.S. Department of Transportation: Airport Improvement Program— CFDA No. 20.106 Compliance Requirement. Procurement, Suspension and Debarment ConditionlContext Although the County indicated that its practice is to check the EPLS system, no documentation evidencing that it had checked the EPLS was maintained, and a certification from the entity was not collected or clause or condition included in the agreements, as applicable, for certain sample transactions selected for testing. 1102 - 1231314 199 Collier County, Florida Schedule of Prior Audit Findings (continued) Recommenddtion 148 7 The County should perform the required verification by checking the EPLS (and documenting evidence of the verification, when it was performed and by whom), collecting a certification from the entity, or adding a clause or condition to the contract with that entity in accordance with the Federal requirements. Views of Responsible Officials and Planned Corrective Action Collier County will apply currently enacted controls and measures operating effectively in one division agency -wide to ensure compliance. The Grants Coordinator for the Collier County Sheriff's Office will be responsible for checking EPLS and documenting the verification as recommended above for all Sheriff s grants with this requirement. Current Status At Housing, Human and Veteran Services, debarment certification letters are required for new sub recipients as part of the grant application submission process. A sub recipient folder checklist ensures compliance. Assigned Grant Coordinators or staff members check all sub recipients, vendors and contractors against the EPLS listing. Screen Prints of EPLS listing are made to prove verification and are included in the file. At Parks & Recreation, the Department Operations Manager checks the EPLS and places the verification in the fiscal records associated with the project. Collier County Department of Emergency Management - Administrative Assistant checks EPLS and documents the verification. It has also been our practice to utilize GSA vendor sources where applicable further ensuring appropriate use of federal funds. Airport Authority personnel check the EPLS web site (https:/ /www.epls.gov /epls /search.do) and print documentation as verification for each vendor. This documentation will be initialed, scanned and attached to the requisition electronically within the counties accounting system. The Grants Coordinator for the Collier County Sheriff's Office checks EPLS and documents the verification as required for all Sheriff's grants. 1102- 1231314 200 Collier County, Florida 14B 7 Schedule of Prior Audit Findings (continued) Finding 2009 -3 State Program Information Florida Housing Finance Corporation (the Corporation) State Housing Initiatives Partnership Program (SHIP) CSFA No. 52.901 Criteria: Reporting Condition/Context The financial information included in the submitted Annual Report was not reconciled to the County's general ledger. Accordingly, we were unable to validate the amount of expenditures and program income reported in the Annual Report. Additionally, we noted approximately $192,000 of reversal entries appearing in the detail we were provided of SHIP projects completed during fiscal year 2009 and we were informed that these credits represented prior period corrections dating back as far as 2003. Recommendation The County should implement procedures that require that the statutory reports be reconciled to the general ledger and reviewed and approved prior to being filed with the State. Additionally, should corrections to prior period expenditures be necessary, a process should be in place to ensure that such items are identified and captured on a timely basis. Views of Responsible Officials and Planned Corrective Action Management concurs with the recommendations. Recognizing that internal attempts at completing this difficult reconciliation have fallen short of the requirement, Housing and Human Services has budgeted SHIP grant funds to receive onsite and offsite technical assistance (TA) from the Florida Housing Coalition (FHC). FHC is the technical advisor designated by the grantor agency, Florida Housing Finance Corporation. The TA will consist of reviewing current reconciliation procedures, reports and data collection and maintenance. Any suggested improvements will be implemented. As of this writing, the contract for TA is being review by Housing and Human Services and the County Attorney's Office for form and legal sufficiency. 1102 - 1231314 201 Collier County, Florida 14B 7 Schedule of Prior Audit Findings (continued) Current Status Collier County is currently under contract with the Florida Housing Coalition (FHC) to receive the technical assistance (TA) described above; a copy of the contract for TA is available for review. On July 1, 2010, Collier County met with the FHC consultant. The consultant advised Collier County to reconcile the annual reports of three fiscal years: 2008/2009, 2007/2008, 2006/2007 and submit them by June 1, 2011. Once the reconciliation is complete and best practices are implemented, financial reports will be adjusted as needed and resubmitted to the Florida Housing Finance Corporation (FHFC). In addition, the County has hired two Grants Accountants whose role will be tq act as internal auditors to ensure best practices are being implemented for all of the County's grants. Also see finding 2010 -1 above. Finding 2009 -4 State Program Information Florida Housing Finance Corporation (the Corporation) State Housing Initiatives Partnership Program (SHIP) CSFA No. 52.901 Criteria: Special Tests and Provisions ConditionlContext No advertisement was made for fiscal year 2009. Recommendation The County should adhere to the established SHIP rules with respect to advertising SHIP funds. Views of Responsible Officials and Planned Corrective Action The County will adhere to the established SHIP rules. 1102 - 1231314 202 Collier County, Florida Schedule of Prior Audit Findings (continued) Current Status 14B 74 The availability of SHIP FY08 -09 funding was published on March 5, 2010. An Affidavit of Publication is available for review. Finding 2009 -5 State Program Information Florida Department of Transportation (FDOT) State Infrastructure Bank (SIB) Loan Program CSFA No. 55.020 Criteria: Reporting Condition/Context The State compliance supplement for this program and the loan agreement require the submission to FDOT of semi - annual progress reports on program and financial activities that occur each year following the award. We noted that reports for December 2008 and June 2009 were not completed or submitted to the FDOT until the time of our testing (September 2009). Recommendation The County should review agreements for reporting requirements and if questions arise as to party responsible for completion, the County should promptly seek written clarification from the grantor agency. Also, the County should ensure that reports are reviewed for accuracy and completeness by someone other than the preparer. Views of Responsible Officials and Planned Corrective Action Originally the SIB agreement was for road construction considered to be a local Collier County project. After the SIB agreement was executed, Federal Highway Administration (FHWA) determined that the project would become a state project due to the procurement for a Design Build Finance of I -75 (IROX). Collier's original local project became part of larger state IROX project. 1102 - 1231314 203 14B 7 Collier County, Florida Schedule of Prior Audit Findings (continued) The Grants Coordinator made a verbal inquiry to Florida Department of Transportation (FDOT) during calendar year 2008 regarding the reporting requirements cited in the SIB agreement and was advised the report was not Collier's responsibility since the project was not let by Collier nor would any portion of the project be managed by Collier as originally anticipated. Subsequently, a report was requested by FDOT for only the most recent six month period. Collier explained to FDOT that if the report was now required, all reports due during the fiscal year 2009 would need to be drafted and submitted as due diligence. All reports submitted were reviewed by the Transportation Administrator though not formally documented as such. Subsequent report reviews by the Transportation Administrator are documented before submission. Collier has no access to FDOT's financial activity or financial system which is needed to complete the report, nor does Collier receive any project status reports on a routine basis. Collier only has access to the data on the amount of loan payback which Collier disburses. This loan payment information can be populated by FDOT as well. Collier must request financial activity and project status information proactively. Requests for data from the grantor on prior year single audit reporting and CAFR data such as loan amortization schedules and project statuses to capture asset valuation has proven to be cumbersome and difficult. Future financial activity requests will be made within 10 business days after the semi - annual report period end to FDOT in order to verify and obtain correct data by the submission date. The Division will prepare the report based on the information provided by FDOT. Prior to submission, the Transportation Administrator will perform a documented review. Current Status The Growth Management Division (formerly Transportation Division) continues to follow the corrective action procedure as outlined above. The Acting Grants Accountant drafts the SIB report in coordination with FDOT and then submits the report for review and approval by the Division Administrator prior to final submission to FDOT by the required deadline. 1102 - 1231314 204 14,8 71 Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 2009 -6 Federal Program Information Federal Agency/Program: U.S. Department of Transportation: Airport Improvement Program— CFDA No. 20.106 Criteria: Davis -Bacon Act Condition/Context We noted a project during fiscal year 2009 that was subject to the Davis -Bacon requirements. We noted that the required prevailing wage clauses were not included in the contract and the weekly certified payrolls had not been submitted as required. We were informed that the County planned to obtain the certified payrolls upon project completion; however, the requirements dictate that weekly certified payrolls are to be submitted during the course of the project. Recommendation The County should ensure that the required prevailing wage clauses are included in all contracts subject to the Davis -Bacon Act and that the required weekly certified payrolls are obtained. Views of Responsible Officials and Planned Corrective Action In order to rectify this deficiency Airport Authority personnel will review payroll submittals and provide documentation to assure compliance with the Davis -Bacon Act. Additionally personnel will work with any consultants and purchasing to include proper language in bids and contracts. In addition our procedure manual will be updated. Current Status The proper contract language regarding Davis -Bacon is now included in bids and contracts. The Airport Authority Consultants will examine the payroll statements provided and certified by the contractor, determine whether such wages comply with the locally prevailing wages as incorporated in and made part of the contract bid, and to document such determination. The Airport will subsequently perform its own examination, determination and documentation by making a notation on each payroll statement stating that the wages paid by the contractor have been reviewed and that they are /are not in compliance. 1102 - 1231314 205 Collier County, Florida 148 7 Schedule of Prior Audit Findings (continued) Finding 2008 -1 Federal /State Program Information Federal Agency: US Department of Housing and Urban Development (HUD) Home Investment Partnerships Program (HOME) — CFDA No. 14.239 Community Development Block Program (CDBG) — CFDA No. 14.218 State Agency: Florida Housing Finance Corporation State Housing Initiatives Partnership Program (SHIP) — CSFA No. 52.901 Compliance Requirement. Allowable Costs Condition/Context We noted that for the majority of fiscal year 2008, the County's documentation supporting payroll allocations for employees that work on multiple grants did not meet federal standards as described in OMB Circular A -87 above. The County has used a Personnel Activity Report (PAR) to allocate payroll salaries for employees who work on multiple activities. These reports are prepared annually, at the beginning of each fiscal year, based on an estimate of the time the employees are expected to work on a grant. The PAR does not show the total activity for which an employee is compensated and does not require the employee's signature. The County's Department of Housing and Human Services (the department responsible for the administration of the HUD grants) initiated a timesheet process in fiscal year 2006 whereby employees in the department indicate the projects (HOME, SHIP, or CDBG) to which their time relates each week. These timesheets are signed by the employees and supervisors and kept in the department for internal control purposes. For the majority of fiscal year 2008, these timesheets were not provided to the County's payroll department to adjust the allocation of payroll costs from the estimate as indicated in the annual PAR form to actual time spent. Thus, there is not an "after the fact" accounting based on actual activity. Recommendation We recommend that the County continue to use the timesheet process implemented during fiscal year 2006 whereby the employees and a supervisor sign each timesheet. In addition, the County should implement a process to provide the timesheets to the payroll department on a periodic basis to match the related payroll allocated to each grant (as based on the PAR), to the actual time spent working on the federal/state grant based on the after- the -fact timesheet, and any 1102- 1231314 206 146 7 Collier County, Florida Schedule of Prior Audit Findings (continued) adjustments necessary to true -up the estimated payroll charged to the grant (based on the PAR) to the actual amount (based on the timesheets) should be made. Alternatively, the payroll department could charge payroll costs to the grants based on actual timesheets submitted weekly as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay period. PAR reports should be signed by the employee and completed at least semi - annually for those employees who work solely on one grant.- Planned Corrective Action Effective July 1, 2008, all grant staff were required to complete bi- weekly timesheets indicating the amount of hours spent on each grant. This timesheet is signed by the employee and the employee's supervisor. Journal entries are then made by fiscal staff to charge actual time and effort worked to the appropriate grant. In an effort to mitigate this finding even further, effective January 1, 2009, the Human Resources department began processing bi- weekly time and effect entries for all Housing and Human Services` grant staff. Staff will continue to complete their bi- weekly timesheets. The timesheets will be sent to Human Resources to enter the actual time into SAP prior to the payroll actually posting to SAP. This will allow for actual time spent to be charged directly to the appropriate grant in SAP, thereby eliminating the need to process journal entries at a later date. Current Status Since January 17, 2009, the Human Resources Department began processing bi- weekly time and effort entries for all Housing, Human and Veteran Services grant staff. Staff submits timesheets that are signed by the employee and management to fiscal staff for review. The timesheets are forwarded to Human Resources to enter the actual percentage of time and effort into SAP prior to payroll expenses actually posting to SAP. This allows for "real time" charges directly to the appropriate grant in SAP, thereby eliminating the need to process journal entries at a later date. 1102 - 1231314 207 148 7 Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 2008 -2 Federal Program Information U.S. Department of Justice State Criminal Alien Assistance Program ( SCAAP) — CFDA No. 16.606 Compliance Requirement: Reporting ConditionlContext In addition to overtime which appears to be allowable based on the information stated in the original finding, the County included wage benefits (i.e. incentives, training costs, retirement, group life and health insurance, and workers compensation) totaling $6.5 million in the calculation of total correctional salaries reported in the SCARP grant application for the FY 2007 SCAAP grant. Also, the number of certified correctional officers employed during the reporting period reported in the application of 321 was overstated by 65 due to vacant positions being erroneously included in the amount submitted in the application. Recommendation We understand from the Sheriff's personnel that benefits were appropriately excluded from the FY 2008 SCAAP award application. In the future, we recommend that the Sheriff review program guidelines and contact the grantor agency if reporting criteria are not clearly stated or if clarification is needed in interpreting information contained in the program guidelines. Written documentation from the grantor agency should be retained to support any such correspondence. Additionally, a thorough review of future applications should be made in order to detect potential errors such as with respect to the number of correctional officer positions reported as noted above. Planned Corrective Action As stated in the recommendation, the calculation was changed for the FY2008 application. We concur with this recommendation to contact the grantor agency in writing, if reporting criteria are not clearly stated or if clarification is needed in interpreting information contained in the 1102- 1231314 208 Collier County, Florida 14B Schedule of Prior Audit Findings (continued) program guidelines. We do believe, having dealt with this grant for many years, that there have been years in which the criteria for calculation could be interpreted differently by different parties. Documentation has not always been clear in establishing guidelines. Current Status In January, 2010 CCSO returned $622,510 to the US Department of Justice (DOJ) as a result of DOJ's audit of the SCAAP 2007 application. In April, 2010 DOJ reduced the SCAAP 2009 award by $791,555 as a result of their audit of the SCAAP 2006 application. Finding 2008 -3 Federal Program Information Federal Agency/Program: U.S. Department of Housing and Urban Development (HUD): Community Development Block Grant/ State's Program (DRI) — CFDA No. 14.228 U.S. Department of Transportation: Highway Planning and Construction Federal Transit Cluster — CFDA No. 20.500 / 20.507 Compliance Requirement: Procurement, Suspension and Debarment Condition/Context Although the County indicated that its practice is to check the EPLS system, no documentation evidencing that it had checked the EPLS was maintained, and a certification from the entity was not collected or clause or condition included in the agreements, as applicable, for certain sample transactions selected for testing. Recommendation The County should perform the required verification by checking the EPLS (and documenting evidence of the verification, when it was performed and by whom), collecting a certification from the entity, or adding a clause or condition to the contract with that entity in accordance with the Federal requirements. Planned Corrective Action Management concurs with this finding. 1102- 1231314 209 146 7 Collier County, Florida Schedule of Prior Audit Findings (continued) While the Department of Housing and Human Services (ISIS) has always checked vendors against the EPLS listing; this check did not include non - profit subrecipients. As of December 2008, HHS now requires current audit reports and debarment certification letters for all subrecipients as part of the grant application submission process. Once awards are made, the assigned Grant Coordinator is responsible for checking all subrecipients, vendors and contractors against the EPLS listing. Screen prints of the EPLS listing are made to prove verification and are included in the file. Debarment and audit reports have also been included in the Master File Checklist which is included in the file folder and reviewed by the Grants Manager. The Transportation Division has started a new procedure during FY09 where all grant related purchase orders will be approved by the Grants Coordinator. At the time of review for approval, the Grants Coordinator performs verification that the vendor has not been suspended or debarred or otherwise excluded at the EPLS, website. The verification is printed and maintained in the grant procurement file. In addition, current procedures include federal clause language and a written certification for all federal transit grant procurements over $50,000. Other steps are taken by the Purchasing Department at the time of advertisement of bids and requests for proposals that include review of each project to determine if grant funding is involved and whether there are specific compliance issues related to debarment. Forms are provided to vendors requiring they certify they are not on the Excluded Parties List. Furthermore, departments managing grants have been provided a link on the Purchasing Department website to the EPLS website so they can complete their own verification. Current Status Housing, Human and Veteran Services requires debarment certification letters for new sub recipients as part of the grant application submission process. A sub recipient folder checklist ensures compliance. Assigned Grant Coordinators or staff members check all sub recipients, vendors and contractors against the EPLS listing. Screen Prints of EPLS listing are made to prove verification and are included in the file. Growth Management Division (formerly Transportation Division) continues to conduct EPLS checks as part of the grant requisition process prior to commitment of any federal grant funding. The grant requisition is routed to the Acting Grants Accountant for review and verification the EPLS check is completed and compliant. Also see finding 2009 -2 above. 1102 - 1231314 210 146 70 Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 2008 -4 Federal Program Information U.S. Environmental Protection Agency Capitalization Grants For Drinking Water State Revolving Funds (SRF) — CFDA No. 66.468 Compliance Requirement: Allowable Costs ConditionlContext We reviewed all of the invoices supporting the loan expenditures reported and noted two invoices for consulting services dated in August 2008 totaling $12,942 included in the August 28, 2008 disbursement request that had not been reviewed and approved by the related Project Manager prior to seeking reimbursement under the loan program. We did not identify any discrepancies or exceptions in our compliance testing. Recommendation We recommend that all invoices be properly reviewed and approved to ensure that they are allowable costs prior to being charged to the loan program. Planned Corrective Action Public Utilities initiated a procedure for grants in December 2008 that now includes adding the Accounting Technician's name to the SRF transmittal sheet. The Accounting Technician verifies whether all the invoices are properly approved and are paid. After this approval, it goes to the Project Manager, Director and the Administrator for approval of the disbursement request. Current Status The procedure noted above was implemented in December 2008, and continues to be in effect. 1102- 1231314 211 14B 7" Collier County, Florida Schedule of Prior Audit Findings (continued) Finding 2008 -5 State Program Information Florida Housing Finance Corporation (the Corporation) State Housing Initiatives Partnership Program (SHIP) CSFA No. 52.901 Compliance Requirement: Reporting Condition/Context The financial information included in the submitted Annual Report was not reconciled to the County's general ledger. Accordingly, we were unable to validate the amount of expenditures and program income reported in the Annual Report. Recommendation The County should implement procedures that require that the statutory reports be reconciled to the general ledger and reviewed and approved by finance department staff prior to being filed with the State. Planned Corrective Action The Department of Housing and Human Services recognizes the importance of reconciling statutory reports, internal staff reports, and the general ledger. Procedures were implemented following the FY07 audit. While these procedures greatly improved the accuracy and accountability of the statutory and internal staff reports, they did not account for the point -in- time nature of the statutory reports. To effectively control for, and document, the complete reconciliation of the statutory reports and general ledger, the Department of Housing and Human. Services will produce a "screen shot" from within the general ledger software (SAP) to be included with the statutory report. 'The purpose of this activity is to document the status of funds during the reporting timeframe. Prior to submitting statutory reports, the Department of Housing and Human Services will provide a copy of the report to the Clerk of Courts Finance Department for review. Approval of the statutory report lies with the Board of County Commissioners. 1102 - 1231314 212 148 7M Collier County, Florida Schedule of Prior Audit Findings (continued) Current Status Collier County is currently under contract with the Florida Housing Coalition (FHC) to receive the technical assistance (TA) described above; a copy of the contract for TA is available for review. On July 1, 2010, Collier County met with the FHC consultant. The consultant advised Collier County to reconcile the annual reports of three fiscal years: 2008/2009, 2007/2008, 2006/2007 and submit them by June 1, 2011. Once the reconciliation is complete and best practices are implemented, financial reports will be adjusted as needed and resubmitted to the Florida Housing Finance Corporation (FHFC). In addition, the County has hired two Grants Accountants whose role will be to act as internal auditors to ensure best practices are being implemented for all of the County's grants. Also see finding 2009 -3 and 2010 -1 above. Finding 2008 -6 Federal Program Information U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant / State's Program (DRI) CFDA No. 14.228 Compliance Requirement. Reporting Condition/Context This federal grant is passed through to the County from the State of Florida, Department of Community Affairs (the Department). The grant agreement between the Department and the County sets forth various reporting requirements. We noted that the County completed the required reports, as applicable, during fiscal year 2008, and we did not note any discrepancies. However, there was no evidence that a review as to accuracy and completeness took place for certain reports submitted to the Department (i.e. Contractual Obligation and MBE Report, Projection of Contract Payments Form and Disaster Quarterly Status Report). 1102 - 1231314 213 Collier County, Florida Schedule of Prior Audit Findings (continued) Recommendation 148 71 The County should implement procedures whereby review by someone other than the preparer is obtained to help ensure completeness and accuracy of the reports submitted to the Department. Such reviews and approvals should be documented to evidence that the review took place. Planned Corrective Action The Department of Housing and Human Services has implemented procedures to ensure all reports are reviewed for accuracy prior to submission to the Department of Community Affairs. Once prepared, reports are reviewed for errors and/or omissions by the Housing Manager. Once approved as accurate, the Housing Manager signs the report to indicate completed review. Copies of signed reports are maintained by staff of the Department of Housing and Human Services. Current Status The Housing Manager continues to review, sign, and approve all reports prior to submission to the Florida Department of Community Affairs. 1102 - 1231314 214 II IIIII��,ll��illlr,, °1 EI?NSM & Lf'6JN6..9 Ernst & Young LLP Suite 500 7 5100 Town Center Circle Boca Raton, Florida 33486 Tel: +1 561 955 8000 Fax: +1 561 955 8200 www.ey.com Management Letter and State Reporting Requirements Members of the Board of County Commissioners Collier County, Florida: We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida as of and for the year ended September 30, 2010, which collectively comprise Collier County, Florida's basic financial statements and have issued our report thereon dated February 22, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial. audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. We have issued our Report of Independent Certified Public Accountants 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, Report of Independent Certified Public Accountants on Compliance with Requirements That Could Have a Direct and Material Effect on each Major Federal Program and State Project and on Internal Control over Compliance in Accordance with OMB Circular A -133, Section 215.97, Florida Statutes and Chapter 10.550, Rules of the Auditor General, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated February 22, 2011, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida. We have the following suggestions for improvement in accounting procedures and controls. 1102 - 1231597 A member firm of Ernst & Young Global Limited JE1 ERNST &YOUNG A. CURRENT YEAR FINDINGS AND RECOMMENDATIONS 2010 -1 Grant Reporting Controls (Sheriffs Office) 14B 7 Observation During our single audit testing over reporting requirements for the "Recovery Act — Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to States and Territories" federal program, we noted that for one of the quarterly performance reports during fiscal year 2010 sampled that the expenditures were overstated by approximately $2,850. The report covered the three month period ended JunortO� 2010 eanerformance reporticoveingathe prior O expenditures which had been previously rep P three months ended March 31, 2010. We also noted that there was no evidence of reports submitted to the grantor agency being reviewed prior to submission by someone other than the preparer for accuracy and completeness. Recommendation We recommend that all reports submitted to grantor agencies be subjected to a supervisory review for accuracy and completeness prior to submission. The preparer and the reviewer should sign -off on the report and a copy should be retained in the file to provide evidence that the report was properly reviewed. Management's Response The expenditures on the quarterly reports are a compilation of the monthly claims which have been submitted to the grantor. Monthly claims are reviewed and approve Oyi he. Fiten ly Director prior to submission. The report for the period ended June 30, included one expenditure from the prior reporting ti report period. I grant. should be noted that all expenditures were accurately reported in the final p A spreadsheet is maintained which details expenditures for the grant claims and provides documentation for what is submitted on the quarterly reports. Because all required reports are directly submitted online, the spreadsheet will serve as a review document for the input for the submitted expenditure information. The bpreparer o ado �e spreadsheet -will to sign-off ensure correct spreadsheet. The submitted report will p information was reported to the grantor. 2 1102- 1231597 A member firm of Emst &Young Global Limited J€reNSraS'ouNc t4B 74 2010 -2 Subrecipient Agreements — ARRA Requirements Observation OMB Circular A -133 guidelines require that pass - through entities separately identify to each subrecipient, and document at the time of the subaward and disbursement of funds, the Federal award number, CFDA number, and the amount of American Recovery and Reinvestment Act (ARRA) funds; and require their subrecipients to provide appropriate identification in their Schedule of Expenditures of Federal Awards (SEFA) and Data Collection Form (SF -SAC). For certain ARRA federal programs tested during our single audit (i.e. Community Development Block Grant ARRA Entitlement Grants and Homelessness Prevention and Rapid Re- Housing Program) for which the County made awards to subrecipient organizations, we noted that the agreements with the subrecipients provided the required information regarding the awards and indicated that "the subrecipient shall maintain all records required by ARRA." However, they did not explicitly indicate that the subrecipients are to appropriately identify the ARRA funds in their SEFA and SF -SAC. Recommendation We recommend that the County update its standard form of subrecipient agreement to explicitly state the requirement to provide appropriate identification of ARRA funds in the SEFA and SF -SAC. Management's Response The Collier County Department of Housing, Human & Veteran Services (HHVS) concurs with this audit observation and agrees to amend its American Recovery and Re- Investment Act (ARRA) grants to more specifically outline the Schedule of Expenditures of Federal Awards (SEFA) and the Data Collection Form (SF -SAC) reporting requirement for its subrecipients. The amendment will be made to all Homelessness Prevention and Rapid Re- Housing Program (HPRP) and Community Development Block Grant- Recovery (CDBG -R) subrecipient grant agreements. B. STATUS OF PRIOR YEAR RECOMMENDATIONS 2009 -1 Fixed Assets Observation In previous years, the County capitalized large projects in lump sum amounts instead of specifically identifying each asset and capitalizing separately. As a result, if individual items within a large project, such as waterslides within a total "Park" capital asset balance, are 1102 - 1231597 A member firm of Ernst & Young Global Limited IIIIIIi�� "' "' JR1 ERNST &YOUING 149 70 replaced, the individual item cannot be identified for proper disposal and replacement. Over time, differences between the carrying value of the replaced asset and the carrying value of the new asset can grow to be significant affecting depreciation expense and gains or losses upon disposition of assets. Recommendation We recommend the County implement a policy requiring all assets be accounted for individually in order to correctly calculate depreciation based on the correct expected life, and to allow for better tracking of all assets. Management's Response and Corrective Action Plan Management strives to capitalize assets in a manner that allows individual identification. However, componentization of certain capital assets is an acceptable practice and supported within the GAAP hierarchy. Subsequent replacement of such a componentized capital asset would then have to be expensed as a repair. Management will clarify this in their policies and procedures. Current year status: Management continues to evaluate capital expenditures to determine the appropriate components to add to the capital assets. 2009 -2 Goods Receipt Observation Certain prior year goods receipts were not reversed in a timely fashion in the County's financial system. As such expenditures and liabilities were overstated as of the end of the prior fiscal year. This can occur when a goods receipt is recorded and the related invoice receipt is not processed to clear the transaction. If this is not corrected at year end, reversal in the subsequent fiscal year results in a system generated entry that reduces the liability and expenditure. Since this entry results in additional budget, a manual entry is concurrently processed to reclassify the reduction in expenditure to an increase in miscellaneous revenue. The net effect on expenditures is zero and miscellaneous revenue is overstated. Recommendation Departments should be held accountable for analyzing outstanding goods receipts at year end to ensure all unapplied goods receipted in SAP are investigated in a timely manner. This should take place as part of the annual year -end close process to ensure accurately reporting these expenses in the year incurred. 1102 - 1231597 4 A member firm of Ernst & Young Global Limited IIIIIIIIIIIIUUi� " " " " "� aERNSd &YoUNc 14B 7 � Management's Response and Corrective Action Plan Management concurs with this comment. Staff has developed additional reporting tools that have been provided to user departments. These reports will allow users to continually monitor their outstanding goods receipts. This will ensure that expenditures and liabilities are properly stated at the end of the fiscal year. Current year status: The new report has made it easier for departments to identify goods receipts that have not had a corresponding invoice receipt document processed. This report combined with an emphasis from management to resolve issues timely has resulted in a more accurate reporting of expenditures and liabilities throughout the year. 2009 -3 Other Postemployment Benefits Observation The County does not appear to perform due diligence over the actuarial results in which information would be verified between data provided to the actuary by the County's claim processor third -parry administrator (Meritain), County Risk Management and the Clerk's Finance Department. The lack of review and verification of the underlying data given to the actuary could result in a material misstatement in the Other Post Employment Benefits liability and other accrued liabilities, such as Voluntary Separation Incentive Program pay -outs. Recommendation The County should perform verification checks between the Valuation Report and underlying data, such as verifying: the pay as you go expense, number of retirees, number of active participants, etc. In addition, County Human Resources, County Risk Management, County Management and the Clerk's Finance Department as well as the third party actuary and claim processor should be involved when discussing underlying assumptions, processes and plans for the valuation. This will enhance communication between the interested parties and reduce the risk of miscommunication and the inefficiencies that may result. Management's Response and Corrective Action Plan Staff will coordinate with the TPA, Finance, HR and the actuary to assure that the employee's enrollment and claims data that is reported to the actuary in the future is accurately reported according to the proper employee type such as active, COBRA, Retiree, and VSIP to assure greater accuracy in the calculation of OPEB. 1102 - 1231597 5 A member firm of Ernst & Young Global Limited Current year status: Eff 146 71 County and Clerk's staff coordinated with the actuary and the third party administrator (TPA) to update the OPEB calculations for fiscal year 2010. Staff also performed analytical review of the actuarial estimates, using actual data provided by the TPA, to assess the reasonableness of the net OPEB liability. 2009 -4 Conflict of Interest Policies Observation We became aware of a potential conflict of interest with respect to the HHS director who is also chairman of the board of a non - profit organization to whom HHS makes payments for services. We were informed that this individual, who is ultimately responsible for recommending funding and approving payments as the director of the department, also served as the authorizing party for the sub - recipient claim attestations on a payment request made to the County. Recommendation We recommend that the County review its conflict of interest policies and ensure it has an adequate process in place to either prevent or detect these types of potential conflicts. Additionally, when these types of conflicts are identified, we recommend the County document how it is addressed to ensure conflicts of interest do not actually occur. Management's Response and Corrective Action Plan Management concurs. Staff is conducting a review of existing CMA (County Manager Agency) procedure as directed by the Board of County Commissioners at their meeting on February 9, 2010. Current year status: Management revised and enforced CMA 5311 Code of Ethics and added the following paragraph: "Employees may not serve in a decision - making capacity for any entity that receives funding (either directly or indirectly) from the Board of County Commissioners, including grant funding. Prior to an entity making a request for funding from the Board of County Commissioners, any employee serving the agency in a decision - making capacity must resign from that position. The Board may, with good cause shown, waive this restriction upon a super majority vote." 1102- 1231597 6 A member firm of Ernst & Young Global Limited JE1 ERNgf &YoUNC 14B 70 C. OTHER. REQUIRED COMMUNICATIONS The Rules of the Auditor General, Section 10.554 (1)(i)(1), require that we address in the management letter whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. The status of recommendations made in the preceding annual financial audit is included above. In connection with our audit, we noted no instances of noncompliance with Section 218.415, Florida Statutes regarding the investment of public funds. The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in a management letter any recommendations to improve Collier County, Florida's financial management, accounting procedures, and internal controls. Current year recommendations to improve Collier County, Florida's financial management, accounting procedures, or internal controls are included above. The Rules of the Auditor General, Section 10.554(1)(i)(4), require that we address in a management letter any violations of provisions of contracts and grant agreements or abuse that have an effect on the financial statements that is less than material but more than inconsequential. The results of our audit disclosed no violations of provisions or contracts and grant agreement or abuse that would have an effect on the financial statement that is less than material but more than inconsequential.. The Rules of the Auditor General, Section 10.554(1)(i)(5), require disclosure in the management letter of the following matters, if not addressed in the auditor's report on internal control over financial reporting and on compliance and other matters or in the schedule of findings and questioned costs, and are not clearly inconsequential: (a) Violations of laws, rules, regulations, and contractual provisions or abuse that have occurred, or are likely to have occurred, would have an immaterial effect on the financial statements, and were discovered within the scope of the audit; (b) Control deficiencies that are not significant deficiencies, including, but not limited to: (1) Improper or inadequate accounting procedures (e.g., the omission of required disclosures from the annual financial statements); (2) Failures to properly record financial transactions; and (3) Other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. 1102 - 1231597 A member firm of Ernst & Young Global Limlted 7 III ,i��t''� � � RNST& YOUNG VIII � 148 74 The results of our audit disclosed no violations of laws, rules, regulations, and contractual provisions or abuse, no improper or illegal expenditures, and no control deficiencies other than the internal control recommendations included above. The Rules of the Auditor General, Section 10.554(1)(i)(6), also require 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. In that regard, Collier County, Florida was established under Chapter 107, Section 1, Florida Statutes. The legal authority for Collier County and its component units are discussed in Note 1 to the financial statements. During the course of our audit of the County, nothing came to our attention that would cause us to believe that the County was in a state of financial emergency, as defined by Section 218.503(1), Florida Statutes. As required by the Rules of the Auditor General, Section 10.554(1)(i)(7)(b), the County filedits report pursuant to Section 218.32(1)(a), Florida Statutes. Based on our review of the financial information contained in this report, no material differences were found in comparing this information to that of the basic financial statements. As required by the Rules of the Auditor General, Sections 10.554(1)(i)(7)(c) and 10.556(7), we applied financial condition assessment procedures. It is management's responsibility to monitor the County's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. This report is intended solely for the information and use of the Board of County Commissioners, management and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. �,yxa�-f ELI' February 22, 2011 1102- 1231597 8 A member firm of Ernst & Young Global Limited 148 7 ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy the following -rabies were prepared for the fiscal year ended September 30, 2010. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios � / , .. �� ' .�� 2. 'l \.! «} \� �� / / %� }� ±y`��ale� ` \ � � � �/ 7�� \� � « . {� � .� \y \� ` a :. . }t �`$/ ) f �f � / / \ .�\ �� ! \� � \ . .. . . }d� f: a � � � � � �� \ �` . . �9 c .�� \f ^� � � / \a `. 2 a ) }}: . � \\« /� . / \� ) \� � �� / /`\ \ : ... �(f ` �\ }� : R \� � / >{ �/ /]» /\ \ ( � 146 74 The Comprehensive Annual Financial Report (CAFR) is prepared each year by the office of the Clerk of the Circuit Court on behalf of Collier County government. On the cover: The Florida Everglades is a unique natural wonder and an important part of Collier County. 148 7 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2011 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS FRED W. COYLE, CHAIRMAN — DISTRICT 4 JIM COLETTA, VICE- CHAIRMAN — DISTRICT 5 DONNA FIALA— DISTRICT 1 GEORGIA A. HILLER — DISTRICT 2 TOM HENNING — DISTRICT 3 COUNTY MANAGER LEO E. OCHS, Jr. COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND CHIEF FINANCIAL OFFICER DWIGHT E. BROCK DIRECTOR OF FINANCE AND ACCOUNTING CRYSTAL K. KINZEL Prepared by the Office of the Clerk of the Circuit Court, Finance and Accounting Department COLLIER COUNTY, FLORIDA 14 B COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2011 TABLE OF CONTENTS F1 Page TransmittalLetter ............................................................................................................................................ ............................... i Certificateof Achievement ............................................................................................................................ ............................... vii OrganizationalChart ...................................................................................................................................... ............................... ix FINANCIAL SECTION Report of independent Certified Public Accountants ................................................................................... ............................... 1 Management's Discussion and Analysis ( Unaudited) ................................................................................... ............................... 3 Basic Financial Statements: Statementof Net Assets .......................................................................................................................... ............................... 14 Statementof Activities ................................................................................................................................ .............................16 BalanceSheet —Governmental Funds ..................................................................................................... ............................... 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ............. ............................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ............... .............................20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................. .............................21 General Fund- Statement of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual (Budgetary Basis) ............................................................................................................................ ............................... 22 Statement of Net Assets — Proprietary Funds ............................................................................................ .............................25 Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds ....................... .............................27 Statement of Cash Flows — Proprietary Funds ........................................................................................... .............................28 Statement of Fiduciary Assets and liabilities — Agency Funds ................................................................... .............................30 Notesto the Financial Statements ............................................................................................................. .............................31 RequiredSupplementary Information ........................................................................................................... .............................74 Combining and Individual Fund Financial Statements: NonmaiorGovernmental Funds CombiningBalance Sheet ................................................................................................................................ .............................80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................ .............................90 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non- GAAP) ..............100 Nonmaior Enterprise Funds CombiningStatement of Net Assets ........................................................................................................... ............................... 124 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ....................................... ............................... 125 CombiningStatement of Cash Flows ................................................................................ ............................... ............................126 Internal Service Funds CombiningStatement of Net Assets ........................................................................................................... ............................... 128 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ....................................... ............................... 129 CombiningStatement of Cash Flows ........................................................................................................... ............................... 130 Fiduciary Funds Combining Statement of Fiduciary Assets and Liabilities ........................................................................... ............................... 132 Combining Statement of Changes in Assets and Liabilities ............................................. ............................... ............................133 Component Units CombiningStatement of Net Assets ........................................................................................................... ............................... 136 Combining Statement of Revenues, Expenditures and Changes in Net Assets .............. ............................... ............................137 COLLIER COUNTY, FLORIDA 14B 7 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2011 TABLE OF CONTENTS - CONTINUED STATISTICAL SECTION (UNAUDITED) NetAssets by Component ................................................................................................ ............................... ............................140 Changein Net Assets ................................................................................................................................... ............................... 141 Governmental Activities Tax Revenues by Source ........................................................... ............................... ............................144 Fund Balances of Governmental Funds ...................................................................................................... ............................... 145 Changes in Fund Balances of Governmental Funds .................................................................................... ............................... 146 Assessed Value and Estimated Actual Value of Taxable Property .............................................................. ............................... 148 Property Tax Rates —All Direct and Overlapping Governments ................................................................. ............................... 149 PrincipalTax Payers County- Wide ............................................................................................................... ............................... 150 Property Tax Levies and Collections ............................................................................................................ ............................... 151 Ratiosof Outstanding Debt by Type ............................................................................... ............................... ............................ 152 Ratios of General Bonded Debt Outstanding ............................................................................................. ............................... 153 LegalDebt Margin Information ................................................................................................................... ............................... 154 Direct and Overlapping Governmental Activities Debt ............................................................................... ............................... 154 Pledged- Revenue Coverage ............................................................................................. ............................... ............................ 155 Demographic and Economic Statistics ........................................................................................................ ............................... 156 PrincipalEmployers ..................................................................................................................................... ............................... 157 Full -Time Equivalent County Employees by Function ................................................................................. ............................... 158 OperatingIndicators by Function ................................................................................................................ ............................... 159 CapitalAsset Statistics by Function ............................................................................................................. ............................... 160 SINGLE AUDIT /SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ................163 Report of Independent Certified Public Accountants on Compliance With Requirements Applicable to Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB Circular A -133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General ........ ............................165 Schedule of Expenditures of Federal Awards and State Projects .................................... ............................... ............................170 Notes to the Schedule of Expenditures of Federal Awards and State Projects .............. ............................... ............................176 Schedule of Findings and Questioned Costs .................................................................... ............................... ............................178 Scheduleof Prior Audit Findings ...................................................................................... ............................... ............................205 148 1 THIS PAGE INTENTIONALLY LEFT BLANK CLERK OF THE 0 Dwight E. Brock' COLLIER COUNTY g 3299 TAMIAMI TRAIL Clerk of Courts NAPLES, FLORID March 13, 2012 To the Citizens and Members of the Board of County Commissioners, Collier County, Florida ier COURT 14B 7 '""L Clerk of Courts rE #403 Accountant 46 Auditor Custodian of County Funds It is with extreme pleasure that we present to you, the citizens of Collier County and members of the Board of County Commissioners, the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2011. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Board of County Commissioners and County management. The Clerk of the Circuit Court's Finance and Accounting Department, as well as County management, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements, and maintaining accountability of assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. The Clerk is not capable of representing that the internal controls of the County provide reasonable assurance as his office was precluded from examining those controls for several years as a result of a dispute regarding the role of the Clerk of the Circuit Court as County Auditor. On November 10, 2010 the Florida Supreme Court dismissed the appeal of the Board of County Commissioners of Collier County v. Dwight Brock, and in doing so, reaffirmed the right of Clerk of Courts, Dwight Brock to audit all public funds used in county operations. The Florida Supreme Court upheld an earlier decision by the Florida Second District Court of Appeals issued on September 23, 2009. The Clerk reconstituted its auditing role during fiscal year 2011. Chapter 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counties in the State. For the fiscal year ended September 30, 2011. the independent auditor, Ernst and Young LLP, issued an unqualified opinion on the financial statements. Their report is included in the Financial Section of this report. In addition to meeting the requirements set forth in State statutes, the audit was also designed to meet the requirements of the Federal 1996 Single Audit Act Amendments and the related OMB Circular A -133. The Florida Single Audit is required by Florida Statute 215.97. Information relating to the Single Audits, including the schedule of expenditures of federal awards and state projects and the independent auditors' report on compliance and internal control over compliance with requirements applicable to each major federal and state program, are included in the Federal and State Single Audit Section of this report. Phone- (239) 252 -2745 Fax- (239) 252 -2755 Website- www.collierclerk.com Email- collierclerk@collierclerk.com 14B 7 Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to complement MD &A and the two should be read in concert. Collier County's MD &A can be found in the Financial Section immediately following the independent auditors' report. PROFILE OF THE GOVERNMENT Collier County is a Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and is made up of five residents elected by voters. In addition to the County Commissioners, voters elect the following five constitutional officers: the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The County provides its citizens with a wide range of services that include law enforcement, emergency management, fire and EMS services, animal services, library, museum and cultural services, parks and recreation operations, road maintenance and construction. Additionally, the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, and a transit system. Budgets are prepared annually. Formal budgetary integration is employed as a management control throughout the year. The Board of County Commissioners conducts budget workshops during June of each year. The Board's proposed budget is released by July 15, in accordance with Florida Statutes. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to state statute. Public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state's largest county at 2,026 square miles, is on the southwest coast of Florida, directly west of Miami. With a 2011 population of 321,520 (a 22 percent increase over the last ten years), the County has been considered to be one of the fastest growing counties in the state over the last ten years. The County's economic base is concentrated in tourism, agriculture, fishing, ranching and forestry with a growing services economy and an emerging high technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. Taxable property market valuation for fiscal year 2011 totaled $61.4 billion, or a very high $191,080 per capita. Unemployment levels in recent years approximate, or are slightly above, the statewide average. The 2011 annual County unemployment rate stood at 11.4 %, while the statewide average is 10.6 %. Income levels are high, with a per capita personal income of $60,049. ii The County's financial operations have been managed with recurring- General Fund operating surpluses contributing to historically strong cash and General Fund balance positions. This trend has been negatively impacted by property tax legislation and a general slowing of the economy. The County's millage for General Fund operations in fiscal year 2011 remained at only 35% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Relevant financial policies include the appropriation of carryforward as revenue in the following year, budgeting revenues with a 5% reserve, recommended General Fund unreserved fund balance of between 10% and 15% of actual expenditures, the assessment of impact fees at such levels as allowed by law and supported by studies, and the earmarking of gas taxes for payment of debt service on the Series 2003 and 2005 Gas Tax Revenue Bonds. The Collier County Debt Policy provides for a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13 %. The major focus of the Capital Improvement Plan for fiscal year 2012 will be to complete the transportation network, public service and life, health and safety related projects initiated over the past few years. Funding for road construction will be provided by remaining unspent Road Construction Fund monies and road impact fees. Water and wastewater projects will be focused on maintenance and will be funded primarily by water and wastewater user fees. LONG TERM FINANCIAL PLANNING Long term financial planning in Collier County focuses on the provisions of the Local Government Comprehensive Planning and Land Development Regulation Act. The provisions of this Act require that local government comprehensive plans include a Capital Improvement Element (CIE). The CIE is a planning document that identifies public facilities that will be required during the next five or more years. The Capital Improvement Element is the foundation of Collier County's annual Capital Improvement Program (CIP). Included in the County's current CIP for fiscal years 2012 -2016 are approximately $154 million for transportation projects and approximately $175 million for water and wastewater facilities and various replacement and rehabilitation projects. Parks and recreation projects of approximately $33 million are planned, as well as $26 million for tourist development and green space projects. Less than one percent of the fiscal year 2012 — 2016 Capital Improvement Program is funded by bond or loan proceeds. In summary, the multi -year implications of tax reform, continuing declines in property tax values, volatile state shared revenues and unpredictable construction permitting revenues have changed the priorities of Collier County. Reduction of recurring costs in ad valorem and building fees supported areas, realignment of operations for purposes of efficiency and the reduction or deferral of capital expenditure was used to offset revenue declines. The continued decrease in property taxable values was not unanticipated. New home construction has been hampered by the number of existing homes available and an increased number of foreclosures. The overall housing market remains relatively soft, however there continues to be activity in the high end real estate market. State budget issues are of further concern, competitive regional tourism coupled with sales tax volatility creates potential for unstable State revenues. Hi 14B 7 Historically, Collier County's economy has proven to be better insulated from economic downturns than other Florida counties, or the nation. However, future years will be challenging, given the current issues in the housing market, the state budget, inflationary concerns, and revenue limitations imposed by tax reform. RELEVANT FINANCIAL POLICIES Consistent with the County's Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized, debt will be refinanced. Collier County took advantage of this type of savings by refunding the Series 2002 Capital Improvement Revenue Bonds with the Series 20108 Special Obligation Refunding Revenue Bonds. Collier County also prepaid the remaining outstanding balance of the Series 2008 Conservation Collier Bond during fiscal year 2011. These transactions are further described in Note 8 to the financial statements. The Finance and Accounting Department monitors the. daily cash needs of the County and invests the County's portfolio in accordance with the County's written investment policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund, U.S. treasury securities, U.S. agency securities, commercial paper and bankers' acceptances. The weighted average maturity, to first call, of the total managed portfolio was .35 years, not including overnight deposits, as of September 30, 2011. The average yield for fiscal year 2011 was .78 %, which constitutes a significant reduction from historical rates, but is consistent with current market rates for similar portfolios. Changes in the fair value of investments are recorded as part of interest income in the financial statements. AWARDS GFOA Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2010. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. IV 14B 7 A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past twenty -five years, from fiscal year 1986 to 2010. We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2010. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the last twenty -two consecutive years. The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court for its annual budget for the fiscal year beginning October 1, 2010. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget presentation Award is valid for a period of one year only. The Clerk's Office has received this award for the last ten consecutive years. ACKNOWLEDGEMENTS The preparation and publication of this Comprehensive Annual Financial Report represents a significant effort by the Finance and Accounting Department as well as numerous County personnel who contribute to its production. In particular we would like to express our appreciation to Kelly Jones, CGFO, Edith Manuel, CPA, Precious Corrado, June Wathen, Liz Willis, Suzanne Boothby, Christine Killen, Dan Tripaldi, Ashley Pearson and Don Holder, all Accountants, along with Constance Murray, CGFO, General Operations Manager, Raymond Milum, Jr., Clerk's Fiscal Operations Manager and Nancy Fragione, Senior Financial Specialist, Jennifer Milum, Office Assistant, and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to Ernst and Young LLP, the Board of County Commissioners, the Constitutional Officers, the County Manager, Division Administrators and the Department Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. V 146 7 We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Crystal K. Kinzel, Director of Finance and Accounting, at (239) 252 -6299. Re tfully, Dwigh . Brock Clerk of the Circuit Court Chief Financial Officer Cryste.Kinzel Deputy Clerk =Johnssen, unting Deputy Clerk General Accounting Manager V1 14B 7 Certificate of Achievement for Excellence in Financial Reporting Presented to Collier County Clerk of the Circuit Court Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2010 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. . AMA 3 - President Executive Director 146 7 Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2010. This was the twenty -fifth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. x V m v go •E! p N 0 N O V O � �m 3wupi 08 N W O W s o N o`y. ry O W N C Z N u � a H •� C) y LuNt �U� Q dN %N c`. Y A A C N N Y .yc m u m N � N mN y m � O i a 3 u w n aN 'u5 Y y Z c o a � co _ c N N O c C � � O U C O y N Y C L U 0. u � m yA dog m - N y m o 0 U _ _ m &Z, Z O. A t d N O E ° N A 9 Cm0 jj�N d iy. OmD lo- ' C O y �Nj YL H N •, A S C m � a m m c a m Ede m � N m C y � C d 0 u E E O m � O � m y c 14 U Y 6 m � 0 a u° y 'S v N ` Qqa E E N E E y wEE O a vo m FEC U n oc u c E O 0 14B 7 c C m E N j yo¢ c � O E o t a 'U y O 6 `o C o E cp E o =za 2 0 0 0 • O •C N $ O n E •�EE�y c v .j c A � cr °'' a m (7 Z U b c �0 E� T < Q N y N o` c v a tD J Z o c O c ° a« c=EU oa _ „�?y c � o W O N y O O d c u y V E N c mmtj 2•�� 0 �x m3�ai?S N «, E x i' E 80 C c y m e� v m 2 A Z7 E. C 'o O p = C U = O 'a 0 0 v v o m � � c G o d y d r C C C w y N 6 = G 12.2 'm rry °�- K % � C 2 r �r o a u T c E O = EE,uO� EE N U C O L L E C � •O y OD E a 9`o x O L, ym LL C � u a y. L 6 _ EE C O D 6 d u 0 �z E N E Eq�+ W U U N N c c u 3: co U p p `o U � U U C) y LuNt �U� Q dN %N c`. Y A A C N N Y .yc m u m N � N mN y m � O i a 3 u w n aN 'u5 Y y Z c o a � co _ c N N O c C � � O U C O y N Y C L U 0. u � m yA dog m - N y m o 0 U _ _ m &Z, Z O. A t d N O E ° N A 9 Cm0 jj�N d iy. OmD lo- ' C O y �Nj YL H N •, A S C m � a m m c a m Ede m � N m C y � C d 0 u E E O m � O � m y c 14 U Y 6 m � 0 a u° y 'S v N ` Qqa E E N E E y wEE O a vo m FEC U n oc u c E O 0 14B 7 c C m E N j yo¢ c � O E o t a 'U y O 6 `o C o E cp E o =za 2 0 0 0 • O •C N $ O n E •�EE�y c v .j c A � cr °'' a m (7 Z U b c �0 E� T < Q N y N o` c v a tD J Z o c O c ° a« c=EU oa _ „�?y c � o W O N y O O d c u y V E N c mmtj 2•�� 0 �x m3�ai?S N «, E x i' E 80 C c y m e� v m 2 A Z7 E. C 'o O p = C U = O 'a 0 0 v v o m � � c G o d y d r C C C w y N 6 = G 12.2 'm rry °�- K % � C 2 r �r o a u T c E O = EE,uO� EE N U C O L L E C � •O y OD E a 9`o x O L, ym LL C � 14B 7 c C m E N j yo¢ c � O E o t a 'U y O 6 `o C o E cp E o =za 2 0 0 0 • O •C N $ O n E •�EE�y c v .j c A � cr °'' a m (7 Z U b c �0 E� T < Q N y N o` c v a tD J Z o c O c ° a« c=EU oa _ „�?y c � o W O N y O O d c u y V E N c mmtj 2•�� 0 �x m3�ai?S N «, E x i' E 80 C c y m e� v m 2 A Z7 E. C 'o O p = C U = O 'a 0 0 v v o m � � c G o d y d r C C C w y N 6 = G 12.2 'm rry °�- K % � C 2 r �r o a u T c E O = EE,uO� EE N U C O L L E C � •O y OD E a 9`o x O L, ym LL C � 149 7�: THIS PAGE INTENTIONALLY LEFT BLANK 14B 711 FINANCIAL SECTION 148 74 THIS PAGE INTENTIONALLY LEFT BLANK 14B � � 1 11 _ �) �fl�'� �1 E1� /11 Suite 500 5100 5100 Town Center Circle Boca Raton, FL 33486 Tel: +1 561 955 8000 Fax: +1 561 955 8200 www.ey.com Report of Independent Certified Public Accountants Distinguished Members of the Board of County Commissioners Collier County, Florida: We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (the County), as of and for the year ended September 30, 2011, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the County's internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2011, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison information for the general fund for the year then ended in conformity with US generally accepted accounting principles. 1202 - 1333029 A member firm of Ernst & Young Global Lin led ��llllllllllllm��p0 " " "' °� 14B 7 � JErzNSraYouNc In accordance with Government Auditing Standards, we have also issued our report dated February 29, 2012 on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The Management's Discussion and Analysis on pages 3 through 13 and schedule of funding progress for the retiree health plan on page 74 are not a required part of'the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards and state projects is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A -133, Section 215.97, Florida Statutes and Chapter 10.550, Rules of the Auditor General, and is not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards and state projects have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. February 29, 2012 1202- 1333029 2 f94*%4t -f fl UP A member firm of Ernst 9 Young Global Limited MANAGEMENT'S DISCUSSION AND ANALYSIS 4 B 7 (UNAUDITED) As Clerk of the Circuit Court and chief financial officer of Collier County, Florida, I present the readers of the County's financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30, 2011. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i -vi of this report. Financial Highlights ■ Collier County's assets exceeded its liabilities as of September 30, 2011 by $2,432,895,780. Of this amount, $325,019,266 represents unrestricted net assets and may be used to meet future obligations. ■ The County's total net assets decreased by $1,649,453 when compared to fiscal year 2010, with an $18,356,829 decrease from governmental activities offset by a $16,707,376 increase resulting from business -type activities. ■ As of September 30, 2011 Collier County's governmental fund financial statements showed combined ending fund balances of $384,666,827, a decrease of $25,549,600 over the previous fiscal year. Of the total combined ending fund balance, $14,200,963 remains in the various governmental funds of Collier County as unassigned. Negative unassigned balances in various capital project funds offset the General Fund's unassigned fund balance. ■ The General Fund reported an unassigned fund balance of $54,458,662 at September 30, 2011, a decrease in unassigned General Fund balance of $5,246,578 when compared to September 30, 2010. ■ Total face value of bonded debt, notes and outstanding loans owed by Collier County decreased by $48,863,595 during fiscal year 2011, with a decrease in governmental activities debt of $36,902,855 and a decrease in the net business -type activities debt of $11,960,740. In November of 2010 the outstanding Series 2002 Capital Improvement Revenue Bonds were refinanced by the Series 20108 Special Obligation Revenue Bonds. The Series 2008 Conservation Collier Bonds were prepaid in April of 2011. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County's basic financial statements. Collier County's basic financial statements include government wide and fund financial statements, as well as notes to the basic financial statements. There is additional supplementary information following these financial statements that may be of interest to the reader. Government Wide Financial Statements Government wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Assets and a Statement of Activities and are found on pages 14 to 17 of this report. 14B 7oi The Statement of Net Assets shows the financial position of Collier County as of September 30, 2011. The statement shows the County's assets less its liabilities, with the difference being reported as net assets. Changes in net assets are useful indicators of financial condition. The Statement of Activities follows the statement of net assets and reports the changes in net assets over the fiscal period. All changes in net assets are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business -type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business -type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds Governmental funds, presented on pages 18 to 24, account for substantially the same functions as governmental activities reported under the government wide Statement of Net Assets and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government's near term financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County's statements include two major funds, the General Fund and the Government Facilities Impact Fee Fund. While there are many smaller governmental funds under Collier County management, they are aggregated in a total column named "other governmental funds ". Combining statements for these other governmental funds have been presented elsewhere in this report. 148 74 Proprietary funds Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on pages 25 to 29 of this report. Enterprise funds report, with more detail, the same functions presented as business -type activities in the government wide financial statements for water and sewer, Goodland water, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund and the Solid Waste Disposal Fund are presented individually as major funds. Internal service funds are maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker's compensation insurance, property and casualty insurance, fleet operations and information technology. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government: These funds are not presented in the government wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds are presented on page 30 of this report. All of the County's fiduciary funds are agency funds. The accounting used for agency funds is based on the concept that assets equal liabilities when the government is acting in a fiduciary capacity. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government wide and fund financial statements. The notes appear on pages 32 to 72 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 80. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net assets and statements of revenues, expenses and changes in fund net assets for enterprise funds. Also included are combining financial statements for internal service and agency funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical and Single Audit sections of this report. The statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. The Single Audit grants compliance section lists the expenditures of Federal Awards and State Financial Assistance during the fiscal year and presents grant compliance information as well as auditor reports. 5 i-41B 74 Government Wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. Assets exceeded liabilities by $2,432,895,780 as of the fiscal year ending September 30, 2011 for Collier County. Positive balances were reported in all categories of net assets in the governmental and business -type activities for fiscal year 2011, as well as fiscal year 2010. Collier County's net assets at September 30, 2011 decreased $34,405,775 for unrestricted net assets and increased $21,612,764 for restricted net assets. Restricted net assets are resources subject to external restriction on how they may be used while unrestricted net assets may be used to meet the County's ongoing obligations. Collier County's investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 74.6% of net assets as of September 30, 2011, compared to 74.1% as of September 30, 2010. The County's investment in capital assets, net of depreciation and related debt, increased by $11,143,558, when compared to fiscal year 2010. Capital assets are used to provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct the capital assets. Following are Collier County's net assets and changes in net assets for the fiscal years ended September 30, 2010 and 2011, shown in condensed form: Collier County's Schedule of Net Assets (in millions) 6 Total Governmental Business -type Percentage Activities Activities Total Change 2011 2010 2011 2010 2011 2010 2010 -2011 Current and other assets $ 477.2 $ 513.4 $ 235.6 $ 226.4 $ 712.8 $ 739.8 (3.6%) Capital assets, net 1,619.8 1,651.3 887.7 891.6 2,507.5 2,542.9 (1.4%) Total assets 2,097.0 2,164.7 1,123.3 1,118.0 3,220.3 3,282.7 (1.9%) Long-term liabilities 436.6 471.7 233.9 246.5 670.5 718.2 (6.6%) Current I lab! lities 87.2 101.4 29.7 28.5 116.9 129.9 (10.0 %) Total liabilities 523.8 573.1 263.6 275.0 787.4 848.1 (7.2%) Net assets: Invested in capital assets, net of related debt 1,172.1 1,169.1 643.8 635.7 1,815.9 1,804.8 0.6% Restricted 254.0 232.6 37.9 37.8 291.9 270.4 8.0% Unrestricted 147.1 189.9 178.0 169.5 325.1 359.4 (9.5%) Total net assets $1,573.2 $1,591.6 $ 859.7 $ 843.0 $2,432.9 $2,434.6 (0.1%) 6 14B 7 Collier County's Schedule of Changes in Net Assets (in millions) Total Governmental Business -type Percentage Activities Activities Total Change 2011 2010 2011 2010 2011 2010 2010 -2011 Revenues Program revenues: Charges for services $ 61.6 $ 56.3 $152.9 $149.0 $ 214.5 $ 205.3 4.5% Operating grants and contributions 19.5 31.9 4.4 4.4 23.9 36.3 (34.2 %) Capital grants and contributions 19.4 25.8 14.3 10.4 33.7 36.2 (6.9 %) General revenues: 81.4 76.6 - - 81.4 76.6 6.3% Property taxes 261.6 299.4 - - 261.6 299.4 F (12.6 %) Other taxes and shared revenues 78.9 76.1 - - 78.9 76.1 3.7% Interestincome 3.9 4.7 1.6 1.6 5.5 6.3 (12.7 %) Miscellaneous 11.5 8.0 0.1 0.1 11.6 8.1 43.2% Total revenues 456.4 502.2 173.3 165.5 629.7 667.7 r (5.6 %) Expenses General government 103.0 100.5 - - 103.0 100.5 2.5% Public safety 173.3 179.2 - - 173.3 179.2 F (3.3 %) Physical environment 18.3 16.8 - - 18.3 16.8 8.9% Transportation 81.4 76.6 - - 81.4 76.6 6.3% Economic environment 7.8 11.1 - - 7.8 11.1 (29.7 %) Human services 13.9 13.0 - - 13.9 13.0 6.9% Culture and recreation 44.2 46.9 - - 44.2 46.9 (5.8 %) intereston long -term debt 19.8 19.5 - - 19.8 19.5 1.5% Water and sewer - - 104.3 103.3 104.3 103.3 1.0% Solid waste - - 28.0 27.4 28.0 27.4 2.2% Airport authority - - 4.5 4.4 4.5 4.4 2.3% Emergency medical services - - 22.7 23.1 22.7 23.1 (1.7 %) Mass transit - - 30.2 9.6 10.2 9.6 6.3% Total expenses 461.7 463.6 169.7 167.8 631.4 631.4 0.0% Increase (decrease) in net assets before net transfers (5.3) 38.6 3.6 (2.3) (1.7) 36.3 (104.7 %) Transfers, net (13.1) (11.3) 13.1 11.3 - - - Change in net assets (18.4) 27.3 16.7 9.0 (1.7) 36.3 (104.7 %) Netassets - beginning 1,591.6 1,564.3 843.0 834.0 2,434.6 2,398.3 1.5% Net assets - ending $1 $1,591.6 $8 $843.0 $2 $2,434.6 (0.1 %) 7 14B 7 Governmental Activities The current year decrease in the net assets of governmental activities amounted to $18,356,829, a decrease of 1.2% when compared to the previous year's net assets. The previous fiscal years' increase was 1.8% and this declining rate of growth is the result of a continued decline in overall governmental activities revenues. ■ Overall, revenues related to governmental activities decreased by 9.2 %, or $45,665,566. ■ Total ad valorem taxes collected in fiscal year 2011 were down $37,758,545, or 12.6%, when compared to fiscal year 2010. The decrease in collections is primarily due to an 11.6% average reduction in countywide taxable property values. ■ Fiscal year 2010 included non - recurring operating grant revenues from a Federal Emergency Management Grant reimbursement. ■ Capital grants and contributions have declined as impact fee indexing has decreased amounts collected for governmental impact fees. ■ In total, expenses in governmental activities decreased by .4 %, or $1,938,389. ■ Decreases in expenses occurred in several areas of governmental activity in fiscal year 2011, with the largest dollar value decrease in public safety, followed closely by economic environment and culture and recreation. Decreased personnel costs were a major component of the current year savings. Business -type Activities Increases in net assets related to business -type activities amounted to $16,707,376 in the aggregate, representing a 2.0% increase over the previous year's net assets. ■ The majority of the increase, or $11,170,454, can be attributed to the Collier County Water and Sewer District. Total operating revenues, including water, wastewater and reuse irrigation user fees increased $4,793,019, or 4.8 %, over the previous fiscal year primarily due to increased usage of water, effluent and irrigation water. ■ Fiscal year 2011 water and wastewater impact fee collections were $7,415,367, an increase of 2.2% over fiscal 2010. County Water and Sewer District charges water and wastewater impact fees on new construction in order to finance growth necessitated capital expansion. ■ Operating expenses increased as the Water and Sewer District's focus has shifted from capital expansion to comprehensive maintenance and optimization of existing facilities. Fiscal year 2011 personnel services expenses increased by 2.4 %, when compared to fiscal year 2010. ■ Solid waste operating revenues increased by .6% from fiscal year 2010 while operating costs, including depreciation, increased by 2.3% over the same period. The marginal increase in solid waste operating revenues can be mainly attributed to a new source of revenue from converting landfill gas to energy. Operating costs increased primarily due to maintenance costs associated with the Collier County Landfill. These factors contributed to an increase in solid waste net assets year on year of $3,626,124. 14B 7 Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. As of September 30, 2011 Collier County governmental funds reported combined fund balances of $384,666,827 a decrease of $25,549,600 when compared to prior year combined fund balances. The governmental funds had non - spendable fund balances of $11,805,199 consisting of inventory, prepaid items and General Fund advances to other funds. The restricted fund balance was $229,545,519 and consists of monies whose expenditure is externally constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $143,316,109 in fund balance, $48,445,097 is classified as committed, $80,670,049 is recorded as assigned and $14,200,963 is recorded as unassigned. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2011: The General Fund is the primary operating fund of Collier County. At September 30, 2011, total fund balance in the general fund was $67,377,977, of which $54,458,662 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 19.8%. The total fund balance decreased by $3,968,634 or 5.6%, compared to the September 30, 2010 total fund balance. The decrease in total fund balance as a result of decreased property tax collections. The Government Facilities Impact Fee Fund accounts for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition or construction of government facilities. During fiscal year 2011 the Government Facilities Impact Fee Fund spent $71,561 on the Property Appraiser's Radio Road location, $159,242 on the Courthouse Annex, $109,749 on the Emergency Services Complex and $62,910 on other government facilities. In addition, the fund made debt service related transfers of $4,176,797, impact refunds of $154,099 and paid $27,926 of interest on an interfund advance from the Solid Waste Disposal Fund. Proprietary funds Proprietary fund statements provide the same information as the business -type activities in the government wide financial statements, but in greater detail, and on a fund basis for enterprise funds. At September 30, 2011, total net assets amounted to $859,718,123 for enterprise funds, as compared to $843,010,747 as of September 30, 2010, an increase of $16.7 million. Net assets change as a result of operations, non - operating revenues and expenses, capital contributions and grants and donations. The Collier County Water and Sewer District's activities represent the majority of the increase in the business -type net assets. 9 14B 7 For the year ended September 30, 2011 the Water and Sewer District reported capital grants and contributions of $9,873,756, which includes system development fees of $7,415,367, $2,011,385 in developer infrastructure contributions and other contributions of $447,004. Net Operating Income /(Loss) 2011 2010 County Water and Sewer $ 11,200,354 $ 16,396,126 Solid Waste Disposal 5,834,741 6,264,619 Non -major enterprise funds (23,765,216) (21,584,975) Total $ (6,730,121) $ 1,075,770 The Collier County Water and Sewer Fund net operating income decreased by $5,195,772, when compared to fiscal year 2010. The decrease in net operating income was the result of an overall increase in operating costs, including depreciation and amortization, of 11.9 %. The primary reason for this increase is the ongoing focus on the maintenance of existing utilities infrastructure. County Water and Sewer payments in lieu of taxes paid to the General Fund of $3,778,100 were reclassified from operating expense to operating transfers for financial statement purposes. Personal services expense increased by 2.4 %, when compared to fiscal year 2010, as employer paid health insurance increased by 14.1 %. Capital Assets Collier County's financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County's investment in capital assets for the governmental and business -type activities amounted to $2,507,516,295, net of accumulated depreciation. This investment in capital assets, both purchased and donated, includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year, net of depreciation, decreased by $35,344,985 when compared to the previous year. There was a decrease in the governmental activities net capital assets of $31,389,214, or 1.9 %. The proprietary fund capital assets decreased by $3,955,771, or .5% as in both the governmental and business -type activities, amounts depreciated exceeded amounts capitalized. The major factors behind these changes are as follows: The business -type activities capitalized $26,681,874 of work in process during fiscal year 2011 including $6,925,197 for North County Water Reclamation Facility Upgrades, $3,815,051 for the Marco Airport Taxiway, $3,631,693 for South Reverse Osmosis Wellfield construction, $2,034,893 for North County Regional Water Treatment Plant Water Quality Improvements and $1,724,337 for the North Naples Recycling Center. The remaining $8,550,703 related to $6,808,413 in other County Water and Sewer projects, $1,155,947 in other Airport projects, $373,954 in other Solid Waste projects and $212,389 in Mass Transit. Capitalization of construction in progress of $22,459,395 for governmental activity related costs including $12,210,474 for Oil Well Road construction, $2,184,025 for Lely Area stormwater improvements and $1,591,409 for Gateway Triangle stormwater improvements. The remaining 10 14B 7 $6,473,487 related to $3,157,021 in other transportation projects, $2,082,072 in parks and recreation projects, and $1,234,394 in other capital projects. ■ Purchases of land and non - depreciable assets were $4,764,182 for fiscal year 2011, compared to $7,858,168 for fiscal year 2010. Additional information regarding Collier County's capital assets can be found in Note 5 beginning on page 48 of this report. Debt Administration At September 30, 2011, Collier County had total bonded debt, notes and loans, net of premiums, discounts and deferred losses of $690,962,471, a decrease of $49,462,555 from the previous year. The following table illustrates the balances of all outstanding long -term debt for the fiscal years ended September 30, 2011 and 2010: Outstanding Debt Limited General Obligation Bonds, net Revenue Bonds, net State Revolving Fund Loans Miscellaneous Notes Total 2011 2010 $ 14,683,976 $ 29,854,422 559, 847, 386 584, 371, 983 105, 775, 919 114, 640, 946 10, 655,190 11, 557, 675 $690,962,471 $ 740,425,026 During fiscal year 2011 Collier County prepaid all of the outstanding Conservation Collier Series 2008 Limited General Obligation Bonds in the amount of $6,919,328, plus a 3% premium. On November 30, 2010 Collier County issued the Series 20108 Special Obligation Refunding Revenue Bonds in the par amount of $24,620,000. These bonds were issued for the purpose of advance refunding all of the County's outstanding Capital Improvement Revenue Bonds, Series 2002. The refinancing of the Series 2002 Bonds, and their attendant restrictive covenants, caused the required cash reserve surety replacement relating to the Series 2002, 2003 and 2005 bonds to decrease from $19,570,777 to $15,717,300, or a $3,853,477 release of internally borrowed funds. On January 9, 2012 Collier County issued the Series 2011 Special Obligation Refunding Revenue Bonds in the par amount of $92,295,000. These bonds were issued for the purpose of advance refunding portions of the County's outstanding Capital Improvement Revenue Refunding Bonds, Series 2003 and 2005. The refinancing of the Series 2003 and 2005 Bonds, and their attendant restrictive covenants, caused the required cash reserve surety replacement relating to the 2003 and 2005 bonds to further decrease from $15,717,300 to $10,401,506, or a $5,315,794 release of internally borrowed funds. The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County's long -term debt can be found in Note 6 beginning on page 49 of this report. 11 14B 7 General Fund Budgetary Highlights During the current fiscal year, the Board of County Commissioners approved a $3,642,735 increase in appropriations between the original ctual results are listed and below: Significant budgetary variances between the final amended budget ■ $1,464,686 increase in Natural Resources due to re- budgeting of lapsed appropriations from the previous fiscal year. • $1,478,000 increase in the Sheriffs agency related to special detail duties. ■ $792,925 decrease in the Tax Collector's agency to reduce budget to actual expenditures. ■ $460,400 increase in the Clerk's agency for internal audit and data processing equipment. ■ $400,250 increase in Transfers Out to other funds for flood plain analysis. ■ $392,203 increase in Other General Administration due to re- budgeting of lapsed appropriations from the previous fiscal year. Operations personal services to revised revenue ■ $267,500 decrease in Beach /Water Park forecasts. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2011. Tax revenues were under budget by $10,075,220 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4% to 1 %, depending on the date of payment. General Fund general government expenditures were under budget primarily due to $1,019,469 in unspent budget related goods and services contracted for in 2011 that ing in all had not been received as of September tore Owere a comb ned $1,875,990 less reduce than anticipated for departments. Sheriffs public safety expend fiscal year 2011. Economic Factors and Year 2012 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2012 budget: • A 5.1% average reduction in countywide taxable property values. • Forecast ad valorem collections at 95.6% of budget. • Expected increases in sales tax and state shared revenues of 6.3 %and 5.0 %, respectively. • No new or expanded programs and initiatives; all existing programs to be funded at 97% of the prior year's level. • Continuation of Board Agency hiring freeze within ad valorem funded operations and exception replacement hiring within enterprise operations. • Maintain health care program contributions at 80% employer and 20% employee across all agencies (Non- Sheriff). During fiscal year 2011, the General Fund unassigned fund balance decreased by $5,246,578 to $54,458,662. As of January 24, 2012, $48,297,400 of the fiscal year 2011 unassigned fund balance has been appropriated as carryforward for fiscal year 2012, with $17,538,716 placed in reserves. 12 14B 7 Contact Information This financial report is intended to give the user a general overview of Collier County Government's finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112 -5746 Our office may also be contacted via the internet at www.collierclerk.com. 13 COLLIER COUNTY, FLORIDA 14B 7 STATEMENT OF NET ASSETS SEPTEMBER 30, 2011 The notes to the financial statements are an integral part of this statement. 14 Primary Government Governmental Business -type Component Activities Activities Total Units ASSETS Current assets: Cash, cash equivalents and investments $ 217,306,687 $ 149,152,275 $ 366,458,962 $ 309,627 Trade receivables, net 1,410,078 9,092,882 10,502,960 - Special assessments receivable - 69,200 69,200 - Interest receivable 207,590 312,451 520,041 Unbilled receivables - 5,379,173 5,379,173 Due from other governments 3,585,399 98,130 3,683,529 - Internal balances (20,180,857) 20,180,857 - Deposits 429,181 - 429,181 Inventory for resale 268,891 - 268,891 Inventory 230,724 3,928,564 4,159,288 - Prepaid costs 70,405 18,957 89,362 - Restricted assets: Cash, cash equivalents and investments 12,600;153 3,218,735 15,818,888 - Trade receivables, net 1,708,123 - 1,708,123 - Notes receivable 1,256,690 - 1,256,690 - Special assessments receivable 99,571 - 99,571 - Interest receivable 252,306 - 252,306 - Due from other governments 7,160,889 4,770,918 11,931,807 - Inventory for resale 18,048,400 18,048,400 Total current assets 244,454,230 196,222,142 440,676,372 309,627 Noncurrent assets: Restricted assets: Cash, cash equivalents and investments 216,470,427 37,340,089 253,810,516 - Notes receivable 9,442,993 - 9,442,993 - Special assessments receivable 34,503 35,680 70,183 - Notes receivable 1,719,607 828,945 2,548,552 - Deferred charges 5,048,077 1,231,912 6,279,989 - Capital assets: Land and non - depreciable capital assets 470,352,899 89,683,274 560,036,173 - Depreciable capital assets, net 1,149,489,630 797,990,492 1,947,480,122 Total noncurrent assets 1,852,558,136 927,110,392 2,779,668,528 Total assets 2,097,012,366 1,123,332,534 3,220,344,900 309,627 The notes to the financial statements are an integral part of this statement. 14 LIABILITIES Current liabilities: Accounts payable Wages payable Retainage payable Due to other governments Due to individuals Self- insurance claims payable Compensated absences Capital lease obligations Unearned revenue Interest payable Bonds and loans payable Liabilities payable from restricted assets: Accounts payable Wages payable Retainage payable Refundable deposits Notes payable Due to other governments Due to individuals Unearned revenue Bonds and loans payable Total current liabilities Noncurrent liabilities: Self- insurance claims payable Compensated absences Capital lease obligations Landfill post - closure liability Net OPEB obligation Bonds and loans payable, net Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Growth related capital expansion Transportation capital projects Tourist development Conservation Collier Community redevelopment Grants Debt service Other Renewal and replacement Unrestricted Total net assets 14B 7 523,834,709 263,614,411 787,449,120 1,172,121,030 643,776,924 1,815,897,954 - 89,702,510 Primary Government 113,760,194 - Governmental Business -type Component Activities Activities Total Units 20,884,680 - $ 13,763,008 $ 9,945,294 $ 23,708,302 $ 4,290,852 654,120 4,944,972 - 215,537 904,392 1,119,929 - 3,958,710 57,105 4,015,815 311,918 403,219 715,137 - 5,714,175 - 5,714,175 - 11,122,459 1,778,047 12,900,506 93,005 212,246 305,251 268,931 - 268,931 - 7,856,393 2,471,770 10,328,163 - 27,083,449 9,787,165 36,870,614 - 6,472,525 76,631 6,549,156 - 110,095 - 110,095 - 1,317,943 356,620 1,674,563 - 1,002,515 232,082. 1,234,597 - - 69,190 69,190 - 1,260 - 1,260 - 1,656 - 1,656 - 3,694,159 252,334 3,946,493 - 2,500,866 2,500,866 87,278,590 29,701,081 116,979,671 1,928,324 - 1,928,324 - 12,504,006 762,021 13,266,027 - 176,054 174,565 350,619 - - 1,823,934 1,823,934 - 1,578,744 - 1,578,744 - 420,368,991 231,152,810 651,521,801 - 436.556.119 233,913,330 670,469.449 - 523,834,709 263,614,411 787,449,120 1,172,121,030 643,776,924 1,815,897,954 - 89,702,510 24,057,684 113,760,194 - 52,248,847 - 52,248,847 - 39,262,323 - 39,262,323 - 20,884,680 - 20,884,680 - 16,095,025 - 16,095,025 - 13,419,575 - 13,419,575 - 5,529,286 13,644,754 19,174,040 - 16,833,876 - 16,833,876 - - 300,000 300,000 - 147,080,505 177,938,761 325,019,266 309,627 $1,573,177,657 $ 859,718,123 $ 2,432,895,780 $ 309,627 15 COLLIER COUNTY, FLORIDA % STATEMENT OF ACTIVITIES / FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and FUNCTIONS /PROGRAMS Expenses Services Contributions Contributions Primary Government: Governmental Activities: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Interest and fiscal charges Total governmental activities Business -type Activities: Water and Sewer Solid Waste Airport Authority Mass Transit Emergency Medical Services Total business -type activities Total primary government Component Units: Industrial Development Authority Health Facilities Authority Housing Finance Authority Educational Facilities Authority Total component units $ 103,044,550 $ 33,919,227 $ 2,280,592 $ 3,333,551 173,286,139 15,553,313 4,803,976 1,040,044 18,344,396 1,125,113 861,815 1,804,427 81,383,489 715,011 4,102,137 9,754,735 7,786,770 662,032 4,123,288 - 13,859,403 508,615 3,039,850 - 44,205,089 9,093,424 291,361 3,414,359 19,796,828 Miscellaneous Transfers, net 461,706,664 61,576,735 19,503,019 19,347,116 104,332,449 105,858,391 20,072 9,637,765 27,999,926 33,769,040 - 1,650 4,458,059 2,938,147 - 4,432,549 10,186,913 1,290,335 4,322,765 234,616 22,657,178 8,979,435 35,026 169,634,525 152,835,348 4,377,863 14,306,580 $ 631,341,189 _$ 214,412,083 $ 23,880,882 $ 33,653,696 $ 107,089 $ 102,375 $ $ - 359,906 213,010 - 680 2,000 - - 189 336 $ 467,864 $ 317,721 $ - $ General revenues: Property taxes Gas taxes Sales taxes Tourist taxes Communications services tax State revenue sharing Othertaxes Interest income Miscellaneous Transfers, net Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending The notes to the financial statements are an integral part of this statement. 16 Net (Expense) Revenue and Changes in Net Assets 14B 7" Primary Government Governmental Business -type Component Activities Activities Total Units $ (63,511,180) $ - $ (63,511,180) $ (151,888,806) - (151,888,806) (14,553,041) - (14,553,041) (66,811,606) - (66,811,606) - (3,001,450) - (3,001,450) - (10,310,938) - (10,310,938) - (31,405,945) - (31,405,945) - (19,796,828) - (19,796,828) (361,279,794) - (361,279,794) - - 11,183,779 11,183,779 - 5,770,764 5,770,764 - 2,912,637 2,912,637 - (4,339,197) (4,339,197) (13,642,717) (13,642,717) 1,885,266 1,885,266 (361,279,794) 1,885,266 (359,394,528) $ (4,714) (146,896) 1,320 147 (150,143) 261,630,398 - 261,630,398 - 18,311,500 - 18,311,500 - 28,364,419 - 28,364,419 - 13,883,740 - 13,883,740 - 5,589,726 - 5,589,726 - 8,309,841 - 8,309,841 - 4,565,112 - 4,565,112 - 3,888,065 1,608,386 5,496,451 338 11,497,626 96,262 11,593,888 - (13,117,462) 13,117,462 - - 342,922,965 14,822,110 357,745,075 338 (18,356,829) 16,707,376 (1,649,453) (149,805) 1,591,534,486 843,010,747 2,434,545,233 459,432 $ 1,573,177,657 $ 859,718,123 $ 2,432,895,780 _L_309,627 17 ASSETS Cash, cash equivalents and investments Receivables: Interest Trade, net Notes Special assessments Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs Totalassets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Due to individuals Deferred revenue Refundable deposits Retainage payable Advances from other funds Total liabilities COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2011 14B 7 Government Other Total General Facilities Governmental Governmental Fund Impact Fee Funds Funds $66,656,597 $ 5,975,735 $330,804,948 $403,437,280 63,208 6,756 353,251 423,215 445,103 446 2,218,939 2,664,488 1,719,607 303,651 10,396,032 12,419,290 - - 134,074 134,074 2,810,686 - 1,912,468 4,723,154 2,264,847 21,235 7,901,428 10,187,510 4,628 - - 4,628 - - 18,317,291 18,317,291 132,251 - - 132,251 11,647,325 - 40,017,500 51,664,825 20,995 - 20,995 $85,765,247 $ 6,307,823 $412,055,931 $504,129,001 $ 8,653,461 $ 16,809 $ 10,378,706 $ 19,048,976 3,583,249 - 717,107 4,300,356 1,569,729 - 2,212,746 3,782,475 3,066,856 - 891,156 3,958,012 310,087 - 3,487 313,574 278,140 303,651 14,140,521 14,722,312 925,748 - 76,767 1,002,515 - - 1,533,480 1,533,480 (16,289,984) 22,277,347 48,523,127 70,800,474 18,387,270 22,597,807 78,477,097 119,462,174 Fund balances (deficit): Nonspendabie 11,805,199 - - 11,805,199 Restricted - - 229,545,519 229,545,519 Committed - - 48,445,097 48,445,097 Assigned 1,114,116 - 79,555,933 80,670,049 Unassigned 54,458,662 (16,289,984) (23,967,715) 14,200,963 Total fund balances (deficit) 67,377,977 (16,289,984) 333,578,834 384,666,827 Total liabilities and fund balances (deficit) $85,765,247 $ 6,307,823 $412,055,931 $504,129,001 The notes to the financial statements are an integral part of this statement 18 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS SEPTEMBER 30, 2011 Differences in amounts reported for governmental activities in the statement of net assets on pages 14 -15: Fund balances - total governmental funds Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of. Land and other non - depreciable assets Construction in progress Depreciable assets, net of $558,931,908 in accumulated depreciation Certain long -term assets are not financial resources and therefore are not reported in the governmental funds. Certain revenues will be collected after year -end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred revenue in the funds. Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long -term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net assets. Balances at September 30, 2011 are: Accrued interest on bonds Bonds and notes payable Capital lease obligations Compensated absences Unamortized deferred loss Unamortized premium Unamortized discount Internal service funds are used by the County to charge self - insurance, fleet management and Information technology services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Internal service fund net assets are: Total net assets - governmental activities The notes to the financial statements are an integral part of this statement. 19 14B 7 $ 384,666,827 $ 384,467,144 85,885,755 1,128, 235,131 1,598,588,030 $ (7,856,393) (433,233,544) (269,059) (23,105,021) 1,826,733 (16,395,329) 349,700 5,048,077 10,759,222 (478,682,913) 52,798,414 $ 1,573,177,657 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 14B The notes to the financial statements are an integral part of this statement. 20 7 Government Other Total General Facilities Governmental Governmental Fund Impact Fee Funds Funds Revenues: Taxes $209,688,480 $ - $ 86,951,199 $296,639,679 Licenses, permits and impact fees 295,650 896,578 22,503,037 23,695,265 Intergovernmental 39,332,399 - 35,120,450 74,452,849 Charges for services 17,991,298 - 9,863,609 27,854,907 Fines and forfeitures 1,185,715 - 2,696,361 3,882,076 Interest income 886,889 51,831 2,663,379 3,602,099 Special assessments - - 2,725,498 2,725,498 Miscellaneous 1,488,347 21,085 9,055,245 10,564,677 Total revenues 270,868,778 969,494 171,578,778 443,417,050 Expenditures: Current: General government 55,836,207 413,819 23,249,534 79,499,560 Public safety 138,373,308 83,905 22,433,006 160,890,219 Physical environment 654,367 - 13,596,776 14,251,143 Transportation - - 50,741,172 50,741,172 Economic environment 810,579 - 7,030,666 7,841,245 Human services 10,273,973 - 2,800,836 13,074,809 Culture and recreation 15,737,433 - 20,007,151 35,744,584 Debt service: Principal - - 36,492,892 36,492,892 Interest - 27,926 20,904,619 20,932,545 Fiscal charges - - 434,312 434,312 Capital outlay 3,785,668 59,837 34,880,355 38,725,860 Total expenditures 225,471,535 585,487 232,571,319 458,628,341 Excess (deficiency) of revenues over(under)expenditures 45,397,243 384,007 (60,992,541) (15,211,291) Other financing sources (uses): Bonds issued - - 24,620,000 24,620,000 Premiums on bonds issued - - 2,050,315 2,050,315 Payment to refunding bond escrow - - (26,592,659) (26,592,659) Sale of capital assets 65,011 - 5,250 70,261 Insurance proceeds 15,989 - 368,099 384,088 Transfers in 9,596,990 - 97,569,898 107,166,888 Transfers out (59,043,867) (4,176,797) (54,816,538) (118,037,202) Total other financing sources (uses) (49,365,877) (4,176,797) 43,204,365 (10,338,309) Net change in fund balances (3,968,634) (3,792,790) (17,788,176) (25,549,600) Fund balances (deficit) at beginning of year 71,346,611 (12,497,194) 351,367,010 410,216,427 Fund balances (deficit) at end of year $ 67,377,977 $ (16,289,984) $ 333,578,834 $ 384,666,827 The notes to the financial statements are an integral part of this statement. 20 7 COLLIER COUNTY, FLORIDA 14 B RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Differences in amounts reported for governmental activities in the statement of activities on pages 16 -17: Net change in fund balances - total governmental funds $ (25,549,600) 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. Capital outlay $ 38,725,860 Depreciation expense (67,697,214) (28,971,354) Donations of capital assets are not financial resources to governmental funds, but receiving donated assets Increases net assets in the statement of net assets. 2,491,525 Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. (1,446,753) In the statement of activities, the loss on the sale of capital assets is reported. However, in the governmental funds the proceeds from the sale of capital assets increase financial resources. The change in net assets differs from the change in fund balance by the net book value of assets disposed. (1,754,888) Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. (435,802) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long -term liabilities in the statement of net assets. (24,620,000) Repayment of principal on long -term debt is an expenditure in governmental funds, but a reduction of long -term liabilities in the statement of net assets. Bond and loan principal payments $ 36,322,855 Premium on bonds issued (2,050,315) Payments to refunding escrow agent 26,592,659 Payments on capital lease obligations 170,037 61,035,236 Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Increase in compensated absences $ (1,706,675) Accrued interest on bonds 495,413 Amortization of deferred charges (368,756) Amortization of deferred loss (267,471) Amortization of premium 1,346,977 Amortization of discount (17,934) (518,446) Certain amounts reported in the statement of activities as deferred are reported as expenditures in the governmental funds. 381,800 The net revenues of internal service funds are reported with governmental activities. 1,031,453 Change in net assets - governmental activities $ (18,356,829) The notes to the financial statements are an integral part of this statement. 21 7 COLLIER COUNTY, FLORIDA 4 B 7 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Expenditures: Variance with Current: Final Budget General government Original Final Favorable Board of County Commissioners personal services Budget Budget Actual (Unfavorable) Revenues: 96,500 96,500 73,480 23,020 Taxes $ 219,763,700 $ 219,763,700 $ 209,688,480 $ (10,075,220) Licenses, permits and impact fees 183,500 183,500 295,650 112,150 Intergovernmental 33,913,200 33,913,200 39,332,399 5,419,199 Charges for services 18,587,568 19,704,255 17,991,298 (1,712,957) Fines and forfeitures 1,184,000 1,184,000 1,185,715 1,715 Interest income 857,800 917,800 889,463 (28,337) Miscellaneous 569,800 482,321 1,488,347 1,006,026 Total revenues 275,059,568 276,148,776 270,871,352 (5,277,424) Expenditures: Current: General government Board of County Commissioners personal services 1,004,500 1,004,500 975,422 29,078 Board of County Commissioners operating 96,500 96,500 73,480 23,020 County manager administrative personal services 759,200 759,200 690,896 68,304 County manager administrative operating 54,500 54,500 34,834 19,666 Budget and management personal services 744,600 744,600 683,924 60,676 Budget and management operating 114,700 114,700 64,622 50,078 Administrative services personal services 1,841,900 1,841,900 1,723,500 118,400 Administrative services operating 138,500 139,618 126,651 12,967 Administrative services capital outlay 7,500 7,500 - 7,500 Human resources administration personal services 1,275,500 1,275,500 1,190,898 84,602 Human resources administration operating 345,500 345,500 240,549 104,951 Clerk of the Circuit Court personal services 5,604,900 5,296,500 5,247,432 49,068 Clerk of the Circuit Court operating 2,087,900 2,119,800 2,076,753 43,047 Clerk of the Circuit Court capital outlay 116,600 885,400 882,138 3,262 Property Appraiser personal services 5,175,379 4,975,425 4,873,749 101,676 Property Appraiser operating 1,435,635 1,569,018 1,625,187 (56,169) Property Appraiser capital outlay 50,000 133,171 133,171 Tax Collector personal services 9,592,600 9,095,954 9,095,954 - Tax Collector operating 3,054,576 2,758,379 2,758,379 - Tax Collector capital outlay 38,371 38,289 38,289 - County attorney personal services 2,507,500 2,507,500 2,387,601 119,899 County attorney operating 423,200 566,303 226,057 340,246 County attorney capital - 10,500 10,269 231 Natural resource planning operating 175,000 1,639,686 1,370,464 269,222 Circuit court costs operating 34,700 34,700 14,404 20,296 Courthouse security operating 1,359,200 1,377,352 1,331,917 45,435 Courthouse security capital outlay 20,000 20,000 19,230 770 County court cost operating 22,800 22,800 5,234 17,566 State Attorney operating 280,400 280,400 252,224 28,176 Public Defender operating 179,300 179,300 176,776 2,524 Other general administrative personal services 331,300 331,300 229,615 101,685 Other general administrative operating 677,100 1,069,303 412,998 656,305 Facilities management personal services 3,234,100 3,397,761 3,371,116 26,645 Facilities management operating 7,426,300 7,420,222 7,347,848 72,374 Facilities management capital outlay 91,000 140,000 143,094 (3,094) 22 COLLIER COUNTY, FLORIDA 4 B 7 GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Public safety 596,600 528,986 67,614 Variance with Sheriff personal services 111,371,000 112,849,000 110,955,748 Final Budget Sheriff operating Original Final 23,085,864 Favorable Sheriff capital outlay Budget Budget Actual (Unfavorable) Sheriff personal services 3,135,000 3,135,000 3,229,824 (94,824) Sheriff operating 127,700 127,700 194,486 (66,786) Supervisor of Elections personal services 1,959,800 1,959,800 1,946,355 13,445 Supervisor of Elections operating 1,149,700 1,124,550 990,874 133,676 Supervisor of Elections capital outlay 12,400 37,550 36,566 984 Real property management personal services 816,900 827,300 819,606 7,694 Real property management operating 52,400 50,150 46,578 3,572 Total general government 57,554,661 59,515,131 57,098,964 21416,167 Public safety 596,600 528,986 67,614 147,200 Sheriff personal services 111,371,000 112,849,000 110,955,748 1,893,252 Sheriff operating 25,419,300 25,487,300 23,085,864 2,401,436 Sheriff capital outlay - . - 2,418,698 (2,418,698) Emergency management administration personal services 878,100 845,900 801,640 44,260 Emergency management administration operating 625,200 655,825 615,221 40,604 Emergency management administration capital - - 7,965 (7,965) Helicopter operations personal services 620,300 717,500 714,656 2,844 Helicopter operations operating 837,100 773,956 699,222 74,734 Helicopter operations capital - 2,176 2,176 - Intersection safety personal services - 50,000 28,024 21,976 Intersection safety operating 700,000 650,000 413,528 236,472 Medical examiner services operating 1,063,200 11063,200 11059,405 3,795 Total public safety 141,514,200 143,094,857 140,802,147 2,292,710 Physical environment Conservation and resource management personal service Conservation and resource management operating Conservation and resource management capital Immokalee cemetery operating Total physical environment Economic environment Veterans services personal services Veterans services operating Housing and urban improvement operating Total economic environment Human services Health Care Responsibility Act operating Domestic animal services personal services Domestic animal services operating Domestic animal services capital outlay Health department operating Mental health operating Client assistance personal services Client assistance operating Public services division office personal services Public services division office operating Total human services 570,900 596,600 528,986 67,614 147,200 143,900 122,970 20,930 - 3,300 3,300 - 4,600 2,175 2,411 (236) 722,700 745,975 657,667 88,308 247,200 247,200 235,009 12,191 68,500 57,148 27,503 29,645 787,500 787,500 548,067 239,433 1,103,200 1,091,848 810,579 281,269 50,000 50,000 - 50,000 2,011,300 2,011,300 1,876,384 134,916 714,800 699,572 638,294 61,278 5,400 22,400 20,484 1,916 1,666,400 1,666,400 1,854,902 (188,502) 899,300 899,300 1,056,104 (156,804) 451,300 463,300 450,501 12,799 3,732,800 3,738,152 4,116,736 (378,584) 329,700 323,700 265,270 58,430 20,900 20,900 15,782 5,118 9,881,900 9,895,024 10,294,457 (399,433) 23 COLLIER COUNTY, FLORIDA GENERAL FUND 14B 7 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Culture and recreation Library administration personal services Library administration operating Beach and water park operations personal services Beach and water park operations operating Beach and water park operations capital outlay Total culture and recreation Total expenditures Excess of revenues over expenditures Other financing sources (uses): Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Advances budgeted as transfers Net change in fund balance, GAAP basis Variance with Final Budget Original Final Favorable Budget Budget Actual (Unfavorable) 5,230,800 5,231,400 4,944,367 287,033 1,840,100 1,841,537 1,537,513 304,024 4,805,200 4,537,700 4,372,421 165,279 5,232,000 5,107,567 4,883,132 224,435 56,000 71,285 70,288 997 17,164,100 16,789,489 15, 807, 721 981,768 227,940,761 231,132,324 225,471,535 5,660,789 47,118,807 45,016,452 45,399,817 383,365 275,000 275,000 65,011 (209,989) - 2,796 15,989 13,193 5,152,300 6,209,598 9,596,990 3,387,392 (69,099,407) (69,550,579) (61,373,867) 8,176,712 (63,672,107) (63,063,185) (51,695,877) 11,367,308 (16,553,300) (18,046,733) (6,296,060) 11,750,673 44,818,500 47,039,399 47,039,399 $ 28,265,200 $ 28,992,666 $ 40,743,339 $ 11,750,673 The notes to the financial statements are an integral part of this statement. 24 $ (6,296,060) (2,574) 2,330,000 $___(I 968,634) COLLIER COUNTY, FLORIDA 14 B STATEMENT OF NET ASSETS PROPRIETARY FUNDS SEPTEMBER 30, 2011 Noncurrent assets: Restricted assets: Cash, cash equivalents and investments 37,340,089 Business -type Activities Enterprise Funds - Governmental - County Activities - Water Solid Waste Other - Internal Service - and Sewer Disposal Funds Total Funds ASSETS Notes 828,945 - - 828,945 Current assets: Deferred charges 1,231,912 - - 1,231,912 Cash, cash equivalents and investments $ 123,644,909 $ 22,589,904 $ 2,917,462 $ 149,152,275 $ 42,939,987 Receivables: Land and nondepreciable capital assets 72,438,775 3,503,524 13,740,975 89,683,274 Trade, net 5,182,824 730,116 3,179,942 9,092,882 453,713 Special assessments 69,200 - - 69,200 - Interest 191,879 115,090 5,482 312,451 36,681 Unbiiled revenue 5,193,114 - 186,059 5,379,173 - Due from other funds 16,918 77,512 12,058 106,488 780,531 Due from other governments 97,237 - 893 98,130 52,506 Deposits - - - - 424,553 Inventory 3,777,781 - 150,783 3,928,564 604,745 Prepaid costs 18,957 - - 18,957 49,410 Restricted assets: Cash, cash equivalents and investments 2,665,409 255,205 298,121 3,218,735 - Due from other governments - - 4,770,918 4,770,918 - Total current assets 140,858,228 23,767,827 11,521,718 176,147,773 45,342,126 Noncurrent assets: Restricted assets: Cash, cash equivalents and investments 37,340,089 - 37,340,089 - Receivables: Special assessments 35,680 - - 35,680 - Advances to other funds 15,717,302 3,418,347 - 19,135,649 - Notes 828,945 - - 828,945 - Deferred charges 1,231,912 - - 1,231,912 - Capital assets: Land and nondepreciable capital assets 72,438,775 3,503,524 13,740,975 89,683,274 - Depreciable capital assets, net 757,078,648 17,112,536 23,799,308 797,990,492 21,254,499 Total noncurrent assets 884,671,351 24,034,407 37,540,283 946,246,041 21,254,499 Total assets 1,025,529,579 47,802,234 49,062,001 1,122,393,814 66,596,625 (Continued) 25 LIABILITIES Current liabilities: Accounts payable Wages payable Retainage payable Due to other funds Due to other governments Due to individuals Self- insurance claims payable Compensated absences Capital lease obligations Interest payable Bonds and loans payable Liabilities payable from restricted assets: Accounts payable Retainage payable Refundable deposits Unearned revenue Notes payable Bonds and loans payable Total current liabilities Noncurrent liabilities: Self - insurance claims payable Compensated absences Capital lease obligations Net OPEB obligation Landfill post - closure liability Bonds and loans payable, net Total noncurrent liabilities Total liabilities NETASSETS Invested in capital assets, net of related debt Restricted for growth related capital expansion Restricted for renewal and replacement Restricted for debt service Unrestricted Total net assets COLLIER COUNTY, FLORIDA STATEMENT OF NET ASSETS PROPRIETARY FUNDS SEPTEMBER 30, 2011 14B 71 Business -type Activities Enterprise Funds Governmental Activities - County Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds $ 5,127,228 $ 1,924,792 $ 2,893,274 $ 9,945,294 $ 1,188,515 348,459 25,259 280,402 654,120 100,591 904,392 - - 904,392 - 360 153 941,639 942,152 885,546 554 508 56,043 57,105 - 25,903 - 377,316 403,219 - - - - - 5,714,175 1,157,176 88,895 531,976 1,778,047 365,011 - - 212,246 212,246 - 2,471,770 - - 2,471,770 - 9,787,165 - - 9,787,165 - 10,067 - 66,564 76,631 - 106,714 249,906 356,620 - 37,002 176,849 18,231 232,082. - - 78,356 173,978 252,334 - 69,190 - - 69,190 - 2,500,866 - 2,500,866 22,440,132 21401,526 51801,575 30,643,233 8,253,838 - - - - 1,928,324 495,933 38,098 227,990 762,021 156,433 - - 174,565 174,565 - - - - - 1,578,744 - 1,823,934 - 1,823,934 - 231,152,810 - 231,152,810 231,648,743 1,862,032 402,555 233,913,330 3,663,501 254,088,875 4,263,558 6,204,130 264,556,563 11,917,339 586,007,392 20,616,060 37,153,472 643,776,924 21,254,499 24,057,684 - - 24,057,684 - 300,000 - - 300,000 13,644,754 - - 13,644,754 - 147,430,874 22,922,616 5,704,399 176,057,889 33,424,787 $ 771,440,704 $ 43,538,676 $ 42,857,871 857,837,251 $ 54,679,286 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds Net assets of Business -type Activities The notes to the financial statements are an integral part of this statement. 26 1,880,872 $ 859,718,123 COLLIER COUNTY, FLORIDA 14 B 7 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Operating revenues: Charges for services Miscellaneous Total operating revenues Operating expenses: Personal services Operating Depreciation and amortization Total operating expenses Operating income (loss) Non - operating revenues (expenses): Operating grants and contributions Interest income Insurance reimbursement Interest expense Loss on disposal of capital assets Total non - operating revenues (expenses) Income (loss) before contributions and transfers Capital grants and contributions Transfers in Transfers out Change in net assets Net assets - beginning Net assets - ending Business -type Activities Enterprise Funds Governmental County Activities - Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds $ 104,782,230 $ 33,422,859 $ 13,542,493 $ 151,747,582 $ 72,572,327 670,264 346,181 71,321 1,087,766 112,859 105,452,494 3317691040 13,613,814 1521835,348 72,685,186 23,672,927 1,711,265 19,612,937 44,997,129 6,420,024 36,433,622 25,411,280 14,951,818 76,796,720 64,056,436 34,145,591 811,754 218141275 37,771,620 2,015,239 94,2524140 27,934,299 37,379,030 159,565,469 72,491,699 11,200,354 5,8341741 (23,765,216) (6,730,121) 193,487 20,072 - 4,357,791 4,377,863 - 1,330,149 231,747 46,490 1,608,386 285,966 27,228 572 68,462 96,262 580,613 (8,845,845) - (23,257) (8,869,102) - (385,603) (26,191) (11,188)_ (422,982) (5,190) (7,853,999) 206,128 4,438,298 (3,209,573) 861,389 3,346,355 6,040,869 (19,326,918) (9,939,694) 1,054,876 9,873,756 5,100 5,824,872 15,703,728 49,605 2,022,272 42,027 16,275,016 18,339,315 - (4,071,929) (2,461,872) (85,200) (6,619,001) (850,000) 11,170,454 3,626,124 2,687,770 17,484,348 254,481 760,270,250 39,912,552 40,170,101 54,424,805 $ 771,440,704 $ 43,538,676 $ 42,857,871 $ 54,679,286 Consolidation adjustment for internal service fund activities related to enterprise funds Change in net assets of Business -type Activities The notes to the financial statements are an integral part of this statement. 27 (776,972) $ 16,707,376 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS 1 J' R PROPRIETARY FUNDS 1 ``F u FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Cash flows from operating activities: Cash received for services Cash received from other funds for services Cash received from employees for services Cash received from other governments for services Cash received from refundable deposits Cash received from retirees for services Cash payments on behalf of retirees Cash payments for goods and services Cash payments to employees Cash payments for interfund services Cash payments on refundable deposits Net cash provided by (used for) operating activities Cash flows from non - capital financing activities: Cash received from operating grants Cash transfers from other funds Cash transfers to other funds Net cash provided by (used for) non - capital financing activities Cash flows from capital and related financing activities: System development charges Special assessment collections Receipts from insurance reimbursements Proceeds from disposal of capital assets Proceeds from capital grants Payments for capital acquisitions Principal payments on state revolving loans Principal payments on bonds Principal payments on leases Interest and fiscal agent fees paid Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Net increase(decrease)In cash, cash equivalents and Investments Business -type Activities Enterprise Funds Governmental County Activities - Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds $105,668,701 $ 33,555,440 $ 14,376,983 $153,601,124 $ - - - - - 67,144,521 - - - - 4,627,305 531 - - 531 418,998 43,000 820,471 2,660,428 863,471 - - - (3,574,174) - 1,223,462 (6,881,681) - - - (1,067,028) (30,602,014) (24,458,987) (15,098,305) (70,159,306) (64,324,109) (24,388,771) (1,774,339) (16,225,225) (42,388,335) (6,616,984) (6,519,339) (830,129) (4,089,492) (11,438,960) (402,281) (44,000) (820,471) (72) _ (864,543) 44,158,108 6,491,985 (21,036,111) 29,613,982 1,003,884 26,442 - 2,852,512 2,878,954 - 4,855,670 6,845,529 21,544,316 33,245,515 - (4,071,929) (7,679,266) (4,641,096) (16,392,291) 810,183 (833,737) 19,755,732 19,732,178 - 7,653,433 - 7,653,433 - 520,826 - 520,826 - 27,228 572 66,467 94,267 538,710 80,605 7,770 14,633 103,008 4,356 211,500 31,398 2,660,428 2,903,326 - (21,034,611) (2,482,894) (3,574,174) (27,091,679) (267,436) (6,881,681) - (6,881,681) - (4,969,157) - (4,969,157) - - - (249,535) (249,535) - (9,746,786) (23,257) (9,770,043) (34,138,643) (2,443,154) (1,105,438) (37,687,235) 275,630 1,352,732 233,751 51,286 1,637,769 292,047 1,352,732 233,751 51,286 1,637,769 292,047 12,182,380 3,448,845 (2,334,531) 13,296,694 1,571,561 Cash, cash equivalents and investments, October 1, 2010 151,468,027 19,396,264 5,550,114 176,414,405 41,368,426 Cash, cash equivalents and investments, September 30, 2011 $163,650,407 $ 22,845,109 $ 3,215,583_ $189,711,099 $ 42,939,987 Current cash, cash equivalents and investments $123,644,909 $ 22,589,904 $ 2,917,462 $149,152,275 $ 42,939,987 Current cash, cash equivalents and investments - restricted 2,665,409 255,205 298,121 3,218,735 - Noncurrent cash, cash equivalents and investments - restricted 37,340,089 37,340,089 Cash, cash equivalents and investments, September 30, 2011 $163,650,407 $ 22,845,109 $ 3,215,583 $189,711,099 $ 42,939,987 (Continued) 28 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (CONTINUED) RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense Amortization of bond issuance costs Amortization of utility acquisition adjustment Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Deposits Prepaid costs Inventory Prepaid costs Accounts payable Wages payable Due to other funds Due to other governments Due to individuals Compensated absences Refundable deposits Unearned revenue Self- insurance claims payable Net OPEB obligation Landfill post closure liability Total adjustments Net cash provided by (used for) operating activities Non -cash Investing, capital and financing activities: Change in fair value of investments Contributed capital assets Developer contributions 146 7 Business -type Activities Enterprise Funds Governmental County Activities - Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds $ 11,200,354 $ 5,834,741 $ (23,765,216) $ (6,730,121) $ 193,487 33,546,878 811,754 2,814,275 37,172,907 2,015,239 538,258 - - 538,258 - 60,455 - - 60,455 244,789 (116,333) 795,572 924,028 (266,130) 26,032 (26,740) (12,057) (12,765) 89,466 (59,582) - 5,831 (53,751) (51,455) - 93,714 (9,877) - - (9,877) - (348,408) - (6,618) (355,026) (36,677) _ _ _ - (26,368) (342,231) 159,658 (138,269) (320,842) (33,375) (703,076) (51,582) (610,449) (1,365,107) (196,170) (205) (31,523) 2,050 (29,678) 30,791 531 99 (23,142) (22,512) - 17,958 - (452) 17,506 - (12,768) (11,492) (91,331) (115,591) (790) (1,000) - (72) (1,072) - - - (6,233) (6,233) (966,501) 158,653 (76,597) - (76,597) - 32,957,754 657,244 2,729,105 36,344,103 810,397 $ 44,158,108 $ 6,491,985 $ (21,036,111) $ 29,613,982 $ 1,003,884 $ (9,027) $ (1,367) $ (284) $ (10,678) $ (49,041) 235,991 8,144 1,392,323 1,636,458 49,606 2,011,385 - - 2,011,385 - The notes to the financial statements are an integral part of this statement. 29 COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES } ^ B AGENCY FUNDS 4 SEPTEMBER 30, 2011 The notes to the financial statements are an integral part of this statement. 30 Agency Funds ASSETS Cash, cash equivalents and investments $ 28,405,359 Receivables: Interest 4,064 Other 23,841 Total assets $ 28,433,264 LIABILITIES Due to other governments $ 7,621,130 Due to individuals 570,763 Refundable deposits 19,871,237 Due to special assessment holders 370,134 Total liabilities $ 28,433,264 The notes to the financial statements are an integral part of this statement. 30 COLLIER COUNTY, FLORIDA 1. 4 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 INDEX NOTE PAGE NUMBER 1 Summary of Significant Accounting Policies 32 2 Cash, Cash Equivalents and Investments 42 3 Trade Receivables 45 4 Interfund Payables and Receivables 46 5 Capital Assets 48 6 Long -Term Obligations 49 7 Conduit Debt Obligations 56 8 Defeased Debt 57 9 Pension Plan Obligations 58 10 Transfers 59 11 Net Assets /Fund Balances 60 12 Risk Management 63 13 Other Postemployment Benefits 65 14 Landfill Liability 69 15 Significant Contingencies 69 16 Significant Commitments 70 17 Fund Deficits 71 18 Subsequent Events 72 31 COLLIER COUNTY, FLORIDA 14B 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES THE REPORTING ENTITY The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court, the Collier County Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board, impose its will on the organization, and the existence of a financial benefit /burden relationship or fiscal dependency. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex- officio. These entities are legally separate, however financial support has been pledged and financial or operational policies may be significantly influenced by the County. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity (GASB 14), as amended by GASB Statement No. 39, Determining Whether Certain Organizations are Component Units (GASB 39), these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District The District was established by Chapter 88 -499, as amended by Chapter 03 -353, Laws of Florida, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Goodland Water District The District was established by a Special Referendum Election authorized by Collier County Ordinance 75 -5 and Section 125.01(q), Florida Statutes. The District provides potable water service to the residents of Goodland. Collier County Community Redevelopment Agency (CRA) The CRA was established by Resolution 2000 -82 to benefit blighted areas in both the Immokalee. Redevelopment and Bayshore /Gateway Triangle Redevelopment areas. These two redevelopment areas are geographically separate and distinct. 32 COLLIER COUNTY FLORIDA 14B 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED THE REPORTING ENTITY— CONTINUED Collier County Airport Authority The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010 -10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization (MPO) The Authority was created in 1981 by Collier County Resolution 81 -222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide for short-term and long -term planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenue fund. The County's discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units' Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB 14, as amended by GASB 39, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. Collier County Housing Finance Authority The Authority was formed in 1980 by Collier County Ordinance 80 -66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Collier County Health Facilities Authority The Authority was established in 1979 by Collier County Ordinance 79 -75 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Collier County Industrial Development Authority The Authority was created in 1978 by Collier County Resolution 78 -94 to facilitate the financing of projects that promote economic growth and increase opportunities for employment in the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". 33 IAMB COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Collier County Educational Facilities Authority The Authority was created in 1999 by Collier County Resolution 99 -177 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations ". Fly' Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court. Administrative Offices Collier Water and Sewer District 3339 East Tamiami Trail, Suite #214 Naples, Florida 34112 Collier County Airport Authority 2005 Mainsail Drive, Suite #1 Naples, FL 34114 Bayshore Gateway Community Redevelopment Agency 4069 Bayshore Drive Naples, Florida 34112 Immokalee Community Redevelopment Agency 310 Alachua Street Immokalee, Florida 34142 Goodland Water District 3339 East Tamiami Trail, Suite #214 Naples, Florida 34112 Collier County Health Facilities Authority and Housing Finance Authority 5150 Tamiami Trail North, Suite 502 Naples, FL 34103 Collier County Industrial Development Authority and Educational Facilities Authority 3050 North Horseshoe Drive, Suite #120 Naples, Florida 34104 Collier County Metropolitan Planning Organization 2885 South Horseshoe Drive Naples, Florida 34104 . GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business type activities of Collier County. The government wide financial statements consist of a Statement of Net Assets and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business -type activities. As a general rule, the effect of interfund activity has been eliminated from the government wide financial statements. Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Assets reports all financial and capital resources of Collier County's governmental and business -type activities. Net assets equal assets minus liabilities, and is shown in three categories: invested in capital assets, net of related debt; restricted net assets and unrestricted net assets. The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree the particular program has been self - supporting. 34 COLLIER COUNTY, FLORIDA JL4 B 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS— CONTINUED Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County. government. The fund financial statements follow the government wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are reconciliations explaining the differences between the governmental fund presentation and the government wide presentation. BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund — the General fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County's consolidated General Fund. Government Facilities Impact Fee Fund — the Government Facilities Impact Fee fund is used to account for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition and construction of government facilities. The following are reported as major enterprise funds: County Water and Sewer Fund — the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County's unincorporated area. Solid Waste Disposal Fund — the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Funds — Special revenue funds are used to account for the accumulation of resources set aside for a specific purpose. 35 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED BASIS OF PRESENTATION — CONTINUED Debt Service Funds — Debt service funds are used to account for the accumulation of resources for the payment of principal, interest and other expenditures on long -term obligations, other than bonds and notes payable from the operations of business -type activities. Capital Proiect Funds — Capital project funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Enterprise Funds — Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds — Internal service funds are used to account for the provision of goods and services by one department to other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently operates the following Internal Service Funds: Self Insurance, Sheriffs Self Insurance, Fleet Management and Information Technology. Agency Funds — Agency funds are custodial in nature and do not report the results of operations (assets equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for individuals, private organizations or other governments. The Board of County Commissioners, Sheriff, Clerk of the Circuit Court and Tax Collector all maintain agency funds. BASIS OF ACCOUNTING AND MEASUREMENT FOCUS Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. The government wide financial statements, as well as the fund financial statements for the proprietary funds, are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized in the period in which they are earned and expenses are recognized in the period incurred. Grant revenues are recognized when eligibility requirements are met. The intent in proprietary operations is that the costs of providing goods or services to the general public be financed primarily through user charges, or where periodic determination of revenues earned, expenses incurred, and /or net income is deemed appropriate. Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non - operating revenues and expenses. 36 COLLIER COUNTY, FLORIDA 14B NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED BASIS OF ACCOUNTING AND MEASUREMENT FOCUS — CONTINUED Primary revenues including non -grant intergovernmental revenues, charges for services and interest are treated as susceptible to accrual under the modified accrual basis. In applying the susceptibility -to- accrual concept to grant revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. In addition, grant revenues are considered available if they are expected to be collected within one year of the end of the current fiscal period. Property taxes are discussed later in this footnote. Other revenue sources are not considered measurable and available and are not treated as susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include accrued compensated absences and principal and interest on long -term debt. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1) Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2) Within eighty days of the certification of value, but not earlier than sixty -five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled -back rate. if the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3) Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4) A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 37 COLLIER COUNTY, FLORIDA 14B 71 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES— CONTINUED BUDGETS AND BUDGETARY DATA — CONTINUED 5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6) The County Manager approves interdepartmental budget changes within the same fund and division of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7) Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board funds except for agency funds and the Impact Fees Escrow special revenue fund. The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts operates as a fee officer, and as such, prepares its budget in accordance with Section 218.35, Florida Statutes. The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the Board. The Clerk of Court's budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Florida Department of Revenue. Budgets are adopted for all governmental funds except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non - budgeted revenues and expenses and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. 38 COLLIER COUNTY, FLORIDA 14 B 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES— CONTINUED ACCOUNTS RECEIVABLE— UNBILLED REVENUE Unbilled charges for services are accrued in the County Water and Sewer, Emergency Medical Services and Good land Water funds by prorating subsequent bills. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first -in, first -out method. Inventory in the governmental funds consists of supplies held for consumption and land. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non - spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government wide and proprietary fund financial statements are reported as an expense when consumed. CAPITAL ASSETS Land, buildings, improvements and equipment are stated at cost. Capital contributions are recorded at their fair value on the date donated. Facilities constructed using system development impact fees, collected from developers and customers, are stated at cost. The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year. Expenditures for maintenance and repairs are charged to operating expenses. The cost of assets retired or sold, together with the related accumulated depreciation, is removed from the accounts and any gain or loss on disposition is credited or charged to earnings. Depreciation is calculated using the straight -line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Buildings Infrastructure Improvements other than buildings Machinery and equipment Estimated Useful Life 20 -45 years 3 -30 years 4 -45 years 3 -20 years Costs incurred in the renourishment of beaches are included in the infrastructure class of capital assets and are capitalized and depreciated over three years. Infrastructure acquired prior to fiscal years ended June 30, 1980 is not reported. Effective October 1, 2009 the County adopted the provisions of GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, which establishes accounting and financial reporting standards for intangible assets. 39 COLLIER COUNTY, FLORIDA 4 Q NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED CAPITAL LEASE OBLIGATIONS In the government -wide financial statements and proprietary fund financial statements capital lease obligations and the related cost of assets acquired are reflected in the Statement of Net Assets. For capital lease obligations originating in governmental funds, an expenditure for the asset and the offsetting amount of the financing source is reflected in the fund financial statements in the year of inception. BOND PREMIUMS, DISCOUNTS AND ISSUANCE COSTS Bond premiums, discounts and issuance costs for the governmental activities and the business -type activities are deferred and amortized over the term of the bonds using the straight -line method. Bond discounts are presented as a reduction of the face amount of bonds payable, premiums as an increase, while issuance costs are recorded as deferred charges, which are shown on the face of the Statement of Net Assets as a component of noncurrent assets. In the governmental fund financials, bond premiums, discounts and issuance costs are recognized in the current period. DEFEASANCE OF DEBT For refundings resulting in the defeasance of debt, generally accepted accounting principles require that the difference between the reacquisition price and the net carrying amount of the old debt be deferred and amortized over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. The straight -line method is used for amortization of the deferred charge. INTEREST COST In the proprietary funds, interest costs are expensed or capitalized as required by the interest Topic 835, Subtopic 20, Section 30 "Amount of Interest to be Capitalized" of the Financial Accounting Standards Board (FASB) Accounting Standards Codification. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2011 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1st delinquent date as follows: November - 4 %, December - 3%, January - 2 %, and February - 1 %. Tax certificates for the full amount of any unpaid taxes must be sold not later than June 1st of each year. No accrual for the property tax levy becoming due in November 2011 is included in the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. 40 COLLIER COUNTY, FLORIDA � I NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED PROPERTY TAXES- CONTINUED Key dates in the property tax cycle for the fiscal year ended September 30, 2011 are as follows: Property Tax Cycle Assessment roll compiled Assessment roll certified Millage resolution approved Beginning of fiscal year for tax levy Taxes due and payable (levy date) Collection Dates Due date Delinquent (lien date) Tax certificates sold Date January 1, 2010 July 1, 2010 Within 35 days of the certification of the assessment roll October 1, 2010 November 1, 2010 By November 30: 4% discount By December 31: 3% discount By January 31: 2% discount By February 28: 1% discount March 31, 2011 April 1, 2011 Prior to June 1, 2011 APPLICATION OF FASB PRONOUNCEMENTS TO PROPRIETARY FUNDS In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the County has elected not to apply private sector guidance issued after November 30, 1989. ACCOUNTING ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED REVENUE AND DEFERRED REVENUE In instances where assets have been received by the County for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Examples of unearned revenues of the County as of September 30, 2011 are unspent State Housing Initiative Partnership (SHIP) monies and cash receipts associated with unspent advance grant agreements. Deferred revenue liabilities are reported in the governmental funds to offset receivables that do not meet the availability criterion under the modified accrual basis of accounting. Primary examples of the County's deferred revenues are amounts associated with SHIP loans made to qualifying organizations and deferred impact fee agreements made with developers and individuals. 41 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS 148 71 SEPTEMBER 30, 2011 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. It is the Board of County Commissioners' policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all employees. The Sheriffs policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,000 hours, and up to 500 hours of unused vacation time. Both the Clerk of the Circuit Court's and Tax Collector's policies allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government -wide financial statements and the proprietary fund financials. A liability is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are considered due and payable as of year end. IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS The County implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions during the fiscal year ended September 30, 2011. This GASB statement clarifies governmental fund balance classifications and fund type definitions. The basis for the division of fund balances is the level of constraint limiting the use of the resources reported in the governmental funds. GASB Statement No. 54 became effective for financial statement periods beginning after June 15, 2010. Further information can be found in Note 11 beginning on page 60. NOTE 2 — CASH, CASH EQUIVALENTS AND INVESTMENTS The County maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is displayed on the balance sheet under the heading of Cash, Cash Equivalents and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. 42 COLLIER COUNTY FLORIDA 148 74 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 2 — CASH CASH EQUIVALENTS AND INVESTMENTS - CONTINUED As of September 30, 2011, the County had the following cash, cash equivalents and investments: Investment Maturities Fair Value Call Date Call Frequency Rating Cash on hand N/A $ 93,518 N/A N/A N/A Demand deposits N/A 131,370,360 N/A N/A N/A State Board of Administration Pool: Pool A N/A 718,262 N/A N/A AAAm Pool N/A 16,165 N/A N/A N/A Certificate of Deposit 10/7/2011 50,000,000 none N/A AA+ United States Treasury Note 3/31/2012 10,044,100 none N/A AA+ Fannie Mae 6/22/2012 25,176,000 none N/A AA+ Federal Home Loan Bank 8/17/2012 50,007,500 11/4/2011 continuous AA+ Federal Home Loan Bank 9/12/2012 25,006,000 12/1/2011 continuous AA+ Federal Home Loan Bank 9/21/2012 50,000,500 10/6/2011 continuous AA+ United States Treasury Note 12/31/2012 50,263,500 none N/A AA+ Fannie Mae 9/20/2013 50,272,500 9/20/2012 once AA+ Freddie Mac 1/28/2014 25,011,500 10/28/2011 continuous AA+ Federal Home Loan Bank 5/8/2014 21,510,320 11/8/2011 continuous AA+ Freddie Mac - Multi Step Coupon 8/15/2014 50,013,000 11/15/2011 continuous AA+ Fannie Mae 8/15/2014 50,060,500 2/15/2012 continuous AA+ Fannie Mae 8/22/2014 25,033,500 2/22/2012 continuous AA+ Fannie Mae - Multi Step Coupon 9/16/2014 49,896,500 3/16/2012 continuous AA+ Total $ 664,493,725 "Standard and Poor's rating CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County's investment practices are governed by Florida Statutes, Chapter 218 and the County's Investment Policy. The County's Investment Policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (SBA), direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation /Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers' acceptances rated "AA" or higher, prime commercial paper rated "A -1" and "P -1 ", tax - exempt obligations rated "AA" or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County's master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. The SBA is an investment pool administered by the State Board of Administration, under the regulatory oversight of the State of Florida. The SBA operates two pools, Florida PRIME and Fund B Surplus Trust Fund (Fund B), with the Fund B carrying a AAAm rating from Standard & Poor's. 43 Y COLLIER COUNTY, FLORIDA 4 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 2 —CASH. CASH EQUIVALENTS AND INVESTMENTS— CONTINUED CREDIT RISK —CONTINUED At September 30, 2011, the Sheriff had $734,427 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool. Of this amount, $718,262 is invested in the Florida PRIME and $16,165 in Fund B. The Florida PRIME investment is fully liquid and carries a weighted average days to maturity of 38.3 days. Fund B is accounted for as a fluctuating net asset value pool and the fair value factor for September 30, 2011 was .75684. Fund B has a weighted average life of 4.82 years. Fund B cash holdings continue to be distributed to participants as they become available from maturities, sales and income received. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public Deposits Act ". Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range from 25% to 200% depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK The policy requires execution of a third -party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the County's name. At September 30, 2011, the County had demand deposits of $131,370,360. These demand deposits do not include discretely presented component unit deposits of $309,627. All balances in excess of the Federal Depository Insurance Corporation insurance for demand deposits are fully collateralized by the multiple financial institutions' collateral pool in accordance with Florida Statutes Section 280. INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. CONCENTRATION OF CREDIT RISK The County's investment policy establishes limitations on portfolio composition in order to control credit risk. The policy allows 100 percent of the portfolio to be invested in U.S. Government Securities, Agencies and Instrumentalities (excluding mortgage securities), 50 percent to be invested in SBA, 30 percent to be invested in certificates of deposit, 20 percent to be invested in qualifying repurchase agreements and 10 percent each in the categories of fixed income mutual funds, domestic bankers' acceptances, prime commercial paper and tax - exempt obligations. 44 OLLIER- COUNTY , FLORIDA 14B 7 C NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 2 — CASH CASH EQUIVALENTS AND INVESTMENTS — CONTINUED The portion of the County's portfolio invested in U.S. Government Instrumentalities is detailed as follows, at September 30, 2011: Percent of Issuer Portfolio Federal Home Loan Bank 22.05% Federal Home Loan Mortgage Corporation 11.29% Federal National Mortgage Association 30.16% Total U.S. Government Instrumentalities 63.50% Reconciliation of cash, cash equivalents and investments to the basic financial statements: Primary government: Cash, cash equivalents and investments $ 366,458,962 Restricted cash, cash equivalents and investments - current 15,818,888 Restricted cash, cash equivalents and investments - noncurrent 253,810,516 Agency funds: Cash, cash equivalents and investments 28,405,359 Total $ 664,493,725 NOTE 3 - TRADE RECEIVABLES Trade receivables for Governmental and Business -type Activities are net of an allowance for doubtful accounts as follows: General Fund Government Facilities Impact Fee Nonmajor Governmental Funds Total receivables reported in Governmental Funds Trade Allowance for Net Trade Receivables Doubtful Accounts Receivables $ 537,155 $ 92,052 $ 445,103 446 - 446 3,009,627 790,688 2,218,939 3,547,228 882,740 2,664,488 Total receivables reported in Internal Service Funds 464,580 10,867 453,713 Total Governmental Activities trade receivables $ 4,011,808 $ 893,607 $ 3,118,201 County Water and Sewer $ 5,545,645 $ 362,821 $ 5,182,824 Solid Waste Disposal 730,116 - 730,116 Nonmajor Enterprise Funds 3,197,316 17,374 3,179,942 Total Business -type Activities trade receivables $ 9,473,077 $ 380,195 $ 9,092,882 45 COLLIER COUNTY, FLORIDA ,� `" NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 3 - TRADE RECEIVABLES — CONTINUED The County has multi and single - family home rehabilitation and homeownership programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI), Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program (SHIP). The programs are generally repaid when the respective properties are transferred or sold. If the property is transferred or sold before the end of the loan period, the proceeds from the repayment including interest, if any, are then returned to the program. If the homeowners remain in their homes for the full term of the deferred loan, the loan is forgiven. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. NOTE 4 - INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances to and advances from other funds at September 30, 2011 were as follows: Governmental Activities: General Fund Government Facilities Impact Fees Fund Other governmental funds: Community Development Fund Capital Improvement Revenue Bonds Fund Parks Improvement Fund County -Wide Capital Improvements Fund County -Wide Library Impact Fees Fund Correctional Facilities Impact Fees Fund Emergency Medical Services Impact Fees Fund Law Enforcement Impact Fees Fund Total Governmental Activities Business -type Activities: County Water and Sewer Solid Waste Disposal Total Business -type Activities Total Advances Advance Advance To From $ 11,647,325 $ - - 22,277,347 - 1,150,000 - 15,717,302 1,150,000 - 38,867,500 - - 9,715,125 -. 4,218,800 - 2,333,900 - 15,388,000 51,664,825 70,800,474 15,717,302 - 3,418,347 - 19,135,649 - $ 70,800,474 $ 70,800,474 Advances are made to funds for the purposes of capital improvements and the funding of certain surety requirements. Reimbursements will take place over the next several years as funds are available. 46 14B 70 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 4 - INTERFUND PAYABLES AND RECEIVABLES - CONTINUED DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. Due from and due to other funds at September 30, 2011 were as follows: 47 Due From Due To Governmental Activities: General Fund $ 2,810,686 $1,569,729 Other Governmental Funds: Road Districts - 20 Community Redevelopment 79,673 18,178 Unincorporated Area MSTD 321,712 16,495 Community Development - 527 Water Management and Pollution Control 40,666 - Grants and Shared Revenues 118,346 1,820,834 Improvement Districts 34,762 42 Fire Control Districts 28,842 - Lighting Districts 7,359 - 911 Enhancement Fee - 294,500 Tourist Development 109,738 1,322 State Housing Initiative Partnership 20,312 - State Court Administration 15,213 - Conservation Collier 65,901 69 Other Special Revenue Funds - 37,884 Gas Tax Revenue Bonds - 13,137 Stormwater Improvement Assessment Bonds 924 - Limited General Obligation Conservation Collier Bonds 83,647 - Forest Lakes Limited General Obligation Bonds 5,718 - Parks Improvements 34,140 6,993 Water Management 2,453 2,125 Parks Impact Districts 529 - Road Impact Districts - 56 Road Construction 941,593 - Other Capital Projects 940 564 Total other governmental funds 1,912,468 2,212,746 Business -type Activities: County Water and Sewer 16,918 360 Solid Waste 77,512 153 Other Business -type funds: Emergency Medical Services 14 - Airport Authority - 47 Collier Area Transit 12,044 941,592 Total other business -type funds 12,058 941,639 Internal Service Funds 780,531 885,546 Total All Funds $ 5,610,173 $ 5,610,173 47 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE S — CAPITAL ASSETS 1419 A summary of capital asset activity for the year ended September 30, 2011 is as follows: Less accumulated depreciation: October 1, 2,095,913 Deductions/ September 30, Buildings 2010 Additions Reclassifications 2011 Governmental Activities: 229,632,996 29,416,624 (158,839) 258,890,781 Capital assets not depreciated: 66,319,228 11,436,819 (7,630,746) 70,125,301 Land and other non - depreciable assets $ 378,046,623 $ 3,954,275 $ 2,466,246 $ 384,467,144 Construction in progress 72,961,872 22,459,395 (9,535,512) 85,885,755 Total capital assets not depreciated 451,008,495 26,413,670 (7,069,266) 470,352,899 Capital assets depreciated: Buildings 434,415,832 243,457 (414,589) 434,244,700 Infrastructure 895,629,713 5,407,526 76,569 901,113,808 Improvements other than buildings 217,837,490 848,109 (6,509,657) 212,175,942 Machinery and equipment 164,243,040 9,875,567 (7,891,302) 166,227,305 Total capital assets depreciated 1,712,126,075 16,374,659 (14,738,979) 1,713,761,755 Less accumulated depreciation: 192,110 2,095,913 138,910,220 959,402,456 Buildings 95,676,205 13,805,896 (96,929) 109,385,172 Infrastructure 229,632,996 29,416,624 (158,839) 258,890,781 Improvements other than buildings 66,319,228 11,436,819 (7,630,746) 70,125,301 Machinery and equipment 120,274,398 15,053,114 (9,456,641) 125,870,871 Total accumulated depreciation 511,902,827 69,712,453 (17,343,155) 564,272,125 Total depreciable capital assets, net 1,200,223,248 (53,337,794) 2,604,176 1,149,489,630 Total Governmental Activities capital assets, net $ 1,651,231,743 $ (26,924,124) $ (4,465,090) $ 1,619,842,529 Business -type Activities: Capital assets not depreciated: Land and other non - depreciable assets $ 24,300,821 $ 809,907 $ 621 $ 25,111,349 Construction in progress 66,259,912 26,681,874 (28,369,861) 64,571,925 Total capital assets not depreciated 90,560,733 27,491,781 (28,369,240) 89,683,274 Capital assets depreciated: Buildings Improvements other than buildings Machinery and equipment Total capital assets depreciated Less accumulated depreciation: Buildings Improvements other than buildings Machinery and equipment Total accumulated depreciation Total depreciable capital assets, net Total Business -type Activities capital assets, net 136,622,197 192,110 2,095,913 138,910,220 959,402,456 2,697,728 23,623,575 985,723,759 30,594,830 3,349,731 (81,794) 33,862,767 1,126,619,483 6,239,569 25,637,694 1,158,496,746 63,455,719 3,582,067 (4,671) 67,033,115 242,326,348 30,307,299 (1,817) 272,631,830 19,768,612 3,283,541 (2,210,844) 20,841,309 325,550,679 37,172,907 (2,217,332) 360,506,254 801,068,804 (30,933,338) 27,855,026 797,990,492 $ 891,629,537 $ (3,441,557) $ (514,214) $ 887,673,766 48 14B 7 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 5 - CAPITAL ASSETS- CONTINUED Schedule of depreciation for fiscal year 2011: General Government $ 8,697,512 Public Safety 13,789,114 Physical Environment 4,458,085 Transportation 31,484,421 Economic Environment 28,807 Human Services 760,595 Culture and Recreation 8,478,680 Subtotal 67,697,214 Internal Service Funds 2,015,239 Total Governmental Activities $ 69,712,453 Water and Sewer $ 33,603,207 Solid Waste 811,754 EMS 737,284 Airport Authority 848,605 Mass Transit 1,172,057 Total Business -type Activities $ 37,172,907 NOTE 6 - LONG -TERM OBLIGATIONS SUMMARY OF CHANGES IN LONG -TERM OBLIGATIONS The following is a summary of changes in long -term obligations for the year ended September 30, 2011: Governmental Activities: Bonds and Loans Payable Premium /Discount, net Deferred Loss Capital Lease Obligations Self- insurance Claims Net OPEB Obligation Compensated Absences Total Business -type Activities: Bonds and Loans Payable Premium Deferred Loss Notes Payable Capital Lease Obligations Landfill Closure Liability Compensated Absences Total 000's Omitted Premium or October 1, Discount /Loss September 30, Due within 2010 Additions Reductions Amortized, net 2011 one year $ 470,136 $ 24,620 $ (61,522) $ - $ 433,234 $ 27,083 15,186 2,188 - (1,329) 16,045 - (188) (1,906) - 267 (1,827) - 439 - (170) - 269 93 8,609 - (967) - 7,642 5,714 1,484 1,752 (1,657) - 1,579 - 21,921 8,719 (7,014) - 23,626 11,122 $ 517,587 $ 35,373 $ (71,330) $ (1,062) $ 480,568 $ 44,012 $ 255,420 $ - $ (11,957) $ - $ 243,463 $ 12,288 4,446 - - (293) 4,153 - (4,647) - - 472 (4,175) - 72 - (3) - 69 69 636 - (249) - 387 212 1,901 - (77) - 1,824 - 2,656 2,022 (2,138) - 2,540 1,778 $ 260,484 $ 2,022 $ (14,424) $ 179 $ 248,261 $ 14,347 COLLIER COUNTY, FLORIDA 148 7 0 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 6 - LONG -TERM DEBT - CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2011 were composed of the following: Governmental Activities Limited General Obligation Bonds $32,815,000 2005A Limited General Obligation Bonds, Conservation Collier Program, due in annual installments of $3,285,000 to $4,805,000 through January 1, 2013; interest at 3.00% to 5.00 %. $ 9,380,000 $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit, due in installments of $300,000 to $540,000 through January 1, 2022; interest at 3.75% to 4.25 %. 4,900,000 Total Governmental Activities Limited General Obligation Bonds $ 14,280,000 Governmental Activities Revenue Bonds $49,360,000 2003 Capital Improvement and Refunding Revenue Bonds due in annual installments of $1,130,000 to $2,570,000 through October 1, 2033; interest at 2.00% to 4.75 %. $167,200,000 2005 Capital Improvement and Refunding Revenue Bonds due in annual installments of $2,035,000 to $7,240,000 through October 1, 2035; interest at 2.25% to 5.00 %. $102,125,000 2003 Gas Tax Revenue Bonds, due in annual installments of $1,495,000 to $6,865,000 through June 1, 2023; interest at 2.00% to 5.25%. $96,255,000 2005 Gas Tax Revenue Bonds, due in annual installments of $445,000 to $13,985,000 through June 1, 2025; interest at 3.00% to 5.00 %. $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to $3,860,000 through July 1, 2034; interest at 3.00% to 4.50 %. $24,620,000 2010B Special Obligation Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00 %. Total Governmental Activities Revenue Bonds 35,505,000 137,820,000 53,615,000 92,130,000 58,350,000 24,620,000 $ 402,040,000 Governmental Activities Loans and Notes Payable $12,000,000 Florida Department of Transportation State Infrastructure Bank Loan, due in annual installments of $1,839,148 to $4,414,096 through October 1, 2012; interest at 2.00 %. $ 6,327,544 $13,500,000 Bayshore Gateway Community Redevelopment Agency Taxable Note, due September 1, 2014; monthly variable interest rate of 30 -Day LIBOR plus 3.75 %. Total Governmental Activities Loans and Notes Payable Total Governmental Activities Obligations sn 10,586,000 16,913,544 $ 433,233,544 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 6 - LONG -TERM DEBT - CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE — CONTINUED Unamortized Bond Premium Deferred Loss on Bond Refunding Governmental Activities Obligations, Net Less Current Portion of Governmental Activities Obligations Long -Term Portion of Governmental Activities Obligations, Net BUSINESS -TYPE ACTIVITIES 14B 7 16,395,329 (1,826,733) 447,452,440 (27,083,449) $ 420,368,991 Business -type Activities Revenue Bonds $33,630,000 20038 County Water and Sewer Refunding Revenue Bonds due in annual installments of $1,410,000 to $4,125,000 through July 1, 2021; interest at 4.25% to 5.50 %. $ 25,260,000 $110,165,000 2006 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,310,000 to $8,695,000, commencing July 1, 2017 through July 1, 2036; interest at 4.00% to 5.00 %. 110,165,000 $11,727,489 2009 Collier County Water and Sewer Revenue Bonds due in annual installments of $1,569,324 to $1,817,005, commencing July 1, 2010 through July 1, 2016; interest at 2.97 %. 8,589,008 Total Business -type Activities Revenue Bonds Business -Type Activities Loans and Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through $ 144,014,008 use of sewer system development fee credits. Non - interest bearing agreement. $ 69,190 $14,547,667 County Water and Sewer District State Revolving Fund Loan, interest payable at 4.25% payable in 20 annual payments commencing October 1, 1992. 1,017,592 $13,292,898 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.65% payable in 40 semiannual payments commencing January 15, 1999. 5,619,199 $22,238,677 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing November 15, 2001. 12,521,935 $5,160,675 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing October 15, 2004. 3,696,726 $6,560,956 County Water and Sewer District. State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing January 15, 2005. 4,696,614 $29,224,004 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.95% payable in 40 semiannual payments commencing June 15, 2006. $ 22,805,130 51 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 6 - LONG -TERM DEBT - CONTINUED DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE — CONTINUED $5,445,223 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.92% payable in 40 semiannual payments commencing December 15, 2005. 4,148,056 $5,188,500 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.74910 payable in 40 semiannual payments commencing November 15, 2007. 3,433,393 $7,123,496 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.75% and 2.64% payable in 40 semiannual payments commencing April 15, 2008. 4,717,559 $17,577,022 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.64% and 2.79% payable in 40 semiannual payments commencing August 15, 2008. 15,352,731 $11,637,070 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.64% and 2.79% payable in 40 semiannual payments commencing October 15, 2009. 10,920,381 $3,294,890 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.79% payable in 40 semiannual payments commencing December 15, 2009. 2,654,643 Total Business -type Activities Loans and Notes Payable $ 99,517,564 Total Business -type Activities Obligations $ 243,531,572 Unamortized Bond Premium 4,153,097 Deferred Loss on Bond Refunding (4,174,638) Business -type Activities Obligations, Net $ 243,510,031 Less Current Portion of Business -type Activities Obligations Payable from Unrestricted Assets (9,787,165) Less Current Portion of Business -type Activities Obligations Payable from Restricted Assets (2,570,056) Long -Term Portion of Business -type Activities Obligations, Net $ 231,152,810 52 COLLIER COUNTY, FLORIDA 1 `T NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 6 - LONG -TERM DEBT - CONTINUED SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY The total annual debt service requirements to maturity of long -term debt, excluding compensated absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows: Governmental Activities Fiscal Year Limited General Obligation Bonds Revenue Bonds Loans and Notes Payable Totals Principal Interest Principal Interest Principal Interest Principal 2012 $ 4,940,000 $ 546,994 $ 19,330,000 $ 18,378,666 $ 900,000 $ 699,343 $ 44,795,003 2013 5,185,000 298,525 19,350,000 17,548,428 900,000 637,476 43,919,429 2014 390,000 163,475 17,485,000 16,744,133 8,786,000 575,608 44,144,216 2015 410,000 147,475 17,685,000 15,942,336 - - 34,184,811 2016 425,000 130,775 18,525,000 15,094,892 - - 34,175,667 2017 -21 2,390,000 374,700 106,215,000 61,748,714 - - 170,728,414 2022 -26 540,000 11,475 107,445,000 34,873,288 - - 142,869,763 2027 -31 - - 48,455,000 17,289,016 - - 65,744,016 2032 -36 - - 47,550,000 5,181,170 - - 52,731,170 Totals $ 14,280,000 $ 1,673,419 $ 402,040,000 $ 202,800,643 $ 10,586,000 $ 1,912,427 $ 633,292,489 Business -type Activities Fiscal Loans and Year Revenue Bonds Notes Payable Totals Principal Interest Principal Interest 2012 $ 5,188,936 $ 6,494,196 $ 7,168,285 $ 2,812,095 $ 21,663,512 2013 5,422,044 6,267,614 6,256,273 2,593,262 20,539,193 2014 5,630,093 6,058,578 6,437,162 2,412,373 20,538,206 2015 5,885,930 5,792,443 6,623,299 2,226,235 20,527,907 2016 3,942,005 5,533,892 6,814,836 2,034,697 18,325,430 2017 -21 20,360,000 25,056,139 34,396,584 7,191,648 87,004,371 2022 -26 25,410,000 20,004,687 26,610,139 2,645,290 74,670,116 2027 -31 32,235,000 13,183,362 5,210,986 195,912 50,825,260 2032 -36 39,940,000 5,470,653 - - 45,410,653 Totals $ 144,014,008 $ 93,861,564 $ 99,517,564 $ 22,111,512 $ 359,504,648 LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. RESTRICTIVE COVENANTS According to the official statements and County resolutions authorizing the issuance of the Series 2003 and 2005 Capital Improvement Revenue and Refunding Revenue Bonds, as well as the Series 2003 and 2005 Gas Tax Revenue Bonds, the issues are payable from and secured by liens on the local government half -cent sales tax and gas tax revenues, respectively. 53 COLLIER COUNTY, FLORIDA 140 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 6 - LONG -TERM DEBT— CONTINUED RESTRICTIVE COVENANTS - CONTINUED During fiscal year 2008 insurer ratings were downgraded on the Series 2002, 2003 and 2005 Capital Improvement and Refunding Revenue Bonds. The covenants related to these issues require that in the event of a downgrade below "A ", by either Moody's or Standard and Poor's, the County must fund a cash reserve to replace the surety within twelve months. By September 30, 2009 Collier County was required to fund the reserve in the amount of $19,570,777. The County used internal loans from the County Water and Sewer fund to achieve the required reserve funding. A subsequent refinancing of the Series 2002 Capital Improvement Revenue Bonds decreased the cash reserve requirement. See Note 8, Defeased Debt for more information. The current reserve requirement of $15,717,300 is funded as of September 30, 2011. Interest earned on the reserve is assigned to the funds from which the advances were made and the reserve amount is included in non - current restricted cash, cash equivalents and investments in the Statement of Net Assets. All required principal and interest payments have been made in a timely manner on the Capital Improvement and Revenue Refunding Bonds. During fiscal year 2011, Collier County issued the Series 2010B Special Obligation Revenue Bonds. According to the official statements and County resolutions authorizing the issuance of these bonds, the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment, if necessary, from non -ad valorem revenues amounts sufficient to pay the principal and interest on the Series 2010B Bonds. Tax increment revenues and a covenant to budget and appropriate from all legally available CRA non -ad valorem revenues is pledged for the repayment of the Bayshore Gateway Community Redevelopment Agency's taxable note. The average of actual receipts and cash carried forward from the previous year must cover annual debt service requirements by 1250. The agency was in compliance with this covenant for the year ended September 30, 2011. Water and sewer revenue bonds are payable solely from and secured by a first lien upon and pledge of the net revenues and certain other fees and charges derived from operation of the County's water and sewer system. The pledge of net revenues derived by the County from the operation of the system does not constitute a lien upon the system or any other property of the County. The covenants of the resolutions authorizing the County Water and Sewer District Bonds, Series 2009, Series 2006 and 2003B include an obligation for the County to fix, establish and maintain such rates and collect such fees, rentals or other charges for the services and facilities of the water and sewer system, and to revise the same whenever necessary, so as to provide in each year net revenues, as defined in the resolutions authorizing the revenue bonds, which together with system development fees and special assessment proceeds received shall be adequate to pay at least 125% of the annual debt service requirements for the Water and Sewer Bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service for the bonds. In addition, bond covenants require a renewal and replacement amount equal to $300,000 to be set aside in the County Water and Sewer District Funds. The water and sewer funds were in compliance with these covenants for the year ended September 30, 2011. 54 COLLIER COUNTY, FLORIDA 1.4,B NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 6 - LONG -TERM DEBT — CONTINUED RESTRICTIVE COVENANTS - CONTINUED The Collier County Water and Sewer District has several State Revolving Fund loans outstanding with the Florida Department of Environmental Protection. These loans are collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and system development fees. The lien shall be subordinate in all respects to liens placed upon pledged revenues established by bonded indebtedness. The County Water and Sewer District shall maintain rates and charges for services which together with system development fees sufficient to pay 115% of the annual debt service requirements on the loans, as well as satisfy the coverage requirements of all senior debt obligations. The County Water and Sewer District State Revolving funds were in compliance with these covenants for the year ended September 30, 2011. INTEREST CAPITALIZED Interest costs on the long -term debt of business -type activities, including capitalized leases, incurred and capitalized during the year ended September 30, 2011 were as follows: Total Interest Cost Incurred Business -type Activities $ 9,226,492 Interest Cost Capitalized $ 357,390 Interest expense is shown as a direct expense of the Business -type Activities. LEASE OBLIGATIONS Net Interest Expense $ 8,869,102 Capitalized leases payable at September 30, 2011 amounted to $655,870. These obligations, which are collateralized by equipment and vehicles, have total annual installments ranging from $35,231 to $329,825 including interest ranging from 4.26% to 7.21% and mature through 2015. As of year end, equipment leased under capital leases in the Governmental Activities had a historical cost of $1,341,358 and accumulated depreciation of $1,341,358. Equipment leased under capital leases in the Business - type Activities had a historical cost of $1,061,529 and accumulated depreciation of $511,864. Future minimum capital lease obligations as of September 30, 2011 were as follows: Governmental Business -type Activities Activities Total 2012 $ 104,821 $ 225,004 $ 329,825 2013 77,920 140,406 218,326 2014 77,920 41,575 119,495 2015 35,231 - 35,231 Total minimum lease payments 295,892 406,985 702,877 Less amount representing interest (26,833) (20,174) (47,007) Present value of minimum lease payments $ 269,059 $ 386,811 $ 655,870 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 6 - LONG-TERM DEBT— CONTINUED LEASE OBLIGATIONS— CONTINUED 14B The County also leases office space, office equipment and storage space under operating leases. These leases expire or are cancellable within the next fiscal year. In the normal course of operations these leases will be renewed or replaced by other leases. Total rental expenditures for all operating leases within the governmental activities for the year ended .September 30, 2011 were $896,918. Total rental expenditures for all operating leases within business -type activities governmental activities for the year ended September 30, 2011 were $188,172. NOTE 7 - CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi - family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuer, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2011 the outstanding principal amount payable on all component unit conduit debt was $271,017,446 and is made up of the following: Industrial development revenue bonds $ 71,912,446 Housing finance revenue bonds 46,070,000 Health facilities revenue bonds 82,350,000 Educational facilities revenue bonds 70,685,000 Total $ 271,017,446 56 COLLIER COUNTY, FLORIDA 14P .7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 8 - DEFEASED DEBT The County has defeased certain outstanding bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all future debt service payments on the defeased debt. Accordingly, the trust accounts and the defeased bonds are not included in the County's financial statements. At September 30, 2011 the following issues were considered defeased: Governmental Activities 1986 Capital Improvement Program Revenue Bonds, Sub - Series 5 Mode A •2002 Capital Improvement Revenue Bonds Original Debt Defeased $ 12,245,000 25,200,000 Defeased Bonds Outstanding $ 3,065,000 25,200,000 2003 Capital Improvement and Refunding Revenue Bonds 4,360,000 3,960,000 Total Governmental Activities Defeased Debt $ 41,805,000 $ 32,225,000 Original Debt Defeased Bonds Business -type Activities Defeased Outstanding 1983 County Water and Sewer District Refunding Bonds $ 22,000,000 $ 1,915,000 On November 30, 2010 Collier County issued the Series 20108 Special Obligation Refunding Revenue Bonds in the par amount of $24,620,000. These bonds were issued for the purpose of advance refunding all of the County's outstanding Capital Improvement Revenue Bonds, Series 2002. The final maturity of the bonds is October 1, 2021, with interest rates of 3.00% to 5.00 %. The refunding achieved a net present value savings of 5.41% on the refunded bonds. The refinancing of the Series 2002 Bonds, and their attendant restrictive covenants, caused the required cash reserve surety replacement relating to the Series 2002, 2003 and 2005 bonds to decrease from $19,570,777 to $15,717,300, or $3,853,477. The advance refunding achieved an aggregate debt service savings of $1,915,405 and an economic gain of $1,654,796. The Series 2002 bonds have a redemption date of October 1, 2011. On April 29, 2011 Collier County prepaid the remaining outstanding principal balance of the Series 2008 Conservation Collier Bond of $6,919,328, plus a 3.00% prepayment premium, and achieved an aggregate debt service savings of $131,725. The Series 2008 bonds had an original maturity of January 1, 2013. 57 COLLIER COUNTY, FLORIDA 1,48.7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 9 — PENSION PLAN OBLIGATIONS RETIREMENT PLAN Substantially all full time and part time employees of the County are eligible to participate in the State of Florida Retirement System (the System), a cost sharing, multiple employer program administered by the State of Florida, Division of Retirement. The System provides two retirement plans from which eligible employees can choose: the Pension Plan (defined benefit) and the Investment Plan (defined contribution). The County follows the provisions of GASB 27, Accounting for Pensions by State and Local Governmental Employers, as described in the following disclosure. PLAN DESCRIPTION Employees hired prior to July 1, 2011 participating in the Pension Plan who retire at or after age 62 with 6 years of credited service for regular risk or with 30 years of service regardless of age, are entitled to a retirement benefit, payable monthly for life, equal to 1.6% for regular employees, 2.0% for senior management, and 3.0% for county elected officials of their final average compensation for each year of credited service; and for special risk, after age 55 with 6 years or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, up to 3.0% for each year of credited service times their final average compensation. Final average compensation is the employee's average of the five highest years of salary earned during credited service. Vested employees may retire before age 62 for regular risk and 55 for special risk and receive retirement benefits that are reduced 5.0% for each year prior to normal retirement age. Employees hired on July 1, 2011 or later participating in the Pension Plan who retire at or after age 65 with 8 years of credited service for regular risk or with 33 years of service regardless of age, are entitled to a retirement benefit, payable monthly for life, equal to 1.6% for regular employees, 2.0% for senior management, and 3.0% for county elected officials of their final average compensation for each year of credited service; and for special risk, after age 60 with 8 years or with 30 years of service and age 57 or after 30 years of special risk service regardless of age, or after 33 years of any creditable service are entitled to a retirement benefit payable monthly for life. Vested employees may retire before age 65 for regular risk and 60 for special risk and receive retirement benefits that are reduced 5.0% for each year prior to normal retirement age. Employees participating in the investment plan are vested after one year of service with no age requirement. The System also provides death and disability benefits. Benefits are established by Chapter 121, Florida Statutes and Chapter 228, Florida Administrative Code. The Florida Legislature has sole authority to amend benefit provisions. The Deferred Retirement Option Program (DROP) is a program that provides an alternative method for payment of retirement benefits for a specified and limited period for members of the System, effective July 1, 1998. Under this program, the employee may retire and have their benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while continuing to work for a System employer. Employees enrolled in DROP prior to July 1, 2011 earn interest on accumulated benefits in the Trust Fund at 6.5 %; those enrolling on or after July 1, 2011 earn interest at 1.30 %. The act of participating in the program does not change the individual employee's employment conditions. 58 COLLIER COUNTY, FLORIDA A B NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 9 — PENSION PLAN OBLIGATIONS — CONTINUED When the DROP period ends, a maximum of 60 months, employment must be terminated. At the time of termination of employment, the employee will receive payment of the accumulated DROP benefits, and begin receiving their monthly retirement benefit (in the same amount determined at retirement, plus annual cost -of- living increases). The System publishes an annual report that provides ten -year historical trend information regarding progress made in accumulating sufficient assets to pay benefits when due. The report may be obtained by writing the Division of Retirement, Research, Education and Policy Section, 1317 Winewood Boulevard, Tallahassee, Florida 32315 -9000, or by calling (866) 738 -2366, or accessing their internet site at www.dms.mvflorida.com. FUNDING POLICY The County is required to contribute at an actuarially determined rate. Rates from October 1, 2010 through June 30, 2011 were 23.25% for special risk, 18.64% for county elected officials, 14.57% for senior management, 10.77% for regular employees and 12.25% for DROP employees based on covered payroll. The current rates, effective July 1, 2011, are 14.10% for special risk, 11.14% for county elected officials, 6.27% for senior management, 4.91% for regular employees and 4.42% for DROP employees based on covered payroll. In addition, as of July 1, 2011, employee contributions of 3.00% are required of all Pension Plan and Investment Plan members, except for those in DROP. The contributions of the County are established by the State Legislature and therefore subject to amendment. The County's contributions to the System for the years ending September 30, 2011, 2010 and 2009 are represented in the table below. The County's contributions were equal to the required contributions for each year. General Fund Nonmajor Governmental Funds County Water and Sewer Solid Waste Nonmajor Enterprise Funds Internal Service Funds Totals NOTE 10 —TRANSFERS FY -2011 FY -2010 FY -2009 $ 16,291,406 $ 18,869,604 $ 18,878,678 3,763,954 7,058,236. 4,697,215 1,502,003 1,640,191 1,574,521 110,698 119,386 113,447 2,405,063 2,637,057 2,570,903 431,678 487,388 217,901 $ 24,504,802 $ 30,811,862 $ 28,052,665 Transfers between funds move unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations and to move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as payments become due. 59 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 10 — TRANSFERS — CONTINUED Transfers for the year ended September 30, 2011 were as follows: Transfers from Fund Governmental Activities: General Fund Government Facilities Impact Fee Nonmajor Governmental Funds Business -type Activities: County Water and Sewer Solid Waste Disposal Nonmajor Business -type Business -type Activities: Internal Service Funds Totals Transfers to Fund Nonmajor Governmental Funds County Water and Sewer Solid Waste Disposal Nonmajor Business -type Nonmajor Governmental Funds General Fund Nonmajor Governmental Funds County Water and Sewer Nonmajor Business -type General Fund General Fund County Water and Sewer Nonmajor Governmental Funds County Water and Sewer General Fund NOTE 11— NET ASSETS /FUND BALANCE CLASSIFICATION 12 Amount 44,781,911 4,266 42,027 14,215,663 4,176,797 4,093,895 48,608,190 55,100 2,059,353 4,071,929 581,166 1,880,706 3,000 82,200 850,000 $ 125,506,203 Net assets represent the difference between total assets and liabilities and are categorized as follows: Invested in capital assets, net of related debt: Total capital assets, net of debt issued in the acquisition of these assets and net of depreciation is reported separately in the net assets section. Restricted for growth related capital expansion: Impact fee and system development charges restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: One quarter mill of ad valorem revenues restricted for the purchase of environmentally sensitive land. Restricted for Grants: State and federal government grant monies restricted for grant related purposes. 60 COLLIER COUNTY, FLORIDA r imam NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 11— NET ASSETS /FUND BALANCE CLASSIFICATION Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long -term debt. Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of County Water and Sewer District Bonds. The use of monies in the renewal and replacement fund is restricted to funding the cost of additions, replacement or major repair of water and wastewater capital assets. Unrestricted: Balances are not restricted for specific purposes. Governmental funds report fund balances as either spendable or non - spendable. Spendable fund balances are further classified as restricted, committed, assigned or unassigned depending upon the extent to which there are external or internal constraints on the spending of these fund balances. Non - spendable fund balance: Amounts that are not in spendable form or that are legally or contracturally required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of loans and notes receivable, as well as property held for resale. Spendable fund balance: Restricted fund balance — Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors; or imposed by law through constitutional provisions or enabling legislation. Committed fund balance — Amounts that can be spent only for specific purposes determined by the County's highest decision making authority, the Board of County Commissioners. Commitments may be modified or removed only by the Board of County Commissioners through the same formal action that created the original commitment. Assigned fund balance — Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners, but that are neither restricted nor committed to the specific purpose. Unassigned fund balance — Unassigned fund balance is the residual classification for the County's general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amount are available the County spends the restricted amounts first, unless prohibited by law, grant agreements or other contractural arrangement. Further, when committed fund balance is available the County will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. 61 COLLIER COUNTY, FLORIDA 14B -' NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 11— NET ASSETS /FUND BALANCE CLASSIFICATION - CONTINUED A detailed schedule of fund balances at September 30, 2011 is as follows: Government Other . Total General Facilities Governmental Governmental Fund Impact Fee Funds Funds Nonspendabie: Advances $ 11,647,325 $ - $ - $ 11,647,325 Inventory 132,251 - - 132,251 Prepaids /deposits 25,623 - - 25,623 Total nonspendable fund balance 11,805,199 - - 11,805,199 Restricted for: Community redevelopment - - 16,156,520 16,156,520 Federal and state grants - - 12,202,157 12,202,157 Bond covenants or debt service - - 5,985,773 5,985,773 Growth related capital expansion - - 66,843,919 66,843,919 Transportation capital projects - - 53,189,876 53,189,876 Tourist development - - 39,370,739 39,370,739 Conservation Collier - - 20,950,512 20,950,512 Emergency 911 - - 3,424,610 3,424,610 Public safety - - 4,124,838 4,124,838 Courtfunctions - - 3,657,764 3,657,764 Public Records Modernization - - 3,622,745 3,622,745 Other purposes - - 16,066 16,066 Total restricted fund balance - - 229,545,519 229,545,519 Committed for: Special districts - - 35,811,389 35,811,389 Community development - - 5,120,520 5,120,520 Natural resource management - - 2,885,756 2,885,756 Utility regulation - - 721,997 721,997 Libraries - - 608,159 608,159 Other purposes - - 3,297,276 3,297,276 Total committed fund balance - - 48,445,097 48,445,097 Assigned for: Transportation operations - - 2,275,972 2,275,972 Parks and recreation - - 14,695,768 14,695,768 General buildings and Improvements - - 48,768,382 48,768,382 Water management - 10,115,960 10,115,960 Libraries - - 425,060 425,060 Courtfunctions - - 343,683 343,683 Federal and state grants 81,160 - - 81,160 Other purposes 1,032,956 - 2,931,108 3,964,064 Total assigned fund balance 1,114,116 - 79,555,933 80,670,049 Unassigned: 54,458,662 (16,289,984) (23,967,715) 14,200,963 Total Fund Balances $ 67,377,977 $ (16,289,984) $ 333,578,834 $ 384,666,827 62 COLLIER COUNTY, FLORIDA 14B NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 12 - RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self- insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self - insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self- insurance fund and for all other covered risks of loss. Claim Type County's Coverage Excess Carrier's Coverage Property and casualty claims $50,000 - $500,000 $50,000 - $125,000,000 (5% Named Storm) Auto liability claims $200,000 $200,000 - $1,000,000 Employee health claims $275,000 $275,000 - Unlimited Workers' compensation claims $500,000 $500,000 - Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2011 the operating departments were charged $33,481,410 for workers' compensation, health and property and casualty self - insurance programs. The claims loss reserve for workers' compensation, health and property and casualty of $5,391,499 reported at September 30, 2011 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were discounted at 3.5 %. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $3,463,175 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self- Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self- Insurance Fund provides liability insurance coverage subject to the following limitations: $3,100,000 for any claim involving a single individual, $3,200,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff's Self- Insurance Fund program for workers' compensation coverage. The Florida Sheriffs Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self- insurance fund providing coverage for the first $350,000 of every claim. Re- insurance is provided through a third party insurer for all claims exceeding $350,000 up to $10,000,000. 63 COLLIER COUNTY, FLORIDA 4 B 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 12 - RISK MANAGEMENT - CONTINUED Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self- insured risks are reported in the basic financial statements of the Statewide Florida Sheriff's Self- Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. The Sheriff has also established a self- funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000 up to $1,000,000. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The claims loss reserve for health of $2,251,000 reported at September 30, 2011 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriffs health claim loss reserve is recorded as a current liability. CHANGES IN SELF - INSURANCE CLAIMS PAYABLE Changes in the self - insurance claims payable for fiscal years 2010 and 2011 were as follows for the County and Sheriff self- insurance programs: Balance at September 30, 2009 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2010 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2011 Property and Casualty $ 2,031,000 303,958 Group Health $ 5,274,000 43,710,123 Workers' Compensation Total $ 2,024,000 $ 9,329,000 318,880 44,332,961 (955,958) (43,583,123) (513,880) (45,052,961) 1,379,000 5,401,000 1,829,000 8,609,000 846,772 43,216,238 (703,435) 43,359,575 (700,920) (43,076,238) (548,918) (44,326,076) $ 1,524,852 $ 5,541,000 $ 576,647 $ 7,642,499 64 COLLIER COUNTY, FLORIDA 14B 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS Plan Description - The Board and the Tax Collector administer a single - employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the County, be at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan. A subsidy is currently provided to six retirees. The Tax Collector offers an OPEB plan that subsidizes 100% the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement. Additionally, in accordance with Florida Statute 112.0801, County employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group rate as for active employees. The plan does not issue a publicly available financial report. In 2011 Board employees meeting certain eligibility requirements were offered access to a Voluntary Separation Incentive Program (VSIP). The requirements for eligibility were that the employee had to be eligible to retire without penalty underTRS. Eligible employees had three options under VSIP. Option 1: Medical and dental coverage for a period of three years, with employee enrollment in the plans as of the date the election is made. If the employee has waived coverage, the employee will be enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level. The Board will cover costs including both the employer and employee portions of the medical and dental premiums during the coverage period. Option 2: Employee receives a cash incentive in lieu of three years of medical and dental benefits. The employee will receive a cash payment equivalent to 50% of the average value of three years' medical and dental plan premiums, less applicable payroll taxes. Option 3: Employee receives medical and dental benefits until they reach age 65 with a cash incentive for remaining months under the plan. The employee is enrolled in the plans as of the date the election is made. If the employee has waived coverage, the employee will be enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level. The Board will cover costs including both the employer and employee portions. of the medical and dental premiums during the coverage period. As of the first of the month following the date when an employee reaches age 65, the employee will be entitled to receive a one -time cash payment equivalent to 50% of the average monthly value of the medical and dental plan premiums, less applicable payroll taxes, for the remaining months in which the employee is eligible to participate under the plan. The cash incentive payments offered under the Voluntary Separation Incentive Program are considered pension benefits and are not included in the calculation of the OBEP liability. 65 COLLIER COUNTY, FLORIDA 14 B 74 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS — CONTINUED At September 30, 2011, the date of the latest actuarial valuation, County plan participation consisted of: OPEB plan participants 2,054 Retirees receiving benefits 122 Funding Policy - The County has the authority to establish and amend funding policy. For the year ended September 30, 2011, the County contributed $508,627 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation - The annual cost of the County's OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the County's annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution (ARC) Interest on net OPEB obligation Adjustment to ARC Annual OPEB cost Contributions made Increase (decrease) in net OPEB obligation Net OPEB obligation - beginning of year Net OPEB obligation - end of year Fiscal Year Fiscal Year Fiscal Year 2011 2010 2009 $ 662,704 $ 661,962 $ 661,962 10,651 10,651 6,839 (17,585) (17,585) (11,293) 655,770 655,028 657,508 (508,627) (719,310) (658,599) 147,143 . (64,282) (1,091) 290,738 355,020 356,111 $ 437,881 $ 290,738 $ 355,020 Funded Status and Funding Progress - The contributions made for the 2011 fiscal year were 78% of the annual OPEB cost. As of the September 30, 2010 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $5,825,874, and the actuarial value of plan assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $5,825,874. As of the September 30, 2011 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $6,564,292, and the actuarial value of plan assets was $0, resulting in a UAAL of $6,564,292. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $155.4 million, and the ratio of the UAAL to the covered payroll was 4.2 %. Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. 66 COLLIER COUNTY, FLORIDA elf NOTES TO THE FINANCIAL STATEMENTS "t l SEPTEMBER 30, 2011 NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS - CONTINUED Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long -term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions are: Actuarial cost method Amortization method Amortization period Investment rate of return Discount rate Healthcare cost trend rate Projected Unit Credit Actuarial Cost Level Dollar Amount 30 years, Closed 3% 3% 8% for the 2012 fiscal year grading to an ultimate rate of 5% for the 2018 fiscal year Plan Description - The Sheriff administers a single - employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost of health care for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for single coverage and 21% for family coverage for qualifying individuals. Additionally, in accordance with Florida Statute 112.0801, Sheriffs employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriffs health insurance plan at the same group rate as for active employees. The plan does not issue a publicly available financial report. At September 30, 2011, the date of the latest actuarial valuation, Sheriff plan participation consisted of: OPEB plan participants 1,188 Retirees receiving benefits 99 Funding Policy - The Sheriff has the authority to establish and amend funding policy. For the year ended September 30, 2011, the Sheriff contributed $1,084,368 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation - The annual cost of the Sheriffs OPEB Plan is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the Sheriff's annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan obligation. 67 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS — CONTINUED Annual required contribution (ARC) Interest on net OPEB obligation Adjustment to ARC Annual OPEB cost Contributions made Increase in net OPEB obligation Net OPEB obligation - beginning of year Net OPEB obligation - end of year 14 B i7 1 Fiscal Year Fiscal Year Fiscal Year 2011 2010 2009 $ 1,117,938 $ 1,108,742 $ 1,363,461 33,881 30,794 16,496 (55,941) (50,844) (27,236) 1,095,878 1,088,692 1,352,721 (1,084,368) (985,790) (876,138) 11,510 102,902 476,583 1,129, 353 1,026,451 549,868 $ 1,140,863 $ 1,129,353 $ 1,026,451 Funded Status and Funding Progress - The contributions made for the 2011 fiscal year were 91% of the annual OPEB cost. As of the September 30, 2010 actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $12,148,033, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $12,148,033. As of the September 30, 2011 actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $12,018,242, and the actuarial value of assets was $0, resulting in a UAAL of $12,018,242. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $114.2 million, and the ratio of the UAAL to the covered payroll was 10.5%. Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long -term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions are: Actuarial cost method Amortization method Amortization period Investment rate of return Discount rate Healthcare cost trend rate Projected Unit Credit Actuarial Cost Level Dollar Amount 30 years, Closed 3% 3% 10% for the 2011 fiscal year grading to an ultimate rate of 5% for the 2021 fiscal year 68 COLLIER COUNTY, FLORIDA 148 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 14 — LANDFILL LIABILITY On May 1, 1995 the County entered into a landfill operating agreement with a third party for the privatization of the County's landfill operations. Under the contract, the third party is responsible for the daily operations, capital improvements, closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County's estimated liability in connection with the landfills is included in the proprietary funds statement of net assets. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost. The County has funded an escrow account with Fifth Third Bank in the amount of $11,532, as of September 30, 2011, to comply with Rule 62- 701.630, Florida Administrative Code for the inactive Eustis Avenue Landfill site. These funds bear interest and are restricted for the exclusive use of the Eustis Avenue Landfill site's- long -term care. There were no deposits, other than interest, or withdrawals from this account in fiscal year 2011. NOTE 15 - SIGNIFICANT CONTINGENCIES LITIGATION The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as disclosed here, will not materially affect the financial position of the County. During fiscal year 2010, the Collier County Water -Sewer District recorded an impairment of the value of its South Reverse Osmosis Raw Water Wellfield due to the failure of a raw water transmission pipeline. The pipeline was less than one year into its service life at the time of the failure. On November 19, 2010, the Water -Sewer District, through outside counsel, filed suit against the project's contractor and surety. Damages sought by the Water -Sewer District in this action are currently estimated at $9,000,000. Pending litigation involving the Clerk of the Circuit Court and the Board of County Commissioners regarding the role of the Clerk of the Circuit Court as County Auditor ended on November 10, 2010 when the Florida Supreme Court dismissed the request for review of the appeals court decision filed by the Board of County Commissioners. 29 COLLIER COUNTY, FLORIDA 4 U R ` 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 15 - SIGNIFICANT CONTINGENCIES — CONTINUED STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. Subsequent to the end of the fiscal year, the Clerk's office became aware of an inquiry being conducted by one of the grantor agencies. The impact to the financial statements, if any, is unknown and therefore unable to be calculated at this time. ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. There was no arbitrage rebate liability as of September 30, 2011. NOTE 16 - SIGNIFICANT COMMITMENTS Collier County has active construction projects as of September 30, 2011. The projects include road construction, governmental facilities and utilities improvements. At year end the County's commitments with contractors includes the following: Business -type Activities: Water and Sewer Utilities 14,826,587 Solid Waste Disposal Landfill 1,106,686 Other Enterprise Funds Mass Transit 1,375,955 Airports 3,627,099 Total $ 60,292,951 70 Construction Category Commitments Governmental Activities: General Fund General Government $ 164,604 Other Governmental Funds General Government 1,215,860 Public Safety 1,518,565 Physical Environment 1,774,331 Transportation 32,147,041 Culture and Recreation 2,536,223 Business -type Activities: Water and Sewer Utilities 14,826,587 Solid Waste Disposal Landfill 1,106,686 Other Enterprise Funds Mass Transit 1,375,955 Airports 3,627,099 Total $ 60,292,951 70 COLLIER COUNTY, FLORIDA i NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 16 - SIGNIFICANT COMMITMENTS - CONTINUED Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods or services have been order but not received. Encumbrance commitments do not include construction contracts, as they are included as contract commitments. Collier County has the following encumbrances as of September 30, 2011: Business -type Activities: Water and Sewer Utilities Encumbrance Solid Waste Disposal Category Commitments Governmental Activities: Emergency Medical Services 16,420 General Fund General Government $ 854,865 Total Public Safety 2,414 Human Services 4,380 Internal Service Funds Culture and Recreation 6,693 Government Facilities Impact Fee General Government 21,276 Public Safety 5,980 Other Governmental Funds General Government 873,020 Public Services 613,836 Physical Environment 1,321,426 Transportation 3,419,475 Economic Environment 5,545,083 Human Services 1,476,434 Culture and Recreation 888,721 Business -type Activities: Water and Sewer Utilities 4,460,705 Solid Waste Disposal Landfill 956,534 Other Enterprise Funds Emergency Medical Services 16,420 (1,844,875) Goodland Water 9,300 Total Airport Authority 49,983 Collier Area Transit 36,967 Internal Service Funds Risk Management 934,793 Total $ 21,498,305 NOTE 17 — FUND DEFICITS The following funds had fund balance deficits at September 30, 2011: Fund Amount Government Facilities Impact Fee $ (16,289,984) County -Wide Library Impact Fee (7,068,976) Correctional Facilities Impact Fee (2,254,910) Emergency Medical Service Impact Fee (1,844,875) Law Enforcement Impact Fee (12,798,954) Total $ (40,257,699) The fund balance deficits are primarily the result of advances from other funds made prior to September 30, 2011. These advances were recorded to ensure repayment of non - impact fee monies loaned to the impact fee fund for the construction of growth necessitated facilities. County management anticipates that the deficits will be covered by future years' impact fee revenues. 71 COLLIER COUNTY, FLORIDA 140)7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2011 NOTE 18 — SUBSEQUENT EVENTS BOND REFINANCING On January 9, 2012 Collier County issued the Series 2011 Special Obligation Refunding Revenue Bonds in the par amount of $92,295,000. These bonds were issued for the purpose of advance refunding portions of the County's outstanding Capital Improvement and Refunding Revenue Bonds, Series 2003 and 2005. The final maturity of the Series 2011 bonds is October 1, 2029, with interest rates of 2.50% to 5.00 %. The advanced refunding achieved a net present value savings of 5.05% on the refunded bonds and an aggregate debt service savings of $8,971,452. The refinancing of the Series 2003 and 2005 Bonds, and their attendant restrictive covenants, caused the required cash reserve surety replacement relating to the Series 2003 and 2005 bonds to decrease from $15,717,300 to $10,401,506, or $5,315,794. The Series 2003 and 2005 bonds have redemption dates of October 1, 2013 and October 1, 2014, respectively. UTILITY BILLING Subsequent to fiscal year end, management became aware of certain County Water and Sewer meter discrepancies. The discrepancies are primarily related to a series of two inch water meters that may be reading incorrectly. These issues were discovered during a consultant's comprehensive review of County Water and Sewer District billing processes and current estimates are that 300 meters, out of a population of approximately 56,000, may be subject to reading high or low to actual usage. Meters found to be under and over reading are being replaced immediately and potential product liability issues are being analyzed. The consultant and staffs review is ongoing and is expected to be completed during fiscal year 2012. 72 14B 7 REQUIRED SUPPLEMENTARY INFORMATION 74 14B 7 REQUIRED SUPPLEMENTAL INFORMATION COLLIER COUNTY, FLORIDA OTHER POSTEMPLOYMENT BENEFITS SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) - Percentage of Valuation Value of Unit Credit Unfunded Funded Covered Covered Agency Date Assets Actuarial Cost AAL (UAAL) Ratio Payroll Payroll Board and Constitutionals 10/1/2008 3,769,254 3,769,254 0.0% 173,538,752 2.2% (Non- Sheriff) Board and Constitutionals 10/1/2009 - 5,814,470 5,814,470 0.0% 164,923,591 3.5% (Non- Sheriff) Board and Constitutionals 10/1/2010 5,825,874 5,825,874 0.0% 159,321,900 3.7% j (Non- Sheriff) Board and Constitutionals 10/1/2011 - 6,564,292 6,564,292 0.0% 155,365,190 4.2% (Non- Sheriff) Sheriff 10/1/2008 - 9,354,088 9,354,088 0.0% 128,182,544 7.3% Sheriff 10/1/2009 - 14,171,709 14,171,709 0.0% 123,296,677 11.5% Sheriff 10/1/2010 - 12,148,033 12,148,033 0.0% 117,879,632 10.3% Sheriff 10/1/2011 - 12,018,242 12,018,242 0.0% 114,185,572 10.5% 74 M a G M COMBINING AND. INDIVIDUAL FUND FINANCIAL STATEMENTS 146i74 THIS PAGE INTENTIONALLY LEFT BLANK 148 7 Nonmajor Governmental Funds Special Revenue Funds ROAD DISTRICTS — To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. COMMUNITY REDEVELOPMENT AGENCY — To account for the activities of the Immokalee Community Redevelopment Agency and the Bayshore- Gateway Triangle Community Redevelopment Agency. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT — To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT —To account for building permit and development fees to support licensing, permitting and inspection services. WATER MANAGEMENT AND POLLUTION CONTROL — To account for taxes levied County -wide to provide water resource management and water pollution control. GRANTS AND SHARED REVENUES — To account for the revenues received from federal, state and local grants. IMPROVEMENT DISTRICTS — To account for taxes levied within municipal service taxing districts to provide for specified improvements and /or the maintenance of such improvements. FIRE CONTROL DISTRICTS —To account for taxes levied within municipal service taxing districts for fire prevention and control. —To account for taxes levied within municipal service taxing district for street lighting. 911 ENHANCEMENT FEE — To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. PUBLIC RECORDS MODERNIZATION —To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for the modernization of the Clerk's official records management system. TOURIST DEVELOPMENT —To account for the 4% tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP —To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND — To account for moving traffic violation surcharges received to fund the County's intergovernmental radio communications program. STATE COURT ADMINISTRATION —To account for County monies used to fund the operation of the court system. — To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS — To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE — To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER —To account for the acquisition and management of environmentally sensitive lands. IMPACT FEE ESCROW — To account for impact fees relating to certain projects under construction until permits are issued. 14B 7 '` COURT INFORMATION TECHNOLOGY — To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES — To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION — To account for fund accumulation to meet the educational goals of the Collier County OF /IFAS extension. COURT FACILITIES FEE — To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING — To account for fees to be used to provide for affordable housing related projects. OTHER SPECIAL REVENUE FUNDS —To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Euclid and Lakeland Assessment Adoption Awareness Legal Aid Society Teen Court Federal Equitable Sharing Animal Control Domestic Violence Public Library Juvenile Assessment Center Law Library Driver Education Inmate Welfare Crime Prevention County Drug Abuse Freedom Memorial Law Enforcement Training Debt Service Funds GAS TAX REVENUE BONDS —To account for the accumulation of resources and payments of interest and principal on the Series 2003 and 2005 Gas Tax Bonds. CAPITAL IMPROVEMENT REVENUE BONDS — To account for the accumulation of resources, surety reserve and payment of interest and principal on the Series 2002, 2003 and 2005 Bonds. POOLED COMMERCIAL PAPER PROGRAM — To account for the accumulation of resources and payment of interest and principal on the variable rate commercial paper loan program. CARIBBEAN GARDENS LOAN — To account for the accumulation of resources and payment of interest and principal on the variable rate commercial paper incurred in the acquisition of Caribbean Gardens. STORMWATER IMPROVEMENT ASSESSMENT BONDS —To account for the accumulation of resources and payment of interest and principal on special assessment debt incurred in the Naples Park area. LIMITED GENERAL OBLIGATION BONDS, CONSERVATION COLLIER — To account for the accumulation of resources and payment of interest and principal on long -term debt incurred for the acquisition of environmentally sensitive lands. COMMUNITY REDEVELOPMENT TAXABLE NOTE — To account for the accumulation of resources and payment of interest and principal on taxable long -term debt incurred for the acquisition of land in the Bayshore /Gateway Community Redevelopment Agency. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS — To account for the accumulation of resources and payment of interest and principal on long -term debt incurred on the Forest Lakes Limited General Obligation Bonds. SPECIAL OBLIGATION REVENUE BONDS —To account for the accumulation of resources and payment of interest and principal on long -term debt incurred in the refinancing of various outstanding variable rate commercial paper loans. 149 7�4 Capital Project Funds COUNTY -WIDE CAPITAL IMPROVEMENTS — To account for capital projects, designated by the Board of County Commissioners, to be funded by a County -wide one third mil levy. PARKS IMPROVEMENTS — To account for the expenditure of funds raised specifically for improvements to parks. Projects include' land acquisition, design, construction and equipping of certain Community Park sites in the unincorporated areas of the County. Primary funding is ad valorem taxes. COUNTY -WIDE LIBRARY IMPACT FEES — To account for the receipt and expenditure of library impact fees collected from all qualifying new construction. These impact fees must be used for acquisition of County-wide library facilities. CORRECTIONAL FACILITIES IMPACT FEES — To account for the receipt and expenditure of correctional facilities impact fees collected from all qualifying new construction. The impact fee must be used for the 7squisition /construction of correctional facilities. EMERGENCY MEDICAL SERVICES IMPACT FEES — To account for the receipt and expenditure of emergency medical service impact fees collected from all qualifying new construction. The impact fees must be used for acquisition /construction of emergency service facilitiez. WATER MANAGEMENT — To account for the receipt and expenditure of funds raised specifically for water management purposes. Primary funding is ad valorem taxes. PARKS IMPACT DISTRICTS — To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition /construction of park facilities. ROAD IMPACT DISTRICTS — To account for the receipt and expenditure of road impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition /construction of roads. ROAD CONSTRUCTION — To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to, right -of -way acquisition, design and construction of various transportation improvements. LAW ENFORCEMENT IMPACT FEES — To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fee must be used for the acquisition /construction of law enforcement related facilities. OTHER CAPITAL PROJECTS — To account for major capital expenditure financed from resources other than proceeds from the issuance of long -term debt and the one third mil levy. COLLIER COUNTY, FLORIDA 1 4 B � �» COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2011 Special Revenue Funds See accompanying independent auditor's report 80 I r Community Road Redevelopment Unincorporated Community Districts Agency Area MSTD Development ASSETS ' Cash, cash equivalents and Investments $ 2,463,773 $ 2,653,626 $ 9,984,110 $ 7,198,544 Receivables: Interest 3,391 3,319 14,972 7,102 Trade, net 22,110 - 221,010 80,558 Notes _ Special assessments - _ - _ Due from other funds - 79,673 321,712 - Due from other governments 179,657 - 436,757 44,524 Inventory for resale - 13,504,134 - - Advances to other funds _ Prepaid costs _ _ - _ Total assets $ 2,668,931 $ 16,240,752 $ 10,978,561 $ 7,330,728 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 247,349 50,464 958,943 93,626 Wages payable 145,500 14,330 210,544 114,536 Due to other funds 20 18,178 16,495 527 Due to other governments 50 1,260 2,724 787,903 Due to individuals - - - 1,831 Deferred revenues 40 - _ _ Refundable deposits - - 1,850 61,785 Retainage payable _ - _ Advances from other funds - - - 1,150,000 Total liabilities 392,959 84,232 1,190,556 2,210,208 Fund balances (deficits): Restricted - 16,156,520 - - Committed - - 9,788,005 5,120,520 Assigned 2,275,972 _ - - Unassigned _ - _ Total fund balances (deficits) 2,275,972 16,156,520 9,788,005 5,120,520 Total liabilities and fund balances $ 2,668,931 $ 16,240,752 $ 10,978,561 $ 7,330,728 See accompanying independent auditor's report 80 I r 149 70 Special Revenue Funds Water 934,375 1,112,798 6,329 38,413 - Management Grants and 8,326 Fire 1,562 911 and Pollution Shared Improvement Control Lighting Enhancement Control Revenues Districts Districts Districts Fee $ 2,834,076 $ 7,587,020 $ 26,237,900 $ 775,116 $ 266,495 $ 3,563,827 3,646 5,828 29,589 1,291 422 4,326 155 25,945 1,184 56 10,454 - - 219,000 - - - - 40,666 118,346 34,762 28,842 7,359 100,836 3,619,125 - - - 150,957 - 4,544,266 25,113,387 - - - $ 2,979,379 $ 16,119,530 $ 26,303,435 $ 805,305 $ 284,730 $ 3,719,110 52,955 934,375 1,112,798 6,329 38,413 - 40,668 21,030 8,326 34,634 1,562 - - 1,820,834 42 - - 294,500 - - 1 99,100 - - - 1,656 - - - - - 1,606,637 - - - - - 36,911 68,881 - - - 93,623 4,421,443 1,190,048 140,063 39,975 294,500 - 11,698,087 - - - 3,424,610 2,885,756 - 25,113,387 665,242 244,755 - 25,113,387 665,242 244,755 3,424,610 11,698,087 2,885,756 $ 2,979,379 $ 16,119,530 $ 26,303,435 $ 805,305 $ 284,730 $ 3,719,110 81 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAIOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2011 Special Revenue Funds 14 B 7'1 82 State 800 Public Housing MHZ Records Tourist Initiative IRCP Modernization Development Partnership Fund ASSETS Cash, cash equivalents and investments $ 3,654,098 $ 39,898,375 $ 2,471,845 $ 64,063 Receivables: Interest - 43,957 2,895 114 Trade, net - 650,380 - 27,079 Notes - - 1,297,092 - Special assessments _ _ _ _ Due from other funds - 109,738 20,312 Due from other governments 12 1,530 - _ Inventory for resale _ _ Advances to other funds Prepaid costs - _ _ _ Total assets $ 3,654,110 $ 40,703,980 $ 3,792,144 $ 91,256 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 31,365 1,301,586 - 33,415 Wages payable - 30,333 - - Due to other funds - 1,322 Due to other governments - _ Due to individuals _ _ Deferred revenues - - 3,288,074 - Refundable deposits _ _ _ Retainage payable - _ Advances from other funds - Total liabilities 31,365 1,333,241 3,288,074 33,415 Fund balances (deficits): Restricted 3,622,745 39,370,739 504,070 - Committed - - - 57,841 Assigned _ _ _ _ Unassigned _ _ Total fund balances (deficits) 3,622,745 39,370,739 504,070 57,841 Total liabilities and fund balances $ 3,654,110 $ 40,703,980 $ 3,792,144 $ 91,256 See accompanying independent auditor's report 82 14 B 74, Special Revenue Funds 83 GAC Land State Court Confiscated Sales, Roads Utility Conservation Impact Fee Administration Property and Canals Fee Collier Escrow $ 290,977 $ 689,528 $ 1,467,872 $ 726,156 $ 20,907,495 $ 674,386 419 802 1,625 780 24,070 999 85,696 - - - 675 - 15,213 - - - 65,901 - - - 268,891 - - - $ 392,305 $ 690,330 $ 1,738,388 $ 726,936 $ 20,998,141 $ 675,385 18,799 - - 31 42,789 - 29,823 - - 4,908 4,771 - - - - - 69 - - - 268,891 - - _ _ - - 13,132 48,622 4,939 47,629 13,132 268,891 - - - - - 20,950,512 - - 690,330 1,469,497 721,997 - - 343,683 - - - 662,253 343,683 690,330 1,469,497 721,997 20,950,512 662,253 $ 392,305 $ 690,330 $ 1,738,388 $ 726,936 $ .20,998,141 $ 675,385 83 COLLIER COUNTY, FLORIDA 4 B COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2011 Special Revenue Funds See accompanying independent auditor's report 84 Court Court Information Court University Facilities ASSETS Technology Services Extension Fee Cash, cash equivalents and investments $ 417,735 $ 486,867 $ 56,534 $ 2,888,016 Receivables: Interest Trade, net 657 - 62 2,984 Notes 47,772 _ - 100 92,888 Special assessments Due from other funds _ Due from other governments - 19,350 _ Inventory for resale Advances to other funds _ Prepaid costs _ Total assets $ 466,164 $ 506,217 $ 56,696 $ 2,983,888 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 31,263 267,242 Wages payable _ Due to other funds Due to other governments Due to Individuals Deferred revenues Refundable deposits Retainage payable Advances from other funds _ Total liabilities 31,263 267,242 _ Fund balances (deficits): Restricted Committed 434,901 238,975 - 2,983,888 Assigned - _ - 56,696 - Unassigned _ " Total fund balances (deficits) 434,901 238,975 56,696 2,983,888 Total liabilities and fund balances $ 466,164 $ 506,217 $ 56,696 $ 2,983,888 See accompanying independent auditor's report 84 Special Revenue Funds Debt Service Funds 85 Other Total Capital Pooled Special Special Gas Tax Improvement Commercial Affordable Revenue Revenue Revenue Revenue Paper Housing Funds Funds Bonds Bonds Program $ 627,819 $ 5,360,379 $ 144,246,632 $ 3,938,266 $ 15,840,029 $ 26,161 683 3,885 157,818 4,939 162 48 - 33,244 1,299,306 - - - - - 1,516,092 - - - - - 842,524 - - - - - 4,552,748 - - - - - 18,317,291 - - - $ 628,502 $ 3,943,205 $ 15,840,191 $ 26,209 $ 170,932,411 $ 5,397,508 - 46,463 5,268,205 - - - - 1,125 662,090 - - - - 37,884 2,189,871 - 13,137 - - 118 891,156 - - - - - 3,487 - - - - - 5,163,642 - - - - - 76,767 - - - - - 105,792 - - - - - 1,150,000 - 15,717,302 - - 85,590 15,511,010 - 15,730,439 - - 4,140,904 103,525,951 3,943,205 - - 628,502 1,002,569 48,445,097 - - - - 168,445 3,450,353 - 109,752 26,209 628,502 5,311,918 155,421,401 3,943,205 109,752 26,209 $ 628,502 $ 5,397,508 $ 170,932,411 $ 3,943,205 $ 15,840,191 $ 26,209 85 86 COLLIER COUNTY, FLORIDA B COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2011 Debt Service Funds Stormwater Limited General Improvement Obligation Bonds Community Caribbean Assessment Conservation Redevelopment ' ASSETS Gardens Loan Bond Collier Taxable Note Cash, cash equivalents and investments $ 5,342 $ 45,393 $ Receivables: 229, 938 $ 1,584,340 Interest Trade, net - 45 158 565 1,741 Notes - 620 - Special assessments Due from other funds - 99,571 _ Due from other governments - 924 _ 83,647 - Inventory for resale - Advances to other funds _ _ - Prepaid costs i - - - - Total assets $ 5,500 $ 145,933 $ - 314,770 $ 1,586,081 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 92 Wages payable - 140 - Due to other funds - Due to other governments Due to individuals - Deferred revenues Refundable deposits - 96,939 _ - Retainage payable _ - Advances from other funds - Total liabilities 92 96,939 140 - Fund balances (deficits): Restricted Committed 5,408 48,994 314,630 1,586,081 Assigned - - Unassigned - Total fund balances (deficits) 5,408 48,994 314,630 1,586,081 Total liabilities and fund balances $ 5,500 $ 145,933 $ 314,770 $ 1,586,081 See accompanying independent auditor's report 86 14Q 74 Debt Service Funds Capital Projects Funds 87 Total Forest Lakes Special State Debt County -Wide Limited General Obligation Infrastructure Service Capital Parks Obligation Bonds Revenue Bonds Bank Loan Funds Improvements Improvements $ 81,288 $ 239,594 $ 337 $ 21,990,688 $ 10,056,468 $ 13,686,499 112 208 - 7,820 11,374 14,300 778 - 4,494 _ 99,571 - - 5,718 - - 90,289 - 34,140 38,867,500 1,150,000 $ 87,118 $ 239,802 $ 337 $ 22,189,146 $ 48,935,342 $ 14,889,433 - - - 232 166,960 186,672 - - - 13,137 - 6,993 - - - 96,939 - 15,717,302 - - - - - 15,827,610 166,960 193,665 87,118 - 337 5,985,773 - - - 239,802 375,763 48,768,382 14,695,768 87,118 239,802 337 6,361,536 48,768,382 14,695,768 239,802 $ 337 $ 22,189,146 $ 48,935,342 $ 14,889,433 87 COLLIER COUNTY FLORIDA ORIDA � �' COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2011 Capital Projects Funds See accompanying independent auditor's report 88 Emergency County -Wide Correctional Medical Library Facilities Services Water ASSETS Impact Fees Impact Fees Impact Fees Management — Cash, cash equivalents and investments $ 2,706,465 $ 2,079,465 $ Receivables: 484,388 $ 10,662,978 Interest Trade, net 3,067 2,392 597• 11,350 Notes 1,342 333,688 364 129,791 278 118,436 53,487 Special assessments _ Due from other funds - - Due from other governments 8,685 - 2,453 Inventory for resale 13,425 3,762 - Advances to other funds - Prepaid costs _ - Total assets $ 3,053,247 $ 2,225,437 $ 607,461 $ 10,730,268 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 73,410 Wages payable - 508,642 Due to other funds - Due to other governments 2,125 Due to individuals _ - Deferred revenues Refundable deposits 333,688 _ 129,791 118,436 - Retainage payable Advances from other funds - 9,715,125 131,756 4,218,800 146,656 Total liabilities 10,122,223 4,480,347 2,333,900 2,452,336 657,423 Fund balances (deficits): Restricted Committed - - - Assigned - - Unassigned (7,068,976) (2,254,910) (1,844 875) 10,072,845 Total fund balances (deficits) (7,068,976) (2,254,910) (1,844,875) 10,072,845 Total liabilities and fund balances $ 3,053,247 $ 2,225,437 $ 607,461 $ 10,730,268 See accompanying independent auditor's report 88 Capital Projects Funds 89 Total Total Parks Road Law Other Capital Nonmajor Impact Impact Road Enforcement Capital Projects Governmental Districts Districts Construction Impact Fees Projects Funds Funds $ 12,775,880 $ 56,557,842 $ 50,299,507 $ 2,585,905 $ 2,672,231 $ 164,567,628 $ 330,804,948 13,899 64,463 60,119 2,933 3,119 187,613 353,251 7,443 27,783 822,480 208 976 918,855 2,218,939 2,074,739 6,134,030 - 89,256 - 8,879,940 10,396,032 _ _ _ - 34,503 34,503 134,074 - 529 941,593 940 979,655 1,912,468 459,165 96,863 2,766,780 - - 3,348,680 7,901,428 - 18,317,291 40,017,500 40,017,500 $ 15,331,126 $ 62,881,510 $ 54,890,479 $ 2,678,302 $ 2,711,769 $ 218,934,374 $ 412,055,931 391,564 2,083,431 1,221,516 - 478,074 5,110,269 10,378,706 _ - 39,631 15,386 55,017 717,107 - 56 564 - 9,738 2,212,746 _ 891,156 _ _ - 3,487 2,074,739 6,134,030 - 89,256 - 8,879,940 14,140,521 _ _ _ - 76,767 - 4,422 698,293 438,892 - 7,669 1,427,688 1,533,480 - 15,388,000 - 31,655,825 48,523,127 2,470,725 8,915,810 1,700,603 15,477,256 501,129 47,138,477 78,477,097 12,860,401 53,965,700 53,189,876 - 17,818 120,033,795 229,545,519 _ - 48,445,097 _ 2,192,822 75,729,817 79,555,933 _ _ - (12,798,954) - (23,967,715) (23,967,715) 12,860,401 53,965,700 53,189,876 (12,798,954) 2,210,640 171,795,897 333,578,834 $ 15,331,126 $ 62,881,510 $ 54,890,479 $ 2,678,302 $ 2,711,769 $ 218,934,374 $ 412,055,931 89 COLLIER COUNTY, FLORIDA 146 7 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Special Revenue Funds Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest Fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over(under)expenditures Other financing sources (uses): Bonds issued Premiums on bonds issued Payment to refundinging bond escrow Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficits) at beginning of year Fund balances (deficits) at end of year See accompanying Independent auditor's report - 5,989,841 2,610,902 - 4,139,377 6,786,365 - 768,196 279,635 18,292,554 - 10,746,659 _ - 2,026,788 120,360 _ 10,407,487 _ 113,955 487,350 Community 2,300 18,406,509 2,514,138 Road Redevelopment Unincorporated Community Revenues: Districts -- Agency Area MSTD Development Taxes Licenses, permits and Impact fees $ - $ 1,768,200 $ 32,224,934 $ Intergovernmental 359,900 2,361,101 624,200 204,429 10,103,056 Charges for services Fines and forfeitures 192,723 557 ,142 _ 2,394,672 2,082,657 Interest income 457,511 - 237,246 - Special assessments 13,575 25,668 135,309 43,913 Miscellaneous 198,538 376,949 323,607 75,793 Total revenues 3,125,837 2,727,959 35,520,197 12,305,419 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest Fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over(under)expenditures Other financing sources (uses): Bonds issued Premiums on bonds issued Payment to refundinging bond escrow Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficits) at beginning of year Fund balances (deficits) at end of year See accompanying Independent auditor's report - 5,989,841 2,610,902 - 4,139,377 6,786,365 - 768,196 279,635 18,292,554 - 10,746,659 _ - 2,026,788 120,360 _ 10,407,487 _ 113,955 487,350 150,110 2,300 18,406,509 2,514,138 32,322,030 1,679,202 (151280,672) 213,821 3,198,167 2,626,217 140,883 - 174,340 - 15,959,200 133,800 743,535 624,200 _ (361,900) (1,347,594) (5,088,830) (687,896) 15,738,183 (1,213,794) (4,170,955) (63,696) 457,511 (999,973) (972,788) 2,562,521 1,818,461 17,156,493 10,760,793 2,557,999 $ 2,275.972 $ 16,156,520 $ 9,78g 005 $ 5,120,520 90 Special Revenue Funds Water Management Grants and Fire 911 and Pollution Shared Improvement Control Lighting Enhancement Control Revenues Districts Districts Districts Fee $ 1,737,622 $ - $ 3,464,268 $ 2,738,506 $ 808,489 $ 1,959,030 690 - - - 147,575 14,634,092 - - _ 546,725 50,000 222,081 5,643 - 30,605 45,633 209,406 13,361 3,901 31,033 2,571,290 - - _ 968,402 1,351,659 4,272 2,135 - 5,034,507 15,698,127 5,247,414 2,761,782 814,525 1,990,063 - 850,060 - - " - 1,552,070 - 3,064,580 - 2,611,451 2,991,197 336,399 667,135 - - - 1,511,779 372,909 2,080,011 - 811,466 - - 4,417,074 - - - " - 2,587,763 - - 2,151 871,756 - _ - - 63,420 - - _ - - 14,500 - - 62,402 4,323,391 3,172,521 17,980 - - 4,565,378 14,441,817 6,791,423 3,160,480 811,466 2,611,451 469,129 1,256,310 (1,544,009) (398,698) 3,059 (621,388) 5,250 - - - - - 6,265 - 2,110 2,401 16,945 - 40,667 785,314 407,862 31,842 7,359 - (562,941) - (447,091) (95,497) (104,374) - (510,759) 785,314 (37,119) (61,254) (80,070) - (41,630) 2,041,624 (1,581,128) (459,952) (77,011) (621,388) 2,927,386 9,656,463 26,694,515 1,125,194 321,766 4,045,998 $ 1,885,756 $ 11,698,087 $ 25,113,387 $ 665,242 $ 244,755 $ 3,424,610 91 92 148 7 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Special Revenue Funds State Public Housing Records Tourist Initiative 800 MHZ Revenues: Modernization Development Partnership ICRP Fund Taxes $ - $ 13,883,740 $ _ $ _ Licenses, permits and impact fees Intergovernmental _ - Chargesforservices 1,179,454 781 - 461,327 Fines and forfeitures Interest Income 8,939 304,585 20,853 1,146 Special assessments _ Miscellaneous - 77,161 115,222 116,982 Total revenues 1,188,393 14,266,267 136,075 579,455 Expenditures: Current: General government 1,164,100 - Public safety - Physical environment - - 1,169,631 - 4,913,882 _ - Transportation _ Economic environment Human services - - 466,444 Culture and recreation - 7,822,221 _ Debt service: Principal Interest - Fiscal charges _ _ - Capital outlay 150,720 9,732 _ - 5,000 Total expenditures 1,314,820 12,745,835 466,444 1,174,631 Excess (deficiency) of revenues over (under) expenditures (126,427) 1,520,432 (330,369) (595,176) Other financing sources (uses): Bonds issued _ Premiums on bonds Issued Payment to refunding bond escrow _ _ Sale of capital assets _ Insurance proceeds - 18,943 _ Transfers in - 109,739 - 542,400 Transfers out (560,922) _ Total other financing sources (uses) - (432,240) - 542,400 Net change in fund balances (126,427) 1,088,192 (330,369) (52,776) Fund balances (deficits) at beginning of year 3,749,172 38,282,547 834,439 110,617 Fund balances (deficits) at end of year $ 3,622,745 $ 39,370,739 $ 504,070 $ 57,841 See accompanying Independent auditor's report 92 14 B 7q, Special Revenue Funds 93 GAC Land State Court Confiscated Sales, Roads Utility Conservation Impact Fee Administration Property and Canals Fee Collier Escrow $ _ $ _ $ - $ 212,881 $ . 5,984,413 $ - 144,530 - - 160,000 - - 1,145,980 34,602 - - - 2,367 5,618 11,465 5,037 184,130 7,187 41,751 - - - 22,817 - 1,334,628 40,220 11,465 377,918 6,191,360 7,187 932,604 - - - - " 1,438,749 62,000 - - _ _ - - 327,470 1,146,126 - _ - 24,404 - - - _ _ - 216,424 - 2,371,353 62,000 24,404 327,470 1,362,550 - (1,036,725) (21,780) (12,939) 50,448 4,828,810 7,187 1,214,413 - - - 1,443,829 - (5,121) (16,989) - - (8,584,051) - 1,209,292 (16,989) - - (7,140,222) - 172,567 (38,769) (12,939) 50,448 (2,311,412) 7,187 171,116 729,099 1,482,436 671,549 23,261,924 655,066 $ 343,683 $ 690,330 $ 1,469,497 $ 721,997 $ 20,950,512 $ 662,253 93 COLLIER 4 COUNTY, FLORIDA P COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest Fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over(under)expenditures Other financing sources (uses): Bonds issued Premiums on bonds issued Payment to refunding bond escrow Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficits) at beginning of year Fund balances (deficits) at end of year See accompanying independent auditor's report Special Revenue Funds Court _ - Court information Court University Facilities Technology Services Extension Fee 10,588 838,639 - 8,109,135 - 10,588 654,917 - 7,088 _ 62,305 (391,899) - 1,113,900 4,138 - 536 18,638 6,136 56,696 $ 19,835 _ 665,191 8,109,135 27,459 1,132,538 518,483 8,501,034 - 204,034 11,880 _ _ - - 16,871 _ 3,191 69,332 _ - 89,865 602,886 8,501,034 16,871 293,899 62,305 (391,899) 10,588 838,639 10,588 62,305 (391,899) 838,639 372,596 630,874 46,108 2,145,249 $ 434,901 $ 238,975 $ 56,696 $ 2,983,888 94 14B 7 Special Revenue Funds Debt Service Funds 95 other Total Pooled Special Special Gas Tax Capital Commercial Affordable Revenue Revenue Revenue Improvement Paper Housing Funds Funds Bonds Revenue Bonds Program $ - $ - $ 64,782,083 $ - $ - $ - 4,405 10,672,480 - - - - 86,581 25,338,484 - - - - 1,078,895 9,738,635 - - - - 164,633 2,696,361 - - - 4,646 34,097 1,165,786 30,288 2,679 1,130 - - 2,571,290 - - - 20,014 413,552 4,134,825 - - 24,660 1,782,163 121,099,944 30,288 2,679 1,130 - 153,390 20,924,448 - - - - 707,901 21,544,004 - - - - 11,446,911 - - - - 33,815,378 - - - - 7,030,666 - - - - 209,882 2,800,836 - - - - 7,807 19,135,826 - - _ - 63,420 7,185,000 9,760,000 - - 14,500 7,398,527 8,977,533 - _ - - 4,837 7,118 - 77,821 8,948,903 - - - - 1,156,801 125,724,892 14,588,364 18,744,651 - 24,660 625,362 (4,624,948) (14,558,076) (18,741,972) 1,130 - (321,738) - _ - 5,250 - - - - 361,887 - - - 42,231 22,086,391 14,664,600 19,073,539 14 - (23,291) (17,886,497) - (3,000) (181,800) - 18,940 4,567,031 14,664,600 18,748,801 (181,786) 24,660 644,302 (57,917) 106,524 6,829 (180,656) 603,842 4,667,616 155,479,318 3,836,681 102,923 206,865 $ 628,502 $ 5,311,918 $ 155,421,401 $ 3,943,205 $ 109,752 $ 26,209 95 COLLIER COUNTY, FLORIDA 14B 7 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Debt Service Funds Other financing sources (uses): Bonds issued Premiums on bonds Issued Payment to refunding bond escrow Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficits) at beginning of year Fund balances (deficits) at end of year See accompanying independent auditor's report _ 924 Stormwater Limited General (251,100) (3,985) (1,629,428) Improvement Obligation Bonds Community (3,061) Caribbean Assessment Conservation Redevelopment Revenues: Gardens Loan Bond Collier Taxable Note Taxes $ 9,919 $ $ 8,838,543 $ _ Licenses, permits and Impact fees - Intergovernmental _ Charges for services Fines and forfeitures _ - Interest income 3,482 1,567 10,320 11,684 Special assessments - 118,526 _ Miscellaneous Total revenues 13,401 120,093 8,848,863 11,684 Expenditures: Current: General government _ Public safety _ Physical environment Transportation _ Economic environment Human services Culture and recreation _ Debt service: Principal - 175,000 14,531,925 900,000 Interest - 4,731 1,089,070 447,594 Fiscal charges - 9,788 4,837 - Capital outlay _ Total expenditures - 189,519 15,625,832 1,347,594 Excess (deficiency) of revenues over (under) expenditures 13,401 (69,426) (6,776,969) (1,335,910) Other financing sources (uses): Bonds issued Premiums on bonds Issued Payment to refunding bond escrow Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficits) at beginning of year Fund balances (deficits) at end of year See accompanying independent auditor's report _ 924 8,350,447 1,347,594 (251,100) (3,985) (1,629,428) - (251,100) (3,061) 6,721,019 1,347,594 (237,699) (72,487) (55,950) 11,684 243,107 121,481 370,580 1,574,397 $ 5,408 $ 48,994 $ 314,630 $ 1,586,081 96 14B 7 Debt Service Funds Capital Projects Funds Forest Lakes Special State Total County -Wide Limited General Obligation Infrastructure Debt Service Capital Parks Obligation Bonds Revenue Bonds Bank Loan Funds Improvements Improvements $ 528,696 $ - $ - $ 9,377,158 $ - $ - - - - - - 529,381 - - - - - 50,000 1,171 555 -337 63,213 77,645 87,725 - - - 118,526 - - - - - - 3,011 3,052,002 529,867 555 337 9,558,897 80,656 3,719,108 - - - - 2,205,146 - - - - 654,272 - - - - - 28,374 - - - - - 334,548 350,000 1,545,000 1,875,930 36,322,855 106,617 - 205,775 2,596,696 164,070 20,883,996 6,123 - 2,652 405,080 - 434,312 - - - - - - 1,078,750 727,549 558,427 4,546,776 2,040,000 57,641,163 4,079,282 1,062,097 (28,560) (4,546,221) (2,039,663) (48,082,266) (3,998,626) 2,657,011 - 24,620,000 - 24,620,000 - - - 2,050,315 - 2,050,315 - - - (26,270,921) - (26,592,659) - - - - - - 212 - 5,718 4,375,588 2,040,000 49,858,424 9,527,100 34,140 (16,457) - - (2,085,770) - (392,087) (10,739) 4,774,982 2,040,000 47,850,310 9,527,312 (357,947) (39,299) 228,761 337 (231,956) 5,528,686 2,299,064 126,417 11,041 - 6,593,492 43,239,696 12,396,704 $ 87,118. $ 239,802 $ 337 $ 6,361,536 $ 48,768,382 $ 14,695,768 97 COLLIER COUNTY, FLORIDA 140 74 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAIOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Capital Projects Funds Other financing sources (uses): Bonds issued Premiums on bonds Issued Payment to refunding bond escrow Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficits) at beginning of year Fund balances (deficits) at end of year See accompanying independent auditor's report (1,195,427) _ (1,950,600) (694,801) Emergency (1,195,427) County -Wide Correctional Medical (1,483,199) Library Facilities Services Water Revenues: Impact Fees Impact Fees Impact Fees - Management Taxes $ $ - $ $ Licenses, permits and impact fees 397,088 545,142 146,219 117,221 Intergovernmental - Charges for services _ - - 1,000,000 Fines and forfeitures Interest Income Special assessments 23,539 _ 15,786 6,764 72,884 Miscellaneous ' - 169,848 Total revenues 420,627 560,928 152,983 1,359,968 Expenditures: Current: General government _ Public safety - 57,802 36,853 Physical environment " Transportation 1,145,309 Economic environment Human services - Culture and recreation 66,042 _ Debt service: " Principal _ Interest Fiscal charges " Capital outlay 642,357 _ 11,329 3,274,363 Total expenditures 708,399 57,802 48,182 4,419,672 Excess (deficiency) of revenues over (under) expenditures (287,772) 503,126 104,801 (3,059,704) Other financing sources (uses): Bonds issued Premiums on bonds Issued Payment to refunding bond escrow Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficits) at beginning of year Fund balances (deficits) at end of year See accompanying independent auditor's report (1,195,427) _ (1,950,600) (694,801) 5,684,153 (1,500,864) (1,195,427) (1,950,600) (694,801) 4,183,289 (1,483,199) (1,447,474) (590,000) 1,123,585 (5,585,777) (807,436) (1,254,875) 8,949,260 $ (7,068,976) $ (2,254,910) $ (1,844,875) $ 10,072,845 98 146 7 Capital Projects Funds 99 Total Total Parks Road Law Other Capita) Nonmajor Impact Impact Road Enforcement Capital Projects Governmental Districts Districts Construction Impact Fees Projects Funds Funds $ - $ - $ 12,791,958 $ -. $ - $ 12,791,958 $ 86,951,199 2,879,219 6,904,293 - 303,998 7,996 11,830,557 22,503,037 276,492 - 8,505,474 - - 9,781,966 35,120,450 - 60,274 - 14,700 124,974 9,863,609 - _ - - 2,696,361 93,330 471,842 527,493 26,020 31,352 1,434,380 2,663,379 _ _ - - 35,667 35,682 2,725,498 1,740 328,415 1,208,139 101,280 55,985 4,920,420 9,055,245 3,250,781 7,704,550 23,093,338 431,298 145,700 40,919,937 171,578,778 _ - - 119,940 2,325,086 23,249,534 139,685 390 889,002 22,433,006 _ - - 1,004,556 2,149,865 13,596,776 - 3,243,434 13,653,986 16,925,794 50,741,172 7,030,666 - - 2,800,836 323,466 - - 147,269 871,325 20,007,151 - 106,617 36,492,892 6,123 20,904,619 _ - _ _ - 434,312 936,408 10,094,614 8,206,738 - 959,344 25,931,452 34,880,355 1,259,874 13,338,048 21,860,724 139,685 2,231,499 49,205,264 232,571,319 1,990,907 (5,633,498) 1,232,614 291,613 (2,085,799) (8,285,327) (60,992,541) i _ _ - 24,620,000 - 2,050,315 - (26,592,659) _ - 5,250 _ 6,000 6,212 368,099 - - 8,698,100 1,681,590 25,625,083 97,569,898 (3,116,000) (1,054,450) (22,259,353) (2,615,000) (65,689) (34,844,271) (54,816,538) (3,116,000) (1,054,450) (13,561,253) (2,615,000) 1,621,901 (9,2121976) 43,204,365 (1,125,093) (6,687,948) (12,328,639) (2,323,387) (463,898) (17,498,303) (17,788,176) 13,985,494 60,653,648 65,518,515 (10,475,567) 2,674,538 189,294,200 351,367,010 $ 12,860,401 $ 53,965,700 $ 53,189,876 $ (12,798,954) $ 2,210,640 $ 171,795,897 $ 333,578,834 99 COLLIER COUNTY, FLORIDA 14B COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Government Facilities Road Districts Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ Licenses, permits and impact fees 453,000 896,578 443,578 438,000 359,900 (78,100) Intergovernmental - - - 2,172,600 2,361,101 188,501 Charges for services - - 123,500 192,723 69,223 Fines and forfeitures - - - - - - Interest income 25,000 52,181 27,181 25,000 13,780 (11,220) Special assessments - - - - - " Miscellaneous 21,085 21,085 3,000 198,538 195,538 Total revenues 478,000 969,844 491,844 2,762,100 3,126,042 363,942 Expenditures: Current: General government 396,596 413,819 (17,223) - - - Public safety 86,932 83,905 3,027 - Physical environment - - - - - Transportation - - 19,418,709 18,291,834 1,126,875 Economic environment - - - - - - Human services - Culture and recreation - Debt service 59,500 27,926 31,574 - - - Capital outlay 1,423,957 59,837 1,364,120 157,910 113,955 43,955 Total expenditures 1,966,985 5851,487 1,381,498 19,576,619 18,405,789 1,170,830 Excess (deficit) of revenues over (under) expenditures (1,488,985) 384,357 1,873,342 (16,814,519) (15,279,747) 1,534,772 Other financing sources (uses): Bonds issued - - - - Premiums on bonds issued - Payment to refunding bond escrow - - Sale of capital assets - - - - - Insurance proceeds - - - 46,000 140,883 94,883 Transfers in 3,019,800 3,019,800 - 16,100,147 16,100,147 - Transfers out (4,806,797) (4,806,797) - (502,847) (502,847) - Total other financing sources (uses) (1,786,997) (1,786,997) 15,643,300 15,738,183 94,883 Net change In fund balances (3,275,982) (1,402,640) 1,873,342 (1,171,219) 458,436 1,629,655 Fund balances at beginning of year 7,457,100 7,457,100 - 1,414,466 1,414,466 - Fund balances (deficits) at end of year $ 4,181,118 $ 6,054,460 $ 1,873,342 $ 243,247 $ 1,872,902 $ 1,629,655 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ (1,402,640) $ 458,436 Change in fairvalue of investments (350) (205) Advances budgeted as transfers (2,389,800) - Unbudgetedfunds - (720) Deferred revenues - Net change in fund balance, GAAP basis $ (3,792,790) $ 457,511 100 14B 7 Community Redevelopment Agency Unincorporated Area MSTD (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 1,768,200 $ 1,768,200 $ $ 33,878,600 $ 32,224,934 $ (1,653,666) _ _ 173,500 204,429 30,929 3,845,124 557,142 (3,287,982) 2,360,200 2,394,672 34,472 _ _ 272,500 237,246 (35,254) 15,000 25,831 10,831 50,000 136,004 86,004 350,000 376,948 26,948 208,800 323,607 114,807 5,978,324 2,728,121 (3,250,203) 36,943,600 35,520,892 (1,422,708) _ _ - 6,493,382 5,989,841 503,541 _ _ - 4,298,610 4,139,377 159,233 _ _ - 909,531 768,196 141,335 _ _ - 11,832,350 10,746,659 1,085,691 6,511,917 2,026,789 4,485,128 120,400 120,360 40 11,174,204 10,407,487 766,717 2,095,651 487,348 1,608,303 216,981 150,110 66,871 8,607,568 2,514,137 6,093,431 35,045,458 32,322,030 2,723,428 (2,629,244) 213,984 2,843,228 1,898,142 3,198,862 1,300,720 _ _ 75,604 174,340 98,736 133,800 133,800 - 695,100 798,635 103,535 (1,725,400) (1,347,594) 377,806 (5,477,950) (5,143,930) 334,020 (1,591,600) (1,213,794) 377,806 (4,707,246) (4,170,955) 536,291 (4,220,844) (999,810) 3,221,034 (2,809,104) (972,093) 1,837,011 5,090,944 5,090,944 - 7,562,915 7,562,915 $ 870,100 $ 4,091,134 $ 3,221,034 $ 1,753,811 $ 6,590,822 $ 1,837,011 $ (999,810) $ (972,093) (163) (695) $ (999,973) $ (972,788) 101 COLLIER COUNTY, FLORIDA 1 l) COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCER. 4T BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Community Development Water Management and (Budgetary Basis) Pollution Control (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 1,811,900 $ 1,737,622 $ (74,278) 7,762,000 10,103,056 2,341,056 200 690 490 - - - 158,500 147,575 (10,925) 2,223,000 2,082,657 (140,343) 522,300 546,725 24,425 21,000 44,295 23,295 36,500 30,781 (5,719) - - - 2,667,000 2,571,290 (95,710) 92,000 75,793 (16,207) - - - 774,200 774,200 - - 40,667 10,098,000 12,305,801 2,207,801 5,196,400 5,034,683 (161,717) 3,141,993 2,610,902 531,091 (382) (176) Advances budgeted as transfers - 7,424,457 6,786,365 638,092 - - - 428,100 279,635 148,465 3,659,574 2,991,197 668,377 - - - 1,677,300 1,511,779 165,521 26,500 2,300 24,200 156,100 62,402 93,698 Sale of capital assets - - - - 5,250 5,250 11,021,050 9,679,202 1,341,848 5,492,974 4,565,378 927,596 Excess (deficit) of revenues $ 2,312,903 $ (41,454) Change in fair value of investments (382) (176) Advances budgeted as transfers over (under) expenditures (923,050) 2,626,599 3,549,649 (296,574) 469,305 765,879 Other financing sources (uses): $ 2,562,521 $ (41,630) Bonds issued - - - - - - Premiums on bonds issued - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - 5,250 5,250 Insurance proceeds - - - - 6,265 6,265 Transfers in 774,200 774,200 - - 40,667 40,667 Transfers out (1,087,896) (1,087,896) (647,000) (562,941) 84,059 Total other financing sources (uses) (313,696) (313,696) - (647,000) (510,759) 136,241 Net change in fund balances (1,236,746) 2,312,903 3,549,649 (943,574) (41,454) 902,120 Fund balances at beginning of year 2,357,150 2,357,150 - 2,603,074 2,603,074 - Fund balances (deficits) at end of year $ 1,120,404 $ 4,670,053 $ 3,549,649 $ 1,659,500 $ 2,561,620 $ 902,120 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ 2,312,903 $ (41,454) Change in fair value of investments (382) (176) Advances budgeted as transfers - - Unbudgetedfunds 250,000 Deferred revenues Net change in fund balance, GAAP basis $ 2,562,521 $ (41,630) 102 76 E Grants and Shared Revenues Improvement Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ $ _ $ $ 3,656,000 $ 3,464,268 $ (191,732) 32,462,995 11,133,242 (21,329,753) - - _ 50,000 50,000 189,500 222,081 32,581 - 33,316 33,316 71,500 210,915 139,415 1,090,769 968,402 (122,367) 1,368,800 1,351,659 (17,141) 33,603,764 12,184,960 (21,418,804) 5,285,800 5,248,923 (36,877) 2,543,463 773,326 1,770,137 - - ' 3,251,999 338,196 450,729 336,399 2,801,270 1,797 - 573,281 - 667,136 (93,855) 562,169 372,909 189,260 2,120,336 2,080,011 40,325 24,666,551 4,417,074 20,249,477 - . 6,079,956 2,587,763 3,492,193 - - - 297,544 2,151 295,393 1,000,016 871,756 128,260 9,598,535 2,772,818 6,825,717 24,657,275 3,172,521 21,484,754 47,338,413 11,713,169 35,625,244 28,350,908 6,791,424 21,559,484 (13,734,649) 471,791 14,206,440 (23,065,108) (1,542,501) 21,522,607 _ _ - 2,110 2,110 1,801,449 873,984 (927,465) 373,100 407,862 34,762 ,(232,145) (88,670) 143,475 (470,150) (447,090) 23,060 1,569,304 785,314 (783,990) (97,050) (37,118) 59,932 (12,165,345) 1,257,105 13,422,450 (23,162,158) (1,579,619) 21,582,539 13,414,186 13,414,186 - 26,425,658 26,425,658 $ 1,248,841 $ 14,671,291 $ 13,422,450 $ 3,263,500 $ 24,846,039 $ 21,581,539 $ 1,257,105 $ (1,579,619) (327) (1,509) 784,846 $ 2,041,624 $ (1,581,128) 103 COLLIER COUNTY, FLORIDA B COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bonds issued Premiums on bonds issued Payment to refunding bond escrow Sale of capital assets Insurance proceeds Transfers in Transfers out Fire Control Districts (Budgetary Basis) Lighting Districts Budget Actual Variance Budget Actual Variance $ 2,908,200 $ 2,738,506 $ (169,694) $ 849,700 $ 808,489 $ (41,211) 8,500 5,642 (2,858) - - 14,700 13,418 (1,282) 2,200 3,901 1,701 1,900 4,272 2,372 - 2,135 2,135 2,933,300 2,761,838 (171,462) 851,900 814,525 (37,375) 3,345,927 3,142,500 203,427 - - - 879,200 811,466 67,734 22,000 17,980 4,020 14,200 14,200 3,367,927 3,160,480 207,447 893,400 811,466 81,934 (434,627) (398,642) 35,985 (41,500) 3,059 44,559 - 2,401 2,401 - 16,945 16,945 167,907 164,920 (2,987) - 7,375 7,375 (257,743) (228,575) 29,168 (116,400) (104,390) 12,010 Total other financing sources (uses) (89,836) (61,254) 281,582 (116,400) (80,070) 36,330 Net change in fund balances Fund balances at beginning of year (524,463) (459,896) 64,567 (157,900) (77,011) 80,889 1,107,527 1,107,527 - 288,300 288,300 Fund balances (deficits) at end of year $ 583,064 $ 647,631 $ 64,567 $ 130,400 $ 211,289 $ 80,889 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ (459,896) $ (77,011) Change In fair value of investments (57) Advances budgeted as transfers - Unbudgetedfunds Deferred revenues Net change in fund balance, GAAP basis $ (459,953) $ (77,011) 104 7i 5 14B -,t 911 Enhancement Fee (Budgetary Basis) Public Records Modernization Budget Actual Variance Budget Actual Variance $ 1,920,000 $ 1,959,030 $ 39,030 $ - $ - $ 600,000 1,179,454 579,454 58,000 31,253 (26,747) 61000 8,939 2,939 1,978,000 1,990,283 12,283 606,000 1,188,393 582,393 - - - 1,408,000 1,164,100 243,900 4,086,476 2,611,451 1,475,025 - - 15,000 15,000 876,500 150,720 725,780 i 4,101,476 2,6111,451 1,490,025 2,284,500 1,314,820 969,680 (2,123,476) (621,168) 1,502,308 (1,678,500) (126,427) 1,552,073 $ (621,168) $ (126,427) (220) $ (621,388) $ (126,427) 105 (126,427) 1,552,073 (2,123,476) (621,168) 1,502,308 (1,678,500) 3,432,976 3,432,976 - 2,565,258 2,565,258 $ 1,309,500 $ 2,811,808 $ 1,502,308 $ 886,758 $ 2,438,831 $ 1,552,073 $ (621,168) $ (126,427) (220) $ (621,388) $ (126,427) 105 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over(under)expenditures Other financing sources (uses): Bonds issued Premiums on bonds issued Payment to refunding bond escrow Sale of capital assets insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Tourist Development State Housing Initiativeship (Budgetary Basis) Partnership (Budgetary Basis) 14B '7 Budget Actual Variance Budget Actual Variance $ 13,112,541 $ 13,883,740 $ 771,199 $ - $ - $ 2,892,000 - (2,892,000) - - - - 781 781 - - 205,000 306,859 101,859 - 20,999 20,999 20,000 77,161 57,161 115,222 115,222 16,229,541 14,268,541 (1,961,000) 136,221 136,221 7,200,472 4,913,882 2,286,590 - - - _ (2,166,200) (2,105,722) 799,924 466,444 333,480 8,725,620 7,822,046 903,574 - - 11,092,828 9,732 11,023,096 - - 26,958,920 12,745,660 14,213,260 799,924 466,444 333,480 (10,729,379) 1,522,881 12,252,260 (799,924) (330,223) 469,701 - 18,943 18,943 1,544,800 1,654,539 109,739 (2,166,200) (2,105,722) 60,478 (621,400) (4321,240) 189,160 (11,350,779) 1,090,641 12,441,420 (799,924) (330,223) 469,701 Fund balances at beginning of year 28,855,252 28,855,252 799,924 799,924 Fund balances (deficits) at end of year $ 17,504,473 $ 29,945,893 $ 12,441,420 $ - $ 469,701 $ 469,701 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ 1,090,641 $ (330,223) Change in fair value of investments (2,274) (146) Advances budgeted as transfers - - Unbudgeted funds (175) - Deferred revenues Net change in fund balance, GAAP basis $ 1,088,192 106 14B 7 800 MHZ IRCP Fund State Court Administration (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 474,300 461,327 (12,973) 165,000 144,530 (20,470) - _ - 1,112,500 1,145,980 33,480 2,200 1,152 (1,048) 1,000 2,392 1,392 118,300 116,982 (1,318) - 41,751 41,751 594,800 579,461 (15,339) 1,278,500 1,334,653 56,153 - _ - 1,039,300 932,604 106,696 1,199,900 1,169,061 30,839 1,460,900 1,438,749 22,151 5,000 5,000 6,500 - 6,500 1,204,900 1,174,061 30,839 2,506,700 2,371,353 135,347 (610,100) (594,600) 15,500 (1,228,200) (1,036,700) 191,500 542,400 542,400 - 1,255,900 1,241,588 (14,312) _ (69,400) (32,296) 37,104 542,400 542,400 - 1,186,500 1,209,292 22,792 (67,700) (52,200) 15,500 (41,700) 172,592 214,292 97,300 97,300 115,300 115,300 45,100 $ 15,500 $ 73,600 $ 287,892 $ 214,292 $ (52,200) $ 172,592 (6) (25) (570) $ (52,776) $ 172,567 107 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Confiscated Property GAC Land Sales, (Budgetary Basis) Roads and Canals (Budgetary Basis) 148 7 Budget Actual Variance Budget Actual Variance 34,167 34,602 435 - - - 5,659 5,659 22,300 11,548 (10,752) 151,700 (151,700) 34,167 40,261 6,094 174,000 11,548 (162,452) 62,000 62,000 - 62,000 62,000 301,800 24,404 277,396 301,800 24,404 277,396 Excess (deficit) of revenues over(under)expenditures (27,833) (21,739) 6,094 (127,800) (12,856) 114,944 Other financing sources (uses): Bonds issued - - " Premiums on bonds issued - - - Payment to refunding bond escrow - - - " Sale of capital assets - - " Insurance proceeds - - " Transfersin - - " Transfers out (324,000) (16,989) 307,011 - - Total other financing sources (uses) (324,000) (16,989) 307,011 Net change in fund balances (351,833) (38,728) 313,105 (127,800) (12,856) 114,944 Fund balances at beginning of year 369,800 369,800 Z.. 1,378,900 1,378,900 - Fund balances (deficits) at end ofyear $ 17,967 $ 331,072 $ 313,105 $ 1,251,100 $ 1,366,044 $ 114,944 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ (38,728) $ (12,856) Change in fair value of investments (41) (83) Advances budgeted as transfers - - Unbudgetedfunds - Deferred revenues ' Net change in fund balance, GAAP basis $ (38,769) 108 Utility Fees Conservation Collier (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 240,000 $ 212,881 $ (27,119) $ 6,233,700 $ 5,984,413 $ (249,287) 130,000 160,000 30,000 6,000 (6,000) 1,000 5,079 4,079 275,700 185,330 (90,370) 7,500 22,817 15,317 371,000 377,960 6,960 6,522,900 6,192,560 (330,340) 369,400 327,470 41,930 3,257,236 1,146,126 2,111,110 438,833 216,424 222,409 369,400 327,470 41,930 3,696,069 1,362,550 2,333,519 1,600 50,490 48,890 2,826,831 4,830,010 2,003,179 5,884,900 5,637,729 (247,171) (13,273,600) (12,777,951) 495,649 (7,388,700) (7,140,222) 248,478 1,600 50,490 48,890 (4,561,869) (2,310,212) 2,251,657 600,300 600,300 - 24,120,469 24,120,469 - $ 601,900 $ 650,790 $ 48,890 $ 19,558,600 $ 21,810,257 $ 2,251,657 $ 50,490 $ (2,310,212) (42) (1,200) $ 50,448 $ (2,311,412] 109 G COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 1 1 4 BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Court Information Technology Fee (Budgetary Basis) Court Services Budget Actual Variance Budget Actual Variance Revenues: (137,300) 62,340 199,640 - (391,899) (391,899) Fund balances at beginning of year Taxes $ $ - $ $ - $ - $ Licenses, permits and impact fees Fund balances (deficits) at end of year $ - 268,540 $ 199,640 $ - Intergovernmental - 8,714,858 8,109,135 (605,723) Charges for services 600,000 654,917 54,917 - - Fines and forfeitures - - Interestincome - 4,173 4,173 - - - Special assessments - - - - - - Miscellaneous 6,136 6,136 Total revenues 600,000 665,226 65,226 8,714,858 8,109,135 (605,723) Expenditures: Current: General government 597,294 518,483 78,811 8,714,858 8,501,034 213,824 Public safety 14,400 11,880 2,520 - - - Physical environment - - - - - Transportation - Economic environment - - - - Human services 5,000 3,191 1,809 - Culture and recreation - - - - - Debt service - - - - - - Capital outlay 120,606 69,332 51,274 - - Total expenditures 737,300 602,886 134,414 8,714,858 8,501,034 213,824 Excess (deficit) of revenues over(under)expenditures _ (137,300) 62,340 199,640 - (391,899) (391,899) Other financing sources (uses): Bonds issued - - - - Premiums on bonds issued - - Payment to refunding bond escrow - - Sale of capital assets - - Insurance proceeds - - Transfers in - - - - - Transfers out - - - - Total other financing sources (uses) Net change in fund balances (137,300) 62,340 199,640 - (391,899) (391,899) Fund balances at beginning of year 206,200 206,200 - - Fund balances (deficits) at end of year $ 68,900 $ 268,540 $ 199,640 $ _L __L391,899) $ (391,899) See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ 62,340 $ (391,899) Change in fair value of investments (35) - Advances budgeted as transfers - Unbudgetedfunds Deferred revenues Net change in fund balance, GAAP basis $ 62,305 $ (391,899) 110 71 14B 7" Court facilities fee University Extension (Budgetary Basis) Budget Actual Variance Budget Actual Variance 7,088 7,088 - - - 1,088,000 1,113,900 25,900 536 536 9,000 18,797 9,797 10,000 19,835 9,835 - 10,000 27,459 17,459 1,097,000 1,132,697 35,697 155,243 204,034 (48,791) 20,600 16,871 3,729 - 1,761,079 89,865 1,671,214 20,600 16,871 3,729 1,916,322 293,899 1,622,423 (10,600) i0,588 21,188 (819,322) 838,798 1,658,120 (10,600) 10,588 21,188 (819,322) 838,798 1,658,120 39,300 39,300 2,086,522 2,086,522 - 49,888 $ 21,188 $ 1,267,200 $ 2,925,320 $ 1,658,120 $ 10,588 $ 838,798 (159) $ 10,588 $ 838,639 111 COLLIER COUNTY, FLORIDA 148 COMBINING SCHEDULE OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES U BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Other Special Gas Tax Revenue Bonds Revenue Funds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: $ - $ - $ 14,664,600 $ $ $ Taxes licenses, permits and impact fees 12,000 4,405 (7,595) 383,011 1,229,484 - 106,749 21,749 Intergovernmental 20,000 86,581 66,581 - Chargesforservices 392,500 475,032 82,532 - $ 3,965,400 $ 3,987,149 $ 21,749 Fines and forfeitures 140,400 164,633 24,233 - - Interest Income 15,100 29,985 14,885 18,000 30,513 12,513 Special assessments - - - - - Miscellaneous 77,500 342,242 264,742 - - Total revenues 657,500 1,102,878 445,378 18,000 30,513 12,513 Expenditures: 644,302 $ 106,524 Current: General government 202,700 153,390 49,310 - - - Public safety 717,000 301,692 415,308 - Physical environment - - - " Transportation Economic environment - - - - Human services 366,422 209,882 156,540 Culture and recreation 30,800 7,807 22,993 - - - Debt service - - - 14,597,600 14,588,364 9,236 Capital outlay 236,861 66,036 170,825 - - Total expenditures 1,553,783 738,807 814,976 14,597,600 14,588,364 9,236 Excess (deficit) of revenues over (under) expenditures (896,283) 364,071 1,260,354 (14,579,600) (14,557,851) 21,749 Other financing sources (uses): Bonds Issued " Premiums on bonds issued Payment to refunding bond escrow Sale of capital assets " Insurance proceeds - - - - Transfers in 49,810 42,231 (7,579) 14,664,600 14,664,600 Transfers out - (23,291) (23,291) Total other financing sources (uses) 49,810 18,940 (30,870) 14,664,600 14,664,600 Net change in fund balances (846,473) 383,011 1,229,484 85,000 106,749 21,749 Fund balances at beginning of year 2,417,808 2,417,808 3,880,400 3,880,400 Fund balances (deficits) at end of year $ 1,571,335 $ 2,800,819 $ 1,229,484 $ 3,965,400 $ 3,987,149 $ 21,749 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ 383,011 $ 106,749 Change in fair value of investments (200) (225) Advances budgeted as transfers - Unbudgeted funds 261,491 Deferred revenues - Net change in fund balance, GAAP basis $ 644,302 $ 106,524 112 M 14B 7 Capital Improvement Pooled Commercial Revenue Bonds (Budgetary Basis) Paper Program Budget Actual Variance Budget Actual Variance - 3,572 3,572 1,130 1,130 - 1,130 1,130 3,572 3,572 18,754,020 18,744,651 9,369 18,754,020 18,744,651 9,369 (18,754,020) (18,741,079) 12,941 1,130 1,130 (321,800) (321,738) 62 19,073,539 19,073,539 - 14 14 (3,859,476) (3,856,476) 3,000 (181,800) (181,800) 14,892,263 14,895,325 3,062 (181,800) (181,786) 14 (3,861,757) (3,845,754) 16,003 (181,800) (180,656) 1,144 19,579,081 19,579,081 - 181,800 181,800 $ 15,717,324 $ 15,733,327 $ 16,003 $ - $ 1,144 $ 1,144 $ (3,845,754) $ (180,656) (893) 3,853,476 - $ 6,829 $ (180,656) 113 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES I A B 74 BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Caribbean Gardens Loan Stormwater Improvement Assessment Bond (Budgetary Basis) Budeet Actual Variance Budget Actual Variance Revenues: Taxes $ 40,000 $ 9,919 $ (30,081) $ - $ $ Licenses, permits and impact fees - - - - Intergovernmental - - - Chargesforservices - - - Fines and forfeitures - - - - - Interest income 2,000 3,482 1,482 - 1,569 1,569 Special assessments - - - 90,000 118,526 28,526 Miscellaneous - - - Total revenues 42,000 13,401 (28,599) 90,000 120,095 30,095 Expenditures: Current: General government - - - Public safety - - - - - - Physical environment - - - - - - Transportation - - - - - Economic environment - - - - - - Human services - - - - - Culture and recreation - - - - - Debt service 3,000 - 3,000 194,300 189,519 4,781 Capital outlay - - - Total expenditures 3,000 - 3,000 194,300 189,519 4,781 Excess (deficit) of revenues over (under) expenditures 39,000 13,401 (25,599) (104,300) (69,424) 34,876 Other financing sources (uses): Bonds Issued Premiums on bonds issued - - - - ' Payment to refunding bond escrow - - - - - Sale of capital assets - - - - Insurance proceeds - - - - - Transfers in - - - 30,000 924 (29,076) Transfers out (267,900) (251,100) 16,800 (5,500) (3,985) 11515 Total other financing sources (uses) (267,900) (251,100) 16,800 24,500 (3,061) (27,561) Net change in fund balances (228,900) (237,699) (8,799) (79,800) (72,485) 7,315 Fund balances at beginning of year 231,000 231,000 88,900 88,900 - Fund balances (deficits) at end of year $ 2,100 $ (6,699) $ (8,799) $ 9,100 $ 16,415 $ 7,315 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ (237,699) $ (72,485) Change in fair value of investments (2) Advances budgeted as transfers - Unbudgetedfunds - - Deferred revenues - Net change in fund balance, GAAP basis $ (237,699) $ (72487) 114 148 7 Limited General Obligation Bonds, Community Redevelopment Conservation Collier (Budgetary Basis) Taxable Note (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 9,226,800 $ 8,838,543 $ (388,257) $ $ $ - 4,400 10,327 5,927 6,000 11,774 5,774 9,231,200 8,848,870 (382,330) 6,000 11,774 5,774 15,628,500 15,625,832 2,668 1,732,300 1,347,594 384,706 15,628,500 15,625,832 2,668 1,732,300 1,347,594 384,706 (6,397,300) (6,776,962) (379,662) (1,726,300) (1,335,820) 390,480 8,676,800 8,350,447 (326,353) 1,725,400 1,347,594 (377,806) (1,958,500) (1,629,428) 329,072 - - 6,718,300 6,721,019 2,719 1,725,400 1,347,594 (377,806) 321,000 (55,943) (376,943) (900) 11,774 12,674 140,400. 140,400 - 1,560,900 1,560,900 $ 461,400 $ 84,457 $ (376,943) $ 1,560,000 $ 1,572,674 $ 12,674 $ (55,943) $ 11,774 (7) (90) $ (55,950) $ 11,684 115 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 4 BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Forest Lakes Limited General Special Obligation Obligation Bonds (Budgetary Basis) Revenue Bonds (Budgetary Basis) See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ (39,294) Change in fair value of investments (5) Advances budgeted as transfers Unbudgeted funds Deferred revenues Net change in fund balance, GAAP basis $ (39,299) 116 $ 228,775 (14) $ 228,761 Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 546,200 $ 528,696 $ (17,504) $ - $ - $ - Licenses, permits and impactfees - - Intergovernmental - - ' Charges for services - " Fines and forfeitures Interest income - 20,000 1,176 " (18,824) 569 569 Special assessments - - Miscellaneous - - " Total revenues 566,200 529,872 (36,328) - 569 569 Expenditures: Current: General government - - Public safety - Physical environment - ' Transportation - " Economic environment - - Human services - " Culture and recreation Debt service - 560,300 558,427 - 1,873 " 4,606,288 4,546,776 59,512 Capital outlay - Total expenditures 560,300 558,427 1,873 4,606,288 4,546,776 59,512 Excess (deficit) of revenues over(under)expenditures 5,900 (28,555) (34,455) (4,606,288) (4,546,207) 60,081 Other financing sources (uses): Bonds issued - 24,620,000 24,620,000 - Premiums on bonds issued 2,050,400 2,050,315 (85) Payment to refunding bond escrow (26,270,900) (26,270,921) (21) Sale of capital assets - Insurance proceeds Transfers in - - 5,718 5,718 4,378,588 4,375,588 (3,000) Transfers out (19,700) (16,457) 3,243 - - Total other financing sources (uses) (19,700) (10,739) 8,961 4,778,088 4,774,982 (3,106) Net change in fund balances (13,800) (39,294) (25,494) 171,800 228,775 56,975 Fund balances at beginning of year 87,400 87,400 - Fund balances (deficits) at end of year $ 73,600 $ 48,106 $ (25,494) $ 171,800 $ 228,775 $ 56,975 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ (39,294) Change in fair value of investments (5) Advances budgeted as transfers Unbudgeted funds Deferred revenues Net change in fund balance, GAAP basis $ (39,299) 116 $ 228,775 (14) $ 228,761 148 TI State Infrastructure County-Wide Capital Bank Loan Improvements (Budgetary Basis) Budget Actual Variance Budget Actual Variance 337 337 78,241 78,241 3,011 3,011 337 337 - 81,252 81,252 - 2,694,258 2,317,886 376,372 _ 702,697 654,272 48,425 327 - 327 _ 28,374 28,374 - 2,044,600 2,040,000 4,600 - 6,257,594 - 1,078,750 - 5,178,844 2,044,600 2,040,000 4,600 9,683,250 4,079,282 5,603,968 (2,044,600) (2,039,663) 4,937 (9,683,250) (3,998,030) 5,685,220 _ _ 212 212 2,044,600 2,040,000 (4,600) 9,527,100 9,527,100 - (4,199,900) (4,199,900) - 2,044,600 2,040,000 (4,600) 5,327,200 5,327,412 212 - 337 337 (4,356,050) 1,329,382 5,685,432 181,800 181,800 - 8,669,899 8,669,899 - $ 181,800 $ 182,137 $ 337 $ 4,313,849 $ 9,999,281 $ 5,685,432 $ 337 $ 1,329,382 (596) 4,199,900 $ 337 $ 5,528,686 117 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 14B BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Parks Improvements County-Wide Library (Budgetary Basis) Impact Fees (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: 14,326,446 1,062,097 13,264,349 Taxes $ - $ - $ - $ - $ - $ - Licenses, permits and impact fees 422,200 529,381 107,181 320,000 397,088 77,088 Intergovernmental - - - - - - Charges for services 300,000 50,000 (250,000) - Fines and forfeitures - - - - - - Interest income 80,000 88,495 8,495 9,000 23,689 14,689 Special assessments - - - - - " Miscellaneous 3,000,000 3,052,002 52,002 - - Total revenues 3,802,200 3,719,878 (82,322) 329,000 420,777 91,777 Expenditures: Current: General government - - - Public safety Physical environment - - Transportation Economic environment Human services - - - - " Culture and recreation 783,974 334,548 449,426 139,915 66,042 73,873 Debt service - - - - - Capital outlay 13,542,472 727,549 12,814,923 1,429,912 642,357 787,555 Total expenditures 14,326,446 1,062,097 13,264,349 1,569,827 708,399 861,428 Advances budgeted as transfers (250,000) - Unbudgeted funds Excess (deficit) of revenues Deferred revenues Net change in fund balance, GAAP basis $ 2,299,064 over(under)expenditures (10,524,246) 2,657,781 13,182,027 (1,240,827) (287,622) 953,205 Other financing sources (uses): Bonds issued - - - " Premiums on bonds issued - Paymentto refunding bond escrow - - Sale of capital assets - - Insurance proceeds - - - - Transfers in 250,000 284,140 34,140 - - Transfers out (399,500) (392,087) 7,413 (1,195,427) (1,195,427) - Total other financing sources (uses) (149,500) (107,947) 41,553 (1,195,427) (1,195,427) - Net change in fund balances (10,673,746) 2,549,834 13,223,580 (2,436,254) (1,483,049) 953,205 Fund balances at beginning of year 10,852,544 10,852,544 3,986,488 3,986,488 - Fund balances (deficits) at end of year $ 178,798 $ 13,402,378 $ 13,223,580 $ 1,550,234 $ 2,503,439 $ 953,205 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ 2,549,834 $ (1,483,049) Change in fair value of investments (770) (150) Advances budgeted as transfers (250,000) - Unbudgeted funds ' Deferred revenues Net change in fund balance, GAAP basis $ 2,299,064 118 14B 7 Correctional Facilities Emergency Medical Services Impact Fees (Budgetary Basis) Impact Fees (Budgetary Basis) Budget Actual Variance Budget Actual Variance 152,000 545,142 393,142 80,000 146,219 66,219 9,000 15,913 6,913 8,100 6,790 (1,310) 88,100 153,009 64,909 161,000 561,055 400,055 153,128 57,802 95,326 116,081 36,853 79,228 95,138 95,138 15,007 11,329 3,678 248,266 57,802 190,464 131,088 48,182 82,906 (87,266) 503,253 590,519 (42,988) 104,827 147,815 1,810,100 1,810,100 - - (1,950,600) (1,950,600) (694,801) (694,801) (140,500) (140,500) (694,801) (694,801) - (227,766) 362,753 590,519 (737,789) (589,974) 147,815 1,792,937 1,792,937 - 1,040,688 1,040,688 $ 1,565,171 $ 2,155,690 $ 590,519 $ 302,899 $ 450,714 $ 147,815 $ 362,753 $ (589,974) (127) (26) (1,810,100) - $ (1,447,474) $ (590,000) 119 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) 14B 7 MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over(under)expenditures Water Management Parks Impact Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 2,911,774 1,145,309 1,766,465 - - - 408,204 323,466 84,738 12,003,123 3,274,363 8,728,760 4,296,452 936,408 3,360,044 14,914,897 4,419,672 10,495,225 4,704,656 1,259,874 3,444,782 (13,565,750) (3,059,103) 10,506,647 (2,891,256) 1,991,630 4,882,886 Other financing sources (uses): Bonds issued - - Premiums on bonds Issued - - - Payment to refunding bond escrow - - - - - Sale of capital assets - - - - - Insurance proceeds - - - - Transfersin 5,681,700 5,684,153 2,453 - Transfers out (1,662,200) (1,500,864) 161,336 (3,116,000) (3,116,000) - Total other financing sources (uses) 4,019,500 4,183,289 163,789 (3,116,000) (3,116,000) - Net change in fund balances (9,546,250) 1,124,186 10,670,436 (6,007,256) (1,124,370) 4,882,886 Fund balances at beginning of year 9,611,650 9,611,650 - 13,784,551 13,784,551 Fund balances (deficits) at end of year $ 65,400 $ 10,735,836 $ 10,670,436 $ 7,777,295 $ 12,660,181 $ 4,882,886 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ 1,124,186 $ (1,124,370) Change in fair value of investments (601) (723) Advances budgeted as transfers - 121,600 117,221 (4,379) 1,725,000 2,879,219 1,154,219 1,000,000 ].,000,000 - - 276,492 276,492 57,700 73,485 15,785 88,400 94,053 5,653 - 15 15 - - - 169,847 169,848 1 - 1,740 1,740 1,349,147 1,360,569 11,422 1,813,400 3,251,504 1,438,104 2,911,774 1,145,309 1,766,465 - - - 408,204 323,466 84,738 12,003,123 3,274,363 8,728,760 4,296,452 936,408 3,360,044 14,914,897 4,419,672 10,495,225 4,704,656 1,259,874 3,444,782 (13,565,750) (3,059,103) 10,506,647 (2,891,256) 1,991,630 4,882,886 Other financing sources (uses): Bonds issued - - Premiums on bonds Issued - - - Payment to refunding bond escrow - - - - - Sale of capital assets - - - - - Insurance proceeds - - - - Transfersin 5,681,700 5,684,153 2,453 - Transfers out (1,662,200) (1,500,864) 161,336 (3,116,000) (3,116,000) - Total other financing sources (uses) 4,019,500 4,183,289 163,789 (3,116,000) (3,116,000) - Net change in fund balances (9,546,250) 1,124,186 10,670,436 (6,007,256) (1,124,370) 4,882,886 Fund balances at beginning of year 9,611,650 9,611,650 - 13,784,551 13,784,551 Fund balances (deficits) at end of year $ 65,400 $ 10,735,836 $ 10,670,436 $ 7,777,295 $ 12,660,181 $ 4,882,886 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ 1,124,186 $ (1,124,370) Change in fair value of investments (601) (723) Advances budgeted as transfers - - Unbudgetedfunds Deferred revenues Net change in fund balance, GAAP basis $ 1,123,585 $ (1,125,093) 120 14B 7 Road Impact Districts Road Construction (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ _ $ 12,543,600 $ 12,791,958 $ 248,358 10,830,000 6,904,293 (3,925,707) - 10,988,500 - 8,505,474 (2,483,026) 46,714 60,274 13,560 633,500 475,086 (158,414) 681,048 530,376 (150,672) 328,415 328,415 787,321 1,208,139 420,818 11,463,500 7,707,794 (3,755,706) 25,047,183 23,096,221 (1,950,962) 9,169,412 3,243,434 5,925,978 10,795,913 13,450,975 (2,655,062) 51,511,289 10,094,614 41,416,675 60,493,352 8,206,738 52,286,614 60,680,701 13,338,048 47,342,653 71,289,265 21,657,713 49,631,552 (49,217,201) (5,630,254) 43,586,947 (46,242,082) 1,438,508 47,680,590 _ 16,998,100 8,698,100 (8,300,000) (1,054,450) (1,054,450) _ (23,912,452) (22,259,353) 1,653,099 (1,054,450) (1,054,450) - (6,914,352) (13,561,253) (6,646,901) (50,271,651) (6,684,704) 43,586,947 (53,156,434) (12,122,745) 41,033,689 59,120,350 59,120,350 - 68,203,825 68,203,825 - $ 8,848,699 $ 52,435,646 $ 43,586,947 $ 15,047,391 $ 56,081,080 $ 41,0331689 $ (6,684,704) $ (12,122,745) (3,244) (2,883) (203,011) $ (6,687,948) $ (12,328,639) 121 COLLIER COUNTY, FLORIDA 14B COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Law Enforcement Impact Fees Other Capital Projects (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses, permits and impact fees 175,000 303,998 128,998 2,000 7,996 5,996 Intergovernmental - - - - - Charges for services - 14,700 14,700 Fines and forfeitures - - - - Interest income 9,000 26,158 17,158 13,100 31,516 18,416 Special assessments - - - 35,000 35,667 667 Miscellaneous 101,280 101,280 5,984 55,985 50,001 Total revenues 184,000 431,436 247,436 56,084 145,864 89,780 Expenditures: Current: General government - - - 952,442 119,940 832,502 Public safety 189,929 139,685 50,244 2,942 390 2,552 Physical environment - - 1,318,019 1,004,556 313,463 Transportation - - - Economic environment - Human services - ' Culture and recreation - 155,434 147,269 8,165 Debt service - - - - " Capital outlay 72,036 72,036 1,509,763 959,344 550,419 Total expenditures 261,965 139,685 122,280 3,938,600 2,231,499 1,707,101 Excess (deficit) of revenues over (under) expenditures (77,965) 291,751 369,716 (3,882,516) (2,085,635) 1,796,881 Other financing sources (uses): Bonds issued - - - ' Premiums on bonds issued - - Payment to refunding bond escrow - - - - Sale of capital assets - - - " Insurance proceeds - - 6,000 6,000 - Transfers in 1,700,000 1,700,000 1,680,650 1,681,590 940 Transfers out (2,615,000) (2,615,000) (96,800) (65,689) 31,111 Total other financing sources (uses) (915,000) (915,000) 1,589,850 1,621,901 32,051 Net change in fund balances (992,965) (623,249) 369,716 (2,292,666) (463,734) 1,828,932 Fund balances at beginning of year 3,053,566 31053,566 - 2,711,668 2,711,668 Fund balances (deficits) at end of year $ 1,060,601 $ 2,430,317 $ 369,716 $ 419,002 $ 2,247,934 $ 1,828,932 See accompanying independent auditors' report. Reconciliation: Net change in fund balance, budgetary basis $ (623,249) $ (463,734) Change in fair value of investments (138) (164) Advances budgeted as transfers - " Unbudgeted funds (1,700,000) - Deferred revenues - Net change in fund balance, GAAP basis $ (2,323,387) $ (463,898) 122 7 148 7 Nonmajor Enterprise Funds EMERGENCY MEDICAL SERVICES — To account for the provision of emergency ambulance and paramedical services to users throughout the County. GOODLAND WATER — To account for the provision of potable water services to residents of Goodland. AIRPORT AUTHORITY — To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT — To account for the provision of public transportation throughout the County. COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2011 1,4B 7°' Noncurrent assets: 47,814 4,723 1,984,159 856,578 Capital assets: Total 262,004 Emergency Land and nondepreciable capital assets - - 7,527,168 Collier Nonmajor Depreciable capital assets, net Medical Goodland Airport Area Enterprise 14,397,046 Services Water Authority Transit Funds ASSETS Compensated absences 477,728 - 46,647 7,601 531,976 Current assets: 212,246 - - - 212,246 Liabilities payable from restricted assets: Cash, cash equivalents and investments $ 1,136,357 $ 278,583 $ 1,501,284 $ 1,238 $ 2,917,462 Receivables: 66,564 66,564 Retainage payable - - 249,906 Trade, net 3,148,747 14,630 16,405 160 3,179,942 Interest 2,512 358 1,962 650 5,482 Unbilled revenue 177,369 8,690 - - 186,059 Due from other funds 14 - - 12,044 12,058 Due from other governments 893 - - - 893 Inventory 15,764 - 135,019 - 150,783 Restricted assets: Total liabilities 1,833,407 4,723 2,433,432 1,932,568 6,204,130 Cash, cash equivalents and investments 76,993 - 151,984 69,144 298,121 Due from other governments - - 2,261,098 2,509,820 4,770,918 Total current assets 4,558,649 302,261 4,067,752 2,593,056 11,521,718 Noncurrent assets: 47,814 4,723 1,984,159 856,578 Capital assets: Wages payable 262,004 - 15,578 Land and nondepreciable capital assets - - 7,527,168 6,213,807 13,740,975 Depreciable capital assets, net 3,465,772 793,276 11,357,021 8,183,239 23,799,308 Total noncurrent assets 3,465,772 793,276 18,884,189 14,397,046 37,540,283 Total assets 8,024,421 1,095,537 22,951,941 16,990,102 49,062,001 LIABILITIES Current liabilities: Accounts payable 47,814 4,723 1,984,159 856,578 2,893,274 Wages payable 262,004 - 15,578 2,820 280,402 Due to other funds - - 47 941,592 941,639 Due to other governments - - 1,888 54,155 56,043 Due to individuals 377,316 - - - 377,316 Compensated absences 477,728 - 46,647 7,601 531,976 Capital lease obligations 212,246 - - - 212,246 Liabilities payable from restricted assets: Accounts payable - - - 66,564 66,564 Retainage payable - - 249,906 - 249,906 Refundable deposits - - 18,231 - 18,231 Unearned revenue 76,993 - 96,985 - 173,978 Total current liabilities 1,454,101 4,723 2,413,441 1,929,310 5,801,575 Noncurrent liabilities: Compensated absences 204,741 - 19,991 3,258 227,990 Capital lease obligations 174,565 - - - 174,565 Total noncurrent liabilities 379,306 - 19,991 3,258 402,555 Total liabilities 1,833,407 4,723 2,433,432 1,932,568 6,204,130 NET ASSETS Invested in capital assets, net of related debt 3,078,961 793,276 18,884,189 14,397,046 37,153,472 Unrestricted 3,112,053 297,538 1,634,320 660,488 5,704,399 Total net assets $ 6,191,014 $ 1,090,814 $ 20,518,509 _L 15,057,534 $ 42,857,871 See accompanying independent auditors' report. 124 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Operating expenses: Personal services 18,391,128 - 1,120,192 .101,617 19,612,937 Total 3,369,934 Emergency 2,473,405 8,669,199 14,951,818 Collier Nonma)or 56,329 Medical Goodiand Airport Area Enterprise 4,442,202 Services Water Authority Transit Funds Operating revenues: $ 8,959,199 $ 404,322 $ 2,918,202 $ 1,260,770 $ 13,542,493 Charges for services 20,236 1,575 19,945 29,565 71,321 Miscellaneous 1,258,767 17,049,271 13,560,199 40,170,101 Net assets - ending Total operating revenues 8,979,435 405,897 2,938,147 1,290,335 13,613,814 Operating expenses: Personal services 18,391,128 - 1,120,192 .101,617 19,612,937 Operating 3,369,934 439,280 2,473,405 8,669,199 14,951,818 Depreciation 737,284 56,329 848,605 1,172,057 2,814,275 Total operating expenses 22,498,346 495,609 4,442,202 9,942,873 37,379,030 Operating loss (13,518,911) (89,712) (1,504,055) (8,652,538) (23,765,216) Non - operating revenues (expenses): (13,426,766) (85,753) 4,322,765 4,357,791 Operating grants and contributions 35,026 24,067 - 2,759 16,067 3,597 46,490 Interest income Insurance reimbursement 62,347 1,200 2,827 2,088 68,462 (23,257) Interest expense Loss on disposal of capital assets (22,243) (7,052) - (1,014) - (4,136) - - (11,188) Total non - operating revenues (expenses) 92,145 3,959 13,744 4,328,450 1,438,298 Loss before contributions and transfers (13,426,766) (85,753) (1,490,311) (4,324,088) (1913261918) Capital grants and contributions 2,816 - 4,432,549 527,000 1,389,507 4,431,916 5,824,872 16,275,016 Transfers in 11,316,100 (3,000) (82,200) - - (85,200) Transfers out Total transfers and contributions 11,315,916 (82,200) 4,959,549 5,821,423 22,014,688 Changes in net assets (2,110,850) (1671953) 3,469,238 1,497,335 2,687,770 Net assets - beginning 8,301,864 1,258,767 17,049,271 13,560,199 40,170,101 Net assets - ending $ 6,191,014 $ 1,090,814 $ 20,518,509 $ 15,057,534 $ 42,857,871 See accompanying independent auditors' report. 125 148 7 COLLIER COUNTY, FLORIDA 14 B COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Total Emergency Collier Nonmajor Medical Goodland Airport Area Enterprise Services Water Authority Transit Funds Cash flows from operating activities: Cash received for services $ 9,732,524 $ 417,125 $ 2,944,674 $ 1,282,660 $ 14,376,983 Cash payments for goods and services (1,987,816) (304,782) (2,132,103) (6,584,112) (11,008,813) Cash payments to employees (19,056,692) - (1,155,452) (102,573) (20,314,717) Cash payments for interfund services (1,433,050) (131,578) (385,008) (2,139,856) (4,089,492) Cash payments on refundable deposits - - (72) - (72) Net cash provided by (used for) operating activities (12,745,034) (19,235) (727,961) (7,543,881) (21,036,111) Cash flows from non - capital financing activities: 3,215,583 - - 58 (23,200) Cash received from operating grants 40,265 - - 2,812,247 2,852,512 Cash transfers from other funds 11,316,100 - 883,236 9,344,980 21,544,316 Cash transfers to other funds (3,000) (82,200) (356,236) (4,199,660) (4,641,096) Net cash provided by (used for) non - capital - (6,233) - (6,233) 773,877 70,477 financing activities 11,353,365 (82,200) 527,000 7,957,567 19,755,732 Cash flows from capital and related financing activities: Receipts from insurance reimbursements Proceeds from disposal of capital assets Proceeds from capital grants Payments for capital acquisitions Principal payments on leases Interest and fiscal agent fees paid Net cash used for capital and related financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Net decrease in cash, cash equivalents and investments 62,347 1,200 832 2,088 66,467 - - 2,857 11,776 14,633 - - 2,660,428 - 2,660,428 (102,481) - (3,008,825) (462,868) (3,574,174) (231,106) - (18,429) - (249,535) (22,243) - (1,014) - (23,257) (293,483) 1,200 (364,151) (449,004) (1,105,438) 27,182 2,944 17,653 3,507 51,286 27,182 2,944 17,653 3,507 51,286 (1,657,970) (97,291) (547,459) (31,811) (2,334,531) Cash, cash equivalents and investments, October 1, 2010 2,871,320 375,874 2,200,727 102,193 5,550,114 Cash, cash equivalents and investments, September 30, 2011 $ 1,213,350 $ 278,583 $ 1,653,268 $ 70,382 $ 3,215,583 - - 5,831 9,868 - Cash, cash equivalents and investments $ 1,136,357 $ 278,583 $ 1,501,284 $ 1,238 $ 2,917,462 Cash, cash equivalents and investments - restricted 76,993 - 151,984 69,144 298,121 Cash, cash equivalents and investments, September 30, 2011 $ 1,213,350 $ 278,583 $ 1,653,268 $ 70,382 $ 3,215,583 Operating loss Adjustments to reconcile operating loss to net cash provided by (used for) operating activities: Depreciation expense Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Inventory Accounts payable Wages payable Due to other funds Due to other governments Due to individuals Compensated absences Refundable deposits Unearned revenue Total adjustments Net cash provided by (used for) operating activities Non -cash investing, capital and financing activities: Change in fair value of investments Contributed capital assets $ (13,518,911) $ (89,712) $ (1,504,055) $ (8,652,538) $ (23,765,216) 737,284 56,329 848,605 1,172,057 2,814,275 747,272 11,228 12,702 24,370 795,572 (14) - - (12,043) (12,057) 5,831 - - - 5,831 9,868 - (16,486) - (6,618) (60,104) 2,920 (27,220) (53,865) (138,269) (573,026) - (34,882) (2,541) (610,449) (244) - - 2,294 2,050 - - 58 (23,200) (23,142) (452) - - - (452) (92,538) - (378) 1,585 (91,331) - - (72) - (72) - - (6,233) - (6,233) 773,877 70,477 776,094 1,108,657 2,729,105 $ (12,745,034) $ (19,235) $ (727,961) $ (7,543,881) $ (21,036,111) $ (138) $ (17) $ (91) $ (38) $ (284) 2,816 - - 1,389,507 11392,323 See accompanying independent auditors' report. 126 I� Internal Service Funds SELF- INSURANCE — To account for the self - insurance costs of providing coverage for property, general and vehicle liability. To account for the provisions of health benefits to Board and participating constitutional officer employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. SHERIFF'S SELF- INSURANCE — To account for the provisions of health benefits to Sheriff employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. FLEET MANAGEMENT — To account for fuel, oil, lubricants, repairs and maintenance of County vehicles and the use of certain County owned vehicles by County employees. INFORMATION TECHNOLOGY — To account for the costs of operating the County data processing facility and telephone communication system. COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS SEPTEMBER 30, 2011 ASSETS Current assets: Cash, cash equivalents and investments Receivables: Trade, net Interest Due from other funds Due from other governments Deposits Inventory Prepaid costs Total current assets Noncurrent assets: Capital assets: Depreciable capital assets, net Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Wages payable Due to other funds Self- insurance claims payable Compensated absences Total current liabilities Noncurrent liabilities: Self - insurance claims payable Compensated absences Net pension obligation Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets See accompanying independent auditors' report. Sheriff's Self- Self- Fleet Information Insurance Insurance Management Technology Total 14B 7 $ 26,312,066 $ 14,650,620 $ 569,253 $ 1,408,048 $ 42,939,987 254,413 151,534 647 47,119 453,713 34,511 - 561 1,609 36,681 - 780,436 95 - 780,531 - - 42,706 9,800 52,506 424,553 - - - 424,553 - - 604,745 - 604,745 - 49,410 49,410 27,025,543 15,582,590 11218,007 1,515,986 45,342,126 305,354 12,648,312 8,300,833 21,254,499 305,354 12,648,312 8,300,833 21,254,499 27,330,897 15,582,590 13,866,319 9,816,819 66,596,625 88,765 - 396,210 703,540 1,188,515 17,060 - 31,110 52,421 100,591 850,546 - - 35,000 885,546 3,463,175 2,251,000 - - 5,714,175 82,792 - 107,725 174,494 365,011 4,502,338 2,251,000 535,045 965,455 8,253,838 1,928,324 - - - 1,928,324 35,482 - 46,168 74,783 156,433 437,881 1,140,863 1,578,744 2,401,687 1,140,863 46,168 74,783 3,663,501 6,904,025 3,391,863 581,213 1,040,238 11,917,339 305,354 - 12,648,312 8,300,833 21,254,499 20,121,518 12,190,727 636,794 475,748 33,424,787 $ 20,426,872 $ 12,190,727 $ 13,285,106 $ 8,776,581 $ 54,679,286 128 COLLIER COUNTY, FLORIDA 14B � L COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 See accompanying independent auditors' report. 129 Sheriff's Self- Self- Fleet Information Insurance Insurance Management Technology Total Operating revenues: Charges for services $ 39,208,945 $ 19,579,579 $ 7,981,957 $ 5,801,846 $ 72,572,327 Miscellaneous 25,324 - 6,074 81,461 112,859 Total operating revenues 39,234,269 19,579,579 7,988,031 5,883,307 72,685,186 Operating expenses: Personal services 1,102,253 - 2,019,824 3,297,947 6,420,024 Operating 37,923,333 17,815,915 6,269,793 2,047,395 64,056,436 Depreciation 20,553 561,427 1,433,259 2,015,239 Total operating expenses 39,046,139 17,815,915 8,851,044 _ 6,778,601 72,491,699 Operating income (loss) 188,130 1,763,664 (863,013) (895,294) 193,487 Non - operating revenues (expenses): 240,487 32,649 4,474 8,356 285,966 Interest income Insurance reimbursement 580,218 - 395 - 580,613 Loss on disposal of capital assets - - (2,527) (2,663) (5,190) Total non - operating revenues (expenses) 820,705 32,649 2,342 5,693 861,389 Income (loss) before contributions 1,008,835 1,796,313 (860,671) (889,601) 1,054,876 Capital grants and contributions - - 12,032 37,573 - 49,605 (850,000) Transfers out (850,000) - Change in net assets 158,835 1,796,313 (848,639) (852,028) 254,481 Net assets - beginning 20,268,037 10,394,414 14,133,745 9,628,609 54,424,805 Net assets - ending $ 20,426,872 $ 12,190,727 $ 13,285,106 $ 8,776,581 $ 54,679,286 See accompanying independent auditors' report. 129 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS 14B 7 INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used for) by operating activities: Depreciation expense Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Deposits Inventory Prepaid costs Accounts payable Wages payable Due to other funds Compensated absences Self- insurance claims payable Net pension obligation Total adjustments Net cash provided by (used for) operating activities Non -cash investing, capital and financing activities: Change in fair value of investments Contributed capital assets See accompanying independent auditors' report. $ 188,130 $ 1,763,664 $ (863,013) $ (895,294) $ 193,487 20,553 - 561,427 1,433,259 2,015,239 (74,883) (151,534) Sheriffs (45,167) (266,130) - 84,537 Self- Self- Fleet Information - (42,655) Insurance Insurance Management Technology Total Cash flows from operating activities: 93,714 1,921 - (38,598) - Cash received from other funds for services $ 34,583,808 $19,164,973 $ 7,527,460 $ 5,868,280 $ 67,144,521 Cash received from employees for services 4,627,305 - - - 4,627,305 Cash received from other governments for services - - 418,998 - 418,998 Cash received from retirees for services 724,319 499,143 - - 1,223,462 Cash payments on behalf of retirees (726,021) (341,007) - - (1,067,028) Cash payments for goods and services (38,759,440) (17,517,932) (6,116,002) (1,930,735) (64,324,109) Cash payments to employees (1,132,615) - (2,078,811) (3,405,558) (6,616,984) Cash payments for interfund services (93,903) 495,209 $ (271,600) (36,778) (402,281) Net cash provided by (used for) operating activities (776,547) 1,805,177 (519,955) 495,209 1,003,884 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 538,710 - - - 538,710 Proceeds from disposal of capital assets - - 4,356 4,356 Payments for capital acquisitions (73,536) (106,955) (86,945) (267,436) Net cash provided by (used for) capital and related financing activities 465,174 (102,599) (86,945) 275,630 Cash flows from investing activities: Interest on investments 247,750 32,649 4,901 6,747 292,04.7 Net cash provided by investing activities 247,750 32,649 4,901 6,747 292,047 Net increase (decrease) in cash, cash equivalents and investment (63,623) 1,837,826 (617,653) 415,011 1,571,561 Cash, cash equivalents and investments, October 1, 2010 26,375,689 12,812,794 11186,906 993,037 41,368,426 Cash, cash equivalents and investments, September 30, 2011 $ 26,312,066 $14,650,620 $ 569,253 $ 1,408,048 $ 42,9-A 987 Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used for) by operating activities: Depreciation expense Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Deposits Inventory Prepaid costs Accounts payable Wages payable Due to other funds Compensated absences Self- insurance claims payable Net pension obligation Total adjustments Net cash provided by (used for) operating activities Non -cash investing, capital and financing activities: Change in fair value of investments Contributed capital assets See accompanying independent auditors' report. $ 188,130 $ 1,763,664 $ (863,013) $ (895,294) $ 193,487 20,553 - 561,427 1,433,259 2,015,239 (74,883) (151,534) 5,454 (45,167) (266,130) - 84,537 (71) 5,000 89,466 1,000 - (42,655) (9,800) (51,455) 93,714 - - - 93,714 1,921 - (38,598) - (36,677) - - 23,042 (49,410) (26,368) (60,414) - (102,253) 129,292 (33,375) (33,454) - (60,264) (102,452) (196,170) 152 - (4,301) 34,940 30,791 3,092 1,277 (5,159) (790) (1,063,501) 97,000 - (966,501) 147,143 11,510 - 158,653 (964,677) 41,513 343,058 11390,503 810,397 $ (776,547) $ 1,805,177 $ (519,955) $ 495,209 $ 1,003,884 $ (1,798) $ (10,405) $ (27) $ (36,811) $ (49,041) 12,033 37,573 49,606 130 14B 7 Fiduciary Funds CLERK OF COURTS AGENCY FUND — To account for monies held in Trust by the Clerk of the Circuit Court prior to disbursement. SHERIFF AGENCY FUND — To account for monies held in a custodial capacity by the Sheriff. TAX COLLECTOR AGENCY FUND — To account for assets held by the Tax Collector prior to legal disbursement. DEPOSITS AGENCY FUND — To account for monies held by the County for businesses and individuals. PINE RIDGE AND NAPLES PRODUCTION PARK AGENCY FUND — To account for the receipt of special assessments and the payment of principal and interest on behalf of assessment holders. COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS SEPTEMBER 30, 2011 14B 7 ' Pine Ridge Clerk Tax and Naples of Courts Sheriff Collector Deposits Production Park Agency Fund Agency Fund Agency Fund Agency Fund Agency Fund Total ASSETS Cash, cash equivalents and investments $ 18,905,959 $ 464,087 $ 5,443,691 $ 3,228,598 $ 363,024 $28,405,359 Receivables: Interest - - - 3,495 569 4,064 Other 8,864 8,436 - 6,541 23,841 Total assets $ 18,905,959 _ $ 472,951 $ 5,452,127 $ 3,232,093 $ 370,134 $28,433,264 LIABILITIES Due to other governments $ 2,266,815 $ 45,180 $ 5,309,135 $ - $ - $ 7,621,130 Due to individuals - 427,771 142,992 - - 570,763 Refundable deposits 16,639,144 - - 3,232,093 - 19,871,237 Due to special assessment holders - - - 370,134 370,134 Total liabilities $ 18,905,959 $ 472,951 $ 5,452,127 $ 3,232,093 $ 370,134 $28,433,264 See accompanying independent auditors' report. 132 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash, cash equivalents and investments $ 21,474,385 $ 220,536,370 $ 223,104,796 $ 18,905,959 Total assets $ 21,474,385 $ 220,536,370 $ 223,104,796 $ 18,905,959 Liabilities: Due to other governments Refundable deposits Total liabilities Sheriff Agency Fund Assets: Cash, cash equivalents and investments Receivable: Other Total assets Liabilities: Due to other governments Due to individuals Total liabilities Tax Collector Agency Fund Assets: Cash, cash equivalents and investments Receivable: Other Total assets Liabilities: Due to other governments Due to individuals Total liabilities Deposits Agency Fund Assets: Cash, cash equivalents and investments Receivables: Interest Total assets $ 1,471,636 $ 10,434,882 $ 9,639,703 $ 2,266,815 20,002,749 210,101,488 213,465,093 16,639,144 $ 21,474,385 $ 220,536,370 $ 223,104,796 $ 18,905,959 $ 450,824 $ 4,375,846 $ 4,362,583 $ 464,087 8,864 - 8,864 $ 450,824 $ 4,384,710 $ 4,362,583 $ 472,951 $ 66,122 $ 342,669 $ 363,611 $ 45,180 384,702 1,153,910 1,110, 841 427,771 $ 450,824 $ 1,496,579 $ 1,474,452 $ 472,951 $ 6,584,222 $ 872,170,871 $ 873,311,402 $ 5,443,691 142,992 15,974 1,196,041 867,966 $ 1,203,579 8,436 $ 6,600,196 $ 873,366,912 $ 874,514,981 $ 5,452,127 $ 5,098,571 $ 841,232,639 $ 841,022,075 $ 5,309,135 1,501,625 36,487,258 37,845,891 142,992 $ 6,600,196 $ 877,719,897 $___878 867,966 $ 5,452,127 $ 3,121,028 $ 359,052 $ 251,482 $ 3,228,598 4,099 3,495 4,099 3,495 $ 3,125,127 $ 362,547 $ 255,581 $ 3,232,093 Liabilities: Refundable deposits $ 3,125,127 $ 355,854 $ 248,888 $ 3,232,093 Total liabilities $ 3,125,127 $ 355,854 $ 248,888 $ 3,232,093 (Continued) 133 14B 7 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 Pine Ridee and NaDles Production Park Aeencv Fund Assets: Cash, cash equivalents and investments Receivables: Interest Other Total assets Liabilities: Due to special assessment holders Total liabilities Total - All Aeencv Funds Assets: Cash, cash equivalents and investments Receivables: Interest Other Total assets Liabilities: Due to other governments Due to individuals Refundable deposits Due to special assessment holders Total liabilities See accompanying independent auditors' report. Balance Balance October 1 Additions Deductions September 30 $ 905,809 $ 841,436 $ 1,384,221 $ 363,024 1,299 569 1,299 569 13,783 61541 13,783 6,541 $ 920,891 $ 848,546 $ 1,399,303 $ 370,134 $ 920,891 $ 848,546 $ 1,399,303 $ 370,134 $ 920,891 $ 848,546 $ 1,399,303 $ 370,134 $ 32,536,268 $ 1,098,283,575 $ 1,102,414,484 $ 28,405,359 5,398 4,064 5,398 4,064 29,757 1,211,446 11217,362 23,841 $ 32,571,423 $ 1,099,499,085 $ 1,103,637,244 $ 28,433,264 $ 6,636,329 $ 852,010,190 $ 851,025,389 $ 7,621,130 1,886,327 37,641,168 38,956,732 570,763 23,127,876 210,457,342 213,713,981 19,871,237 920,891 848,546 1,399,303 370,134 $ 32,571,423 $ 1,100,957,246 $ 1,105 095 405 $ 28,433,264 134 14B 7 14B 74 Component Units COLLIER COUNTY HOUSING FINANCE AUTHORITY — The authority was established for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. COLLIER COUNTY HEALTH FACILITIES AUTHORITY — The authority was established for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY — The authority was established for the purpose of facilitating projects that promote economic growth and opportunities for employment in Collier County. COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY — The authority was established for the purpose of assisting institutions of higher education in the construction, financing and refinancing of projects. COLLIER COUNTY, FLORIDA COMPONENT UNITS COMBINING STATEMENT OF NET ASSETS SEPTEMBER 30, 2011 See accompanying independent auditors' report. 136 Housing Health Industrial Educational Finance Facilities Development Facilities Authority Authority Authority Authority Totals ASSETS Cash, cash equivalents and investments $ 284,552 $ 19,939 $ 2,550 $ 2,586 $ 309,627 Total Assets $ 284,552 $ 19,939 $ 2,550 $ 2,586 $ 309,627 NET ASSETS Net assets - unrestricted $ 284,552 $ 19,939 $ 2,550 $ 2,586 $ 309,627 Total Net Assets $ 284,552 $ 19,939 $ 2,550 $ 2,586 $ 309,627 See accompanying independent auditors' report. 136 COLLIER COUNTY, FLORIDA I COMPONENT UNITS 14B 7 COMBINING STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011 See accompanying independent auditor's report. 137 Net (Expense) Revenue and Changes Program Revenues in Net Assets Fees, Fines and Governmental FUNCTIONS /PROGRAMS Expenses Charges for Services Activities Industrial Development Authority $ 107,089 $ 102,375 $ (4,714) Health Facilities Authority 359,906 213,010 (146,896) Housing Finance Authority 680 2,000 1,320 Educational Facilities Authority 189 336 147 Total $ 467,864 $ 317,721 (150,143) General revenues: Interest income 338 Total general revenues 338 Change in net assets (149,805) Net assets - beginning 459,432 Net assets - ending $ 309,627 See accompanying independent auditor's report. 137 14B 'J THIS PAGE INTENTIONALLY LEFT BLANK AN ERNST &YOUNG ��III 14B Ernst & Young LLP Suite 500 5100 Town Center Circle Boca Raton, Florida 33486 Tel: +1 561 955 8000 Fax: +1 561 955 8200 www.ey.com Management Letter and State Reporting Requirements Members of the Board of County Commissioners Collier County, Florida: We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida as of and for the year ended September 30, 2011, which collectively comprise Collier County, Florida's basic financial statements and have issued our report thereon dated February 29, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. We have issued our Report of Independent Certified Public Accountants 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, Report of Independent Certified Public Accountants on Compliance with Requirements That Could Have a Direct and Material Effect on each Major Federal Program and State Project and on Internal Control over Compliance in Accordance with OMB Circular A -133, Section 215.97, Florida Statutes and Chapter 10.550, Rules of the Auditor General, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated February 29, 2012, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida. We have the following suggestions for improvement in accounting procedures and controls. 1202 - 1334456 A i -mber 6,te� of & Yowir; Global t Bnited r - III 14 13 =1 ERNST&YOUNG Single Audit Related ML Comments 2011 -1 Grant Compliance Observation During our testing of the County's various federal and state grant programs, we noted non- compliance over the management of several grant programs in the following areas: ► Payroll allocation and processing errors ► Subrecipient documentation and monitoring ► Eligibility ► Treatment of change orders ► General reporting ► ARRA Section 1512 reporting ► Period of availability Recommendation We recommend enhanced training of employees in grant compliance and more thorough supervisory review of grant transactions, documentation and. reporting. We also recommend the County consider implementing a central grant management or grant compliance office of individuals to more effectively monitor grant compliance. Management's response Management concurs with the recommendation of the auditors. In light of continuing audit findings, internal audit review and other actions management was made aware of, the County replaced the prior Director in Housing, Human and Veteran Services (HHVS) with a top management team member in late August 2011 to restructure the entire HHVS Department and implement effective controls, processes and procedures. 1202 - 1334456 A firm of Ernst & Young G!obal Limited 2 14B � � � � � I I I I I I I i i i i " " "•" J ErsNS r a Yourvc Realizing that this alone was not enough and wanting to effect changes throughout the entire organization, County Manager, Leo Ochs, submitted a grants reorganization plan to the Board of County Commissioners on January 30, 2012. In effect, all administrative grant compliance functions were centralized at the corporate level under the Office of Management and Budget (OMB). This centralization will allow the entire organization to benefit from the substantial grants accounting and compliance expertise that exist within that operation. While responsibilities for grant program management and service delivery will remain with the operating units, the key areas of grant compliance such as cash management, procurement, monitoring, reconciliation, and reporting will be centrally managed and monitored across the agency. OMB will implement this centralized grants management model in several phases over time. The immediate focus is bringing obvious noncompliant activities, such as identified in this Single Audit Report and prior years' reports, back into adherence with grantor requirements. OMB staff will become fully imbedded in the Agency's day to day administrative grant functions and existing grants accountants serving under the Administrative Services Division will be reassigned to the OMB. These employees will be deployed in key operating units to implement consistent business processes and internal controls and carry out corrective actions. A. Status of Prior Year Recommendations 2010 -1 Grant Reporting Controls (Sheriffs Office) Observation During our single audit testing over reporting requirements for the "Recovery Act — Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to States and Territories" federal program, we noted that for one of the quarterly performance reports during fiscal year 2010 sampled that the expenditures were overstated by approximately $2,850. The report covered the three month period ended June 30, 2010 and erroneously included March 2010 expenditures, which had been previously reported in the performance report covering the prior three months ended March 31, 2010. We also noted that there was no evidence of reports submitted to the grantor agency being reviewed prior to submission by someone other than the preparer for accuracy and completeness. 1202 - 1334456 A i,—ber firm of Frn,l & 9ar, -n Glatd I.tc;i'e+l 3 7 -J ERNST &YOUNG 14B Recommendation We recommend that all reports submitted to grantor agencies be subjected to a supervisory review for accuracy and completeness prior to submission. The preparer and the reviewer should sign -off on the report and a copy should be retained in the file to provide evidence that the report was properly reviewed. Management's response The expenditures on the quarterly reports are a compilation of the monthly claims which have been submitted to the grantor. Monthly claims are reviewed and approved by the Finance Director prior to submission. The report for the period ended June 30, 2010 inadvertently included one expenditure from the prior reporting period. It should be noted that all expenditures were accurately reported in the final closeout report for the grant. A spreadsheet is maintained which details expenditures for the grant claims and provides documentation for what is submitted on the quarterly reports. Because all required reports are directly submitted online, the spreadsheet will serve'as a review document for the input for the submitted expenditure information. The preparer and the reviewer will sign -off on the spreadsheet. The submitted report will be compared to the spreadsheet to ensure correct information was reported to the grantor. Current year status Spreadsheets are maintained for expenditures for each individual grant. The spreadsheets are used to input required information for online reports. All spreadsheets are reviewed and signed off on by the preparer and the Finance Director prior to any claims being submitted. The Grants Coordinator compares the information reported to the grantor to the appropriate spreadsheet to ensure correct information was reported. 2010 -2 Subrecipient Agreements — ARRA Requirements Observation OMB Circular A -133 guidelines require that pass - through entities separately identify to each subrecipient, and document at the time of the subaward and disbursement of funds, the Federal award number, CFDA number, and the amount of American Recovery and Reinvestment Act (ARRA) funds; and require their subrecipients to provide appropriate identification in their Schedule of Expenditures of Federal Awards (SEFA) and Data Collection Form (SF -SAC). For certain ARRA federal programs tested during our single audit (i.e., Community Development Block Grant ARRA Entitlement Grants and Homelessness Prevention and Rapid Re- Housing Program) for which the County made awards to subrecipient organizations, we noted that the agreements with the subrecipients provided the required information regarding the awards and 1202 - 1334456' A m ,nber firm of Linz I& 're,rg Giocai ,_invited 0 14B 7 ,/ ERNST&YOUNG indicated that "the subrecipient shall maintain all records required by ARRA." However, they did not explicitly indicate that the subrecipients are to appropriately identify the ARRA funds in their SEFA and SF -SAC. Recommendation We recommend that the County update its standard form of subrecipient agreement to explicitly state the requirement to provide appropriate identification of ARRA funds in the SEFA and SF- SAC. Management's response The Collier County Department of Housing, Human & Veteran Services (HHVS) concurs with this audit observation and agrees to amend its American Recovery and Re- Investment Act (ARRA) grants to more specifically outline the Schedule of Expenditures of Federal Awards (SEFA) and the Data Collection Form (SF -SAC) reporting requirement for its sub recipients. The amendment will be made to all Homelessness Prevention and Rapid Re- Housing Program (HPRP) and Community Development Block Grant - Recovery (CDBG -R) sub recipient grant agreements. Current year status Existing subrecipient agreements were approved by the Board of County Commissioners on May 24, 2011 to amend them and incorporate additional American Recover and Reinvestment Act of 2009 (ARRA) reporting requirements. All future subrecipient agreements will contain the proper reporting requirements as well. C. Other Required Communications The Rules of the Auditor General, Section 10.554 (1)(i)(1), require that we address in the management letter whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. The status of recommendations made in the preceding annual financial audit is included above. In connection with our audit, we noted no instances of noncompliance with Section 218.415, Florida Statutes regarding the investment of public funds. The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in a management letter any recommendations to improve Collier County, Florida's financial management, accounting procedures, and internal controls. Current year recommendations to improve Collier County, Florida's financial management, accounting procedures, or internal controls are included above. 1202 - 1334456 A mein beer'n :: of Ern if & Yrung x i(r8 ?+7 5 14 B 7 IIIIIIIIIIIIW� "' JEaNSraYouNc The Rules of the Auditor General, Section 10.554(1)(i)(4), require that we address in a management letter any violations of provisions of contracts and grant agreements or abuse that have an effect on the financial statements that is less than material but more than inconsequential. The results of our audit disclosed no violations of provisions or contracts and grant agreement or abuse that would have an effect on the financial statement that is less than material but more than inconsequential. The Rules of the Auditor General, Section 10.554(1)(i)(5), require disclosure in the management letter of the following matters, if not addressed in the auditor's report on internal control over financial reporting and on compliance and other matters or in the schedule of findings and questioned costs, and are not clearly inconsequential: (a) Violations of laws, rules, regulations, and contractual provisions or abuse that have occurred, or are likely to have occurred, would have an immaterial effect-on the financial statements, and were discovered within the scope of the audit; (b) Control deficiencies that are not significant deficiencies, including, but not limited to: (1) Improper or inadequate accounting procedures (e.g., the omission of required disclosures from the annual financial statements); (2) Failures to properly record financial transactions; and (3) Other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. The results of our audit disclosed no violations of laws, rules, regulations, and contractual provisions or abuse, no improper or illegal expenditures, and no control deficiencies other than the internal control recommendations included above. The Rules of the Auditor General, Section 10.554(1)(i)(6), also require 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. In that regard, Collier County, Florida was established under Chapter 107, Section 1, Florida Statutes. The legal authority for Collier County and its component units are discussed in Note 1 to the financial statements. During the course of our audit of the County, nothing came to our attention that would cause us to believe that the County was in a state of financial emergency, as defined by Section 218.503(1), Florida Statutes. As required by the Rules of the Auditor General, Section 10.554(1)(i)(7)(b), the County filed its report pursuant to Section 218.32(1)(a), Florida Statutes. Based on our review of the financial information contained in this report, no material differences were found in comparing this information to that of the basic financial statements. 1202- 1334456 a. a,mher Firm of =rns! & Yo,go G!obaj Limited C Jill 1111" " " " " =� FRNST & YOU G 14B 7 As required by the Rules of the Auditor General, Sections 10.554(1)(i)(7)(c) and 10.556(7), we applied financial condition assessment procedures. It is management's responsibility to monitor the County's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. This report is intended solely for the information and use of the Board of County Commissioners, management and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. 19� f fIT LLP February 29, 2012 1202- 1334456 7 A n, =!nber 1 :rm of 1,ist & Yos;ry :,!mJal (.untied 1�AB 71 State of Florida Certificate of Good Standing N/A Packet Page -1428- 11/13/2012 Item 14.13.7. 11/13/2012 Item 14.13.7. List of Board of Directors Although the Collier County Board of County Commissioners sits as the Collier County Community Redevelopment Agency Board of Directors, the CRA Board is a separate and. distinct legal entity. Jim Coletta District 5 2011 Vice - Chairman Donna Fiala District 1 CRA Chairperson Georaia A. Hiller. Esa. District 2 Tom Henning District 3 Fred W. Coyle District 4 2011 Chairman ,KE, Collier County Community f"° Redevelopment Agency Packet Page -1430- Organizational Chart 11/13/2012 Item 14.6.7. Immokalee Business Development Center Organizational Chart Collier County CRA/BCC Immokalee CRA Executive Director Immokalee Business Development Center Manager Administrative Assistant Packet Page -1432-