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CAFR Year End 09-30-2017 &ROOLHU&RXQW\)ORULGD ϳϱ <HDU(QGHG 6HSWHPEHU &RPSUHKHQVLYH$QQXDO )LQDQFLDO5HSRUW                                                       On the cover:  On September 10, 2017, Hurricane Irma made landfall on Marco Island as a category 3 storm with sustained winds  of 112 mph and a peak wind gust of 142 mph.  Irma brought almost a foot of rain and inland flooding to various parts  of the County.  Collier County was left with widespread power outages and some significant property damage.  Over  4 million cubic yards of debris was picked up across the County in an effort that took 4 months to complete.  COMPREHENSIVE ANNUAL FINANCIAL REPORT  FOR FISCAL YEAR ENDED  SEPTEMBER 30, 2017  COLLIER COUNTY, FLORIDA  BOARD OF COUNTY COMMISSIONERS  PENNY TAYLOR, CHAIRMAN – DISTRICT 4  ANDY SOLIS, ESQ., VICE‐CHARIMAN, DISTRICT 2  DONNA FIALA – DISTRICT 1  BURT SAUNDERS, ESQ. – DISTRICT 3  WILLIAM L. MCDANIEL, JR. – DISTRICT 5  COUNTY MANAGER  LEO E. OCHS, Jr.  COUNTY ATTORNEY  JEFFREY A. KLATZKOW  CLERK OF THE CIRCUIT COURT AND COMPTROLLER  CHIEF FINANCIAL OFFICER  DWIGHT E. BROCK  CHIEF DEPUTY CLERK AND DIRECTOR OF FINANCE AND ACCOUNTING  CRYSTAL K. KINZEL  Prepared by the Office of the Clerk of the Circuit Court,  Finance and Accounting Department  COLLIER COUNTY, FLORIDA  COMPREHENSIVE ANNUAL FINANCIAL REPORT  YEAR ENDED SEPTEMBER 30, 2017  TABLE OF CONTENTS  INTRODUCTORY SECTION  Page  Transmittal Letter ..................................................................................................................................................................  i  Certificate of Achievement ................................................................................................................................................. vii  Organizational Chart ........................................................................................................................................................... viii  FINANCIAL SECTION  Independent Auditors’ Report .............................................................................................................................................  1  Management’s Discussion and Analysis (Unaudited) ........................................................................................................  4  Basic Financial Statements:  Statement of Net Position ............................................................................................................................................  16  Statement of Activities .................................................................................................................................................. 18  Balance Sheet – Governmental Funds .........................................................................................................................  20  Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..............................  21  Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................. 22  Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental  Funds to the Statement of Net Position .............................................................................................................. 23  General Fund ‐ Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual  (Budgetary Basis) .................................................................................................................................................  24  Bayshore Gateway Community Redevelopment Agency ‐ Statement of Revenues, Expenditures and Changes in  Fund Balances – Budget and Actual (Budgetary Basis) ......................................................................................  27  Immokalee Community Redevelopment Agency ‐ Statement of Revenues, Expenditures and Changes in  Fund Balances – Budget and Actual (Budgetary Basis) ......................................................................................  28  Statement of Net Position – Proprietary Funds ............................................................................................................ 29  Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ...................................... 31  Statement of Cash Flows – Proprietary Funds .............................................................................................................. 32  Statement of Fiduciary Net Position – Agency Funds ................................................................................................... 34  Notes to the Financial Statements ................................................................................................................................ 35  Required Supplemental Information ................................................................................................................................ 81  Combining and Individual Fund Financial Statements and Other Supplemental Information:  Nonmajor Governmental Funds  Combining Balance Sheet  ................................................................................................................................................... 90  Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................................... 98  Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual (Non‐GAAP) .... 106  Nonmajor Enterprise Funds  Combining Statement of Net Position .............................................................................................................................  130  Combining Statement of Revenues, Expenses and Changes in Net Position .................................................................  131  Combining Statement of Cash Flows ................................................................................................................................ 132  Internal Service Funds  Combining Statement of Net Position .............................................................................................................................  134  Combining Statement of Revenues, Expenses and Changes Net Position .....................................................................  135  Combining Statement of Cash Flows ...............................................................................................................................  136  Fiduciary Funds  Combining Statement of Fiduciary Net Position .............................................................................................................  138  Combining Statement of Changes in Fiduciary Net Position ........................................................................................... 139  COLLIER COUNTY, FLORIDA  COMPREHENSIVE ANNUAL FINANCIAL REPORT  YEAR ENDED SEPTEMBER 30, 2017  TABLE OF CONTENTS ‐ CONTINUED       Component Units  Combining Statement of Net Position .............................................................................................................................. 143  Combining Statement of Activities ................................................................................................................................... 144    Other Supplemental Information  Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ...................................... 146    STATISTICAL SECTION (UNAUDITED)    Net Position by Component .............................................................................................................................................. 148  Change in Net Position .....................................................................................................................................................  150  Governmental Activities Tax Revenues by Source ........................................................................................................... 152  Fund Balances of Governmental Funds ...........................................................................................................................  153  Changes in Fund Balances of Governmental Funds ......................................................................................................... 154  Assessed Value and Estimated Actual Value of Taxable Property ..................................................................................  156  Property Tax Rates – All Direct and Overlapping Governments .....................................................................................  157  Principal Tax Payers County‐Wide ...................................................................................................................................  158  Property Tax Levies and Collections ................................................................................................................................  159  Ratios of Outstanding Debt by Type ................................................................................................................................  160  Legal Debt Margin Information ........................................................................................................................................  161  Direct, Overlapping and Underlapping Governmental Activities Debt ..........................................................................  161  Pledged‐Revenue Coverage .............................................................................................................................................  162  Demographic and Economic Statistics .............................................................................................................................  163  Principal Employers ..........................................................................................................................................................  164  Budgeted Full‐Time Equivalent County Employees by Function ....................................................................................  165  Operating Indicators by Function ....................................................................................................................................  166  Capital Asset Statistics by Function .................................................................................................................................  167    SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS    Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters    Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing    Standards ................................................................................................................................................................... 171  Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on    Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the    Auditor General of the State of Florida ..................................................................................................................... 173  Schedule of Expenditures of Federal Awards and State Financial Assistance ................................................................. 175  Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ........................................... 181  Schedule of Findings and Questioned Costs ..................................................................................................................... 182  Summary Schedule of Prior Audit Findings ...................................................................................................................... 185        THIS PAGE INTENTIONALLY LEFT BLANK  Phone- (239) 252-2646 Fax- (239) 252-2755 Website- www.collierclerk.com Email- collierclerk@collierclerk.com County of Collier CLERK OF THE CIRCUIT COURT COLLIER COUNTY COURTHOUSE   March 27, 2018      To the Citizens and  Members of the Board of County Commissioners,  Collier County, Florida:    It is with extreme pleasure that we present to you, the citizens of Collier County and members of  the Board of County Commissioners, the Comprehensive Annual Financial Report (CAFR) for the  fiscal year ended September 30, 2017.  Responsibility for the accuracy of the data and the  completeness and fairness of the presentation, including all disclosures, rests with the Board of  County Commissioners and County management.      The Clerk of the Circuit Court and Comptroller’s Finance and Accounting Department, as well as  County management, is responsible for establishing and maintaining internal controls to provide  reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from  unauthorized  use  or  disposition,  the  reliability  of  financial  records for preparing financial  statements and maintaining accountability of assets.  The concept of reasonable assurance  recognizes that the cost of a control should not exceed the benefits likely to be derived, and the  evaluation of costs and benefits requires estimates and judgments by management.      Chapter 218.39 of the Florida Statutes requires an independent certified public accountant’s  financial audit of counties in the State.  For the fiscal year ended September 30, 2017 the  independent  auditor,  CliftonLarsonAllen  LLP,  issued  an  unmodified  opinion  on  the  financial  statements.  Their report is included in the Financial Section of this report.  In addition to meeting  the  requirements  set  forth  in  State  statutes,  the  audit  was  also  designed  to  meet  the  requirements of the Government Auditing Standards, the Title 2 U.S. Code of Federal Regulations  (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements  for Federal Awards and the Rules of the Auditor General, Chapter 10.550 Local Governmental  Entity Audits.  Information relating to the Single Audits, including the schedule of expenditures  of  federal  awards  and  state  financial  assistance  and  the  independent  auditors’  report  on  compliance and internal control over compliance with requirements applicable to each major  federal program and state project, are included in the Federal and State Single Audit Section of  this report.    Governmental accounting and auditing principles require that management provide a narrative  introduction, overview and analysis to accompany the basic financial statements in the form of  Dwight E. Brock - Clerk of Circuit Court 3315 TAMIAMI TRL E STE 102 NAPLES, FL 34112-5324 P.O. BOX 413044 NAPLES, FL 34101-3044 Clerk of Courts  Comptroller  Auditor  Custodian of County Funds ii Management’s  Discussion  and  Analysis  (MD&A).    This  letter  of  transmittal  is  designed  to  complement MD&A and the two should be read in concert.  Collier County’s MD&A can be found  in the Financial Section immediately following the independent auditors’ report.      PROFILE OF THE GOVERNMENT    Collier County is a Constitutional form of government and was established in 1923 under the  Constitution and the laws of the State of Florida.  The Board of County Commissioners is the  legislative body for Collier County and is made up of five residents elected by voters.  In addition  to the County Commissioners, voters elect the following five constitutional officers: the Clerk of  the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax  Collector.    The County provides its citizens with a wide range of services that include law enforcement,  emergency management, fire and EMS services, animal services, library, museum and cultural  services, parks and recreation operations, road maintenance and construction.  Additionally, the  County owns and operates a water and wastewater utility, a solid waste landfill and recycling  program, a landfill gas to energy facility, three airports and a transit system.      Budgets are prepared annually. Formal budgetary integration is employed as a management  control throughout the year.  The Board of County Commissioners conducts budget workshops  during June of each year.  The Board’s proposed budget is released by July 15, in accordance with  Florida  Statutes.    The  budgets  of  Constitutional  Officers  are  presented  to  the  appropriate  authorizing bodies according to state statute.  Public hearings are held in September to allow  taxpayer input and to adopt the final budget.        ECONOMIC CONDITION AND OUTLOOK    Collier County, the state’s largest county at 2,026 square miles, is on the southwest coast of  Florida, directly west of Miami.  With a 2017 population of 360,846 (an 8 percent increase over  the last ten years), Collier County has been considered to be one of the fastest growing counties  in the state over the last ten years.  The resident population includes Unincorporated County  (pop. 320,743) and three municipalities: the Cities of Naples (pop. 21,845), Marco Island (pop.  17,847) and Everglades (pop. 411).  The County’s economic base is concentrated in tourism,  agriculture, fishing, ranching and forestry with a growing services economy and an emerging  technology sector.  Gulf of Mexico beaches and the Everglades National Park are important  attractions to this area.      Taxable property market valuation for fiscal year 2017 totaled $83.6 billion, or a very high  $231,706 per capita.  The County’s millage for General Fund operations in fiscal year 2017  remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value.   Unemployment levels in recent years approximate, or are slightly below, the statewide average.   The 2017 annual County unemployment rate stood at 3.6%, while the statewide average is 3.7%.   Income levels are high, with a per capita personal income of $84,101.    iii LONG TERM FINANCIAL PLANNING    The County annually performs a three‐year budget projection of primary ad valorem supported  funds (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior  to developing annual budget policy. On an annual basis the County is required to prepare and  present to the Board of County Commissioners an Annual Update and Inventory Report (AUIR)  and adopt a five‐year Capital Improvement Element (CIE).  Both of these processes focus on the  schedule of capital improvements for the County.  The AUIR is an annual status report on public  facilities and the CIE is a planning document that identifies public facilities that will be required  during the next five or more years.  The Capital Improvement Element is the foundation of Collier  County’s annual Capital Improvement Program (CIP).  The total CIP projects planned for fiscal  years 2018‐2022 is $1,044.1 million. Included in the County’s current CIP for fiscal years 2018‐ 2022  are  approximately  $307  million  in  water  and  wastewater  projects,  $317.6  million  in  transportation projects, $49.1 million in stormwater projects and $46.9 million in government  facilities projects.  In addition, parks and recreation projects of approximately $87.7 million are  planned, as well as $153.1 million for tourist development funded projects, $32.5 million in solid  waste projects, $11.4  million in library projects, $29.2  million in public safety projects and  miscellaneous projects totaling $9.6 million.  Approximately $229.1 million of the fiscal year 2017  –  2021  Capital  Improvement  Program  is  currently  planned  to  be  funded  by  bond  or  loan  proceeds.  In addition, the County has developed a Master Mobility Plan (MMP) to address the  transportation mobility needs of Collier County.  The MMP is specifically focused on demand  management and coordination to reduce the need for transportation infrastructure.    RELEVANT FINANCIAL POLICIES    Relevant financial policies include the appropriation of carryforward as revenue in the following  year, maintaining a recommended General Fund unassigned fund balance of between 8% and  16% of actual expenditures and net operating transfers, the assessment of impact fees at such  levels as allowed by law and supported by studies, and prioritizing gas taxes for payment of debt  service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds.      Debt administration policies include the limitation of the debt repayment period to the useful  life of the underlying assets and the establishment of a 5% benchmark for net present value  savings generated by refinancing.  The Collier County Debt Management Policy provides that a  smaller net present value savings may be considered, but only on a case‐by‐case basis.  In  addition, the debt policy establishes a maximum ratio of total general governmental debt service  to bondable revenues from current sources of 13%.    Consistent  with  Collier  County’s  Debt  Management  Policy,  outstanding  debt  is  continually  monitored in relation to existing conditions in the debt market.  When sufficient cost savings can  be realized debt will be refinanced.  During fiscal year 2017, the Collier County Water and Sewer  District refunded its State Revolving Fund Loans.  This refinancing achieved a net present value  savings of over 5% and is further described in Note 6 to the financial statements.    The Clerk of the Circuit Court’s Finance and Accounting Department monitors the daily cash  needs of the County and invests the County’s portfolio in accordance with the Collier County  Investment Policy.  The primary objective of the investment policy is the preservation of capital  and  the  protection  of  investment  principal.    Authorized  investments  include  certificates  of  iv deposit, the Local Government Funds Surplus Trust Fund, U.S. treasury securities, U.S. agency  securities, commercial paper and bankers’ acceptances.  The weighted average maturity of the  total managed portfolio, to first call or maturity, was 1.12 years as of September 30, 2017.  The  total return for fiscal year 2017 was .42%, a reflection of market interest rate increases in late  calendar year 2016.  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, 2016.   The Certificate of Achievement is a prestigious national award, recognizing conformance with the  highest standards for preparation of state and local government financial reports.  In order to be awarded a Certificate of Achievement, a government unit must publish an easily  readable  and  efficiently  organized  Comprehensive  Annual  Financial  Report  whose  contents  conform to program standards.  The CAFR must satisfy both generally accepted accounting  principles and applicable legal requirements.  A Certificate of Achievement is valid for a period of one year only.  Collier County has received  this award for the past thirty‐one years, from fiscal year 1986 to 2016.  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, 2016.  In order to receive this award, a government unit must publish a  budget document that meets program criteria as a policy document, as an operations guide, as  a financial plan, and as a communications device.  The Distinguished Budget Presentation Award  is valid for a period of one year only.  Collier County has received this award for the last thirty‐ 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  and Comptroller for its annual budget for the fiscal year beginning October 1, 2016.  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 fifteen consecutive years.  v 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, Finance Manager, Robin Sheley, Operations Manager, Raymond  Milum, Jr., Accounting Manager and all of the staff of the Finance and Accounting Department.    Sincere appreciation is also exp ressed to CliftonLarsonAllen, the Board of County Commissioners,  the Constitutional Officers, the County Manager, Division Administrators and the Department  Directors for their assistance throughout the year in matters pertaining to the financial affairs of  the County.  We hope you find this report informative, accurate and easily readable.  If you should have any  questions related to this report or if additional information is desired, do not hesitate to contact  Crystal K. Kinzel, Chief Deputy Clerk and Director of Finance and Accounting, at (239) 252‐6299.  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, 2016. This  was the thirty‐first consecutive year that the government has achieved this prestigious award.   In order to be awarded a Certificate of Achievement, a government must publish an easily  readable and efficiently organized comprehensive annual financial report.  This report must  satisfy both generally accepted accounting principles and applicable legal requirements.  A Certificate of Achievement is valid for a period of one year only.  We believe that our current  comprehensive  annual  financial  report  continues  to  meet  the  Certificate  of  Achievement  Program’s requirements and we are submitting it to the GFOA to determine its eligibility for  another certificate.  Board of County CommissionersPhone 252‐8097Donna FialaWilliam L. McDaniel, Jr.Burt SaundersAndy SolisPenny TaylorJeff KlatzkowCounty AttorneyPhone 252‐8400Leo Ochs, Jr.County ManagerPhone 252‐8383ExecutiveManager of CorporateBusiness OperationsTim DurhamPhone 252‐8383Communications& Customer RelationsMike Sheffield,ManagerPhone 252‐8383Bureau of Emergency ServicesCommunications & Customer RelationsFleet Management Human ResourcesInformation TechnologyProcurement Services Records Management Risk ManagementCITIZENSAbe SkinnerProperty Appraiser252‐8141Larry RayTax Collector252‐8171KevinRamboskSheriff252‐4434Dwight BrockClerk of Courts252‐2646Jennifer EdwardsSupervisor of Elections252‐8450Judicial Courts & Judges252‐8800Administrative Services DepartmentLen Golden Price, Department HeadPhone 252‐3646Domestic Animal ServicesCommunity and Human ServicesHealthLibraryMuseumOperations and Veterans ServicesParks & RecreationPublic Transit & Neighborhood EnhancementUniversity Extension ServicePublic Services DepartmentSteve Carnell, Department HeadPhone  252‐8468Building Plan Review & InspectionCapital Project Planning, Impact Fees & Program ManagementCode EnforcementDevelopment ReviewOperations & Regulatory ManagementOperations SupportRoad MaintenanceTransportation EngineeringZoningGrowth Management DepartmentThaddeus Cohen,Department HeadPhone 252‐2370Facilities ManagementOperation SupportEngineering & Project ManagementSolid  & Hazardous WasteWastewaterWaterPublic Utilities DepartmentG. George Yilmaz, Department HeadPhone 252‐2540TourismJack Wert,DirectorPhone 252‐2384Pelican Bay ServicesNeil Dorrill,DirectorPhone 597‐1749Economic& Business DevelopmentJace Kentner,Interim DirectorPhone 252‐8358Corporate Financial & Management ServicesMark Isackson, DirectorPhone 252‐8383Mark StrainChiefHearing ExaminerPhone 252‐4446Nick CasalanguidaDeputy County ManagerPhone 252‐8383Michael NiemanCorporate Compliance and Internal Review Manager     FINANCIAL SECTION   THIS PAGE INTENTIONALLY LEFT BLANK  CliftonLarsonAllen LLP CLAconnect.com   INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Board of County Commissioners Collier County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2017, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund, the Bayshore Gateway Redevelopment Agency special revenue fund, and the Immokalee Redevelopment Agency special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 18, the County acquired a utility system which has been accounted for as a merger in accordance with Governmental Accounting Standards Board Statement (GASBS) No. 69, Government Combinations and Disposals of Government Operations. Pursuant to GASBS No. 69, the County reported a restatement for the change in accounting principle. The auditors’ opinion was not modified with respect to the restatement. As described in Note 18, the County adopted the provisions of GASBS No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. As a result of the implementation of GASBS No. 75, the County reported a restatement for the change in accounting principle. The auditors’ opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management’s discussion and analysis (MD&A) on pages 4 – 15, the schedules of the county’s proportionate share of the net pension liability and of county contributions on page 82, and the other postemployment benefits schedule of funding progress for the retiree health plan on page 83 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Honorable Board of County Commissioners Collier County, Florida Other Matters (Continued) Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual fund financial statements and other supplemental information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida, is also presented for purposes of additional analysis and is also not a required part of the basic financial statements. The combining and individual fund financial statements and other supplemental information and the schedule of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2018, 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the County’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida March 16, 2018 3 MANAGEMENT’S DISCUSSION AND ANALYSIS  (UNAUDITED)      As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the County’s financial  statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September  30, 2017.  Readers are encouraged to consider the information presented in this narrative in conjunction with additional  information offered in the letter of transmittal, found on pages i‐v of this report.      Financial Highlights     Collier County’s assets and deferred outflows exceeded its liabilities and deferred inflows as of September  30, 2017 by $2,513,728,601.  Of this amount, $144,590,751 represents unrestricted net position and may  be used to meet future County obligations.  Unrestricted net position decreased by $4,109,939 from the  previous year, as restated.     The County’s total net position increased by $47,276,919 when compared to fiscal year 2016 as restated,  with a $35,311,355 increase from governmental activities and a $11,965,564 increase resulting from  business‐type activities.      As of September 30, 2017, Collier County’s governmental fund financial statements showed combined  ending fund balances of $459,642,334, an increase of $18,055,669 over the previous fiscal year.  Of the  total combined ending governmental fund balance, $54,805,103 is reported as unassigned.        The General Fund reported an unassigned fund balance of $54,805,103 at September 30, 2017, an  increase in unassigned General Fund balance of $844,159 when compared to September 30, 2016.     Total bonded debt, notes, outstanding loans and capital leases owed by Collier County decreased by  $36,259,315  during fiscal year 2017, with a decrease in governmental activities debt of $23,184,162 and  a decrease in the business‐type activities debt of $13,075,153.  In November of 2016, the Collier County  Water and Sewer District issued the Series 2016B County Water and Sewer Refunding Revenue Note to  current refund the District’s outstanding State Revolving Fund Loans.  Additional information on debt  activity can be found in Note 6 to the financial statements beginning on page 54.      Overview of the Financial Statements    This discussion and analysis is intended to serve as an introduction and explanation of Collier County’s basic financial  statements.  Collier County’s basic financial statements include government‐wide and fund financial statements, as well as  notes to the basic financial statements.  This report also contains a statistical section, single audit and other supplementary  information in addition to the basic financial statements.      Government‐Wide Financial Statements    Government‐wide financial statements are designed to provide the reader an overview of the financial position of the County  and are similar to private sector financial statements.  These statements are comprised of a Statement of Net Position and a  Statement of Activities and are found on pages 16 to 19 of this report.      The Statement of Net Position shows the financial position of Collier County as of September 30, 2017.  The statement shows  the County’s assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the  difference being reported as net position.  Changes in net position are useful indicators of financial condition.         4     The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal  period.   All changes in net position are reported as soon as the underlying events that gave rise to the change occur,  regardless of the timing of the related cash flows.  Thus, reve nues and expenses are reported for some items, such as accounts  receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and  outflows, respectively, in future fiscal periods.    These  statements  distinguish  Collier  County  functions  that  are supported  by  taxes  and  intergovernmental  revenues  (governmental activities), from business‐type activities, which are intended to have their costs primarily recovered through  user fees and charges.    Governmental activities reported in the financial statements are general government, public safety, physical environment,  transportation, economic environment, human services and culture and recreation.  Business‐type activities in Collier County  include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services.       Fund Financial Statements    A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific  objectives.  As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and  demonstrate compliance with financial legal requirements.  The funds of the County can be divided into the following three  categories: governmental, proprietary and fiduciary.      Governmental funds     Governmental funds, presented on pages 20 to 28, account for substantially the same functions as governmental activities  reported under the government‐wide Statement of Net Position and Statement of Activities.  The difference is that the  governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of  expendable resources available at the end of the fiscal year, on a near term basis.   As such, these statements present a  narrower  view  of  financial  condition,  but  are  nonetheless  useful  in  evaluating  Collier  County’s  near  term  financing  requirements and available resources.     Comparison between the two sets of financial statements allows the reader to better assess the future impact of the  government’s near term financial decisions.  Both the governmental fund balance sheet and the statement of revenues,  expenditures and changes in fund balances provide a reconciliation to the respective government‐wide financial statements  to facilitate comparison.    Governmental funds presented individually in Collier County’s statements include three major funds, the General Fund and  the Bayshore Gateway and Immokalee Community Redevelopment Agencies.  While there are many smaller governmental  funds  under  Collier  County  management,  they  are  aggregated  in  a  total  column  named  “other  governmental  funds”.   Combining statements for these other governmental funds have been presented elsewhere in this report.    Collier County adopts an annual budget as described in Note 1 to the financial statements.  A budgetary comparison  statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with  this budget.  Budgetary comparison schedules for any non‐major governmental fund required to adopt an annual budget is  presented in the combining statements presented elsewhere in this report.    Proprietary funds    Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on  pages 29 to 33 of this report.    Enterprise funds report, with more detail, the same functions presented as business‐type activities in the government‐wide  financial statements for water and sewer, solid waste disposal, emergency medical services, transit and the airport authority.   The Collier County Water and Sewer District Fund, the Solid Waste Disposal Fund and the Emergency Medical Services Fund  are presented individually as major funds.   5     Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier County.  The County  uses  internal  service  funds  to  account  for  health  insurance,  worker’s  compensation  insurance,  property  and  casualty  insurance, fleet operations and information technology.  The internal service funds are presented in total in the proprietary  fund financial statements, but may be viewed on a combining basis elsewhere in the report.      Fiduciary funds    Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government.  These  funds are not presented in the government‐wide financial statements as they do not represent resources available to support  Collier County functions.  The fiduciary funds are presented on page 34 of this report.  All of the County’s fiduciary funds are  agency funds.  The accounting used for agency funds is based on the concept that assets equal liabilities when the government  is acting in a fiduciary capacity.        Notes to the Financial Statements        The notes provide additional information essential to a full understanding of the data provided in both the government‐wide  and fund financial statements.  The notes appear on pages 35 to 80 of this report.      Other Information    The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed  views of nonmajor governmental and enterprise funds and begin o n page 85.  This section contains combining balance sheets  and  statements  of  revenues,  expenditures  and  changes  in  fund  balance  for  governmental  funds,  including  budgetary  comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net  position for enterprise funds.  Also included are combining financial statements for internal service and agency funds.      Additional information about the County, which may be of intere st to the reader, can be found under the Statistical and Single  Audit sections of this report.  The statistical section has been prepared in accordance with Governmental Accounting  Standards  Board  Statement No.  44, Economic  Condition  Reporting:  The  Statistical  Section.   This  section contains  data  regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators  of the County.  The Single Audit grants compliance section lists the expenditures of Federal Awards and State Financial  Assistance during the fiscal year and presents grant compliance information as well as auditor reports.      Government‐Wide Financial Analysis     As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.  Assets and  deferred outflows exceeded liabilities and deferred inflows by $2,513,728,601 as of the fiscal year ending September 30,  2017 for Collier County.  Positive balances were reported in all categories of net position in the governmental and business‐ type activities for fiscal year 2017 with the exception of a negative unrestricted net position for governmental activities.  This  is a change from fiscal year 2016, where positive balances were reported in all categories of net position and is primarily due  to  implementation  of  Governmental  Accounting  Standards  Statement  No.  75, Accounting  and  Financial  Reporting  for  Postemployment Benefits Other than Pensions.  This statement requires the County to record the long term liability and  deferred inflows and outflows associated with post employment healthcare benefits provided through a single employer  defined benefit plan.      Collier County’s net position at September 30, 2017 decreased by $4,109,939 for unrestricted net position and increased  $5,812,228 for restricted net position. Restricted net position consists of resources subject to external restriction on how  they may be used while unrestricted net position may be used to meet the County’s ongoing obligations.  Increases in  restricted net position were mainly due to an 8.4% increase in restricted net position related to tourist development.          6     Collier County’s investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of  depreciation or any outstanding debt related to the asset, amounts to 79.5% of net position as of September 30, 2017,  compared to 78.4% as of September 30, 2016.   During fiscal yea r 2017, the County’s net investment in capital assets increased  by $45,577,107.  Capital assets are used to provide services to the citizens and consequently do not represent spendable  resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets.          The following are Collier County’s net position and changes in net position for the fiscal years ended September 30, 2016 and  2017, shown in condensed form:      2017 2016 2017 2016 2017 2016 2016‐2017 Current and other assets 572.0$       546.8$       261.8$     250.4$    833.8$      797.2$       4.6% Capital assets, net 1,574.6     1,565.0     912.5       904.8       2,487.1     2,469.8     0.7%   Total assets 2,146.6     2,111.8      1,174.3    1,155.2   3,320.9     3,267.0     1.6% Deferred outflows    of resources 121.6        102.0        26.3         23.2         147.9        125.2         18.1% Long‐term liabilities 591.5        562.0         210.7       215.5      802.2        777.5         3.2% Current liabilities 92.5           91.7            44.5         34.4         137.0        126.1         8.6%   Total liabilities 684.0        653.7         255.2       249.9      939.2        903.6         3.9% Deferred inflows    of resources 13.6           4.1              2.3           0.4           15.9           4.5              253.3% Net position: Net investment in    capital assets 1,257.7     1,225.5     741.9       723.0       1,999.6     1,948.5     2.6% Restricted 336.9        328.0        32.6         35.8         369.5        363.8         1.6% Unrestricted (deficit)(24.0)         2.5              168.6       169.3      144.6        171.8         (15.8%)   Total net position 1,570.6$   1,556.0$   943.1$     928.1$     2,513.7$   2,484.1$   1.2%  Collier County's Schedule of Net Position  (in millions) Total Governmental Activities Business‐type  Activities Total  Percentage  Change      7     2017 2016 2017 2016 2017 2016 2016‐2017 Revenues Program revenues:  Fines, fees and charges for services 69.3$         75.0$         197.1$       183.2$       266.4$       258.2$       3.2%  Operating grants and contributions 26.6           26.4           5.0             4.4             31.6           30.8           2.6%  Capital grants and contributions 38.1           36.8          27.0           25.4          65.1           62.2           4.7% General revenues:  Property taxes 312.6         281.1        ‐               ‐               312.6         281.1         11.2%  Other taxes and shared revenues 104.6         101.4        ‐               ‐               104.6         101.4         3.2%  Interest income 3.6             4.9            1.4             2.0            5.0             6.9             (27.5%)  Miscellaneous 9.7             6.0            0.1             0.2            9.8             6.2             58.1%   Total revenues 564.5         531.6        230.6         215.2        795.1         746.8         6.5% Expenses  General government 108.4         104.2        ‐               ‐               108.4         104.2         4.0%  Public safety 225.3         205.3        ‐               ‐               225.3         205.3         9.7%  Physical environment 17.9           22.5          ‐               ‐               17.9           22.5           (20.4%)  Transportation 75.6           70.6          ‐               ‐               75.6           70.6           7.1%  Economic environment 8.5             11.3          ‐               ‐               8.5             11.3           (24.8%)  Human services 15.5           14.4          ‐               ‐               15.5           14.4           7.6%  Culture and recreation 51.9           49.5          ‐               ‐               51.9           49.5           4.8%  Interest on long‐term debt 11.3           12.1          ‐               ‐               11.3           12.1           (6.6%)  Water and sewer ‐               ‐               144.8         130.8        144.8         130.8         10.7%  Solid waste ‐               ‐               43.7           39.3          43.7           39.3           11.2%  Emergency medical services ‐               ‐               28.6           26.5          28.6           26.5           7.9%  Airport authority ‐               ‐               4.9             4.4            4.9             4.4             11.4%  Mass transit ‐               ‐               11.4           11.3          11.4           11.3           0.9%   Total expenses 514.4         489.9        233.4         212.3        747.8         702.2         6.5% Increase in net position         before net transfers     50.1           41.7          (2.8)           2.9             47.3           44.6           (6.1%) Transfers, net (14.8)          (14.3)         14.8           14.3          ‐               ‐               ‐ Change in net position 35.3           27.4          12.0           17.2          47.3           44.6           (6.1%) Net position – beginning 1,556.0     1,528.6    928.1         910.9         2,484.1     2,439.5    1.8% Restatement of net position, net (20.7)         ‐               3.0            ‐               (17.7)         ‐               ‐ Net position – ending 1,570.6$   1,556.0$  943.1$       928.1$       2,513.7$   2,484.1$  1.2% Total  Collier County's Schedule of Changes in Net Position (in millions) Governmental Activities Business‐type Activities Total  Percentage  Change     8     Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically  by function.  General revenues, such as property taxes, must be used to the extent that the fee, fines, grants and contributions  do not cover the cost of the governmental function.  Public safety is the largest category of expenses followed by general  government.     ‐  50  100  150  200  250 General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture and RecreationMillionsRevenues and Expenses Governmental Activities Fiscal Year 2017 Revenues Expenses  Revenues for governmental activities are shown graphically by type.  The largest type of revenue for governmental activities  is property taxes followed by fines, fees and charges for services.    Property Taxes 55% Fines, Fees and Charges  for Services 12% Operating Grants and  Contributions 5% Capital Grants and  Contributions 7% Gas Taxes 4% Sales Tax 7% Tourist Taxes 4%Other Income 6% Revenue by Type Governmental Activities Fiscal Year 2017  9     Revenues and expenses are shown by business‐type activity.  The Water and Sewer system is the largest business‐type activity  followed by the Solid Waste system.     ‐  20  40  60  80  100  120  140  160  180 Water and Sewer Solid Waste Emergency Medical Services Airport Authority Mass TransitMillionsRevenues and Expenses Business‐type Activities Fiscal Year 2017 Revenues Expenses      Revenues for business‐type activities are shown graphically by type.  The largest type of revenue is fines, fees and charges  for services followed by capital grants and contributions.      Fines, Fees and Charges  for Services 85% Operating Grants and  Contributions 2% Capital Grants and  Contributions 12% Other Income 1% Revenue by Type Business‐type Activities Fiscal Year 2017   10     Governmental Activities     The current year increase in the net position of governmental activities amounted to $35,311,355, an increase of 2.3% when  compared to the previous year’s net position, as restated.  The previous fiscal years’ increase in net position was 1.8%.  The  current years’ increase is mainly due to the following:     Overall, revenues related to governmental activities increased by 6.2%, or $32,996,052 while expenses  increased by 5.0%, or $24,464,581.     Governmental  activities  revenues  increased  primarily  due  to  an increase in total ad valorem taxes  collected in fiscal year 2017 of $31,496,884 when compared to fiscal year 2016. The increase in ad valorem  revenues was due to a 10.0% increase in county wide taxable value.  In addition, Half Cent Sales Tax and  Gas Tax collections increased a combined 4.0% over fiscal year 2016, or $2,460,318.         Governmental activities expenses increased primarily due to increases in the public safety functional area.   Public safety expenses increased predominately due to an increase in the Sheriff’s personal services.  This  is a result of implementing recommendations from a pay plan survey at the end of the previous fiscal year,  as well as the additional personal services and operating costs related to Hurricane Irma response efforts.       Business‐type Activities     The increase in net position related to business‐type activities amounted to $11,965,564 in the aggregate, representing a  1.29% increase over the previous year’s net position, as restated.  The previous fiscal year’s increase in net position was 1.9%.   The current year’s increase is mainly due to the following:     The majority of the increase, or $8,841,368, can be attributed to the Collier County Water and Sewer  District (District).  The increase in the District’s net position is largely due to a 5.0% rate increase that went  in to effect October 1, 2016 as well as a 6.7% increase in the number of active customers brought on by  new construction and the acquisition of the Orange Tree Utility System.  In addition, water and sewer  capital grants and contributions increased by 7.6%, largely due to increases in developer infrastructure  contributions.       Emergency Medical Services contributed $1,101,692 to the overall increase in business‐type activities net  position.  User charges decreased by $1,357,233 over fiscal year 2016 as a result of a 18.5% decrease in  air transport ambulance calls over the same interval.  Transfers from governmental activities exceeded  the operating loss generated by the operation of Emergency Medical Services.        Fund Financial Statement Analysis           As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements.    Governmental Funds    Governmental funds provide information on near term inflows, outflows and balances of spendable resources.  Unassigned  fund balance is a useful measure of net resources available to be spent at the end of the fiscal year.  Governmental funds  consist of the General Fund, Special Revenue Funds, Permanent Fund, Debt Service Funds and Capital Project Funds.      As of September 30, 2017, Collier County governmental funds reported combined fund balances of $459,642,334, an increase  of $18,055,669 when compared to prior year combined fund balances.  The governmental funds had non‐spendable fund  balances of $5,771,370 consisting of inventory, prepaid items, notes receivable and General Fund and Other Governmental  Fund advances to other funds.  The restricted fund balance was $330,886,818 and consists of monies whose expenditure is  externally constrained by grantors, creditors, binding law or enabling legislation.  Of the remaining $122,984,146 in fund  balance,  $32,758,821  is  classified  as  committed,  $35,420,222  is  recorded  as  assigned  and $54,805,103  is  recorded  as  unassigned.         11     The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2017:     The General Fund is the primary operating fund of Collier County.  At September 30, 2017, total fund  balance in the General Fund was $62,229,451, of which $54,805,103 was unassigned.  As a percentage of  total general fund expenditures and net transfers, the unassigned portion is 16.3%.  The total fund balance  increased by $2,655,918 or 4.5%, compared to the September 30, 2016 total fund balance.     The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the  Bayshore Gateway Triangle.  During fiscal year 2017, the Bayshore Gateway Community Redevelopment  Agency collected $1,292,600 in tax increment revenues and was reimbursed $56,076 for stormwater  improvements.  In addition, the agency received $78,613 in miscellaneous revenues for rents.   Operating  expenditures of $424,977, mainly personal services, were associated with the Bayshore Gateway Triangle  Community  Redevelopment  Agency.    In  addition,  capital  expenditures  of  $305,892  were  made  for  stormwater improvements.       The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee.   During fiscal year 2017, the Immokalee Community Redevelopment Agency collected $544,600 in tax  increment revenues.  Operating expenditures of $422,969, mainly personal services, were associated with  the Immokalee Community Redevelopment Agency.  In addition, capital expenditures of $6,136 were  made for computer equipment and permit fees for a sidewalk project.      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, 2017, total net position amounted to $941,459,899 for enterprise funds, as compared to $929,928,815, as  of September 30, 2016, an increase of $11,531,084.  Net position changes as a result of operations, non‐operating revenues  and expenses, capital contributions and grants and donations.  The Collier County Water and Sewer District’s activities  represent the largest share of the increase in the business‐type net position.      For the year ended September 30, 2017, the Collier County Water and Sewer District (District) reported capital grants and  contributions of $24,474,866, which consists of water and sewer impact fees of $12,457,065, $11,641,549 in developer  infrastructure contributions and other capital contributions of $376,252.    2017 2016 County Water and Sewer (6,160,677)$         (2,710,740)$         Solid Waste Disposal 1,064,295            2,550,706             Emergency Medical Services (16,629,468)         (13,307,366)         Non‐major enterprise funds (11,314,788)         (11,419,753)         Total (33,040,638)$       (24,887,153)$       Net Operating Income/(Loss)    The Collier County Water and Sewer District’s net operating income decreased by $3,449,937 when compared to fiscal year  2016.  The decrease in net operating income was primarily the result of an 11.6% increase in total operating expenses,  including depreciation and amortization.  The District added twenty‐seven (27) full time equivalent positions during fiscal  year 2017.  In addition, the District incurred $7,545,041 in operating expenses directly related to Hurricane Irma.  County  Water and Sewer payments in lieu of taxes paid to the General Fund of $6,093,700 were reclassified from operating expense  to transfers in for financial statement purposes.  These payments are reclassified pursuant to generally accepted accounting  principles as the amount charged is not an approximation of services rendered.     The Solid Waste Disposal fund’s net operating income decreased by $1,486,411 when compared to fiscal year 2016.  The  decrease in net operating income was primarily the result of a 12.1%  increase  in  total  operating expenses,  including  12     depreciation and amortization.  Of this increase in operating expenses, $2,404,052 was related to Hurricane Irma debris  removal.  The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $295,500 were reclassified from  operating expense to transfers in for financial statement purposes.  These payments are reclassified pursuant to generally  accepted accounting principles as the amount charged is not an approximation of services rendered.    The Emergency Medical Services fund’s net operating income decreased by $3,322,102 when compared to fiscal year 2016.   The decrease in net operating income was the result of a 7.5% increase in total operating costs, coupled with a $1,357,233  decrease in charges for services.  Operating expenses increased mainly due to increased personal services costs, including  pension expense.  Charges for services decreased due to increased contractual rate adjustments and a lower overall collection  rates.      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 $2,487,056,931, 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 $17,334,066 when compared to the previous year.  There was an increase in the  governmental activities net capital assets of $9,657,309, or .6%, while the business‐type activities capital assets increased by  $7,676,757, or .8%.  The major capital asset activities during the current and previous fiscal years are as follows:       Capitalization as construction in process of $69,796,806 for governmental activity related costs including  $4,570,619 related to county wide 800 MHz system upgrades, $8,623,183 for improvements to Collier  Boulevard from Golden Gate Boulevard to Green Boulevard, $7,269,084 for various bridge improvement  projects, $2,846,228 for the Eagle Lakes Community Pool and $9,916,778 for improvements to Golden  Gate Boulevard from Wilson Boulevard to Everglades Boulevard.  A total of $7,782,682 was spent for  Immokalee Road betterment projects.  The remaining $28,788,232 is related to $13,618,619 in other  transportation projects, $3,395,877 in other physical environment projects, $5,753,378 in culture and  recreation projects and $6,020,358 in other capital projects.     The business‐type activities capitalized $33,556,924 of construction in process during fiscal year 2017  including $3,861,139 for utility force main transmission system improvements, $5,120,119 for master  pump systems improvements, $4,851,314 for Vanderbilt Drive utility improvements and $2,337,101 for  Naples Park basin improvements.   In addition, $2,058,639 was related to the Solid Waste Northeast  recycling  drop‐off  center  and  $1,228,172  for  the  Marco  Airport Apron  Upgrade.    The  remaining  $14,100,440 was made up of $11,847,164 in other County Water and Sewer projects, $387,464 in other  airport projects, $529,355 in other solid waste projects and $1,336,457 in various Mass Transit projects.      During fiscal year 2017, the Orange Tree Utility System was integrated, by merger, into the business‐type  activities.  As a result of this merger water and wastewater utility non‐depreciable assets of $57,002 and  depreciable  capital assets  with a  historical  cost  of  $10,057,625  and  accumulated  depreciation  of  $4,614,654 were recorded in the business‐type activities.     Developer donated water and wastewater infrastructure in fiscal year 2017 amounted to $11,641,549 and  $8,941,251 in fiscal year 2016.   Subdivisions are required to meet County standards when installing water  and wastewater services.  Once completed, these assets are donated to and accepted by the County.      Total purchases of land and non‐depreciable assets were $3,191,231 for fiscal year 2017, compared to  $5,908,695 for fiscal year 2016.  Fiscal year 2017 land purchases were primarily related to the acquisition  of land for various transportation projects.      Additional information regarding Collier County’s capital assets can be found in Note 5 beginning on page 53 of this report.     13     Debt Administration    At September 30, 2017, Collier County had total bonded debt, notes, loans and capital leases, of $482,748,437, a decrease of  $36,259,315 from the previous year.  The following table illustrates the balances of all bonds, notes, loans and capital leases,  net, for the fiscal years ended September 30, 2017 and 2016:    2017 2016 Limited General Obligation Bonds, net 2,499,190$         2,941,353$          Revenue Bonds, net 386,477,952       412,330,561        State Revolving Fund Loans ‐                             95,642,438          Miscellaneous Notes 92,590,646         5,909,058             Capital Leases 1,180,649            2,184,342               Total 482,748,437$     519,007,752$      Outstanding Debt    On November 17, 2016, the Collier County Water and Sewer District issued the Series 2016B Water and Sewer Refunding  Revenue Note in the par amount of $89,982,000 for the purpose of financing the current refunding of all of the District’s  outstanding State Revolving Fund Loans.      Collier County’s Special Obligation Revenue Bonds carry ratings of Aa2, AA+ and AA by Moody’s, Standard and Poor’s and  Fitch Ratings, Inc., respectively.  The County’s Series 2012 Gas Tax Revenue Bonds carry ratings of A2, A and AA‐ by Moody’s,  Standard and Poor’s and Fitch Ratings, Inc., respectively.  The Series 2014 Gas Tax Revenue Bonds were issued as a direct  placement with a commercial bank and therefore carry an implied rating of A2, A and AA‐ by Moody’s, Standard and Poor’s  and Fitch Ratings, Inc., respectively.  Collier County’s Water and Sewer Revenue Bonds carry ratings of Aa1 and AAA,  respectively, by Moody’s and Fitch Ratings, Inc.   The Series 2013 and 2015 County Water and Sewer Revenue Bonds issued  as direct placements with commercial banks and, as such, carry an implied rating of Aa1 and AAA by Moody’s and Fitch  Ratings, Inc., respectively.    The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit.  Further information  regarding Collier County’s long‐term debt can be found in Note 6 beginning on page 54 of this report.      General Fund Budgetary Highlights      During the current fiscal year, the General Fund expenditure appropriations increased by $11,852,951.  Significant variances  between the original budget and the final amended budget are listed below:     $345,000 increase in charges for services and Clerk of the Circuit Court’s capital outlay to recognize  additional revenues received and provide for additional data processing equipment.     $1,463,000 increase in charges for services and Sheriff’s personal services related to special detail duties.      $6,228,000 increase in Sheriff’s personal services and $562,000 in Sheriff’s operating due to Hurricane  Irma.     $750,000 increase in Sheriff’s capital outlay for acquisition of a helicopter.      $500,000 increase in intergovernmental revenue and Emergency Management Administration operating  due to Hurricane Irma.     $606,855 increase in Health Department operating due to re‐budgeting of lapsed appropriations from the  previous fiscal year as well as additional funding due to loss of State Medicaid matching funds.     $346,200 increase in Mental Health operating due to re‐budgeting of lapsed appropriations from the  previous fiscal year.    14     Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2017.   Tax revenues were under budget by $10,103,380 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 $1,578,229 in unspent budget related to goods and services contracted for  in 2017 that had not been received as of September 30, 2017 as well as a shift in focus from general operations to hurricane  recovery during September.      Economic Factors and Year 2018 Budgets and Rates     The following factors were taken into account in preparing the fiscal year 2018 budget:     A 7% increase in countywide taxable property values.     Millage neutral General Fund tax rate.     Expected year on year increases in sales tax and state shared revenues of .5% and 2%, respectively.     A 2.9% general wage adjustment along with a .6% market based pay plan maintenance component.       Expected expanded position requests limited to mission critical functions.     Maintain health care program contributions at 80% employer and 20% employee across all agencies  (excluding Sheriff and Tax Collector).    During fiscal year 2017, the General Fund unassigned fund balance increased by $844,159 to $54,805,103.  As of February 5,  2018, $53,646,900 of the fiscal year 2017 unassigned fund balance has been appropriated as carryforward for fiscal year  2018, with $28,535,165 budgeted in reserves.      Contact Information        This financial report is intended to give the user a general overview of Collier County Government’s finances.  Any questions  resulting from review of this information may be addressed to:    Collier County Clerk of the Circuit Court  Department of Finance and Accounting  3299 Tamiami Trail East, Suite #403  Naples, Florida 34112‐5746    Our office may also be contacted via the internet at www.collierclerk.com.   15 Governmental Business‐type Component Activities Activities Total Units ASSETS Current assets: Cash and investments 204,812,219$           199,929,119$         404,741,338$              212,716$             Cash with fiscal agent 11,592,085                ‐ 11,592,085                  ‐  Trade receivables, net 1,583,701                  15,173,982              16,757,683                  ‐  Special assessments receivable  ‐ 63,709 63,709 ‐  Interest receivable 440,226  522,004 962,230 ‐  Due from other governments 3,405,112                  532,536 3,937,648  ‐  Internal balances (2,550,712)                 2,550,712                ‐  ‐  Deposits 6,253 ‐ 6,253  ‐  Inventory 2,492,325                  4,745,959                7,238,284  ‐  Prepaid costs 80,763 61,312 142,075 ‐  Restricted assets:  Cash and investments 19,426,818                5,329,772                24,756,590                  ‐  Trade receivables, net 1,049,089                  28,949 1,078,038  ‐  Notes receivable 54,611 ‐ 54,611 ‐  Interest receivable 668,810  52,247 721,057 ‐  Due from other governments 18,100,604                1,615,153                19,715,757                  ‐  Deposits 1,875 ‐ 1,875  ‐  Inventory for resale 9,796,692                  ‐ 9,796,692  ‐  Total current assets 270,960,471             230,605,454            501,565,925                212,716                Noncurrent assets:  Restricted assets:  Cash and investments 293,664,610             31,191,808              324,856,418                ‐  Notes receivable 430,913  ‐ 430,913 ‐  Impact fee receivable 5,415,909                  ‐ 5,415,909  ‐  Special assessments receivable 1,405 12,412 13,817 ‐  Notes receivable 1,576,731                  ‐ 1,576,731  ‐  Unamortized bond insurance 10,588 ‐ 10,588 ‐  Capital assets:  Land and non‐depreciable capital assets  504,123,324             97,791,245              601,914,569                ‐  Depreciable capital assets, net 1,070,458,684          814,683,678            1,885,142,362             ‐  Total noncurrent assets 1,875,682,164          943,679,143            2,819,361,307             ‐  Total assets 2,146,642,635          1,174,284,597        3,320,927,232             212,716                DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings  11,349,043                4,487,329                15,836,372                  ‐  Deferred outflows of resources related to OPEB 83,607 ‐ 83,607 ‐  Deferred outflows of resources related to pensions  110,128,050             21,895,880              132,023,930                ‐  Total deferred outflows of resources 121,560,700$           26,383,209$            147,943,909$              ‐$  Primary Government COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2017 The notes to the financial statements are an integral part of this statement.   16 Governmental Business‐type Component Activities Activities Total Units LIABILITIES Current liabilities:  Accounts payable 13,460,821$             21,830,364$            35,291,185$                ‐$                           Wages payable 10,075,568                2,091,177                12,166,745                  ‐                             Retainage payable 1,187,275                  1,668,764                2,856,039                     ‐                             Due to other governments 2,903,642                  47,747                      2,951,389                     ‐                             Self‐insurance claims payable 6,170,602                  ‐                                 6,170,602                     ‐                             Compensated absences 9,733,275                  2,353,390                12,086,665                  ‐                             Capital lease obligations 87,075                        343,947                    431,022                        ‐                             Notes payable 456,891                      7,180,500                7,637,391                     ‐                             Unearned revenue 375,017                      46,750                      421,767                        ‐                             Net pension liability 1,951,922                  310,733                    2,262,655                     ‐                             Interest payable 4,583,436                  ‐                                 4,583,436                     ‐                             Bonds and loans payable 21,115,000                2,976,046                24,091,046                  ‐                             Liabilities payable from restricted assets:  Accounts payable 9,444,457                  706,748                    10,151,205                  ‐                             Wages payable 1,379,803                  ‐                                 1,379,803                     ‐                             Retainage payable 3,856,659                  161,138                    4,017,797                     ‐                             Refundable deposits 1,165,383                  82,851                      1,248,234                     ‐                             Interest payable ‐                                   1,081,991                1,081,991                     ‐                             Due to other governments 4,561,537                  50,234                      4,611,771                     ‐                             Unearned revenue ‐                                   160,810                    160,810                        ‐                             Notes payable ‐                                   2,459,057                2,459,057                     ‐                             Bonds and loans payable ‐                                   992,015                    992,015                        ‐                             Total current liabilities 92,508,363                44,544,262              137,052,625                ‐                             Noncurrent liabilities:  Self‐insurance claims payable 2,314,157                  ‐                                 2,314,157                     ‐                             Compensated absences 18,735,891                588,347                    19,324,238                  ‐                             Capital lease obligations 228,726                      520,901                    749,627                        ‐                             Landfill post‐closure liability ‐                                   1,777,319                1,777,319                     ‐                             Total OPEB liability 24,636,856                2,456,706                27,093,562                  ‐                             Net pension liability 253,330,774             51,217,115              304,547,889                ‐                             Notes payable 4,615,198                  77,879,000              82,494,198                  ‐                             Bonds and loans payable, net 287,686,404             76,207,677              363,894,081                ‐                             Total noncurrent liabilities 591,548,006             210,647,065            802,195,071                ‐                             Total liabilities 684,056,369             255,191,327            939,247,696                ‐                             DEFERRED INFLOWS OF RESOURCES  Deferred inflows of resources related to OPEB 6,137                          2,121                        8,258                             ‐                             Deferred inflows of resources related to pensions  13,545,057                2,341,529                15,886,586                  ‐                             Total deferred inflows of resources 13,551,194                2,343,650                15,894,844                  ‐                             NET POSITION  Net investment in capital assets 1,257,684,416          741,912,315            1,999,596,731             ‐                             Restricted for:  Growth related capital expansion 95,462,590                23,875,468              119,338,058                ‐                             Transportation capital projects 45,218,462                ‐                                 45,218,462                  ‐                             Community development 41,019,554                ‐                                 41,019,554                  ‐                             Tourist development 70,505,097                ‐                                 70,505,097                  ‐                             Conservation 32,975,606                ‐                                 32,975,606                  ‐                             Community redevelopment 11,516,220                ‐                                 11,516,220                  ‐                             Grants 14,930,727                1,344,819                16,275,546                  ‐                             Debt service 514,666                      7,098,843                7,613,509                     ‐                             Court programs 11,370,506                11,370,506                  ‐                             Public safety 7,218,485                  7,218,485                     ‐                             Nonexpendable purposes ‐ other 1,582,800                  ‐                                 1,582,800                     ‐                             Special revenues ‐ other 4,607,276                  ‐                                 4,607,276                     ‐                             Renewal and replacement ‐                                   300,000                    300,000                        ‐                             Unrestricted (24,010,633)              168,601,384            144,590,751                212,716                Total net position 1,570,595,772$        943,132,829$         2,513,728,601$          212,716$             Primary Government 17 Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Primary Government:  Governmental Activities:  General government  108,388,277$      33,376,981$         1,349,204$           2,515,550$           Public safety  225,360,353         24,240,055           3,711,304             3,298,046             Physical environment  17,892,853           909,015                 2,608,281             1,467,966             Transportation  75,588,705           2,023,556             10,575,755           20,108,829           Economic environment  8,494,380             58,578                   5,199,617             22,103                   Human services  15,511,965           498,852                 2,851,552             621,470                 Culture and recreation  51,889,208           8,192,330             243,731                 10,090,298           Interest and fiscal charges  11,293,496           ‐                              ‐                              ‐                              Total governmental activities 514,419,237         69,299,367         26,539,444         38,124,262         Business‐type Activities:  Water and sewer  144,850,747         135,045,020         ‐                              24,474,866           Solid waste  43,663,862           45,209,080           135,654                 ‐                              Emergency medical services  28,643,544           11,812,297           438,843                 ‐                              Airport authority  4,904,415             3,733,371             ‐                              1,605,092             Mass transit  11,354,348           1,267,175           4,450,120           913,193                Total business‐type activities 233,416,916         197,066,943         5,024,617             26,993,151           Total primary government 747,836,153         266,366,310         31,564,061           65,117,413           Component Units:  Industrial Development Authority   2,850$                   2,550$                   ‐$                            ‐$                            Health Facilities Authority   62,734                   50                           ‐                              ‐                              Housing Finance Authority   3,911                    50                          ‐                             ‐                              Educational Facilities Authority  12,850                  50                          ‐                             ‐                              Total component units 82,345$                2,700$                 ‐$                          ‐$                            General revenues:  Property taxes  Gas taxes  Sales tax Tourist taxes  Communications services tax  State revenue sharing  Other taxes  Interest income  Miscellaneous  Transfers, net    Total general revenues and transfers  Change in net position  Net position ‐ beginning as previously stated Restatement of net position due to merger Restatement of net position due to     implementation of GASB 75 Net position ‐ beginning as restated Net position ‐ ending  The notes to the financial statements are an integral part of this statement.   FUNCTIONS/PROGRAMS  COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 Program Revenues 18 Governmental Business‐type Component Activities Activities Total Units (71,146,542)$         ‐$                            (71,146,542)$         ‐$                      (194,110,948)         ‐                              (194,110,948)         ‐                         (12,907,591)           ‐                              (12,907,591)           ‐                         (42,880,565)           ‐                              (42,880,565)           ‐                         (3,214,082)             ‐                              (3,214,082)             ‐                         (11,540,091)           ‐                              (11,540,091)           ‐                         (33,362,849)           ‐                              (33,362,849)           ‐                         (11,293,496)           ‐                              (11,293,496)           ‐                         (380,456,164)         ‐                              (380,456,164)         ‐                       ‐                                14,669,139          14,669,139            ‐                         ‐                                1,680,872            1,680,872              ‐                         ‐                                (16,392,404)         (16,392,404)           ‐                         ‐                               434,048                434,048                  ‐                         ‐                                (4,723,860)           (4,723,860)             ‐                       ‐                                (4,332,205)           (4,332,205)             ‐                         (380,456,164)         (4,332,205)           (384,788,369)         ‐                         (300)$                (62,684)            (3,861)              (12,800)            (79,645)$         312,632,590          ‐                              312,632,590          ‐                         21,798,588            ‐                              21,798,588            ‐                         41,798,943            ‐                             41,798,943            ‐                         21,961,389            ‐                              21,961,389            ‐                         5,084,037              ‐                             5,084,037              ‐                         11,602,055            ‐                              11,602,055            ‐                         2,394,290              ‐                             2,394,290              ‐                         3,573,610              1,379,093            4,952,703              73                     9,714,512              126,181                9,840,693              ‐                         (14,792,495)           14,792,495          ‐                               ‐                         415,767,519          16,297,769          432,065,288          73                     35,311,355            11,965,564          47,276,919            (79,572)            1,555,966,436      928,046,945        2,484,013,381      292,288           ‐                                5,502,450            5,502,450              ‐                         (20,682,019)           (2,382,130)           (23,064,149)           ‐                         1,535,284,417      931,167,265        2,466,451,682      292,288           1,570,595,772$    943,132,829$     2,513,728,601$    212,716$        Net (Expense) Revenue and Changes in Net Position Primary Government 19 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds ASSETS  Cash and investments  76,738,512$      1,834,148$       513,765$           377,432,687$    456,519,112$     Cash with fiscal agent ‐                           ‐                           ‐                            11,592,085         11,592,085          Receivables:  Interest 152,476             3,860                  1,136                  828,314              985,786               Trade, net 503,391             ‐                           ‐                            1,710,911           2,214,302            Notes 1,576,731          ‐                           ‐                            485,524              2,062,255            Impact Fee ‐                           ‐                           ‐                            5,415,909           5,415,909            Special assessments ‐                           ‐                           ‐                           1,405                   1,405                    Due from other funds 476,567             ‐                           ‐                            11,954,875         12,431,442          Due from other governments 2,878,059          ‐                           ‐                            18,533,292         21,411,351          Deposits 6,253                  ‐                           625                     1,250                   8,128                    Inventory for resale ‐                            9,566,959          ‐                            229,733              9,796,692            Inventory 1,357,822          ‐                           ‐                            802,254              2,160,076            Advances to other funds 416,000             ‐                           ‐                            337,701              753,701               Prepaid costs 35,763               ‐                           ‐                           ‐                            35,763                  Total assets 84,141,574$    11,404,967$    515,526$          429,325,940$    525,388,007$    LIABILITIES, DEFERRED INFLOWS OF  RESOURCES AND FUND BALANCES  Liabilities:  Accounts payable 8,591,918$       114,152$           24$                      12,223,874$      20,929,968$       Wages payable 9,068,790          13,595               10,310               2,106,366           11,199,061          Due to other funds 710,836             129,603             2,500                  11,650,981         12,493,920          Due to other governments 2,401,867          150                     ‐                            5,063,162           7,465,179            Unearned revenues 20                       ‐                           ‐                            365,713              365,733               Refundable deposits 1,100,948          1,500                  ‐                           62,935                 1,165,383            Retainage payable ‐                           26,373               ‐                            5,017,561           5,043,934            Advances from other funds ‐                           ‐                            208,901             1,377,600           1,586,501            Total liabilities 21,874,379       285,373             221,735             37,868,192         60,249,679          Deferred inflows of resources:  Unavailable revenue 37,744               ‐                           ‐                            5,458,250           5,495,994            Fund balances:   Nonspendable 3,386,316          ‐                           ‐                            2,385,054           5,771,370            Restricted 2,439,787          11,119,594       293,791             317,033,646      330,886,818       Committed ‐                           ‐                           ‐                            32,758,821         32,758,821          Assigned 1,598,245          ‐                           ‐                            33,821,977         35,420,222          Unassigned 54,805,103       ‐                           ‐                           ‐                             54,805,103          Total fund balances  62,229,451       11,119,594       293,791             385,999,498      459,642,334       Total liabilities, deferred inflows of   resources and fund balances   84,141,574$    11,404,967$    515,526$          429,325,940$    525,388,007$    The notes to the financial statements are an integral part of this statement.   COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2017 20 459,642,334$         Land and other non‐depreciable assets  420,184,753$      Construction in progress  83,938,571           Depreciable assets, net of $927,741,808 in accumulated depreciation  1,052,339,550     1,556,462,874       10,588                     5,495,994               413,383                   Accrued interest on bonds  (4,583,436)$         Bonds and notes payable  (300,002,089)       Capital lease obligations  (315,801)               Compensated absences  (27,963,959)         Total OPEB liability (24,310,308)         Pension liability  (250,115,056)       Unamortized premium  (13,871,404)         (621,162,053)          11,349,043             83,607                     108,025,692           (5,855)                      (13,290,606)            63,570,771             Total net position ‐ governmental activities 1,570,595,772$     The notes to the financial statements are an integral part of this statement.  OPEB deferred inflows  Fund balances ‐ total governmental funds  Capital assets used in governmental activities are not financial resources and therefore are     Internal service funds are used by the County to charge self‐insurance, fleet management and  information technology services to individual funds.  The assets, deferred outflows, liabilities and  deferred inflows of the internal service funds are included in governmental activities in the statement  of net position.  Internal service fund net position is: Certain long‐term assets are not financial resources and therefore are not reported in the   governmental funds ‐ unamortized bond insurance premium. Certain revenues will be collected after year‐end, but are not available to pay for the current period's  expenditures, and therefore are reported as deferred inflows in the funds. Certain liabilities applicable to the County's governmental activities are not due and payable in the  current period and accordingly are not reported as fund liabilities.  Interest on long‐term debt is not  accrued in the governmental funds, but is recognized as an expenditure when due.  All liabilities are  reported in the statement of net position.  Balances at September 30, 2017 are: Unamortized deferred charges on refunding   OPEB deferred outflows  not reported in the funds.  Those assets consist of:   Pension deferred outflows  Pension deferred inflows  Insurance recovery for asset impairment will be collected after year‐end and is recorded as a  receivable in the statement of net position  COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2017 Differences in amounts reported for governmental activities in the statement of net position on pages 16‐17: 21 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds Revenues: Taxes 263,614,045$     1,292,600$            544,600$               90,433,161$         355,884,406$      Licenses, permits and impact fees 281,351               ‐                                1,108                     58,934,473           59,216,932          Intergovernmental 55,298,792         ‐                                ‐                               31,357,350           86,656,142          Charges for services 17,067,279         56,076                    1,802                     16,882,967           34,008,124          Fines and forfeitures 300,107               ‐                                ‐                               1,963,297             2,263,404             Interest income 837,039               9,474                       3,182                     2,382,859             3,232,554             Special assessments ‐                             ‐                                ‐                               4,350,323             4,350,323             Miscellaneous 2,386,323            78,613                    ‐                               6,239,853             8,704,789             Total revenues 339,784,936       1,436,763               550,692                 212,544,283         554,316,674        Expenditures: Current: General government 61,108,697         ‐                                ‐                               28,083,981           89,192,678          Public safety 165,755,765       ‐                                ‐                               32,006,713           197,762,478        Physical environment 883,540               ‐                                ‐                               11,581,265           12,464,805          Transportation 319,032               ‐                                ‐                               40,683,632           41,002,664          Economic environment 2,079,708            424,977                  422,969                 5,270,857             8,198,511             Human services 11,395,607         ‐                                ‐                               3,661,921             15,057,528          Culture and recreation 15,611,130         ‐                                ‐                               27,277,893           42,889,023          Debt service Principal 598,641               ‐                                ‐                               20,840,456           21,439,097          Interest 34,868                 ‐                                ‐                               11,873,473           11,908,341          Redemption of debt ‐                             ‐                                ‐                               5,588,423             5,588,423             Fiscal charges ‐                             ‐                                ‐                              47,659                   47,659                  Capital outlay 10,115,870         305,892                  6,136                     70,067,338           80,495,236          Total expenditures 267,902,858       730,869                  429,105                 256,983,611         526,046,443        Excess (deficit) of revenues    over (under) expenditures 71,882,078         705,894                  121,587                 (44,439,328)          28,270,231          Other financing sources (uses): Notes issued ‐                             ‐                                ‐                               5,293,293             5,293,293             Sale of capital assets 130,885               ‐                                ‐                              24,233                   155,118                Insurance proceeds 223,750               ‐                                ‐                              114,772                 338,522                Transfers in 11,316,472         136,800                  85,000                   106,294,697         117,832,969        Transfers out (80,897,267)        (85,500)                   ‐                               (52,851,697)          (133,834,464)       Total other financing sources (uses)  (69,226,160)        51,300                    85,000                   58,875,298           (10,214,562)         Net change in fund balances 2,655,918            757,194                  206,587                 14,435,970           18,055,669          Fund balances at beginning of year 59,573,533         10,362,400            87,204                   371,563,528         441,586,665        Fund balances at end of year 62,229,451$       11,119,594$         293,791$              385,999,498$       459,642,334$     COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 The notes to the financial statements are an integral part of this statement.  22 18,055,669$           Capital outlay  80,495,236$        Depreciation expense  (72,734,984)         7,760,252               645,913                   (2,039)                      (431,096)                  869,375                   Bond and loan principal payments  21,112,714$        Payments on capital lease obligations  621,513                21,734,227             Compensated absences  (1,821,115)$         OPEB expense (19,135)                 Pension expense  (18,351,623)         Accrued interest on bonds and loans  313,108                Amortization of bond insurance premium  (2,491)                    Amortization of deferred charges on refunding  (1,098,048)            Amortization of premium  1,449,935             (19,529,369)            6,208,423               Change in net position ‐ governmental activities  35,311,355$           net position the cost of these assets is allocated over their estimate useful lives and  reported as depreciation expense.   governmental funds as there is no flow of current financial resources.   The notes to the financial statements are an integral part of this statement.   COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Differences in amounts reported for governmental activities in the statement of activities on pages 18‐19:   Repayment of principal on long‐term debt is an expenditure in governmental funds, but a reduction of long‐term liabilities in the statement of net position.  The net revenues of internal service funds are reported with governmental activities.  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds.  Governmental funds report capital outlays as expenditures.  However, in the statement of   Donations of capital assets are not financial resources to governmental funds, but receiving  donated assets increases net position in the statement of net position.  Capital assets transferred to and from proprietary funds are not recorded in the   In the statement of net position, the gain or loss on the sale of capital assets is reported.   However, in the governmental funds the proceeds from the sale of capital assets increase  financial resources.  The change in net position differs from the change in fund balances by the  net book value of assets disposed.  Certain revenues not considered available are not recognized in the governmental funds  but are included in the statement of activities.  Net change in fund balances ‐ total governmental funds  23 Original Final Budget Budget Actual Variance Revenues: Taxes 273,760,700$        273,760,700$       263,657,320$        (10,103,380)$       Licenses, permits and impact fees 304,000                  304,000                  281,351                  (22,649)                 Intergovernmental 50,403,000            50,904,027            55,298,792            4,394,765             Charges for services 19,397,049            21,469,350            17,067,279            (4,402,071)           Fines and forfeitures 491,500                  491,500                  300,107                  (191,393)               Interest income 802,100                  827,100                  1,296,904              469,804                Miscellaneous 8,334,200              8,397,008              10,243,006            1,845,998             Total revenues 353,492,549          356,153,685          348,144,759          (8,008,926)           Expenditures: Current: General government Board of County Commissioners personal services 1,177,100              1,177,100              1,077,253              99,847                  Board of County Commissioners operating 95,600 95,600 76,234 19,366                  County manager administrative personal services 988,900                  988,900                  942,925                  45,975                  County manager administrative operating 60,900 60,900 46,374 14,526                  Corporate planning and performance improvements personal services 581,800                  581,800                  548,473                  33,327                  Corporate planning and performance improvements operating 41,600 41,600 9,290  32,310                  Budget and management personal services 683,100                  683,100                  576,683                  106,417                Budget and management operating 88,900 81,868 47,123 34,745                  Budget and management capital outlay ‐  2,832 2,756  76  Administrative services personal services 2,542,300              2,615,049              2,551,191              63,858                  Administrative services operating 292,200                  292,200                  169,921                  122,279                Administrative services capital outlay 15,000 4,200 4,134  66  Human resources administration personal services 1,457,100              1,457,100              1,405,747              51,353                  Human resources administration operating 704,900                  700,200                  447,925                  252,275                Human resources administration capital outlay 6,500  6,500 5,512  988  Clerk of the Circuit Court personal services 7,219,500              6,940,900              6,833,684              107,216                Clerk of the Circuit Court operating 2,115,700              2,347,300              2,158,896              188,404                Clerk of the Circuit Court capital outlay 224,400                  569,400                  562,174                  7,226  Property Appraiser personal services 5,427,955              5,230,800              5,269,406              (38,606)                 Property Appraiser operating 1,610,534              1,717,189              1,730,282              (13,093)                 Property Appraiser capital outlay 25,000 115,500                  95,721 19,779                  Tax Collector personal services 10,798,666            10,729,666            10,507,089            222,577                Tax Collector operating 3,353,155              3,422,155              3,082,187              339,968                Tax Collector capital outlay 1,932,462              1,932,462              1,774,740              157,722                                                                                                         County attorney personal services 2,236,900              2,254,400              2,238,659              15,741                  County attorney operating 395,600                  593,844                  256,096                  337,748                County attorney capital outlay 5,000  5,000 ‐  5,000  Natural resource planning operating 101,100                  103,140                  103,140                  ‐   Circuit court operating 34,200 34,200 32,505 1,695  County court operating 22,800 22,800 21,303 1,497  State Attorney operating 276,200                  276,200                  271,232                  4,968  Public Defender operating 242,000                  242,000                  227,298                  14,702                  Other general administrative personal services 200,000                  65,700 14,052 51,648                  Other general administrative operating 7,396,500              7,290,210              5,264,378              2,025,832             Facilities management personal services 4,923,500              5,095,701              5,095,048              653  Facilities management operating 8,310,800              8,583,625              8,696,983              (113,358)               Facilities management capital outlay 78,300 127,996                  140,166                  (12,170)                 Sheriff personal services 3,951,000              4,161,000              4,494,939              (333,939)               Sheriff operating 177,700                  177,700                  77,948 99,752                  COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 24   Original Final Budget Budget Actual Variance Supervisor of Elections personal services 2,149,200$            2,166,700$            2,055,127$            111,573$              Supervisor of Elections operating 1,509,300              1,467,764              1,373,091              94,673                  Supervisor of Elections capital outlay 30,000                    46,990                    46,987                    3                             Public services operations personal services 353,800                  355,500                  354,204                  1,296                     Public services operations operating 15,900                    15,900                    14,705                    1,195                     Public services operations capital outlay 2,600                       1,378                      1,378                       ‐                              Real property management personal services 674,500                  656,300                  654,083                  2,217                     Real property management operating 38,500                    38,500                    34,248                    4,252                       Total general government 74,568,672            75,576,869            71,393,290            4,183,579             Public safety Sheriff personal services 128,368,500          136,059,500          136,789,755          (730,255)               Sheriff operating 28,842,400            29,404,400            24,598,255            4,806,145             Sheriff capital outlay 5,321,600              6,071,600              6,826,095              (754,495)               Emergency management administration personal services 881,800                  961,700                  961,663                  37                          Emergency management administration operating 694,700                  1,267,000              717,450                  549,550                Helicopter operations personal services 866,100                  866,100                  791,714                  74,386                  Helicopter operations operating 874,700                  847,300                  648,770                  198,530                Helicopter operations capital outlay 2,000                       4,000                      3,850                       150                        Medical examiner services operating 1,284,100              1,284,100              1,281,658              2,442                     Medical examiner services capital outlay ‐                                18,350                    ‐                                18,350                    Total public safety 167,135,900          176,784,050          172,619,210          4,164,840             Physical environment Conservation and resource management personal services 737,100                  754,600                  714,018                  40,582                  Conservation and resource management operating 170,800                  163,300                  150,392                  12,908                  Conservation and resource management capital outlay ‐                                7,500                      7,105                       395                        Immokalee cemetery operating 22,800                    22,800                    19,130                    3,670                       Total physical environment 930,700                  948,200                  890,645                  57,555                  Transportation Alternative transportation modes personal services 248,600                  311,550                  299,991                  11,559                  Alternative transportation modes operating 26,400                    26,400                    19,041                    7,359                       Total transportation 275,000                  337,950                  319,032                  18,918                  Economic environment Veterans services personal services 337,300                  339,200                  338,125                  1,075                     Veterans services operating 35,300                    34,796                    32,369                    2,427                     Veterans services capital outlay ‐                                3,185                      3,185                       ‐                              Economic development personal services 391,600                  402,550                  401,802                  748                        Economic development operating 1,633,100              1,645,336              1,307,412              337,924                Economic development capital outlay 2,000                       28,535                    1,279                       27,256                    Total economic environment 2,399,300              2,453,602              2,084,172              369,430                Human services Health Care Responsibility Act operating 46,100                    46,100                    ‐                                46,100                  Domestic animal services personal services 2,184,900              2,186,600              2,139,772              46,828                  Domestic animal services operating 946,500                  1,020,419              854,539                  165,880                Domestic animal services capital outlay 114,800                  124,552                  58,758                    65,794                                                                                                             Health department operating 1,822,000              2,428,855              1,978,111              450,744                Mental health operating 1,649,400              1,995,600              1,649,400              346,200                Client assistance personal services 818,200                  818,200                  776,296                  41,904                  Client assistance operating 4,538,100              4,557,260              3,631,335              925,925                Client assistance capital outlay 4,000                       5,141                      5,038                       103                        (continued) COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 25   Original Final Budget Budget Actual Variance Public services division office personal services 320,800$                320,800$               308,370$                12,430$                Public services division office operating 32,900                    40,766                    33,364                    7,402                     Public services division office capital outlay 3,000                       2,756                      2,756                       ‐                                Total human services 12,480,700            13,547,049            11,437,739            2,109,310             Culture and recreation Library administration personal services 5,491,200              5,491,200              5,115,502              375,698                Library administration operating 2,285,300              2,281,800              2,208,981              72,819                  Library administration capital outlay 50,000                    50,000                    50,000                    ‐                              Beach and water park operations personal services 3,464,100              3,481,100              3,256,285              224,815                Beach and water park operations operating 2,715,000              2,689,869              2,095,747              594,122                Beach and water park operations capital outlay ‐                                53,938                    21,911                    32,027                  Parks maintenance personal service 1,263,300              1,287,500              1,260,102              27,398                  Parks maintenance operating 2,311,900              1,971,066              1,680,650              290,416                Parks maintenance capital outlay 133,200                  403,030                  234,516                  168,514                  Total culture and recreation 17,714,000            17,709,503            15,923,694            1,785,809               Total expenditures 275,504,272          287,357,223          274,667,782          12,689,441            Excess of revenues over expenditures 77,988,277            68,796,462            73,476,977            4,680,515             Other financing sources (uses): Sale of capital assets ‐                                ‐                               124,156                  124,156                Insurance proceeds ‐                                752                          4,806                       4,054                     Transfers in 6,763,523              6,756,201              11,464,372            4,708,171             Transfers out (80,006,500)           (82,536,968)          (81,147,267)           1,389,701               Total other financing sources (uses) (73,242,977)           (75,780,015)          (69,553,933)           6,226,082               Net change in fund balance 4,745,300              (6,983,553)             3,923,044              10,906,597            Fund balance at beginning of year 48,199,500            50,136,649            50,136,649            ‐                                Fund balance at end of year 52,944,800$          43,153,096$          54,059,693$          10,906,597$        Reconciliation:     Net change in fund balance, budgetary basis 3,923,044$                     Ad valorem tax refunds not budgeted (43,275)                            Net change in fair value of investments (459,865)                          Miscellaneous revenue related to indirect cost (7,860,800)                      Miscellaneous revenue related to Sheriff assets not budgeted 4,117                                Change in inventory (129,196)                          General government expenditures related to indirect cost 7,860,800                       Public safety expenditures for multi‐period projects not budgeted (486,890)                          Public safety capital outlay funded by outside sources not budgeted (229,790)                          Insurance proceeds related to Sheriff assets not budgeted 218,944                           Proceeds from sale of Sheriff assets not budgeted 6,729                                Advances budgeted as transfers (147,900)                      Net change in fund balance, GAAP basis 2,655,918$             The notes to the financial statements are an integral part of this statement.  STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 COLLIER COUNTY, FLORIDA GENERAL FUND 26 Original Final Budget Budget Actual Variance Revenues: Taxes 1,292,600$         1,292,600$            1,292,600$           ‐$                           Intergovernmental ‐                             117,000                  ‐                               (117,000)               Charges for services ‐                             680,000                  56,076                   (623,924)               Interest income 7,800                    7,800                       16,509                   8,709                     Miscellaneous 62,400                 62,400                    78,613                   16,213                  Total revenues 1,362,800            2,159,800               1,443,798             (716,002)               Expenditures: Economic environment Personal services 277,400               277,400                  251,734                 25,666                  Operating 365,100               418,884                  173,243                 245,641                Capital outlay ‐                             787,000                  305,892                 481,108                Total expenditures 642,500               1,483,284               730,869                 752,415                Excess of revenues over expenditures 720,300               676,516                  712,929                 36,413                  Other financing sources (uses): Transfers in 136,800               136,800                  136,929                 129                        Transfers out (832,800)              (832,800)                 (85,629)                  747,171                Total other financing sources (uses) (696,000)              (696,000)                 51,300                   747,300                Net change in fund balances 24,300                 (19,484)                   764,229                 783,713                Fund balances at beginning of year 775,100               818,884                  818,884                 ‐                              Fund balances at end of year 799,400$            799,400$               1,583,113$          783,713$              Reconciliation:   Net change in fund balance, budgetary basis  764,229$                Net change in fair value of investments (7,035)                     Net change in fund balance, GAAP basis 757,194$               The notes to the financial statements are an integral part of this statement.  COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 27 Original Final Budget Budget Actual Variance Revenues: Taxes 544,600$             544,600$                544,600$               ‐$                           Intergovernmental ‐                             ‐                                1,108                     1,108                     Charges for services ‐                             600,000                  1,802                     (598,198)               Interest income 2,000                    2,000                       5,542                     3,542                     Total revenues 546,600               1,146,600               553,052                 (593,548)               Expenditures: Economic environment Personal services 245,400               245,400                  234,909                 10,491                  Operating 270,200               290,200                  188,060                 102,140                Capital outlay 5,000                    795,495                  6,136                     789,359                Total expenditures 520,600               1,331,095               429,105                 901,990                Excess (deficit) of revenues    over (under) expenditures 26,000                 (184,495)                 123,947                 308,442                Other financing sources (uses): Transfers in 85,000                 85,000                    85,000                   ‐                              Transfers out (30,000)                (30,000)                   (30,000)                  ‐                              Total other financing sources (uses) 55,000                 55,000                    55,000                   ‐                              Net change in fund balances 81,000                 (129,495)                 178,947                 308,442                Fund balances at beginning of year 268,100               268,100                  268,100                 ‐                              Fund balances at end of year 349,100$            138,605$               447,047$              308,442$              Reconciliation:   Net change in fund balance, budgetary basis  178,947$                Net change in fair value of investments (2,360)                     Advances budgeted as transfers  30,000                    Net change in fund balance, GAAP basis  206,587$               The notes to the financial statements are an integral part of this statement.   COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 28 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Current assets: Cash and investments 153,747,496$      28,550,782$     13,741,903$   3,888,938$       199,929,119$      61,384,535$        Receivables: Trade, net 12,078,161           1,287,271         1,680,708       127,842             15,173,982           5,105                    Special assessments 30,499                   ‐                          33,210             ‐                          63,709                   ‐                             Interest 341,858                173,250             ‐                        6,896                 522,004                123,250                Due from other funds ‐                              36,829               3,656               26,233               66,718                   65,436                  Due from other governments 409,014                30,152               93,370             ‐                          532,536                94,365                  Inventory 4,635,225             ‐                          20,393             90,341               4,745,959             332,249                Prepaid costs ‐                              ‐                          61,312             ‐                          61,312                   45,000                  Restricted assets: Cash and investments 4,755,055             132,963             196,347           245,407             5,329,772             ‐                             Trade, net 28,949                   ‐                          ‐                        ‐                          28,949                   ‐                             Interest receivable 51,864                   ‐                          383                   ‐                          52,247                   ‐                             Due from other governments 37,500                   ‐                          ‐                        1,577,653         1,615,153             ‐                             Total current assets 176,115,621        30,211,247       15,831,282     5,963,310         228,121,460        62,049,940          Noncurrent assets: Restricted assets: Cash and investments 31,191,808          ‐                         ‐                       ‐                         31,191,808          ‐                             Receivables: Special assessments 12,412                  ‐                         ‐                       ‐                         12,412                  ‐                             Advances to other funds 511,025               321,775            ‐                       ‐                          832,800               ‐                             Capital assets: Land and nondepreciable capital assets 77,441,211          10,862,770      ‐                        9,487,264        97,791,245          ‐                             Depreciable capital assets, net 736,851,956       21,973,508      7,448,469      48,409,745      814,683,678       18,119,134          Total noncurrent assets 846,008,412       33,158,053      7,448,469      57,897,009      944,511,943       18,119,134          Total assets 1,022,124,033    63,369,300      23,279,751    63,860,319      1,172,633,403    80,169,074          Deferred charges on debt refundings 4,487,329            ‐                         ‐                       ‐                          4,487,329            ‐                             Deferred outflows of resources related to pensions 8,620,033            716,918            12,232,263    326,666            21,895,880          2,102,358            Total deferred outflows of resources 13,107,362          716,918            12,232,263    326,666            26,383,209          2,102,358            (Continued) COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2017 Business‐type Activities Enterprise Funds ASSETS DEFERRED OUTFLOWS OF RESOURCES 29 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds LIABILITIES Current liabilities: Accounts payable 15,886,811$        5,098,526$       276,368$        568,659$          21,830,364$        1,975,310$          Wages payable 1,272,140             137,080             639,562           42,395               2,091,177             256,310                Retainage payable 1,491,382             177,382             ‐                        ‐                          1,668,764             ‐                             Due to other funds ‐                              ‐                          12,536             9,200                 21,736                   47,940                  Due to other governments 43,632                   493                     ‐                        3,622                 47,747                   ‐                             Unearned revenues ‐                              ‐                          ‐                        46,750               46,750                   9,284                    Self‐insurance claims payable ‐                              ‐                          ‐                        ‐                          ‐                              6,170,602            Compensated absences 1,598,925             154,242             559,333           40,890               2,353,390             404,166                Capital lease obligations ‐                              ‐                          343,947           ‐                          343,947                ‐                             Net pension liability 194,083                15,807               91,739             9,104                 310,733                41,218                  Notes payable 7,180,500             ‐                          ‐                        ‐                          7,180,500             ‐                             Bonds and loans payable 2,976,046             ‐                          ‐                        ‐                          2,976,046             ‐                             Liabilities payable from restricted assets:  Accounts payable 116,472                ‐                          ‐                        590,276             706,748                ‐                             Retainage payable 69,995                   ‐                         ‐                       91,143              161,138               ‐                             Due to other governments ‐                             ‐                         ‐                        50,234              50,234                  ‐                             Refundable deposits 73,025                  ‐                         ‐                       9,826                82,851                  ‐                             Unearned revenue ‐                              132,963            ‐                        27,847              160,810               ‐                             Interest payable 1,081,991            ‐                         ‐                       ‐                          1,081,991            ‐                             Notes payable 2,459,057            ‐                         ‐                       ‐                          2,459,057            ‐                             Bonds and loans payable 992,015               ‐                         ‐                       ‐                          992,015               ‐                             Total current liabilities 35,436,074          5,716,493        1,923,485      1,489,946        44,565,998          8,904,830            Noncurrent liabilities: Self‐insurance claims payable ‐                             ‐                         ‐                       ‐                         ‐                              2,314,157            Compensated absences 399,731               38,560              139,834          10,222              588,347               101,041                Capital lease obligations ‐                             ‐                          520,901          ‐                          520,901               ‐                             Total OPEB liability 1,534,018            125,303            725,241          72,144              2,456,706            326,548                Net pension liability 21,479,238          1,780,261        27,111,563    846,053            51,217,115          5,126,422            Landfill post‐closure liability ‐                              1,777,319        ‐                       ‐                          1,777,319            ‐                             Notes payable 77,879,000          ‐                         ‐                       ‐                          77,879,000          ‐                             Bonds and loans payable, net 76,207,677          ‐                         ‐                       ‐                          76,207,677          ‐                             Total noncurrent liabilities 177,499,664       3,721,443        28,497,539    928,419            210,647,065       7,868,168            Total liabilities 212,935,738       9,437,936        30,421,024    2,418,365        255,213,063       16,772,998          DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 1,325                    108                    626                  62                      2,121                    282                        Deferred inflows of resources related to pensions 1,108,574            91,327              1,095,066      46,562              2,341,529            254,451                Total deferred inflows of resources 1,109,899            91,435              1,095,692      46,624              2,343,650            254,733                NET POSITION Net investment in capital assets 645,340,427       32,219,160      6,583,621      57,769,107      741,912,315       17,558,640          Restricted for grants and other purposes ‐                             ‐                          196,730          1,148,089        1,344,819            ‐                             Restricted for growth related capital expansion 23,875,468          ‐                         ‐                       ‐                          23,875,468          ‐                             Restricted for renewal and replacement 300,000               ‐                         ‐                       ‐                          300,000               ‐                             Restricted for debt service 7,098,843            ‐                         ‐                       ‐                          7,098,843            ‐                             Unrestricted 144,571,020       22,337,687      (2,785,053)     2,804,800        166,928,454       47,685,061          Total net position 821,185,758$     54,556,847$   3,995,298$   61,721,996$   941,459,899       65,243,701$       1,672,930             Net position of Business‐type Activities 943,132,829$      The notes to the financial statements are an integral part of this statement.  Cumulative consolidation adjustment for internal service fund activities related to enterprise funds   Business‐type Activities Enterprise Funds COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2017 30 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Operating revenues: Charges for services 134,633,817$    44,927,084$    11,722,273$    4,829,944$      196,113,118$    92,836,339$           Miscellaneous 411,203              281,996            90,024              170,602            953,825              64,315                     Total operating revenues 135,045,020      45,209,080      11,812,297      5,000,546        197,066,943      92,900,654             Operating expenses: Personal services 34,569,733         3,034,266        23,347,412      1,349,187        62,300,598         8,409,679               Operating 63,334,462         39,688,574      3,708,122        11,539,955      118,271,113      77,552,617             Depreciation and amortization 43,301,502         1,421,945        1,386,231        3,426,192        49,535,870         2,829,730               Total operating expenses 141,205,697      44,144,785      28,441,765      16,315,334      230,107,581      88,792,026             Operating income (loss) (6,160,677)          1,064,295        (16,629,468)    (11,314,788)    (33,040,638)       4,108,628               Non‐operating revenues (expenses): Operating grants and contributions ‐                             135,654            438,843            4,450,120        5,024,617           ‐                                Interest income 1,077,312           199,048            85,774              16,959              1,379,093           341,056                   Insurance reimbursement 97,958                 2,123                26,100              ‐                          126,181              708,024                   Interest expense (3,053,940)          ‐                          (13,660)            ‐                          (3,067,600)          ‐                                Gain (loss) on disposal of capital assets (915,251)             54,097              162,403            22,536              (676,215)             274,156                   Total non‐operating revenues (expenses)   (2,793,921)          390,922            699,460            4,489,615        2,786,076           1,323,236               Income (loss) before contributions  and transfers (8,954,598)          1,455,217        (15,930,008)    (6,825,173)       (30,254,562)       5,431,864               Capital grants and contributions 24,474,866         ‐                         ‐                          2,518,285        26,993,151         2,039                       Transfers in 13,600                 176,429            17,041,600      5,015,992        22,247,621         2,844,600               Transfers out (6,692,500)          (739,059)          (9,900)               (13,667)            (7,455,126)          (1,635,600)              Total transfers and contributions  17,795,966         (562,630)          17,031,700      7,520,610        41,785,646         1,211,039               Change in net position 8,841,368           892,587            1,101,692        695,437            11,531,084         6,642,903               Net position ‐ beginning as previously stated 808,303,612      53,782,774      3,624,442        61,097,667      55,069,396             Restatement of net position due to merger 5,502,450           ‐                         ‐                         ‐                         ‐                                Restatement of net position due to implementation of GASB 75 (1,461,672)          (118,514)          (730,836)          (71,108)            3,531,402               Net position ‐ beginning as restated 812,344,390      53,664,260      2,893,606        61,026,559      58,600,798             Net position ‐ ending 821,185,758$    54,556,847$   3,995,298$     61,721,996$   65,243,701$          Consolidation adjustment for internal service fund activities related to enterprise funds  434,480               Change in net position of Business‐type Activities  11,965,564$       The notes to the financial statements are an integral part of this statement.   Business‐type Activities Enterprise Funds  COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 31 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Cash flows from operating activities: Cash received for services 133,684,219$    44,689,978$    12,489,762$     4,912,761$       195,776,720$    ‐$                        Cash received from other funds for services ‐                            ‐                         ‐                          ‐                          ‐                             84,238,974       Cash received from employees for services ‐                            ‐                         ‐                          ‐                          ‐                             6,739,491         Cash received from other governments  for services ‐                            ‐                         ‐                          ‐                          ‐                             225,190             Cash received from refundable deposits 98,341                 766,523            ‐                          ‐                           864,864              ‐                          Cash received from retirees for services ‐                            ‐                         ‐                          ‐                          ‐                             1,626,820         Cash payments on behalf of retirees ‐                            ‐                         ‐                          ‐                          ‐                             (1,049,933)        Cash payments for goods and services (49,417,864)       (35,384,524)    (2,318,711)        (9,046,254)        (96,167,353)       (74,718,227)     Cash payments to employees (31,543,003)       (2,763,294)       (21,418,682)      (1,267,212)        (56,992,191)       (7,871,740)        Cash payments for interfund services (7,427,066)          (1,746,500)       (1,351,855)        (2,561,026)        (13,086,447)       (726,077)           Cash payments on refundable deposits (94,341)               (706,263)          ‐                          ‐                           (800,604)             ‐                          Net cash provided by (used for)   operating activities 45,300,286         4,855,920        (12,599,486)      (7,961,731)        29,594,989         8,464,498         Cash flows from non‐capital financing activities:  Cash received from operating grants ‐                             110,234            371,087             6,585,733         7,067,054           ‐                          Cash transfers from other funds 513,600              5,316,199        17,041,600       8,459,059         31,330,458         3,418,300         Cash transfers to other funds (6,692,500)          (5,243,159)       (9,900)                (3,985,357)        (15,930,916)       (5,761,592)        Net cash provided by (used for) non‐capital  financing activities (6,178,900)          183,274            17,402,787       11,059,435       22,466,596         (2,343,292)        Cash flows from capital and related financing activities: System development charges 12,477,989         ‐                         ‐                          ‐                           12,477,989         ‐                          Special assessment collections 195                      ‐                         ‐                          ‐                          195                      ‐                          Receipts from insurance reimbursements 72,088                 2,123                26,100               ‐                           100,311              708,024             Proceeds from loans 87,083                 ‐                         ‐                          ‐                          87,083                 ‐                          Proceeds from disposal of capital assets 277,960              53,385              28,780               61,883               422,008              292,697             Proceeds from capital grants ‐                            ‐                         ‐                           2,763,388         2,763,388           ‐                          Payments for capital acquisitions (28,953,419)       (2,675,435)       (1,953,626)        (4,472,058)        (38,054,538)       (4,105,706)        Principal payments on notes and  state revolving loans (4,665,463)          ‐                         ‐                          ‐                           (4,665,463)          ‐                          Principal payments on bonds (3,902,430)          ‐                         ‐                          ‐                           (3,902,430)          ‐                          Payments to escrow agents (4,132,944)          ‐                         ‐                          ‐                           (4,132,944)          ‐                          Principal payments on leases ‐                            ‐                          (382,180)           ‐                           (382,180)             ‐                          Interest and fiscal agent fees paid (4,537,425)          ‐                          (13,660)              ‐                           (4,551,085)          ‐                          Net cash used for capital and related  financing activities (33,276,366)       (2,619,927)       (2,294,586)        (1,646,787)        (39,837,666)       (3,104,985)        Cash flows from investing activities:  Interest on investments 949,904              167,864            70,992               14,847               1,203,607           300,027             Net cash provided by investing activities 949,904              167,864            70,992               14,847               1,203,607           300,027             Net increase in cash and investments 6,794,924           2,587,131        2,579,707         1,465,764         13,427,526         3,316,248         Cash and investments, October 1, 2016 182,899,435      26,096,614      11,358,543       2,668,581         223,023,173      58,068,287       Cash and investments, September 30, 2017 189,694,359$    28,683,745$   13,938,250$    4,134,345$      236,450,699$    61,384,535$    Current cash and investments 153,747,496$    28,550,782$    13,741,903$     3,888,938$       199,929,119      61,384,535$     Current cash and investments‐restricted 4,755,055           132,963            196,347             245,407             5,329,772           ‐                          Noncurrent cash and investments‐restricted   31,191,808         ‐                         ‐                          ‐                           31,191,808         ‐                          Cash and investments, September 30, 2017 189,694,359$     28,683,745$    13,938,250$     4,134,345$       236,450,699$     61,384,535$    (Continued) Business‐type Activities Enterprise Funds  PROPRIETARY FUNDS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 32 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Operating income (loss)(6,160,677)$       1,064,295$      (16,629,468)$   (11,314,788)$   (33,040,638)$     4,108,628$       Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:    Depreciation expense 43,301,502         1,421,945        1,386,231         3,426,192         49,535,870         2,829,730         Net changes in assets and liabilities:  Trade receivable (1,632,013)          (412,918)          684,127             (89,538)              (1,450,342)          2,313                 Due from other funds ‐                            ‐                         6,342                 33,795               40,137                 2,294                 Due from other governments 304,488              ‐                         ‐                          1,047                 305,535              (70,592)             Inventory 968,303              ‐                          25,919               (18,644)              975,578              35,307               Prepaid costs ‐                            ‐                          49,051               ‐                          49,051                 49,820               Accounts payable 5,232,147           2,557,170        (50,271)              (8,209)                7,730,837           339,733             Retainage payable 212,452              62,539              ‐                          ‐                           274,991              ‐                          Wages payable 388,103              ‐                         (60)                      7,607                 395,650              16,552               Due to other funds ‐                            ‐                         6,194                 (74,712)              (68,518)               47,940               Due to other governments 43,354                 380                    ‐                          139                     43,873                 (14)                     Compensated absences 93,851                 25,561              33,212               7,535                 160,159              (15,209)             Refundable deposits 4,000                   ‐                         ‐                          ‐                          4,000                   ‐                          Unearned revenue ‐                             60,260              ‐                          1,012                 61,272                 (1,189)                Self‐insurance claims payable ‐                            ‐                         ‐                          ‐                          ‐                             582,589             Total OPEB liability and related deferred   outflows/inflows 73,671                 6,897                (4,969)                1,098                 76,697                 (16,860)             Net pension liability and related deferred   outflows/inflows 2,471,105           175,975            1,894,206         65,735               4,607,021           553,456             Landfill post closure liability ‐                             (106,184)          ‐                          ‐                           (106,184)             ‐                          Total adjustments 51,460,963         3,791,625        4,029,982         3,353,057         62,635,627         4,355,870         Net cash provided by (used for)  operating activities 45,300,286$      4,855,920$     (12,599,486)$  (7,961,731)$     29,594,989$      8,464,498$      Non‐cash investing, capital and financing activities:  Change in fair value of investments (835,017)$           (148,541)$        (65,246)$           (12,434)$           (1,061,238)$       (233,807)$         Developer infrastructure contributions 11,641,549         ‐                         ‐                          ‐                           11,641,549         ‐                          Contributed capital assets ‐                            ‐                          157,800             283,724             441,524              2,039                 Change in capital related grant receivable 375,000              ‐                         ‐                           (1,474,108)        (1,099,108)          ‐                          Change in special assessment receivable 1,056                   ‐                         ‐                          ‐                          1,056                   ‐                          Bond proceeds 89,894,917         ‐                         ‐                          ‐                           89,894,917         ‐                          Payment to escrow agent (89,894,917)       ‐                         ‐                          ‐                           (89,894,917)       ‐                          Capital related accounts payable 4,993,245           439,736            215,574             36,759               5,685,314           560,494             Assets received from business combination 5,502,450           ‐                         ‐                          ‐                           5,502,450           ‐                          The notes to the financial statements are an integral part of this statement.  Business‐type Activities Enterprise Funds  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 33 Agency Funds Cash and investments 34,122,688$          Receivables: Interest 12,777                    Other 53,490                    Total assets 34,188,955$          LIABILITIES Due to other governments 7,324,762$            Due to individuals 555,208                  Refundable deposits 26,143,121            Due to special assessment holders 165,864                  Total liabilities 34,188,955$          The notes to the financial statements are an integral part of this statement.   ASSETS COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2017 34 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017            INDEX       NOTE  PAGE NUMBER 1  Summary of Significant Accounting Policies 36 2  Cash and Investments  47 3  Trade Receivables  51 4  Interfund Payables and Receivables 51 5  Capital Assets  53 6  Long‐Term Debt  54 7  Conduit Debt Obligations  60 8  Defined Benefit Pension Plans  60 9  Defined Contribution Plan  67 10  Transfers  67 11  Net Position/Fund Balances  68 12  Risk Management   71 13  Other Postemployment Benefits  72 14  Landfill Liability   77 15  Significant Contingencies   78 16  Significant Commitments   78 17  Subsequent Events  79 18  Government Combination and Change in Accounting Principle 80    35 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES    The financial statements of Collier County, Florida (County) have been prepared in accordance with accounting principles  generally accepted in the United States of America for governmental entities (GAAP).  The more significant of the County’s  accounting policies are described below.    THE REPORTING ENTITY    Entity status for financial reporting purposes is governed by Governmental Accounting Standards Board (GASB) Statement No.  14, The Financial Reporting Entity, as amended.  The GASB is the standard setting body for the establishment of GAAP in  governmental entities.  Determination of the financial reporting entity of the County is founded upon the objective of  accountability.  These financial statements include the County government (the primary government) and two types of legally  separate component units (blended and discrete).  Component units are legally separate agencies that the primary government  is financially accountable for or organizations which should be included in the reporting entity because of the nature and  significance of their relationship with the primary government.     Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board  and  impose  its  will  on  the  organization  or  there  is  a  potential  specific  financial  benefit/burden  relationship.    Financial  accountability also exists if an  organization is fiscally dependent  and  there  is potential  specific financial benefit/burden  relationship.    The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923  by the Florida State Legislature.  The County is governed by a Board of County Commissioners which consists of five members  elected within single member districts.  In addition, there are five separately elected Constitutional Officers:  the Tax Collector,  Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections.  The Constitutional Officers  are elected county wide.  Under the direction of the Clerk of the Circuit Court and Comptroller, the Finance and Accounting  Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections  and the Clerk of the Circuit Court and Comptroller.  The Tax Collector, Property Appraiser and Sheriff each maintain their own  accounting  systems.    For  financial  reporting  purposes,  the  operations  of  the  Board  of  County  Commissioners  and  the  Constitutional Officers are combined and presented as the primary government.    The County's blended component units consist of organizations whose respective governing Boards are composed entirely of  the Board of County Commissioners serving ex‐officio.  These entities are legally separate, however the County has the financi al  and operational responsibility for these component units.  In accordance with GASB Statement No. 14, as amended, these  organizations are reported as if they were part of the County's operations.    Collier County Water and Sewer District (District) ‐  The District was established by Chapter 88‐499, Laws of Florida, as amended  by Chapter 03‐353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County.      Collier County Community Redevelopment Agency (CRA) ‐ The CRA was established by Resolution 2000‐82 to benefit blighted  areas  in  both  the  Immokalee  Redevelopment  and  Bayshore/Gateway Triangle  Redevelopment  Areas.    These  two  redevelopment areas are geographically separate and distinct.    Collier County Airport Authority ‐ The Board of County Commissioners was established as the governing body of the Airport  Authority by Ordinance 2010‐10.  T he Airport Authority is responsible for construction, improvement, equipment, development,  regulation, operation and maintenance of the Marco Island, Immo kalee and Everglades Airports and all related airport facilities.    Collier County Metropolitan Planning Organization (MPO) ‐ The Authority was created in 1981 by Collier County Resolution 81‐ 222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes.  The purpose of the MPO  is to provide planning for all modes of travel in order to benefit the citizens of Collier County.  The MPO is reported as part of  the Grants and Shared Revenues fund.     36 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    The County's discretely presented component units consist of organizations whose board members are appointed by the Board  of County Commissioners.  The County is able to impose its will on these entities because of its ability to remove appointed  members from the component units' Boards.  The Authorities maintain their own financial records, but do not issue separate  financial statements.  GASB Statement No. 14, as amended, requires that the financial data of the following organizations be  reported in separate columns to emphasize that they are legally separate from the County.      Collier County Housing Finance Authority ‐ The Authority was formed in 1980 by Collier County Ordinance 80‐66 for the  purpose of stimulating the construction of residential housing for low and moderate income families through the use of public  financing.  Their financial position and results of operations are reported in the accompanying financial statements and the  outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”.     Collier County Health Facilities Authority ‐ The Authority was established in 1979 by Collier County Ordinance 79‐95 for the  purpose of assisting health facilities in the acquisition, construction and financing of projects within the County.  Their financial  position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt  issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”.     Collier County Industrial Development Authority ‐ The Authority was created in 1978 by Collier County Resolution 78‐94,  rescinded and replaced by Resolution 79‐34, to facilitate the financing of projects that promote economic growth and increase  opportunities for employment in the County.  Their financial position  and  results  of  operations  are  reported  in  the  accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit  Debt Obligations”.     Collier County Educational Facilities Authority ‐ The Authority was created in 1999 by Collier County Resolution 99‐17 to assist  institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results  of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority  is disclosed in Note 7, “Conduit Debt Obligations”.     Financial information on the individual component units can be obtained from their respective administrative offices or from  the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller.    Administrative Offices   Collier Water and Sewer District  3339 East Tamiami Trail, Suite #302  Naples, Florida 34112  Collier County Airport Authority 2005 Mainsail Drive, Suite #1  Naples, Florida 34114    Collier County Metropolitan Planning Organization 2885 South Horseshoe Drive  Naples, Florida 34104  Immokalee Community Redevelopment Agency 750 South 5th Street  Immokalee, Florida 34142    Bayshore Gateway Community Redevelopment Agency 3570 Bayshore Drive, Unit #102  Naples, Florida 34112    Collier County Health Facilities Authority Collier County Housing Finance Authority  Collier County Industrial Development Authority  Collier County Educational Facilities Authority  5100 Tamiami Trail North, #103  Naples, Florida  34103       37 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    Certain separate legal entities within the County are autonomous organizations with their own governmental powers and  constituencies.  These entities, which are not included in these financial statements, are as follows:    The Cities of Naples, Marco Island and Everglades ‐ The Cities of Naples, Marco Island and Everglades are in the boundaries of  Collier County. Each of these entities has a separately elected board and separate budgeting, accounting and reporting  requirements.    Collier  County  School  Board  ‐  The  Collier  County  School  Board  operates  countywide  and  is completely  separate  and  autonomous.  The School Board has five elected board members and  a  superintendent  of  schools  and  operates  under  regulations prescribed by the State Board of Education and the Florida Statutes.  It levies its own taxes and receives part of its  income from the State of Florida.      GOVERNMENT‐WIDE AND FUND FINANCIAL STATEMENTS    The basic financial statements are made up of the government‐wide financial statements and fund financial statements. Both  of these sets of financial statements distinguish between the governmental and business‐type activities of Collier County.  The  government‐wide financial statements consist of a Statement of Net Position and a Statement of Activities.  These statements  report on the financial condition of Collier County, at the reporting entity level.  Internal balances represent net amounts due  between the governmental and business‐type activities.  As a general rule, the effect of interfund activity has been eliminated  from the government‐wide financial statements with the exception of interfund services provided and used.  The internal  service activity has also been eliminated from the government‐wide financial statements.  Aggregate internal service fund  activity is reported in full as a single column in the proprietary fund financial statements. Fiduciary funds are not included in  these presentations as their assets do not represent amounts that are available for Collier County government operations.  The  Statement of Net Position reports all financial and capital resources of Collier County’s governmental and business‐type  activities.  Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources,  and is shown in three categories:  net investment in capital assets; restricted net position and unrestricted net position.  The  Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree  the particular program has been self‐supporting.    Direct  expenses  are  those  that  are  specifically  associated  with  a  service,  program  or  department  and,  thus  are  clearly  identifiable to a particular function.  The effect of indirect expense allocations has been eliminated in the government‐wide  financial statements.  Depreciation expense for capital assets that can specifically be identified with a function is recorded as a  direct expense of that function.  Depreciation for capital assets that serve all functions is recorded as a direct expense of the  general government function on the government‐wide Statement of Activities. All interest on general long term debt is  considered indirect and is reported separately in the government‐wide Statement of Activities.    Program revenues are reported in the following three categories:  charges for services, operating grants and contributions and  capital grants and contributions.  Charges for services are amounts charged to customers for a particular service, and are netted  against the cost of the relevant program.  Internal charges for indirect services are allocated across functions as direct expenses.   Grants and contributions refer to revenues restricted for capital or operational use in a particular program.  The general rev enue  category encompasses all other revenue types and represents revenue collected to support all functions of Collier County  government.    The fund financial statements follow the government‐wide statements and report more detailed information about operations  of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds.   Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are  reconciliations  explaining  the  differences  between  the  governmental  fund  presentation  and  the  government‐wide  presentation.        38 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    BASIS OF PRESENTATION    The following are reported as major governmental funds:    General Fund – the General Fund is the general operating fund of the County.  All general tax revenues and  other receipts that are not accounted for in other funds are accounted for in the General Fund.  The general  operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of  Elections  and  Tax  Collector  are  presented  together  with  the  Board  of  County  Commissioners'  general  operating fund in the County’s consolidated General Fund.    Bayshore/Gateway  and  Immokalee  Community  Redevelopment  Area  Special  Revenue  Funds  –  the  Redevelopment funds are used to account for the receipt and expenditure of tax increment revenues  generated by the Bayshore/Gateway and Immokalee Community Redevelopment Areas.       The following are reported as major enterprise funds:    County Water and Sewer Fund – the County Water and Sewer fund is used to account for the provision of  water, wastewater and effluent services to certain portions of the County’s unincorporated area.    Solid Waste Disposal Fund – the Solid Waste Disposal fund is used to account for the provision of solid waste  disposal services to users throughout the County.    Emergency Medical Services – the Emergency Medical Services fund is used to account for the provision of  emergency ambulance and paramedical services to users throughout the County.    Collier County also maintains the following nonmajor fund types:    Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue  sources that are restricted or committed to expenditure for specific purposes other than debt service or  capital projects.    Permanent Fund – Permanent funds are used to account for resources that were legally restricted to the  extent that only earnings and not principal may be spent.  Collier County operates a permanent fund to defray  costs associated with the maintenance and management of conservation land.      Debt Service Funds – Debt service funds are used to account for the accumulation of resources that are  restricted, committed or assigned to expenditure for principal and interest related to long‐term obligations.    Capital Project Funds – Capital project funds are used to account for the accumulation of resources that are  restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction  of capital facilities and other capital assets.     Enterprise Funds – Enterprise funds are used to account for activities for which a fee is charged to external  users for goods or services.    Internal Service Funds – Internal service funds are used to account for the provision of goods and services by  one  department  to  other  departments  within  the  County  or  to  other  governmental  units  on  a  cost  reimbursement basis.  Collier County currently reports the following Internal Service Funds:  Self Insurance,  Sheriff’s Self Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology.  39 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    Agency Funds – Agency funds are custodial in nature and do not report the results of operations (assets equal  liabilities).  Agency funds are clearing accounts for assets held by the government as an agent for individuals,  private organizations or other governments.  The Board of County Commissioners, Sheriff, Clerk of the Circuit  Court and Comptroller and Tax Collector all maintain agency funds.      MEASUREMENT FOCUS AND BASIS OF ACCOUNTING    Measurement focus indicates the type of resources being measured such as current financial resources (current assets less  current  liabilities)  or economic  resources  (all  assets  and  liabilities).    Basis  of  accounting refers  to  when  revenues  and  expenditures or expenses are recognized in the accounts and reported in the financial statements.  The basis of accounting  relates to the timing of the measurements made regardless of the measurement focus applied.     The government‐wide and proprietary fund financial statements are reported using the economic resources measurement  focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation  of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues)  and decreases (i.e., expenses) in net position.  Under the accrual basis of accounting, revenues are recognized in the period in  which they are earned and measurable, and expenses are recognized in the period incurred.  Grant and similar revenues are  recognized when eligibility requirements are met.  Proprietary funds distinguish operating revenues and expenses from non‐ operating items.  Operating revenues and expenses generally result from providing services and producing and delivering goods  in connection with a proprietary fund’s principal ongoing operations.  Operating expenses for proprietary funds include the  cost of sales and services, administrative expenses and depreciation on capital assets.  All revenues and expenses not meeting  this definition are reported as non‐operating revenues and expenses.    Governmental fund financial statements are reported using the current financial resources measurement focus and the  modified accrual basis of accounting.  With this measurement focus, only current assets and current liabilities generally are  included on the balance sheet.  Operating statements of these funds present increases (i.e., revenues and other financing  sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of  accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period.   Generally, revenues are considered available when they are collected within the current period or within 60 days after the end  of the fiscal year.  Grant revenues are an exception and are co nsidered available when eligibility requirements are met.  Primary  revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and  certain taxes and intergovernmental revenues.  Property taxes are discussed later in Note 1.  Expenditures are recorded when  the related fund liability is incurred.  Exceptions to this general rule include accrued compensated absences and principal and  interest on long‐term debt.     When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses,  and then unrestricted as needed.  When using the unrestricted resources, committed amounts would be reduced first, followed  by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of  those unrestricted fund balance classifications could be used.     BUDGETS AND BUDGETARY DATA    The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the  County:    1) Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County  budget officer prepares and presents to the Board a tentative b udget 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.    40 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    2) Within eighty days of the certification of value, but not earlier than sixty‐five days after certification, the  Board holds a public hearing on the tentative budget and proposed millage rate.  At this hearing the Board  amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly  the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled‐back rate.  If the  millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of  the increase by first class mail, at the expense of the Board.    3) Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent  to adopt a final budget and millage rate.    4) A public hearing is held by the Board to finalize the budget and adopt a millage rate.  This hearing is held  not less than two days and not more than five days after the day that the advertisement is first published.   Prior to September 30, the millage levy is adopted by a separate vote.  The millage rate adopted is not  allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with  strict public notice requirements.   This is followed by the approval and ratification of the final budget.    5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and  Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the  Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has  complied with the provisions of Chapter 200, Florida Statutes.    6) The County Manager approves interdepartmental budget changes within the same fund and division of  $50,000 or less that do not impact reserves or recognize revenue.  All other budgetary changes must be  approved by the Board of County Commissioners as matter of policy.  The initial adopted budget was  amended in accordance with Florida Statutes.    7) Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets  are unlawful.  However, because the Board approves all budgetary changes between departments, except  those approved by the County Manager, the departmental budget becomes the level of control.     Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have  been legally adopted by the Board for all Board departments except for the agency funds and the Impact Fees Escrow special  revenue fund.  The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board.   The Clerk of Courts operates as a fee officer, and as such, prepares its budget in accordance with Section 218.35, Florida  Statutes.    The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the  Board.   The Clerk of Court’s budget for court related functions is prepared according to Section 28.36 Florida Statutes and  submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission.    Budgets are adopted for all governmental departments except as described in the previous paragraph.  These budgets are  adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non‐budgeted revenues  and expenditures and mark to market activity on investments.  A ll unencumbered appropriations lapse at the end of the current  year.  For further information regarding encumbrances, refer to Note 16 on page 79.    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.     41 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds  statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial  statements.  Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to  actual statements.     CASH AND INVESTMENTS    Florida Statutes Section 218.415 establishes guidelines for Florida local government investment policies.  The County’s current  investment  policy,  as  amended,  was  adopted  December  9,  2014  by Resolution  2014‐260  and is  consistent  with  the  requirements of that statute.  This investment policy authorized the following investments:      1) U.S. Treasury and Government Guaranteed – U.S. Treasury obligations and obligations the principal and interest of  which are backed or guaranteed by the full faith and credit of the U.S. Government;    2) Federal Agency/Government Sponsored Enterprise – Debt obligations, participations or other instruments issued or  fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise;    3) Corporates – U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a  domestic corporation, financial institution, non‐profit or other entity;    4) Municipals – Obligations, including both taxable and tax‐exempt, issued or guaranteed by any State, territory or  possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or  other unit of local government of any State or territory;    5) Agency Mortgage Backed Securities – Mortgage backed securities, backed by residential, multi‐family or commercial  mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government  sponsored enterprise, including but not limited to pass‐throughs, collateralized mortgage obligations and real estate  mortgage investment conduits;     6) Non‐Negotiable Certificates of Deposit ‐  Non‐negotiable interest bearing time certificates of deposit or savings  accounts in banks organized under the laws of this state or in national banks organized under the laws of the United  States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public  Deposits Act, Chapter 280, Florida Statutes;     7) Depository Bank Account – Negotiated Order of Withdrawal accounts in banks organized under the laws of this state  or in national banks organized under the laws of the United States and doing business in this state, provided that any  such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes;    8) Commercial Paper – U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation,  company, financial institution, trust or other entity, including both unsecured debt and asset backed programs;    9) Repurchase Agreements – Repurchase agreements must be governed by written agreement, counterparty must be a  Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank.  Acceptable underlying securities  must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or  U.S. Agency backed mortgage related securities with an aggregate current market value of at least 102% (or 100% if  the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential;    10) Money Market Funds – Shares in open end and no load money market mutual funds, provided such funds are  registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange  Commission Rule 2a‐7;     42 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    11) Fixed‐Income  Mutual  Funds  –  Shares  on  open  end  and  no  load  fixed  income  mutual  funds  whose  underlying  investments would be permitted for purchase under the investment policy and all its restrictions;    12) Local Government Investment Pools – State, local government or privately sponsored investment pools that are  authorized pursuant to state law;    13) The Florida Local Government Surplus Funds Trust Funds (Florida Prime).      The County maintains a cash and investment pool that is available for use by all funds.  Investment income is allocated to  individual funds based upon their average daily balance in the cash and investment pool.  Each fund’s individual equity in the  County’s cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time  without notice or penalty.  The statement of cash flows for the proprietary funds also uses this methodology.      Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service.   Investments in the Local Government Surplus Funds Trust Fund (Florida Prime) are stated at fair value.  The County categorizes  its fair value measurements within the fair value hierarchy established in Governmental Accounting Standards Board Statement  No. 72, “Fair Value Measurements and Application”.    Florida PRIME is considered a qualifying external investment pool that meets all of the necessary criteria to elect to measure  all of the investments at amortized cost. Therefore, the fair value of the County’s position in the pool is the same as the value  of the pool shares. The Florida PRIME investments are not categorized because they are not evidenced by securities that exist  in physical or book entry form. Throughout the year, and as of September 30, 2017, Florida PRIME contained certain floating  and adjustable rate securities. These investments represented 29.9% of Florida PRIME’s portfolio at September 30, 2017.    In accordance with Governmental Accounting Standards Board Statement No. 79, “Certain External Investment Pools and Pool  Participants”, as a participant in a qualifying external investment pool, the County should disclose the presence of any  limitations  or  restrictions  on  withdrawals  (such  as  redemption notice  periods,  maximum  transaction  amounts,  and  the  qualifying  external  investment  pool’s  authority  to  impose  liquidity  fees  or  redemption  gates)  in  notes  to  the  financial  statements.    With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of  each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the  Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of  the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys  entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the  Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government  Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director  has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency  meeting before the expiration of the 48‐hour moratorium on contributions and withdrawals, the moratorium may be extended  by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree  with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must  convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit  set by the Trustees exceed 15 days."   With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal,  subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has  been made.    As of September 30, 2017, there were no redemption fees or maximum transaction amounts, or any other requirements that  serve to limit a participant's daily access to 100 percent of their account value.   43 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    RECEIVABLES    All trade receivables are reported net of an allowance for uncollectibles, which is generally a year except for Emergency Medical  Services receivable which uses an estimated uncollectible percentage.    INVENTORIES AND PREPAID COSTS    Inventory is valued at cost using the first‐in, first‐out method.  Inventory in the governmental funds consists of supplies held  for consumption.  The cost is recorded as an expenditure at the time inventory items are consumed rather than when  purchased.  Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid  items.  Inventories and prepaid costs reported within governmental funds are classified as non‐spendable, which indicates that  they do not constitute available resources.  Inventories and prepaid costs in the government‐wide and proprietary fund  financial statements are reported as an expense when consumed.     Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell.   The value of these properties includes the original purchase price plus the cost of any rehabilitation.  Inventory held for resale  of $9,796,692 is classified as restricted, which indicates that they do not constitute available resources.    CAPITAL ASSETS    Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater  systems,  drainage  systems  and  similar  items),  are  reported  in  the  proprietary  fund  financial  statements  and  in  the  governmental or business‐type activities columns in the government‐wide financial statements.  Capital assets are reported at  cost where historical records are available and at estimated fair value in the absence of historical cost records.  Capital  contributions are recorded at acquisition value on the date donated.      The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year.  Betterments  and  major  improvements  which  significantly  increase  value,  change capacity  or  extend  useful lives  are  also  capitalized.   Expenditures for maintenance and repairs are charged to operating expenses.  The cost of capital  assets retired or sold, together  with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is  credited or charged to earnings in the government‐wide financial statements and proprietary fund financial statements.    Depreciation is calculated using the straight‐line method.  The estimated useful life of the various classes of depreciable capital  assets is as follows:    Capital Asset Class Estimated Useful Life  Buildings 20‐45 years Infrastructure 3‐30 years Improvements other than buildings 4‐45 years Machinery and equipment 3‐20 years   CAPITAL LEASE OBLIGATIONS    In the government‐wide financial statements and proprietary fund financial statements capital lease obligations and the related  cost of assets acquired are reflected in the Statement of Net Position.  For capital lease obligations originating in governmental  funds, an expenditure for the asset and the offsetting other financing source is reflected in the fund financial statements in the  year of inception.       44 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    DEFERRED OUTFLOWS/INFLOWS OF RESOURCES    In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources.  This  separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to  a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred  outflows of resources reported in the County’s statement of net position represent changes in actuarial assumptions, the net  difference between projected and actual earnings on investments, changes in the proportion and differences between the  County’s  contributions  and  proportionate  share  of  contributions  and  the  County’s  contributions  subsequent  to  the  measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program.   In addition, deferred outflows related to the difference between expected and actual economic experience relating to the  Florida Retirement System Pension and the Other Post Employment Benefits Plan were reported.  These amounts will be  recognized as increases in pension expense and OPEB expense in future years.  The County also reports the deferred charge on  refunding as a deferred outflow in the proprietary and government wide statements of net position.  A deferred charge results  from the difference in the carrying value of refunded debt and its reacquisition price.  This amount is deferred and amortized  over the shorter of the life of the refunded or refunding debt.    In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources.  This  separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a  future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of  resources reported in the County’s statement of net position represent the difference between expected and actual economic  experience, changes in actuarial assumptions, net difference between projected and actual earnings on investments, and  changes in the proportion and differences between the County’s contributions and proportionate share of contributions  relating to the Florida Retirement System Pension Plan, the Retiree Health Insurance Subsidy Program and the Other Post  Employment Benefits Plan.  These amounts will be recognized as reductions in pension expense and OPEB expense in future  years.  The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee  agreements, as deferred inflows.     BOND PREMIUMS, LOSS ON DEFEASANCE AND ISSUANCE COSTS    Bond premiums and bond insurance costs for the governmental activities and the business‐type activities are deferred and  amortized over the term of the bonds using the straight‐line method which approximates the effective interest method.  Bond  premiums are presented as an increase to the face amount of bonds payable, while bond insurance costs are recorded as  deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets.     Pursuant to GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt  is reported as a deferred inflow or outflow of resources.  The gain or loss is calculated as the difference between the  reacquisition price of the refunded debt and the net carrying amount at the time of the refunding.  The gain or loss is amorti zed  on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of  interest expense.      In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized in the  current period.  The face amount of debt is reported as other financing sources.  Premiums received on debt issuances are also  reported as other financing sources.  Issuance costs, including bond insurance costs, whether or not they have been paid from  debt proceeds are reported as debt service expenditures.     INTEREST COST    In the proprietary funds, interest costs are expensed or capitalized as required by GASB Statement No. 62, Codification of  Accounting and Financial Reporting Guidance Contained in Pre‐November 30, 1989 FASB and AICPA Pronouncements.  45 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    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, 2017 are not significant. Discounts on property taxes are allowed for  payments made prior to the April 1st delinquent date as follows: November ‐ 4%, December ‐ 3%, January ‐ 2%, and February  ‐ 1%.  Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1st of each year.      No accrual for the property tax levy becoming due in November 2017 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, 2017 are as follows:    Property Tax Cycle  Date Assessment roll compiled  January 1, 2016 Assessment roll certified July 1, 2016 Millage resolution approved Within 35 days of the certification of the assessment roll Beginning of fiscal year for tax levy October 1, 2016 Taxes due and payable (levy date)  November 1, 2016 Collection dates By November 30: By December 31:  By January 31:  By February 29:  4% discount 3% discount  2% discount  1% discount  Due date March 31, 2017 Delinquent (lien date) April 1, 2017 Tax certificates sold Prior to June 1, 2017   ACCOUNTING ESTIMATES    The preparation of financial statements in conformity with generally accepted accounting principles requires management to  make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets  and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting  period.  Actual results may differ from those estimated.    UNEARNED REVENUE    In instances where assets have been received by the County for services to be rendered in future periods, asset balances are  offset by an unearned revenue liability account in the financial statements.  Unearned revenues of the County as of September  30, 2017 are gift certificates issued and prepayments on accounts.     ACCRUED COMPENSATED ABSENCES    The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences.  This statement provides  for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the  balance sheet date.  It also requires additional amounts to be accrued for certain salary related payments associated with the  payment of compensated absences.       46 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING 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 a payout of unused vacation up to 440 hours for all  employees.  The Sheriff’s policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed  1,000 hours, and up to 500 hours of unused vacation time.  Both the Clerk of the Circuit Court and Comptroller’s and Tax  Collector’s policies allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of  unused vacation hours.  The Property Appraiser’s policy allows for a percentage of unused sick leave payout based upon years  of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours.  The Supervisor of Election’s policy allows  for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation.    Payments for compensated absences are made by the respective fund.  Accrued compensated absences are recorded as  liabilities  in  the  government‐wide  financial  statements  and  the  proprietary  fund  financials.  A  liability  is  reported  in  governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are  considered due and payable as of year end.    PENSIONS    In  the  government‐wide  and  proprietary  funds  statements  of  net position,  liabilities  are  recognized  for  the  County’s  proportionate share of each pension plan’s net pension liability. For purposes of measuring the net pension liability, deferred  outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement  System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS’s and HIS’s  fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose,  plan  contributions  are  recognized  as  of  employer  payroll  paid  dates  and  benefit  payments  and  refunds  of  employee  contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair  value.     OTHER POST EMPLOYMENT BENEFITS (OPEB)    In the government‐wide and proprietary funds statements of net position, liabilities are recognized for the County’s total OPEB  liability as determined by an actuarial review of the healthcare coverage purchased by retirees to continue participation in the  County’s self‐insured health plan. The County is responsible for covering the excess of retiree claims over premium payments  made by retirees to the County, which creates an other post employment benefit.  OPEB expense is recognized immediately  for changes in the OPEB liability resulting from current year service cost, interest on the total OPEB liability and changes of  benefit terms or actuarial assumptions.     NEW ACCOUNTING PRONOUNCEMENTS    For the year ended September 30, 2017, the financial statements include the impact of adoption of GASB Statement No. 75,  Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.  The primary objective of this Statement  is to improve on accounting and financial reporting by state and local governments for postemployment benefits other than  pensions.  This statement replaces the requirements of GASB Statement No. 45, Accounting and Financial Reporting by  Employers for Postemployment Benefits Other Than Pensions.  For further information, see Note 18 on page 80.    NOTE 2 – CASH AND INVESTMENTS     The County maintains a cash and investment pool that is available for use by all funds.  Each fund’s portion of this pool is  displayed on the balance sheet under the heading of Cash and Investments.  Investment income is allocated monthly to  participating funds based on the percentage of each fund's average daily balance in the total pool.       47 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 2 – CASH AND INVESTMENTS – CONTINUED    As of September 30, 2017, the County had the following cash and investments:    Investment Final  Maturities Fair Value First  Call Date Call Frequency Rating * Cash on hand N/A 85,917$           N/A N/A N/A Cash with fiscal agent N/A 11,592,085      N/A N/A N/A Demand deposits N/A 103,713,523    N/A N/A N/A Money market N/A 2,697                N/A N/A N/A State Board of Administration Pool:    Florida PRIME N/A 36,923,229      N/A N/A AAAm Federal Home Loan Mortgage Corporation 10/02/2017 250,000          N/AN/AAA+ Federal Home Loan Mortgage Corporation 10/27/2017 24,995,600     1/27/2016 quarterly  AA+ US Treasury Note  11/09/2017 499,495          N/A N/A AA+ Federal Home Loan Mortgage Corporation 11/24/2017 24,991,000     2/24/2016 quarterly  AA+ US Treasury Note  11/30/2017 24,980,800     N/A N/A AA+ US Treasury Note  11/30/2017 9,996,330       N/A N/A AA+ Federal Home Loan Bank 12/01/2017 8,999,478       N/A N/A AA+ Federal Home Loan Bank 12/08/2017 23,984,784     N/A N/A AA+ Federal Home Loan Mortgage Corporation 12/15/2017 499,910          N/A N/A AA+ Federal Home Loan Bank 12/19/2017 22,996,067     N/A N/A AA+ US Treasury Note  01/04/2018 498,650          N/A N/A AA+ Federal Home Loan Mortgage Corporation 01/30/2018 250,130          N/A N/A AA+ Federal Home Loan Mortgage Corporation 02/26/2018 20,978,517     2/26/2016 quarterly  AA+ Federal Home Loan Bank 02/28/2018 499,660          N/A N/A AA+ Federal Home Loan Mortgage Corporation 03/07/2018 249,645          N/A N/A AA+ Federal Farm Credit Bank 03/14/2018 24,983,275     N/A N/A AA+ US Treasury Note  03/31/2018 249,425          N/A N/A AA+ Federal Home Loan Mortgage Corporation 04/09/2018 498,620          N/A N/A AA+ Federal Home Loan Bank 06/08/2018 25,493,500     N/A N/A AA+ Federal Home Loan Mortgage Corporation 06/29/2018 498,110          N/A N/A AA+ Federal National Mortgage Association 07/27/2018 49,772,150     7/27/2017 once AA+ US Treasury Note  07/31/2018 696,717          N/A N/A AA+ Federal Home Loan Mortgage Corporation 08/15/2018 19,944,560     8/15/2017 once AA+ Federal Home Loan Bank 08/23/2018 24,948,700     11/23/2016 quarterly  AA+ US Treasury Note  08/31/2018 646,445          N/A N/A AA+ Federal Home Loan Mortgage Corporation 09/13/2018 24,920,000     12/13/2016 quarterly  AA+ US Treasury Note  09/30/2018 499,980          N/A N/A AA+ US Treasury Note  10/31/2018 24,830,075     N/A N/A AA+ Federal Farm Credit Bank 11/19/2018 248,885          N/A N/A AA+ Federal Farm Credit Bank 12/19/2018 9,963,520       N/A N/A AA+ Federal Farm Credit Bank 12/21/2018 24,951,100     12/21/2016 continuously AA+ Federal Farm Credit Bank 12/27/2018 23,983,910     12/27/2017 continuously AA+ US Treasury Note  02/15/2019 431,094          N/A N/A AA+ US Treasury Note  03/31/2019 498,710          N/A N/A AA+ Federal Farm Credit Bank 07/01/2019 39,724,480     N/A N/A AA+ Federal National Mortgage Association 07/12/2019 24,723,850     1/12/2017 quarterly  AA+ Federal Farm Credit Bank 07/12/2019 494,650          N/A N/A AA+ Federal Home Loan Mortgage Corporation 08/28/2019 24,850,725     11/28/2016 quarterly  AA+ Federal National Mortgage Association 08/28/2019 14,853,030     N/A N/A AA+ US Treasury Note  10/15/2019 24,753,900     N/A N/A AA+ Federal Home Loan Mortgage Corporation 10/28/2019 22,240,366     4/28/2017 quarterly  AA+ Federal National Mortgage Association 07/27/2020 24,346,725     1/27/2017 quarterly  AA+ Federal Home Loan Bank 09/27/2021 24,688,750     12/27/2016 continuously AA+ Federal National Mortgage Association 09/30/2021 24,346,350     3/30/2017 quarterly  AA+ Total 800,069,119$ * Standard and Poor's rating   48 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 2 – CASH AND INVESTMENTS – CONTINUED    CREDIT RISK    Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.  The County’s  investment policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund  (Florida PRIME), direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S.  government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit  collateralized  by  U.S.  Government  Securities  or  Agencies,  fixed  income  mutual  funds  collateralized  by  U.S.  Government  Securities or Agencies, domestic bankers’ acceptances rated “AA” or higher, prime commercial paper rated “A‐1” and “P‐1”,  tax‐exempt obligations rated “AA” or higher and issued by state or local governments, NOW accounts fully collateralized in  accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements.  The policy requires that each firm  involved in a repurchase agreement must execute the County’s master repurchase agreement, a third party custodian must  hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall  maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities  with a term over five (5) years, and must be marked to market at least weekly.  Florida PRIME is an investment pool  administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida.   At September  30, 2017, the County had $36,923,229 invested in the State Board of Administration’s Local Government Surplus Funds Trust  Fund Investment Pool.  All of these funds are held in the Florida PRIME pool.  Florida PRIME is rated “AAAm” by Standard &  Poor’s Ratings Services.      All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public  Deposits Act".  Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value  equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral  pledging level.  The pledging level may range from 25% to 200% depending upon the depository's financial condition.  Any  losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary,  assessments against other qualified public depositories of the same type as the depository in default.    CUSTODIAL CREDIT RISK    Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government  will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside  party.   At September 30, 2017, the County had demand deposits of $103,713,523.  All balances in excess of the Federal  Depository Insurance Corporation (FDIC) insurance for these demand deposits are fully collateralized by the multiple financial  institutions’ collateral pool in accordance with Florida Statutes Section 280.  The discretely presented component unit demand  deposits of $212,716 are secured by the FDIC as individual entity balances do not exceed $250,000.  Custodial credit risk for  investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to  recover the value of the investment or collateral securities that are in the possession of an outside party.  The County’s  investment policy requires execution of a third‐party custodial safekeeping agreement for purchased securities and collateral,  and requires that securities be held in the County’s name.    INTEREST RATE RISK    Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.  One of  the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and  anticipated cash flow requirements.  The County limits exposure to interest rate risk by structuring the portfolio to meet daily  cash flow demands.   Investments shall have an average maturity of not more than five years, except for mortgage securities.  Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and  are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow  schedule.     The dollar weighted average days to maturity (WAM) of Florida PRIME at September 30, 2017, is 51 days. Next interest rate  reset dates for floating rate securities are used in the calculation of the WAM.  The weighted average life (WAL) of Florida  PRIME at September 30, 2017, is 50 days.     49 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 2 – CASH AND INVESTMENTS – CONTINUED     The portion of the County’s cash and investments invested in U.S. Government Agencies is detailed as follows, at September  30, 2017:    Issuer % of Portfolio Federal Home Loan Bank 16.45% Federal Farm Credit Bank 15.54% Federal Home Loan Mortgage Corporation 20.64% Federal National Mortgage Association 17.25% Total U.S. Government Agencies 69.88%    Reconciliation of cash and investments to the basic financial statements:    Primary government: Cash and investments 404,741,338$      Cash with Fiscal Agent 11,592,085          Restricted cash and investments ‐ current 24,756,590          Restricted cash and investments ‐ noncurrent 324,856,418        Agency funds: Cash and investments 34,122,688          Total 800,069,119$        FAIR VALUE MEASUREMENTS     GASB Statement No. 72, Fair Value Measurements and Application, sets forth the framework for measuring fair value.  That  framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The  hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1  measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value  hierarchy under GASB Statement No. 72 are described as follows:    Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active  markets that the County has the ability to access.    Level 2 – Inputs to the valuation methodology include:  Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in inactive markets;  Inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.    Level  3  –  Inputs  to  the  valuation  methodology  are  unobservable and  significant  to  the  fair  value  measurement.   Unobservable inputs, if any, reflect the County’s own assumptions about the inputs market participants would use in  pricing the asset or liability (including assumptions about risk).  Unobservable inputs are developed based on the best  information available in the circumstances and may include the County’s own data.    The County has the following recurring fair value measurements as of September 30, 2017:    US Treasury Notes classified as Level 1 of the fair value hierarchy were valued using prices quoted in active markets for  those securities.  As of September 30, 2017, the fair value of the County’s US Treasury Notes was $88,581,621.    US Agency obligations classified as Level 2 of the fair value hierarchy were valued using quoted prices for similar assets in  active markets for those securities.  As of September 30, 2017, the fair value of the County’s US Agency obligations was  $559,170,047.  50 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 3 ‐ TRADE RECEIVABLES    Trade receivables for Governmental and Business‐type Activities are net of an allowance for doubtful accounts as follows:    Trade  Receivables Less Allowance  for Doubtful  Accounts Net Trade  Receivables General Fund 1,221,036$      717,645$          503,391$         Bayshore Gateway Community Redevelopment Agency 12,720             12,720              ‐                        Nonmajor Governmental Funds 2,365,223        654,312            1,710,911        Total receivables reported in Governmental Funds 3,598,979        1,384,677         2,214,302        Total receivables reported in Internal Service Funds 19,624             14,519              5,105                   Total Governmental Activities trade receivables 3,618,603$      1,399,196$      2,219,407$     County Water and Sewer 12,115,913$   8,803$              12,107,110$   Solid Waste Disposal 1,287,614        343                    1,287,271        Emergency Medical Services 25,711,341      24,030,633      1,680,708        Nonmajor Enterprise Funds 145,155           17,313              127,842               Total Business‐type Activities trade receivables 39,260,023$   24,057,092$    15,202,931$      The County has multi and single‐family home rehabilitation and homeownership loan programs funded under the Community  Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI),  Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program (SHIP).  If the homeowners  remain in their homes for the full term of the deferred loan, the loan is forgiven.   If the property is transferred or sold before  the end of the loan period, the proceeds from the repayment including interest, if any, are then repaid and returned to the  appropriate grant program.  A lien is placed against the property to ensure the repayment of the loan and interest, if any.  As  collection is uncertain on these loans, they are not recognized in the financial statements.       NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES    ADVANCES    Advances are made to funds for the purposes of capital acquisitions and improvements.  Reimbursements will take place over  the next several years as funds are available.  Advances to and advances from other funds at September 30, 2017 were as  follows:    Advance To Advance From Governmental Activities: General Fund 416,000$         ‐$                       Immokalee Community Redevelopment Agency ‐                         208,901            Other governmental funds: Unincorporated Area MSTD 337,701            ‐                         Improvement Districts ‐                         128,800            Fire Control Districts ‐                         416,000            Government Facilities Impact Fees Fund ‐                         832,800                Total Governmental Activities 753,701            1,586,501        Business‐type Activities: County Water and Sewer 511,025            ‐                         Solid Waste Disposal 321,775            ‐                             Total Business‐type Activities 832,800            ‐                         Total Advances 1,586,501$      1,586,501$       51 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      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, 2017 were as follows:     Due From Due To Governmental Activities: General Fund 476,567$        710,836$        Bayshore Gateway Community Redevelopment Age ‐                       129,603          Immokalee Community Redevelopment Agency ‐                       2,500               Other Governmental Funds:     Road Districts 927,767          ‐                           Unincorporated Area MSTD 322,654          3,454                   Water Management and Pollution Control 45,798            ‐                           Grants and Shared Revenues 402,897          2,844,090           Improvement Districts 29,366            3,981                   Fire Control Districts 24,740            ‐                           Lighting Districts 9,814               ‐                           911 Enhancement Fee ‐                       64,664                Tourist Development 144,227          ‐                           Confiscated Property ‐                       11,352                Other Public Safety Revenue Funds 25,061            87,129                Forest Lakes Limited General Obligation Bonds 3,950               ‐                           Special Obligation Revenue Bonds ‐                       8,350,000           County‐Wide Capital Improvement ‐                       33,247                Parks Improvements 360,192          ‐                           Correctional Facilities Impact Fee 1,428,000       ‐                           Water Management 252,824          22,746                Parks Impact Fee 2,637,000       ‐                           Road Impact Districts 1,129,030       217,036              Road Construction 1,134,717       13,282                Government Facilities Impact Fee 2,527,000       ‐                           Law Enforcement Impact Fee 549,000          ‐                           Other Capital Projects 838                  ‐                               Total other governmental funds 11,954,875     11,650,981     Business‐type Activities: Solid Waste 36,829            ‐                       Emergency Medical Services 3,656               12,536            Other Business‐type funds:     Airport Authority 7,472               8,900                   Collier Area Transit 18,761            300                          Total other business‐type funds 26,233            9,200               Internal Service Funds 65,436           47,940                   Total All Funds 12,563,596$ 12,563,596$      52 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 5 – CAPITAL ASSETS    A summary of capital asset activity for the year ended September 30, 2017 is as follows:    October 1, 2016, as previously reported October 1, 2016, as restated (1) Additions Deductions Reclass September 30, 2017 Governmental Activities: Capital assets not depreciated: Land and other non‐depreciable assets  417,017,620$        417,017,620$       3,172,459$      (5,326)$           ‐$                     420,184,753$       Construction in progress 58,116,377             58,116,377           69,796,806     (58,505)          (43,916,107)    83,938,571             Total capital assets not depreciated 475,133,997           475,133,997         72,969,265     (63,831)          (43,916,107)    504,123,324         Capital assets depreciated: Buildings 453,676,245           453,676,245         215,001           (515,668)        4,233,187        457,608,765         Infrastructure 1,036,426,216       1,036,426,216     206,117           (124,200)        34,815,234      1,071,323,367     Improvements other than buildings 285,503,018           285,503,018         500,117           (410,592)        4,448,173        290,040,716         Machinery and equipment 200,494,582           200,494,582         11,781,241     (12,542,465)  360,025           200,093,383           Total capital assets depreciated 1,976,100,061       1,976,100,061     12,702,476     (13,592,925)  43,856,619      2,019,066,231     Less accumulated depreciation: Buildings 177,140,366           177,140,366         14,227,424     (431,193)        ‐                       190,936,597         Infrastructure 374,496,564           374,496,564         34,126,929     (23,805)          ‐                       408,599,688         Improvements other than buildings 176,213,096           176,213,096         12,465,566     (368,382)        ‐                       188,310,280         Machinery and equipment 158,459,333           158,459,333         14,744,795     (12,383,658)  (59,488)            160,760,982           Total accumulated depreciation 886,309,359           886,309,359         75,564,714     (13,207,038) (59,488)           948,607,547           Total depreciable capital assets, net 1,089,790,702      1,089,790,702    (62,862,238)   (385,887)       43,916,107     1,070,458,684     Total Governmental Activities   capital assets, net 1,564,924,699$    1,564,924,699$   10,107,027$   (449,718)$      ‐$                     1,574,582,008$    Business‐type Activities: Capital assets not depreciated: Land and other non‐depreciable assets  31,410,592$          31,467,594$         18,772$           ‐$                     ‐$                     31,486,366$          Construction in progress 54,451,091            54,451,091          33,556,924    (1,192,630)   (20,510,506)   66,304,879             Total capital assets not depreciated 85,861,683            85,918,685          33,575,696    (1,192,630)   (20,510,506)   97,791,245           Capital assets depreciated: Buildings 146,696,001          150,000,851        ‐                        (8,679)           1,412,328       151,404,500         Improvements other than buildings 1,166,393,598      1,168,504,716    11,706,318    (110,556)       17,760,485     1,197,860,963     Machinery and equipment 61,989,507            62,016,510          7,658,700      (3,506,159)   1,397,181       67,566,232             Total capital assets depreciated 1,375,079,106      1,380,522,077    19,365,018    (3,625,394)   20,569,994     1,416,831,695     Less accumulated depreciation: Buildings 83,228,230            83,228,230          4,604,082      (5,424)           ‐                       87,826,888           Improvements other than buildings 436,954,191          436,954,191        37,730,011    (110,556)       ‐                       474,573,646         Machinery and equipment 35,960,202            35,960,202          7,201,777      (3,473,984)   59,488            39,747,483             Total accumulated depreciation 556,142,623          556,142,623        49,535,870    (3,589,964)   59,488            602,148,017           Total depreciable capital assets, net 818,936,483          824,379,454        (30,170,852)   (35,430)         20,510,506     814,683,678         Total Business‐type Activities   capital assets, net 904,798,166$       910,298,139$      3,404,844$     (1,228,060)$  ‐$                     912,474,923$           (1) Restatement of capital assets as of October 1, 2016 is a result of the Collier County Water and Sewer District integrating the  Orange Tree Utility System during the 2017 fiscal year.  For additional information, please see Note 18 on page 80. 53 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 5 – CAPITAL ASSETS – CONTINUED    Schedule of depreciation for fiscal year 2017:    General Government 7,975,097$          Public Safety 14,735,004          Physical Environment 5,904,295            Transportation 34,681,929          Economic Environment 324,150                Human Services 367,592                Culture and Recreation 8,746,917                Subtotal 72,734,984          Internal Service Funds 2,829,730                Total Governmental Activities 75,564,714$        Water and Sewer 43,301,502$        Solid Waste 1,421,945            EMS 1,386,231            Airport Authority 1,514,603            Mass Transit 1,911,589                Total Business‐type Activities 49,535,870$          NOTE 6 – LONG‐TERM DEBT    SUMMARY OF CHANGES IN LONG‐TERM OBLIGATIONS    The following is a summary of changes in long‐term obligations for the year ended September 30, 2017:    October 1, 2016, as restated Additions Reductions Premium  Amortized, net September 30, 2017 Due within one year Governmental Activities:Bonds Payable $     315,270   $                  ‐ $      (20,340)$                       ‐   $          294,930 $        21,115  Premium on Bonds Payable            15,321                        ‐                       ‐                 (1,450)                 13,871                       ‐  Notes Payable              5,845               5,293            (6,066)                          ‐                    5,072                 457  Capital Lease Obligations                 937                        ‐                (621)                          ‐                       316                    87  Self‐Insurance Claims 7,902             54,722          (54,139)        ‐                                          8,485 6,171           Net Pension Liability 225,278         30,005          ‐                   ‐                                     255,283 1,952           Net OPEB Liability 24,557          1,398           (1,318)         ‐                                        24,637 ‐                    Compensated Absences            26,663               9,413            (7,607)                          ‐                  28,469              9,733      Total 621,773$      100,831$     (90,091)$      (1,450)$             631,063$           39,515$        Business‐type Activities: Bonds and Loans Payable 168,475$      ‐$                   (99,545)$      ‐$                        $            68,930 3,968$          Premium on Bonds Payable 11,848           ‐                    ‐                   (602)                                 11,246 ‐                    Notes Payable 64                   89,984         (2,529)         ‐                                        87,519 9,640           Capital Lease Obligations 1,247            ‐                     (382)            ‐                                             865 344               Landfill Closure Liability 1,884            ‐                     (107)            ‐                                          1,777 ‐                    Net Pension Liability 45,134          6,394           ‐                   ‐                                        51,528 311               Net OPEB Liability 2,382            218               (143)            ‐                                          2,457 ‐                    Compensated Absences 2,782            2,454           (2,294)         ‐                                          2,942 2,353               Total 233,816$      99,050$       (105,000)$   (602)$                227,264$           16,616$        000's Omitted   54 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 6 – LONG‐TERM DEBT – CONTINUED    DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE    Bonds, loans and notes payable at September 30, 2017 were composed of the following:    GOVERNMENTAL ACTIVITIES Governmental Activities Limited General Obligation Bonds $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit, due in installments of $300,000 to $540,000 through January 1,  2022; interest at 3.75% to 4.25% and collateralized by a limited ad valorem pledge of up to 4 mils.2,490,000$          Total Governmental Activities Limited General Obligation Bonds            2,490,000$          Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds, due in annual installments of $2,700,000 to $6,605,000 through June1,2023; interest at 3.00% to 5.00% and collateralized by a pledge on the combined gas tax proceeds. 20,190,000$       $89,780,000 2014 Gas Tax Refunding Revenue Bonds, due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds. 74,155,000          $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to $3,860,000 through July 1, 2034; interest at 3.00% to 4.50% and collateralized by a pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities.   47,400,000          $24,620,000 2010B Special Obligation Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities.   12,190,000          $92,295,000 2011 Special Obligation Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by a pledge on legally available non‐ad valorem revenues,including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities.   64,700,000          $73,805,000 2013 Special Obligation Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by a pledge on legally available non‐ad valorem revenues,including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities.   73,805,000          Total Governmental Activities Revenue Bonds 292,440,000$        55 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 6 – LONG‐TERM DEBT – CONTINUED    Governmental Activities Note Payable $5,293,293 2017 Bayshore Gateway Community Redevelopment Agency TaxableNotewithTDBank, N.A., due in monthly installments of $35,574 to $52,349 through March 1, 2027; interest at 3.56% and collateralized by a pledge on all legally available non‐ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency.5,072,089$             Total Governmental Activities Note Payable 5,072,089$             Total Governmental Activities Obligations 300,002,089$         Unamortized Bond Premium 13,871,404$           Governmental Activities Obligations, Net 313,873,493$         Less Current Portion of Governmental Activities Obligations (21,571,891)$          Long‐Term Portion of Governmental Activities Obligations, Net 292,301,602$         BUSINESS‐TYPE ACTIVITIES Business‐type Activities Revenue Bonds $17,769,080 2013 Collier County Water and Sewer Refunding Revenue Bond due in annual installments of $1,369,430 to $4,312,275, commencing July 1, 2014 through July 1, 2021; interest at 1.47% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District.  5,670,968$             $17,687,000 2015 Collier County Water and Sewer Refunding Revenue Bond due in annual installments of $2,533,000 to $4,561,000, commencing July 1, 2017 through July 1, 2022; interest at 1.75% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District.  15,154,000             $48,105,000 2016 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $5,035,000 to $7,090,000, commencing July 1, 2029 through July 1, 2036; interest at 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District.  48,105,000             Total Business‐type Activities Revenue Bonds 68,929,968$           Business‐type Activities Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits.  Non‐interest bearing agreement.65,557$                   $89,982,000 2016 County Water and Sewer District Refunding Revenue Note with Florida Community Bank, N.A., due in monthly installments of $2,881,000 to $9,574,000 through July 1, 2029; interest at 1.80% and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.87,453,000$           Total Business‐type Activities Loans and Notes Payable 87,518,557$           Total Business‐type Activities Obligations 156,448,525$         Unamortized Bond Premium 11,245,770$           Business‐type Activities Obligations, Net 167,694,295$         Less Current Portion of Business‐type Activities Obligations Payable from Unrestricted Assets (10,156,546)$          Less Current Portion of Business‐type Activities Obligations Payable from Restricted Assets (3,451,072)$            Long‐Term Portion of Business‐type Activities Obligations, Net 154,086,677$             56 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 6 – LONG‐TERM DEBT – CONTINUED    SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY    The total annual debt service requirements to maturity of long‐term debt, excluding compensated absences, capitalized leases,  premiums, discounts and arbitrage rebate liability, are as follows:      Fiscal Year Totals Principal Interest Principal Interest Principal Interest 2018 460,000$        95,475$       20,655,000$     10,766,957$     456,891$       173,159$      32,607,482$      2019 475,000          76,181         21,440,000       9,961,048         473,424         156,626        32,582,279        2020 495,000          55,569         22,270,000       9,145,667         490,556         139,494        32,596,286        2021 520,000          34,000         23,085,000       8,307,969         508,308         121,743        32,577,020        2022 540,000          11,475         23,960,000       7,407,156         526,702         103,349        32,548,682        2023‐27 ‐                        ‐                     90,940,000       25,547,078       2,616,208      219,022        119,322,308      2028‐32 ‐                        ‐                     52,660,000       13,604,257       ‐                      ‐                      66,264,257        2033‐37 ‐                        ‐                     37,430,000       2,830,850       ‐                    ‐                      40,260,850      Totals 2,490,000$     272,700$     292,440,000$   87,570,982$     5,072,089$    913,393$      388,759,164$    Governmental Activities Limited General Obligation Bonds Revenue Bonds Notes Payable      Fiscal Year Totals Principal Interest Principal Interest 2018 3,968,061$        2,753,808$      9,639,557$        1,574,154$      17,935,580$      2019 4,031,480          2,688,256        9,303,000          1,401,822        17,424,558        2020 4,099,464          2,621,655        9,027,000          1,234,368        16,982,487        2021 4,164,963          2,553,914        9,189,000          1,071,882        16,979,759        2022 4,561,000          2,485,067        7,891,000          906,480           15,843,547        2023‐27 ‐                           12,026,250      35,130,000        2,408,652        49,564,902        2028‐32 21,715,000        10,464,000      7,339,000          183,960           39,701,960        2033‐37 26,390,000        3,379,500        ‐                           ‐                        29,769,500        Totals 68,929,968$     38,972,450$  87,518,557$     8,781,318$     204,202,293$    Business‐type Activities Revenue Bonds Notes Payable      CURRENT YEAR DEBT REFUNDING    On November 17, 2016, the Collier County Water and Sewer District issued the Series 2016B Water and Sewer Refunding  Revenue Note in the par amount of $89,982,000.  The note was issued on a subordinate basis for the purpose of currently  refunding the District’s outstanding State Revolving Fund Loans.  The final maturity of the refunding note is July 1, 2029, with  an interest rate of 1.80%.  The refunding achieved a net present value savings of 4.19% on the refunded loans.  The current  refunding achieved an aggregate debt service savings of $4,611,821 and an economic gain of $3,918,803.  The refunded State  Revolving Fund Loans were redeemed on November 17, 2016.     57 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 6 – LONG‐TERM DEBT – CONTINUED    RESTRICTIVE COVENANTS    According  to  County  resolutions  authorizing  the  issuance  of  the  Series  2010,  2010B,  2011  and  2013  Special  Obligation  Refunding Revenue Bonds, the County has covenanted, subject to certain restrictions and limitations, to appropriate in its  annual budget, by amendment if necessary, from non‐ad valorem revenues amounts sufficient to pay principal and interest on  the combined Special Obligation Bonds.    According to County resolutions authorizing the issuance of the Series 2012 and 2014 Gas Tax Revenue Refunding Bonds, the  issues are payable from and secured by liens on gas tax revenues.      Bayshore Gateway Community Redevelopment Agency (Agency) tax increment revenues are pledged for the repayment of the  Agency’s Series 2017 taxable note.  The Agency has additionally covenanted to budget and appropriate from all legally available  non‐ad valorem revenues of the Agency to pay the Series 2017 note to the extent the tax increment revenues are insufficient.    The Series 2017 note does not constitute an indebtedness of the County and is payable solely from the security provided by  the Bayshore Gateway Community Redevelopment Agency.  The Agency is required to have a debt service reserve balance with  the lending bank of $315,026 as of the end of fiscal year 2017.  The Agency was in compliance with these covenants for the  year ended September 30, 2017.    The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating  expenses, to repay $68,929,968 in Series 2013, 2015 and 2016 revenue bonds.  Proceeds from the bonds were used for the  refinancing of bonds issued for purposes of rehabilitation or expansion of the District’s water and sewer systems.  Principal and  interest are payable through July 1, 2036, solely from the net revenues and certain other fees and charges derived from  operation of the County's Water and Sewer District (District).  The pledge of net revenues by the District from the operation of  the system does not constitute a lien upon the system or any other property of the County.  The resolutions authorizing the  revenue bonds include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to  provide in each year net revenues, as defined in the bond resolutions,  which together with system development fees (impact  fees) and special assessment proceeds (if applicable) received shall be at least 125% of the annual debt service requirements  for the bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual  debt service on the bonds.  Fiscal year 2017 pledged revenues, net of operating expenses (excluding depreciation and  amortization), were $42,140,328, and $54,597,393 when system development fees were included.  Principal and interest paid  on the bonds during fiscal year 2017 totaled $6,720,696, providing coverage of 627% and 812%, respectively.  In addition, bond  covenants require a renewal and replacement amount equal to $300,000 in the District funds. The District was in compliance  with these covenants for the year ended September 30, 2017.    The District has a note outstanding in the amount of $87,453,000 with Florida Community Bank, N.A.  This note is collateralized  by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and  system development fees.  The lien is subordinate in all respects to the liens placed upon pledged revenues established by  bonded indebtedness.  The District’s note was in compliance with these covenants for the year ended September 30, 2017.    LEGAL DEBT MARGIN    The Constitution of the State of Florida and the Florida Statutes set no legal debt limit.          58 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 6 – LONG‐TERM DEBT – CONTINUED     INTEREST CAPITALIZED    Interest costs on the long‐term debt of business‐type activities, including capitalized leases, incurred and capitalized during the  year ended September 30, 2017 were as follows:          Total Interest  Cost Incurred  Interest Cost  Capitalized  Net Interest  Expense  Business‐type Activities    $ 4,498,354 $1,444,414 $3,053,940    Interest expense is shown as a direct expense of the Business‐type Activities.      LEASE OBLIGATIONS    Capitalized leases payable at September 30, 2017 amounted to $1,180,649.  These obligations, which are collateralized by  equipment and vehicles, have total annual installments ranging from $29,702 to $446,024 including interest ranging from  1.83% to 4.82% and mature through 2022.  As of year‐end, equipment currently leased under capital leases in the governmental  activities had a historical cost of $2,914,737 and accumulated depreciation of $2,015,393.  Equipment currently leased under  capital leases in the business‐type activities had a historical cost of $2,518,891 and accumulated depreciation of $1,477,418.    Future minimum capital lease obligations as of September 30, 2017 were as follows:     Governmental Business‐type Activities Activities Total 92,888$           353,136$         446,024$     92,889             352,412           445,301        92,887             94,432              187,319        40,233             78,693              118,926        29,702             ‐                          29,702          Total minimum lease payments 348,599          878,673           1,227,272    Less amount representing interest (32,798)           (13,825)            (46,623)         Present value of minimum lease payments 315,801$        864,848$         1,180,649$  2018 2019 2020 2021 2022    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,  2017 were $1,706,067.  Total rental expenditures for all operating leases within business‐type activities and governmental  activities for the year ended September 30, 2017 were $218,430.          59 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      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, 2017, the outstanding principal amount payable on all component unit conduit debt was $427,428,772  and is made up of the following:    Industrial development revenue bonds 210,695,000$      Housing finance revenue bonds 24,978,772          Health facilities revenue bonds 103,985,000        Educational facilities revenue bonds 87,770,000          Total 427,428,772$         NOTE 8 – DEFINED BENEFIT PENSION PLANS    BACKGROUND    The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan  for participating public employees.  The FRS was amended in 1998 to add the Deferred Retirement Option Program under the  defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for  FRS members effective July 1, 2002.  This integrated defined contribution pension plan is the FRS Investment Plan.  Chapter  112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost‐sh aring multiple‐employer defined  benefit pension plan, to assist retired members of any State‐administered retirement system in paying the costs of health  insurance.    Essentially all regular employees of the County are eligible to enroll as members of the State‐administered FRS.  Provisions  relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter  238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits  are defined and described in detail.  Such provisions may be amended at any time by the Florida Legislature.  The FRS is a single  retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of  the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs.  A comprehensive annual  financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and  other  relevant  information,  is  available  from  the  Florida  Department  of  Management  Services’  web  site  (www.dms.myflorida.com).    The County’s pension expense totaled $47,404,546 for both the FRS Pension Plan and HIS Plan for the year ended September  30, 2017.       60 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED    FLORIDA RETIREMENT SYSTEM PENSION PLAN     PLAN DESCRIPTION    The Florida Retirement System Pension Plan (FRS Plan) is a cost‐sharing multiple‐employer defined benefit pension plan, with  a Deferred Retirement Option Program (DROP) for eligible employees.  The general classes of membership are as follows:    Regular Class – Members of the FRS who do not qualify for membership in the other classes.    Elected County Officers Class – Members who hold specified elective offices in local government.    Senior Management Service Class (SMSC) – Members in senior management level positions.    Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for  this class.    Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS  Plan on or after July 1, 2011, vest at 8 years of creditable service.  All vested members, enrolled prior to July 1, 2011, are eligible  for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk  who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service.  All members enrolled in the  FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years  of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or  at any age after 30 years of service.  Employees enrolled in the FRS Plan may include up to 4 years of credit for military service  toward creditable service.  The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for  each year a member retires before his or her normal retirement date.  The FRS Plan provides retirement, disability, death  benefits, and annual cost‐of‐living adjustments to eligible participants.     DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the  FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer.  An  employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain  instructional personnel may participate for up to 96 months.  During the period of DROP participation, deferred monthly  benefits are held in the FRS Trust Fund and accrue interest.  The net pension liability does not include amounts for DROP  participants, as these members are considered retired and are not accruing additional pension benefits.    BENEFITS PROVIDED     Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service  credit.  Credit for each year of service is expressed as a percentage of the average final compensation.  For members initially  enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members  initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings.   The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on  the retirement class to which the member belonged when the service credit was earned. Members are eligible for in‐line‐of‐ duty or regular disability and survivors’ benefits.     61 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED    The following chart shows the percentage value for each year of service credit earned:    % Value (per year of  service) Retirement up to age 62 or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68 3.00 2.00 Service from December 1, 1970 through September 30, 1974 2.00 Service on and after October 1, 1974 3.00 Special Risk Class Class, Initial Enrollment and Retirement Age/Years of Service: Regular Class members initially enrolled before July 1, 2011 Regular Class members initially enrolled on or after July 1, 20 11 Elected County Officers' Class Senior Management Service Class    As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service  credit was accrued before July 1, 2011, the annual cost‐of‐living adjustment is 3 percent per year.  If the member is initially  enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost‐of‐living  adjustment.  The annual cost‐of‐living adjustment is a proportion of 3 percent determined by dividing the sum of the pre‐July  2011 service credit by the total service credit at retirement multiplied by 3 percent.  FRS Plan members initially enrolled on or  after July 1, 2011, will not have a cost‐of‐living adjustment after retirement.    CONTRIBUTIONS    The Florida Legislature establishes contribution rates for participating employers and employees.  Effective July 1, 2011, all FRS  Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer  contribution rates by job class for the periods from October 1, 2016 through June 30, 2017 and from July 1, 2017 through  September 30, 2017, respectively, were as follows: Regular employees‐7.52% and 7.92%; County Elected Officials‐42.47% and  45.50%;  Senior  Management  Services‐21.77%  and  22.71%;  and  DROP participants‐12.99%  and  13.26%.  The  County’s  contributions to the FRS Plan were $20,299,090 for the year ended September 30, 2017.    PENSION COSTS    At September 30, 2017, the County reported a liability of $235,664,630 for its proportionate share of the FRS Plan’s net pension  liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net  pension liability was determined by an actuarial valuation as of July 1, 2017. The County’s proportion of the net pension liability  was based on the County’s contributions received by FRS during the measurement period for employer payroll paid dates from  July 1, 2016, through June 30, 2017, relative to the total employer contributions received from all of FRS’s participating  employers. At June 30, 2017, the County’s proportion was 0.7967 21%, which was an increase of 0.023782% from its proportion  measured as of June 30, 2016.    62 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED    For the year ended September 30, 2017, the County recognized pension expense of $41,364,105 for its proportionate share of  FRS’s pension expense. In addition, the County reported its proportionate share of FRS’s deferred outflows of resources and  deferred inflows of resources from the following sources:    Description Deferred Outflows  of Resources Deferred Inflows  of Resources Differences Between Expected and Actual Economic Experience 21,6 28,342$         1,305,460$           Changes in Actuarial Assumptions 79,199,953            ‐                             Net Difference Between Projected and Actual Earnings on Pension Plan  Investments ‐                              5,840,358             Changes in Proportion and Differences Between County Contributions and  Proportionate Share of Contributions 10,597,507            1,447,179             County Contributions Subsequent to the Measurement Date 5,480,760              ‐                             Total 116,906,562$       8,592,997$             Deferred outflows of resources related to pensions of $5,480,760, resulting from County contributions to the FRS Plan  subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September  30, 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an  increase in pension expense as follows:    Year Ending  September 30 Amount 2018 14,340,636$        2019 34,613,723          2020 24,891,652          2021 6,270,810            2022 16,604,435          Thereafter 6,111,549              ACTUARIAL ASSUMPTIONS    The total pension liability in the July 1, 2017, actuarial valuation was determined using the following actuarial assumptions,  applied to all periods included in the measurement:    Inflation 2.60% per year Salary Increases                      3.25%, Average, Including Inflation Investment Rate of Return 7.10%, Net of Pension Plan Investment Expense    Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July  1, 2017, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 20 13.      The long‐term expected rate of return on pension plan investments was not based on historical returns, but instead is based  on a forward‐looking capital market economic model.  The allocation policy’s description of each asset class was used to map  the target allocation to the asset classes shown below.  Each asset class assumption is based on a consistent set of underlying  assumptions, and includes an adjustment for the inflation assumption.     63 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED    The target allocation, as outlined in the FRS Plan’s investment policy, and best estimates of arithmetic and geometric real rates  of return for each major asset class are summarized in the following table:    Asset Class                Target  Allocation     Annual  Arithmetic  Return Compound  Annual  (Geometric)  Return Standard  Deviation Cash 1.0% 3.0% 3.0% 1.8% Fixed income 18.0% 4.5% 4.4% 4.2% Global equity 53.0% 7.8% 6.6% 17.0% Real estate (property) 10.0% 6.6% 5.9% 12.8% Private equity 6.0% 11.5% 7.8% 30.0% Strategic investments 12.0% 6.1% 5.6% 9.7% Totals 100.0% Assumed Inflation ‐ Mean 2.6% 1.9%   DISCOUNT RATE    The discount rate used to measure the total pension liability was 7.10% for the FRS Plan. The projection of cash flows used to  determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute.  Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to make all projected  future benefit payments of current active and inactive employees. Therefore, the long‐term expected rate of return on pension  plan investments was applied to all periods of projected benefit payments to determine the total pension liability.     PENSION LIABILITY SENSITIVITY    The following presents the County’s proportionate share of the net pension liability for the FRS Plan, calculated using the  discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability  would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current  discount rate:    Description 1% Decrease in  Discount Rate Current Discount  Rate 1% Increase in  Discount Rate FRS Plan Discount Rate 6.10% 7.10% 8.10% County's Proportionate Share of the FRS Plan Net  Pension Liability 426,538,747$ 235,664,630$    77,195,382$        PENSION PLAN FIDUCIARY NET POSITION    Detailed information about the FRS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan and Other  State‐Administered  Systems  Comprehensive  Annual  Financial  Report. That report may be obtained through the Florida  Department of Management Services website at www.dms.myflorida.com.       64 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED     RETIREE HEALTH INSURANCE SUBSIDY PROGRAM    PLAN DESCRIPTION    The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost‐sharing multiple‐employer defined benefit pension plan  established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time.  The benefit  is a monthly payment to assist retirees of State‐administered retirement systems in paying their health insurance costs and is  administered by the Florida Department of Management Services, Division of Retirement.     BENEFITS PROVIDED       For the fiscal year ended June 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year  of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment  of $150 per month, pursuant to Section 112.363, Florida Statutes.  To be eligible to receive a HIS Plan benefit, a retiree under  a State‐administered retirement system must provide proof of health insurance coverage, which may include Medicare.    CONTRIBUTIONS    The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature.  Employer  contributions are a percentage of gross compensation for all active FRS members.  The FRS contribution rates include a 1.66%  HIS Plan subsidy for the periods October 1, 2016 through June 30, 2017 and from July 1, 2017 through September 30, 2017,  pursuant to Section 112.363, Florida Statutes.  The County contributed 100 percent of its statutorily required contributions for  the current and preceding 3 years.  HIS Plan contributions are deposited in a separate trust fund from which payments are  authorized.  HIS Plan benefits are not guaranteed and are subje ct to annual legislative appropriation.  In the event the legislative  appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled.  The County’s contributions to the HIS Plan were $3,593,353 for the year ended September 30, 2017.    PENSION COSTS     At September 30, 2017, the County reported a liability of $71,145,914 for its proportionate share of the HIS Plan’s net pension  liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net  pension liability was determined by an actuarial valuation as of July 1, 2017. The County’s proportion of the net pension liability  was based on the County’s contributions received during the measurement period for employer payroll paid dates from July 1,  2016, through June 30, 2017, relative to the total employer contributions received from all participating employers. At June 30,  2017, the County’s proportion was 0.665384%, which was an increase of 0.019764% from its proportion measured as of June  30, 2016.    For the year ended September 30, 2017, the County recognized pension expense of $6,040,441 for its proportionate share of  HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and  deferred inflows of resources from the following sources:      Description Deferred Outflows  of Resources Deferred Inflows of  Resources Differences Between Expected and Actual Economic Experience ‐$                             148,138$                Changes in Actuarial Assumptions 10,000,668            6,152,063               Net Difference Between Projected and Actual Earnings on HIS Program Investments 39,456                    ‐                               Changes in Proportion and Differences Between County Contributions and  Proportionate Share of Contributions 4,156,126               993,388                  County Contributions Subsequent to the Measurement Date 921,118                  ‐                               Total 15,117,368$          7,293,589$             65 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED     Deferred outflows of resources related to pensions of $921,118, resulting from County contributions to the HIS Plan subsequent  to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2018.  Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in  pension expense as follows:    Year Ending September 30 Amount 2018 1,794,875$       2019 1,787,408          2020 1,783,825          2021 1,451,616          2022 700,173             Thereafter (615,236)               ACTUARIAL ASSUMPTIONS     The total pension liability in the July 1, 2017, actuarial valuation was determined using the following actuarial assumptions,  applied to all periods included in the measurement:    Inflation 2.60% per year Salary Increases                      3.25%, Average, Including Inflation Municipal Bond Rate 3.58%   Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July  1, 2017, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 20 13.      DISCOUNT RATE    The discount rate used to measure the total pension liability was 3.58% for the HIS Plan. In general, the discount rate for  calculating the total pension liability is equal to the single rate equivalent to discounting at the long‐term expected rate of  return for benefit payments prior to the projected depletion date.  Because the HIS benefit is essentially funded on a pay‐as‐ you‐go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal  bond rate selected by the HIS Plan sponsor.  The Bond Buyer General Obligation 20‐Bond Municipal Bond Index was adopted  as the applicable municipal bond index.     PENSION LIABILITY SENSITIVITY    The following presents the County’s proportionate share of the net pension liability for the HIS Plan, calculated using the  discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability  would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current  discount rate:    Description 1% Decrease in  Discount Rate Current Discount  Rate 1% Increase in  Discount Rate HIS Plan Discount Rate 2.58% 3.58% 4.58% County's Proportionate Share of the HIS Plan Net  Pension Liability 81,186,908$     71,145,914$        62,782,318$         66 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED     PENSION PLAN FIDUCIARY NET POSITION    Detailed information about the HIS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan and Other  State‐Administered  Systems  Comprehensive  Annual  Financial  Report. That report may be obtained through the Florida  Department of Management Services website at www.dms.myflorida.com.      NOTE 9 – DEFINED CONTRIBUTION PLAN     The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment  Plan (Investment Plan).  The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida  Comprehensive Annual Financial Report.  As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to  participate in the Investment Plan in lieu of the FRS defined benefit plan.  County employees participating in DROP are not  eligible to participate in the Investment Plan.  Employer and employee contributions, including amounts contributed to  individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment  funds.  Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by  the Florida Legislature.  The Investment Plan is funded with the same employer and employee contribution rates that are based  on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan.  Contributions  are directed to individual member accounts, and the individual members allocate contributions and account balances among  various approved investment choices.  Costs of administering the plan, including the FRS Financial Guidance Program, are  funded through an employer contribution of .06% of payroll from July 1, 2016 to June 30, 2017 and .06% of payroll from July 1,  2017 to June 30, 2018 in addition to forfeited benefits of plan members.  The County’s Investment Plan pension expense totaled  $6,273,361 for the year ended September 30, 2017.      For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service   for employer contributions and investment earnings.  If an accumulated benefit obligation for service credit originally earned  under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS  Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the  earnings on the funds.  Non‐vested employer contributions are placed in a suspense account for up to 5 years.  If the employee  returns to FRS‐covered employment within the 5‐year period, the employee will regain control over their account.  If the  employee does not return within the 5‐year period, the employee will forfeit the accumulated account balance.  For the fiscal  year ended June 30, 2017, the information for the amount of forfeitures was unavailable from the SBA; however, management  believes that these amounts, if any, would be immaterial to the County.    After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure  a periodic payment under the Investment Plan, receive a lump‐sum distribution, leave the funds invested for future distribution,  or any combination of these options.  Disability coverage is provided; the member may either transfer the account balance to  the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS  Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income.       NOTE 10 – TRANSFERS  Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to  the fund that statute or budget requires they be expended from, (2) move receipts restricted to debt service to the debt service  fund as payments become due and (3) use unrestricted revenues collected in the General Fund to finance operating and capital  programs accounted for in other funds in accordance with budgetary authorizations.       67 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 10 – TRANSFERS – CONTINUED    Transfers for the year ended September 30, 2017 were as follows:    Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Nonmajor Governmental Funds 58,595,399$     Solid Waste Disposal 36,829               Emergency Medical Services 17,041,600       Nonmajor Business‐type 4,568,439         Internal Service Funds 655,000            Bayshore Gateway CRA Nonmajor Governmental Funds 85,500               Nonmajor Governmental Funds General Fund 3,189,354         Bayshore Gateway CRA 136,800            Immokalee CRA 85,000               Nonmajor Governmental Funds 46,853,890       County Water and Sewer 13,600               Nonmajor Business‐type 447,553            Internal Service Funds 2,125,500         Business‐type Activities: County Water and Sewer General Fund 6,313,900         Nonmajor Governmental Funds 218,500            Solid Waste Disposal 139,600            Internal Service Funds 20,500               Solid Waste Disposal General Fund 736,359            Internal Service Funds 2,700                 Emergency Medical Services Nonmajor Governmental Funds 3,000                 Internal Service Funds 6,900                 Nonmajor Business‐type General Fund 259                    Nonmajor Governmental Funds 13,408               Internal Service Funds General Fund 1,076,600         Nonmajor Governmental Funds 525,000            Internal Service Funds 34,000               Total Operating Transfers 142,925,190$      NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION    Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred  inflows of resources and is categorized as follows:    Net investment in capital assets:  Total capital assets, net of debt issued in the acquisition of these assets and net  of depreciation is reported separately in the net position section.      Restricted for growth related capital expansion:  Impact fees are restricted for growth related capital expansion.     Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital  improvements.     68 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED    Restricted for tourist development:  Tourist development tax proceeds are restricted for tourist related activities.    Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of ad valorem  revenues restricted for the maintenance and management of environmentally sensitive land.    Restricted for community redevelopment:  Tax increment revenues generated in the redevelopment areas are  restricted for redevelopment purposes.    Restricted for grants: State and federal government grant monies restricted for grant related purposes.    Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded  by operating transfers from the appropriate funds.  The use of monies in the sinking fund is restricted to the  payment of principal and interest on long‐term debt.    Restricted for nonexpendable purposes – other: Balances are restricted in conjunction with the maintenance and  management of certain conservation lands for mitigation purposes.    Restricted for special revenues – other:  Balances are restricted for specific uses associated with the revenue  collected.    Restricted for renewal and replacement:  Balance is restricted in conjunction with the issuance of County Water  and Sewer District Bonds.  The use of monies in the renewal and replacement fund is restricted to funding the cost  of additions, replacement or major repair of water and wastewater capital assets.    Unrestricted: Balances are not restricted for specific purposes.    Governmental funds report fund balances as either spendable or non‐spendable.  Spendable fund balances are further  classified as restricted, committed, assigned or unassigned depending upon the extent to which there are external or internal  constraints on the spending of these fund balances.    Non‐spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required to be  maintained intact.  Items that are not spendable also include inventories, prepaid amounts and long term portions of advances,  loans and notes receivable.    Spendable fund balance:      Restricted fund balance – Amounts that can be spent only for specific purposes through restrictions placed upon  them by external resource providers such as creditors, grantors or contributors; or imposed by law through  constitutional provisions or enabling legislation.      Committed fund balance – Amounts that can be spent only for specific purposes determined by the County’s  highest decision making authority, the Board of County Commissioners, via ordinance.  Commitments may be  modified or removed by the Board of County Commissioners only by amending the ordinance that created the  original commitment.    Assigned fund balance – Amounts that are intended to be spent for specific purposes as determined by the Board  of County Commissioners, but that are neither restricted nor committed to the specific purpose.    Unassigned fund balance – Unassigned fund balance is the residual classification for the County’s general fund.   Amounts  in  this  classification  are  spendable  but  have  not  been deemed  restricted,  committed  or  assigned.   Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have  exceeded the amounts restricted, committed or assigned for those specific purposes.    When both restricted and unrestricted amounts are available, th e County spends the restricted amounts first, unless prohibited  by law, grant agreements or other contractual arrangement.  Further, when committed fund balance is available the County  will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the  unrestricted fund balance classifications could be used.  69 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED    A detailed schedule of fund balances at September 30, 2017 is as follows:     General Fund   Bayshore Gateway Community Redevelopment Agency   Immokalee Community Redevelopment Agency   Other Governmental Funds   Total Governmental Funds  Nonspendable:      Endowments ‐$                     ‐$                         ‐$                         1,582,800$       1,582,800$            Inventory 1,357,822       ‐                           ‐                           802,254            2,160,076              Advances 416,000          ‐                           ‐                           ‐                          416,000                 Notes 1,576,731       ‐                           ‐                           ‐                          1,576,731              Prepaid costs 35,763            ‐                           ‐                           ‐                          35,763               Total nonspendable fund balance 3,386,316       ‐                           ‐                           2,385,054         5,771,370         Restricted for:      Community redevelopment ‐                       11,119,594        293,791              ‐                          11,413,385            Federal and state grants 2,439,787       ‐                           ‐                           11,358,831       13,798,618            Bond covenants or debt service ‐                       ‐                           ‐                           9,476,756         9,476,756              Transportation growth related capital ‐                       ‐                           ‐                           53,802,452       53,802,452            Parks growth related capital expansion ‐                       ‐                           ‐                           25,706,444       25,706,444            Transportation capital projects ‐                       ‐                           ‐                           43,036,330       43,036,330            Community development ‐                       ‐                           ‐                           41,018,502       41,018,502            Transportation operations ‐                       ‐                           ‐                           2,601,289        2,601,289              Tourist development ‐                      ‐                          ‐                           70,307,889      70,307,889            Conservation Collier ‐                      ‐                          ‐                           32,975,606      32,975,606            Emergency 911 ‐                      ‐                          ‐                           3,240,276        3,240,276              Law Enforcement ‐                      ‐                          ‐                           7,524,387        7,524,387              Fire services growth related capital ‐                      ‐                          ‐                           78,696              78,696                    Government facilities growth capital ‐                      ‐                          ‐                           2,392,790        2,392,790              Libraries growth related capital ‐                      ‐                          ‐                           977,049           977,049                 Court functions ‐                      ‐                          ‐                           6,856,656        6,856,656              Public records modernization ‐                      ‐                          ‐                           4,275,405        4,275,405              Other purposes ‐                      1,404,288        1,404,288           Total restricted fund balance 2,439,787      11,119,594       293,791             317,033,646    330,886,818     Committed for:      Special districts ‐                      ‐                          ‐                           28,483,966      28,483,966            Natural resource management ‐                      ‐                          ‐                           2,383,328        2,383,328              Utility regulation ‐                      ‐                          ‐                           1,482,591        1,482,591              Other purposes ‐                      ‐                          ‐                           408,936           408,936              Total committed fund balance ‐                      ‐                          ‐                           32,758,821      32,758,821       Assigned for:      Parks and recreation ‐                      ‐                          ‐                           7,868,666        7,868,666              General building & improvements ‐                      ‐                          ‐                           10,394,628      10,394,628            Water management ‐                      ‐                          ‐                           13,146,769      13,146,769            Libraries ‐                      ‐                          ‐                           300,785           300,785                 Other purposes 1,598,245      ‐                          ‐                           2,111,129        3,709,374           Total assigned fund balance 1,598,245      ‐                          ‐                           33,821,977      35,420,222       Unassigned:54,805,103   ‐                          ‐                          ‐                          54,805,103           Total Fund Balances 62,229,451$ 11,119,594$     293,791$           385,999,498$ 459,642,334$   70 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      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 omis sions;  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  ($250,000  named  storm  deductible;  3%  deductible  of  reported  values  per  damaged  building; subject to $5,000,000  deductible cap)  $50,000 ‐ $75,000,000  Auto liability claims   $300,000 $300,000 ‐ $5,000,000  Employee health claims    $400,000 $450,000 ‐ 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, 2017 the operating departments were charged $40,962,965  for workers' compensation, health and property and casualty self‐insurance programs.    The claims loss reserve for workers' compensation, health and property and casualty of $5,824,759 reported at September 30,  2017 was calculated by third party actuaries based upon GASB Statement No. 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 $3,510,602 are recorded as current liabilities.     The Sheriff participates in the Statewide Florida Sheriff's Self‐Insurance Fund for its professional liability insurance. The fund is  managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating  Sheriff agencies.  The Florida Sheriff's Self‐Insurance Fund provides liability insurance coverage subject to the following  limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member.    The  Sheriff  also  participates  in  the  Statewide  Florida  Sheriff's  Self‐Insurance  Fund  program  for  workers'  compensation  coverage.  The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self‐insurance fund  providing coverage for the first $500,000 of every claim.  Re‐insurance is provided through a third party insurer for all claims  exceeding $500,000 up to $20,000,000.     Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years.    Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated  annual payouts during the fiscal year and to pay for the estimated operating costs of the program.  All liabilities associated with  these self‐insured risks are reported in the basic financial statements of the Statewide Florida Sheriff’s Self‐Insurance Fund.   The Sheriff cannot be additionally assessed for claims paid by the program.     71 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 12 – RISK MANAGEMENT – CONTINUED    The Sheriff has also established a self‐funded employee health plan.  An internal service fund is used to account for the activities  of the plan.  Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding  $200,000.  Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and  current year claims including claims incurred but not yet reported.    The claims loss reserve for health of $2,660,000 reported at September 30, 2017 was calculated by third party actuaries based  upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable  that a loss has been incurred and the amount of that loss can be reasonably estimated.  The entire Sheriff’s health claim loss  reserve is recorded as a current liability.    CHANGES IN SELF‐INSURANCE CLAIMS PAYABLE    Changes in the self‐insurance claims payable for fiscal years 2016 and 2017 were as follows for the County and Sheriff self‐ insurance programs:    Property and Group Workers' Casualty Health Compensation Total Balance at September 30, 2015 854,026$           5,564,000$        541,408$           6,959,434$        Current year claims incurred and   changes in estimates 1,494,744          48,722,181        567,829             50,784,754        Claim payments (1,154,593)         (48,175,181)      (512,244)            (49,842,018)      Balance at September 30, 2016 1,194,177$        6,111,000$        596,993$           7,902,170$        Current year claims incurred and   changes in estimates 748,116             52,756,129        1,218,028          54,722,273        Claim payments (753,492)            (52,757,129)      (629,063)            (54,139,684)      Balance at September 30, 2017 1,188,801$        6,110,000$        1,185,958$        8,484,759$           NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS    PLAN DESCRIPTION AND BENEFITS PROVIDED    The  County  provides  post  employment  healthcare  benefits  for  retirees  through  a  single  employer  defined  benefit  plan  (County’s OPEB Plan) and can amend the benefits provisions.  The participants of this plan include retirees of the Board of  County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the  Supervisor of Elections.  The Sheriff also provides post employment healthcare benefits under as separate plan.   In accordance  with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option  of paying premiums to continue in the County’s health insurance plan at the same group rate as for active employees.      The Board of County Commissioners and the Tax Collector also subsidize the cost of the post employment healthcare for  qualifying retirees and each has the authority to amend benefit provisions.  The Board of County Commissioners offers a subsidy  for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15  years of continuous service with the Board.  In addition, the retiree must retire from the Board, be at least 55 years of age or  have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with  no break in time.  Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active  plan.  A subsidy is currently provided to 19 retirees.  The Tax Collector offers a subsidy of 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 for  employees hired prior to June 1, 2015.  A subsidy is currently provided to 4 retirees.     72 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    The County’s OPEB Plan is currently being funded on a pay as you go basis.  No trust or agency fund has been established for  the plan.  The plan does not issue a separate financial report.     PARTICIPANT DATA    As of September 30, 2017, the following employees were covered by the benefit terms:    Inactive employees or beneficiaries currently receiving benefits70  Active employees  2,236    Total employees  2,306    TOTAL OPEB LIABILITY    The County’s total OPEB liability of $8,833,096 was measured as of September 30, 2017 and was determined by an actuarial  valuation as of October 1, 2017.  The following table shows the changes in the County’s total OPEB liability for the year ended  September 30, 2017.    Total OPEB Liability Balance, as of October 1, 2016 8,717,856$    Changes: Service cost 464,531          Interest on total pension liability 248,849          Differences between expected and actual experience (8,258)             Benefit payments (589,882)           Net changes 115,240          Balance, as of September 30, 2017 8,833,096$       OPEB LIABILITY DISCOUNT RATE SENSITIVITY    The following presents the County’s total OPEB liability, as well as what the County’s total OPEB liability would be if it were  calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate:    Description 1% Decrease in  Discount Rate Current Discount  Rate 1% Increase in  Discount Rate OPEB Plan Discount Rate 1.80% 2.80% 3.80% Total OPEB Liability 9,347,700$      8,833,096$         8,244,203$         OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY    The following presents the County’s total OPEB liability, as well as what the County’s total OPEB liability would be if it were  calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare  trend rate:    Description 1% Decrease in  Healthcare Cost  Trend Rate Healthcare Cost  Trend Rate 1% Increase in  Healthcare Cost  Trend Rate OPEB Plan Discount Rate 4.00%5.00%6.00% Total OPEB Liability 8,097,749$      8,833,096$         9,681,447$        73 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB    For the year ended September 30, 2017, the County’s OPEB expense was $713,379.  In addition, the County reported deferred  inflows of resources from the following sources:    Description Deferred Outflows  of Resources Deferred Inflows of  Resources Differences Between Expected and Actual Economic Experience ‐$                            8,258$                      Amounts reported as deferred inflows of resources related to OPEB will be amortized over 4.29 years and will be recognized  as follows:    Year Ending September 30 Amount 2018 1,925$          2019 1,925            2020 1,925            2021 1,925            Thereafter 558                  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 emplo yer  and plan members in the future.  Actuarial calculations reflect a long‐term perspective.  Consistent with that perspective,  actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in  actuarial accrued liabilities and the actuarial value of assets.     The actuarial methods are:    Actuarial cost method Entry Age Actuarial     The actuarial assumptions are:      Discount rate 2.8% (Based on the 20 year AA municipal bond rate)   Healthcare cost trend rate  6% decreasing to 5% in 2026 and thereafter   Salary increase 3%    New employees None    Mortality rates were based on the RP‐2014 Mortality Fully Generational tables using Projection Scale MP‐2016.       74 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    Since the most recent GASB 45 valuation, the following changes have been made:    The actuarial cost method changed from using the Unit Credit Actuarial cost method to the Entry Age Actuarial cost  method.    The discount rate was changed from 3% to 2.8%.    The mortality assumption has been updated from RP‐2014 Mortality Fully Generational using Projection Scale MP‐ 2014 to RP 2014 Mortality Fully Generational using Projection Scale MP‐2016    PLAN DESCRIPTION AND BENEFITS PROVIDED    The Sheriff provides post employment healthcare benefits for retirees through a single employer defined benefit plan (Sheriff’s  OPEB Plan) and can amend the benefit provisions.  In accordance with Florida Statute 112.0801, employees who retire and  immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff’s health  insurance plan at the same group rate as for active employees.  No trust or agency fund has been established for the plan.  The  plan does not issue a separate financial report.     Prior to 2010, the Sheriff subsidized approximately 20% of the cost for both single and family healthcare 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.   Approximately 36% of retirees receive the subsidy.      The Sheriff’s OPEB Plan is currently being funded on a pay as you go basis.  No trust or agency fund has been established for  the plan.  The plan does not issue a separate financial report.     PARTICIPANT DATA    As of September 30, 2017, the following employees were covered by the benefit terms:    Inactive employees or beneficiaries currently receiving benefits 106  Active employees  1,136    Total employees  1,242    TOTAL OPEB LIABILITY    The Sheriff’s total OPEB liability of $18,260,466 was measured as of September 30, 2017 and was determined by an actuarial  valuation as of October 1, 2017.  The following table shows the changes in the Sheriff’s total OPEB liability for the year ended  September 30, 2017.    Total OPEB Liability Balance, as of October 1, 2016 18,221,385$  Changes: Service cost 491,420          Interest on total pension liability 502,621          Differences between expected and actual experience (83,607)           Benefit payments (871,353)           Net changes 39,081            Balance, as of September 30, 2017 18,260,466$   75 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    OPEB LIABILITY DISCOUNT RATE SENSITIVITY    The following presents the Sheriff’s total OPEB liability, as well as what the Sheriff’s total OPEB liability would be if it were  calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate:    Description 1% Decrease in  Discount Rate Current Discount  Rate 1% Increase in  Discount Rate OPEB Plan Discount Rate 4.00%5.00%6.00% Total OPEB Liability 20,078,360$    18,260,466$       16,659,610$       OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY    The following presents the Sheriff’s total OPEB liability, as well as what the Sheriff’s total OPEB liability would be if it were  calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare  trend rate:    Description 1% Decrease in  Healthcare Cost  Trend Rate Healthcare Cost  Trend Rate 1% Increase in  Healthcare Cost  Trend Rate OPEB Plan Discount Rate 6.00%7.00%8.00% Total OPEB Liability 16,554,047$    18,260,466$       20,226,456$       DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB    For the year ended September 30, 2017, the Sheriff’s OPEB expense was $910,434.  In addition, the Sheriff reported deferred  outflows of resources from the following sources:    Description Deferred Outflows  of Resources Deferred Inflows of  Resources Differences Between Expected and Actual Economic Experience 83,607$                  ‐$                               Amounts reported as deferred outflows of resources related to OPEB will be amortized over 7.36 years and will be recognized  as follows:    Year Ending September 30 Amount 2018 11,360$     2019 11,360        2020 11,360        2021 11,360        Thereafter 38,167          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.      76 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      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 emplo yer  and plan members in the future.  Actuarial calculations reflect a long‐term perspective.  Consistent with that perspective,  actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in  actuarial accrued liabilities and the actuarial value of assets.     The actuarial methods are:    Actuarial cost method Entry Age Actuarial     The actuarial assumptions are:      Discount rate 2.75% (Based on the 20 year AA municipal bond rate)   Healthcare cost trend rate  7% decreasing to 5% in 2021 and thereafter   Salary increase None    New employees None    Mortality rates were based on the RP‐2015 Mortality Fully Generational tables using Projection Scale MP‐2016.    Since the most recent GASB 45 valuation, the following changes have been made:    The actuarial cost method changed from using the Unit Credit Actuarial cost method to the Entry Age Actuarial cost  method.    The discount rate was changed from 3% to 2.75%.    The mortality assumption has been updated from RP‐2014 Mortality Fully Generational using Projection Scale MP‐ 2015 to RP 2015 Mortality Fully Generational using Projection Scale MP‐2016      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  No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established  representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible.  The  County’s estimated liability in connection with the landfills is included in the proprietary funds statement of net position.  The  landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional  postclosure care requirements will be recorded as a current cost.           77 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      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.     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, 2017.    HURRICANE IRMA    On September 10, 2017, Category 3 Hurricane Irma made landfall in Collier County.  Statewide, an estimated 6.5 million  Floridians were ordered to evacuate, mostly those living on barrier islands or in coastal areas, in mobile or sub‐standard homes  and in low lying or flood prone areas.  Mandatory evacuations w ere ordered for portions of Collier County.  The primary impacts  of Hurricane Irma were widespread power outages and debris, coastal flooding and beach erosion. The financial impact of  Hurricane Irma to the County is estimated at $174.2 million, with substantial reimbursement from the Federal Emergency  Management Agency and insurances expected.    NOTE 16 – SIGNIFICANT COMMITMENTS    Collier County has active construction projects as of September 30, 2017.  The projects include road construction, governmental  facilities and utilities improvements.  At year end, the County’s commitments with contractors include the following:       Construction Category Commitments Governmental Activities: Other Governmental Funds General Government 138,890$           Physical Environment 7,218,445          Transportation 21,067,651        Culture and Recreation 11,783,271        Business‐type Activities: Water and Sewer Utilities 33,697,897        Solid Waste Disposal Landfill 5,782,106          Other Enterprise Funds Mass Transit 142,097              Total 79,830,357$         78 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017      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 had the following encumbrances as of September 30, 2017:    Encumbrance Category Commitments Governmental Activities: General Fund General Government 581,523$           Public Safety 88,624                Economic Environment 10,160                Human Services 680,403              Culture and Recreation 233,281              Bayshore Gateway Community Redevelopment Agency Economic Environment 71,867                Other Governmental Funds General Government 3,135,254          Public Safety 4,329,592          Physical Environment 2,505,184          Transportation 7,542,645          Economic Environment 3,379,997          Human Services 1,964,450          Culture and Recreation 2,541,107          Business‐type Activities: Water and Sewer Utilities 17,754,487        Solid Waste Disposal Landfill 737,045              Emergency Medical Services Emergency Medical Services 1,413,648          Other Enterprise Funds Airports 103,702              Mass Transit 2,908,102          Internal Service Funds General Government 117,133              Total 50,098,204$           NOTE 17 – SUBSEQUENT EVENTS    GOLDEN GATE UTILITY SYSTEM ACQUISITION    On November 14, 2017 the Board of County Commissioners of Collier County, Florida and ex‐officio as the governing Board of  the Collier County Water‐Sewer District (District) authorized the acquisition of the real and personal property owned or utilized  by the Florida Government Utility Authority to provide water and wastewater services in Collier County, Florida, in the Golden  Gate Community, known as the Golden Gate Utility System (System).  The transfer date was set as March 1, 2018 and the  purchase price for the Golden Gate Utility System was established as the amount required to repay all outstanding bonds and  any additional obligations related to the System.  On February 28, 2018 the Series 2018 Collier County Water and Sewer  Revenue Bond was issued in the par amount of $35,965,000 for purposes of acquiring the System and paying associated costs  of issuance.   Effective as of the transfer date the Golden Gate Utility System was included in the Collier County Water‐Sewer  District service area.       79 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2017    NOTE 17 – SUBSEQUENT EVENTS – CONTINUED  SERIES 2010 SPECIAL OBLIGATION BONDS REFINANCING  On December 28, 2017 Collier County issued the Series 2017 Special Obligation Refunding Revenue Note in the par amount of  $43,713,000.  These bonds were issued for the purpose of advance refunding portions of the County’s outstanding Special  Obligation Revenue Bonds, Series 2010.  The final maturity of the Series 2017 Note is July 1, 2034, with an interest rate of  3.09%.  The advanced refunding achieved a net present value savings of 6.73% on the refunded bonds and an aggregate debt  service savings of $3,530,341.  The Series 2017 Special Obligation Refunding Revenue Note was issued as a direct placement  financing, secured with a lien on parity with all outstanding Special Obligation Refunding Revenue Bonds. The refunded Series  2010 Special Obligation Revenue Bonds have a redemption date of July 1, 2020.  NOTE 18 – GOVERNMENT COMBINATION AND CHANGE IN ACCOUNTING PRINCIPLE  GOVERNMENT COMBINATION  During fiscal year 2017, the Orange Tree Utility System was integrated into the Collier County Water and Sewer District  (District).  This government combination met the criteria for consideration  as  a  continuing  government  merger  as  the  combination involved legally separate entities, with no significant consideration being exchanged, and only one of the entities  continuing in operation. The merger involved the conveyance of water and wastewater utility facilities and was formally  adopted on January 24, 2017 by the Collier County Board of County Commissioners, acting as the ex‐officio governing board of  the Collier County Water and Sewer District.  The District recorded the combined water and wastewater assets at carrying value  as of the beginning of the reporting period as required by GASB Statement No. 69, Government Combinations and Disposals of  Government Operations.   Depreciable capital assets with a historical cost of $10,057,625 and accumulated depreciation of  $4,614,654 were recorded, as well as non‐depreciable assets of $57,002 and miscellaneous supplies inventory at $2,477.  CHANGE IN ACCOUNTING PRINCIPLE  During the year ended September 30, 2017, the County adopted GASB Statement No. 75 Accounting and Financial Reporting  for Postemployment Benefits Other Than Pensions.   These changes require the restatement of the September 30, 2016 net position of the governmental activities, business‐type  activities and proprietary funds as follows:  Governmental  Activities Business‐Type  Activities County Water  and Sewer Solid Waste  Disposal Emergency  Medical  Services Other Funds Governmental  Activities ‐  Internal Service  Funds Net Position, September  30, 2016, as Previously  Reported 1,555,966,436$ 928,046,945$ 808,303,612$ 53,782,774$ 3,624,442$ 61,097,667$ 55,069,396$    Restatement of net  position due to merger ‐    5,502,450  5,502,450    ‐    ‐   ‐  ‐   Cumulative Affect of  Application of GASB 75 (20,682,019)     (2,382,130)  (1,461,672)  (118,514)   (730,836)  (71,108)  3,531,402   Net Position, September  30, 2016, as Restated 1,535,284,417$ 931,167,265$ 812,344,390$ 53,664,260$ 2,893,606$ 61,026,559$ 58,600,798$    Business‐type Activities Enterprise Funds 80 REQUIRED SUPPLEMENTARY  INFORMATION  2017 2016 2015 2014 County's Proportion of the Net Pension Liability 0.796720676% 0.772938545% 0.736106708% 0.703655077% County's Proportionate Share of the Net Pension Liability 235,664,630$       195,167,590$       95,078,054$         42,933,306$          County's Covered Payroll *151,610,739$       144,013,741$       140,176,971$       132,386,835$        County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of  Its Covered Payroll 155.44% 135.52%67.83%32.43% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 83.89%84.88%92.00%96.09% * Covered payroll is pensionable wages as of the measurement date. 2017 2016 2015 2014 Contractually Required Contribution 20,299,090$         20,563,824$         17,830,147$         17,287,796$          Contributions in Relation to the Contractually Required Contribution (20,299,090)          (20,563,824)          (17,830,147)          (17,287,796)           Contribution Deficiency (Excess)‐$ ‐$ ‐$ ‐$  County's Covered Payroll FY 154,614,672$       148,556,236$       139,443,152$       133,436,828$        Contributions as a Percentage of Covered Payroll 13.13%13.84%12.79%12.96% 2017 2016 2015 2014 County's Proportion of the Net Pension Liability 0.665383863% 0.645620406% 0.642983194% 0.621385755% County's Proportionate Share of the Net Pension Liability 71,145,914$         75,244,385$         65,574,171$         58,101,084$          County's Covered Payroll *212,195,163$       199,870,915$       195,154,275$       184,577,284$        County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of  Its Covered Payroll 33.53%37.65%33.60%31.48% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 1.64%0.97%0.50%0.99% * Covered payroll is pensionable wages as of the measurement date. 2017 2016 2015 2014 Contractually Required Contribution 3,593,353$            3,415,537$            2,614,704$            2,131,155$             Contributions in Relation to the Contractually Required Contribution (3,593,353)            (3,415,537)            (2,614,704)            (2,131,155)             Contribution Deficiency (Excess)‐$ ‐$ ‐$ ‐$  County's Covered Payroll FY 216,521,253$       206,179,415$       193,543,352$       185,505,694$        Contributions as a Percentage of Covered Payroll 1.66%1.66%1.35%1.15% SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS Note:  Information is required to be presented for 10 years.  However, until a full 10‐year trend is compiled, the County will present information for only those years for which  information is available. REQUIRED SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS 82 2017 Board of County Commissioners and Constitutional Officers Total OPEB liability Service Cost 464,531$                 Interest 248,849                   Changes of benefit terms ‐  Differences between expected and actual experience (8,258)  Changes of assumptions or other inputs ‐  Benefit payments (589,882)                  Net change in total OPEB liability 115,240                   Total OPEB liability, beginning 8,717,856               Total OPEB liability, ending 8,833,096$            Covered employee payroll 121,574,778           Total OPEB liability as a percentage of covered employee payroll 7.27% Sheriff Total OPEB liability Service Cost 491,420$                 Interest 502,621                   Changes of benefit terms ‐  Differences between expected and actual experience (83,607)                    Changes of assumptions or other inputs ‐  Benefit payments (871,353)                  Net change in total OPEB liability 39,081  Total OPEB liability, beginning 18,221,385             Total OPEB liability, ending 18,260,466$          Covered employee payroll 91,192,818             Total OPEB liability as a percentage of covered employee payroll 20.02% Note:  Information is required to be presented for 10 years.  However, until a full 10‐year trend is compiled, the  County will present information for only those years for which information is available. REQUIRED SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF CHANGES IN THE COLLIER COUNTY TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS 83 THIS PAGE INTENTIONALLY LEFT BLANK  COMBINING AND INDIVIDUAL  FUND FINANCIAL STATEMENTS AND  OTHER SUPPLEMENTAL INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK  Nonmajor Governmental Funds  Special Revenue Funds  ROAD DISTRICTS – To account for taxes levied and expenditures to carry on all work on roads and bridges in the  County except that provided for in capital project funds.   UNINCORPORATED  AREA  MUNICIPAL  SERVICES  TAXING  DISTRICT  –  To  account  for  revenues  derived  from and  expanded for the benefit of the unincorporated areas of the County.   COMMUNITY DEVELOPMENT – To account for building permit and development fees to support licensing, permitting  and inspection services.   WATER MANAGEMENT AND POLLUTION CONTROL – To account for taxes levied County‐wide to provide water  resource management and water pollution control.  GRANTS AND SHARED REVENUES – To account for the revenues received from federal, state and local grants.   IMPROVEMENT  DISTRICTS  –  To  account  for  taxes  levied  within  municipal  service  taxing districts to provide for  specified improvements and/or the maintenance of such improvements.   FIRE CONTROL DISTRICTS – To account for taxes levied within municipal service taxing districts for fire prevention and  control.  LIGHTING DISTRICTS – To account for taxes levied within municipal service taxing district for street lighting.   911  ENHANCEMENT  FEE  –  To  account  for  fees  levied  on  each  telephone  access  line  in the  County  for  the  enhancement of the 911 emergency telephone system.  TOURIST DEVELOPMENT – To account for the 4% tourist development tax.   STATE HOUSING INITIATIVE PARTNERSHIP – To account for state revenues received to provide affordable residential  housing for very low to moderate income persons and those who have special housing needs.   800  MHZ  INTERGOVERNMENTAL  RADIO  COMMUNICATIONS  PROGRAM  FUND – To account for moving traffic  violation surcharges received to fund the County’s intergovernmental radio communications program.  STATE COURT ADMINISTRATION – To account for County monies used to fund the operation of the court system.  CONFISCATED PROPERTY – To account for the accumulation and expenditure of proceeds from the sale of property  confiscated by the Sheriff.   GAC  LAND  SALES,  ROADS  AND  CANALS – To account for principal and settlement fees received from a 1977  settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of  roads, facilities and drainage improvements in the Golden Gate Estates area.   UTILITY FEE – To account for fees to be used to effectively and efficiently regulate private water and wastewater  utilities operating within the unincorporated areas of Collier County and the City of Marco Island.   CONSERVATION COLLIER – To account for the acquisition and management of environmentally sensitive lands.  COURT INFORMATION TECHNOLOGY – To account for the accumulation of resources to enhance and increase  access to court information.   COURT SERVICES – To account for the accumulation of revenues associated with the function of the local court  system.   UNIVERSITY EXTENSION – To account for fund accumulation to meet the educational goals of the Collier County  UF/IFAS extension.   COURT FACILITIES FEE – To account for the accumulation of resources to improve court facilities.   AFFORDABLE HOUSING – To account for fees to be used to provide for affordable housing related projects.   OTHER COURT SPECIAL REVENUE FUNDS – To account for the statutory surcharge on recording documents to be  paid to the Clerk of the Circuit Court for modernization.  OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the Sheriff’s  Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate  welfare, crime prevention and training programs.  OTHER SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the following programs:  Miscellaneous Florida Statutes Fee Collections Euclid and Lakeland Assessment  Adoption Awareness  Legal Aid Society Teen Court  Law Enforcement Training  Animal Control  Domestic Violence Public Library  Juvenile Assessment Center  Law Library  Driver Education Freedom Memorial  Crime Prevention County Drug Abuse  Permanent Fund  RESOURCE RECOVERY PARK ENDOWMENT – To account for the permanent endowment established for the benefit  of the County’s land conservation program.  Debt Service Funds  RADIO ROAD EAST LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources, surety  reserve and payment of interest and principal on the Radio Road East limited general obligation bonds.  CONSERVATION COLLIER LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources  and payment of interest and principal on long‐term debt incurred for the acquisition of environmentally sensitive  lands.   COMMUNITY REDEVELOPMENT TAXABLE NOTE – To account for the accumulation of resources and payment of  interest  and  principal  on  taxable  long‐term  debt  incurred  for  the  acquisition  of  land  in the Bayshore/Gateway  Community Redevelopment Agency.   FOREST LAKES LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources and payment  of interest and principal on long‐term debt incurred on the Forest Lakes Limited General Obligation Bonds.   SPECIAL OBLIGATION REVENUE BONDS – To account for the accumulation of resources and payment of interest and  principal on long‐term debt incurred in the refinancing of various outstanding variable rate commercial paper loans.   OTHER DEBT SERVICE – To account for the accumulation of resources and payment of interest and principal on  variable rate commercial paper loans and special assessment debt incurred in the Naples Park area.  Capital Project Funds  COUNTY‐WIDE  CAPITAL  IMPROVEMENTS – To account for capital projects, designated by the Board of County  Commissioners, to be funded by a County‐wide one third mil levy.   PARKS IMPROVEMENTS – To account for the expenditure of funds raised specifically for improvements to parks.  Projects  include  land  acquisition,  design,  construction  and  equipping  of  certain  Community  Park  sites  in  the  unincorporated areas of the County. Primary funding is ad valorem taxes.   COUNTY‐WIDE LIBRARY IMPACT FEES – To account for the receipt and expenditure of library impact fees collected  from all qualifying new construction. These impact fees must be used for acquisition of County‐wide library facilities.   CORRECTIONAL FACILITIES IMPACT FEES – To account for the receipt and expenditure of correctional facilities impact  fees collected from all qualifying new construction. The impact fee must be used for the acquisition/construction of  correctional facilities.   EMERGENCY MEDICAL SERVICES IMPACT FEES – To account for the receipt and expenditure of emergency medical  service  impact  fees  collected  from  all  qualifying  new  construction.  The  impact  fees  must  be  used  for  acquisition/construction of emergency service facilities.   WATER  MANAGEMENT  –  To  account  for  the  receipt  and expenditure  of  funds  raised  specifically for water  management purposes. Primary funding is ad valorem taxes.   PARKS IMPACT DISTRICTS – To account for the receipt and expenditure of parks impact fees collected from all  qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities.   ROAD  IMPACT  DISTRICTS  –  To  account  for  the  receipt  and  expenditure  of  road  impact  fees  collected  from  all  qualifying new construction. The impact fees must be used for the acquisition/construction of roads.   ROAD CONSTRUCTION – To account for the receipt and expenditure of gas taxes.  Projects include, but are not  limited to, right‐of‐way acquisition, design and construction of various transportation improvements.   GOVERNMENT FACILITIES IMPACT FEES – To account for the receipt and expenditure of government facilities impact  fees collected from qualifying new construction.  The impact fees must be used for the acquisition and construction of  government facilities.   LAW ENFORCEMENT IMPACT FEES – To account for the receipt and expenditure of law enforcement impact fees  collected from all qualifying new construction.  The impact fees must be used for the acquisition and construction of  law enforcement related facilities.   ALL TERRAIN VEHICLE PARK – To account for the receipt and expenditure of funds for the creation of an All Terrain  Vehicle park.   OTHER CAPITAL PROJECTS – To account for major capital expenditure financed from resources other than proceeds  from the issuance of long‐term debt and the one third mil levy.   Water Management Grants and Road Unincorporated Community and Pollution Shared Districts Area MSTD Development Control Revenue ASSETS Cash and investments  2,502,060$        13,261,853$                 43,880,037$          2,553,318$            6,389,364$          Cash with fiscal agent  ‐                           ‐                                      ‐                               ‐                               ‐                             Receivables:  Interest  10,764                35,810                           92,360                    6,799                      9,352                    Trade, net  12,134                492,366                         10,204                    16                            31,052                  Notes  ‐                           ‐                                      ‐                               ‐                               ‐                             Impact Fee  ‐                           ‐                                      ‐                               ‐                               ‐                             Special assessments  ‐                           ‐                                      ‐                               ‐                               ‐                             Due from other funds   927,767              322,654                         ‐                               45,798                    402,897                Due from other governments   ‐                           381,715                         154,402                  6,723                      5,792,329            Deposits  ‐                           ‐                                      ‐                               ‐                               ‐                             Inventory for resale  ‐                           ‐                                      ‐                               ‐                               ‐                             Inventory  717,824              52,266                           ‐                               32,164                    ‐                             Advances to other funds   ‐                           337,701                         ‐                               ‐                               ‐                             Prepaid costs  ‐                           ‐                                      ‐                               ‐                               ‐                             Total assets  4,170,549$        14,884,365$                44,137,003$         2,644,818$            12,624,994$        LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable  343,229$            287,908$                     382,495$               110,991$               2,108,463$          Wages payable 508,070             499,208                        650,743                 118,335                 70,159                  Due to other funds ‐                          3,454                            ‐                              ‐                               2,844,090            Due to other governments  137                     501,585                        2,023,478             ‐                              90,259                  Unearned revenues ‐                          365,713                        ‐                              ‐                              ‐                             Refundable deposits ‐                          ‐                                     61,785                   ‐                              ‐                             Retainage payable ‐                          ‐                                     ‐                              ‐                               1,335,820            Advances from other funds  ‐                          ‐                                     ‐                              ‐                              ‐                             Total liabilities 851,436             1,657,868                    3,118,501             229,326                 6,448,791            Deferred inflows of resources:   Unavailable revenue ‐                          ‐                                     ‐                              ‐                              42,341                  Fund balances:   Nonspendable 717,824             52,266                          ‐                              32,164                   ‐                             Restricted 2,601,289         ‐                                      41,018,502           ‐                               6,133,862            Committed ‐                          13,174,231                  ‐                               2,383,328             ‐                             Assigned ‐                          ‐                                     ‐                              ‐                              ‐                             Unassigned ‐                          ‐                                     ‐                              ‐                              ‐                             Total fund balances 3,319,113         13,226,497                  41,018,502           2,415,492             6,133,862            Total liabilities, deferred inflows of   resources and fund balances 4,170,549$       14,884,365$               44,137,003$        2,644,818$           12,624,994$        See accompanying independent auditors' report   COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2017 Special Revenue Funds 90 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership ICRP Fund Administration 13,700,562$        804,361$     1,433,233$      2,874,909$           62,256,662$        4,741,010$       13,458$        172,353$                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  29,421                  3,146            3,447                6,463                     129,885                9,594                 326                913                            68                          30                  13                      ‐                              795,973                ‐                           58,518          54,896                       ‐                             ‐                     ‐                         ‐                              ‐                              485,524            ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  29,366                  24,740          9,814                ‐                              144,227                ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                               9,553,729            ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  13,759,417$        832,277$     1,446,507$      2,881,372$          72,880,476$       5,236,128$      72,302$        228,162$                 76,850$                ‐$                    49,596$            55,204$                814,451$             2,533$               10,972$        4,162$                       17,614                  ‐                     5,139                ‐                              99,950                  8,626                 ‐                     65,505                       3,981                    ‐                     ‐                         64,664                   ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                               1,558,013            ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              1,150                    ‐                          ‐                     ‐                                  30,486                  ‐                     ‐                         ‐                              99,023                  ‐                          ‐                     ‐                                  128,800                416,000       ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  257,731                416,000       54,735              119,868                2,572,587            11,159               10,972          69,667                       ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                          2,761,504             70,307,889          5,224,969         ‐                     ‐                                  13,501,686          416,277       1,391,772        ‐                              ‐                             ‐                           61,330          158,495                    ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  ‐                             ‐                     ‐                         ‐                              ‐                             ‐                          ‐                     ‐                                  13,501,686          416,277       1,391,772        2,761,504             70,307,889          5,224,969         61,330          158,495                    13,759,417$        832,277$     1,446,507$      2,881,372$          72,880,476$       5,236,128$      72,302$        228,162$                 Special Revenue Funds 91 GAC Land Court Confiscated Sales, Roads Utility Conservation Information Property and Canals Fee Collier Technology ASSETS Cash and investments 188,979$           865,729$          1,447,875$               32,788,605$          1,015,389$            Cash with fiscal agent ‐                           ‐                          ‐                                  ‐                               ‐                               Receivables:  Interest 426                     1,813                 2,801                         68,791                    2,573                      Trade, net ‐                           ‐                          50,395                       ‐                               38,142                    Notes ‐                           ‐                          ‐                                  ‐                               ‐                               Impact Fee ‐                           ‐                          ‐                                  ‐                               ‐                               Special assessments ‐                           ‐                          ‐                                  ‐                               ‐                               Due from other funds  ‐                           ‐                          ‐                                  ‐                               ‐                               Due from other governments  ‐                           ‐                          ‐                                  ‐                               ‐                               Deposits ‐                           ‐                          ‐                                  ‐                               ‐                               Inventory for resale ‐                            229,733            ‐                                  ‐                               ‐                               Inventory ‐                           ‐                          ‐                                  ‐                               ‐                               Advances to other funds  ‐                           ‐                          ‐                                  ‐                               ‐                               Prepaid costs ‐                           ‐                          ‐                                  ‐                               ‐                               Total assets 189,405$           1,097,275$      1,501,071$              32,857,396$         1,056,104$            LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable ‐$                        ‐$                        9,534$                       15,054$                  26,309$                  Wages payable ‐                           ‐                          8,946                         9,080                      2,545                      Due to other funds 11,352               ‐                          ‐                                  ‐                               ‐                               Due to other governments  ‐                           ‐                          ‐                                  ‐                               ‐                               Unearned revenues ‐                           ‐                          ‐                                  ‐                               ‐                               Refundable deposits ‐                           ‐                          ‐                                  ‐                               ‐                               Retainage payable ‐                           ‐                          ‐                                  ‐                               ‐                               Advances from other funds  ‐                           ‐                          ‐                                  ‐                               ‐                               Total liabilities 11,352               ‐                          18,480                       24,134                    28,854                    Deferred inflows of resources:   Unavailable revenue ‐                           ‐                          ‐                                  ‐                               ‐                               Fund balances:   Nonspendable ‐                           ‐                          ‐                                  ‐                               ‐                               Restricted 178,053             1,097,275         ‐                                   32,833,262            1,027,250              Committed ‐                           ‐                          1,482,591                 ‐                               ‐                               Assigned ‐                           ‐                          ‐                                  ‐                               ‐                               Unassigned ‐                           ‐                          ‐                                  ‐                               ‐                               Total fund balances 178,053             1,097,275         1,482,591                 32,833,262            1,027,250              Total liabilities, deferred inflows of   resources and fund balances 189,405$           1,097,275$      1,501,071$              32,857,396$         1,056,104$            See accompanying independent auditors' report   COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2017 Special Revenue Funds 92 Other Other Other Total Court Ava Maria Court Special Public Safety Special Special Court University Facilities Affordable Innovation Revenue Revenue Revenue Revenue Services Extension Fee Housing Zone Funds Funds Funds Funds 967,852$       123,820$     6,064,855$       157,399$      31,318$        4,328,248$       4,218,467$       1,020,672$      207,802,388$         ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         ‐                                 ‐                       258               12,889               329                65                  7,575                  3,715                 2,387                441,902                   ‐                       ‐                      48,954               ‐                     ‐                     ‐                            24,539               15,644              1,632,944                ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         485,524                   ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         ‐                                 ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         ‐                                 ‐                       ‐                     ‐                          ‐                     ‐                     ‐                            25,061               ‐                         1,932,324                190,301         ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                          16,079,199              ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         ‐                                 ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         229,733                   ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         802,254                   ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         337,701                   ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         ‐                                 1,158,153$   124,078$     6,126,698$       157,728$      31,383$       4,335,823$      4,271,782$      1,038,703$      229,743,969$        252,233$       ‐$                    220,976$          ‐$                   ‐$                   60,418$             24,150$             71,696$            4,927,224$              ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          2,684                2,066,604                ‐                       ‐                     ‐                          ‐                     ‐                     ‐                            87,129               ‐                         3,014,670                889,500         ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          190                    5,063,162                ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         365,713                   ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         62,935                      ‐                       ‐                      92,736               ‐                     ‐                     ‐                           ‐                          ‐                         1,558,065                ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         544,800                   1,141,733      ‐                      313,712            ‐                     ‐                     60,418               111,279             74,570              17,603,173              ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         42,341                      ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         802,254                   16,420           124,078       5,812,986         ‐                     ‐                      4,275,405          4,160,503         123,307            177,696,554           ‐                       ‐                     ‐                           157,728        31,383          ‐                           ‐                          ‐                          32,758,821              ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                           840,826            840,826                   ‐                       ‐                     ‐                          ‐                     ‐                     ‐                           ‐                          ‐                         ‐                                 16,420           124,078       5,812,986         157,728        31,383          4,275,405          4,160,503         964,133            212,098,455           1,158,153$   124,078$     6,126,698$       157,728$      31,383$       4,335,823$      4,271,782$      1,038,703$      229,743,969$        Special Revenue Funds 93 Permanent Fund Resource Radio Road East Gas Tax Community Forest Lakes Recovery Park Limited General Revenue Redevelopment Limited General Endowment Obligation Bonds Bonds Taxable Note Oblibation Bonds ASSETS Cash and investments  1,721,563$            171$                           793,884$                  39,218$              736,822$                 Cash with fiscal agent  ‐                               ‐                                   ‐                                  315,219              ‐                                Receivables:  Interest  3,581                      ‐                                   1,243                         271                      1,553                       Trade, net  ‐                               ‐                                   ‐                                  ‐                           ‐                                Notes  ‐                               ‐                                   ‐                                  ‐                           ‐                                Impact Fee  ‐                               ‐                                   ‐                                  ‐                           ‐                                Special assessments  ‐                               ‐                                   ‐                                  ‐                           ‐                                Due from other funds   ‐                               ‐                                   ‐                                  ‐                           3,950                       Due from other governments   ‐                               ‐                                   173,703                    ‐                           ‐                                Deposits  ‐                               ‐                                   ‐                                  ‐                           ‐                                Inventory for resale  ‐                               ‐                                   ‐                                  ‐                           ‐                                Inventory  ‐                               ‐                                   ‐                                  ‐                           ‐                                Advances to other funds   ‐                               ‐                                   ‐                                  ‐                           ‐                                Prepaid costs  ‐                               ‐                                   ‐                                  ‐                           ‐                                Total assets  1,725,144$            171$                          968,830$                 354,708$            742,325$                LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable  ‐$                             ‐$                                ‐$                              ‐$                        ‐$                              Wages payable ‐                              ‐                                  ‐                                 ‐                          ‐                                Due to other funds ‐                              ‐                                  ‐                                 ‐                          ‐                                Due to other governments  ‐                              ‐                                  ‐                                 ‐                          ‐                                Unearned revenues ‐                              ‐                                  ‐                                 ‐                          ‐                                Refundable deposits ‐                              ‐                                  ‐                                 ‐                          ‐                                Retainage payable ‐                              ‐                                  ‐                                 ‐                          ‐                                Advances from other funds  ‐                              ‐                                  ‐                                 ‐                          ‐                                Total liabilities ‐                              ‐                                  ‐                                 ‐                          ‐                                Deferred inflows of resources:   Unavailable revenue ‐                              ‐                                  ‐                                 ‐                          ‐                                Fund balances:   Nonspendable 1,582,800             ‐                                  ‐                                 ‐                          ‐                                Restricted 142,344                 171                            968,830                   354,708             742,325                   Committed ‐                              ‐                                  ‐                                 ‐                          ‐                                Assigned ‐                              ‐                                  ‐                                 ‐                          ‐                                Unassigned ‐                              ‐                                  ‐                                 ‐                          ‐                                Total fund balances 1,725,144             171                            968,830                   354,708             742,325                   Total liabilities, deferred inflows of   resources and fund balances 1,725,144$           171$                         968,830$                354,708$           742,325$                See accompanying independent auditors' report   COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2017 Debt Service Fund 94 Total Emergency Special Other Debt County‐Wide Count‐Wide Correctional Medical Obligation Debt Service Capital Parks Library Facilities Services Revenue Bonds Service Funds Improvements Improvements Impact Fees Impact Fees Impact Fees 73,608$                 25,567$     1,669,270$        12,835,727$           4,978,410$         979,258$          167,475$           473,583$           11,276,866          ‐                   11,592,085        ‐                                ‐                             ‐                          ‐                           ‐                           6,002                    25               9,094                   29,402                     10,092                 2,025                 3,486                  947                      ‐                             ‐                  ‐                            ‐                                5,510                    ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                              212,192             81,940                59,834                ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  3,950                   ‐                                360,192               ‐                           1,428,000          ‐                           ‐                             ‐                   173,703              12,203                     ‐                             9,696                 19,593                4,242                  ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           11,356,476$        25,592$     13,448,102$     12,877,332$          5,354,204$        1,203,171$      1,700,494$        538,606$          ‐$                           ‐$                ‐$                         1,552,674$             360,413$             13,930$             55,511$              ‐$                         ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           8,350,000            ‐                   8,350,000           33,247                     ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            896,783                   138,079               ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           8,350,000            ‐                   8,350,000           2,482,704               498,492               13,930               55,511                ‐                           ‐                             ‐                  ‐                            ‐                                ‐                              212,192             81,940                59,834                ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           3,006,476            25,592       5,098,102           ‐                                ‐                              977,049             1,563,043          478,772              ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           ‐                             ‐                  ‐                             10,394,628             4,855,712            ‐                          ‐                           ‐                           ‐                             ‐                  ‐                            ‐                                ‐                             ‐                          ‐                           ‐                           3,006,476            25,592       5,098,102           10,394,628             4,855,712            977,049             1,563,043          478,772              11,356,476$        25,592$     13,448,102$     12,877,332$          5,354,204$        1,203,171$      1,700,494$        538,606$          Debt Service Fund Capital Project Funds 95 Parks Road Government Water Impact Impact Road Facilities Management Districts Districts Construction Impact Fees ASSETS Cash and investments 13,241,837$         23,706,859$       55,511,408$      47,750,777$          660,556$                 Cash with fiscal agent ‐                              ‐                            ‐                            ‐                               ‐                                 Receivables:  Interest 30,064                   56,474                 116,315              104,540                  6,888                        Trade, net ‐                              ‐                            ‐                            72,457                    ‐                                 Notes ‐                              ‐                            ‐                            ‐                               ‐                                 Impact Fee ‐                               1,328,773           3,423,647           ‐                               221,671                    Special assessments ‐                              ‐                            ‐                            ‐                               ‐                                 Due from other funds  252,824                 2,637,000           1,129,030           1,134,717              2,527,000                Due from other governments  45,648                   73,798                 533,579              1,550,485              31,146                      Deposits ‐                              1,250                   ‐                            ‐                               ‐                                 Inventory for resale ‐                              ‐                            ‐                            ‐                               ‐                                 Inventory ‐                              ‐                            ‐                            ‐                               ‐                                 Advances to other funds  ‐                              ‐                            ‐                            ‐                               ‐                                 Prepaid costs ‐                              ‐                            ‐                            ‐                               ‐                                 Total assets 13,570,373$         27,804,154$      60,713,979$     50,612,976$         3,447,261$              LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable 327,667$              502,995$             1,945,148$         2,469,600$            ‐$                               Wages payable 4,609                     ‐                            ‐                            4,041                      ‐                                 Due to other funds 22,746                   ‐                             217,036              13,282                    ‐                                 Due to other governments  ‐                              ‐                            ‐                            ‐                               ‐                                 Unearned revenues ‐                              ‐                            ‐                            ‐                               ‐                                 Refundable deposits ‐                              ‐                            ‐                            ‐                               ‐                                 Retainage payable 121,927                 265,942               1,325,696           711,069                  ‐                                 Advances from other funds  ‐                              ‐                            ‐                            ‐                               832,800                    Total liabilities 476,949                 768,937               3,487,880           3,197,992              832,800                    Deferred inflows of resources:   Unavailable revenue ‐                               1,328,773           3,423,647           ‐                               221,671                    Fund balances:   Nonspendable ‐                              ‐                            ‐                            ‐                               ‐                                 Restricted ‐                               25,706,444         53,802,452         47,414,984            2,392,790                Committed ‐                              ‐                            ‐                            ‐                               ‐                                 Assigned 13,093,424           ‐                            ‐                            ‐                               ‐                                 Unassigned ‐                              ‐                            ‐                            ‐                               ‐                                 Total fund balances 13,093,424           25,706,444         53,802,452         47,414,984            2,392,790                Total liabilities, deferred inflows of   resources and fund balances 13,570,373$         27,804,154$      60,713,979$     50,612,976$         3,447,261$              See accompanying independent auditors' report   COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2017 Capital Project Funds 96 Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Capital Project Governmental Impact Fees Park Projects Funds Funds 1,130,060$             3,008,777$         1,794,739$          166,239,466$      377,432,687$          ‐                                ‐                             ‐                             ‐                               11,592,085               3,356                       6,277                    3,871                    373,737                 828,314                    ‐                                ‐                             ‐                             77,967                   1,710,911                 ‐                                ‐                             ‐                             ‐                              485,524                    87,852                     ‐                             ‐                              5,415,909             5,415,909                 ‐                                ‐                             1,405                    1,405                     1,405                         549,000                   ‐                             838                        10,018,601           11,954,875               ‐                                ‐                             ‐                              2,280,390             18,533,292               ‐                                ‐                             ‐                             1,250                     1,250                         ‐                                ‐                             ‐                             ‐                              229,733                    ‐                                ‐                             ‐                             ‐                              802,254                    ‐                                ‐                             ‐                             ‐                              337,701                    ‐                                ‐                             ‐                             ‐                              ‐                                  1,770,268$             3,015,054$         1,800,853$          184,408,725$     429,325,940$         ‐$                              2,100$                 66,612$                7,296,650$           12,223,874$            ‐                                ‐                             31,112                  39,762                   2,106,366                 ‐                                ‐                             ‐                             286,311                 11,650,981               ‐                                ‐                             ‐                             ‐                              5,063,162                 ‐                                ‐                             ‐                             ‐                              365,713                    ‐                                ‐                             ‐                             ‐                              62,935                       ‐                                ‐                             ‐                              3,459,496             5,017,561                 ‐                                ‐                             ‐                             832,800                 1,377,600                 ‐                                2,100                    97,724                  11,915,019           37,868,192               87,852                     ‐                             ‐                              5,415,909             5,458,250                 ‐                                ‐                             ‐                             ‐                              2,385,054                 1,682,416               ‐                             78,696                  134,096,646         317,033,646            ‐                                ‐                             ‐                             ‐                               32,758,821               ‐                                 3,012,954            1,624,433            32,981,151           33,821,977               ‐                                ‐                             ‐                             ‐                              ‐                                  1,682,416               3,012,954            1,703,129            167,077,797         385,999,498            1,770,268$             3,015,054$         1,800,853$          184,408,725$     429,325,940$         Capital Project Funds 97 Water Management Grants and Road Unincorporated Community and Pollution Shared Districts Area MSTD Development Control Revenue Revenues: Taxes  ‐$                           42,247,153$           ‐$                             2,179,243$            ‐$                           Licenses, permits and impact fees  ‐                              27,662                     23,186,803            285                          ‐                              Intergovernmental  1,890,023             1,510                        ‐                               ‐                               16,455,376          Charges for services  379,638                2,963,796                3,493,830              337,883                  ‐                              Fines and forfeitures  ‐                              252,059                   ‐                               ‐                               ‐                              Interest income  24,803                  127,422                   251,415                  23,892                    27,704                  Special assessments  ‐                              ‐                                 ‐                               3,805,592              ‐                              Miscellaneous   37,780                  246,666                   50,878                    ‐                               385,604                Total revenues  2,332,244             45,866,268             26,982,926            6,346,895              16,868,684          Expenditures: Current: General government  ‐                              6,220,818                7,326,464              ‐                               559,529                Public safety   ‐                              4,029,532                15,932,092            ‐                               1,975,079             Physical environment  ‐                              598,070                   1,485,864              3,082,816              77,911                  Transportation  21,164,244          7,117,280                333,022                  2,351,843              5,038                     Economic environment  ‐                              51,051                     ‐                               ‐                               3,504,360             Human services  ‐                              ‐                                 ‐                               ‐                               3,420,923             Culture and recreation  ‐                              12,146,867             ‐                               ‐                              103,121                Debt service Principal ‐                             ‐                                ‐                              ‐                              ‐                              Interest ‐                             ‐                                ‐                              ‐                              ‐                              Redemption of debt ‐                             ‐                                ‐                              ‐                              ‐                              Fiscal charges ‐                             ‐                                ‐                              ‐                              ‐                              Capital outlay 483,152               868,354                  396,369                 232,721                 13,480,333          Total expenditures  21,647,396         31,031,972            25,473,811           5,667,380             23,126,294          Excess (deficit) of revenues     over (under) expenditures  (19,315,152)        14,834,296            1,509,115             679,515                 (6,257,610)           Other financing sources (uses): Notes issued  ‐                             ‐                                ‐                              ‐                              ‐                              Sale of capital assets  ‐                             6,800                       25                           7,470                     5,600                     Insurance proceeds 51,738                 22,638                    244                         22,943                   ‐                              Transfers in 21,160,190         1,469,792               877,800                 45,798                   8,070,703             Transfers out (2,550,272)          (11,747,791)           (920,469)               (267,968)               (509)                       Total other financing sources (uses)  18,661,656         (10,248,561)           (42,400)                  (191,757)               8,075,794             Net change in fund balances (653,496)              4,585,735               1,466,715             487,758                 1,818,184             Fund balances at beginning of year 3,972,609            8,640,762               39,551,787           1,927,734             4,315,678             Fund balances at end of year 3,319,113$         13,226,497$         41,018,502$        2,415,492$          6,133,862$          See accompanying independent auditors' report   Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 98 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership ICRP Fund Administration 3,600,932$         2,996,574$       1,343,240$       ‐$                          21,961,390$         ‐$                         ‐$                     ‐$                                 ‐                             ‐                          ‐                          ‐                             ‐                              ‐                           ‐                       ‐                                   ‐                             ‐                          ‐                          1,839,090            1,633,002             2,255,124          ‐                       ‐                                   216,414               10,352               ‐                          ‐                             10,346                   ‐                           363,625          184,375                     ‐                             ‐                          ‐                          ‐                             ‐                              ‐                           ‐                       813,986                     85,059                 9,841                 10,669               18,101                 351,165                 23,716                716                  2,664                          5,525                    ‐                          ‐                          ‐                             ‐                              ‐                           ‐                       ‐                                   945                       2,000                 ‐                          ‐                             106,933                 497,796             141,823          9,756                          3,908,875            3,018,767         1,353,909         1,857,191            24,062,836           2,776,636          506,164          1,010,781                  ‐                             ‐                          ‐                          ‐                             ‐                              ‐                           ‐                       1,035,698                  ‐                             2,986,795         ‐                          2,080,473            ‐                             ‐                          1,202,661     1,470,842                  986,005              ‐                         ‐                         ‐                             2,193,059            ‐                          ‐                      ‐                                   1,000,271           ‐                          1,126,811        ‐                            ‐                             ‐                          ‐                      ‐                                   ‐                            ‐                         ‐                         ‐                            ‐                              1,715,446         ‐                      ‐                                   ‐                            ‐                         ‐                         ‐                            ‐                             ‐                          ‐                      ‐                                   979,691              ‐                         ‐                         ‐                             11,765,413          ‐                          ‐                      ‐                                   ‐                             22,872              ‐                         ‐                            ‐                             ‐                          ‐                      ‐                                   ‐                            6,830                ‐                         ‐                            ‐                             ‐                          ‐                      ‐                                   ‐                            ‐                         ‐                         ‐                            ‐                             ‐                          ‐                      ‐                                   ‐                            ‐                         ‐                         ‐                            ‐                             ‐                          ‐                      ‐                                   138,454              ‐                          38,267              33,487                4,010,579            ‐                          ‐                      28,250                        3,104,421           3,016,497        1,165,078        2,113,960           17,969,051          1,715,446         1,202,661     2,534,790                  804,454              2,270                188,831            (256,769)             6,093,785            1,061,190         (696,497)       (1,524,009)                 ‐                            ‐                         ‐                         ‐                            ‐                             ‐                          ‐                      ‐                                   ‐                            ‐                         ‐                         ‐                            ‐                             ‐                          ‐                      ‐                                   11,862                ‐                         ‐                         ‐                            3,793                    ‐                          ‐                      ‐                                   576,266              592,840            9,814                ‐                            144,227                ‐                           663,900         1,446,600                  (578,286)             (89,917)            (103,987)          (8,160)                 (955,096)              (31,571)             ‐                      (71,000)                      9,842                   502,923            (94,173)            (8,160)                 (807,076)              (31,571)             663,900         1,375,600                  814,296              505,193            94,658              (264,929)             5,286,709            1,029,619         (32,597)          (148,409)                    12,687,390        (88,916)            1,297,114        3,026,433           65,021,180          4,195,350         93,927           306,904                     13,501,686$      416,277$         1,391,772$      2,761,504$       70,307,889$       5,224,969$      61,330$         158,495$                  Special Revenue Funds 99 GAC Land Court Confiscated Sales, Roads Utility Conservation Information Property and Canals Fee Collier Technology Revenues: Taxes ‐$                          ‐$                          236,909$                  1,442$                 ‐$                             Licenses, permits and impact fees ‐                             ‐                             ‐                                  ‐                             ‐                               Intergovernmental ‐                             ‐                             ‐                                  3,019                    ‐                               Charges for services ‐                             ‐                             100,000                    40                         852,180                  Fines and forfeitures 48,945                 ‐                             ‐                                  ‐                             ‐                               Interest income 1,284                    5,259                    7,815                         193,387               6,857                      Special assessments ‐                             ‐                             ‐                                  ‐                             ‐                               Miscellaneous  ‐                             ‐                             ‐                                  186,913               ‐                               Total revenues 50,229                 5,259                    344,724                    384,801               859,037                  Expenditures: Current: General government ‐                             ‐                             ‐                                  ‐                             815,157                  Public safety  47,500                 ‐                             ‐                                  ‐                             32,576                    Physical environment ‐                             ‐                             280,683                    658,679               ‐                               Transportation ‐                             ‐                             ‐                                  ‐                             ‐                               Economic environment ‐                             ‐                             ‐                                  ‐                             ‐                               Human services ‐                             ‐                             ‐                                  ‐                             3,068                      Culture and recreation ‐                             68,819                 ‐                                  ‐                             ‐                               Debt service Principal ‐                             ‐                             ‐                                  ‐                             ‐                               Interest ‐                             ‐                             ‐                                  ‐                             ‐                               Redemption of debt ‐                             ‐                             ‐                                  ‐                             ‐                               Fiscal charges ‐                             ‐                             ‐                                  ‐                             ‐                               Capital outlay ‐                             ‐                             ‐                                  6,058                    45,508                    Total expenditures  47,500                 68,819                 280,683                    664,737               896,309                  Excess (deficit) of revenues     over (under) expenditures  2,729                    (63,560)                64,041                       (279,936)              (37,272)                   Other financing sources (uses): Notes issued  ‐                             ‐                             ‐                                  ‐                             ‐                               Sale of capital assets  ‐                             ‐                             ‐                                  ‐                             400                          Insurance proceeds ‐                             ‐                             ‐                                  54                         ‐                               Transfers in ‐                             ‐                             ‐                                  647                       ‐                               Transfers out (41,718)                ‐                             ‐                                  (4,100)                  ‐                               Total other financing sources (uses) (41,718)                ‐                             ‐                                  (3,399)                  400                          Net change in fund balances (38,989)                (63,560)                64,041                       (283,335)              (36,872)                   Fund balances at beginning of year 217,042               1,160,835            1,418,550                 33,116,597         1,064,122              Fund balances at end of year 178,053$             1,097,275$        1,482,591$              32,833,262$      1,027,250$            See accompanying independent auditors' report   Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 100 Other Other Other Total Court Ava Maria Court Special Public Safety Special Special Court University Facilities Affordable Innovation Revenue Revenue Revenue Revenue Services Extension Fee Housing Zone Funds Funds Funds Funds ‐$                  ‐$                  ‐$                    ‐$                  ‐$                   ‐$                       ‐$                       ‐$                   74,566,883$       ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                          26,266         23,241,016          629,086       ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                     24,706,230          5,463,687   17,064         ‐                       ‐                     ‐                      1,315,132         769,956            237,606       16,715,924          ‐                    ‐                     737,223         ‐                     ‐                     ‐                           63,199              47,885         1,963,297            23,116         729               37,703           920               183                21,438              22,893              7,064           1,285,815            ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                     3,811,117            ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                          174,803       1,841,897            6,115,889   17,793         774,926         920               183                 1,336,570         856,048            493,624       148,132,179       6,099,469   ‐                     305,933         ‐                     ‐                      1,729,227         ‐                         185,563       24,277,858          ‐                    ‐                    ‐                       ‐                     ‐                     ‐                           1,123,033        118,318       30,998,901          ‐                     18,630         ‐                       ‐                     ‐                     ‐                          ‐                         ‐                     9,381,717            ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                     33,098,509          ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                     5,270,857            ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                          237,911       3,661,902            ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                          154,574       25,218,485          ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                    22,872                  ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                    6,830                    ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                    ‐                             ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                    ‐                             ‐                    ‐                     1,148,387      ‐                     ‐                      157,806            ‐                          108,537       21,176,262          6,099,469   18,630         1,454,320      ‐                     ‐                      1,887,033         1,123,033        804,903       153,114,193       16,420         (837)              (679,394)        920               183                (550,463)           (266,985)          (311,279)     (4,982,014)           ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                    ‐                             ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                          2,405           22,700                  ‐                    ‐                    ‐                       ‐                     ‐                     ‐                          ‐                         ‐                     113,272               ‐                    ‐                    ‐                       ‐                      31,200          ‐                           250,000            180,000       35,519,777          ‐                    ‐                    ‐                       ‐                     ‐                     ‐                           (238,291)          ‐                     (17,609,135)        ‐                    ‐                    ‐                       ‐                      31,200          ‐                           11,709              182,405       18,046,614          16,420         (837)              (679,394)        920               31,383          (550,463)           (255,276)          (128,874)     13,064,600          ‐                     124,915       6,492,380      156,808       ‐                      4,825,868         4,415,779        1,093,007   199,033,855       16,420$       124,078$    5,812,986$   157,728$     31,383$       4,275,405$     4,160,503$     964,133$    212,098,455$     Special Revenue Funds 101 Permanent Fund Resource Radio Road East Gas Tax Community Forest Lakes Recovery Park Limited General Revenue Redevelopment Limited General Endowment Obligation Bonds Bonds Taxable Note Oblibation Bonds Revenues: Taxes  ‐$                              31$                           ‐$                                 ‐$                             457,555$                Licenses, permits and impact fees  ‐                                ‐                                ‐                                   ‐                               ‐                                Intergovernmental  ‐                                ‐                                1,953,725                  ‐                               ‐                                Charges for services  ‐                                ‐                                ‐                                   ‐                               ‐                                Fines and forfeitures  ‐                                ‐                                ‐                                   ‐                               ‐                                Interest income  10,014                     36                             3,126                          2,358                      4,698                       Special assessments  ‐                                ‐                                ‐                                   ‐                               ‐                                Miscellaneous   ‐                                ‐                                ‐                                   ‐                               ‐                                Total revenues  10,014                     67                             1,956,851                  2,358                      462,253                  Expenditures: Current: General government  ‐                                ‐                                ‐                                   ‐                               ‐                                Public safety   ‐                                ‐                                ‐                                   ‐                               ‐                                Physical environment  4,433                       ‐                                ‐                                   ‐                               ‐                                Transportation  ‐                                ‐                                ‐                                   ‐                               ‐                                Economic environment  ‐                                ‐                                ‐                                   ‐                               ‐                                Human services  ‐                                ‐                                ‐                                   ‐                               ‐                                Culture and recreation  ‐                                ‐                                ‐                                   ‐                              ‐                                Debt service Principal ‐                               4,452                      10,195,000               473,132                 440,000                  Interest ‐                               5,233                      2,939,200                 210,955                 113,475                  Redemption of debt ‐                               334,630                  ‐                                   5,253,793             ‐                                Fiscal charges ‐                               3,071                      1,660                         35,859                   2,889                       Capital outlay ‐                               ‐                               ‐                                  ‐                              ‐                                Total expenditures  4,433                      347,386                  13,135,860               5,973,739             556,364                  Excess (deficit) of revenues     over (under) expenditures  5,581                      (347,319)                 (11,179,009)             (5,971,381)            (94,111)                   Other financing sources (uses): Notes issued  ‐                               ‐                               ‐                                   5,293,293             ‐                                Sale of capital assets  ‐                               ‐                               ‐                                  ‐                              ‐                                Insurance proceeds ‐                               ‐                               ‐                                  ‐                              ‐                                Transfers in ‐                               237,254                  12,150,000               85,500                   3,950                       Transfers out ‐                               (593)                         ‐                                  ‐                              (14,153)                   Total other financing sources (uses) ‐                               236,661                  12,150,000               5,378,793             (10,203)                   Net change in fund balances 5,581                      (110,658)                 970,991                    (592,588)               (104,314)                 Fund balances at beginning of year 1,719,563              110,829                  (2,161)                        947,296                 846,639                  Fund balances at end of year 1,725,144$            171$                       968,830$                 354,708$              742,325$                See accompanying independent auditors' report   Debt Servive Fund COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 102 Total Emergency Special Other Debt County‐Wide Count‐Wide Correctional Medical Obligation Debt Service Capital Parks Library Facilities Services Revenue Bonds Service Funds Improvements Improvements Impact Fees Impact Fees Impact Fees ‐$                               243$                  457,829$          ‐$                          ‐$                         ‐$                      ‐$                         ‐$                       ‐                                 ‐                          ‐                          ‐                              594,852              917,541           1,518,046          370,960            ‐                                 ‐                           1,953,725         ‐                             21,014                ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          ‐                             ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          ‐                             ‐                           ‐                         ‐                           ‐                         15,309                      64                       25,591               77,201                 20,824                6,779                9,454                  2,953                ‐                                 ‐                          ‐                          ‐                             ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          ‐                              2,000,308          ‐                         ‐                           ‐                         15,309                      307                      2,437,145         77,201                 2,636,998          924,320           1,527,500          373,913            ‐                                 127                     127                     3,734,030            ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          525,338               ‐                           ‐                         355,236              15,628              ‐                                 ‐                          ‐                          3,159                    ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          ‐                             ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          ‐                             ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          19                         ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          ‐                              1,827,710          25,442              ‐                           ‐                         9,705,000                ‐                           20,817,584       ‐                             ‐                           ‐                         ‐                           ‐                         8,590,531                ‐                           11,859,394       ‐                             ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                           5,588,423         ‐                             ‐                           ‐                         ‐                           ‐                         4,180                        ‐                          47,659               ‐                             ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                           5,435,137            1,055,306          181,061           ‐                           ‐                         18,299,711              127                      38,313,187       9,697,683            2,883,016          206,503           355,236              15,628              (18,284,402)             180                      (35,876,042)      (9,620,482)          (246,018)            717,817           1,172,264          358,285            ‐                                 ‐                           5,293,293         ‐                             ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          1,533                    ‐                           ‐                         ‐                           ‐                         ‐                                 ‐                          ‐                          ‐                             1,500                  ‐                         ‐                           ‐                         18,122,436              ‐                           30,599,140       13,724,873         3,350,892          321,000           ‐                           ‐                         ‐                                  (66,847)              (81,593)              (2,963,790)          (332,265)            (1,160,300)      (1,865,500)         (448,000)          18,122,436              (66,847)              35,810,840       10,762,616         3,020,127          (839,300)          (1,865,500)         (448,000)          (161,966)                   (66,667)              (65,202)              1,142,134            2,774,109          (121,483)          (693,236)            (89,715)             3,168,442                92,259               5,163,304         9,252,494            2,081,603          1,098,532        2,256,279          568,487            3,006,476$              25,592$             5,098,102$       10,394,628$      4,855,712$       977,049$        1,563,043$        478,772$        Debt Servive Fund Capital Project Funds 103 Parks Road Government Water Impact Impact Road Facilities Management Districts Districts Construction Impact Fees Revenues: Taxes ‐$                           ‐$                           ‐$                                   15,408,449$      ‐$                           Licenses, permits and impact fees ‐                              9,053,250            19,273,674                 ‐                             2,554,612             Intergovernmental ‐                             ‐                             ‐                                      4,676,381           ‐                              Charges for services ‐                             ‐                             ‐                                      167,043              ‐                              Fines and forfeitures ‐                             ‐                             ‐                                     ‐                            ‐                              Interest income 80,954                  150,249                344,490                       305,499              20,958                  Special assessments 412,330               ‐                             ‐                                     ‐                            ‐                              Miscellaneous  90,143                  ‐                             78,792                         2,228,667           ‐                              Total revenues 583,427               9,203,499            19,696,956                 22,786,039         2,575,570             Expenditures: Current: General government ‐                             ‐                             ‐                                     ‐                            18,297                  Public safety  ‐                             ‐                             ‐                                     ‐                            ‐                              Physical environment 1,178,873            ‐                             ‐                                     ‐                            ‐                              Transportation ‐                             ‐                             221,659                       7,363,464           ‐                              Economic environment ‐                             ‐                             ‐                                     ‐                            ‐                              Human services ‐                             ‐                             ‐                                     ‐                            ‐                              Culture and recreation ‐                             77,133                  ‐                                     ‐                            ‐                              Debt service Principal ‐                             ‐                             ‐                                     ‐                            ‐                              Interest ‐                             ‐                             ‐                                     ‐                            7,249                     Redemption of debt ‐                             ‐                             ‐                                     ‐                            ‐                              Fiscal charges ‐                             ‐                             ‐                                     ‐                            ‐                              Capital outlay 3,000,940            3,606,026            18,819,511                 15,329,037         ‐                              Total expenditures  4,179,813            3,683,159            19,041,170                 22,692,501         25,546                  Excess (deficit) of revenues     over (under) expenditures  (3,596,386)           5,520,340            655,786                       93,538                 2,550,024             Other financing sources (uses): Notes issued  ‐                             ‐                             ‐                                     ‐                            ‐                              Sale of capital assets  ‐                             ‐                             ‐                                     ‐                            ‐                              Insurance proceeds ‐                             ‐                             ‐                                     ‐                            ‐                              Transfers in 6,699,708            ‐                             ‐                                      11,760,000         2,693,900             Transfers out (1,998,205)           (2,939,300)           (3,716,314)                  (12,690,603)       (5,169,500)           Total other financing sources (uses)  4,701,503            (2,939,300)           (3,716,314)                  (930,603)             (2,475,600)           Net change in fund balances 1,105,117            2,581,040            (3,060,528)                  (837,065)             74,424                  Fund balances at beginning of year 11,988,307          23,125,404          56,862,980                 48,252,049         2,318,366             Fund balances at end of year 13,093,424$       25,706,444$       53,802,452$              47,414,984$     2,392,790$          See accompanying independent auditors' report   Capital Project Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 104 Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Capital Project Governmental Impact Fees Park Projects Funds Funds ‐$                           ‐$                                  ‐$                           15,408,449$          90,433,161$            1,403,537            ‐                                     6,985                    35,693,457            58,934,473               ‐                             ‐                                     ‐                              4,697,395               31,357,350               ‐                             ‐                                     ‐                             167,043                  16,882,967               ‐                             ‐                                     ‐                             ‐                                1,963,297                 13,889                  17,596                         10,593                 1,061,439               2,382,859                 ‐                             ‐                                      126,876               539,206                  4,350,323                 ‐                             ‐                                     46                         4,397,956               6,239,853                 1,417,426            17,596                         144,500               61,964,945            212,544,283            ‐                             ‐                                     53,669                 3,805,996               28,083,981               104,620                ‐                                     6,990                    1,007,812               32,006,713               ‐                             ‐                                      1,013,083            2,195,115               11,581,265               ‐                             ‐                                     ‐                              7,585,123               40,683,632               ‐                             ‐                                     ‐                             ‐                                5,270,857                 ‐                             ‐                                     ‐                             19                            3,661,921                 ‐                             20,330                         108,793               2,059,408               27,277,893               ‐                             ‐                                     ‐                             ‐                                 20,840,456               ‐                             ‐                                     ‐                             7,249                       11,873,473               ‐                             ‐                                     ‐                             ‐                                5,588,423                 ‐                             ‐                                     ‐                             ‐                                47,659                       1,272,844            ‐                                      191,214               48,891,076            70,067,338               1,377,464            20,330                         1,373,749            65,551,798            256,983,611            39,962                  (2,734)                          (1,229,249)          (3,586,853)             (44,439,328)             ‐                             ‐                                     ‐                             ‐                                5,293,293                 ‐                             ‐                                     ‐                             1,533                       24,233                       ‐                             ‐                                     ‐                             1,500                       114,772                    92,000                  ‐                                      1,533,407            40,175,780            106,294,697            (1,873,000)           ‐                                     (4,192)                  (35,160,969)           (52,851,697)             (1,781,000)           ‐                                      1,529,215            5,017,844               58,875,298               (1,741,038)           (2,734)                          299,966               1,430,991               14,435,970               3,423,454            3,015,688                    1,403,163            165,646,806          371,563,528            1,682,416$          3,012,954$                 1,703,129$         167,077,797$       385,999,498$         Capital Project Funds 105 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         43,648,100$       42,247,153$       (1,400,947)$      Licenses, permits and impact fees ‐                            ‐                            ‐                           37,000                 27,662                 (9,338)                Intergovernmental 1,745,000            1,890,023           145,023              2,000,000           1,510                   (1,998,490)        Charges for services 294,600               379,638               85,038                3,886,300           2,963,796           (922,504)            Fines and forfeitures ‐                            ‐                            ‐                           339,000               252,059               (86,941)              Interest income 7,500                   42,648                 35,148                120,000               218,274               98,274               Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous 31,000                 37,780                 6,780                  198,000               246,666               48,666               Total revenues 2,078,100            2,350,089           271,989              50,228,400         45,957,120         (4,271,280)        Expenditures: Current: General government ‐                            ‐                            ‐                           7,094,403           6,217,960           876,443             Public safety ‐                            ‐                            ‐                           4,621,814           4,029,532           592,282             Physical environment ‐                            ‐                            ‐                           798,800               598,070               200,730             Transportation 22,375,771         21,164,244         1,211,527           11,150,483         7,169,546           3,980,937          Economic environment ‐                            ‐                            ‐                           110,384               51,051                 59,333               Human services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Culture and recreation ‐                            ‐                            ‐                           13,183,617         12,146,867         1,036,750          Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 627,714               483,152               144,562              4,003,273           868,354               3,134,919          Total expenditures 23,003,485         21,647,396         1,356,089           40,962,774         31,081,380         9,881,394          Excess (deficit) of revenues    over (under) expenditures  (20,925,385)        (19,297,307)        1,628,078           9,265,626           14,875,740         5,610,114          Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            6,800                   6,800                 Insurance proceeds 150,000               51,738                 (98,262)               30,000                 22,638                 (7,362)                Transfers in 21,172,100         21,160,190         (11,910)               5,389,400           5,482,992           93,592               Transfers out (2,551,900)          (2,550,272)          1,628                  (16,085,162)        (15,650,991)        434,171             Total other financing sources (uses)  18,770,200         18,661,656         (108,544)             (10,665,762)        (10,138,561)        527,201             Net change in fund balances (2,155,185)          (635,651)             1,519,534           (1,400,136)          4,737,179           6,137,315          Fund balances at beginning of year 2,182,585            2,182,585           ‐                           6,266,650           6,266,650           ‐                          Fund balances at end of year 27,400$               1,546,934$        1,519,534$       4,866,514$        11,003,829$       6,137,315$      Reconciliation: Net change in fund balance, budgetary basis (635,651)$           4,737,179$          Change in fair value of investments (17,845)                (90,852)                 Ad valorem refunds not budgeted ‐                            (2,858)                   Change in inventory ‐                            52,266                  Advances budgeted as transfers ‐                            (110,000)              Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis (653,496)$          4,585,735$          See accompanying independent auditors' report   Road Disctricts COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 (Budgetary Basis) Unincorporated Area MSTD (Budgetary Basis) 106 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         2,260,100$      2,179,243$        (80,857)$            22,829,100         23,186,803         357,703              600                    285                      (315)                    ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           3,144,700           3,493,830           349,130              426,700            337,883              (88,817)               ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           196,200               447,925               251,725              13,800              41,113                27,313                ‐                            ‐                            ‐                           3,950,200         3,805,592           (144,608)            50,100                 50,878                 778                      ‐                         ‐                           ‐                           26,220,100         27,179,436         959,336              6,651,400         6,364,116           (287,284)            9,049,695           7,326,464           1,723,231           ‐                         ‐                           ‐                           22,000,161         15,932,092         6,068,069           ‐                         ‐                           ‐                           1,882,382           1,485,864           396,518              3,465,769         3,082,460           383,309              383,100               333,022               50,078                2,548,200         2,351,843           196,357              ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           1,646,445           396,369               1,250,076           293,826            232,721              61,105                34,961,783         25,473,811         9,487,972           6,307,795         5,667,024           640,771              (8,741,683)          1,705,625           10,447,308        343,605            697,092              353,487              ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            25                         25                        ‐                         7,470                  7,470                  ‐                            244                      244                      ‐                         22,943                22,943                977,800               977,800               ‐                           ‐                         45,798                45,798                (1,066,800)          (1,020,469)          46,331                (299,200)           (267,968)             31,232                (89,000)                (42,400)                46,600                (299,200)           (191,757)             107,443              (8,830,683)          1,663,225           10,493,908        44,405              505,335              460,930              35,409,183         35,409,183         ‐                           1,491,695         1,491,695           ‐                           26,578,500$       37,072,408$      10,493,908$     1,536,100$     1,997,030$        460,930$           1,663,225$         505,335$             (196,510)             (17,221)                ‐                            (356)                     ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            1,466,715$        487,758$             Water Management and Pollution Control (Budgetary Basis)(Budgetary Basis) Community Development 107 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         3,727,900$         3,600,932$         (126,968)$         Licenses, permits and impact fees ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Intergovernmental 36,075,154         15,254,242         (20,820,912)       ‐                            ‐                            ‐                          Charges for services 51,547                 ‐                             (51,547)               262,800               216,414               (46,386)              Fines and forfeitures ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Interest income 3,248                   45,870                 42,622                37,700                 150,598               112,898             Special assessments ‐                            ‐                            ‐                           5,700                   5,525                   (175)                   Miscellaneous 223,467               385,604               162,137              ‐                            945                      945                     Total revenues 36,353,416         15,685,716         (20,667,700)       4,034,100           3,974,414           (59,686)              Expenditures: Current: General government 1,743,786            505,508               1,238,278           ‐                            ‐                            ‐                          Public safety 3,204,951            1,266,869           1,938,082           ‐                            ‐                            ‐                          Physical environment 108,688               77,911                 30,777                3,060,705           985,912               2,074,793          Transportation 257,277               5,038                   252,239              2,242,666           999,064               1,243,602          Economic environment 11,417,474         3,504,360           7,913,114           ‐                            ‐                            ‐                          Human services 6,496,537            3,420,923           3,075,614           ‐                            ‐                            ‐                          Culture and recreation 870,962               103,121               767,841              1,086,200           979,655               106,545             Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 23,432,820         13,322,082         10,110,738        7,277,435           138,454               7,138,981          Total expenditures 47,532,495         22,205,812         25,326,683        13,667,006         3,103,085           10,563,921       Excess (deficit) of revenues    over (under) expenditures  (11,179,079)        (6,520,096)          4,658,983           (9,632,906)          871,329               10,504,235       Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets 9,250                   5,600                   (3,650)                 ‐                            ‐                            ‐                          Insurance proceeds ‐                            ‐                            ‐                           ‐                            11,862                 11,862               Transfers in 10,342,959         8,032,584           (2,310,375)         546,900               576,266               29,366               Transfers out (214,335)              (109,976)             104,359              (709,300)             (578,286)             131,014             Total other financing sources (uses)  10,137,874         7,928,208           (2,209,666)         (162,400)             9,842                   172,242             Net change in fund balances (1,041,205)          1,408,112           2,449,317           (9,795,306)          881,171               10,676,477       Fund balances at beginning of year 3,459,954            3,459,954           ‐                           12,096,243         12,096,243         ‐                          Fund balances at end of year 2,418,749$         4,868,066$        2,449,317$       2,300,937$        12,977,414$       10,676,477$    Reconciliation: Net change in fund balance, budgetary basis 1,408,112$         881,171$             Change in fair value of investments (20,143)                (65,539)                 Ad valorem refunds not budgeted ‐                            (1,336)                   Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds 430,215               ‐                             Net change in fund balance, GAAP basis 1,818,184$        814,296$             See accompanying independent auditors' report   Grants and Shared Revenues Improvement Districts (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 108 Budget Actual Variance Budget Actual Variance 3,097,200$         2,996,574$         (100,626)$          1,391,000$      1,343,240$        (47,760)$            ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            10,352                 10,352                ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           2,000                   16,863                 14,863                2,500                18,681                16,181                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           1,700                   2,000                   300                      ‐                         ‐                           ‐                           3,100,900           3,025,789           (75,111)               1,393,500         1,361,921           (31,579)               ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           3,282,392           2,985,510           296,882              ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           1,211,400         1,126,662           84,738                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           30,000                 29,702                 298                      ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           38,700              38,267                433                      3,312,392           3,015,212           297,180              1,250,100         1,164,929           85,171                (211,492)             10,577                 222,069              143,400            196,992              53,592                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           737,700               729,269               (8,431)                 ‐                         9,814                  9,814                  (393,808)             (374,246)             19,562                (120,300)           (103,987)             16,313                343,892               355,023               11,131                (120,300)           (94,173)               26,127                132,400               365,600               233,200              23,100              102,819              79,719                317,800               317,800               ‐                           1,259,000         1,259,000           ‐                           450,200$            683,400$           233,200$           1,282,100$     1,361,819$        79,719$             365,600$            102,819$             (7,022)                  (8,012)                  (1,285)                  (149)                     ‐                            ‐                            147,900               ‐                            ‐                            ‐                            505,193$           94,658$               Fire Control Districts Lighting Districts (Budgetary Basis)(Budgetary Basis) 109 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         22,062,000$       21,961,390$       (100,610)$         Licenses, permits and impact fees ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Intergovernmental 1,725,000            1,839,090           114,090              300,000               1,633,002           1,333,002          Charges for services ‐                            ‐                            ‐                           66,356                 10,346                 (56,010)              Fines and forfeitures ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Interest income 24,200                 32,223                 8,023                  243,900               623,546               379,646             Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                            ‐                            ‐                           15,000                 106,933               91,933               Total revenues 1,749,200            1,871,313           122,113              22,687,256         24,335,217         1,647,961          Expenditures: Current: General government ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Public safety 2,467,571            2,113,960           353,611              ‐                            ‐                            ‐                          Physical environment ‐                            ‐                            ‐                           3,963,344           2,193,059           1,770,285          Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Culture and recreation ‐                            ‐                            ‐                           16,100,046         11,765,413         4,334,633          Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 60,130                 ‐                            60,130                17,313,999         4,010,579           13,303,420       Total expenditures 2,527,701            2,113,960           413,741              37,377,389         17,969,051         19,408,338       Excess (deficit) of revenues    over (under) expenditures  (778,501)              (242,647)             535,854              (14,690,133)        6,366,166           21,056,299       Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Insurance proceeds ‐                            ‐                            ‐                           ‐                            3,793                   3,793                 Transfers in ‐                            ‐                            ‐                           3,949,500           4,072,772           123,272             Transfers out ‐                            (8,160)                  (8,160)                 (4,818,850)          (4,883,641)          (64,791)              Total other financing sources (uses) ‐                            (8,160)                  (8,160)                 (869,350)             (807,076)             62,274               Net change in fund balances (778,501)              (250,807)             527,694              (15,559,483)        5,559,090           21,118,573       Fund balances at beginning of year 3,090,190            3,090,190           ‐                           56,113,916         56,113,916         ‐                          Fund balances at end of year 2,311,689$         2,839,383$        527,694$           40,554,433$      61,673,006$       21,118,573$    Reconciliation: Net change in fund balance, budgetary basis (250,807)$           5,559,090$          Change in fair value of investments (14,122)                (272,381)              Ad valorem refunds not budgeted ‐                            ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis (264,929)$          5,286,709$          See accompanying independent auditors' report   911 Enhancement Fee Tourist Development (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 110 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                       ‐$                         ‐$                         ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           5,729,036           2,255,124           (3,473,912)         ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           419,800            363,625              (56,175)               ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           5,884                   41,627                 35,743                200                    1,254                  1,054                  ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           40,310                 497,796               457,486              133,700            141,823              8,123                  5,775,230           2,794,547           (2,980,683)         553,700            506,702              (46,998)               ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           1,263,300         1,202,661           60,639                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           5,775,230           1,715,446           4,059,784           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           5,775,230           1,715,446           4,059,784           1,263,300         1,202,661           60,639                ‐                             1,079,101           1,079,101           (709,600)           (695,959)             13,641                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            57,943                 57,943                663,900            663,900              ‐                           ‐                            (89,514)                (89,514)               ‐                         ‐                           ‐                           ‐                            (31,571)                (31,571)               663,900            663,900              ‐                           ‐                             1,047,530           1,047,530           (45,700)             (32,059)               13,641                ‐                            ‐                            ‐                           66,900              66,900                ‐                           ‐$                          1,047,530$        1,047,530$       21,200$           34,841$              13,641$             1,047,530$         (32,059)$              (17,911)                (538)                     ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            1,029,619$        (32,597)$              State Housing Initiativeship Partnership 800 MHZ IRCP Fund (Budgetary Basis)(Budgetary Basis) 111 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         ‐$                         ‐$                         ‐$                        Licenses, permits and impact fees ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Intergovernmental ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Charges for services 172,000               184,375               12,375                ‐                            ‐                            ‐                          Fines and forfeitures 910,900               813,986               (96,914)               ‐                            48,945                 48,945               Interest income 1,000                   4,649                   3,649                  1,500                   2,292                   792                     Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                            9,756                   9,756                  ‐                            ‐                            ‐                          Total revenues 1,083,900            1,012,766           (71,134)               1,500                   51,237                 49,737               Expenditures: Current: General government 1,079,500            1,035,698           43,802                ‐                            ‐                            ‐                          Public safety 1,498,300            1,470,842           27,458                60,500                 47,500                 13,000               Physical environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Culture and recreation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 33,500                 28,250                 5,250                  ‐                            ‐                            ‐                          Total expenditures 2,611,300            2,534,790           76,510                60,500                 47,500                 13,000               Excess (deficit) of revenues    over (under) expenditures  (1,527,400)          (1,522,024)          5,376                  (59,000)                3,737                   62,737               Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Insurance proceeds ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers in 1,613,400            1,589,800           (23,600)               ‐                            ‐                            ‐                          Transfers out (231,700)              (214,200)             17,500                (104,422)             (41,718)                62,704               Total other financing sources (uses) 1,381,700            1,375,600           (6,100)                 (104,422)             (41,718)                62,704               Net change in fund balances (145,700)              (146,424)             (724)                    (163,422)             (37,981)                125,441             Fund balances at beginning of year 254,700               254,700               ‐                           244,722               244,722               ‐                          Fund balances at end of year 109,000$             108,276$           (724)$                 81,300$              206,741$            125,441$          Reconciliation: Net change in fund balance, budgetary basis (146,424)$           (37,981)$              Change in fair value of investments (1,985)                  (1,008)                   Ad valorem refunds not budgeted ‐                            ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis (148,409)$          (38,989)$              See accompanying independent auditors' report   State Court Administration Confiscated Property (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 112 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         181,900$          236,909$            55,009$              ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           100,000            100,000              ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           3,500                   9,379                   5,879                  2,000                13,934                11,934                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           17,000                 ‐                             (17,000)               ‐                         ‐                           ‐                           20,500                 9,379                   (11,121)               283,900            350,843              66,943                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           456,520            280,683              175,837              ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           69,519                 68,819                 700                      ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           69,519                 68,819                 700                      456,520            280,683              175,837              (49,019)                (59,440)                (10,421)               (172,620)           70,160                242,780              ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           (49,019)                (59,440)                (10,421)               (172,620)           70,160                242,780              854,500               854,500               ‐                           1,352,720         1,352,720           ‐                           805,481$            795,060$           (10,421)$            1,180,100$     1,422,880$        242,780$           (59,440)$             70,160$               (4,120)                  (6,119)                  ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            (63,560)$            64,041$               GAC Land Sales, Roads and Canals Utility Fee (Budgetary Basis)(Budgetary Basis) 113 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          1,442$                 1,442$                ‐$                         ‐$                         ‐$                        Licenses, permits and impact fees ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Intergovernmental ‐                            3,019                   3,019                  ‐                            ‐                            ‐                          Charges for services ‐                            40                         40                        750,000               852,180               102,180             Fines and forfeitures ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Interest income 328,400               344,439               16,039                4,200                   12,172                 7,972                 Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous 60,174                 186,913               126,739              ‐                            ‐                            ‐                          Total revenues 388,574               535,853               147,279              754,200               864,352               110,152             Expenditures: Current: General government ‐                            ‐                            ‐                           855,050               815,157               39,893               Public safety ‐                            ‐                            ‐                           36,800                 32,576                 4,224                 Physical environment 848,889               658,566               190,323              ‐                            ‐                            ‐                          Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           6,568                   3,068                   3,500                 Culture and recreation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 187,035               6,058                   180,977              65,382                 45,508                 19,874               Total expenditures 1,035,924            664,624               371,300              963,800               896,309               67,491               Excess (deficit) of revenues    over (under) expenditures  (647,350)              (128,771)             518,579              (209,600)             (31,957)                177,643             Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            400                      400                     Insurance proceeds ‐                            54                         54                        ‐                            ‐                            ‐                          Transfers in 5,000                   150,193               145,193              ‐                            ‐                            ‐                          Transfers out (14,082)                (153,646)             (139,564)             ‐                            ‐                            ‐                          Total other financing sources (uses) (9,082)                  (3,399)                  5,683                  ‐                            400                      400                     Net change in fund balances (656,432)              (132,170)             524,262              (209,600)             (31,557)                178,043             Fund balances at beginning of year 32,960,732         32,960,732         ‐                           853,200               853,200               ‐                          Fund balances at end of year 32,304,300$       32,828,562$      524,262$           643,600$           821,643$            178,043$          Reconciliation: Net change in fund balance, budgetary basis (132,170)$           (31,557)$              Change in fair value of investments (151,052)             (5,315)                   Ad valorem refunds not budgeted (113)                     ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis (283,335)$          (36,872)$              See accompanying independent auditors' report   Conservation Collier Court Information Technology (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 114 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                       ‐$                         ‐$                         ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           219,000               629,086               410,086              ‐                         ‐                           ‐                           5,965,241           5,463,687           (501,554)             28,000              17,064                (10,936)               ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           5,000                   23,116                 18,116                ‐                         1,298                  1,298                  ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           6,189,241           6,115,889           (73,352)               28,000              18,362                (9,638)                 6,189,241           6,099,469           89,772                ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           55,000              18,630                36,370                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           6,189,241           6,099,469           89,772                55,000              18,630                36,370                ‐                            16,420                 16,420                (27,000)             (268)                    26,732                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            16,420                 16,420                (27,000)             (268)                    26,732                ‐                            ‐                            ‐                           115,300            115,300              ‐                           ‐$                         16,420$              16,420$             88,300$           115,032$            26,732$             16,420$               (268)$                   ‐                            (569)                     ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            16,420$              (837)$                   University Extension Court Services (Budgetary Basis) 115 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         ‐$                         ‐$                         ‐$                        Licenses, permits and impact fees ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Intergovernmental ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Charges for services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Fines and forfeitures 945,000               737,223               (207,777)             ‐                            ‐                            ‐                          Interest income 25,000                 67,191                 42,191                500                      1,638                   1,138                 Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Total revenues 970,000               804,414               (165,586)             500                      1,638                   1,138                 Expenditures: Current: General government 643,691               305,933               337,758              ‐                            ‐                            ‐                          Public safety ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Physical environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           132,500               ‐                             132,500             Human services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Culture and recreation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 1,978,048            1,148,387           829,661              ‐                            ‐                            ‐                          Total expenditures 2,621,739            1,454,320           1,167,419           132,500               ‐                             132,500             Excess (deficit) of revenues    over (under) expenditures  (1,651,739)          (649,906)             1,001,833           (132,000)             1,638                   133,638             Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Insurance proceeds ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers in ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers out ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Total other financing sources (uses) ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Net change in fund balances (1,651,739)          (649,906)             1,001,833           (132,000)             1,638                   133,638             Fund balances at beginning of year 6,426,735            6,426,735           ‐                           132,000               132,000               ‐                          Fund balances at end of year 4,774,996$         5,776,829$        1,001,833$       ‐$                         133,638$            133,638$          Reconciliation: Net change in fund balance, budgetary basis (649,906)$           1,638$                  Change in fair value of investments (29,488)                (718)                      Ad valorem refunds not budgeted ‐                            ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis (679,394)$          920$                     See accompanying independent auditors' report   Court Facilities Fee Affordable Housing (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 116 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                       ‐$                         ‐$                         ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           1,469,000         1,315,132           (153,868)            ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            325                      325                      8,200                21,438                13,238                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            325                      325                      1,477,200         1,336,570           (140,630)            ‐                            ‐                            ‐                           3,070,230         1,729,227           1,341,003           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           1,000                   ‐                            1,000                  ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           1,356,824         157,806              1,199,018           1,000                   ‐                            1,000                  4,427,054         1,887,033           2,540,021           (1,000)                  325                      1,325                  (2,949,854)       (550,463)             2,399,391           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           31,200                 31,200                 ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           31,200                 31,200                 ‐                           ‐                         ‐                           ‐                           30,200                 31,525                 1,325                  (2,949,854)       (550,463)             2,399,391           ‐                            ‐                            ‐                           3,807,879         3,807,879           ‐                           30,200$               31,525$              1,325$               858,025$         3,257,416$        2,399,391$       31,525$               (550,463)$           (142)                     ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            31,383$              (550,463)$           Ava Maria Innovation Zone (Budgetary Basis)Other Court Special Revenue Funds 117 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         ‐$                         ‐$                         ‐$                        Licenses, permits and impact fees ‐                            ‐                            ‐                           8,800                   26,266                 17,466               Intergovernmental ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Charges for services 90,000                 71,706                 (18,294)               248,500               237,606               (10,894)              Fines and forfeitures 78,000                 63,199                 (14,801)               45,200                 47,885                 2,685                 Interest income 13,400                 19,891                 6,491                  11,300                 12,649                 1,349                 Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                            ‐                            ‐                           74,200                 174,803               100,603             Total revenues 181,400               154,796               (26,604)               388,000               499,209               111,209             Expenditures: Current: General government ‐                            ‐                            ‐                           195,500               185,563               9,937                 Public safety 1,042,200            357,432               684,768              119,000               118,318               682                     Physical environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           258,100               237,911               20,189               Culture and recreation ‐                            ‐                            ‐                           256,444               154,574               101,870             Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 100,000               ‐                             100,000              241,156               108,537               132,619             Total expenditures 1,142,200            357,432               784,768              1,070,200           804,903               265,297             Excess (deficit) of revenues    over (under) expenditures  (960,800)              (202,636)             758,164              (682,200)             (305,694)             376,506             Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            2,405                   2,405                 Insurance proceeds ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers in ‐                            ‐                            ‐                           196,900               180,000               (16,900)              Transfers out (364,288)              (238,291)             125,997              ‐                            ‐                            ‐                          Total other financing sources (uses) (364,288)              (238,291)             125,997              196,900               182,405               (14,495)              Net change in fund balances (1,325,088)          (440,927)             884,161              (485,300)             (123,289)             362,011             Fund balances at beginning of year 2,010,188            2,010,188           ‐                           958,300               958,300               ‐                          Fund balances at end of year 685,100$             1,569,261$        884,161$           473,000$           835,011$            362,011$          Reconciliation: Net change in fund balance, budgetary basis (440,927)$           (123,289)$            Change in fair value of investments (8,739)                  (5,585)                   Ad valorem refunds not budgeted ‐                            ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds 194,390               ‐                             Net change in fund balance, GAAP basis (255,276)$          (128,874)$            See accompanying independent auditors' report   Other Public Safety Revenue Funds Other Special Revenue Funds (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 118 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                       31$                      31$                      ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           16,700                 17,844                 1,144                  ‐                         86                        86                        ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           16,700                 17,844                 1,144                  ‐                         117                      117                      ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           29,900                 4,433                   25,467                ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           361,800            347,386              14,414                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           29,900                 4,433                   25,467                361,800            347,386              14,414                (13,200)                13,411                 26,611                (361,800)           (347,269)             14,531                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           257,000            237,254              (19,746)               ‐                            ‐                            ‐                           (25,000)             (593)                    24,407                ‐                            ‐                            ‐                           232,000            236,661              4,661                  (13,200)                13,411                 26,611                (129,800)           (110,608)             19,192                1,679,300           1,679,300           ‐                           107,300            107,300              ‐                           1,666,100$         1,692,711$        26,611$             (22,500)$          (3,308)$               19,192$             13,411$               (110,608)$           (7,830)                  (50)                       ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            5,581$                (110,658)$           Resource Recovery Park Endowment Radio Road East Limited General (Budgetary Basis)Obligation Bonds (Budgetary Basis) 119 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         ‐$                         ‐$                         ‐$                        Licenses, permits and impact fees ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Intergovernmental 1,800,000            1,953,725           153,725              ‐                            ‐                            ‐                          Charges for services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Fines and forfeitures ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Interest income 2,000                   5,295                   3,295                  2,400                   2,873                   473                     Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Total revenues 1,802,000            1,959,020           157,020              2,400                   2,873                   473                     Expenditures: Current: General government ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Public safety ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Physical environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Culture and recreation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Debt service 13,151,200         13,135,860         15,340                6,038,293           5,973,739           64,554               Capital outlay ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Total expenditures 13,151,200         13,135,860         15,340                6,038,293           5,973,739           64,554               Excess (deficit) of revenues    over (under) expenditures  (11,349,200)        (11,176,840)        172,360              (6,035,893)          (5,970,866)          65,027               Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           5,293,293           5,293,293           ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Insurance proceeds ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers in 12,150,000         12,150,000         ‐                           832,800               85,500                 (747,300)            Transfers out ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Total other financing sources (uses)  12,150,000         12,150,000         ‐                           6,126,093           5,378,793           (747,300)            Net change in fund balances 800,800               973,160               172,360              90,200                 (592,073)             (682,273)            Fund balances at beginning of year 26,900                 26,900                 ‐                           934,400               934,400               ‐                          Fund balances at end of year 827,700$             1,000,060$        172,360$           1,024,600$        342,327$            (682,273)$        Reconciliation: Net change in fund balance, budgetary basis 973,160$            (592,073)$            Change in fair value of investments (2,169)                  (515)                      Ad valorem refunds not budgeted ‐                            ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis 970,991$           (592,588)$            See accompanying independent auditors' report   Gas Tax Revenue Bonds Community Redevelopment Taxable Note (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 120 Budget Actual Variance Budget Actual Variance 473,400$            457,555$            (15,845)$             ‐$                       ‐$                         ‐$                         ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           2,000                   8,370                   6,370                  8,000                27,810                19,810                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           475,400               465,925               (9,475)                 8,000                27,810                19,810                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           557,500               556,364               1,136                  18,327,600      18,299,711        27,889                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           557,500               556,364               1,136                  18,327,600      18,299,711        27,889                (82,100)                (90,439)                (8,339)                 (18,319,600)     (18,271,901)       47,699                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            3,950                   3,950                  18,056,400      18,122,436        66,036                (18,800)                (14,153)                4,647                  ‐                         ‐                           ‐                           (18,800)                (10,203)                8,597                  18,056,400      18,122,436        66,036                (100,900)             (100,642)             258                      (263,200)           (149,465)             113,735              8,300,000           8,300,000           ‐                           3,070,400         3,070,400           ‐                           8,199,100$         8,199,358$        258$                  2,807,200$     2,920,935$        113,735$           (100,642)$           (149,465)$           (3,672)                  (12,501)                ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            (104,314)$          (161,966)$           Forest Lakes Limited General Special Obligation Revenue Bonds Obligation Bonds (Budgetary Basis)(Budgetary Basis) 121 Budget Actual Variance Budget Actual Variance Revenues: Taxes 6,000$                 243$                    (5,757)$               ‐$                         ‐$                         ‐$                        Licenses, permits and impact fees ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Intergovernmental ‐                            ‐                            ‐                           1,350,000           ‐                             (1,350,000)        Charges for services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Fines and forfeitures ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Interest income 400                       123                      (277)                    35,000                 136,234               101,234             Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Total revenues 6,400                   366                      (6,034)                 1,385,000           136,234               (1,248,766)        Expenditures: Current: General government ‐                            ‐                            ‐                           9,042,543           3,734,030           5,308,513          Public safety ‐                            ‐                            ‐                           1,238,670           677,641               561,029             Physical environment ‐                            ‐                            ‐                           168,443               3,159                   165,284             Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           100,000               19                         99,981               Culture and recreation ‐                            ‐                            ‐                           100,000               ‐                             100,000             Debt service 12,000                 ‐                            12,000                ‐                            ‐                            ‐                          Capital outlay ‐                            ‐                            ‐                           15,891,433         5,435,137           10,456,296       Total expenditures 12,000                 ‐                            12,000                26,541,089         9,849,986           16,691,103       Excess (deficit) of revenues    over (under) expenditures  (5,600)                  366                      5,966                  (25,156,089)        (9,713,752)          15,442,337       Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            1,533                   1,533                 Insurance proceeds ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers in ‐                            ‐                            ‐                           15,824,400         13,724,873         (2,099,527)        Transfers out (6,000)                  (66,847)                (60,847)               (2,476,900)          (2,811,487)          (334,587)            Total other financing sources (uses) (6,000)                  (66,847)                (60,847)               13,347,500         10,914,919         (2,432,581)        Net change in fund balances (11,600)                (66,481)                (54,881)               (11,808,589)        1,201,167           13,009,756       Fund balances at beginning of year ‐                            ‐                            ‐                           12,260,204         12,260,204         ‐                          Fund balances at end of year (11,600)$              (66,481)$            (54,881)$            451,615$           13,461,371$       13,009,756$    Reconciliation: Net change in fund balance, budgetary basis (66,481)$             1,201,167$          Change in fair value of investments (59)                       (59,033)                 Ad valorem refunds not budgeted (127)                     ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis (66,667)$            1,142,134$          See accompanying independent auditors' report   Other Debt Service County‐Wide Capital Improvements (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 122 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                       ‐$                         ‐$                         590,000               594,852               4,852                  875,000            917,541              42,541                2,400,000           21,014                 (2,378,986)         ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           10,000                 36,429                 26,429                5,000                11,511                6,511                  ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           329,100               2,000,308           1,671,208           ‐                         ‐                           ‐                           3,329,100           2,652,603           (676,497)             880,000            929,052              49,052                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           4,886,898           1,827,710           3,059,188           116,270            25,442                90,828                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           3,269,273           1,055,306           2,213,967           297,577            181,061              116,516              8,156,171           2,883,016           5,273,155           413,847            206,503              207,344              (4,827,071)          (230,413)             4,596,658           466,153            722,549              256,396              ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            1,500                   1,500                  ‐                         ‐                           ‐                           5,120,700           5,150,892           30,192                321,000            321,000              ‐                           (2,134,700)          (2,132,265)          2,435                  (1,160,300)       (1,160,300)         ‐                           2,986,000           3,020,127           34,127                (839,300)           (839,300)             ‐                           (1,841,071)          2,789,714           4,630,785           (373,147)           (116,751)             256,396              2,983,458           2,983,458           ‐                           854,247            854,247              ‐                           1,142,387$         5,773,172$        4,630,785$       481,100$         737,496$            256,396$           2,789,714$         (116,751)$           (15,605)                (4,732)                  ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            2,774,109$        (121,483)$           Parks Improvements County‐Wide Library Impact Fee (Budgetary Basis)(Budgetary Basis) 123 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         ‐$                         ‐$                         ‐$                        Licenses, permits and impact fees 1,500,000            1,518,046           18,046                350,000               370,960               20,960               Intergovernmental ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Charges for services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Fines and forfeitures ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Interest income 6,000                   16,483                 10,483                8,000                   5,037                   (2,963)                Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Total revenues 1,506,000            1,534,529           28,529                358,000               375,997               17,997               Expenditures: Current: General government ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Public safety 550,005               355,236               194,769              76,835                 15,628                 61,207               Physical environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Culture and recreation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay ‐                            ‐                            ‐                           93,320                 ‐                             93,320               Total expenditures 550,005               355,236               194,769              170,155               15,628                 154,527             Excess (deficit) of revenues    over (under) expenditures  955,995               1,179,293           223,298              187,845               360,369               172,524             Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Insurance proceeds ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers in ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers out (1,865,500)          (1,865,500)          ‐                           (448,000)             (448,000)             ‐                          Total other financing sources (uses) (1,865,500)          (1,865,500)          ‐                           (448,000)             (448,000)             ‐                          Net change in fund balances (909,505)              (686,207)             223,298              (260,155)             (87,631)                172,524             Fund balances at beginning of year 2,375,605            2,375,605           ‐                           527,255               527,255               ‐                          Fund balances at end of year 1,466,100$         1,689,398$        223,298$           267,100$           439,624$            172,524$          Reconciliation: Net change in fund balance, budgetary basis (686,207)$           (87,631)$              Change in fair value of investments (7,029)                  (2,084)                   Ad valorem refunds not budgeted ‐                            ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis (693,236)$          (89,715)$              See accompanying independent auditors' report   Correctional Facilities Impact Fees Emergency Medical Services Impact Fees (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 124 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                       ‐$                         ‐$                         ‐                            ‐                            ‐                           8,000,000         9,053,250           1,053,250           100,000               ‐                             (100,000)             ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           55,000                 143,072               88,072                93,000              263,191              170,191              428,100               412,330               (15,770)               ‐                         ‐                           ‐                           33,857                 90,143                 56,286                ‐                         ‐                           ‐                           616,957               645,545               28,588                8,093,000         9,316,441           1,223,441           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           3,874,398           1,178,873           2,695,525           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           346,040            77,133                268,907              ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           12,964,269         3,000,940           9,963,329           23,855,281      3,606,026           20,249,255        16,838,667         4,179,813           12,658,854        24,201,321      3,683,159           20,518,162        (16,221,710)        (3,534,268)          12,687,442        (16,108,321)     5,633,282           21,741,603        ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           6,697,000           6,699,708           2,708                  ‐                         9,044                  9,044                  (2,666,099)          (1,998,205)          667,894              (2,939,300)       (2,948,344)         (9,044)                 4,030,901           4,701,503           670,602              (2,939,300)       (2,939,300)         ‐                           (12,190,809)        1,167,235           13,358,044        (19,047,621)     2,693,982           21,741,603        12,263,748         12,263,748         ‐                           22,167,323      22,167,323        ‐                           72,939$               13,430,983$      13,358,044$     3,119,702$     24,861,305$      21,741,603$     1,167,235$         2,693,982$         (62,118)                (112,942)              ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                            1,105,117$        2,581,040$         Water Management Parks Impact Districts (Budgetary Basis)(Budgetary Basis) 125 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         13,627,500$       15,408,449$       1,780,949$       Licenses, permits and impact fees 9,300,000            19,273,674         9,973,674           ‐                            ‐                            ‐                          Intergovernmental ‐                            ‐                            ‐                           5,321,816           4,676,381           (645,435)            Charges for services ‐                            ‐                            ‐                           195,139               167,043               (28,096)              Fines and forfeitures ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Interest income 250,000               608,572               358,572              210,000               542,010               332,010             Special assessments ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Miscellaneous ‐                            78,792                 78,792                126,951               2,228,667           2,101,716          Total revenues 9,550,000            19,961,038         10,411,038        19,481,406         23,022,550         3,541,144          Expenditures: Current: General government ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Public safety ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Physical environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transportation 4,012,378            221,659               3,790,719           9,454,305           7,363,464           2,090,841          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Culture and recreation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 44,000,354         18,819,511         25,180,843        55,954,960         15,329,037         40,625,923       Total expenditures 48,012,732         19,041,170         28,971,562        65,409,265         22,692,501         42,716,764       Excess (deficit) of revenues    over (under) expenditures  (38,462,732)        919,868               39,382,600        (45,927,859)        330,049               46,257,908       Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Insurance proceeds ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers in ‐                            ‐                            ‐                           11,760,000         11,767,665         7,665                 Transfers out (4,944,439)          (3,716,314)          1,228,125           (12,793,409)        (12,698,268)        95,141               Total other financing sources (uses) (4,944,439)          (3,716,314)          1,228,125           (1,033,409)          (930,603)             102,806             Net change in fund balances (43,407,171)        (2,796,446)          40,610,725        (46,961,268)        (600,554)             46,360,714       Fund balances at beginning of year 56,356,915         56,356,915         ‐                           54,072,781         54,072,781         ‐                          Fund balances at end of year 12,949,744$       53,560,469$      40,610,725$     7,111,513$        53,472,227$       46,360,714$    Reconciliation: Net change in fund balance, budgetary basis (2,796,446)$         (600,554)$            Change in fair value of investments  (264,082)              (236,511)              Ad valorem refunds not budgeted  ‐                             ‐                             Change in inventory  ‐                             ‐                             Advances budgeted as transfers  ‐                             ‐                             Unbudgeted funds  ‐                             ‐                             Net change in fund balance, GAAP basis  (3,060,528)$        (837,065)$            See accompanying independent auditors' report   Road Impact Districts Road Construction (Budgetary Basis) (Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 126 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                       ‐$                         ‐$                         2,400,000           2,554,612           154,612              1,300,000         1,403,537           103,537              ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           25,000                 36,616                 11,616                16,000              25,081                9,081                  ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           2,425,000           2,591,228           166,228              1,316,000         1,428,618           112,618              139,694               18,297                 121,397              ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           165,104            104,620              60,484                ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           7,300                   7,249                   51                        ‐                         ‐                           ‐                           47,468                 ‐                            47,468                2,332,250         1,272,844           1,059,406           194,462               25,546                 168,916              2,497,354         1,377,464           1,119,890           2,230,538           2,565,682           335,144              (1,181,354)       51,154                1,232,508           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           ‐                            ‐                            ‐                           ‐                         ‐                           ‐                           2,693,900           2,693,900           ‐                           92,000              92,000                ‐                           (6,299,500)          (6,299,500)          ‐                           (1,873,000)       (1,873,000)         ‐                           (3,605,600)          (3,605,600)          ‐                           (1,781,000)       (1,781,000)         ‐                           (1,375,062)          (1,039,918)          335,144              (2,962,354)       (1,729,846)         1,232,508           4,309,162           4,309,162           ‐                           3,537,354         3,537,354           ‐                           2,934,100$         3,269,244$        335,144$           575,000$         1,807,508$        1,232,508$       (1,039,918)$        (1,729,846)$        (15,658)                (11,192)                ‐                            ‐                            ‐                            ‐                            1,130,000           ‐                            ‐                            ‐                            74,424$              (1,741,038)$        Government Facilities Impact Fees Law Enforcement Impact Fees (Budgetary Basis)(Budgetary Basis) 127 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$                          ‐$                         ‐$                         ‐$                         ‐$                         ‐$                        Licenses, permits and impact fees ‐                            ‐                            ‐                           2,000                   6,985                   4,985                 Intergovernmental ‐                            ‐                            ‐                           100,000               ‐                             (100,000)            Charges for services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Fines and forfeitures ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Interest income 18,000                 31,337                 13,337                6,900                   18,728                 11,828               Special assessments ‐                            ‐                            ‐                           132,900               126,876               (6,024)                Miscellaneous ‐                            ‐                            ‐                           ‐                            46                         46                       Total revenues 18,000                 31,337                 13,337                241,800               152,635               (89,165)              Expenditures: Current: General government ‐                            ‐                            ‐                           175,000               53,669                 121,331             Public safety ‐                            ‐                            ‐                           14,853                 6,990                   7,863                 Physical environment ‐                            ‐                            ‐                           1,101,579           1,013,083           88,496               Transportation ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Economic environment ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Human services ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Culture and recreation 10,923                 20,330                 (9,407)                 715,248               108,793               606,455             Debt service ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Capital outlay 2,999,296            ‐                             2,999,296           457,202               191,214               265,988             Total expenditures 3,010,219            20,330                 2,989,889           2,463,882           1,373,749           1,090,133          Excess (deficit) of revenues    over (under) expenditures  (2,992,219)          11,007                 3,003,226           (2,222,082)          (1,221,114)          1,000,968          Other financing sources (uses): Notes issued ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Sale of capital assets ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Insurance proceeds ‐                            ‐                            ‐                           ‐                            ‐                            ‐                          Transfers in ‐                            ‐                            ‐                           1,578,900           1,533,407           (45,493)              Transfers out ‐                            ‐                            ‐                           (6,800)                  (4,192)                  2,608                 Total other financing sources (uses) ‐                            ‐                            ‐                           1,572,100           1,529,215           (42,885)              Net change in fund balances (2,992,219)          11,007                 3,003,226           (649,982)             308,101               958,083             Fund balances at beginning of year 2,993,119            2,993,119           ‐                           1,346,182           1,346,182           ‐                          Fund balances at end of year 900$                    3,004,126$        3,003,226$       696,200$           1,654,283$         958,083$          Reconciliation: Net change in fund balance, budgetary basis 11,007$               308,101$             Change in fair value of investments (13,741)                (8,135)                   Ad valorem refunds not budgeted ‐                            ‐                             Change in inventory ‐                            ‐                             Advances budgeted as transfers ‐                            ‐                             Unbudgeted funds ‐                            ‐                             Net change in fund balance, GAAP basis (2,734)$               299,966$             See accompanying independent auditors' report   All Terrain Vehicle Park (Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 Other Capital Projects (Budgetary Basis) 128 Nonmajor Enterprise Funds AIRPORT AUTHORITY – To account for the provision of landing facilities and the sale of fuel at the  airports.   COLLIER AREA TRANSIT – To account for the provision of public transportation throughout the  County.   Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Current assets: Cash and investments 1,701,022$         2,187,916$          3,888,938$        Receivables: Trade, net 60,599                 67,243                  127,842              Interest 2,092                   4,804                    6,896                   Due from other funds 7,472                   18,761                  26,233                Inventory 90,341                 ‐                             90,341                Restricted assets: Cash and investments 54,241                 191,166               245,407              Due from other governments 494,091               1,083,562            1,577,653           Total current assets 2,409,858           3,553,452            5,963,310           Noncurrent assets: Capital assets: Land and nondepreciable capital assets 3,112,625           6,374,639            9,487,264           Depreciable capital assets, net 30,613,976         17,795,769          48,409,745        Total noncurrent assets 33,726,601         24,170,408          57,897,009        Total assets 36,136,459         27,723,860          63,860,319        Deferred outflows of resources related to pensions 246,842               79,824                  326,666              LIABILITIES Current liabilities: Accounts payable 156,182               412,477               568,659              Wages payable 27,140                 15,255                  42,395                Due to other funds 8,900                   300                       9,200                   Due to other governments 3,622                   ‐                             3,622                   Unearned revenues 46,750                 ‐                             46,750                Compensated absences 31,975                 8,915                    40,890                Net pension liability 7,203                   1,901                    9,104                   Liabilities payable from restricted assets:  Accounts payable 56,273                 534,003               590,276              Retainage payable ‐                            91,143                  91,143                Due to other governments ‐                            50,234                  50,234                Refundable deposits 9,826                   ‐                             9,826                   Unearned revenue 27,847                 ‐                             27,847                Total current liabilities 375,718               1,114,228            1,489,946           Noncurrent liabilities: Compensated absences 7,994                   2,228                    10,222                Total OPEB liability 56,956                 15,188                  72,144                Net pension liability 645,253               200,800               846,053              Total noncurrent liabilities 710,203               218,216               928,419              Total liabilities 1,085,921           1,332,444            2,418,365           DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 49                         13                          62                        Deferred inflows of resources related to pensions 36,027                 10,535                  46,562                Total deferred inflows of resources 36,076                 10,548                  46,624                NET POSITION Net investment in capital assets 33,693,054         24,076,053          57,769,107        Restricted for grants and other purposes 454,386               693,703               1,148,089           Unrestricted 1,113,864           1,690,936            2,804,800           Total net position 35,261,304$      26,460,692$       61,721,996$      See accompanying independent auditors' report  DEFERRED OUTFLOWS OF RESOURCES COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2017 ASSETS 130 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Operating revenues: Charges for services  3,696,751$             1,133,193$            4,829,944$            Miscellaneous 36,620                     133,982                  170,602                  Total operating revenues   3,733,371                1,267,175              5,000,546              Operating expenses: Personal services 999,805                   349,382                  1,349,187              Operating 2,410,355                9,129,600              11,539,955            Depreciation 1,514,603                1,911,589              3,426,192              Total operating expenditures   4,924,763                11,390,571            16,315,334            Operating loss (1,191,392)              (10,123,396)           (11,314,788)           Non‐operating revenues: Operating grants and contributions  ‐                                 4,450,120              4,450,120              Interest income 5,486                        11,473                    16,959                    Gain on disposal of capital assets  14,003                     8,533                      22,536                    Total non‐operating revenues  19,489                     4,470,126              4,489,615              Loss before contributions and transfers  (1,171,903)              (5,653,270)             (6,825,173)             Capital grants and contributions  1,605,092                913,193                  2,518,285              Transfers in 300,259                   4,715,733              5,015,992              Transfers out (13,667)                    ‐                               (13,667)                   Total transfers and contributions  1,891,684                5,628,926              7,520,610              Changes in net position 719,781                   (24,344)                   695,437                  Net position ‐ beginning 34,600,780             26,496,887            61,097,667            Restatement of net position due to implementation of GASB 75 (59,257)                    (11,851)                   (71,108)                   Net position ‐ as restated 34,541,523             26,485,036            61,026,559            Net position ‐ ending 35,261,304$          26,460,692$         61,721,996$          See accompanying independent auditors' report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 131 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Cash flows from operating activities: Cash received for services  3,692,721$        1,220,040$         4,912,761$        Cash payments for goods and services (1,994,140)        (7,052,114)          (9,046,254)         Cash payments to employees (959,778)            (307,434)             (1,267,212)         Cash payments for interfund services (313,859)            (2,247,167)          (2,561,026)         Net cash provided by (used for) operating activities 424,944             (8,386,675)          (7,961,731)         Cash flows from non‐capital financing activities: Cash received from operating grants ‐                            6,585,733           6,585,733           Cash transfers from other funds 1,247,408          7,211,651           8,459,059           Cash transfers to other funds (1,363,045)        (2,622,312)          (3,985,357)         Net cash provided by (used for) non‐capital financing activities (115,637)            11,175,072         11,059,435        Cash flows from capital and related financing activities: Proceeds from disposal of capital assets 40,515               21,368                 61,883                Proceeds from capital grants 2,133,919          629,469               2,763,388           Payments for capital acquisitions (2,286,040)        (2,186,018)          (4,472,058)         Net cash used for capital and related financing activities (111,606)            (1,535,181)          (1,646,787)         Cash flows from investing activities: Interest on investments 4,931                  9,916                   14,847                Net cash provided by investing activities 4,931                  9,916                   14,847                Net increase in cash and investments 202,632             1,263,132           1,465,764           Cash and investments, October 1, 2016 1,552,631          1,115,950           2,668,581           Cash and investments, September 30, 2017 1,755,263$      2,379,082$        4,134,345$        Cash and investments 1,701,022$       2,187,916$         3,888,938$        Cash and investments ‐ restricted 54,241               191,166               245,407              Cash and investments, September 30, 2017 1,755,263$      2,379,082$        4,134,345$        Operating loss (1,191,392)$      (10,123,396)$     (11,314,788)$     Adjustments to reconcile operating loss to net cash provided by (used for) operating activities:  Depreciation expense 1,514,603          1,911,589           3,426,192           Net changes in assets and liabilities:  Trade receivable (41,801)              (47,737)                (89,538)               Due from other funds ‐                           33,795                 33,795                Due from other governments ‐                           1,047                   1,047                   Inventory (18,644)              ‐                             (18,644)               Accounts payable 121,000             (129,209)             (8,209)                 Wages payable 454                     7,153                   7,607                   Due to other funds ‐                           (74,712)                (74,712)               Due to other governments 139                     ‐                            139                      Compensated absences 5,395                  2,140                   7,535                   Unearned revenue 1,012                  ‐                            1,012                   Total OPEB liability and related deferred outflows/inflows (2,252)                3,350                   1,098                   Net pension liability and related deferred outflows/inflows 36,430               29,305                 65,735                Total adjustments 1,616,336          1,736,721           3,353,057           Net cash provided by (used for) operating activities 424,944$          (8,386,675)$       (7,961,731)$       Non‐cash investing, capital and financing activities: Change in fair value of investments (4,197)$              (8,237)$                (12,434)$             Contributed capital assets ‐                            283,724               283,724              Change in capital related grant receivable (583,288)            (890,820)             (1,474,108)         Capital related accounts payable 33,547               3,212                   36,759                See accompanying independent auditors' report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 132 Internal Service Funds SELF‐INSURANCE – To account for the self‐insurance costs of providing coverage for property,  general  and  vehicle  liability.  To  account  for  the  provisions  of  health  benefits  to  Board  and  participating constitutional officer employees and their dependents. To account for payment of  workers’ compensation claims, in lieu of insurance.   SHERIFF'S  SELF‐INSURANCE – To account for the provisions of health benefits to Sheriff  employees and their dependents. To account for payment of workers’ compensation claims, in  lieu of insurance.   FLEET MANAGEMENT – To account for fuel, oil, lubricants, repairs and maintenance of County  vehicles and the use of certain County owned vehicles by County employees.   MOTOR  POOL  CAPITAL  RECOVERY – To account for the accumulation of resources for the  replacement of vehicles and heavy equipment for County governmental activities.   INFORMATION TECHNOLOGY – To account for the costs of operating the County data processing  facility and telephone communication system.  Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Current assets: Cash and investments 43,921,649$       9,833,874$      655,291$           4,589,775$       2,383,946$       61,384,535$       Receivables: Trade, net 3,786                    1,319                ‐                           ‐                          ‐                           5,105                    Interest 95,791                  11,351              995                     9,744                 5,369                  123,250                Due from other funds 16,943                  ‐                         48,493                ‐                          ‐                           65,436                  Due from other governments ‐                             ‐                         94,365                ‐                          ‐                           94,365                  Inventory ‐                             ‐                          332,249             ‐                          ‐                            332,249                Prepaid costs ‐                             ‐                         ‐                           ‐                           45,000               45,000                  Total current assets 44,038,169          9,846,544        1,131,393          4,599,519         2,434,315          62,049,940          Noncurrent assets: Capital assets: Depreciable capital assets, net 204,207               ‐                          9,899,973          5,413,039         2,601,915          18,119,134          Total noncurrent assets 204,207               ‐                          9,899,973          5,413,039         2,601,915          18,119,134          Total assets 44,242,376          9,846,544        11,031,366        10,012,558       5,036,230          80,169,074          Deferred outflows of resources related to pensions 342,592               ‐                          629,625             3,139                 1,127,002          2,102,358            LIABILITIES Current liabilities: Accounts payable 258,643               ‐                          598,217             558,721             559,729             1,975,310            Wages payable 36,501                  ‐                         86,347                2,864                 130,598             256,310                Due to other funds ‐                             ‐                         ‐                           ‐                           47,940               47,940                  Unearned revenues 9,284                    ‐                         ‐                           ‐                          ‐                           9,284                    Self‐insurance claims payable 3,510,602            2,660,000        ‐                           ‐                          ‐                            6,170,602            Compensated absences 78,965                  ‐                          124,953             5,914                 194,334             404,166                Net pension liability 6,703                    ‐                         13,426                480                     20,609               41,218                  Total current liabilities 3,900,698            2,660,000        822,943             567,979             953,210             8,904,830            Noncurrent liabilities: Self‐insurance claims payable 2,314,157            ‐                         ‐                           ‐                          ‐                            2,314,157            Compensated absences 19,741                  ‐                         31,238                1,479                 48,583               101,041                Total OPEB liability 53,159                  ‐                          106,318             3,797                 163,274             326,548                Net pension liability 835,131               ‐                          1,516,773          53,682               2,720,836          5,126,422            Total noncurrent liabilities 3,222,188            ‐                          1,654,329          58,958               2,932,693          7,868,168            Total liabilities 7,122,886            2,660,000        2,477,272          626,937             3,885,903          16,772,998          DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 46                          ‐                         92                        3                         141                     282                        Deferred inflows of resources related to pensions 41,429                  ‐                         78,144                2,345                 132,533             254,451                Total deferred inflows of resources 41,475                  ‐                         78,236                2,348                 132,674             254,733                NET POSITION Net investment in capital assets 204,207               ‐                          9,899,973          4,854,318         2,600,142          17,558,640          Unrestricted 37,216,400          7,186,544        (794,490)            4,532,094         (455,487)            47,685,061          Total net position 37,420,607$       7,186,544$      9,105,483$        9,386,412$       2,144,655$       65,243,701$       See accompanying independent auditors' report  DEFERRED OUTFLOWS OF RESOURCES COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2017 ASSETS 134 Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating revenues: Charges for services 48,269,362$       27,393,382$       7,457,044$          2,423,100$      7,293,451$      92,836,339$        Miscellaneous 43,260                 ‐                             20,113                  ‐                         942                   64,315                  Total operating revenues 48,312,622         27,393,382         7,477,157            2,423,100        7,294,393        92,900,654          Operating expenses: Personal services 1,331,168            ‐                              2,489,217            151,506           4,437,788        8,409,679             Operating 43,327,040         26,007,107         5,595,153            ‐                          2,623,317        77,552,617          Depreciation 30,563                 ‐                              589,618                816,017           1,393,532        2,829,730             Total operating expenditures 44,688,771         26,007,107         8,673,988            967,523           8,454,637        88,792,026          Operating income (loss)3,623,851            1,386,275            (1,196,831)           1,455,577        (1,160,244)      4,108,628             Non‐operating revenues: Interest income 258,159               36,909                 3,091                    30,437              12,460              341,056                Insurance reimbursement 668,866               ‐                             ‐                              39,158              ‐                          708,024                Gain on disposal of capital assets 3                            ‐                             (3,503)                   276,970           686                   274,156                Total non‐operating revenues 927,028               36,909                 (412)                      346,565           13,146              1,323,236             Income (loss) before contributions  and transfers 4,550,879            1,423,184            (1,197,243)           1,802,142        (1,147,098)      5,431,864             Capital grants and contributions ‐                             ‐                             ‐                             ‐                          2,039                2,039                     Transfers in ‐                             ‐                             ‐                              2,794,600        50,000              2,844,600             Transfers out (1,635,600)          ‐                             ‐                             ‐                         ‐                          (1,635,600)           Total transfers and contributions (1,635,600)          ‐                             ‐                              2,794,600        52,039              1,211,039             Changes in net position 2,915,279            1,423,184            (1,197,243)           4,596,742        (1,095,059)      6,642,903             Net position ‐ beginning as previously stated 33,298,405         3,150,497            10,413,339          4,789,670        3,417,485        55,069,396          Restatement of net position due to implementation of GASB 75 1,206,923            2,612,863            (110,613)              ‐                          (177,771)          3,531,402             Net position ‐ beginning as restated 34,505,328         5,763,360            10,302,726          4,789,670        3,239,714        58,600,798          Net position ‐ ending 37,420,607$       7,186,544$        9,105,483$         9,386,412$     2,144,655$      65,243,701$       See accompanying independent auditors' report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 135 Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Cash flows from operating activities: Cash received from other funds for services 40,950,664$       26,400,000$       7,170,817$      2,423,100$      7,294,393$      84,238,974$        Cash received from employees for services 6,739,491           ‐                            ‐                         ‐                        ‐                          6,739,491            Cash received from other governments for services ‐                            ‐                             225,190            ‐                        ‐                          225,190                Cash received from retirees for services 632,119               994,704               ‐                         ‐                        ‐                          1,626,823            Cash payments on behalf of retirees (1,049,933)          ‐                            ‐                         ‐                        ‐                          (1,049,933)           Cash payments for goods and services (41,555,325)        (25,726,110)        (5,019,828)       ‐                         (2,416,967)       (74,718,230)         Cash payments to employees (1,290,850)          ‐                             (2,373,933)       (84,081)            (4,122,876)       (7,871,740)           Cash payments for interfund services (422,259)             ‐                             (235,183)           ‐                         (68,635)             (726,077)              Net cash provided by (used for) operating activities 4,003,907           1,668,594           (232,937)           2,339,019        685,915            8,464,498            Cash flows from non‐capital financing activities: Cash transfers from other funds ‐                            2,000                   ‐                          2,794,600        621,700            3,418,300            Cash transfers to other funds (1,635,600)          (3,554,292)          ‐                         ‐                         (571,700)          (5,761,592)           Net cash provided by (used for) non‐capital financing activities (1,635,600)          (3,552,292)          ‐                          2,794,600        50,000              (2,343,292)           Cash flows from capital and related financing activities: Receipts from insurance reimbursements 668,866               ‐                            ‐                          39,158              ‐                          708,024                Proceeds from disposal of capital assets 3                           ‐                             15,038              276,970           686                   292,697                Payments for capital acquisitions ‐                            ‐                             (146,928)           (3,179,037)       (779,741)          (4,105,706)           Net cash provided by (used for) capital and  related financing activities 668,869               ‐                             (131,890)           (2,862,909)       (779,055)          (3,104,985)           Cash flows from investing activities: Interest on investments 228,121               34,451                 2,947                24,338              10,170              300,027                Net cash provided by investing activities 228,121               34,451                 2,947                24,338              10,170              300,027                Net increase (decrease) in cash and investments 3,265,297           (1,849,247)          (361,880)           2,295,048        (32,970)             3,316,248            Cash and investments, October 1, 2016 40,656,352         11,683,121         1,017,171         2,294,727        2,416,916        58,068,287          Cash and investments, September 30, 2017 43,921,649$       9,833,874$        655,291$         4,589,775$     2,383,946$      61,384,535$       Operating income (loss)3,623,851$         1,386,275$         (1,196,831)$     1,455,577$      (1,160,244)$     4,108,628$          Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 30,563                 ‐                             589,618            816,017           1,393,532        2,829,730            Net changes in assets and liabilities: Trade receivable 994                      1,319                   ‐                         ‐                        ‐                         2,313                    Due from other funds 9,847                   ‐                             (7,553)               ‐                        ‐                         2,294                    Due from other governments 3,005                   ‐                             (73,597)             ‐                        ‐                          (70,592)                 Inventory ‐                            ‐                             35,307              ‐                        ‐                         35,307                  Prepaid costs 51,108                 ‐                            ‐                         ‐                         (1,288)               49,820                  Accounts payable (56,179)                ‐                             304,849            ‐                         91,063              339,733                Wages payable (3,157)                  ‐                             13,366              2,864                3,479                16,552                  Due to other funds ‐                            ‐                            ‐                         ‐                         47,940              47,940                  Due to other governments ‐                            ‐                            (14)                     ‐                        ‐                         (14)                        Compensated absences (16,788)                ‐                            (26)                     7,393                (5,788)               (15,209)                 Unearned revenue (1,189)                  ‐                            ‐                         ‐                        ‐                         (1,189)                   Self‐insurance claims payable 301,589               281,000               ‐                         ‐                        ‐                          582,589                Total OPEB liability and related deferred   outflows/inflows (2,101)                  ‐                             (4,203)               3,800                (14,356)             (16,860)                 Net pension liability and related deferred   outflows/inflows 62,364                 ‐                             106,147            53,368              331,577            553,456                Total adjustments 380,056               282,319               963,894            883,442           1,846,159        4,355,870            Net cash provided by operating activities 4,003,907$         1,668,594$        (232,937)$       2,339,019$     685,915$          8,464,498$         Non‐cash investing, capital and financing activities: Change in fair value of investments (198,105)$           ‐$                         (2,505)$             (23,574)$          (9,623)$             (233,807)$            Contributed capital assets ‐                            ‐                            ‐                         ‐                        2,039                2,039                    Capital related accounts payable ‐                            ‐                            ‐                          558,721           1,773                560,494                See accompanying independent auditors' report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 136 Fiduciary Funds CLERK OF COURTS AGENCY FUND – To account for monies held in Trust by the Clerk of the Circuit  Court prior to disbursement.   SHERIFF AGENCY FUND – To account for monies held in a custodial capacity by the Sheriff.  TAX COLLECTOR AGENCY FUND – To account for assets held by the Tax Collector prior to legal  disbursement.   DEPOSITS  AGENCY  FUND  –  To  account  for  monies  held  by  the  County  for  businesses  and  individuals.   PINE RIDGE AND NAPLES PRODUCTION PARK AGENCY FUND – To account for the receipt of  special assessments and the payment of principal and interest on behalf of assessment holders.   Pine Ridge Clerk Tax and Naples of Courts Sheriff Collector Deposits Production Park Agency Fund Agency Fund Agency Fund Agency Fund Agency Fund Total Cash and investments   21,158,645$         565,455$          6,271,609$           5,961,531$           165,448$                  34,122,688$       Receivables:  Interest  ‐                              ‐                          ‐                              12,361                   416                            12,777                  Other  10                           3,156                 50,324                   ‐                              ‐                                  53,490                  Total assets  21,158,655$         568,611$         6,321,933$          5,973,892$          165,864$                  34,188,955$      LIABILITIES  Due to other governments  989,426$               50,460$            6,284,876$           ‐$                            ‐$                               7,324,762$          Due to individuals  ‐                              518,151            37,057                   ‐                              ‐                                  555,208               Refundable deposits   20,169,229           ‐                          ‐                              5,973,892              ‐                                  26,143,121          Due to special assessment holders   ‐                              ‐                          ‐                              ‐                              165,864                    165,864               Total liabilities   21,158,655$         568,611$         6,321,933$          5,973,892$          165,864$                  34,188,955$      See accompanying independent auditors' report   ASSETS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2017 138 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash and investments  25,203,051$       143,863,312$           147,907,718$           21,158,645$        Receivable:    Other ‐                            10                               ‐                                  10                             Total assets 25,203,051$      143,863,322$          147,907,718$          21,158,655$        Liabilities:  Due to other governments   1,094,183$         6,109,724$               6,214,481$               989,426$              Refundable deposits 24,108,868         137,753,598             141,693,237             20,169,229             Total liabilities 25,203,051$      143,863,322$          147,907,718$          21,158,655$        Sheriff Agency Fund  Assets:  Cash and investments  628,987$            565,455$                   628,987$                   565,455$              Receivable:    Other 1,618                   3,156                         1,618                         3,156                       Total assets 630,605$           568,611$                  630,605$                   568,611$             Liabilities:  Due to other governments   61,919$               50,460$                     61,919$                     50,460$                Due to individuals 568,686               518,151                     568,686                     518,151                    Total liabilities 630,605$           568,611$                  630,605$                   568,611$             Tax Collector Agency Fund  Assets:  Cash and investments  6,657,055$         1,024,334,767$        1,024,720,213$        6,271,609$          Receivable:    Other 27,270                 4,725,634                  4,702,580                  50,324                     Total assets 6,684,325$        1,029,060,401$       1,029,422,793$       6,321,933$          Liabilities:  Due to other governments   6,631,195$         1,350,679,933$        1,351,026,252$        6,284,876$          Due to individuals 53,130                 43,134,076               43,150,149               37,057                     Total liabilities 6,684,325$        1,393,814,009$       1,394,176,401$       6,321,933$          Deposits Agency Fund  Assets:  Cash and investments  6,002,530$         704,241$                   745,240$                   5,961,531$          Receivables:    Interest  9,068                   12,361                       9,068                         12,361                     Total assets 6,011,598$        716,602$                  754,308$                   5,973,892$          Liabilities:  Refundable deposits 6,011,598$         680,480$                   718,186$                   5,973,892$             Total liabilities 6,011,598$        680,480$                  718,186$                   5,973,892$          (Continued) COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 139 Balance Balance October 1 Additions Deductions September 30 Assets:  Cash and investments  164,351$           2,004$                      907$                          165,448$             Receivables:    Interest  325                    415                           324                            416                          Total assets 164,676$            2,419$                       1,231$                       165,864$              Liabilities:  Due to special assessment holders   164,676$           2,420$                      1,232$                       165,864$                Total liabilities 164,676$            2,420$                       1,232$                       165,864$              Total  ‐ All Agency Funds  Assets:  Cash and investments  38,655,974$      1,169,469,779$       1,174,003,065$       34,122,688$        Receivables:    Interest  9,393                 12,776                     9,392                        12,777                   Other 28,888               4,728,800                4,704,198                 53,490                    Total assets 38,694,255$       1,174,211,355$        1,178,716,655$        34,188,955$        Liabilities:  Due to other governments   7,787,297$        1,356,840,117$       1,357,302,652$       7,324,762$          Due to individuals 621,816             43,652,227             43,718,835             555,208               Refundable deposits 30,120,466       138,434,078           142,411,423           26,143,121          Due to special assessment holders   164,676             2,420                       1,232                        165,864                  Total liabilities 38,694,255$       1,538,928,842$        1,543,434,142$        34,188,955$         See accompanying independent auditors' report    COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 Pine Ridge and Naples Production Park Agency Fund  140 Component Units COLLIER  COUNTY  HOUSING  FINANCE  AUTHORITY  – The  authority was  established  for  the  purpose of stimulating the construction of residential housing for low and moderate income  families through the use of public financing.   COLLIER  COUNTY  HEALTH  FACILITIES  AUTHORITY  – The  authority  was  established  for  the  purpose of assisting health facilities in the acquisition, construction and financing of projects  within the County.   COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY – The authority was established for  the  purpose  of  facilitating  projects  that  promote  economic  growth  and  opportunities  for  employment in Collier County.   COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY – The authority was established for the  purpose of assisting institutions of higher education in the construction, financing and refinancing  of projects.   Industrial Health Housing Educational Development Facilities Finance Facilities Authority Authority Authority Authority Total Cash and investments   21,687$              26,648$              119,636$            44,745$              212,716$            Total assets  21,687$             26,648$             119,636$           44,745$              212,716$           NET POSITION  Net position ‐ unrestricted  21,687$              26,648$              119,636$            44,745$              212,716$            Total Net Position  21,687$             26,648$             119,636$           44,745$              212,716$           See accompanying independent auditors' report  ASSETS  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS SEPTEMBER 30, 2017 142 Net (Expense) Revenue and Changes Program Revenues in Net Position Fees, Fines and Governmental Expenses Charges for Services Activities Industrial Development Authority  2,850$                         2,550$                                  (300)$                                    Health Facilities Authority  62,734                          50                                          (62,684)                                Housing Finance Authority 3,911                           50                                          (3,861)                                  Educational Facilities Authority 12,850                         50                                          (12,800)                                Total 82,345$                      2,700$                                 (79,645)                               General revenues: Interest income 73                                           Total general revenues 73                                         Change in net position (79,572)                                Net position ‐ beginning 292,288                               Net position ‐ ending 212,716$                             See accompanying independent auditors' report  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 Functions/Programs COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS 143 THIS PAGE INTENTIONALLY LEFT BLANK  Other Supplemental Information Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill.  Amount Amount Received Expended in the in the 2017 2017 Source Fiscal Year Fiscal Year British Petroleum:      Gulf Seafood and Tourism Promotional Fund ‐$             ‐$               Note:  This schedule does not include funds related to the Deepwater Horizon Oil Spill that  are considered  Federal awards or State financial assistance.  The Schedule of Expenditures of  Federal Awards and State Financial Assistance does not include any expenditures of Federal  awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2017  fiscal year. OTHER SUPPLEMENTAL INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 146 STATISTICAL SECTION (UNAUDITED) Sources:  Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant  year.  The County implemented GASB 34 for fiscal year 2002.  Schedules presenting government‐wide information include information beginning  in that fiscal year.  Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may  present non‐accounting data. These schedules reflect social and economic data, and financial trends of Collier County,  Florida.   CONTENTS PAGE  FINANCIAL TRENDS  These schedules contain trend information to help the reader understand how the government’s  financial performance and wellbeing have changed over time.  Net position by component    148  Change in net position    150  Governmental activities tax revenues by source    152  Fund balances of governmental funds    153  Changes in fund balance of governmental funds    154  REVENUE CAPACITY  These schedules contain information to help the reader assess the County’s most significant local  revenue source, the Property Tax.  Assessed value and estimated actual value of taxable property    156  Property tax rates – All direct and overlapping governments  157  Principal tax payers County‐wide    158  Property tax levies and collections    159  DEBT CAPACITY  These schedules present information to help the reader assess the affordability of the County’s current  levels of outstanding debt and the County’s ability to issue additional debt in the future.  Ratios of outstanding debt by type 160  Legal debt margin information 161  Direct, overlapping and underlying governmental activities debt 161  Pledged‐revenue coverage 162  DEMOGRAPHIC AND ECONOMIC INFORMATION   These schedules offer demographic and economic indicators to help the reader understand the   environment within which the County’s financial activities take place.   Demographic and economic statistics 163  Principal employers 164  OPERATING INFORMATION   These schedules contain service and infrastructure data to help the reader understand how the   information in the County’s financial report relates to the services the County provides and the  activities it performs.  Budgeted full‐time equivalent County employees by function 165  Operating indicators by function 166  Capital Asset statistics by function/program 167  2017 2016 2015 2014 2013 2012 Governmental Activities:   Net investment in capital assets 1,257,685$    1,225,520$   1,217,176$   1,207,751$   1,198,971$   1,187,298$      Restricted 336,922          327,968       298,360       223,526       221,501       226,934            Unrestricted (24,011)          2,478            13,109         169,633       152,790       147,188          Total governmental activities net position 1,570,596$    1,555,966$   1,528,645$   1,600,910$   1,573,262$   1,561,420$    Business‐type Activities:   Net investment in capital assets 741,912$        723,000$       714,239$       705,065$       668,160$       650,684$          Restricted 32,619            35,760         31,511         29,749         34,379         34,199              Unrestricted 168,602         169,287       165,128       185,420       196,050       194,389          Total business‐type activities net position 943,133$        928,047$       910,878$       920,234$       898,589$       879,272$        Primary Government:   Net investment in capital assets 1,999,597$    1,948,520$   1,931,415$   1,912,816$   1,867,131$   1,837,982$      Restricted 369,541          363,728       329,871       253,275       255,880       261,133            Unrestricted 144,591         171,765       178,237       355,053       348,840       341,577          Total primary government net position 2,513,729$    2,484,013$   2,439,523$   2,521,144$   2,471,851$   2,440,692$    Fiscal Year COLLIER COUNTY, FLORIDA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) (amounts expressed in thousands) (unaudited) 148 2011 2010 2009 2008 1,172,121$    1,169,052$    1,131,617$    1,032,553$    253,977          232,571          240,247          295,012          147,080          189,911          192,442          199,031          1,573,178$    1,591,534$    1,564,306$    1,526,596$    643,777$        635,702$        653,320$        658,865$        38,002            37,795            31,227            30,165            177,939          169,514          149,422          113,761          859,718$        843,011$        833,969$        802,791$        1,815,898$    1,804,754$    1,784,937$    1,691,418$    291,979          270,366          271,474          325,177          325,019          359,425          341,864          312,792          2,432,896$    2,434,545$    2,398,275$    2,329,387$    Fiscal Year 149 2017 2016 2015 2014 2013 2012 Expenses Governmental activities:    General government 108,388$        104,188$         93,644$            92,176$            95,941$            94,227$               Public safety 225,360           205,347           174,874            177,267            171,210             165,782              Transportation 75,589            70,560            70,296             71,623             69,275              73,000                Culture and recreation 51,889            49,526            45,117             41,630             41,453              42,507                Other activities 41,899            48,256            45,621             39,171             43,067              51,057                Interest on long‐term debt 11,294            12,077            12,912             12,674             16,129              16,412             Total governmental activities expenses 514,419$        489,954$         442,464$         434,541$         437,075$          442,985$          Business‐type activities:    Water and Sewer 144,850$         130,792$          122,858$          112,643$          114,041$           102,642$             Solid Waste 43,664            39,271            36,411             33,787             32,760              29,618                Emergency Medical Services 28,644            26,529            24,094             23,208             21,545              21,792                Airport Authority 4,905              4,402               4,771               3,764               4,439                 4,601                   Mass Transit 11,354            11,333            10,416             10,306             10,111              9,925                Total business‐type activities expenses 233,417          212,327          198,550           183,708           182,896            168,578           Total primary government expenses 747,836$        702,281$         641,014$         618,249$         619,971$          611,563$          Program Revenues Governmental activities:  Charges for services:    General government 33,377$           35,184$           34,240$            34,662$            36,080$            31,388$               Public safety 24,240             25,276             25,227              21,765              19,735               16,743                Transportation 2,024              4,880               1,094               959  1,045                 880    Culture and recreation 8,192              8,393               8,685               7,943               8,416                 9,126                   Other activities 1,467              1,230               4,237               2,661               3,667                 4,941                Operating Grants and Contributions 26,539            26,387            35,521             31,444             20,921              22,892             Capital Grants and Contributions 38,124            36,818            29,986             28,945             28,280              20,279             Total governmental activities program revenues 133,963          138,168          138,990           128,379           118,144            106,249           Business‐type activities:  Charges for services:    Water and Sewer 135,045           123,856           116,645            107,924            109,176             103,042              Solid Waste 45,209            41,918            39,121             35,368             34,585              34,275                Emergency Medical Services 11,812            13,161            12,327             9,922               10,335              10,249                Airport Authority 3,734              3,073               3,350               2,589               3,021                 2,805                   Mass Transit 1,267              1,225               1,719               1,641               1,450                 1,360                Operating Grants and Contributions 5,025              4,435               5,142               3,077               3,914                 2,948                Capital Grants and Contributions 26,993            25,367            21,165             30,662             24,953              17,818             Total business‐type activities program revenues 229,085          213,035          199,469           191,183           187,434            172,497           Total primary government program revenues 363,048          351,203          338,459           319,562           305,578            278,746           Net (expense)/revenue: Governmental activities (380,456)        (351,786)         (303,474)         (306,162)         (318,931)           (336,736)          Business‐type activities (4,332)             708 919 7,475               4,538                 3,919                Total primary government net expense (384,788)$       (351,078)$       (302,555)$        (298,687)$        (314,393)$        (332,817)$        General Revenues and Other Changes in Net Position Governmental Activities:    Taxes:       Property taxes 312,633$        281,136$         259,779$         244,404$         249,352$          248,232$                Gas taxes 21,799             20,478             19,547              18,556              18,229               18,525                   Sales taxes 41,799             40,659             38,573              35,786              32,168               29,713                   Tourist taxes 21,961            21,838            21,188             19,137             16,183              14,898                   Other taxes 7,478              7,280               7,322               7,840               9,403                 9,997                   State revenue sharing 11,602            11,100            10,589             9,657               8,792                 8,233                   Interest income 3,574              4,891               5,069               2,599               1,496                 2,430                   Miscellaneous 9,714              5,976               17,510             13,333             9,063                 7,397                   Special item ‐ registry bond ‐‐ ‐‐ ‐  ‐     Transfers, net (14,793)           (14,250)           (14,192)            (13,185)            (13,912)             (14,447)            Total governmental activities 415,767$        379,108$         365,385$         338,127$         330,774$          324,978           Business‐type Activities:    Interest income 1,379              2,011               2,209               1,301               712 1,106                   Miscellaneous 126                  200 94 68 154 82    Transfers, net 14,793            14,250            14,192             13,184             13,912              14,447             Total business‐type activities 16,298            16,461            16,495             14,553             14,778              15,635             Total primary government 432,065$        395,569$         381,880$         352,680$         345,552$          340,613$          Change in Net Position Governmental activities 35,311$           27,322$           61,911$            31,965$            11,843$            (11,758)$           Business‐type activities 11,966            17,169            17,414             22,028             19,316              19,554             Total primary government 47,277$           44,491$           79,325$            53,993$            31,159$            7,796$              Fiscal Year (unaudited) COLLIER COUNTY, FLORIDA CHANGE IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) (amounts expressed in thousands) 150 2011 2010 2009 2008 103,045$          100,483$          113,906$          112,720$          173,286             179,276             182,962           183,288             81,383               76,603               64,601             65,980               44,205               46,871               45,727             43,435               39,991               40,937               45,367             49,135               19,797               19,475               20,492             21,446               461,707$          463,645$          473,055$          476,004$          104,333$          103,272$          90,042$            85,503$             28,000               27,416               30,774             30,024               22,657               23,073               22,478             22,935               4,458                 4,382                 3,895                5,082                 10,187               9,617                 8,974                9,419                 169,635             167,760             156,163           152,963             631,342$          631,405$          629,218$          628,967$          33,919$             29,281$             32,257$            36,468$             15,554               16,385               11,940             12,545               715                     829                     3,101                3,936                 9,093                 8,267                 9,830                8,429                 2,296                 1,557                 1,620                7,541                 19,503               31,884               21,948             20,202               19,347               25,762               24,867             52,303               100,427             113,965             105,563           141,424             105,858             101,062             104,927           100,030             33,769               33,568               32,922             36,495               8,980                 10,759               9,114                8,941                 2,938                 2,519                 2,353                3,547                 1,290                 1,145                 1,101                1,074                 4,378                 4,448                 3,235                4,393                 14,307               10,385               18,147             23,333               171,520             163,886             171,799           177,813             271,947             277,851             277,362           319,237             (361,280)           (349,680)           (367,492)          (334,580)           1,885                 (3,874)                15,636             24,850               (359,395)$         (353,554)$         (351,856)$        (309,730)$         261,630$          299,389$          313,290$          327,245$          18,311               18,415               18,456             18,860               28,364               26,927               26,779             30,004               13,884               12,857               12,345             14,796               10,155               10,039               12,241             4,051                 8,310                 7,854                 7,927                8,976                 3,888                 4,665                 11,455             33,730               11,498               8,022                 12,066             10,642               ‐                          ‐                           3,239                (3,288)                (13,117)              (11,259)              (12,596)            (28,348)              342,923             376,909             405,202           416,668             1,609                 1,569                 2,395                5,716                 96                       88                       551                   77                       13,117               11,259               12,596             28,348               14,822               12,916               15,542             34,141               357,745$          389,825$          420,744$          450,809$          (18,357)$           27,229$             37,710$            82,088$             16,707               9,042                 31,178             58,991               (1,650)$              36,271$             68,888$            141,079$          Fiscal Year 151 Fiscal Property Gas Sales Tourist Other Year Tax Tax Tax Tax Taxes (1) Total 2008 327,245$          18,860$      30,004$      14,796$       4,051$       394,956$         2009 313,290             18,456         26,779       12,345        12,241      383,111            2010 299,389             18,415         26,927       12,857        10,039      367,627            2011 261,630             18,311         28,364       13,884        10,155      332,344            2012 248,232             18,525         29,713       14,898        9,997        321,365            2013 249,352             18,229         32,168       16,183        9,403        325,335            2014 244,404             18,556         35,786       19,137        7,840        325,723            2015 259,779             19,547         38,573       21,188        7,322        346,409            2016 281,136             20,478         40,659       21,838        7,280        371,391            2017 312,633             21,799         41,799       21,961        7,478        405,670             (1) Pursuant to the Uniform Accounting System direction from the State of Florida, the Communications Services Tax  was shown with fees, fines and charges for services for fiscal years prior to 2009.  This tax is no longer included  beginning in 2009.  COLLIER COUNTY, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (amounts expressed in thousands) (unaudited) 152 2009 2008 General fund    Reserved 8,962$       6,602$           Unreserved 38,924        61,953       Total general fund 47,886$     68,555$     All other governmental funds    Reserved 105,991$   142,728$      Unreserved, reported in:        Special revenue funds 114,208     128,966           Debt service funds 1,587         1,951                Capital projects funds 140,544     160,736    Total all other governmental funds 362,330$   434,381$   2017 2016 2015 2014 2013 2012 2011 2010 General fund (1)    Nonspendable 3,386$        3,675$        3,546$        19,843$    15,744$    12,914$    11,805$    9,460$            Restricted 2,440          264             345           125           96             110           ‐                ‐                      Committed ‐                  ‐                  ‐                ‐                ‐                ‐                ‐                ‐                      Assigned 1,598          1,674          1,299        850           813           952            1,114        2,182              Unassigned 54,805        53,961        55,002      57,781      56,497      57,091      54,459      59,705         Total general fund 62,229$     59,574$     60,192$    78,599$    73,150$    71,067$    67,378$    71,347$      All other governmental funds    Nonspendable 2,385$        3,055$        3,112$        53,544$    46,049$    ‐$               ‐$                 107,626$       Restricted 328,447     324,334     293,281   242,981   223,700   209,352   229,546   232,699         Committed 32,759        26,069        25,663      27,349      29,810      47,406      48,445      48,764            Assigned 33,822        28,644        30,800      28,391      36,364      80,771      79,556      34,215            Unassigned ‐                   (89)               (514)           (62,085)    (55,212)    (48,944)    (40,258)    23,192         Total all other governmental funds 397,413$   382,013$   352,342$  290,180$  280,711$  288,585$  317,289$  446,496$           As part of the implementation, the governmental fund balances for Fiscal Year 2010 were re‐classified. (unaudited) Fiscal Year (1)  In Fiscal Year 2011, the County implemented GASB 54 under which governmental fund balances are reported as nonspendable, restricted, committed, assigned and  unassigned.   COLLIER COUNTY, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) (amounts expressed in thousands) 153 2017 2016 2015 2014 2013 2012 Revenues: Taxes 355,885$      322,915$     300,341$     282,315$     285,765$     284,124$       Licenses, permits and impact fees 59,217          61,033        51,319        40,631        35,168        30,436           Intergovernmental 86,656          83,949        92,818        89,392        83,667        79,402           Charges for services 34,008          38,362        37,172        35,149        32,435        30,739           Fines and forfeitures 2,263             2,708           2,866           3,252           3,712            4,205              Interest income 3,233             4,440           4,606           2,393           1,406            2,197              Special assessments 4,350             3,746           3,132           2,922           2,924            3,035              Miscellaneous 8,705             6,600           16,063        11,553        4,833            4,664              Total revenues 554,317        523,753      508,317      467,607      449,910      438,802         Expenditures: Current:    General government 89,193          84,599        78,147        73,739        75,725        73,812              Public safety 197,762        177,375      167,788      163,169      153,566      151,858            Physical environment 12,465          15,283        16,157        11,276        13,790        22,870              Transportation 41,003          36,011        36,992        38,789        37,170        42,176              Economic environment 8,199             11,061        9,159           9,265           14,436        14,393              Human services 15,058          14,038        13,151        12,367        12,254        10,988              Culture and recreation 42,889          40,886        37,523        34,114        33,744        34,253           Debt service:    Principal 21,439          20,743        20,039        18,510        25,125        31,602              Interest 11,908          12,713        13,555        14,177        17,565        18,149              Redemption of debt 5,588             ‐‐‐‐ ‐    Payment to refunding bond escrow ‐‐‐ 2,086           132               ‐    Other fiscal charges 48 19                21                173              2,165            1,082              Capital outlay 80,495          67,198        62,186        63,613        61,278        49,406               Total expenditures 526,047        479,926      454,718      441,278      446,950      450,589              Excess (deficit) of revenues         over (under) expenditures 28,270          43,827        53,599        26,329        2,960            (11,787)          Other financing sources (uses):  Bonds issued ‐$‐$‐$89,780$       73,805$       131,525$        Notes issued 5,293             ‐‐‐‐ ‐  Premiums on bonds issued ‐‐‐‐ 2,082            17,192            Payment to refunding escrow ‐‐‐ (89,622)       (73,747)       (150,550)         Capital leases ‐‐ 1,915           ‐236                  Loans issued ‐‐‐‐‐  Sale of capital assets 155               306              595              314              233               313                  Insurance proceeds 339               796              379              316              300               270                  Transfers in 117,833        121,654      196,026      97,854        90,637        91,524            Transfers out (133,834)       (137,530)     (208,760)     (110,052)     (102,061)     (103,738)            Total other financing sources (uses)(10,214)         (14,774)       (9,845)         (11,410)       (8,751)         (13,228)          Special item ‐ registry bond ‐‐‐‐‐ ‐ Net change in fund balances 18,056$        29,053$       43,754$       14,919$       (5,791)$        (25,015)$        Debt service as a percentage of noncapital    expenditures 7.50% 8.11% 8.56% 9.25% 11.66% 12.67% Fiscal Year COLLIER COUNTY, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) (amounts expressed in thousands) 154 2011 2010 2009 2008 296,640$      333,554$      348,780$      357,656$       23,695          28,920          25,950          54,052           74,453          86,445          69,883          77,452           27,855          27,122          35,928          40,699           3,882             5,730             5,916             3,786              3,602             4,306             11,256          33,580           2,725             2,848             2,853             2,942              10,565          6,380             11,344          10,667           443,417        495,305        511,910        580,834         79,499          82,409          95,689          96,898           160,890        165,017        168,592        175,743         14,251          9,974             10,608          9,314              50,741          43,677          41,171          48,253           7,841             11,122          12,125          12,619           13,075          12,116          11,277          12,855           35,745          37,569          37,212          36,456           36,493          34,274          48,085          43,080           20,933          20,340          21,498          21,816           ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 434                891                116                165                38,726          69,809          176,681        285,809         458,628        487,198        623,054        743,008         (15,211)         8,107              (111,144)       (162,174)        24,620$        59,895$        13,244$        6,215$           ‐ ‐ ‐ ‐ 2,050             844                ‐ 31 (26,593)         (59,893)         ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐  13,500          69,391           70 248                301                245                384                310                753                208                107,167        105,394        143,275        144,824         (118,037)       (114,905)       (155,888)       (163,075)        (10,339)         (8,107)           15,185          57,839           ‐ ‐  3,239             (3,288)            (25,550)$       ‐$  (92,720)$       (107,623)$      13.78% 13.30% 15.61% 14.23% Fiscal Year 155 Total Estimated Assessed  Fiscal Year Centrally Less: Total Taxable Direct Actual Value as a Ended Residential Personal Assessed Tax Assessed Tax Taxable Percentage of  September 30 Property Property Property Exempt Value Rate Value Actual Value 1 2008 88,819,491$      2,321,048$    226$                8,575,874$   82,564,891$            4.1064 91,140,765$    100% 2009 86,949,935         2,430,996      202                  10,718,166  78,662,967             4.1246 89,381,133       100% 2010 77,359,174         2,444,323      202                  9,826,950    69,976,749             4.4236 79,803,699       100% 2011 67,947,039         2,259,654      171                  8,770,667    61,436,197             4.4151 70,206,864       100% 2012 64,464,592         2,248,702      187                  8,510,911    58,202,570             4.4149 66,713,481       100% 2013 64,723,621         2,240,098      184                  8,471,142    58,492,761             4.4126 66,963,903       100% 2014 66,977,907         2,198,734      152                  8,539,021    60,637,772             4.1592 69,176,793       100% 2015 71,149,974         2,186,145      195                  8,739,269    64,597,045             4.1582 73,336,314       100% 2016 76,970,360         2,353,841      134                  9,235,508    70,088,827             4.1572 79,324,335       100% 2017 91,067,675         2,448,008      246                  9,905,936    83,609,993             4.1562 93,515,929       100% Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1 Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year. 1The basis of assessed value required by the state is 100% of actual value  including tax exemptions. Source: Property Appraiser Recapitulation Report   COLLIER COUNTY, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (amounts expressed in thousands) (unaudited) 156 Collier County Special Debt County Fiscal General Revenue Service School Independent Year Fund Funds Funds Total District Districts Total 2008 3.1469 0.7362         0.2233     4.1064      5.3510 1.2792 10.7366        2009 3.1469 0.7528         0.2249     4.1246      4.9090 1.2784 10.3120        2010 3.5645 0.7225         0.1366     4.4236      5.2390 1.3243 10.9869        2011 3.5645 0.6926         0.1580     4.4151      5.6990 1.3299 11.4440        2012 3.5645 0.7627         0.0877     4.4149      5.5270 1.2202 11.1621        2013 3.5645 0.7555         0.0926     4.4126      5.5760 1.2395 11.2281        2014 3.5645 0.5873         0.0074       4.1592        5.6900 1.2228 11.0720        2015 3.5645 0.5860         0.0077     4.1582      5.5800 1.1853 10.9235        2016 3.5645 0.5856         0.0071     4.1572      5.4800 1.1331 10.7703        2017 3.5645 0.6030         0.0293     4.1968      5.1220 1.1832 10.5020        Sources:   Property Appraiser Recapitulation Report   Collier County Adopted Budget Basis for property tax rates is 1 mill per $1,000 of assessed value.  Property is assessed as of January 1 and taxes  based on those assessments are levied according to the tax rate in effect that tax year and become due on  November 1.  Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year  ending during the following calendar year. Other COLLIER COUNTY, FLORIDA PROPERTY TAX RATES ‐ ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS (unaudited) 157 Property Percent of Property Percent of Taxes Total Taxes Total              Owner/Taxpayer Levied Rank Taxes Levied Levied Rank Taxes Levied Florida Power & Light Company 2,793,975$             1 0.29%2,417,987$           1 0.26% HHR Naples LLC 1,847,154               2 0.19%1,665,595             2 0.19% The Moorings, Inc.1,262,515                3 0.13%765,781                  9 0.09% Marco Hotel, LLC 1,187,242                4 0.12%‐ ‐  PR Mercato LLP 1,156,071                5 0.12%‐ ‐  CC‐Naples Inc 954,948 6 0.10%953,906                  5 ‐  Lee County Electric Co‐Op, Inc.882,758 7 0.09%‐ ‐  Coastland Center, LLC 727,790 8 0.08%923,227                7 ‐ Wal‐Mart Stores East LP 723,006 9 0.08%680,599                10 ‐ Randall D. Bellestri Liv Trust 683,200 10 0.07%‐ ‐ Century Link ‐‐                  1,299,028             3 0.15% City National Bank of Miami ‐‐                  983,659                4 0.12% Collier HMA, Inc.‐‐                  952,328                6 0.00% Naples HMA, Inc.‐‐                  920,995                8 0.00% Total 12,218,657$           1.27%11,563,105$         0.80% Total Property Taxes Levied 953,364,493$         922,849,721$        Amounts for taxpayers with similar names have not been combined.   Source: Property Appraiser's taxpayer listing in order of taxes levied. Property Appraiser Recapitulation Report. Both documents requested from Vicky Downs, Property appraiser … vdowns@collierappraiser.com 2017 2008 COLLIER COUNTY, FLORIDA PRINCIPAL TAXPAYERS COUNTY‐WIDE 2017 TAX ROLL (unaudited) 158 Fiscal Year Total Tax Ended Levy for Collections in September 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy 2008 343,906$           325,722$            94.7% 1,191$                          326,913$          95.1% 2009 329,070              312,096              94.8%2,546                             314,642            95.6% 2010 314,176              297,953              94.8%1,355                             299,308            95.3% 2011 275,704              260,961              94.7% 482                                261,443            94.8% 2012 261,137              247,749              94.9% 542                                248,291            95.1% 2013 262,037              248,648              94.9%1,197                             249,845            95.3% 2014 255,354              243,137              95.2% 615                                243,752            95.5% 2015 271,893              259,121              95.3% 78                                  259,199            95.3% 2016 295,304              281,138              95.2% ‐                                      281,138            95.2% 2017 328,706              312,557              95.1% ‐                                      312,557            95.1% Source: Tax Collector Annual Report Fiscal Year of the Levy Total Collections to Date COLLIER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (amounts expressed in thousands) Collected within the (unaudited) 159 Limited  General Loans and Loans and Total Percentage Fiscal Obligation Revenue Notes Capital Revenue Notes Capital Primary of Personal Per Year Bonds Bonds Payable Leases Bonds Payable Leases Government Income1 Capita1 2008 29,100$    409,043$  103,461$  752$          158,709$  103,903$  618$          805,586$      4.48% 2,522$      2009 37,700      392,124   89,590     599            153,973    106,935   492            781,413        3.94% 2,442         2010 29,854      435,590   19,690     439            148,782    106,509   636            741,500        3.76% 2,302         2011 14,684      415,855   16,914     269            143,992   99,517     387            691,618        3.62% 2,126         2012 9,994         391,123   9,686        412            138,983   92,438     175            642,811        3.31% 1,914         2013 4,664         373,862   7,432        323            106,565    111,787   40              604,673        3.01% 1,794         2014 4,223         367,665   7,081        230            95,570      113,013   1,222         589,004        2.67% 1,732         2015 3,369         348,278   6,401         1,519         89,690      104,475   1,074         554,806        2.26% 1,669         2016 2,941         327,650   5,845        937            84,681     95,707     1,247         519,008        2.01% 1,577         2017 2,499         306,302   5,072        316            80,176     87,519     865            482,749        1.57% 1,320         1See the Schedule of Demographic and Economic Statistics for personal income and population data. Governmental Activities Business‐type Activities COLLIER COUNTY, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (amounts expressed in thousands) (unaudited) 160 The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Estimated Estimated Percentage  Share of  Debt Applicable Based Overlapping Outstanding on Population (1) Debt Direct Debt (2):  Limited General Obligation Bonds  2,499,190$            100.00% 2,499,190$             Gas Tax Bonds (3) 96,800,405           100.00%96,800,405             Special Obligation Bonds (3) 209,501,809         100.00%209,501,809           Capital Leases (3) 315,801                 100.00% 315,801                  Notes Payable (3) 5,072,089              100.00% 5,072,089                Subtotal, Direct Debt 314,189,294         314,189,294          Overlapping Debt:   N/A ‐0.00%‐ Underlying Debt:  City of Naples (4)6,986,000             6.05%422,653                  City of Marco Island (5)9,780,866             4.95%484,153                  City of Everglades (6)‐0.11%‐   Subtotal, Underlying Debt 16,766,866          906,806                 Total Direct, Overlapping and Underlying Debt 330,956,160$       315,096,100$        (1) Population numbers obtained from www.florida‐demographics.com/cities_by_population. (2) Outstanding debt amounts do not include bond premiums. (3) Totals consist of more than one issuance. (4) Governmental activities debt outstanding amount obtained from the City of Naples. (5) Governmental activities debt outstanding amount obtained from the City of Marco Island. (6) Governmental activities debt outstanding amount obtained from the City of Everglades. (unaudited) (unaudited) COLLIER COUNTY, FLORIDA DIRECT, OVERLAPPING AND UNDERLYING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2017  LEGAL DEBT MARGIN INFORMATION AS OF SEPTEMBER 30, 2017 161 Legally Gas Available Fiscal Tax Non‐Ad Valorem Year Collections Principal Interest Coverage Collections(5) Principal Interest Coverage 2008 18,860$                 6,490$                   8,089$                  1.29 ‐$‐$‐$   N/A 2009 18,456                  6,660 7,922 1.27 ‐‐‐  N/A 2010 18,415                  6,935 7,645 1.26 ‐‐‐  N/A 2011 18,312                  7,185 7,399 1.26 76,416                1,545 2,597  18.45 2012 18,525                  7,505 7,077 1.27 82,866                4,265 4,265  9.71 2013 18,229                  7,855 6,453 1.27 86,640                9,695 7,249  5.11 2014 18,556                  8,040 4,018 1.54 91,043                9,145 9,674  4.84 2015 19,547                  9,440 3,697 1.49 102,375              8,885 9,426  5.59 2016 20,478                  9,900 3,242 1.56 107,268              9,280 9,020  5.86 2017 21,799                  10,195                  2,939 1.66 108,577              9,705 8,591  5.93 Water/ Sewer Less:Net Fiscal Charges Operating Available Year and Other(1) Expenses(2) Revenue Principal Interest Coverage(3) 2008 105,416$              49,707$                55,709$               4,745$     7,527$                 4.54  2009 107,127                49,766                  57,361                 4,905      7,358 4.68 2010 101,830                50,893                  50,937                 5,274      6,843 4.20 2011 106,839                60,107                  46,732                 4,969      6,711 4.00 2012 104,164                58,155                  46,009                 5,189      6,494 3.94 2013 105,682                68,916                  36,766                 5,422      6,268 3.15 2014 109,514                69,710                  39,804                 5,967      3,986 4.00 2015 118,066                74,344                  43,722                 6,073      3,639 4.50 2016 125,456                84,474                  40,982                 3,986      2,841 6.00 2017 136,064                97,904                  38,160                 3,902      2,818 5.68  (1) Operating revenues plus other income; certain interest income gain on disposal of assets, capital grants and contributions and transfers in are not  included. (2) Total operating expenses, excluding depreciation and amortization; loss on disposal of assets, interest expense and transfers out are not included. (3) Net available revenue divided by total bonded debt service requirements for the County Water and Sewer District. (4) Special Obligation Bonds were first issued in FY‐2010, debt service payments commenced in FY‐2011. (5) The revenues that comprise the legally available non‐ad valorem revenues are defined by bond documents; these revenues include Sales Tax and  certain impact fees.  COLLIER COUNTY, FLORIDA PLEDGED‐REVENUE COVERAGE Debt Service Gas Tax Bonds Debt Service Special Obligation Bonds(4) LAST TEN FISCAL YEARS (amounts expressed in thousands) (unaudited) Governmental Activities: Debt Service Business‐type Activities: Water and Sewer Revenue Bonds 162 Per Capita Fiscal Personal Personal Median School Unemployment Year Population(1) Income(2) Income(3) Age(4) Enrollment(5) Rate(6) 2008 332,854                17,990,169,000$        57,446$         44.8            42,721                   5.5% 2009 333,032                19,846,737,000          63,276           45.1            42,534                   10.0% 2010 331,800                19,739,453,000          62,559           45.2            42,716                   12.2% 2011 321,520                19,127,928,000          60,049           45.9            42,921                   11.4% 2012 323,785                19,446,631,000          59,264           46.9            43,238                   9.3% 2013 329,849                20,075,468,000          60,391           47.1            43,789                   7.2% 2014 339,642                22,033,344,000          64,872           47.4            44,415                   6.3% 2015 348,777                24,571,667,000          73,869           47.5            45,228                   5.2% 2016 353,936                25,763,656,000          78,473           47.9            47,289                   4.9% 2017 360,846                30,708,249,000          84,101           48.5            49,394                   3.6% Sources: (1)www.colliergov.net/your-government/divisions-a-e/comprehensive-planning/population-and-demographi (2)https://fred.stlouisfed.org/series/PI12021 (3)https://fred.stlouisfed.org/series/PCPI12021 (4)https://fred.stlouisfed.org/series/B01002001E012021 (5)www.collierschools.com/Page/349 (6)www.floridajobs.org (unaudited) COLLIER COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS 163 Percent of Percent of Total County Total County Employer Employees Rank Employment Employees Rank Employment Collier County Public Schools 5,523 1 3.86%6,685 1 5.59% NCH Healthcare System 4,315 2 3.02%3,007 2 2.52% Collier County Government (excl. Sheriff)2,270 3 1.59%2,984 3 2.50% Arthex, Inc 2,250 4 1.57%‐ ‐ Collier County Sheriff's Office 1,405 5 0.98%1,273 6 1.07% Publix Supermarkets 1,247 6 0.87%2,214                   4 1.85% Ritz Carlton Hotel 1,100 7 0.77%‐ ‐ Seminole Casino ‐ Immokalee 1,000 8 0.70%‐‐ JW Marriott ‐ Marco Island 870  9 0.61%743  7 0.62% Naples Grande Beach Resort (1)235 10 0.16%605 9 0.51% Other employers 122,901               85.88%101,978              85.35%  Totals 143,116               100.00%119,489              100.00% (1) The Naples Grande Beach Resort property has also operated as the Registry Resort and the Waldorf Astoria Naples in recent years. Sources: Southwest Florida Economic Development Alliance Collier County Public Schools NCH Healthcare System Publix Corporate Office Arthrex, Inc. 2016 Collier County Budget Book COLLIER COUNTY, FLORIDA PRINCIPAL EMPLOYERS (unaudited) 2017 2008 164 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 Function: General government 1,351        1,262         1,217       1,216      1,203      1,222      1,219      1,252         1,342         1,398       Public safety 1,112       1,124         1,096      1,072      1,061      1,061      1,062      1,053         1,064         1,085       Physical environment 73             70             69           67           67           69           66           66              69            74            Transportation 219            211            192         187         187         199         213         234            257          281          Economic environment 29             26             27           28           26           28           27           22              22            20            Human services 58             56             56           53           51           50           50           54              55            56            Culture and recreation 324            304            298         294         289         293         293         308            328          363          Water and Sewer 410            384            342         340         342         344         344         335            335          358          Solid Waste 31             28             27           28           29           27           27           27              27            27            Emergency Medical Services 194           193            193         172         172         172         172         183            185          201          Airport Authority 15             15             14           14           16           16           16           16              16            15            Collier Area Transit 4                 4                 3              3              3              3              1              1                 1               1               Total 3,820       3,677         3,534      3,474      3,446      3,484      3,490      3,551         3,701         3,879       (1) Includes the Board of County Commissioners and the Constitutional Officers COLLIER COUNTY, FLORIDA BUDGETED FULL‐TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1) LAST TEN FISCAL YEARS (unaudited) Fiscal Year 165 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 Function: Police: Physical arrests 8,269         9,359         9,347       11,277     11,277     11,297     20,180     13,310       15,671       20,226      Parking violations 1,068         867             931           964            1,182       1,175       1,479       1,283         1,297         843            Traffic violations 15,473       14,462       16,355     19,868     22,211     19,237     19,680     22,051       28,308       49,831      Fire: Fires reported **31               82             37             52             46             468           498             533            586            Emergency responses (exclude fires) **839              1,093       1,080       1,024       764           569           825             760            756            Number of calls answered 795 870              1,175       1,117       1,076       810            1,037       1,323         1,293         1,342        Transportation: Collier Area Transit ridership 996,687      1,082,519  1,177,029 1,181,530 1,361,294 1,207,866 1,154,702 1,064,910  1,109,710  1,166,358 Street resurfacing (lane miles)38               34               34             80             78             142           131           85               97              52              Culture and recreation: Beach parking stickers issued 149,490     139,828     134,051   181,878   122,415   114,778   312,144   98,093        132,218     80,542      Library circulation 2,193,351  2,349,418  2,302,017 2,578,588 2,578,589 2,768,648 2,760,427 2,969,238  3,034,439  3,000,394 Water: New connections 1,951         2,023         2,204       1,878       1,417       1,189       921           909             704            553            Wastewater: Average daily sewage treatment 18,555       17,864       17,090     17,150     16,954     15,834     14,747     14,326       13,769       15,558         (millions of gallons) ** ‐ Due to the consolidation of Fire Districts, this information is no longer being tracked. Sources: Police‐Collier County Sheriff's Department Fire‐Collier County Bureau of Emergency Services, Greater Naples Fire District Transportation‐Collier County Alternative Transportation , Road and Bridge Culture and Recreation‐Collier County Parks and Recreation, Public Library Water‐Collier County Utility Billing Wastewater‐Collier County Wastewater COLLIER COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS (unaudited) Fiscal Year 166 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 Function: Public Safety:    Police stations 7                7               7              7              7              7              7               7                7               7                 Patrol units 270           274          276         276         275         275         275          275           275          275         Fire:    Fire stations 4                4               4              4              3              3              3               3                3               2              Highways and streets:    Streets (miles)1,161        1,159      1,149     1,151     1,184     1,184     1,184      1,184        1,184       1,184         Streetlights 5,074        5,182      4,958     4,958     4,868     4,781     4,759      4,701        4,485       3,767         Traffic signals 374           365         360        370        353        297        295          283           283          224         Culture and recreation:    Parks acreage 1,521        1,521      1,521     1,521     1,521     1,520     1,511      1,473        1,473       1,440         Parks 61             61           61          61          61          61          60            59             59            56              Swimming pools 8                8               8              8              8              8              8               8                8               7                 Tennis courts 45             45           45          45          45          45          45            45             45            45              Community centers 9                9               9              8              8              8              8               8                8               8                 Libraries 10             10           10          10          10          10          10            10             10           9                 Number of volumes in libraries 557,188    567,248    605,408  683,237  692,229  673,131  741,389  797,823    797,978   647,484  Water:    Number of customers 66,010      61,830      59,443    57,548    55,878    54,190    53,181    51,796      51,499     51,136       Water mains (miles)1,067        1,015      986        925        888        888        886          886           886          870            Maximum daily capacity (per million gallons)  32,243      33,877      31,376    30,460    30,120    29,988    29,616    28,368      33,340     30,956    Wastewater:    Sanitary sewers (miles)1,085        1,021      1,028     1,030     1,081     1,116     1,115      1,095        1,081       1,053         Primary and secondary drainage facilities  289           294         306        306        305        305        303          303           303          303            Police‐Collier County Sheriff's Department Fire‐Collier County Bureau of Emergency Services Highway and Streets‐Collier County Traffic Operations, Transportation Engineering, Road and Bridge Culture and Recreation‐Collier County Public Library, Parks and Recreation Water‐Collier County Water, Utility Billing Wastewater‐Collier County Stormwater, Wastewater COLLIER COUNTY, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS (unaudited) Fiscal Year 167 THIS PAGE INTENTIONALLY LEFT BLANK    SINGLE AUDIT/FEDERAL AND STATE  SCHEDULE OF FINANCIAL ASSISTANCE     The Single Audit/Federal and State schedule of financial assistance section presents Grants  compliance reports filed by Collier County with Federal government and State government,  respectively.     THIS PAGE INTENTIONALLY LEFT BLANK  CliftonLarsonAllen LLP CLAconnect.com   INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated March 16, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 171 Honorable Board of County Commissioners Collier County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the County’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 16, 2018 172 CliftonLarsonAllen LLP CLAconnect.com   INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project We have audited Collier County, Florida’s (County) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the requirements described in the State of Florida Department of Financial Services’ State Projects Compliance Supplement that could have a direct and material effect on each of the County’s major federal programs and state projects for the year ended September 30, 2017. The County’s major federal programs and state projects are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the County’s major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Auditor General Local Governmental Entity Audits. Those standards, the Uniform Guidance, and Chapter 10.550, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the County’s compliance. 173 Honorable Board of County Commissioners Collier County, Florida   Opinion on Each Major Federal Program and State Project In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2017. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and major state project and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or 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 of state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program and state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the result of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 16, 2018 174 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS Department of Agriculture Direct Programs: Rural Business‐Cooperative Service: Rural Business Development Grant 10.351 RO87213   53185 98,935$                  ‐$                             Indirect Programs: Florida Department of Agriculture and Consumer Services: Child Nutrition Cluster: Summer Food Service Program for Children 10.559 018588 82,880                    ‐                              Total Child Nutrition Cluster 82,880                    ‐                              Total Department of Agriculture 181,815                  ‐                              Department of Housing and Urban Development Direct Programs: Office of Community Planning and Development: CDBG ‐ Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants  14.218 B‐01‐UC‐12‐0016 11,643                    11,643                   Community Development Block Grants/Entitlement Grants  14.218 B‐02‐UC‐12‐0016 84,181                    84,181                   Community Development Block Grants/Entitlement Grants  14.218 B‐04‐UC‐12‐0016 7,472                      ‐                              Community Development Block Grants/Entitlement Grants  14.218 B‐05‐UC‐12‐0016 92,427                    92,427                   Community Development Block Grants/Entitlement Grants  14.218 B‐06‐UC‐12‐0016 149,001                  149,001                 Community Development Block Grants/Entitlement Grants  14.218 B‐07‐UC‐12‐0016 56,682                    56,682                   Community Development Block Grants/Entitlement Grants  14.218 B‐08‐UC‐12‐0016 88,739                    88,739                   Community Development Block Grants/Entitlement Grants  14.218 B‐08‐UN‐12‐0003 304,395                  ‐                              Community Development Block Grants/Entitlement Grants  14.218 B‐09‐UC‐12‐0016 10,679                    10,679                   Community Development Block Grants/Entitlement Grants  14.218 B‐10‐UC‐12‐0016 12,478                    12,478                   Community Development Block Grants/Entitlement Grants  14.218 B‐11‐UC‐12‐0016 100,704                  100,704                 Community Development Block Grants/Entitlement Grants  14.218 B‐11‐UN‐12‐0003 7,590                      ‐                              Community Development Block Grants/Entitlement Grants  14.218 B‐12‐UC‐12‐0016 91,505                    91,505                   Community Development Block Grants/Entitlement Grants  14.218 B‐13‐UC‐12‐0016 77,370                    68,365                   Community Development Block Grants/Entitlement Grants  14.218 B‐14‐UC‐12‐0016 126,587                  126,587                 Community Development Block Grants/Entitlement Grants  14.218 B‐15‐UC‐12‐0016 619,483                  614,063                 Community Development Block Grants/Entitlement Grants  14.218 B‐16‐UC‐12‐0016 635,776                  177,821                 Total CFDA 2,476,712               1,684,875             Total CDBG ‐ Entitlement Grants Cluster 2,476,712               1,684,875             Emergency Solutions Grant Program 14.231 E‐13‐UC‐12‐0024 19,537                    ‐                              Emergency Solutions Grant Program  14.231 E‐15‐UC‐12‐0016 83,963                    34,678                   Emergency Solutions Grant Program  14.231 E‐16‐UC‐12‐0016 147,343                  84,570                   Total CFDA 250,843                  119,248                 Shelter Plus Care 14.238 FL0394C4D061000 49,999                    49,999                   Home Investment Partnerships Program 14.239 M‐13‐UC‐12‐0217 25,161                    ‐                              Home Investment Partnerships Program 14.239 M‐14‐UC‐12‐0217 127,133                 ‐                              Home Investment Partnerships Program 14.239 M‐15‐UC‐12‐0217 157,603                 ‐                              Home Investment Partnerships Program 14.239 M‐16‐UC‐12‐0217 49,946                   ‐                              Total CFDA 359,843                 ‐                              Total Department of Housing and Urban Development 3,137,397              1,854,122             (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FEDERAL PROGRAM / STATE PROJECT FEDERAL / STATE AGENCY PASS‐THROUGH ENTITY 175 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FEDERAL PROGRAM / STATE PROJECT FEDERAL / STATE AGENCY PASS‐THROUGH ENTITY Department of the Interior Direct Programs: Office of the Secretary: Payments in Lieu of Taxes 15.226 Collier County 1,357,453$            ‐$                             Fish and Wildlife Service: National Wildlife Refuge Fund 15.659 Collier County 186,104                  ‐                              Total Department of the Interior 1,543,557               ‐                              Department of Justice Direct Programs: Office of Community Oriented Policing Services: Public Safety Partnership and Community Policing Grants 16.710 2012ULWX0008 133,902                  ‐                                Public Safety Partnership and Community Policing Grants 16.710 2013ULWX0047 105,971                  ‐                                Total CFDA 239,873                  ‐                              Criminal Division: Equitable Sharing Program  16.922 Collier County Sheriff 137,232                  ‐                              Bureau of Justice Assistance: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015‐DJ‐BX‐0731 35,682                    ‐                              Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016‐DJ‐BX‐0846 34,175                    ‐                              Indirect Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2017‐JAGC‐COLL‐1‐F9‐136 71,853                    ‐                              Total CFDA 141,710                  ‐                              Florida Department of Legal Affairs: Crime Victim Assistance 16.575 VOCA‐2016‐Collier County Sheriff's ‐00222 167,089                 ‐                              Total Department of Justice 685,904                 ‐                              Department of Transportation Direct Programs: Federal Aviation Administration (FAA): Airport Improvement Program 20.106 3‐12‐0031‐009‐2016 106,862                  ‐                                Airport Improvement Program 20.106 3‐12‐0031‐010‐2016 61,488                    ‐                                Airport Improvement Program 20.106 3‐12‐0142‐011‐2016 438,561                  ‐                                Total CFDA 606,911                  ‐                                Federal Transit Administration (FTA): Federal Transit Cluster: Federal Transit Capital Investment Grants 20.500 FL‐03‐0264‐00 1,628                     ‐                              Federal Transit Formula Grants 20.507 FL‐90‐X766‐00 21,148                   ‐                              Federal Transit Formula Grants 20.507 FL‐90‐X816‐00 79,315                   ‐                              Federal Transit Formula Grants 20.507 FL‐90‐X853‐00 912,065                 ‐                              Federal Transit Formula Grants 20.507 FL‐95‐X076‐00 114,467                 ‐                              Federal Transit Formula Grants 20.507 FL‐95‐X085‐00 84,210                   ‐                              Federal Transit Formula Grants 20.507 FL‐95‐X086‐00 31,424                   ‐                              Federal Transit Formula Grants 20.507 FL‐2016‐056‐00 335,021                 ‐                              Federal Transit Formula Grants 20.507 FL‐2017‐035‐00 1,027,504              ‐                              Federal Transit Formula Grants 20.507 FL‐2017‐044‐00 106,444                 ‐                              Federal Transit Formula Grants 20.507 1032‐2017‐2 99,230                   ‐                              Total CFDA 2,810,828              ‐                                Total Federal Transit Cluster 2,812,456              ‐                              (Continued) 176 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FEDERAL PROGRAM / STATE PROJECT FEDERAL / STATE AGENCY PASS‐THROUGH ENTITY Indirect Programs: Florida Department of Transportation: Highway Planning and Construction Cluster: Highway Planning and Construction 20.205 G0258 899,122$                ‐$                              Highway Planning and Construction 20.205 G0D41 226,000                  ‐                                Highway Planning and Construction 20.205 G0A31 260,976                  ‐                                Highway Planning and Construction 20.205 G0870 291,773                  ‐                                Highway Planning and Construction 20.205 G0B81 383,916                  ‐                                Highway Planning and Construction 20.205 G0L51 33,950                    ‐                                Highway Planning and Construction 20.205 G0L53 70,103                    ‐                                Highway Planning and Construction 20.205 G0L54 57,748                    ‐                                Highway Planning and Construction 20.205 G0L55 35,512                    ‐                                Highway Planning and Construction 20.205 G0L59 21,838                    ‐                                Highway Planning and Construction 20.205 G0B56 420,073                  ‐                                Total CFDA 2,701,011               ‐                              Total Highway Planning and Construction Cluster 2,701,011               ‐                              Metropolitan Transportation Planning and State and  Non‐Metropolitan Planning and Research 20.505 G0581 29,580                    ‐                                Formula Grants for Rural Areas 20.509 G0738 364,276                  ‐                              Transit Services Programs Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0040 252,759                  ‐                                Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0041 8,917                      ‐                                Total CFDA 261,676                  ‐                              Total Transit Services Programs Cluster 261,676                  ‐                              Total Department of Transportation 6,775,910               ‐                              U.S. Election Assistance Commission Indirect Programs: Florida Department of State: Help America Vote Act Requirements Payments 90.401 MOA # 2016‐2017‐0001‐CLL 46,975                    ‐                              Total U.S. Election Assistance Commission 46,975                    ‐                              Department of Health and Human Services Indirect Programs: Florida Department of Elder Affairs ‐ Area Agency on Aging for  Southwest Florida, Inc.: Aging Cluster: Special Programs for the Aging, Title III, Part B, Grants for  Supportive Services and Senior Centers 93.044 OAA 203.16 113,719                  ‐                              Special Programs for the Aging, Title III, Part B, Grants for  Supportive Services and Senior Centers 93.044 OAA 203.17 329,830                  ‐                              Total CFDA 443,549                  ‐                              Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.16 151,741                  ‐                              Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.17 435,183                  ‐                              Total CFDA 586,924                  ‐                              Nutrition Services Incentive Program 93.053 NSIP 203.16 14,121                    ‐                              Nutrition Services Incentive Program 93.053 OAA 203.17 33,659                    ‐                              Total CFDA 47,780                    ‐                              Total Aging Cluster 1,078,253               ‐                              (Continued) 177 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FEDERAL PROGRAM / STATE PROJECT FEDERAL / STATE AGENCY PASS‐THROUGH ENTITY National Family Caregiver Support, Title III, Part E 93.052 OAA 203.16 41,391$                 ‐$                             National Family Caregiver Support, Title III, Part E 93.052 OAA 203.17 103,616                 ‐                                Total CFDA 145,007                 ‐                                Florida Department of Revenue: Child Support Enforcement 93.563 COC11 193,410                 ‐                              Total Department of Health and Human Services 1,416,670              ‐                              Corporation for National and Community Service  Direct Programs: Retired and Senior Volunteer Program 94.002 15SRSFL015 51,380                    ‐                              Total Corporation for National and Community Service 51,380                    ‐                              Department of Homeland Security Indirect Programs: Executive Office of the Governor ‐ Florida Division of Emergency  Management: Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters)  97.036 13‐DB‐73‐09‐21‐02‐530 532,849                  ‐                              Emergency Management Performance Grants  97.042 17‐FG‐P9‐09‐21‐01‐085 94,246                    ‐                              Homeland Security Grant Program 97.067 16‐DS‐T9‐09‐21‐01‐302 76,916                    ‐                              Homeland Security Grant Program 97.067 17‐DS‐V4‐09‐21‐23‐283 180,489                  ‐                              Total CFDA 257,405                  ‐                              Total Department of Homeland Security 884,500                  ‐                              14,724,108$          1,854,122$            (Continued) TOTAL EXPENDITURES OF FEDERAL AWARDS 178 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FEDERAL PROGRAM / STATE PROJECT FEDERAL / STATE AGENCY PASS‐THROUGH ENTITY Direct Projects: Emergency Management Programs 31.063 17‐BG‐83‐09‐21‐01‐018 69,589$                  ‐$                              Emergency Management Programs 31.063 18‐BG‐W9‐09‐21‐01‐189 12,004                    ‐                                Total Florida Executive Office of the Governor 81,593                    ‐                              Direct Projects: Beach Management Funding Assistance Program 37.003 14CO1 982,846                  ‐                                Beach Management Funding Assistance Program 37.003 16CO1 28,567                    ‐                                Total CSFA 1,011,413               ‐                                Statewide Surface Water Restoration and Wastewater Projects 37.039 S0859 664,449                  ‐                                Total Florida Department of Environmental Protection 1,675,862               ‐                              Florida Housing Finance Corporation Direct Projects: 40.901 Collier County FY 2015‐2016 534,721                  ‐                                40.901 Collier County FY 2016‐2017 131,901                  ‐                                Total CSFA 666,622                  ‐                                State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2014‐2015 1,048,825              93,349                     Total Florida Housing Finance Corporation 1,715,447              93,349                     Direct Projects: State Aid to Libraries 45.030 15‐ST‐08 185,701                 ‐                                Total Florida Department of State and Secretary of State 185,701                 ‐                              Direct Projects: Florida Highway Beautification Grant Program ‐ Keep Florida  Beautiful 55.003 G0741 100,000                 ‐                              Aviation Grant Programs 55.004 AR865 52                           ‐                                Aviation Grant Programs 55.004 G0594 85,663                   ‐                                Aviation Grant Programs 55.004 G0599 106,635                 ‐                                Aviation Grant Programs 55.004 G0615 152,896                 ‐                                Aviation Grant Programs 55.004 G0E50 617,071                 ‐                                Aviation Grant Programs 55.004 G0E60 3,416                     ‐                                Aviation Grant Programs 55.004 G0E63 5,937                     ‐                                Total CSFA 971,670                 ‐                                Public Transit Block Grant Program 55.010 AQQ16 841,782                 ‐                                Public Transit Service Development Program 55.012 AQQ85 161,371                 ‐                                Public Transit Service Development Program 55.012 ARJ84 184,322                 ‐                                Public Transit Service Development Program 55.012 G0G64 27,768                   ‐                                Total CSFA 373,461                 ‐                                Transportation Regional Incentive Program (TRIP)55.026 ARF43 1,903,927              ‐                              Transportation Regional Incentive Program (TRIP)55.026 G0B39 1,812,387              ‐                              Total CSFA 3,716,314              ‐                                Alligator Alley Mile Marker 63 Fire Station 55.036 ARF81 843,730                 ‐                              (Continued) Florida Department of State and Secretary of State Florida Department of Transportation Florida Department of Environmental Protection State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) Florida Executive Office of the Governor 179 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FEDERAL PROGRAM / STATE PROJECT FEDERAL / STATE AGENCY PASS‐THROUGH ENTITY Indirect Projects: Commission for the Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G0B09 579,740$                ‐$                              Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G0M34 107,362                  ‐                                Total CSFA 687,102                  ‐                              Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G0C36 21,122                    ‐                                Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G0N23 6,419                      ‐                                Total CSFA 27,541                    ‐                              Total Florida Department of Transportation 7,561,600              ‐                                Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse  Reinvestment Grant Program 60.115 LHZ46 286,704                  263,235                 Criminal Justice, Mental Health, and Substance Abuse  Reinvestment Grant Program 60.115 LHZ54 45,929                    37,600                   Total Florida Department of Children and Families 332,633                  300,835                 Florida Department of Health Direct Projects: County Grant Awards 64.005 C5011 8,010                      ‐                              Total Florida Department of Health 8,010                      ‐                              Indirect Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly 65.001 HCE 203.16 9,263                      ‐                              Home Care for the Elderly 65.001 HCE 203.17 7,698                      ‐                              Total CSFA 16,961                    ‐                              Alzheimer's Respite Services 65.004 ADI 203.16 270,707                  ‐                                Alzheimer's Respite Services 65.004 ADI 203.17 87,757                    ‐                                Total CSFA 358,464                  ‐                              Community Care for the Elderly 65.010 CCE 203.16 636,656                  ‐                              Community Care for the Elderly 65.010 CCE 203.17 208,475                  ‐                              Total CSFA 845,131                  ‐                              Total Florida Department of Elder Affairs 1,220,556               ‐                              Florida Fish and Wildlife Conservation Commission Direct Projects: Bear Resistant Equipment 77.034 Collier County 4,529                      ‐                              Total Florida Fish and Wildlife Conservation Commission 4,529                      ‐                              TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 12,785,931$          394,184$                Florida Department of Elder Affairs 180 COLLIER COUNTY, FLORIDA  NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL  AWARDS AND STATE FINANCIAL ASSISTANCE  YEAR ENDED SEPTEMBER 30, 2017    1. Basis of Presentation  The  accompanying  Schedule  of  Expenditures  of  Federal  Awards  and State Projects (the Schedule)  includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on  the modified accrual basis of accounting for expenditures accounted for in the governmental funds and  the accrual basis of accounting for expenditures in proprietary funds.  Under the modified accrual basis,  revenue  is  recognized  if  it  is  both  measurable  and  available  for  use  during  the  fiscal  year  and  expenditures are recognized in the period liabilities are incurred, if measurable.  Under the accrual basis,  expenditures are recognized in the period liabilities are incurred.    The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of  Federal  Regulations  Part  200, Uniform  Administrative  Requirements,  Cost  Principles,  and  Audit  Requirements for Federal Awards (Uniform Guidance), and Section 215.97, Florida Statutes.  Therefore,  some  amounts  presented  in  the  Schedule  may  differ  from  amounts presented,  or  used  in  the  preparation of, the basic financial statements for the fiscal year ended September 30, 2017.  2. Contingency  The  grant  revenue  amounts  received  are  subject  to  audit  and  adjustment.    If  any  expenditures  or  expenses are disallowed by the grantor agencies as a result of such an audit, any claim for  reimbursement to the grantor agencies would become a liability of the County.    3. Indirect Cost Rate  The County has not elected to use the 10 percent de minimis cost rate allowed under the Uniform  Guidance.  181 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2017   Section I – Summary of Auditors’ Results Financial Statements 1. Type of auditors’ report issued: Unmodified 2. Internal control over financial reporting:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 3. Noncompliance material to financial statements noted? yes x no Federal Awards 1. Internal control over major federal programs:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 2. Type of auditors’ report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes x no Identification of Major Federal Programs CFDA Number(s) Name of Federal Program or Cluster 14.218 CDBG Entitlements Grants Cluster 14.239 Home Investment Partnerships Program 20.205 Highway Planning and Construction Cluster 93.044, 93.045, 93.053 Aging Cluster Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000 Auditee qualified as low-risk auditee? yes x no 182 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2017 Section I – Summary of Auditors’ Results (Continued) State Financial Assistance 1. Internal control over state projects:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes x no 2. Type of auditors’ report issued on compliance for state projects: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with Chapter 10.557? yes x no Identification of Major State Projects CSFA Number(s) Name of State Project 37.039 Statewide Surface Water Restoration and Wastewater Project 40.901 State Housing Initiatives Partnership (SHIP) Program 55.004 Aviation Grant Program 55.026 Transportation Regional Incentive Program (TRIP) 60.115 Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program Dollar threshold used to distinguish between Type A and Type B state projects: $ 383,578 183 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2017   Part II – Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Part III – Findings and Questioned Costs – Major Federal Programs There were no findings required to be reported. Part IV – Findings and Questioned Costs – Major State Projects There were no findings required to be reported. 184 COLLIER COUNTY, FLORIDA Summary Schedule of Prior Audit Findings Year Ended September 30, 2017 Finding 2016-001 Corrective action was taken. Finding 2016-002 Corrective action was taken. 185 THIS PAGE INTENTIONALLY LEFT BLANK  186 CliftonLarsonAllen LLP CLAconnect.com    MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the financial statements of Collier County, Florida (County) as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated March 16, 2018. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated March 16, 2018, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of prior year’s findings and recommendations are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been included in the notes to the basic financial statements. Honorable Board of County Commissioners Collier County, Florida   Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the County has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the County. 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. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Annual Financial Report Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and report the results of our determination as to whether the annual financial report for the County for the fiscal year ended September 30, 2017, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2017. In connection with our audit, we determined that these two reports were in agreement. Special District Component Units Section 10.554(1)(i)5.d., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. 2 Honorable Board of County Commissioners Collier County, Florida   Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 16, 2018 3 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Appendix A – Status of Prior Year’s Findings and Recommendations Year Ended September 30, 2017   Prior Year Findings and Recommendations Current Year Status Cleared Partially Cleared Not Cleared 2016-001 Significant Deficiency in Internal Control Over Compliance and Other Matters X 2016-002 Significant Deficiency in Internal Control Over Compliance and Other Matters X 2016 Independent Accountants’ Report Noncompliance with .Sections 365.172(10) and 365.172(2)(d), Florida Statutes X 4 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida’s (County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds and Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2017. Management of the County is responsible for the County’s compliance with the specified requirements. Our responsibility is to express an opinion on the County’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the County’s compliance with specified requirements. In our opinion, the County complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds and Section 365.172(10) and 365.173(2) (d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2017. This report is intended solely for the information and use of the County and the Auditor General, state of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 16, 2018 THIS PAGE INTENTIONALLY LEFT BLANK      ANNUAL DEBT REPORT (UNAUDITED)   Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal  year ended September 30, 2017.      Table 1.  Calculation of Collier County General Governmental Debt Ratio    Table 2.  Calculation of Collier County Enterprise Debt Ratios        Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes 312,100,185$          Governmental Impact Fees 35,098,606               Half Cent Sales Tax 41,798,943               Developmental Fees 25,587,760               State Revenue Sharing 11,091,933               5th Cent Local Option Gas Tax 5,945,974                 6th Cent Local Option Gas Tax 7,817,673                 Constitutional Gas Tax 4,436,414                 Seventh Cent Gas Tax 1,953,725                 Ninth Cent Gas Tax 1,644,802                 Parks and Recreation Fees 6,885,243                 Tourist Development Tax 21,961,389               Court Facilities Fees 737,223                    Communications Services Tax 5,084,037                 Total bondable revenues 482,143,907$          Fiscal 2017 governmental debt service requirements: Series 2012 Gas Tax Bonds Principal:2,835,000$               Interest:1,039,900                 Series 2014 Gas Tax Bonds Principal:7,360,000                 Interest:1,899,300                 Series 2010 Special Obligation Bonds Principal:1,965,000                 Interest:2,084,000                 Series 2010B Special Obligation Bonds Principal:2,140,000                 Interest:577,800                    Series 2011 Special Obligation Bonds Principal:5,600,000                 Interest:3,081,756                 Series 2013 Special Obligation Bonds Principal:‐                                 Interest:2,846,975                 Total fiscal 2017 governmental debt service requirements 31,429,731$            Governmental debt ratio of fiscal year 2017 debt service requirements  to total bondable revenues (13.0% maximum allowed by County policy) 6.5% Notes: Debt service is based upon current amortization tables for the fiscal year  indicated.  Debt prepayments, if any, are not included as debt service requirements. TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2017 1 Collier County Water and Sewer District: Total Sales Revenues 132,020,703$                   Miscellaneous Revenues 3,024,317                             Total Operating Revenues 135,045,020                    Non‐Operating Revenues 1,018,979                             Gross Revenues 136,063,999                    Less: Operation and Maintenance  Expense (excluding Depreciation and Amortization)99,251,690                      Net Revenues Available for Debt Service (1)36,812,309$                     Total Fiscal Year 2017 Debt Service on Bonds (2)6,720,696$                       Net Revenues Debt Service Coverage on Bonded Debt (100% Required) ‐ (1/2)548% Other Pledged Funds:  System Development Fees (Impact Fees)12,457,065$                     Total Pledged Funds Available for Debt Service (3) 49,269,374$                     Total Fiscal Year 2017 Debt Service on Bonds (4) 6,720,696$                       Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) ‐ (3/4)733% Total Pledged Funds Available for Debt   Service After Payment of Bonds (5)42,548,678$                     Total Fiscal Year 2017 Debt Service on  Subordinated Indebtedness (6)9,549,236$                       Calculated Coverage on Subordinated Indebtedness ‐ (5/6)446% Total Pledged Funds Available for System  Purposes 32,999,442$                     Notes: Coverage calculations utilitize definitions of Gross Revenues, Net Revenues, System  Development Fees and Pledged Funds established in Resolution CWS 85‐5, as  Amended and Restated. TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2017 2 Summary Debt Statement for Fiscal Year 2017 General Governmental Debt: Collier County’s Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this self-imposed maximum. The Constitution of the State of Florida and the Florida Statutes set no legal debt limit at the local level. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County’s Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio decreased from 7.0%, for the fiscal year ended September 30, 2016, to 6.5% for the fiscal year ended September 30, 2017, or half of the allowable ratio. The decrease in the debt ratio for FY-2017 is primarily the result of a 7.7% increase in overall bondable revenues. Ad valorem tax revenues increased by 11.2% over FY-2016 primarily due to a 10.0% increase in countywide taxable property values. In addition, Half-Cent Sales Tax collections were 2.8% greater than FY-2016 and combined Gas Tax collections were 6.4% greater than the previous year. Recent debt restructurings coupled with the growth of general governmental revenues has produced several consecutive years of decreases in the general governmental debt ratio, as shown in the chart below:  0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% FY‐2011 FY‐2012 FY‐2013 FY‐2014 FY‐2015 FY‐2016 FY‐2017 Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 3 Governmental Debt Ratings Table: Current Ratings (as of 2/28/2018) Fitch Moody’s Standard & Poor’s Gas Tax Revenue Bonds AA- A2 A Special Obligation Bonds AA Aa2 AAA A rating of AA by Fitch Ratings denotes the expectations of very low default risk and indicates very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. Fitch also uses intermediate +/- modifiers for each AA category. A rating of Aa is an indication by Moody’s Investors Service of a high quality investment grade instrument with very low credit risk. A rating of A is an indication by Moody’s of an upper-medium grade instrument subject to low credit risk. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. An obligation rated AAA has the highest rating assigned by Standard and Poor’s Global Ratings. The obligor’s capacity to meet its financial commitments on the obligation is extremely strong. An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitments on the obligation is still strong. Standard and Poor’s Global Ratings also uses intermediate +/- modifiers for each category to indicate relative standing within the major rating categories. The County’s Special Obligation Revenue Bonds are secured by a covenant to appropriate in the annual budget by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient pay debt service on the combined Special Obligation Bonds. On February 23, 2018 Standard and Poor’s Global Ratings upgraded Collier County’s Special Obligation Bonds to ‘AAA’. The combined gas tax revenues are pledged for the payment of all the Gas Tax Revenue Bonds. Fiscal year 2017 gas tax revenues covered the current year debt service payments on all outstanding Gas Tax Revenue Bonds at 166%. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District’s debt are set by bond covenants. Net revenues, defined as operating revenues plus specific non-operating revenues less operating expenses, excluding depreciation, must cover bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover bonded debt at 125%. Net revenue coverage on bonded debt was 548% and total pledged funds coverage on bonded debt was 733% for FY-2017, down from 600% and 800%, respectively, for FY-2016. Bonded debt coverages decreased primarily due to a 17.5% increase in operation and maintenance costs. A substantial portion of the increase in operating costs was due to Hurricane Irma. The District’s calculated coverage on subordinated debt, all in the form of bank loan with Florida Community Bank, increased from 415% to 446% primarily as a result of a decrease in debt service related to subordinated debt. The total pledged funds coverage required by the subordinated loan agreements is equivalent to the coverage required on senior lien bonded debt service but only on a subordinate basis. 4 In November of 2016, the Collier County Water and Sewer District issued the Series 2016B Water and Sewer Refunding Revenue Note in the amount of $89,982,000. The note was issued on a subordinate basis for the purpose of refunding the District’s outstanding State Revolving Fund Loans. The Series 2016B Note has a fixed interest rate of 1.8% and the current refunding achieved a net present value savings of 4.2% on the refunded loans. Enterprise Debt Ratings Table: Current Ratings (as of 2/28/2018) Fitch Moody’s Standard & Poor’s* Water and Sewer Revenue Bonds AAA Aa1 - *- Standard & Poor’s does not currently rate County Water and Sewer Revenue Bonds. A rating of AAA by Fitch Ratings denotes the lowest expectation of default risk. A rating of AAA is only assigned in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. A rating of Aa is an indication by Moody’s Investors Service of a high quality investment grade instrument with very low credit risk. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa range. Water, wastewater and irrigation quality water user rates and miscellaneous revenues are used to recover system operating, maintenance and capital costs as well as pay debt service. In September of 2014 the District’s governing board approved phased rate increases. The District’s water and sewer user rates increased by 9.0%, effective 10/01/2014 with subsequent increases of 5.0% effective 10/01/2015 and 10/01/2016. Over recent years the District has operated on a pay as you go basis, avoided borrowing and maintained financial stability. The District’s continuing focus is the optimization of resources and a risk based prioritization of capital projects. On November 14, 2017 the Board of County Commissioners of Collier County, Florida and ex-officio as the governing Board of the Collier County Water-Sewer District (District) authorized the acquisition of the real and personal property owned or utilized by the Florida Government Utility Authority to provide water and wastewater services in Collier County, Florida, in the Golden Gate Community, known as the Golden Gate Utility System (System). The System consists of approximately 3,700 water connections and 2,300 wastewater connections. The transfer date was set as March 1, 2018 and the purchase price for the Golden Gate Utility System was established as the amount required to repay all outstanding bonds and any additional obligations related to the System. On February 28, 2018 the Series 2018 Collier County Water and Sewer Revenue Bond was issued in the par amount of $35,965,000 for purposes of acquiring the System and paying associated costs of issuance. Effective as of the transfer date, the Golden Gate Utility service area was included in the Collier County Water-Sewer District service area. 5     Collier County, Florida Clerk of the Circuit Court Financial Statements and Supplemental Reports Year Ended September 30, 2017 Collier County, Florida Clerk of the Circuit Court Financial Statements and Other Reports Year Ended September 30, 2017 Contents Independent Auditors’ Report ..........................................................................................................1  Financial Statements  Balance Sheet – Governmental Funds ........................................................................................4  Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ................................................................................................................5  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund .............................................................................................................6  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Court Services Fund ..................................................................................................7  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Fund .....................................................................................8  Statement of Fiduciary Net Position – Agency Funds ................................................................9  Notes to Financial Statements ...................................................................................................10  Supplementary Information  Combining Statements of Fiduciary Net Position .....................................................................25  Other Reports  Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..........................................26  Management Letter ...................................................................................................................28  Independent Accountants’ Report .............................................................................................30  CliftonLarsonAllen LLP CLAconnect.com   1 INDEPENDENT AUDITORS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Dwight E. Brock Clerk of the Circuit Court 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Clerk as of September 30, 2017, and the respective changes in financial position and budgetary comparisons for the General Fund, Court Services Fund, and Other Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2017, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk’s financial statements. The combining statement, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The combining statement is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statement is fairly stated in all material respects in relation to the financial statements as a whole. Honorable Dwight E. Brock Clerk of the Circuit Court 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 22, 2018, on our consideration of the Clerk’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Clerk’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 22, 2018 Collier County, Florida Clerk of the Circuit Court   Balance Sheet – Governmental Funds September 30, 2017 See accompanying Notes to Financial Statements. 4 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents 1,932,596$ 967,852$ 4,328,248$ 7,228,696$ Accounts receivable 65,668 46,985 - 112,653 Allowance for doubtful accounts (54,255) (46,985) - (101,240) Due from Collier County, Florida Board of County Commissioners 14,142 - - 14,142 Due from other governments 9,009 190,301 - 199,310 Prepaid Expenses - - 7,575 7,575 Total assets 1,967,160$ 1,158,153$ 4,335,823$ 7,461,136$ Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities 620,851$ 252,233$ 60,418$ 933,502$ Due to Collier County, Florida Board of County Commissioners 248,861 - - 248,861 Due to other governments - 889,500 - 889,500 Deposits 1,097,448 - - 1,097,448 Total liabilities 1,967,160 1,141,733 60,418 3,169,311 Fund balance: Nonspendable - - 7,575 7,575 Restricted - 16,420 4,267,830 4,284,250 Total fund balance - 16,420 4,275,405 4,291,825 Total liabilities and fund balance 1,967,160$ 1,158,153$ 4,335,823$ 7,461,136$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 5 Other Total Court Special Governmental General Services Revenue Funds Revenues: Intergovernmental -$ 629,086$ -$ 629,086$ Charges for services 3,164,214 5,463,687 1,315,132 9,943,033 Interest income 39,127 23,116 21,438 83,681 Total revenues 3,203,341 6,115,889 1,336,570 10,655,800 Expenditures: General government: Personal services 6,833,684 5,280,799 1,021,397 13,135,880 Operating 1,757,676 290,461 707,830 2,755,967 Capital outlay 562,174 - 157,806 719,980 Total expenditures 9,153,534 5,571,260 1,887,033 16,611,827 Excess (deficiency) of revenues over (under) expenditures (5,950,193) 544,629 (550,463) (5,956,027) Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 6,194,900 - - 6,194,900 Transfers out: Distribution of excess fees to State of Florida - (528,209) - (528,209) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (244,707) - - (244,707) Total other financing sources (uses) 5,950,193 (528,209) - 5,421,984 Net change in fund balance - 16,420 (550,463) (534,043) Fund balances – beginning of year - - 4,825,868 4,825,868 Fund balances – end of year -$ 16,420$ 4,275,405$ 4,291,825$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 6 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 2,822,400$ 3,095,400$ 3,164,214$ 68,814$ Interest income 14,000 39,000 39,127 127 Total revenues 2,836,400 3,134,400 3,203,341 68,941 Expenditures: General government: Personal services 7,219,500 6,940,900 6,833,684 107,216 Operating expenditures 1,587,400 1,819,000 1,757,676 61,324 Capital outlay 224,400 569,400 562,174 7,226 Total expenditures 9,031,300 9,329,300 9,153,534 175,766 Excess (deficiency) of revenues over (under) expenditures (6,194,900) (6,194,900) (5,950,193) 244,707 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 6,194,900 6,194,900 6,194,900 - Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners - - (244,707) (244,707) Total other financing sources (uses) 6,194,900 6,194,900 5,950,193 (244,707) Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Court Services Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 7 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental 219,000$ 219,000$ 629,086$ 410,086$ Charges for services 5,965,241 5,965,241 5,463,687 (501,554) Interest income 5,000 5,000 23,116 18,116 Total revenues 6,189,241 6,189,241 6,115,889 (73,352) Expenditures: General government: Personal services 5,762,141 5,691,941 5,280,799 411,142 Operating expenditures 427,100 497,300 290,461 206,839 Total expenditures 6,189,241 6,189,241 5,571,260 617,981 Excess of revenues over expenditures - - 544,629 544,629 Other financing (uses): Transfers out: Distribution of excess fees to State of Florida - - (528,209) (528,209) Total other financing (uses) - - (528,209) (528,209) Net change in fund balance - - 16,420 16,420 Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ 16,420$ 16,420$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Other Special Revenue Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 8 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 1,469,000$ 1,469,000$ 1,315,132$ (153,868)$ Interest income 8,200 8,200 21,438 13,238 Total revenues 1,477,200 1,477,200 1,336,570 (140,630) Expenditures: General government: Personal services 1,157,030 1,157,030 1,021,397 135,633 Operating expenditures 1,813,200 1,913,200 707,830 1,205,370 Capital outlay 1,382,500 1,356,824 157,806 1,199,018 Total expenditures 4,352,730 4,427,054 1,887,033 2,540,021 Net change in fund balance (2,875,530) (2,949,854) (550,463) 2,399,391 Fund balance – beginning of year 4,379,050 3,807,879 4,825,868 1,017,989 Fund balance – end of year 1,503,520$ 858,025$ 4,275,405$ 3,417,380$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Position Agency Funds September 30, 2017 See accompanying Notes to Financial Statements. 9 Assets Cash and cash equivalents 21,158,645$ Due from Collier County, Florida Board of County Commissioners 10 Total assets 21,158,655$ Liabilities Due to the Collier County, Florida Board of County Commissioners 220,512$ Due to other governments 768,914 Deposits 20,169,229 Total liabilities 21,158,655$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 10 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Florida. The Clerk’s Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and agency funds of the Clerk’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by: fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk’s general fund. Court-related operations are funded by the collection of fines, fees costs and service charges, and a child support grant. Any court-related surplus based on the settle up calculation is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. The State transitioned the Clerk in July, 2013 to be self-funded from fees and fines. Pursuant to Section 28.37, Florida Statute, any surplus revenues over expenditures will be returned to the State. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 11 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund – The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund – The court services fund is a special revenue fund established to account for court-related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund – The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office; and revenues mandated by Section 28.24(12)(e) and Section 28.37(5), Florida Statutes, to be used exclusively for funding court-related technology needs. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 12 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk’s activities are classified as court-related and non-court-related. The Clerk’s general fund activity, which is classified as non-court-related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. Court-related operations are funded by the collection of fines, fees costs and service charges, and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds – Agency Funds – Agency funds are used to account for assets held by the Clerk in a trustee capacity or as an agent for individuals, private organizations, other governments, and other funds. The agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the full accrual basis of accounting. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 13 1. Summary of Significant Accounting Policies (continued) Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk’s funds, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expenses. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 14 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Spendable fund balances are classified based on a hierarchy of the Clerk’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk’s fund balances for the special revenue funds include the spendable restricted category. Fund balances maintained in the special revenue funds include amounts that are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk’s annual budget. The Clerk prepares and approves the budget for the Clerk s non-court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. The State provided funding from the Court Trust Fund, since there was a projected revenue deficit. For the year ended September 30, 2017, the Clerk had sufficient revenues to meet expenditures. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 15 2. Budgetary Process (continued) The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk’s fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 3. Cash and Cash Equivalents At September 30, 2017, the carrying value of the Clerk’s cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A 7,600$ N/A Demand deposits N/A 28,379,741 N/A Total cash and cash equivalents 28,387,341$ The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each fund type’s portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 16 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2017 are reported as $7,228,696 and $21,158,645 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2017, the Clerk’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Clerk’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter-local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk’s funds is based on maintaining 24 hour liquidity. All Clerks funds are held in local banks or short term investment instruments. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 17 4. Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of $39,127 is reported in the general fund for the year ended September 30, 2017, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, Transfer- September 30, 2016 Additions Deductions out 2017 Capital assets depreciated: Machinery and equipment 7,263,336$ 719,980$ (672,903)$ (257,653)$ 7,052,760$ Less accumulated depreciation (5,585,298) (726,940) 672,903 239,948 (5,399,387) Total capital assets depreciated 1,678,038 (6,960) - (17,705) 1,653,373 Total capital assets, net 1,678,038$ (6,960)$ -$ (17,705)$ 1,653,373$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 18 6. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2016 Additions Deletions 2017 Accrued compensated absences 1,802,611$ 887,623$ (847,237)$ 1,842,997$ Of these liabilities, $847,779 is expected to be paid during the fiscal year ending September 30, 2017. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 19 7. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 20 7. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre- July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 21 7. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 22 7. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2017, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk’s contributions made to the plans during the years ended September 30, 2017, 2016, and 2015 were $802,245, $750,024, and $754,154, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the Collier County comprehensive annual financial report or County-wide financial statements. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 23 8. Related Party Transactions The Board provided funding for the Clerk in the amount of $6,194,900. The Supervisor of Elections provided funding in the amount of a $47,000 fee for financial services performed by the Clerk. At September 30, 2017, the Clerk had a payable due to the Board of $469,373, comprised as follows: Distribution of excess fees 244,707$ Amounts due for various services 4,154 Agency funds due 220,512 Total due to Board of County Commissioners 469,373$ 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2017, the Clerk was charged $2,331,567 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2017 24 10. Other Postemployment Healthcare Benefits (OPEB) Plan In accordance with Section 112.0801, Florida Statutes, the Clerk participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a “party in interest” in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2017, the Clerk was involved in approximately 108,081 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in 277 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are 7 active actions for foreclosure of property in which the Clerk has been a named defendant. The Clerk has no other pending litigation. Collier County, Florida Clerk of the Circuit Court Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2017 25 Jury and Clerk’s Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents 4,843,502$ 16,309,274$ 5,869$ 21,158,645$ Due from Collier County, Florida Board of County Commissioners 10 - - 10 Total assets 4,843,512$ 16,309,274$ 5,869$ 21,158,655$ Liabilities Due to Collier County, Florida Board of County Commissioners 220,512$ -$ -$ 220,512$ Due to other governments 763,045 - 5,869 768,914 Deposits 3,859,955 16,309,274 - 20,169,229 Total liabilities 4,843,512$ 16,309,274$ 5,869$ 21,158,655$ CliftonLarsonAllen LLP CLAconnect.com   26 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements, and have issued our report thereon dated January 22, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Dwight E. Brock Clerk of the Circuit Court 27 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 22, 2018 CliftonLarsonAllen LLP CLAconnect.com   28 MANAGEMENT LETTER Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the fiscal year ended September 30, 2017 and have issued our report thereon dated January 22, 2018. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 22, 2018, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Dwight E. Brock Clerk of the Circuit Court 29 Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be, and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 22, 2018 CliftonLarsonAllen LLP CLAconnect.com 30 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Dwight E. Brock, Clerk of the Circuit Court and the Florida Auditor General Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court’s (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets, during the year ended September 30, 2017. Management is responsible for the Clerk’s compliance with those requirements. Our responsibility is to express an opinion on the Clerk’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Clerk complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Clerk complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk’s compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets during the year ended September 30, 2017. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida, and is not intended to be, and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 22, 2018   Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2017 Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2017 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – General Fund ......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ...........................................................................5 Notes to Financial Statements .......................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................21 Management Letter ........................................................................................................................25 Independent Accountants’ Report ..................................................................................................28 CliftonLarsonAllen LLP CLAconnect.com  1 INDEPENDENT AUDITORS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Honorable Abe Skinner Property Appraiser 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Property Appraiser as of September 30, 2017, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2017, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report on our consideration of the Property Appraiser’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 17, 2018 Collier County, Florida Property Appraiser Balance Sheet – General Fund September 30, 2017 See accompanying Notes to Financial Statements. 3 Assets Cash and cash equivalents 995,193$ Total assets 995,193$ Liabilities and fund balance Liabilities: Accounts payable and accrued expenses 66,000$ Due to Collier County, Florida Board of County Commissioners 839,127 Due to other taxing districts 90,066 Total liabilities 995,193 Fund balance - Total liabilities and fund balance 995,193$     Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 4 Revenues: Commissions and fees 6,892,089$ Miscellaneous 912,452 Interest 5,811 Total revenues 7,810,352 Expenditures: General government: Personal services 5,269,406 Operating 1,516,032 Capital outlay 95,721 Total expenditures 6,881,159 Excess of revenues over expenditures 929,193 Other financing uses: Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (839,127) Distribution of excess fees and commissions to other governmental agencies (90,066) Total other financing uses (929,193) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year -$   Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 6,892,089$ 6,892,089$ 6,892,089$ -$ Interest Revenue - - 5,811 5,811 Miscellaneous - - 912,452 912,452 Total revenues 6,892,089 6,892,089 7,810,352 918,263 Expenditures: General government: Personal services 5,427,955 5,230,800 5,269,406 (38,606) Operating 1,439,134 1,545,789 1,516,032 29,757 Capital outlay 25,000 115,500 95,721 19,779 Total expenditures 6,892,089 6,892,089 6,881,159 10,930 Excess of revenues over expenditures - - 929,193 929,193 Other financing uses: Distribution of excess fees to Collier County, Florida Board of County Commissioners - - (839,127) (839,127) Distribution of excess commissions and fees to other governmental agencies - - (90,066) (90,066) Total other financing uses - - (929,193) (929,193) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 6 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser’s total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser’s office. The Property Appraiser’s financial statements include only the funds of the Property Appraiser’s office. There are no separate legal entities (component units) for which the Property Appraiser is considered to be financially accountable. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 7 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser’s only governmental fund is the general fund. The general fund is used to account for the general operations of the Property Appraiser and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser’s revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt; earlier if the “susceptible to accrual” criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 8 1. Summary of Significant Accounting Policies (continued) Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use-transfer out in the accompanying financial statements. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave and up to 200 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 9 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser’s annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser’s total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 10 2. Budgetary Process (continued) During the year, the Property Appraiser exceeded the budgeted amount for operating expenditures mainly as a result of other contractual services which were not expected at the time of the budget preparation. These budget overages were partially offset by budget savings in the personnel services category. 3. Cash At September 30, 2017, the carrying value of the Property Appraiser’s cash was as follows: Carrying Value Cash on hand 125$ Demand deposits 995,068 Total cash 995,193$ Type Custodial Credit Risk At September 30, 2017, the Property Appraiser’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss.   Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 11 3. Cash (continued) Credit Risk The Property Appraiser’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated acquisition value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida.   Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 12 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2017: October 1, September 30, 2016 Additions Deductions 2017 Improvements other than buildings 15,332$ -$ -$ 15,332$ Machinery and equipment 1,549,673 95,721 131,765 1,513,629 Total capital assets 1,565,005 95,721 131,765 1,528,961 Less accumulated depreciation (1,325,080) (107,322) (131,235) (1,301,167) Total capital assets, net 239,925$ (11,601)$ 530$ 227,794$ 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2016 Increase Decrease 2017 Accrued compensated absences 354,133$ 219,026$ 242,000$ 331,159$ Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 13 5. Long-Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2017, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 14 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 15 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 16 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 17 6. Pension Plans (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2017, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 18 6. Pension Plans (continued) Contributions The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser’s employer contributions to the plan for the years ended September 30, 2017, 2016, and 2015, were $409,812, $451,635, and $377,140, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Property Appraiser participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 8. Related-Party Transactions During the fiscal year ended September 30, 2017, the Board paid fees to the Property Appraiser that amounted to $6,224,046. At September 30, 2017, the Property Appraiser had a payable due to the Board of $839,127 comprised as follows: Distribution of excess commissions and fees 839,127$ Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2017 19 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County’s self-insurance program. During the year ended September 30, 2017, the Property Appraiser was charged $1,035,452 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser. CliftonLarsonAllen LLP CLAconnect.com   20 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County,  Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements, and have issued our report thereon dated January 17, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Abe Skinner Property Appraiser 21 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 17, 2018 CliftonLarsonAllen LLP CLAconnect.com 22 MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser) as of and for the year ended September 30, 2017, and have issued our report thereon dated January 17, 2018. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated January 17, 2018 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of significant findings and recommendations made in the preceding financial audit report are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to financial statements. Honorable Abe Skinner Property Appraiser   23 Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with out audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 17, 2018 COLLIER COUNTY, FLORIDA PROPERTY APPRAISER MANAGEMENT LETTER SEPTEMBER 30, 2017     24 APPENDIX A – PRIOR YEAR FINDINGS AND RECOMMENDATIONS Compliance Material Weakness2016-002 - Audit Adjustment Corrected Prior Year Findings 2016-001 Budget Current Year Status Corrected CliftonLarsonAllen LLP CLAconnect.com 25 INDEPENDENT ACCOUNTANTS’ REPORT   Honorable Abe Skinner Property Appraiser Collier County, Florida We have examined the Collier County Property Appraiser, Collier County, Florida’s (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2017. Management of the Property Appraiser is responsible for the Property Appraiser’s compliance with the specified requirements. Our responsibility is to express an opinion on the Property Appraiser’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Property Appraiser complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Property Appraiser complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser’s compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2017. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties.   CliftonLarsonAllen LLP Naples, Florida January 17, 2018 THIS PAGE INTENTIONALLY LEFT BLANK    Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2017 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2017 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget (Non-GAAP) and Actual – General Fund ........................................................................6 Statement of Net Position – Internal Service Fund ..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund ....................................................................................................................8 Statement of Cash Flows – Internal Service Fund ...........................................................................9 Statement of Fiduciary Net Position – Agency Funds ...................................................................10 Notes to Financial Statements ........................................................................................................11 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratio .................................................37 Combining Financial Information Combining Statement of Fiduciary Net Position – Agency Funds ................................................38 Statement of Changes in Assets and Liabilities – Agency Funds ..................................................39 Honorable Kevin Rambosk Sheriff   Contents (continued) Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards .................................................................................................40 Management Letter ........................................................................................................................42 Independent Accountants’ Report ..................................................................................................44 Independent Accountants’ Report on Applying Agreed-Upon Procedures ...................................45 CliftonLarsonAllen LLP CLAconnect.com   1   INDEPENDENT AUDITORS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Sheriff’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Kevin Rambosk  Sheriff  2    Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Sheriff as of September 30, 2017, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2017, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. During fiscal year ended September 30, 2017, the Sheriff adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. As a result of the implementation of Statement No. 75, the Sheriff reported a restatement for the change in accounting principle. Our auditors’ opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Funding Progress for the Retiree Health Plan, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Honorable Kevin Rambosk  Sheriff  3    Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff’s financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2018 on our consideration of the Sheriff’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the Sheriff’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 30, 2018 Collier County, Florida Sheriff Balance Sheet – Governmental Funds September 30, 2017 See accompanying Notes to Financial Statements. 4 Grant Other Non-MajorSpecial Prisoner Federal Equitable Special Revenue General Revenue Fund Welfare SharingFunds TotalAssetsCash and cash equivalents 16,032,820$ 871,813$ 1,868,645$ 738,054$ –$ 19,511,332$ Accounts receivable 50,465 – – – – 50,465 Other receivable 30,250 – 16,292 – – 46,542 Due from other funds 173,045 – 25,061 – – 198,106 Due from other governments 52,501 120,777 – – – 173,278 Due from Collier County, Florida Board ofCounty Commissioners 39,441 59,816 – – 196,744 296,001 Total assets 16,378,522$ 1,052,406$ 1,909,998$ 738,054$ 196,744$ 20,275,724$ Liabilities and fund balancesLiabilities:Accounts payable 1,054,570$ 32,722$ 9,530$ 4,228$ 63,596$ 1,164,646$ Accrued expenses 12,696,803 23,680 – – 2,000 12,722,483 Due to other funds– – 27,769 4,228 131,148 163,145 Due to Collier County, Florida Board ofCounty Commissioners 2,627,149 487 – – – 2,627,636 Unearned revenue– 42,341 – – – 42,341 Total liabilities 16,378,522 99,230 37,299 8,456 196,744 16,720,251 Fund balances:Restricted– 953,176 1,872,699 729,598 – 3,555,473 Total liabilities and fund balances 16,378,522$ 1,052,406$ 1,909,998$ 738,054$ 196,744$ 20,275,724$ Collier County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 5 Grant Other Non-MajorSpecial Prisoner Federal Equitable Special RevenueGeneral Revenue Fund Welfare SharingFunds TotalRevenues:Grant revenue–$ 1,226,012$ –$ –$ –$ 1,226,012$ Charges for services 1,665,707 – 698,250 – – 2,363,957 Interest income– 1,977 7,938 3,803 – 13,718 Other revenue 140,540 – – – – 140,540 Total revenues 1,806,247 1,227,989 706,188 3,803 – 3,744,227Expenditures:General government:Personal services 4,494,939 – – – – 4,494,939 Operating expenditures 77,948 – – – – 77,948 Public safety:Personal services 136,789,755 556,720 238,407 – 1,043,894 138,628,776 Operating expenditures 21,956,362 223,343 139,962 137,232 1,973,190 24,430,089 Capital outlay6,679,476 158,251 – – 33,487 6,871,214 Debt Service - principal 598,641 – – – – 598,641 Debt Service - interest 34,868 – – – – 34,868 Total expenditures 170,631,989 938,314 378,369 137,232 3,050,571 175,136,475Excess (deficiency) of revenues over (under) expenditures (168,825,742) 289,675 327,819 (133,429) (3,050,571) (171,392,248)Other financing sources (uses):Transfers in: General fund– 140,540 – – – 140,540 Collier County, Florida Board of County Commissioners appropriations 171,039,900 – – – – 171,039,900 Collier County, Florida Board of County Commissioners 486,890 – – – 3,050,571 3,537,461 Transfers out: Grant and Other Special Revenue Funds(140,540) – – – – (140,540) Distribution of excess appropriations to Collier County,Florida Board of County Commissioners(2,560,508) – – – – (2,560,508) Total other financing sources 168,825,742 140,540 – – 3,050,571 172,016,853Net change in fund balances– 430,215 327,819 (133,429) – 624,605 Fund balances – beginning of year– 522,961 1,544,880 863,027 – 2,930,868 Fund balances – end of year–$ 953,176$ 1,872,699$ 729,598$ –$ 3,555,473$ Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 6 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services –$ 1,463,000$ 1,665,707$ 202,707$ Other revenue – – 140,540 140,540 Total revenues – 1,463,000 1,806,247 343,247 Expenditures: General government: Personal services 3,951,000 4,161,000 4,494,939 (333,939) Operating expenditures 177,700 177,700 77,948 99,752 Capital outlay – – – – Public safety: Personal services 128,368,500 136,059,500 136,789,755 (730,255) Operating expenditures 25,471,100 26,033,100 21,956,362 4,076,738 Capital outlay 5,321,600 6,071,600 6,826,095 (754,495) Total expenditures 163,289,900 172,502,900 170,145,099 2,357,801 Excess of expenditures over revenues (163,289,900) (171,039,900) (168,338,852)2,701,048 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 163,289,900 171,039,900 171,039,900 – Transfers out: Grant and Other Special Revenue Funds – – (140,540) (140,540) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners – – (2,560,508) (2,560,508) Total other financing sources 163,289,900 171,039,900 168,338,852 (2,701,048) Net change in fund balance – – – – Fund balance – beginning of year – – – – Fund balance – end of year –$ –$ –$ –$ Total expenditures - budgetary basis 170,145,099$ Expenditures not budgeted: Expenditures for multi-period projects that are not budgeted 486,890 Total expenditure - GAAP basis 170,631,989$ Total other financing sources (uses) - budgetary basis 168,338,852$ Transfers in from Collier County Florida Board of County Commissioners (non-appropriations)486,890 Total other financing sources (uses) - GAAP basis 168,825,742$ Collier County, Florida Sheriff Statement of Net Position – Internal Service Fund September 30, 2017 See accompanying Notes to Financial Statements. 7 Assets: Cash and cash equivalents 1,823,874$ Investments 8,010,000 Due from stop loss 1,319 Interest receivable 11,351 Total assets 9,846,544 Liabilities: Self insurance claims payable 2,660,000 Total liabilities 2,660,000 Net position: Unrestricted 7,186,544 Total net position 7,186,544$ Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 8 Operating revenues: 27,393,382$ Operating expenses: 24,738,382 1,080,212 188,513 26,007,107 1,386,275 Nonoperating revenues: 36,796 Realized gain on sale of investments 9,729 Decrease in fair value of investments (9,616) Total nonoperating revenues 36,909 1,423,184 Net position – beginning of year, as restated 5,763,360 Net position – end of year 7,186,544$ Change in net position Claims and claims expenses Reinsurance premiums Administrative and other expenses Total operating expenses Operating income Interest income, net of management fees Charges for services Collier County, Florida Sheriff Statement of Cash Flows – Internal Service Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 9 Operating activities (24,441,000)$ (1,080,212) (204,898) 26,400,000 994,704 1,668,594 Noncapital and Related Financing Activities Amounts received from other funds 2,000 Amounts repaid to other funds (3,554,292) Net cash used by noncapital and related financing activities (3,552,292) Investing activities 46,525 Purchase of securities 8,265,850 Proceeds from sales of securities (8,400,787) (88,412) (1,972,110) Cash, cash equivalents, and investments – beginning of year 3,795,984 Cash, cash equivalents, and investments – end of year 1,823,874$ Reconciliation of operating loss to net cash 1,386,275$ 1,319 281,000 1,668,594$ Increase in self-insurance claims payable Net cash provided by operating activities Net decrease in cash, cash equivalents, and investments provided by operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Decrease in other receivables Net cash used by investing activities Cash payments for claims and claims related services Cash payments for reinsurance premiums Cash payments for administrative services and supplies Cash received from other funds for services Cash received from retirees for services Net cash provided by operating activities Interest earnings, net of management fees Collier County, Florida Sheriff Statement of Fiduciary Net Position – Agency Funds September 30, 2017 See accompanying Notes to Financial Statements. 10 Cash and cash equivalents 565,455$ Due from individuals and businesses 3,156 568,611$ Due to other funds 34,961$ Due to Collier County, Florida 15,499 Due to individuals and businesses 518,151 568,611$ Liabilities: Board of County Commissioners Total liabilities Assets: Total assets Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 11 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff’s budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County’s corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and agency funds of the Sheriff’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and related disclosures, including management’s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2017 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive Annual Financial Report. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 12 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated general fund balance is carried forward. The fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Sheriff considers revenues to be available if they are collected within 60 days after year-end with the exception of grants, which have a period of availability of one year. Grants are recognized as revenue as soon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Substantially all of the Sheriff’s funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, money must be expended on the specific purpose or project before any amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures incurred. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the “susceptible to accrual” criteria are met. Other revenue is recognized as earned and becomes measurable and available to pay liabilities of the current period. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 13 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has four major governmental funds: General Fund – The general fund is used to account for the general operations of the Sheriff and includes all transactions which are not accounted for in another fund. Grant Special Revenue Fund – This fund is used to account for the proceeds of federal and state grant revenues that are legally restricted to specified purposes. It also includes funds donated to the Collier County Sheriff’s Office. Donated funds are used in accordance with how each donor designates the use of funds. The majority of donated funds are usually designated for youth programs, however, funds have also been donated for officer safety, use by specific districts/substations for community activities, or other programs/activities in the community. Prisoner Welfare Fund – This fund is used to account for the proceeds of inmate-related services and is legally restricted to specified purposes, which benefit the inmate population. Federal Equitable Sharing Fund – The revenue from this fund is the result of joint investigations with federal agencies that result in the equitable sharing of the net proceeds of the forfeiture. The Sheriff also has the following non-major funds: Reported as Other Non-major Special Revenue Funds Confiscated Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate.  Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 14 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Civil Citation – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. Education Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911 – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Domestic Violence Training Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 938.08. Funds are used to defray of incarcerating persons sentenced under Florida Statute 741.283 and to provide additional training to law enforcement personnel in combating domestic violence. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. Fiduciary Funds Fiduciary Funds – Agency Funds – These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Proprietary Fund Internal Service Fund – This fund is used to account for the health and dental insurance services provided to departments and retirees of the Sheriff on a cost-reimbursement basis. Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 15 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Sheriff invests funds throughout the year with Florida PRIME, an investment pool administered by the State Board of Administration (“SBA”), under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. Florida PRIME is considered a qualifying external investment pool that meets all the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the Sheriff’s position in the pool is the same as the value of the pool shares. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2017, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 29.9% of Florida PRIME’s portfolio at September 30, 2017. In accordance with GASB Statement No. 79, as a participant in a qualifying external investment pool, the Sheriff should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool’s authority to impose liquidity fees or redemption gates in the notes to the financial statements. With regards to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory council. The Trustees shall convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 16 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments (continued) With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. At September 30, 2017, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. As of September 15, 2017, the Sheriff authorized unused vacation balances to be temporarily raised to 600 hours, effective through December 31, 2018. This change was made as the result of Hurricane Irma which prevented most members from taking any vacation time prior to, during, and for a period after the hurricane because of required work schedules during the declared state of emergency. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 2,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 17 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non-spendable fund balances as of September 30, 2017. Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned, and unassigned. The Sheriff’s fund balances for the Grant Special Revenue Fund, Prisoner Welfare Fund, and Federal Equitable Sharing Fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund, Prisoner Welfare Fund, and the Federal Equitable Sharing Fund are constrained for specific purposes that are externally imposed by donors, grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reports as restricted fund balances. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Sheriff’s annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the proceeds from capital leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare and federal equitable sharing funds do not have legally adopted budgets. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 18 2. Budgetary Process (continued) The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. The differences between the budgetary basis and the GAAP basis for the General Fund budget as discuss above are as follows: Total expenditures - budgetary basis 170,145,099$ Expenditures not budgeted: Expenditures for multi-period projects that are not budgeted 486,890 Total expenditure - GAAP basis 170,631,989$ Total other financing sources (uses) - budgetary basis 168,338,852$ Transfers in from Collier County Florida Board of County Commissioners (non-appropriations)486,890 Total other financing sources (uses) - GAAP basis 168,825,742$ This space intentionally left blank Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 19 3. Cash, Cash Equivalents and Investments At September 30, 2017, the carrying value of the Sheriff’s cash, cash equivalents, and investments was as follows: Type Maturity Carrying Value Credit Rating * Cash on hand N/A 21,435$ N/A Demand deposits N/A 21,122,125 N/A Local government surplus funds trust fund: Florida Prime N/A 754,403 AAAm Total cash and cash equivalents 21,897,963$ Money Market N/A 2,697 Not rated Federal Farm Credit Bank 11/19/2018 248,885 AA+ Federal Home Loan Bank 6/8/2018 499,875 AA+ Federal Home Loan Bank 2/28/2018 499,660 AA+ Federal Home Loan Mortgage Corp. 10/2/2017 250,000 AA+ Federal Farm Credit Bank 7/12/2019 494,650 AA+ Federal Home Loan Mortgage Corp. 1/30/2018 250,130 AA+ Federal Home Loan - FREDDIE MAC 6/29/2018 498,110 AA+ Federal Home Loan Mortgage Corp. 3/7/2018 249,645 AA+ Federal Home Loan - FREDDIE MAC 12/15/2017 499,910 AA+ Federal Home Loan - FREDDIE MAC 4/9/2018 498,620 AA+ Treasury Note 11/9/2017 499,495 AA+ Treasury Note 1/4/2018 498,650 AA+ Treasury Note 8/31/2018 646,445 AA+ Treasury Note 2/15/2019 431,094 AA+ Treasury Note 9/30/2018 499,980 AA+ Treasury Note 7/31/2018 696,717 AA+ Treasury Note 3/31/2018 249,425 AA+ Treasury Note 3/31/2019 498,710 AA+ Total cash, cash equivalents and investments 29,910,661$ *Credit ratings are Moody ratings except for Florida Prime which is a Standard & Poor rating. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 20 3. Cash, Cash Equivalents and Investments (continued) The total cash, cash equivalent and investments balances at September 30, 2017, were as follows: General fund 16,032,820$ Grant special revenue fund 871,813 Prisoner welfare fund 1,868,645 Federal equitable sharing fund 738,054 Other non-major special revenue funds – Internal service fund 9,833,874 Agency funds 565,455 29,910,661$ Custodial Credit Risk At September 30, 2017, the Sheriff’s demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Multiple Employers Trust (FSMET) and are administered by Hunt Insurance Group. FMSET’s policy requires execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff’s name. Credit Risk The Sheriff’s policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff’s Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the U.S. Treasury. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 21 3. Cash, Cash Equivalents and Investments (continued) Credit Risk (continued) Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2017, the Sheriff had $754,403 invested in Florida PRIME. Florida PRIME is rated “AAAm” by Standard & Poor’s Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Concentration of Credit Risk The Sheriff’s investments are included in the internal service fund which is used to account for the Sheriff’s self-insured health plan. FSMET administers the investments for the Sheriff’s self-insured health plan and has an investment policy that allows for the investment of funds that exceed one month’s required funding by more than $100,000. Investments can be made in government securities. The Sheriff’s portfolio managed by FSMET includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits that are not managed by FSMET and are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff’s portfolio invested in FSMET is detailed as follows, at September 30, 2017: % of Portfolio Money Market 1% Treasury Note 50% Federal Home Loan Mortgage Corp. 9% Federal Home Loan - FREDDIE MAC 19% Federal Farm Credit Bank 9% Federal Home Loan Bank 12% Total 100% Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 22 3. Cash, Cash Equivalents and Investments (continued) Fair Value Measurements The Sheriff categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Sheriff has the following recurring fair value measurements as of September 30, 2017:  U.S. Treasury Notes classified as level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities.  U.S. Agency obligations classified as level 2 of the fair value hierarchy are valued using quoted prices for similar assets in active markets. 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 23 4. Capital Assets (continued) The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2016 Additions Reclassifications 2017 Governmental Activities Capital assets not depreciated: Construction in Progress 2,276,322$ 5,389,682$ (249,792)$ 7,416,212$ Total capital assets not depreciated 2,276,322 5,389,682 (249,792) 7,416,212 Capital assets depreciated : Machinery and equipment 74,879,706 1,920,403 (6,450,685) 70,349,424$ Total capital assets depreciated 74,879,706 1,920,403 (6,450,685) 70,349,424 Less accumulated depreciation: Machinery and equipment (59,569,142) (6,059,927) 6,623,124 (59,005,945)$ Total Accumulated depreciation (59,569,142) (6,059,927) 6,623,124 (59,005,945) Total Depreciable capital assets, net 15,310,564 (4,139,524) 172,439 11,343,479 Total Governmental Activities capital assets, net 17,586,886$ 1,250,158$ (77,353)$ 18,759,691$ 5. Long-Term Liabilities The Sheriff has entered into certain capital lease agreements under which the related equipment will become the property of the Sheriff’s Office when all terms of the lease agreements are met. Stated Interest Rate Present Value of Remaining Payments as of September 30, 2017 Governmental fund activities: Telephone system 4.82% 185,232$ Total Capital Lease Obligations 185,232$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 24 5. Long-Term Liabilities (continued) Equipment and related accumulated depreciation under capital leases is as follows: Governmental Activities Equipment 1,926,980$ Less: accumulated depreciated (1,134,889) Less: disposal (27,820) Net Value 764,271$ Year ending September 30: Governmental Activities 2018 63,185$ 2019 63,185 2020 63,185 2021 10,532 Total minimum lease payments 200,087 Less: amount representing interest (14,855) Present value of remain payments 185,232$ The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2016 Additions Reclassifications 2017 Capital lease agreements 783,873$ -$ (598,641)$ 185,232$ Compensated Absences 16,449,296 2,963,252 (1,278,988) 18,133,560 Total 17,233,169$ 2,963,252$ (1,877,629)$ 18,318,792$ Of these liabilities, approximately $1,160,000 is expected to be paid during the fiscal year ending September 30, 2018. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 25 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2017, were as follows: Due From Due To General Fund 173,045$ -$ Prisoner Welfare Fund 25,061 27,769 Federal Equitable Sharing - 4,228 Other non-major special revenue funds - 131,148 Agency Funds - 34,961 198,106$ 198,106$ Interfund receivables and payables generally represent recurring activities between funds. 7. Related Party Transactions The Board provided funding for the Sheriff for the year of $174,577,361. At September 30, 2017, the Sheriff had a payable due to the Board of $2,643,135 comprised of the following: General fund: Distribution of excess appropriations $ 2,560,508 Distribution of interest collected 9,362 Miscellaneous payables 57,766 Agency funds 15,499 Total $ 2,643,135 Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $296,001 at September 30, 2017. Agency Funds The Sheriff’s Office administers funds for the Collier County Sheriff’s Office Explorers Program. The program is funded by donations from employees through payroll deduction and donations from outside organizations. The program is designed for students to explore the opportunity to learn about and interact with law enforcement and to help stimulate further interest in the possibility of a law enforcement career. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 26 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 27 8. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 28 8. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in- line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 29 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 30 8. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2017, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff’s contributions made to the plans during the years ended September 30, 2017, 2016, and 2015 were $16,967,099, $15,023,011, and $13,341,786, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 31 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). The liability, expense, deferred outflows of resources and deferred inflows of resources for OPEB, calculated in accordance with GASB Statement No. 75, are reported in the financial statements of the County. Plan Description The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for retirees who have six years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 36% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff’s employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff’s health insurance plan at the same group rate as for active employees. Participant Data At September 30, 2017, the date of the latest actuarial valuation, the Sheriff’s plan participation consisted of: OPEB plan participants 1,136 Retirees receiving benefits 106 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay-as-you go basis. No trust or agency fund has been established for the plan. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017 32 9. Other Postemployment Benefits (continued) Total OPEB Liability The Sheriff’s OPEB liability of $18,260,466 was measured as of September 30, 2017, and was determined by an actuarial valuation as of October 1, 2017. The following table shows the changes in the Sheriff’s total OPEB liability for the year ended September 30, 2017. Total liability balance, October 1, 2016 18,221,385$ Changes recognized for the fiscal year: Service cost 491,420 Interest 502,621 Differences between expected and actual experience (83,607) Benefit payments (871,353) Net changes 39,081 Total liability balance, September 30, 2017 18,260,466$ The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff’s total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (4%) (5%) (6%) Total OPEB Liability 20,078,360$ 18,260,466$ 16,659,610$ The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% point lower (6% decreasing to 4.0%) or 1% point higher (8% decreasing to 6%) than the current healthcare cost trend rates: 1% Decrease Discount Rate 1% Increase (6% decreasing (7% decreasing (8% decreasing to 4%) to 5%) to 6%) Total OPEB Liability 16,554,047$ 18,260,466$ 20,226,456$ Healthcare rate sensitivity Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017  33 9. Other Postemployment Benefits (continued) Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2017, the Sheriff’s OPEB expense was $910,434. In addition the Sheriff reported deferred outflow of resources and deferred inflow of resources from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences between expected and actual experience 83,607$ -$ Amounts reported as deferred outflows of resources are being amortized over 7.36 years and will be recognized as follows: Year ending September 30 Amount 2018 11,360$ 2019 11,360 2020 11,360 2021 11,360 2022 11,360 Thereafter 26,807 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. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017  34 9. Other Postemployment Benefits (continued) Actuarial Methods and Assumptions (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 are: Actuarial cost method Entry Age Actuarial The actuarial assumptions are: Discount rate 2.75% (Based on 20 year AA municipal bond rate) Healthcare cost trend rate 7% decreasing to 5% in 2021 and thereafter Salary increase None New employees None Mortality rates were based on the RP-2015 Mortality Fully Generational tables using Projection Scale MP-2016. Since the most recent valuation performed to comply with GASB Statement No. 45, the following changes have been made:  The actuarial cost method changed from using the Unit Credit Actuarial cost method to the Entry Age Actuarial cost method.  The discount rate was changed from 3% to 2.75%.  The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2015 to RP-2015 Mortality Fully Generational using Projection Scale MP-2016. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017  35 10. Self-Insurance Program The Sheriff’s Office participates in the Statewide Florida Sheriff’s Self-Insurance Fund (the Fund) for its professional liability insurance. The Fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers’ compensation coverage. The Florida Sheriffs Workers’ Compensation Self Insurance Program is a self-insurance program providing coverage for the first $500,000 of every claim. Reinsurance is purchased by the Program to cover claims exceeding $500,000 (or $350,000 where applicable) up to $15,000,000. Reinsurance coverage up to $20,000,000 any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third-party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self-funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In FY17 there were two covered individuals who had higher deductible amounts because of a history of high claims. One individual had a deductible of $420,000 and the other had a deductible of $425,000. Specific claim excess coverage for these individuals was for claims exceeding $420,000 and $425,000, respectively. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriff’s Office uses a Third-Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2017 and 2016 is as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2016 $ 2,170,000 $ 16,473,000 $ (21,022,000) $ 2,379,000 2017 $ 2,379,000 $ 19,699,382 $ (24,738,382) $ 2,660,000 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2017  36 11. Claims and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. 12. Restatement for a Change in Accounting Principle During fiscal year ended September 30, 2017, the Sheriff adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This pronouncement requires the restatement of the September 30, 2016 net position of the internal service fund as follows: Net Position, September 30, 2016, as Previously Reported 3,150,497$ Cumulative Effect of Application of GASB 75, Net 2,612,863 Net Position, September 30, 2016, as Restated 5,763,360$ Collier County, Florida Sheriff Schedule of Changes in Total OPEB Liability and Related Ratio September 30, 2017 37 Total liability balance, October 1, 2016 18,221,385$ Changes recognized for the fiscal year: Service cost 491,420 Interest 502,621 Differences between expected and actual experience (83,607) Benefit payments (871,353) Net changes 39,081 Total liability balance, September 30, 2017 18,260,466$ Covered employee payroll 91,192,818$ Total OPEB Liability as a percentage of covered employee payroll 20.02% Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position – Agency Funds September 30, 2017 38 TotalCivil Evidence Flexible Inmate Agency Trust Trust Spending Trust Explorers FundsCash and cash equivalents 39,839$ 226,162$ 214,220$ 68,160$ 17,074$ 565,455$ Due from individuals and businesses – – – 3,156 – 3,156 39,839$ 226,162$ 214,220$ 71,316$ 17,074$ 568,611$ Due to other funds –$ –$ –$ 34,961$ –$ 34,961$ Due to Collier County, Florida Board6,485 – – 9,014 – 15,499 Due to individuals and businesses 33,354 226,162 214,220 27,341 17,074 518,151 39,839$ 226,162$ 214,220$ 71,316$ 17,074$ 568,611$ Liabilities:of County CommissionersTotal liabilitiesAssets:Total assets Collier County, Florida Sheriff Statement of Changes in Assets and Liabilities – Agency Funds September 30, 2017  39 October 1, September 30, 2016 Additions Deletions 2017Assets:Cash and cash equivalents 628,987$ 565,455$ (628,987)$ 565,455$ Due from individuals and businesses 1,618 3,156 (1,618) 3,156 Total assets 630,605$ 568,611$ (630,605)$ 568,611$ Liabilities:.Due to other funds 36,216$ 34,961$ (36,216)$ 34,961$ Due to Collier County, Florida Boardof County Commissioners 25,703 15,499 (25,703) 15,499 Due to individuals and businesses 568,686 518,151 (568,686) 518,151 Total liabilities 630,605$ 568,611$ (630,605)$ 568,611$ CliftonLarsonAllen LLP CLAconnect.com   40    INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements, and have issued our report thereon dated January 30, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff’s internal control. Accordingly, we do not express an opinion on the effectiveness of Sheriff’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a deficiency in internal control described below as 2017-001 that we consider to be a significant deficiency. 2017-001 Criteria: Management is responsible for establishing and maintaining internal controls to ensure that transactions are properly recorded and reported in the financial statements in accordance with accounting principles generally accepted in the United States of America. Honorable Kevin Rambosk  Sheriff  41   Condition: The accounts of the internal service fund are not maintained within the general ledger of the current financial application. Rather, the transactions are maintained in summary form on a monthly basis using Excel. A timely review of the internal service fund summarized financial information is not performed.   Cause: Management has elected not to use the current financial application for recording the internal service fund activity due to the pending implementation of a new financial reporting application.   Effect: Errors in the summarization of transactions each month may occur and not be detected.   Recommendation: We recommend that detailed reviews of the summarized information be performed at least quarterly if not monthly.   Management’s response: While the accounts of the internal service fund are reviewed on a monthly basis, there is no formal process in place for review and approval. A formal process is being developed to review the financial information, at least quarterly, for the internal service fund which includes approval by the Finance Director.   Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Sheriff’s Response to Findings The Sheriff’s response to the finding identified in our audit is described above. The Sheriff’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 30, 2018 CliftonLarsonAllen LLP CLAconnect.com   42   MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2017 and have issued our report thereon dated January 30, 2018. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and our Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 30, 2018, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Kevin Rambosk  Sheriff  43   Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 30, 2018 CliftonLarsonAllen LLP CLAconnect.com   44   INDEPENDENT ACCOUNTANTS’ REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff’s (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2017. Management of the Sheriff is responsible for the Sheriff’s compliance with the specified requirements. Our responsibility is to express an opinion on the Sheriff's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Sheriff complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Sheriff complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriff’s compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2017. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 30, 2018 45 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES Honorable Kevin Rambosk Sheriff Collier County, Florida We have performed the procedures enumerated below, which were agreed to by management of the Collier County, Florida Sheriff (Sheriff), solely to assist you in evaluating the procedures and policies as defined by the Sheriff over its investigative funds for the year ended September 30, 2017. The Sheriff’s management is responsible for the Sheriff’s compliance with those procedures and policies. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are summarized as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2017 (the population sampled included transactions from October 1, 2016 through September 30, 2017), and performed the following procedures with respect to the Sheriff’s policies and procedures over investigative funds: 1.We obtained the “Disbursement for Investigation” form and observed the form was properly completed and authorized by appropriate personnel. 2.We obtained the “Purchase of Evidence/Information Voucher” and observed the form was properly completed to reflect the expenses incurred within the investigation procedures, the investigative expenditures were properly supported, and the use of funds was for authorized purposes. No exceptions were noted. 3.We observed the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed the amount deposited agreed to the amount returned per the “Receipt for Funds Received” form detail. Honorable Kevin Rambosk Sheriff 46 This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the policies and procedures as defined by the Sheriff over its investigative funds. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the management of the Sheriff and is not intended to be, and should not be, used by anyone other than this specified party. CliftonLarsonAllen LLP Naples, Florida January 30, 2018 THIS PAGE INTENTIONALLY LEFT BLANK  Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2017 Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2017 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual – General Fund ..................................................................................................................5 Notes to Financial Statements ..........................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards ..............................................20 Management Letter ........................................................................................................................22 Independent Accountants’ Report ..................................................................................................24 1 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Jennifer J. Edwards Supervisor of Elections 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2017, and the respective changes in financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2017, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 20, 2017 on our consideration of the Supervisor’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the Supervisor’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisors’ internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida December 20, 2017 Collier County, Florida Supervisor of Elections Balance Sheet – Governmental Funds September 30, 2017 See accompanying Notes to Financial Statements 3 Grant Special General Revenue Total Assets Cash and cash equivalents 311,404$ -$ 311,404$ Accounts receivable 45 - 45 Total assets 311,449$ -$ 311,449$ Liabilities and fund balance Liabilities: Accounts payable 37,437$ -$ 37,437$ Accrued liabilities 84,569 - 84,569 Due to Collier County, Florida Board of County Commissioners 189,443 - 189,443 Total liabilities 311,449 - 311,449 Fund balances: Restricted - - - Total fund balances - - - Total liabilities and fund balances 311,449$ -$ 311,449$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2017 See accompanying Notes to Financial Statements 4 Grant Special General Revenue Total Revenues: Intergovernmental -$ 46,974$ 46,974$ Interest - 1 1 Total revenues - 46,975 46,975 Expenditures: General government: Personal services 2,055,126 - 2,055,126 Operating 1,326,436 54,021 1,380,457 Capital outlay 46,988 - 46,988 Total expenditures 3,428,550 54,021 3,482,571 Excess (deficiency) of expenditures over revenues (3,428,550) (7,046) (3,435,596) Other financing sources (uses): Transfers in: General Fund - 7,046 7,046 Collier County, Florida Board of County Commissioners appropriations 3,620,500 - 3,620,500 Transfers out: Special revenue fund (7,046) - (7,046) Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (184,904) - (184,904) Total other financing sources (uses) 3,428,550 7,046 3,435,596 Net change in fund balances - - - Fund balances – beginning of the year - - - Fund balances – end of the year -$ -$ -$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues -$ -$ -$ -$ Expenditures: General government: Personal services 2,149,200 2,166,700 2,055,126 111,574 Operating 1,441,300 1,399,764 1,326,437 73,327 Capital outlay 30,000 46,990 46,987 3 Total expenditures 3,620,500 3,613,454 3,428,550 184,904 Excess (deficiency)of expenditures over revenues (3,620,500) (3,613,454) (3,428,550) 184,904 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 3,620,500 3,620,500 3,620,500 - Transfers out: Special Revenue Fund - (7,046) (7,046) - Distribution of excess appropriations: Collier County, Florida Board of County Commissioners - - (184,904) (184,904) Total other financing sources (uses) 3,620,500 3,613,454 3,428,550 (184,904) Net change in fund balance - - - - Fund balance – beginning of the year - - - - Fund balance – end of the year -$ -$ -$ -$ Budget Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 6 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections’ budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor’s office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the SOE is considered to be financially accountable. The general operations of the SOE are funded by appropriations from the Collier County, Florida Board of County Commissioners (BOCC), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the SOE’s general fund. The special revenue fund of the SOE is not budgeted and governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 7 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds: General Fund – The general fund is used to account for the general operations of the Supervisor, and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund – The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 8 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 9 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non-spendable fund balances as of September 30, 2017. Spendable fund balances are classified based on a hierarchy of the Supervisor’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor’s fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements, and have been presented in the fund financial statements in accordance with GASB Statement No. 54. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 10 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor’s annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor’s total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor does not budget for the grant special revenue fund as it is funded by state grants and is governed by those documents. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 3. Cash and Cash Equivalents At September 30, 2017, the carrying value of the Supervisor’s cash and cash equivalents was as follows:  Carrying Credit Type Value Rating Cash on hand $ 200 N/A Demand deposits 311,204 N/A Total cash and cash equivalents $ 311,404  Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 11 3. Cash and Cash Equivalents (continued) Custodial Credit Risk At September 30, 2017, the Supervisor’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 12 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the general fund of the Supervisor and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2016 Additions Deductions 2017 Machinery and equipment 1,193,242$ 46,988$ -$ 1,240,230$ Less accumulated depreciation (988,952) (69,752) - (1,058,704) Machinery and equipment, net 204,290$ (22,764)$ -$ 181,526$ 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida:  October 1,   September 30,  2016 Increase Decrease 2017 Accrued compensated absences $ 200,710 $ 102,685 $ 107,227 $ 196,168 Of these liabilities, approximately $107,892 is expected to be paid during the fiscal year ending September 30, 2018, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 13 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost- sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Supervisor are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 14 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 15 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 16 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. SOE employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 17 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2017, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the SOE. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor’s contributions made to the plans during the years ended September 30, 2017, 2016 and 2015, were $115,546 $114,600 and $106,131 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report.   Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 18 7. Related-Party Transactions For the year ended September 30, 2017, the Board provided funding for the Supervisor that amounted to $3,620,500. At September 30, 2017, the Supervisor had a payable due to the Board of $189,443 comprised as follows: Distribution of excess appropriations $ 184,904 Distribution of interest earnings 3,064 Amounts due for various services 1,475 Total due to Board of County Commissioners $ 189,443 8. Risk Management Collier County, Florida (County) is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self- insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County’s self-insurance program. During the year ended September 30, 2017, the Supervisor was charged $259,077 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third-party carriers in any of the last three years. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2017 19 8. Risk Management (continued) The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Supervisor participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor’s grants. Transfers were required in the amount of $7,046 for the year ending September 30, 2017. 20 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements, and have issued our report thereon dated December 20, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Jennifer J. Edwards Supervisor of Elections 21 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida December 20, 2017 22 CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of the each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2017 and have issued our report thereon dated December 20, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated December 20, 2017 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Jennifer J. Edwards Supervisor of Elections 23 Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 20, 2017 24 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined the Collier County, Florida Supervisor of Elections’ (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2017. Management of the Supervisor is responsible for the Supervisor’s compliance with the specified requirements. Our responsibility is to express an opinion on the Supervisor’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Supervisor complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Supervisor complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on Supervisor’s compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2017. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 20, 2017   Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Years Ended September 30, 2017 and 2016 Collier County, Florida Tax Collector Financial Statements and Other Reports Years Ended September 30, 2017 and 2016 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheets – General Fund ....................................................................................................3 Statements of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – General Fund .............................................................................5 Statements of Fiduciary Net Position – Agency Funds ................................................................6 Notes to Financial Statements .......................................................................................................7 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................24 Management Letter ........................................................................................................................26 Independent Accountants’ Report ..................................................................................................28   CliftonLarsonAllen LLP CLAconnect.com   1 INDEPENDENT AUDITORS’ REPORT Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the years ended September 30, 2017 and 2016, and the related notes to the financial statements, which collectively comprise the Tax Collector’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Larry H. Ray Tax Collector 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2017 and 2016, and the respective changes in financial position for the years then ended and the budgetary comparison for the general fund thereof for the year ended September 30, 2017, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2017 and 2016, and the changes in its financial position for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2017 on our consideration of the Tax Collector’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the Tax Collector’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida December 27, 2017 Collier County, Florida Tax Collector Balance Sheets – General Fund See accompanying Notes to Financial Statements. 3   2017 2016 Assets Cash and cash equivalents 7,222,230$ 7,643,628$ Accounts receivable 4,678 - Due from other funds 62,712 70,902 Prepaid rent 28,921 26,796 Prepaid expense 6,842 - Security deposit 4,628 4,628 Total assets 7,330,011$ 7,745,954$ Liabilities and fund balance Liabilities: Accounts payable 191,873$ 17,329$ Due to Collier County, Florida Board of County Commissioners 6,255,593 6,865,518 Due to other governmental agencies 787,451 863,107 Other current liabilities 95,094 - Total liabilities 7,330,011 7,745,954 Fund balance - - Total liabilities and fund balance 7,330,011$ 7,745,954$ September 30,     Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance General Fund See accompanying Notes to Financial Statements. 4   2017 2016 Revenues: Commissions and fees 20,996,583$ 19,579,160$ Miscellaneous 453,665 277,346 Total revenues 21,450,248 19,856,506 Expenditures: General government: Personal services 10,507,089 10,126,106 Operating 2,125,375 1,675,462 Capital outlay 1,774,740 326,313 Total expenditures 14,407,204 12,127,881 Excess of revenues over expenditures 7,043,044 7,728,625 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (6,255,593) (6,865,518) Distribution of excess commissions and fees to other governmental agencies (787,451) (863,107) Total other financing uses (7,043,044) (7,728,625) Net change in fund balance - - Fund balance, beginning of year - - Fund balance, end of year -$ -$ Year Ended September 30,   Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual General Fund Year Ended September 30, 2017 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 20,234,760$ 20,234,760$ 20,996,583$ 761,823$ Miscellaneous 249,200 249,200 453,665 204,465 Total revenues 20,483,960 20,483,960 21,450,248 966,288 Expenditures: General government: Personal services 10,798,666 10,729,666 10,507,089 222,577 Operating 2,558,388 2,627,388 2,125,375 502,013 Capital outlay 1,932,462 1,932,462 1,774,740 157,722 Total expenditures 15,289,516 15,289,516 14,407,204 882,312 Balance of revenues over expenditures 5,194,444 5,194,444 7,043,044 1,848,600 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (4,613,677) (4,613,677) (6,255,593) (1,641,916) Distribution of excess commissions and fees to other governmental agencies (580,767) (580,767) (787,451) (206,684) Total other financing uses (5,194,444) (5,194,444) (7,043,044) (1,848,600) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Collier County, Florida Tax Collector Statements of Fiduciary Net Position Agency Funds See accompanying Notes to Financial Statements. 6   2017 2016 Assets Cash and cash equivalents 6,271,609$ 6,657,055$ Accounts receivable 50,324 27,270 Total assets 6,321,933$ 6,684,325$ Liabilities Due to other funds 62,712$ 70,895$ Due to Collier County, Florida Board of County Commissioners 879,823 952,005 Due to other governmental agencies 5,342,341 5,608,295 Due to individuals and businesses 37,057 53,130 Total liabilities 6,321,933$ 6,684,325$ September 30,     Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 7 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector’s operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector’s office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector’s financial statements include only the funds of the Tax Collector’s office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Tax Collector. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 8 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheets. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector’s only governmental fund is the general fund. The general fund is used to account for the general operations of the Tax Collector and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Tax Collector’s revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt; earlier if the “susceptible to accrual” criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 9 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Agency funds – Fiduciary funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use-transfer out in the accompanying financial statements. Compensated Absences All full-time employees of the Tax Collector are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 10 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Florida Statutes, Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. Chapter 197, Florida Statutes, governs property tax collections as follows: Current Taxes All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1% for payment in February. Unpaid Taxes – Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. The Tax Collector must receive payment before the certificates are delivered. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tax Deeds Two years after the purchase of a tax certificate the owner may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 11 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these financial statements requires management of the Tax Collector to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector’s annual budget. The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector’s total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 12 3. Cash At September 30, 2017 and 2016, the carrying value of the Tax Collector’s cash was as follows: 2017 2016 Carrying Carrying Value Value Cash on hand 36,338$ 35,443$ Demand deposits 13,457,501 14,265,240 Total cash and cash equivalents 13,493,839$ 14,300,683$ Type Such amounts are reported as $7,222,230 and $6,271,609 for 2017 and $7,643,628 and $6,657,055 for 2016 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2017, the Tax Collector’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Tax Collector’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 13 3. Cash (continued)  Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Tax Collector are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2017: October 1, 2016 Additions Deletions/ Reclassifications September 30, 2017 Capital Assets not depreciated: Construction in progress 20,384$ 1,689,350$ (11,591)$ 1,698,143$ Total assets not depreciated 20,384 1,689,350 (11,591) 1,698,143 Infrastructure 11,735 - - 11,735 Buildings - - - - Improvements other than buildings 111,914 - (2,830) 109,084 Machinery and equipment 2,380,408 85,390 (581,687) 1,884,111 Total Capital Assets 2,524,441 1,774,740 (596,108) 3,703,073 Less accumulated depreciation: (2,189,005) (118,775) 594,385 (1,713,395) Total capital assets, net 335,436$ 1,655,965$ (1,723)$ 1,989,678$ Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 14 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2016: October 1, 2015 Additions Deletions/ Reclassifications September 30, 2016 Capital Assets not depreciated: Construction in progress -$ 20,384$ -$ 20,384$ Total assets not depreciated - 20,384 - 20,384 Infrastructure 11,735 - - 11,735 Buildings - 62,174 (62,174) - Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,222,198 243,755 (85,545) 2,380,408 Total Capital Assets 2,345,847 326,313 (147,719) 2,524,441 Less accumulated depreciation: (2,157,216) (117,334) 85,545 (2,189,005) Total capital assets, net 188,631$ 208,979$ (62,174)$ 335,436$ 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2016 Increase Decrease 2017 Accrued compensated absences 1,173,838$ 681,407$ (622,366)$ 1,232,879$ October 1, September 30, 2015 Increase Decrease 2016 Accrued compensated absences 1,224,908$ 596,587$ (647,657)$ 1,173,838$ Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 15 5. Long-Term Liabilities (Continued) Of these liabilities, approximately $650,000 is expected to be paid during the fiscal year ending September 30, 2018, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Tax Collector are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 16 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 17 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 18 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 19 6. Pension Plans (continued) FRS Investment Plan (continued) As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2017, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 20 6. Pension Plans (continued) After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector’s contributions made to the plans during the years ended September 30, 2017, 2016, and 2015 were $655,667, $606,522, and $598,808, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Benefits (OPEB) In accordance with Section 112.0801, Florida Statutes, the Tax Collector participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 21 8. Related Party Transactions During the fiscal years ended September 30, 2017 and 2016, the Board paid commissions and fees to the Tax Collector that amounted to $19,051,991 and $17,638,997, respectively. At September 30, 2017 and 2016, the Tax Collector had a payable due to the Board of $7,135,416 and $7,817,523, respectively, comprised as follows: 2017 2016 Distribution of unused commissions and fees 6,255,593$ 6,865,518$ Agency funds due to the Board 879,823 952,005 Total 7,135,416$ 7,817,523$ 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Tax Collector participates in the County’s self-insurance program. During the years ended September 30, 2017 and 2016, the Tax Collector was charged $3,031,659 and $2,948,054, respectively, by the County for participation in the risk management program. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 22 9. Risk Management (continued) The County provides coverage for up to $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third-party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector has noncancelable operating leases for certain office facilities that were utilized solely by the Tax Collector for fiscal year 2016. The two current leases include options for a 5-year renewal with an annual escalation clauses ranging from 1-5% annually. The following is a schedule of future minimum lease payments under the operating leases: Fiscal year ending September 30: 2018 244,360$ 2019 250,334 2020 199,976 2021 146,800 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2017 and 2016 23 10. Commitments and Contingencies (continued) Rental expense for all operating leases in the aggregate was $336,837 and $378,915 for the years ended September 30, 2017 and 2016, respectively. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2017 or 2016. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector. CliftonLarsonAllen LLP CLAconnect.com  24 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Larry H. Ray Tax Collector Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the Tax Collector’s basic financial statements, and have issued our report thereon dated December 27, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Larry H. Ray Tax Collector    25 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Tax Collector’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida December 27, 2017 CliftonLarsonAllen LLP CLAconnect.com 26 MANAGEMENT LETTER Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector) as of and for the year ended September 30, 2017, and have issued our report thereon dated December 27, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated December 27, 2017 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Larry H. Ray Tax Collector    27 Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 27, 2017 CliftonLarsonAllen LLP CLAconnect.com   28 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Larry Ray Tax Collector Collier County, Florida We have examined the Collier County Tax Collector, Collier County, Florida’s (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2017. Management of the Tax Collector is responsible for the Tax Collector’s compliance with the specified requirements. Our responsibility is to express an opinion on the Tax Collector’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Tax Collector complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Tax Collector complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector’s compliance with specified requirements. In our opinion, the Tax Collector complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2017. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 27, 2017 THIS PAGE INTENTIONALLY LEFT BLANK