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CAFR Year End 09-30-2018Collier County, Florida Comprehensive Annual Financial Report Year Ended September 30, 2018                                                                On the cover:  Lake Avalon at Sugden Regional Park    COMPREHENSIVE ANNUAL FINANCIAL REPORT  FOR FISCAL YEAR ENDED  SEPTEMBER 30, 2018  COLLIER COUNTY, FLORIDA  BOARD OF COUNTY COMMISSIONERS  ANDY SOLIS, ESQ., CHAIRMAN – DISTRICT 2  WILLIAM L. MCDANIEL, JR. VICE‐CHAIRMAN – DISTRICT 5  DONNA FIALA – DISTRICT 1  BURT SAUNDERS, ESQ. – DISTRICT 3  PENNY TAYLOR – DISTRICT 4  COUNTY MANAGER  LEO E. OCHS, Jr.  COUNTY ATTORNEY  JEFFREY A. KLATZKOW  CLERK OF THE CIRCUIT COURT AND COMPTROLLER  CHIEF FINANCIAL OFFICER  CRYSTAL K. KINZEL  DIRECTOR OF FINANCE AND ACCOUNTING  DEREK M. JOHNSSEN, CPA  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, 2018  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 Supplementary Information .............................................................................................................................. 84    Combining and Individual Fund Financial Statements and Other Supplemental Information:  Nonmajor Governmental Funds  Combining Balance Sheet  ................................................................................................................................................... 92  Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................ 100  Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual (Non‐GAAP) .... 108    Nonmajor Enterprise Funds  Combining Statement of Net Position .............................................................................................................................  134  Combining Statement of Revenues, Expenses and Changes in Net Position .................................................................  135  Combining Statement of Cash Flows ................................................................................................................................ 136    Internal Service Funds  Combining Statement of Net Position .............................................................................................................................  138  Combining Statement of Revenues, Expenses and Changes Net Position .....................................................................  139  Combining Statement of Cash Flows ...............................................................................................................................  140    Fiduciary Funds  Combining Statement of Fiduciary Net Position .............................................................................................................  142  Combining Statement of Changes in Fiduciary Net Position ........................................................................................... 143  COLLIER COUNTY, FLORIDA  COMPREHENSIVE ANNUAL FINANCIAL REPORT  YEAR ENDED SEPTEMBER 30, 2018  TABLE OF CONTENTS ‐ CONTINUED       Component Units  Combining Statement of Net Position .............................................................................................................................. 146  Combining Statement of Activities ................................................................................................................................... 147    Other Supplemental Information  Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ...................................... 150    STATISTICAL SECTION (UNAUDITED)    Net Position by Component .............................................................................................................................................. 152  Change in Net Position .....................................................................................................................................................  154  Governmental Activities Tax Revenues by Source ........................................................................................................... 156  Fund Balances of Governmental Funds ...........................................................................................................................  157  Changes in Fund Balances of Governmental Funds ......................................................................................................... 158  Assessed Value and Estimated Actual Value of Taxable Property ..................................................................................  160  Property Tax Rates – All Direct and Overlapping Governments .....................................................................................  161  Principal Tax Payers County‐Wide ...................................................................................................................................  162  Property Tax Levies and Collections ................................................................................................................................  163  Ratios of Outstanding Debt by Type ................................................................................................................................  164  Legal Debt Margin Information ........................................................................................................................................  165  Direct, Overlapping and Underlapping Governmental Activities Debt ..........................................................................  165  Pledged‐Revenue Coverage .............................................................................................................................................  166  Demographic and Economic Statistics .............................................................................................................................  167  Principal Employers ..........................................................................................................................................................  168  Budgeted Full‐Time Equivalent County Employees by Function ....................................................................................  169  Operating Indicators by Function ....................................................................................................................................  170  Capital Asset Statistics by Function .................................................................................................................................  171    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 ................................................................................................................................................................... 175  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 ..................................................................................................................... 177  Schedule of Expenditures of Federal Awards and State Financial Assistance ................................................................. 180  Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ........................................... 186  Schedule of Findings and Questioned Costs ..................................................................................................................... 187        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   February 26, 2019      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, 2018.  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, 2018 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.       Crystal K. Kinzel - 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 Governmental accounting and auditing principles require that management provide a narrative  introduction, overview and analysis to accompany the basic financial statements in the form of  Management’s  Discussion  and  Analysis  (MD&A).    This  letter  of  transmittal  is  designed  to  complement MD&A and the two should be read in concert.  Collier County’s MD&A can be found  in the Financial Section immediately following the independent auditors’ report.      PROFILE OF THE GOVERNMENT    Collier County is a Constitutional form of government and was established in 1923 under the  Constitution and the laws of the State of Florida.  The Board of County Commissioners is the  legislative body for Collier County and is made up of five residents elected by voters.  In addition  to the County Commissioners, voters elect the following five constitutional officers: the Clerk of  the Circuit Court 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 second largest county at 2,026 square miles, is on the southwest coast  of Florida, directly west of Miami.  With a 2018 population of 368,534 (a 10.7 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. 329,421) and three municipalities: the Cities of Naples (pop. 21,279), Marco Island  (pop. 17,561) and Everglades (pop. 273).  The County’s economic base is concentrated in tourism,  agriculture, fishing, construction, 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 2018 totaled $88.3 billion, or a very high  $239,561 per capita.  The County’s millage for General Fund operations in fiscal year 2018  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 2018 annual County unemployment rate stood at 3.3%, while the statewide average is 3.4%.   Income levels are high, with a per capita personal income of $87,829.  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 2019‐2023 is $1.1 billion. Included in the County’s current CIP for fiscal years 2019‐2023  are  approximately  $354.3  million  in  water  and  wastewater  projects,  $300.4  million  in  transportation projects, $64.4 million in stormwater projects and $118.2 million in government  facilities projects.  In addition, parks and recreation projects of approximately $53.7 million are  planned, as well as $61.9 million for tourist development funded projects, $33.9 million in solid  waste projects, $50.7 million in public safety projects and miscellaneous projects totaling $15.3  million.  Approximately $368.5 million of the fiscal year 2019 – 2023 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 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 2018, Collier County partially refunded  its  Series 2010 Special Obligation Revenue Bonds.  This refinancing achieved a net present value  savings of over 5% and is described in more detail 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 funds 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 (Florida PRIME), U.S. treasury securities,  U.S. agency securities, commercial paper and bankers’ acceptances.  The par weighted average  maturity of the total managed portfolio, to first call or maturity, was .85 years as of September  30, 2018.  The total return for fiscal year 2018 was 1.07%, a reflection of overall market interest  rate increases in fiscal year 2018.  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, 2017.   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‐two years, from fiscal year 1986 to 2017.  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, 2017.  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‐ two consecutive years.    The Government Finance Officers Association of the United States and Canada presented an  award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court  and Comptroller for its annual budget for the fiscal year beginning October 1, 2017.  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 sixteen 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 Edith Manuel, Finance Manager, Leslie Miller, 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, Department Heads and the Division 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  Derek M. Johnssen, Director of Finance and Accounting, at (239) 252‐7863.  Respectfully,  Crystal K. Kinzel  Clerk of the Circuit Court and Comptroller  Derek M. Johnssen, CPA  Deputy Clerk  Director of Finance and Accounting  Kelly Jones, CGFO  Deputy Clerk  Assistant Director of Finance and Accounting  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, 2017. This was the thirty-second 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 Commissioners Phone 252-8097 Donna Fiala William L. McDaniel, Jr. Burt Saunders Andy Solis Penny Taylor Jeff Klatzkow County Attorney Phone 252-8400 Leo Ochs, Jr. County Manager Phone 252-8383 Corporate Business Operations Sean Callahan, Director Phone 252-8383 Pelican Bay Services Neil Dorrill, Director Phone 597-1749 Bureau of Emergency Services Communications & Customer Relations Fleet Management Human Resources Information Technology Procurement Services Records Management Risk Management CITIZENS Abe Skinner Property Appraiser 252-8141 Larry Ray Tax Collector 252-8171 Kevin Rambosk Sheriff 252-4434 Crystal K. Kinzel Clerk of Courts 252-2646 Jennifer Edwards Supervisor of Elections 252-8450 Judicial Courts & Judges 252-8800 Administrative Services Department Len Golden Price, Department Head Phone 252-3646 Domestic Animal Services Community and Human Services Health Library Museum Operations and Veterans Services Parks & Recreation Public Transit & Neighborhood Enhancement University Extension Service Public Services Department Steve Carnell, Department Head Phone 252-8468 Building Plan Review &Inspection Capital Project Planning, Impact Fees & Program Management Code Enforcement Development Review Operations & Regulatory Management Operations Support Road Maintenance Transportation Engineering Zoning Growth Management Department Thaddeus Cohen, Department Head Phone 252-2370 Facilities Management Operation Support Engineering & Project Management Solid & Hazardous Waste Wastewater Water Public Utilities Department G. George Yilmaz, Department Head Phone 252-2540 Tourism Jack Wert, Director Phone 252-2384 Community Redevelopment Areas Debrah Forester, Director Phone 643-1115 Economic & Business Development Jace Kentner,Director Phone 252-8358 Corporate Financial & Management Services Mark Isackson, Director Phone 252-8383 Mark Strain Chief Hearing Examiner Phone 252-4446 Nick Casalanguida Deputy County Manager Phone 252-8383 Michael Nieman Corporate Compliance and Internal Review Manager Phone 252-8383     FINANCIAL SECTION   THIS PAGE INTENTIONALLY LEFT BLANK 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, 2018, 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, 2018, 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 accordance with accounting principles generally accepted in the United States of America. 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 pages 84 and 85, and the schedules of other postemployment benefits total OPEB liability and related ratios for the retiree health plans on page 86 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual nonmajor 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 not a required part of the basic financial statements. 2 Honorable Board of County Commissioners Collier County, Florida Other Matters (Continued) Other Information (Continued) The combining and individual nonmajor 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 February 15, 2019, 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 results 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 February 15, 2019 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, 2018.  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, 2018 by $2,558,340,147.  Of this amount, $113,870,089 represents unrestricted net position and may  be used to meet future County obligations.  Unrestricted net position decreased by $30,720,662 from the  previous year.     The County’s total net position increased by $44,611,546 when compared to fiscal year 2017, with a  $49,305,713 increase from governmental activities and a $4,694,167 decrease resulting from business‐ type activities.      As of September 30, 2018, Collier County’s governmental fund financial statements showed combined  ending fund balances of $500,349,542, an increase of $40,707,208 over the previous fiscal year.  Of the  total combined ending governmental fund balance, $77,091,330 is reported as unassigned.        The General Fund reported an unassigned fund balance of $77,341,766 at September 30, 2018, an  increase in unassigned General Fund balance of $22,536,663 when compared to September 30, 2017.     Total bonded debt, notes, outstanding loans and capital leases owed by Collier County increased by  $10,705,394  during fiscal year 2018, with a decrease in governmental activities debt of $9,211,190 and  an increase in the business‐type activities debt of $19,916,584.  In December of 2017, the County issued  the Series 2017 Special Obligation Refunding Revenue Note to current refund the District’s outstanding  Special Obligation Revenue Bonds, Series 2010.  In February 2018, the County Water and Sewer District  issued the Series 2018 Collier County Water and Sewer Revenue Bond to acquire the Golden Gate Utility  System.  In April 2018, the County issued a $12,000,000 commercial paper loan to acquire land for the  County’s regional tournament caliber sports complex.  Additional information on debt activity can be  found in Note 6 to the financial statements beginning on page 55.      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.        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, 2018.  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 82 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 89.  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 $2,558,340,147 as of the fiscal year ending September 30,  2018 for Collier County.  Positive balances were reported in all categories of net position in the governmental and business‐ type activities for fiscal year 2018 with the exception of a negative unrestricted net position for governmental activities.  The  negative unrestricted net position for governmental activities is primarily a result of reporting the long‐term net pension  liability associated with the County and should not be considered, solely, as evidence of financial difficulties.       Collier County’s net position at September 30, 2018 decreased by $30,720,662 for unrestricted net position and increased  $24,485,648 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 a 9.5% increase in restricted net position related to growth related capital  expansion.          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 80.1% of net position as of September 30, 2018,  compared to 79.5% as of September 30, 2017.   During fiscal yea r 2018, the County’s net investment in capital assets increased  by $50,846,560.  Capital assets are used to provide services to the citizens and consequently do not represent spendable  resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets.      The following are Collier County’s net position and changes in net position for the fiscal years ended September 30, 2017 and  2018, shown in condensed form:    2018 2017 2018 2017 2018 2017 2017‐2018 Current and other assets 626.8$         572.0$      233.4$    261.8$   860.2$         833.8$      3.2% Capital assets, net 1,589.0        1,574.6    955.9      912.5      2,544.9        2,487.1    2.3%   Total assets 2,215.8        2,146.6     1,189.3   1,174.3  3,405.1        3,320.9    2.5% Deferred outflows    of resources 123.4            121.6       26.3        26.3       149.7            147.9        1.2% Long‐term liabilities 591.3            591.5        230.8      210.7     822.1            802.2        2.5% Current liabilities 102.5           92.5           41.6        44.5       144.1            137.0        5.2%   Total liabilities 693.8            684.0        272.4      255.2     966.2            939.2        2.9% Deferred inflows    of resources 25.5              13.6          4.8           2.3          30.3             15.9           89.3% Net position: Net investment in    capital assets 1,287.2        1,257.7    763.2      741.9      2,050.4        1,999.6    2.5% Restricted 362.0            336.9       32.0        32.6       394.0            369.5        6.6% Unrestricted (deficit)(29.3)             (24.0)         143.2      168.6     113.9            144.6        (21.2%)   Total net position 1,619.9$     1,570.6$  938.4$    943.1$    2,558.3$     2,513.7$  1.8%  Collier County's Schedule of Net Position  (in millions) Total Governmental Activities Business‐type  Activities Total  Percentage  Change       7     2018 2017 2018 2017 2018 2017 2017‐2018 Revenues Program revenues:  Fines, fees and charges for services 78.0$         69.3$         214.1$      197.1$      292.1$      266.4$       9.6%  Operating grants and contributions 29.6          26.6          16.4          5.0             46.0          31.6           45.6%  Capital grants and contributions 47.6          38.1          38.7          27.0          86.3          65.1           32.6% General revenues:  Property taxes 337.4        312.6        ‐              ‐               337.4        312.6         7.9%  Other taxes and shared revenues 114.3        104.6        ‐              ‐               114.3        104.6         9.3%  Interest income 6.9            3.6            2.6            1.4            9.5            5.0             90.0%  Miscellaneous 18.1          9.7            8.4            0.1             26.5          9.8             170.4%   Total revenues 631.9        564.5        280.2        230.6        912.1        795.1         14.7% Expenses  General government 126.9        108.4        ‐              ‐               126.9        108.4         17.1%  Public safety 223.2        225.3        ‐              ‐               223.2        225.3         (0.9%)  Physical environment 37.8          17.9          ‐              ‐               37.8          17.9           111.2%  Transportation 83.4          75.6          ‐              ‐               83.4          75.6           10.3%  Economic environment 10.4          8.5            ‐              ‐               10.4          8.5             22.4%  Human services 16.6          15.5          ‐              ‐               16.6          15.5          7.1%  Culture and recreation 58.1          51.9          ‐              ‐               58.1          51.9           11.9%  Interest on long‐term debt 9.7             11.3          ‐              ‐               9.7             11.3           (14.2%)  Water and sewer ‐              ‐               144.1        144.8        144.1        144.8         (0.5%)  Solid waste ‐              ‐               106.8        43.7           106.8        43.7           144.4%  Emergency medical services ‐              ‐               32.3          28.6          32.3          28.6           12.9%  Airport authority ‐              ‐               5.5            4.9            5.5            4.9             12.2%  Mass transit ‐              ‐               12.7          11.4          12.7          11.4           11.4%   Total expenses 566.1        514.4        301.4        233.4        867.5        747.8         16.0% Increase (decrease) in net    position before net transfers     65.8          50.1           (21.2)         (2.8)            44.6          47.3           (5.7%) Transfers, net (16.5)         (14.8)         16.5          14.8          ‐              ‐               ‐ Change in net position 49.3          35.3          (4.7)            12.0          44.6          47.3           (5.7%) Net position – beginning 1,570.6     1,556.0     943.1        928.1         2,513.7     2,484.1     1.2% Restatement of net position, net ‐               (20.7)         ‐               3.0            ‐               (17.7)          (100%) Net position – ending 1,619.9$   1,570.6$   938.4$      943.1$       2,558.3$   2,513.7$   1.8% 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 2018 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 53% Fines, Fees and Charges  for Services 12% Operating Grants and  Contributions 5% Capital Grants and  Contributions 8% Gas Taxes 4% Sales Taxes 7% Tourist Taxes 4% Other Income 7% Revenue by Type Governmental Activities Fiscal Year 2018   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  200 Water and Sewer Solid Waste Emergency Medical Services Airport Authority Mass TransitMillionsRevenues and Expenses Business‐type Activities Fiscal Year 2018 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 76% Operating Grants and  Contributions 6% Capital Grants and  Contributions 14% Other Income 4% Revenue by Type Business‐type Activities Fiscal Year 2018   10     Governmental Activities     The current year increase in the net position of governmental activities amounted to $49,307,188, an increase of 3.1% when  compared to the previous year’s net position.  The previous fiscal years’ increase in net position was 2.3%.  The current years’  increase is mainly due to the following:     Overall, revenues related to governmental activities increased by 11.9%, or $67,353,008 while expenses  increased by 10.0%, or $51,664,218.     Governmental  activities  revenues  increased  primarily  due  to  an increase in total ad valorem taxes  collected in fiscal year 2018 of $24,814,551 when compared to fiscal year 2017. The increase in ad valorem  revenues was due to an 8.4% increase in county wide taxable value.  In addition, Sales Tax and Gas Tax  collections increased a combined 5.1% over fiscal year 2017, or $3,243,896.         Governmental  activities  expenses  increased  significantly  due  to  hurricane  related  repairs.    General  government expense increased $18,531,640 primarily due to Hurricane Irma.  Physical environment  expenses increased $19,948,777 related to Hurricane Irma, including a $5,191,707 waterway debris  cleanup effort.  Transportation expenses increased $7,796,897 due to both Hurricane Irma as well as a  $1,608,759 increase in depreciation expense as a result of capitalizing $48,712,267 in various road and  bridge projects during the year.   Culture and recreation also experienced an increase in expenditures of  $6,152,425 due to the hurricane.    Business‐type Activities     The decrease in net position related to business‐type activities amounted to $4,694,167 in the aggregate, representing a 0.5%  decrease over the previous year’s net position.  The previous fiscal year’s increase in net position was 1.3%.  The current  year’s decrease is mainly due to the following:     Collier County Water and Sewer District (District) saw an increase of $39,566,463 in net position.  The  increase in the District’s net position is largely due to a 2.9% rate increase that went in to effect October  1, 2017 as well as an increase in the number of active customers brought on by new construction and the  acquisition  of  the  Golden  Gate  Utility  system.    In  addition,  water  and  sewer  capital  grants  and  contributions increased by 37.9%, largely due to increases in developer infrastructure contributions.       Solid Waste Disposal experienced a decrease in net position of $44,150,971.    This decrease is primarily  due to a $58,552,728 increase in operating expenses related to Hurricane Irma debris removal. This was  offset by a $5,349,598 increase in charges for services due to a rate increase of approximately 9.0% for  residential assessment fees and a 2.9% increase in tipping fees.         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, 2018, Collier County governmental funds reported combined fund balances of $500,349,542, an increase  of $40,707,208 when compared to prior year combined fund balances.  The governmental funds had non‐spendable fund  balances of $10,779,220 consisting of inventory, prepaid items, notes receivable and advances to other funds.  The restricted  fund balance was $354,820,430 and consists of monies whose expenditure is externally constrained by grantors, creditors,  binding law or enabling legislation.  Of the remaining $134,749,892 in fund balance, $34,792,876 is classified as committed,  $22,865,686 is recorded as assigned and $77,091,330 is recorded as unassigned.     11     The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2018:     The General Fund is the primary operating fund of Collier County.  At September 30, 2018, total fund  balance in the General Fund was $82,028,797, of which $77,341,766 was unassigned.  As a percentage of  total general fund expenditures and net transfers, the unassigned portion is 21.9%.  The total fund balance  increased by $19,799,346 or 31.8%, compared to the September 30, 2017 total fund balance.     The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the  Bayshore Gateway Triangle.  During fiscal year 2018, the Bayshore Gateway Community Redevelopment  Agency collected $1,562,600 in tax increment revenues and was reimbursed $526,632 for fire suppression  system improvements.  In addition, the agency received $131,192 in miscellaneous revenues for rents.    Operating expenditures of $1,168,361, mainly personal services and the fire suppression improvements,  were associated with the Bayshore Gateway Triangle Community Redevelopment Agency.  In addition,  capital expenditures of $379,882 were made for stormwater improvements.       The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee.   During fiscal year 2018, the Immokalee Community Redevelopment Agency collected $628,800 in tax  increment revenues.  Operating expenditures of $347,941, mainly personal services, were associated with  the Immokalee Community Redevelopment Agency.  In addition, capital expenditures of $662,255 were  made for computer equipment and sidewalk projects in the district.      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, 2018, total net position amounted to $939,595,210 for enterprise funds, as compared to $941,459,899, as  of September 30, 2017, a decrease of $1,864,689.  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, 2018, the Collier County Water and Sewer District (District) reported capital grants and  contributions of $33,751,741, which consists of water and sewer impact fees of $14,087,562, $19,350,530 in developer  infrastructure contributions and other capital contributions of $313,649.    2018 2017 County Water and Sewer 9,585,177$        (6,160,677)$       Solid Waste Disposal (55,790,046)      1,064,295           Emergency Medical Services (18,835,777)      (16,629,468)       Non‐major enterprise funds (12,838,906)      (11,314,788)       Total (77,879,552)$    (33,040,638)$     Net Operating Income/(Loss)     The Collier County Water and Sewer District’s net operating income increased by $15,745,854 when compared to fiscal year  2017.  The increase in net operating income was primarily the r esult of a 2.9% rate increase effective October 2017 in addition  to a 3.6% decrease in total operating expenses, including depreciation and amortization.   The District also added 3,713  customers with the acquisition of the Golden Gate Utility system in March 2018.  County Water and Sewer payments in lieu  of taxes paid to the General Fund of $6,482,800 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 $56,854,341 when compared to fiscal year 2017.  The  decrease in net operating income was primarily the result of a 140.7% increase in total operating expenses, including  12     depreciation and amortization.  Of this increase in operating expenses, $58,552,728 was related to Hurricane Irma debris  removal.  The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $320,300 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 $2,206,309 when compared to fiscal year 2017.   The decrease in net operating income was the result of an 11.4% increase in total operating costs, coupled with a $1,024,667  increase in charges for services.  Operating expenses increased mainly due to increased personal services costs, including  pension expense.  Charges for services increased due to an increase in the collection efforts on receivables.      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 $2,544,943,669, 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 $57,886,738 when compared to the previous year.  There was an increase in the  governmental activities net capital assets of $14,475,849, or .9%, while the business‐type activities capital assets increased  by $43,410,889, or 4.8%.  The major capital asset activities during the current and previous fiscal years are as follows:       Capitalization as construction in process of $46,302,699 for governmental activity related costs including  $2,041,532 related to county wide 800 MHz system upgrades, $6,169,699 for the Eagle Lakes Community  Pool, $3,232,092 to convert the North Collier Regional Park facilities to artificial turf and $7,481,113 for  various bridge improvement projects.  The remaining $27,378,263 is related to $12,098,925 in other  transportation projects, $5,213,457 in other physical environment projects, $6,533,991 in culture and  recreation projects and $3,531,890 in other capital projects.     The business‐type activities capitalized $43,832,879 of construction in process during fiscal year 2018  including $2,933,428 for utility force main transmission system improvements, $8,584,792 for master  pump systems improvements, $4,985,563 for Vanderbilt Drive utility improvements and $5,026,945 for  Naples Park basin improvements.   In addition, $5,992,247 was related to the Solid Waste Northeast  recycling drop‐off center, $1,019,696 for the Marco Airport Apron and Terminal Upgrades and $1,018,376  for  the  Immokalee  Airport  Taxiway  improvements.    The  remaining $14,271,832  was  made  up  of  $10,765,382 in other County Water and Sewer projects, $938,342 in other solid waste projects and  $2,568,108 in various Mass Transit projects.      During fiscal year 2018, the County Water and Sewer District acquired the Golden Gate Utility.  As a result  of this acquisition, water and wastewater utility non‐depreciable assets of $4,868,672 and depreciable  capital assets of $24,409,284 were recorded in the business‐type activities.     Developer donated water and wastewater infrastructure in fiscal year 2018 amounted to $19,350,530 and  $11,641,549 in fiscal year 2017.   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 $16,579,584 for fiscal year 2018, compared to  $3,191,231 for fiscal year 2017.  Fiscal year 2018 land purchases were primarily related to the acquisition  of land for the amateur sports complex and various transportation projects.      Additional information regarding Collier County’s capital assets can be found in Note 5 beginning on page 54 of this report.     13     Debt Administration    At September 30, 2018, Collier County had total bonded debt, notes, loans and capital leases, of $493,453,831, an increase  of $10,705,394 from the previous year.  The following table illustrates the balances of all bonds, notes, loans and capital  leases for the fiscal years ended September 30, 2018 and 2017:    2018 2017 Limited General Obligation Bonds 2,037,028$          2,499,190$           Revenue Bonds 396,199,714        386,477,952         Notes and Loans Payable 94,459,755          92,590,646           Capital Leases 757,334                1,180,649               Total 493,453,831$     482,748,437$      Outstanding Debt     On December 28, 2017, Collier County issued the Series 2017 Special Obligation Refunding Revenue Note (Bank Term Loan)  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.    On February 28, 2018 the Series 2018 Collier County Water and Sewer Revenue Bond (Bank Term Loan) was issued in the par  amount of $35,965,000 for purposes of acquiring the Golden Gate Utility 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.    On April 30, 2018, Collier County issued a $12,000,000 commercial paper loan through the Florida Local Government Finance  Commission’s Pooled Commercial Paper Program.  The loan was issued for purposes of acquiring land for the construction of  the County’s regional tournament caliber amateur sports complex.    Collier County’s Special Obligation Revenue Bonds carry ratings of Aa2, AAA and AA by Moody’s, Standard and Poor’s and  Fitch Ratings, Inc., respectively.  The Series 2017 Special Obligation Refunding Revenue Note (Bank Term Loan) was issued as  a direct placement with a commercial bank and therefore carries an implied rating of Aa2, AAA 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 Bond (Bank Term  Loan) was issued as a direct placement with a commercial bank and therefore carries 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, 2015 and 2018 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 55 of this report.      General Fund Budgetary Highlights      During the current fiscal year, the General Fund expenditure appropriations increased by $3,912,600.  Significant variances  between the original budget and the final amended budget are listed below:     $395,654  decrease  in  other  general  administrative  operating  to provide  funding  in  other  areas  for  computer purchases and debt service payments.     $290,000 decrease in facilities management personal services and a $1,181,550 increase in facilities  management operating for a preventative maintenance initiative in addition to hurricane Irma repairs.       $1,733,000 increase in Sheriff’s personal services related to special detail duties and $396,217 in Sheriff’s  operating to provide funds for education and training programs.  14      $546,988  increase  in  Emergency  Management  Administration  operating  due  to  hurricane  Irma  and  unplanned computer purchases.     $412,350 increase in Mental Health operating due to re‐budgeting of lapsed appropriations from the  previous fiscal year.    Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2018.   Tax revenues were under budget by $10,653,664 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.  Intergovernmental revenues were  $12,613,629 over the amount budgeted primarily due to an increase in the amount of state revenue sharing and sales tax.      Economic Factors and Year 2019 Budgets and Rates     The following factors were taken into account in preparing the fiscal year 2019 budget:     A 6% 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 2.6% and 10%, respectively.     A 2.9% general wage adjustment along with a .6% market based pay plan maintenance component.       Maintain health care program contributions at 80% employer and 20% employee across all agencies  (excluding Sheriff and Tax Collector).    During fiscal year 2018, the General Fund unassigned fund balance increased by $22,536,663 to $77,341,766.  As of January  24, 2019, $60,057,613 of the fiscal year 2018 unassigned fund balance has been appropriated as carryforward for fiscal year  2018, with $42,510,470 budgeted in reserves.      Contact Information        This financial report is intended to give the user a general overview of Collier County Government’s finances.  Any questions  resulting from review of this information may be addressed to:    Collier County Clerk of the Circuit Court  Department of Finance and Accounting  3299 Tamiami Trail East, Suite #403  Naples, Florida 34112‐5746    Our office may also be contacted via the internet at www.collierclerk.com.   15 Governmental Business‐type Component Activities Activities Total Units ASSETS Current assets: Cash and investments 221,357,576$           169,362,166$           390,719,742$           264,511$              Cash with fiscal agent 11,790,009                ‐                                   11,790,009                ‐                              Trade receivables, net 835,923                      16,331,512                 17,167,435                 ‐                              Impact fee receivable 219,543                      ‐                                    219,543                      ‐                              Special assessments receivable   ‐                                    98,376                         98,376                         ‐                              Interest receivable 474,085                      474,744                      948,829                      ‐                              Due from other governments  9,462,459                   2,620,114                   12,082,573                 ‐                              Internal balances  842,181                      (842,181)                     ‐                                    ‐                              Deposits  6,253                           2,000                           8,253                           ‐                              Inventory  1,711,494                   6,510,267                   8,221,761                   ‐                              Prepaid costs  89,881                         22,643                         112,524                      ‐                              Restricted assets:  Cash and investments  22,956,540                 5,692,736                   28,649,276                 ‐                              Trade receivables, net  1,334,413                   9,066                           1,343,479                   ‐                              Notes receivable  54,612                         ‐                                    54,612                         ‐                              Interest receivable  702,544                      43,512                         746,056                      ‐                              Due from other governments  9,183,678                   3,326,267                   12,509,945                 ‐                              Deposits  1,875                           ‐                                    1,875                           ‐                              Inventory for resale  9,796,692                   ‐                                    9,796,692                   ‐                              Total current assets  290,819,758              203,651,222              494,470,980              264,511                Noncurrent assets:  Restricted assets:  Cash and investments  328,779,479              29,534,515                 358,313,994              ‐                              Notes receivable  375,672                      ‐                                    375,672                      ‐                              Impact fee receivable  5,228,917                   ‐                                    5,228,917                   ‐                              Special assessments receivable  1,405                           252,855                      254,260                     ‐                              Notes receivable 1,567,791                  ‐                                   1,567,791                  ‐                              Unamortized bond insurance 8,097                          ‐                                   8,097                          ‐                              Capital assets:  Land and non‐depreciable capital assets  481,003,646             104,292,241             585,295,887             ‐                              Depreciable capital assets, net 1,108,054,211          851,593,571             1,959,647,782          ‐                              Total noncurrent assets 1,925,019,218          985,673,182             2,910,692,400          ‐                              Total assets 2,215,838,976          1,189,324,404          3,405,163,380          264,511                DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings  13,030,836                3,981,935                  17,012,771                ‐                              Deferred outflows of resources related to OPEB 2,048,462                   ‐                                    2,048,462                   ‐                              Deferred outflows of resources related to pensions   108,307,202              22,311,036                 130,618,238              ‐                              Total deferred outflows of resources  123,386,500$            26,292,971$              149,679,471$            ‐$                           Primary Government COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2018 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 17,941,498$             15,709,906$             33,651,404$             ‐$                           Wages payable 9,007,016                  1,879,270                  10,886,286                ‐                              Retainage payable 1,346,210                  2,293,846                  3,640,056                  ‐                              Due to other governments 3,389,287                  10,592                        3,399,879                  ‐                              Self‐insurance claims payable 8,111,260                  ‐                                   8,111,260                  ‐                              Compensated absences 9,993,806                  2,521,534                  12,515,340                ‐                              Capital lease obligations 83,164                        347,776                     430,940                     ‐                              Notes payable 473,424                     6,977,250                  7,450,674                  ‐                              Unearned revenue 107,482                     40,517                        147,999                     ‐                              Net pension liability 1,609,089                  299,194                     1,908,283                  ‐                              Interest payable 4,241,749                  ‐                                   4,241,749                  ‐                              Bonds and loans payable 22,570,000                4,696,110                  27,266,110                ‐                              Liabilities payable from restricted assets:  Accounts payable 14,682,988                1,233,622                  15,916,610                ‐                              Wages payable 1,354,774                  136                             1,354,910                  ‐                              Retainage payable 1,811,119                  16,269                        1,827,388                  ‐                              Refundable deposits 879,839                     130,592                     1,010,431                  ‐                              Interest payable ‐                                   1,229,810                  1,229,810                  ‐                              Due to other governments 4,921,684                  69,022                        4,990,706                  ‐                              Unearned revenue ‐                                   129,516                     129,516                     ‐                              Notes payable ‐                                   2,391,307                  2,391,307                  ‐                              Bonds and loans payable ‐                                   1,565,370                  1,565,370                  ‐                              Total current liabilities 102,524,389             41,541,639                144,066,028             ‐                              Noncurrent liabilities:  Self‐insurance claims payable 4,024,813                  ‐                                   4,024,813                  ‐                              Compensated absences 19,635,831                630,385                     20,266,216                ‐                              Capital lease obligations 153,269                     173,125                     326,394                     ‐                              Landfill post‐closure liability ‐                                   1,750,180                  1,750,180                  ‐                              Total OPEB liability 25,762,960                 2,460,259                   28,223,219                 ‐                              Net pension liability  259,987,593              53,511,635                 313,499,228              ‐                              Notes payable  4,141,774                   68,576,000                 72,717,774                 ‐                              Bonds and loans payable, net  277,556,473              103,748,789              381,305,262              ‐                              Total noncurrent liabilities  591,262,713              230,850,373              822,113,086              ‐                              Total liabilities  693,787,102              272,392,012              966,179,114              ‐                              DEFERRED INFLOWS OF RESOURCES  Deferred inflows of resources related to OPEB 1,140,188                   58,678                         1,198,866                   ‐                              Deferred inflows of resources related to pensions   24,396,701                 4,728,023                   29,124,724                 ‐                              Total deferred inflows of resources 25,536,889                 4,786,701                   30,323,590                 ‐                              NET POSITION  Net investment in capital assets  1,287,184,579           763,258,712              2,050,443,291           ‐                              Restricted for:  Growth related capital expansion  111,165,092              19,503,905                 130,668,997              ‐                              Transportation capital projects  46,721,315                 ‐                                    46,721,315                 ‐                              Community development 46,589,583                 ‐                                    46,589,583                 ‐                              Tourist development  71,202,163                 ‐                                    71,202,163                 ‐                              Conservation Collier   32,778,883                 ‐                                    32,778,883                 ‐                              Community redevelopment  12,067,560                 ‐                                    12,067,560                 ‐                              Grants  11,707,199                 2,395,045                   14,102,244                 ‐                              Debt service  4,985,475                   9,782,838                   14,768,313                 ‐                              Court programs 11,647,142                 ‐                                    11,647,142                 ‐                              Public safety 7,089,936                   ‐                                    7,089,936                   ‐                              Nonexpendable purposes ‐ other  1,582,800                   ‐                                    1,582,800                   ‐                              Special revenues ‐ other  4,507,831                   ‐                                    4,507,831                   ‐                              Renewal and replacement  ‐                                    300,000                      300,000                      ‐                              Unrestricted  (29,328,073)               143,198,162              113,870,089              264,511                Total net position  1,619,901,485$         938,438,662$            2,558,340,147$         264,511$              Primary Government 17 Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Primary Government:  Governmental Activities:  General government 126,919,917$           37,703,116$             1,678,021$                3,087,390$                 Public safety 223,177,415             28,039,804                8,200,112                  4,316,622                   Physical environment 37,841,630                668,861                     5,495,873                  26,954,238                 Transportation 83,385,602                2,110,950                  5,616,730                  1,212,457                   Economic environment 10,374,348                1,076,812                  5,487,999                  8,940                           Human services 16,606,308                489,902                     2,810,173                  3,995                           Culture and recreation 58,041,633                7,885,810                  260,061                     12,061,362                 Interest and fiscal charges 9,736,602                  ‐                                   ‐                                   ‐                                    Total governmental activities 566,083,455             77,975,255                29,548,969                47,645,004                 Business‐type Activities:  Water and sewer 144,113,339             145,757,365             28,669                        33,751,741                 Solid waste 106,822,777             50,448,802                11,265,513                289,785                      Emergency medical services 32,275,014                12,835,588                654,593                     61,353                         Airport authority 5,532,858                  3,950,463                  ‐                                   1,861,193                   Mass transit 12,679,380                1,128,953                  4,477,478                  2,706,382                   Total business‐type activities 301,423,368             214,121,171             16,426,253                38,670,454                 Total primary government 867,506,823             292,096,426             45,975,222                86,315,458                 Component Units:  Industrial Development Authority  17,016$                     20,763$                     ‐$                                 ‐$                                  Health Facilities Authority  2,687                          55,438                        ‐                                   ‐                                    Housing Finance Authority  3,547                          ‐                                   ‐                                   ‐                                    Educational Facilities Authority  16,015                        14,584                        ‐                                   ‐                                    Total component units 39,265$                     90,785$                     ‐$                                 ‐$                                  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 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, 2018 Program Revenues 18 Governmental Business‐type Component Activities Activities Total Units (84,451,390)$            ‐$                                 (84,451,390)$            ‐$                                  (182,620,877)            ‐                                    (182,620,877)            ‐                                    (4,722,658)                 ‐                                   (4,722,658)                 ‐                                    (74,445,465)              ‐                                   (74,445,465)              ‐                                    (3,800,597)                 ‐                                   (3,800,597)                 ‐                                    (13,302,238)              ‐                                   (13,302,238)              ‐                                    (37,834,400)              ‐                                   (37,834,400)              ‐                                    (9,736,602)                 ‐                                   (9,736,602)                 ‐                                    (410,914,227)            ‐                                    (410,914,227)            ‐                                    ‐                                   35,424,436                35,424,436                ‐                                    ‐                                   (44,818,677)              (44,818,677)              ‐                                    ‐                                   (18,723,480)              (18,723,480)              ‐                                    ‐                                   278,798                     278,798                     ‐                                    ‐                                   (4,366,567)                 (4,366,567)                 ‐                                    ‐                                   (32,205,490)              (32,205,490)              ‐                                    (410,914,227)            (32,205,490)              (443,119,717)            ‐                                    3,747$                         52,751                         (3,547)                          (1,431)                          51,520$                      337,447,141             ‐                                   337,447,141             ‐                                    22,748,568                ‐                                   22,748,568                ‐                                    44,092,859                ‐                                   44,092,859                ‐                                    27,962,471                ‐                                   27,962,471                ‐                                    4,498,036                  ‐                                   4,498,036                  ‐                                    12,564,156                ‐                                   12,564,156                ‐                                    2,416,475                  ‐                                   2,416,475                  ‐                                    6,856,561                  2,601,695                  9,458,256                  275                              18,120,600                8,422,701                  26,543,301                ‐                                    (16,486,927)              16,486,927                ‐                                   ‐                                    460,219,940             27,511,323                487,731,263             275                              49,305,713                (4,694,167)                 44,611,546                51,795                         1,570,595,772          943,132,829             2,513,728,601          212,716                      1,619,901,485$        938,438,662$           2,558,340,147$        264,511$                    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  91,426,674$          2,142,613$                      712,670$                    414,210,757$        508,492,714$         Cash with fiscal agent  ‐                               ‐                                          ‐                                   11,790,009             11,790,009             Receivables:  Interest  179,024                  5,085                                 1,558                          846,821                   1,032,488                Trade, net  560,909                  ‐                                          ‐                                   1,589,634               2,150,543                Notes  1,567,791              ‐                                          ‐                                   430,284                   1,998,075                Impact Fee  ‐                               ‐                                          ‐                                   5,448,460               5,448,460                Special assessments  ‐                               ‐                                          ‐                                   1,405                       1,405                        Due from other funds  639,087                  ‐                                          ‐                                   12,263,324             12,902,411             Due from other governments  8,713,412              8,270                                 13,755                        9,607,884               18,343,321             Deposits  6,253                      ‐                                          625                              1,250                       8,128                        Inventory for resale  ‐                               9,566,959                         ‐                                   229,733                   9,796,692                Inventory  453,582                  ‐                                          ‐                                   882,664                   1,336,246                Advances to other funds  589,875                  ‐                                          ‐                                   5,658,893               6,248,768                Prepaid costs  33,215                    ‐                                          ‐                                   10,400                     43,615                     Total assets  104,169,822$        11,722,927$                    728,608$                    462,971,518$        579,592,875$         LIABILITIES, DEFERRED INFLOWS OF  RESOURCES AND FUND BALANCES  Liabilities:  Accounts payable  8,175,631$            49,273$                            9,574$                        23,119,824$           31,354,302$           Wages payable 8,023,477             10,702                             5,538                         2,057,510              10,097,227             Due to other funds 1,743,049             63,735                             67,116                       11,909,113            13,783,013             Due to other governments 3,385,962             210                                   ‐                                  4,924,764              8,310,936                Unearned revenues 400                         ‐                                         ‐                                  8,189                      8,589                        Refundable deposits 812,506                 1,500                                ‐                                  65,833                    879,839                   Retainage payable ‐                              ‐                                         ‐                                  3,157,329              3,157,329                Advances from other funds ‐                              ‐                                         178,901                     6,019,739              6,198,640                Total liabilities 22,141,025           125,420                           261,129                     51,262,301            73,789,875             Deferred inflows of resources:  Unavailable revenue ‐                              ‐                                         ‐                                  5,453,458              5,453,458                Fund balances:   Nonspendable 2,644,463             ‐                                         ‐                                  8,134,757              10,779,220             Restricted 306,146                 11,597,507                     467,479                     342,449,298          354,820,430           Committed ‐                              ‐                                         ‐                                   34,792,876            34,792,876             Assigned 1,736,422             ‐                                         ‐                                   21,129,264            22,865,686             Unassigned 77,341,766           ‐                                         ‐                                  (250,436)                77,091,330             Total fund balances  82,028,797           11,597,507                     467,479                     406,255,759          500,349,542           Total liabilities, deferred inflows of   resources and fund balances    104,169,822$       11,722,927$                   728,608$                   462,971,518$       579,592,875$         The notes to the financial statements are an integral part of this statement.   COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2018 20 500,349,542$            Land and other non‐depreciable assets  436,764,337$            Construction in progress  44,239,309                 Depreciable assets, net of $1,011,957,391 in accumulated depreciation  1,088,907,646           1,569,911,292           8,097  5,453,458  Accrued interest on bonds (4,241,749)$               Bonds and notes payable (292,820,198)             Capital lease obligations (236,433)  Compensated absences (29,083,549)               Total OPEB liability (25,433,197)               Pension liability  (256,265,828)             Unamortized premium  (11,921,473)               (620,002,427)             13,030,836                 2,048,462  106,190,144              (1,132,324)                  (23,918,546)               67,962,951                 Total net position ‐ governmental activities 1,619,901,485$         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, motor  pool capital recovery 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, 2018 are: Unamortized deferred charges on refunding   OPEB deferred outflows  not reported in the funds.  Those assets consist of:   Pension deferred outflows  Pension deferred inflows  COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2018 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  285,593,995$        1,562,600$                      628,800$                     99,028,839$            386,814,234$         Licenses, permits and impact fees  215,860                  ‐                                          ‐                                     74,886,350              75,102,210             Intergovernmental  64,190,464            198,552                            13,754                          27,803,775              92,206,545             Charges for services  17,870,088            526,632                            529,648                        18,054,532              36,980,900             Fines and forfeitures  440,773                  ‐                                          ‐                                     1,934,145                 2,374,918                Interest income  1,655,421              27,080                              8,282                            4,441,850                 6,132,633                Special assessments  ‐                               ‐                                          ‐                                     4,789,426                 4,789,426                Miscellaneous  1,892,028              131,192                            ‐                                     2,503,337                 4,526,557                Total revenues  371,858,629          2,446,056                         1,180,484                    233,442,254            608,927,423           Expenditures: Current: General government  66,354,762            ‐                                          ‐                                     34,843,687              101,198,449           Public safety  167,021,759          ‐                                          ‐                                     31,074,841              198,096,600           Physical environment  683,887                  ‐                                          ‐                                     31,310,051              31,993,938             Transportation  343,564                  ‐                                          ‐                                     45,560,971              45,904,535             Economic environment  2,238,182              1,168,361                         347,941                        6,187,171                 9,941,655                Human services  11,844,305            ‐                                          ‐                                     4,004,540                 15,848,845             Culture and recreation  16,573,290            ‐                                          ‐                                     31,098,147              47,671,437             Debt service Principal 55,478                   ‐                                         ‐                                     21,808,781             21,864,259             Interest 7,707                     ‐                                         ‐                                     10,156,840             10,164,547             Fiscal charges ‐                              ‐                                         ‐                                    127,540                   127,540                   Capital outlay 15,470,157            379,882                            662,255                        66,358,999              82,871,293             Total expenditures  280,593,091          1,548,243                         1,010,196                    282,531,568            565,683,098           Excess (deficit) of revenues    over (under) expenditures  91,265,538            897,813                            170,288                        (49,089,314)             43,244,325             Other financing sources (uses): Loans issued ‐                               ‐                                          ‐                                     55,713,000              55,713,000             Sale of capital assets  952,480                  ‐                                          ‐                                     112,750                    1,065,230                Insurance proceeds  210,429                  ‐                                          ‐                                     3,552,168                 3,762,597                Payment to refunding escrow  ‐                               ‐                                          ‐                                     (44,525,435)             (44,525,435)            Transfers in  12,351,959            214,800                            85,000                          101,705,828            114,357,587           Transfers out  (84,981,060)           (634,700)                           (81,600)                         (47,212,736)             (132,910,096)          Total other financing sources (uses)  (71,466,192)           (419,900)                           3,400                            69,345,575              (2,537,117)              Net change in fund balances  19,799,346            477,913                            173,688                        20,256,261              40,707,208             Fund balances at beginning of year 62,229,451            11,119,594                      293,791                        385,999,498            459,642,334           Fund balances at end of year 82,028,797$          11,597,507$                    467,479$                     406,255,759$          500,349,542$         COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 The notes to the financial statements are an integral part of this statement.  22 40,707,208$              Capital outlay  82,871,293$              Depreciation expense  (70,024,109)               12,847,184                 669,515  (4,426)  (63,855)  (455,919)  Debt proceeds (55,713,000)$             Transfer to refunding escrow agent 41,110,000                 Bond and loan principal payments  21,784,891                 Payments on capital lease obligations  79,368 7,261,259  Compensated absences (1,119,590)$               OPEB expense (284,503)  Pension expense (18,614,260)               Accrued interest on bonds and loans 341,687  Amortization of bond insurance premium (2,491)  Amortization of deferred charges on refunding 1,681,793  Amortization of premium 1,949,931 (16,047,433)               4,392,180  Change in net position ‐ governmental activities  49,305,713$              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:   Debt proceeds provide current financial resources for governemntal funds, but issuing debt  increases liabilities in the statement of net position.  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, 2018 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 296,259,900$        296,259,900$        285,606,236$        (10,653,664)$          Licenses, permits and impact fees 317,300                  317,300                  215,860                  (101,440)                  Intergovernmental 50,753,000            50,753,000            63,366,629            12,613,629             Charges for services 20,917,326            22,907,368            17,870,088            (5,037,280)              Fines and forfeitures 401,000                  401,000                  440,773                  39,773                     Interest income 893,000                  893,000                  2,061,525                1,168,525                Miscellaneous  8,505,000               8,527,600               9,907,816               1,380,216                Total revenues 378,046,526          380,059,168          379,468,927          (590,241)                  Expenditures: Current: General government Board of County Commissioners personal services 1,129,500                1,136,800                1,135,169                1,631                        Board of County Commissioners operating 98,400                     102,400                   77,725                     24,675                     County manager administrative personal services 1,017,500                1,017,500                999,431                   18,069                     County manager administrative operating 63,300                     63,300                     40,064                     23,236                     Corporate planning and improvement personal services  608,100                   608,100                   602,577                   5,523                        Corporate planning and improvement operating 39,900                     39,900                     16,619                     23,281                     Budget and management personal services 701,600                  701,600                  669,007                  32,593                     Budget and management operating 91,700                     91,700                     48,826                     42,874                     Budget and management capital outlay 1,500                        1,500                        1,287                        213                           Administrative services personal services 2,806,800                2,736,057                2,630,241                105,816                   Administrative services operating 313,100                  412,800                  383,354                  29,446                     Administrative services capital outlay ‐                                 4,043                        4,043                        ‐                                 Human resources administration personal services 1,535,600                1,535,600                1,495,980                39,620                     Human resources administration operating 606,100                  613,800                  409,406                  204,394                   Human resources administration capital outlay 10,100                    10,100                    7,903                       2,197                        Clerk of the Circuit Court personal services 7,940,600                7,470,000                7,442,409                27,591                     Clerk of the Circuit Court operating 2,115,300                2,463,300                2,232,897                230,403                   Clerk of the Circuit Court capital outlay 205,300                  387,900                  386,830                  1,070                        Property Appraiser personal services 5,808,618                5,808,618                5,625,748                182,870                   Property Appraiser operating 1,841,900                1,841,900                2,220,699                (378,799)                  Property Appraiser capital outlay 25,000                     25,000                     45,813                     (20,813)                    Tax Collector personal services 11,374,486             11,390,778             10,684,424             706,354                   Tax Collector operating 3,696,411                3,694,419                3,569,258                125,161                   Tax Collector capital outlay 627,587                  627,587                  623,619                  3,968                        County attorney personal services 2,370,900               2,370,900               2,335,966               34,934                     County attorney operating 396,800                  539,846                  200,753                  339,093                   County attorney capital outlay 5,000                        5,000                        4,390                        610                           Natural resource planning operating 109,800                  109,800                  105,060                  4,740                        Circuit court operating 38,700                     39,500                     38,133                     1,367                        County court operating 27,200                     27,200                     23,866                     3,334                        State Attorney operating 345,800                  345,800                  317,436                  28,364                     Public Defender operating 303,400                  303,400                  150,377                  153,023                   Other general administrative personal services 200,000                  92,700                    12,234                    80,466                     Other general administrative operating 7,775,300                7,379,646                6,614,833                764,813                   Facilities management personal services  5,487,200                5,197,200                5,021,619                175,581                   Facilities management operating  8,745,900                9,927,450                10,067,298             (139,848)                  Facilities management capital outlay  76,000                     76,000                     49,351                     26,649                     Sheriff personal services  4,137,400                4,137,400                4,355,279                (217,879)                  Sheriff operating 177,700                  177,700                  71,545                    106,155                   Sheriff capital ‐                                ‐                                3,787                       (3,787)                      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, 2018 24   Original Final Budget Budget Actual Variance Supervisor of Elections personal services  2,204,200$             2,204,200$             2,035,267$             168,933$                 Supervisor of Elections operating  1,542,900                1,510,216                1,484,868                25,348                     Supervisor of Elections capital outlay  20,000                     48,005                     40,839                     7,166                        Public services operations personal services 479,500                  527,700                  526,469                  1,231                        Public services operations operating 66,600                     57,578                     54,628                     2,950                        Public services operations capital outlay 2,000                        1,099                        1,099                        ‐                                 Real property management personal services  660,900                   660,900                   659,400                   1,500                        Real property management operating 42,000                     42,000                     32,342                     9,658                          Total general government 77,873,602             78,565,942             75,560,168             3,005,774                Public safety Sheriff personal services  137,171,100           138,904,100           135,904,291           2,999,809                Sheriff operating  29,636,600             30,032,817             27,962,431             2,070,386                Sheriff capital outlay  7,016,800                7,016,800                11,195,231             (4,178,431)              Emergency management administration personal services  919,900                   919,900                   897,174                   22,726                     Emergency management administration operating  719,200                   1,266,188                887,462                   378,726                   Helicopter operations operating  39,000                     39,000                     29,333                     9,667                        Medical examiner services operating  1,345,300                1,345,650                1,341,068                4,582                        Medical examiner services capital outlay ‐                                 18,000                     18,000                     ‐                                   Total public safety 176,847,900           179,542,455           178,234,990           1,307,465                Physical environment Conservation and resource management personal services 754,900                  555,500                  534,646                  20,854                     Conservation and resource management operating 175,200                  196,500                  131,889                  64,611                     Conservation and resource management capital outlay 3,000                       4,600                       1,378                       3,222                        Immokalee cemetery operating 25,100                    25,100                    17,352                    7,748                          Total physical environment 958,200                  781,700                  685,265                  96,435                     Transportation Alternative transportation modes personal services 322,500                  324,250                  324,169                  81                             Alternative transportation modes operating 25,300                    23,550                    19,395                    4,155                          Total transportation 347,800                  347,800                  343,564                  4,236                        Economic environment Veterans services personal services 348,100                  361,100                  358,639                  2,461                        Veterans services operating 39,700                    39,700                    29,830                    9,870                        Economic development personal services 447,800                  447,800                  403,361                  44,439                     Economic development operating 1,972,000               1,982,036               1,446,352               535,684                   Economic development capital outlay 1,500                        5,878                        5,238                        640                             Total economic environment 2,809,100                2,836,514                2,243,420                593,094                   Human services Health Care Responsibility Act operating  46,100                     46,100                     ‐                                 46,100                     Domestic animal services personal services  2,280,800                2,226,598                1,961,190                265,408                   Domestic animal services operating  1,083,800                1,058,570                898,625                   159,945                   Domestic animal services capital outlay  7,000                        158,922                   46,988                     111,934                                                                                                                     Health department operating  1,815,600                1,954,660                1,781,248                173,412                   Mental health operating  1,949,400                2,361,750                1,949,400                412,350                   Client assistance personal services  845,800                   850,500                   817,372                   33,128                     Client assistance operating  4,573,700                4,502,011                4,175,649                326,362                   Client assistance capital outlay  1,300                        12,400                     5,147                        7,253                        (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, 2018 25   Original Final Budget Budget Actual Variance Public services division office personal services  329,100$                 272,600$                 272,572$                 28$                           Public services division office operating  36,300                     29,226                     22,538                     6,688                        Public services division office capital outlay  3,100                        3,100                        2,713                        387                             Total human services 12,972,000             13,476,437             11,933,442             1,542,995                Culture and recreation Library administration personal services  5,795,600                5,795,600                5,368,257                427,343                   Library administration operating  2,316,800                2,334,577                2,196,065                138,512                   Library administration capital outlay  61,000                     61,000                     60,578                     422                           Beach and water park operations personal services  3,518,900                3,491,600                3,309,411                182,189                   Beach and water park operations operating  2,691,000                2,667,637                2,204,435                463,202                   Beach and water park operations capital outlay  ‐                                 84,424                     84,694                     (270)                          Parks maintenance personal service 1,342,700                1,342,700                1,323,259                19,441                     Parks maintenance operating 2,382,800                2,364,414                2,179,104                185,310                   Parks maintenance capital outlay 200,000                  337,202                  341,577                  (4,375)                        Total culture and recreation 18,308,800            18,479,154            17,067,380            1,411,774                  Total expenditures 290,117,402           294,030,002           286,068,229           7,961,773                  Excess of revenues over expenditures 87,929,124             86,029,166             93,400,698             7,371,532                Other financing sources (uses): Sale of capital assets ‐                                 ‐                                 52,793                     52,793                     Insurance proceeds ‐                                ‐                                3,588                       3,588                        Transfers in 5,556,976               5,468,634               12,673,733            7,205,099                Transfers out (86,785,700)           (101,987,689)         (84,051,945)           17,935,744               Total other financing sources (uses) (81,228,724)           (96,519,055)           (71,321,831)           25,197,224               Net change in fund balance 6,700,400                (10,489,889)            22,078,867             32,568,756               Fund balance at beginning of year 53,646,900             57,684,932             57,684,932             ‐                                   Fund balance at end of year 60,347,300$           47,195,043$           79,763,799$           32,568,756$           Reconciliation:     Net change in fund balance, budgetary basis 22,078,867$                   Ad valorem tax refunds not budgeted (12,241)                            Net change in fair value of investments (406,104)                          Miscellaneous revenue related to indirect cost (8,053,100)                      Miscellaneous revenue related to Sheriff assets not budgeted 37,312                             Public safety grant revenue not budgeted 823,835                           Change in inventory 24,875                             General government expenditures related to indirect cost 8,053,100                        Public safety expenditures for multi‐period projects not budgeted (967,364)                          Public safety capital outlay funded by outside sources not budgeted (1,635,473)                      Insurance proceeds related to Sheriff assets not budgeted 206,841                           Proceeds from sale of Sheriff assets not budgeted 899,687                           Advances budgeted as transfers (321,774)                          Transfer helicopter operations inventory to EMS (929,115)                      Net change in fund balance, GAAP basis 19,799,346$           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, 2018 COLLIER COUNTY, FLORIDA GENERAL FUND 26 Original Final Budget Budget Actual Variance Revenues: Taxes 1,562,600$         1,562,600$         1,562,600$         ‐$                           Intergovernmental 414,040               414,040               198,552               (215,488)               Charges for services 903,105               903,105               526,632               (376,473)               Interest income 15,300                 15,300                 34,959                 19,659                  Miscellaneous 15,000                 15,000                 131,192               116,192                Total revenues 2,910,045            2,910,045            2,453,935            (456,110)               Expenditures: Economic environment Personal services 491,600               491,600               339,054               152,546                Operating 524,600               524,600               829,307               (304,707)               Capital outlay 1,635,745             1,635,745             379,882                1,255,863             Total expenditures 2,651,945             2,651,945             1,548,243             1,103,702             Excess of revenues over expenditures 258,100                258,100                905,692                647,592                Other financing sources (uses): Transfers in 214,800                214,800                214,800                ‐                              Transfers out (634,700)               (634,700)               (634,700)               ‐                              Total other financing sources (uses)  (419,900)               (419,900)               (419,900)               ‐                              Net change in fund balances  (161,800)               (161,800)               485,792                647,592                Fund balances at beginning of year 1,518,200             1,518,200             1,518,200             ‐                              Fund balances at end of year 1,356,400$          1,356,400$          2,003,992$          647,592$              Reconciliation:   Net change in fund balance, budgetary basis   485,792$              Net change in fair value of investments  (7,879)                   Net change in fund balance, GAAP basis  477,913$              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, 2018 27 Original Final Budget Budget Actual Variance Revenues: Taxes 628,800$             628,800$             628,800$             ‐$                           Intergovernmental 3,500                    ‐                             13,754                 13,754                  Charges for services ‐                             797,998               529,648               (268,350)               Interest income ‐                             3,500                    10,664                 7,164                     Total revenues 632,300               1,430,298            1,182,866            (247,432)               Expenditures: Economic environment Personal services 304,600               304,600               194,136               110,464                Operating 275,700               405,700               153,805               251,895                Capital outlay ‐                              925,998                662,255                263,743                Total expenditures 580,300                1,636,298             1,010,196             626,102                Excess (deficit) of revenues    over (under) expenditures  52,000                  (206,000)               172,670                378,670                Other financing sources (uses): Transfers in 85,000                  185,000                85,000                  (100,000)               Transfers out (111,600)               (211,600)               (111,600)               100,000                Total other financing sources (uses)  (26,600)                 (26,600)                 (26,600)                 ‐                              Net change in fund balances  25,400                  (232,600)               146,070                378,670                Fund balances at beginning of year 396,500                396,500                396,500                ‐                              Fund balances at end of year 421,900$              163,900$              542,570$              378,670$              Reconciliation:   Net change in fund balance, budgetary basis   146,070$              Net change in fair value of investments  (2,382)                   Advances budgeted as transfers   30,000                  Net change in fund balance, GAAP basis   173,688$              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, 2018 28 Governmental Emergency Activities ‐ County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Current assets: Cash and investments 132,791,761$       17,217,761$     17,248,375$      2,104,269$        169,362,166$       64,600,881$        Receivables: Trade, net 13,176,122            1,654,929          1,425,473           74,988                16,331,512            19,793                  Special assessments 98,376 ‐ ‐ ‐ 98,376 ‐  Interest 284,421 146,282             38,453                5,588 474,744 144,141                Due from other funds ‐  365,580             ‐ 12,013                377,593 516,107                Due from other governments 1,031,282               1,321,111          267,721              ‐  2,620,114              302,816                Deposits 2,000 ‐ ‐ ‐ 2,000 ‐  Inventory 5,360,008              ‐  1,019,892           130,367              6,510,267              375,248                Prepaid costs 10,381 ‐ 12,262                ‐ 22,643 46,266                  Restricted assets: Cash and investments 5,309,506              123,671             156,300              103,259              5,692,736              ‐  Trade, net 9,066 ‐ ‐ ‐ 9,066 ‐  Interest receivable 43,163 ‐ 349 ‐ 43,512 ‐  Due from other governments ‐ ‐ ‐  3,326,267           3,326,267              ‐  Total current assets 158,116,086         20,829,334        20,168,825        5,756,751           204,870,996         66,005,252          Noncurrent assets: Restricted assets: Cash and investments 29,534,515            ‐ ‐ ‐  29,534,515            ‐  Receivables: Special assessments 252,855 ‐ ‐ ‐ 252,855 ‐  Advances to other funds 41,091,750             ‐ ‐ ‐  41,091,750            ‐  Capital assets: Land and nondepreciable capital assets 76,497,271            17,392,231        ‐  10,402,739        104,292,241         ‐  Depreciable capital assets, net 773,001,222         21,805,412        7,399,332           49,387,605        851,593,571         19,146,565          Total noncurrent assets 920,377,613         39,197,643        7,399,332           59,790,344        1,026,764,932      19,146,565          Total assets 1,078,493,699      60,026,977        27,568,157        65,547,095        1,231,635,928      85,151,817          Deferred charges on debt refundings 3,981,935              ‐ ‐ ‐  3,981,935              ‐  Deferred outflows of resources related to pensions 8,573,977              987,739             12,408,323        340,997              22,311,036            2,117,058            Total deferred outflows of resources 12,555,912            987,739             12,408,323        340,997              26,292,971            2,117,058            (Continued) COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2018 Business‐type Activities Enterprise Funds ASSETS DEFERRED OUTFLOWS OF RESOURCES 29 Governmental Emergency Activities ‐ County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds LIABILITIES Current liabilities: Accounts payable 10,418,292$         4,084,241$        366,605$            840,768$            15,709,906$         1,270,184$          Wages payable 1,022,151              105,823             712,587              38,709                1,879,270              264,563                Retainage payable 1,894,179              363,367             ‐                            36,300                2,293,846              ‐                             Due to other funds 853                         ‐                           11,036                1,209                   13,098                    ‐                             Due to other governments 7,502                       69                        ‐                            3,021                   10,592                    35                          Unearned revenues ‐                                ‐                           ‐                            40,517                40,517                    98,893                  Self‐insurance claims payable ‐                                ‐                           ‐                            ‐                            ‐                                8,111,260            Compensated absences 1,672,967              172,994             631,325              44,248                2,521,534              436,870                Capital lease obligations ‐                                ‐                            347,776              ‐                            347,776                 ‐                             Net pension liability 182,178                  18,814                89,483                8,719                   299,194                 39,923                  Notes payable 6,977,250              ‐                           ‐                            ‐                             6,977,250              ‐                             Bonds and loans payable 4,696,110              ‐                           ‐                            ‐                             4,696,110              ‐                             Liabilities payable from restricted assets:  Accounts payable 2,253                      ‐                           11,247                1,220,122           1,233,622              ‐                             Wages payable ‐                               ‐                           ‐                            136                      136                         ‐                             Retainage payable ‐                               ‐                           ‐                            16,269                16,269                    ‐                             Due to other governments ‐                                ‐                           ‐                            69,022                69,022                    ‐                             Refundable deposits 120,766                  ‐                           ‐                            9,826                   130,592                 ‐                             Unearned revenue ‐                                123,671             ‐                            5,845                   129,516                 ‐                             Interest payable 1,229,810              ‐                           ‐                            ‐                             1,229,810              ‐                             Notes payable 2,391,307              ‐                           ‐                            ‐                             2,391,307              ‐                             Bonds and loans payable 1,565,370              ‐                           ‐                            ‐                             1,565,370              ‐                             Total current liabilities 32,180,988            4,868,979          2,170,059           2,334,711           41,554,737            10,221,728          Noncurrent liabilities: Self‐insurance claims payable ‐                                ‐                           ‐                            ‐                            ‐                                4,024,813            Advance from other funds 50,128                     41,091,750        ‐                            ‐                             41,141,878            ‐                             Compensated absences 418,242                 43,249                157,831              11,063                630,385                 109,218                Capital lease obligations ‐                                ‐                            173,125              ‐                            173,125                 ‐                             Total OPEB liability 1,489,494               155,619             741,042              74,104                2,460,259              329,763                Net pension liability 21,808,962             2,471,832          28,335,153        895,688              53,511,635            5,290,931            Landfill post‐closure liability ‐                                1,750,180          ‐                            ‐                             1,750,180              ‐                             Notes payable 68,576,000            ‐                           ‐                            ‐                             68,576,000            ‐                             Bonds and loans payable, net 103,748,789          ‐                           ‐                            ‐                             103,748,789         ‐                             Total noncurrent liabilities 196,091,615         45,512,630        29,407,151        980,855              271,992,251         9,754,725            Total liabilities 228,272,603          50,381,609        31,577,210        3,315,566           313,546,988         19,976,453          DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 35,566                     3,685                  17,661                1,766                   58,678                    7,864                    Deferred inflows of resources related to pensions  1,989,221              223,546             2,432,230           83,026                4,728,023              478,155                Total deferred inflows of resources 2,024,787               227,231             2,449,891           84,792                4,786,701              486,019                NET POSITION Net investment in capital assets 659,500,098         37,669,074        6,878,431           59,211,109        763,258,712         19,108,660          Restricted for grants and other purposes ‐                               ‐                            145,402              2,249,643           2,395,045              ‐                             Restricted for growth related capital expansion 19,503,905             ‐                           ‐                            ‐                             19,503,905            ‐                             Restricted for renewal and replacement 300,000                 ‐                           ‐                            ‐                            300,000                 ‐                             Restricted for debt service 9,782,838              ‐                           ‐                            ‐                             9,782,838              ‐                             Unrestricted 171,665,380         (27,263,198)      (1,074,454)         1,026,982           144,354,710         47,697,743          Total net position 860,752,221$       10,405,876$     5,949,379$        62,487,734$      939,595,210         66,806,403$        (1,156,548)              Net position of Business‐type Activities 938,438,662$        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, 2018 30 Governmental Emergency Activities ‐ County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating revenues: Charges for services 145,436,218$       50,276,682$       12,746,940$       5,011,244$         213,471,084$       95,540,601$        Miscellaneous 321,147                 172,120               88,648                 68,172                 650,087                 39,289                  Total operating revenues 145,757,365         50,448,802         12,835,588         5,079,416            214,121,171         95,579,890          Operating expenses: Personal services 33,695,443           4,238,608            25,323,021         1,436,417            64,693,489           8,541,864             Operating 56,812,458           100,492,128       4,701,721            13,051,969         175,058,276         95,914,291          Depreciation and amortization 45,664,287           1,508,112            1,646,623            3,429,936            52,248,958           3,050,700             Total operating expenses 136,172,188         106,238,848       31,671,365         17,918,322         292,000,723         107,506,855        Operating income (loss) 9,585,177             (55,790,046)        (18,835,777)        (12,838,906)        (77,879,552)          (11,926,965)         Non‐operating revenues (expenses): Operating grants and contributions 28,669                   11,265,513         654,593               4,477,478            16,426,253           240,299                Interest income 2,137,412             250,481               188,007               25,795                 2,601,695             723,928                Insurance reimbursement 8,185,614             26,116                 11,085                 199,886               8,422,701             9,869,190             Interest expense (4,801,746)            (384,050)              (9,189)                  ‐                              (5,194,985)            ‐                              Gain (loss) on disposal of capital assets (1,239,104)            (4,800)                  11,412                 (165,690)              (1,398,182)            586,242                Total non‐operating revenues 4,310,845              11,153,260          855,908                4,537,469             20,857,482            11,419,659          Income (loss) before contributions  and transfers  13,896,022            (44,636,786)         (17,979,869)         (8,301,437)           (57,022,070)           (507,306)               Capital grants and contributions  33,751,741            289,785                61,353                  4,572,001             38,674,880            ‐                              Transfers in  13,600                    1,020,935             19,884,997          4,495,174             25,414,706            3,958,900             Transfers out  (8,094,900)             (824,905)               (12,400)                 ‐                              (8,932,205)             (1,888,892)           Total transfers and contributions   25,670,441            485,815                19,933,950          9,067,175             55,157,381            2,070,008             Change in net position  39,566,463            (44,150,971)         1,954,081             765,738                (1,864,689)             1,562,702             Net position ‐ beginning 821,185,758          54,556,847          3,995,298             61,721,996          65,243,701          Net position ‐ ending 860,752,221$        10,405,876$        5,949,379$          62,487,734$        66,806,403$        Consolidation adjustment for internal service fund activities related to enterprise funds (2,829,478)             Change in net position of Business‐type Activities  (4,694,167)$           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, 2018 31 Governmental Emergency Activities ‐ County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Cash flows from operating activities: Cash received for services 144,930,441$      50,043,122$       13,126,326$       5,142,972$         213,242,861$      ‐$                           Cash received from other funds for services ‐                              ‐                            ‐                            ‐                            ‐                              86,164,112          Cash received from employees for services ‐                              ‐                            ‐                            ‐                            ‐                              6,900,778            Cash received from other governments  for services ‐                              ‐                            ‐                            ‐                            ‐                              460,077                Cash received from refundable deposits 114,000                ‐                            ‐                            ‐                             114,000                ‐                             Cash received from retirees for services ‐                              ‐                            ‐                            ‐                            ‐                              1,725,389            Cash payments on behalf of retirees ‐                              ‐                            ‐                            ‐                            ‐                              (1,358,288)           Cash payments for goods and services (54,612,619)         (99,987,024)        (3,025,029)          (9,607,244)          (167,231,916)       (90,554,901)         Cash payments to employees (32,618,640)         (3,656,555)          (22,743,661)        (1,360,721)          (60,379,577)         (8,109,715)           Cash payments for interfund services (8,723,550)            (2,458,710)          (1,636,391)          (3,083,481)          (15,902,132)         (626,268)              Cash payments on refundable deposits (83,000)                 ‐                            ‐                            ‐                            (83,000)                 ‐                             Net cash provided by (used for)   operating activities 49,006,632           (56,059,167)        (14,278,755)        (8,908,474)          (30,239,764)         (5,398,816)           Cash flows from non‐capital financing activities:  Cash received from operating grants ‐                               9,975,700           482,016               3,015,148           13,472,864          ‐                             Cash transfers from other funds 574,625                61,528,160         18,959,538         6,166,686           87,229,009          4,471,500            Cash transfers to other funds (48,802,600)         (20,417,530)        (12,400)                (1,659,345)          (70,891,875)         (2,401,492)           Net cash provided by (used for) non‐capital  financing activities (48,227,975)         51,086,330         19,429,154         7,522,489           29,809,998          2,070,008            Cash flows from capital and related financing activities: System development charges 14,107,445           ‐                            ‐                            ‐                             14,107,445          ‐                             Special assessment collections 5,330                     ‐                            ‐                            ‐                            5,330                     ‐                             Receipts from insurance reimbursements 8,211,484             26,116                 11,085                 160,343               8,409,028             9,854,822            Receipts from utility acquisition 5,913,372              ‐                             ‐                             ‐                             5,913,372              ‐                             Proceeds from loans  35,965,000            ‐                             ‐                            ‐                             35,965,000          ‐                             Proceeds from disposal of capital assets 204,197                85,200                 63,550                 30,700                 383,647                581,317                Proceeds from capital grants ‐                              ‐                            ‐                             3,795,471           3,795,471             ‐                             Payments for capital acquisitions (33,404,699)         (6,758,241)          (1,588,271)          (4,554,449)          (46,305,660)         (4,594,022)           Principal payments on notes (9,574,000)             ‐                             ‐                             ‐                             (9,574,000)            ‐                             Principal payments on state revolving loans  (1,560,000)             ‐                             ‐                            ‐                             (1,560,000)           ‐                             Principal payments on bonds  (3,968,061)             ‐                             ‐                            ‐                             (3,968,061)           ‐                             Payments to escrow agents  (35,805,989)          ‐                             ‐                            ‐                             (35,805,989)         ‐                             Principal payments on leases ‐                              ‐                             (343,947)             ‐                             (343,947)               ‐                             Interest and fiscal agent fees paid (4,750,811)            ‐                            (9,189)                  ‐                             (4,760,000)           ‐                             Net cash provided by (used for) capital and   related financing activities  (24,656,732)         (6,646,925)          (1,866,772)          (567,935)             (33,738,364)         5,842,117            Cash flows from investing activities:  Interest on investments 1,819,498             277,449               182,798               27,103                 2,306,848             703,037                Net cash provided by investing activities 1,819,498             277,449               182,798               27,103                 2,306,848             703,037                Net increase (decrease) in cash and investments (22,058,577)          (11,342,313)         3,466,425           (1,926,817)          (31,861,282)         3,216,346            Cash and investments, October 1, 2017 189,694,359        28,683,745         13,938,250         4,134,345           236,450,699        61,384,535          Cash and investments, September 30, 2018 167,635,782$      17,341,432$       17,404,675$       2,207,528$         204,589,417$      64,600,881$        Current cash and investments 132,791,761$      17,217,761$       17,248,375$       2,104,269$         169,362,166        64,600,881$        Current cash and investments‐restricted 5,309,506             123,671               156,300               103,259               5,692,736             ‐                             Noncurrent cash and investments‐restricted  29,534,515           ‐                            ‐                            ‐                             29,534,515          ‐                             Cash and investments, September 30, 2018 167,635,782$       17,341,432$        17,404,675$       2,207,528$         204,589,417$      64,600,881$        (Continued) Business‐type Activities Enterprise Funds  PROPRIETARY FUNDS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 32 Governmental Emergency Activities ‐ County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating income (loss)9,585,177$           (55,790,046)$     (18,835,777)$     (12,838,906)$     (77,879,552)$       (11,926,965)$      Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:   Depreciation expense 45,664,287           1,508,112           1,646,623           3,429,936           52,248,958          3,050,700            Net changes in assets and liabilities:  Trade receivable (403,853)               (368,600)             255,235               92,397                 (424,821)               (320)                      Due from other funds ‐                              (445)                     ‐                            ‐                            (445)                       (450,671)              Due from other governments (556,099)               (204)                     (1,774)                  ‐                             (558,077)               31,848                  Inventory (724,783)               ‐                             (70,384)                (40,026)                (835,193)               (42,999)                 Prepaid costs 2,500                     ‐                            49,050                 ‐                            51,550                  (1,266)                   Accounts payable (4,921,126)            (1,739,751)          101,484               407,203               (6,152,190)           (184,310)              Retainage payable (679,882)               ‐                            ‐                            ‐                             (679,882)               ‐                             Wages payable (249,989)               (31,257)                73,025                 (3,550)                  (211,771)               8,253                    Due to other funds (31,262)                 (213,431)             (1,500)                  (5,938)                  (252,131)               (47,940)                 Due to other governments (36,130)                 (424)                     ‐                            (601)                     (37,155)                 642                        Compensated absences 92,553                   23,441                 89,989                 4,199                   210,182                40,274                  Refundable deposits 31,000                   ‐                            ‐                            ‐                            31,000                  ‐                             Unearned revenue ‐                              (9,292)                  ‐                             (28,235)                (37,527)                 89,609                  Self‐insurance claims payable ‐                              ‐                            ‐                            ‐                            ‐                              3,651,314            Total OPEB liability (44,524)                  30,316                  15,801                  1,960                   3,553                     3,215                    Deferred inflows of resources related to OPEB 34,241                    3,577                    17,035                  1,704                   56,557                  7,582                    Net pension liability 317,819                694,578               1,221,334           49,250                 2,282,981             163,214                Deferred outflows of resources related to pensions 46,056                   (270,821)             (176,060)             (14,331)                (415,156)               (14,700)                 Deferred inflows of resources related to pensions 880,647                132,219               1,337,164           36,464                 2,386,494             223,704                Landfill post closure liability ‐                               (27,139)                ‐                            ‐                            (27,139)                 ‐                             Total adjustments 39,421,455           (269,121)             4,557,022           3,930,432           47,639,788          6,528,149            Net cash provided by (used for)  operating activities 49,006,632$        (56,059,167)$     (14,278,755)$     (8,908,474)$        (30,239,764)$       (5,398,816)$         Non‐cash investing, capital and financing activities:   Change in fair value of investments (505,162)$             (73,941)$             (52,956)$             (2,299)$                (634,358)$            (196,775)$            Developer infrastructure contributions 19,340,867           ‐                            ‐                            ‐                             19,340,867          ‐                             Contributed capital assets 18,612                   289,785               25,562                 307,891               641,850                ‐                             Change in capital related grant receivable ‐                              ‐                            ‐                             468,639               468,639                ‐                             Change in special assessment receivable 308,320                ‐                            ‐                            ‐                             308,320                ‐                             Capital related accounts payable 4,309,798             1,165,202           ‐                             526,666               6,001,666             37,905                  Assets received from utility acquisition 29,277,956            ‐                             ‐                            ‐                             29,277,956          ‐                             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, 2018 33 Agency Funds Cash and investments 36,850,700$          Receivables: Interest 14,252                    Other 59,737                    Total assets 36,924,689$          LIABILITIES Due to other governments 7,506,907$            Due to individuals 637,665                  Refundable deposits 27,812,997            Due to special assessment holders 967,120                  Total liabilities 36,924,689$          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, 2018 34 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018          INDEX          NOTE  PAGE NUMBER  1  Summary of Significant Accounting Policies  36  2  Cash and Investments  48  3  Trade Receivables 51  4  Interfund Payables and Receivables 51  5  Capital Assets 54  6  Long‐Term Debt 54  7  Conduit Debt Obligations 62  8  Defined Benefit Pension Plans  62  9  Defined Contribution Plan 69  10  Transfers  70  11  Net Position/Fund Balances  70  12  Risk Management  73  13  Other Postemployment Benefits  74  14  Landfill Liability  80  15  Significant Contingencies  80  16  Significant Commitments  81  17  Subsequent Events 81  18  Fund Deficits 82         35 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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  financial 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.    The  Airport  Authority  is  responsible  for  construction,  improvement,  equipment,  development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related  airport facilities.         36 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    Collier County Metropolitan Planning Organization (MPO) ‐ The Authority was created in 1981 by Collier County Resolution  81‐222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes.  The purpose of the  MPO is to provide planning for all modes of travel in order to benefit the citizens of Collier County.  The MPO is reported as  part of the Grants and Shared Revenues fund.     The County's discretely presented component units consist of organizations whose board members are appointed by the  Board of County Commissioners.  The County is able to impose its will on these entities because of its ability to remove  appointed members from the component units' Boards.  The Authorities maintain their own financial records, but do not  issue separate financial statements.  GASB 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  4069 Bayshore Drive, #1  Naples, Florida 34112    Collier County Health Facilities Authority  Collier County Housing Finance Authority  Collier County Industrial Development Authority  Collier County Educational Facilities Authority  5150 Tamiami Trail North, #502  Naples, Florida  34103    37 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    GOVERNMENT‐WIDE AND FUND FINANCIAL STATEMENTS    The basic financial statements are made up of the government‐wide financial statements and fund financial statements. Both  of these sets of financial statements distinguish between the governmental and business‐type activities of Collier County.   The government‐wide financial statements consist of a Statement of Net Position and a Statement of Activities.  These  statements report on the financial condition of Collier County, at the reporting entity level.  Internal balances represent net  amounts due between the governmental and business‐type activities.  As a general rule, the effect of interfund activity has  been eliminated from the government‐wide financial statements with the exception of interfund services provided and used.   The internal service activity has also been eliminated from the government‐wide financial statements.  Aggregate internal  service fund activity is reported in full as a single column in the proprietary fund financial statements. Fiduciary funds are not  included in these presentations as their assets do not represent amounts that are available for Collier County government  operations.  The Statement of Net Position reports all financial and capital resources of Collier County’s governmental and  business‐type activities.  Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows  of resources, and is shown in three categories:  net investment in capital assets; restricted net position and unrestricted net  position.  The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates  to what degree the particular program has been self‐supporting.    Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly  identifiable to a particular function.  The effect of indirect expense allocations has been eliminated in the government‐wide  financial statements.  Depreciation expense for capital assets that can specifically be identified with a function is recorded as  a direct expense of that function.  Depreciation for capital assets that serve all functions is recorded as a direct expense of  the general government function on the government‐wide Statement of Activities. All interest on general long term debt is  considered indirect and is reported separately in the government‐wide Statement of Activities.    Program revenues are reported in the following three categories:  charges for services, operating grants and contributions  and capital grants and contributions.  Charges for services are amounts charged to customers for a particular service, and are  netted against the cost of the relevant program.  Internal charges for indirect services are allocated across functions as direct  expenses.  Grants and contributions refer to revenues restricted for capital or operational use in a particular program.  The  general revenue category encompasses all other revenue types and represents revenue collected to support all functions of  Collier County government.    The fund financial statements follow  the  government‐wide  statements and report more detailed  information  about  operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and  proprietary funds.  Following the governmental fund balance sheet and statement of revenues, expenditures and changes in  fund  balances  are  reconciliations explaining  the  differences  between  the  governmental  fund  presentation  and  the  government‐wide presentation.        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.     38 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    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.    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.        39 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    The government‐wide and proprietary fund financial statements are reported using the economic resources measurement  focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation  of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues)  and decreases (i.e., expenses) in net position.  Under the accrual basis of accounting, revenues are recognized in the period  in which they are earned and measurable, and expenses are recognized in the period incurred.  Grant and similar revenues  are recognized when eligibility requirements are met.  Proprietary funds distinguish operating revenues and expenses from  non‐operating items.  Operating revenues and expenses generally result from providing services and producing and delivering  goods in connection with a proprietary fund’s principal ongoing operations.  Operating expenses for proprietary funds include  the cost of sales and services, administrative expenses and depreciation on capital assets.  All revenues and expenses not  meeting this definition are reported as non‐operating revenues and expenses.    Governmental fund financial statements are reported using the current financial resources measurement focus and the  modified accrual basis of accounting.  With this measurement focus, only current assets and current liabilities generally are  included on the balance sheet.  Operating statements of these funds present increases (i.e., revenues and other financing  sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of  accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal  period.  Generally, revenues are considered available when they are collected within the current period or within 60 days  after the end of the fiscal year.  Grant revenues are an exception and are considered available when eligibility requirements  are met.  Primary revenues which have been treated as susceptible to accrual include, where material, charges for services,  interest  earnings  and  certain  taxes  and  intergovernmental  revenues.    Property  taxes  are  discussed  later  in  Note  1.   Expenditures are recorded when the related fund liability is incurred.  Exceptions to this general rule include accrued  compensated absences and principal and interest on long‐term debt.     When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses,  and then unrestricted as needed.  When using the unrestricted resources, committed amounts would be reduced first,  followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which  amounts in any of those unrestricted fund balance classifications could be used.     BUDGETS AND BUDGETARY DATA    The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for  the County:    1) Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County  budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year.  The  budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried  forward at the end of the year as specified in Section 129.03, Florida Statutes.    2) Within eighty days of the certification of value, but not earlier than sixty‐five days after certification, the  Board holds a public hearing on the tentative budget and proposed millage rate.  At this hearing the Board  amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly  the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled‐back rate.  If  the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is  notified of the increase by first class mail, at the expense of the Board.    3) Within fifteen days of the meeting adopting the tentative budge t, the Board advertises the County's intent  to adopt a final budget and millage rate.     40 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    4) A public hearing is held by the Board to finalize the budget and adopt a millage rate.  This hearing is held  not less than two days and not more than five days after the day that the advertisement is first published.   Prior to September 30, the millage levy is adopted by a separate vote.  The millage rate adopted is not  allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision  with strict public notice requirements.   This is followed by the approval and ratification of the final budget.    5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and  Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the  Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has  complied with the provisions of Chapter 200, Florida Statutes.    6) The County Manager approves interdepartmental budget changes within the same fund and division of  $50,000 or less that do not impact reserves or recognize revenue.  All other budgetary changes must be  approved by the Board of County Commissioners as matter of policy.  The initial adopted budget was  amended in accordance with Florida Statutes.    7) Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund  budgets are unlawful.  However, because the Board approves all budgetary  changes  between  departments, except those approved by the County Manager, the departmental budget becomes the level  of control.     Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have  been legally adopted by the Board for all Board departments except for the agency funds and the Impact Fees Escrow special  revenue fund.  The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the  Board.  The Clerk of Courts operates as a fee officer, and as such, prepares its budget in accordance with Section 218.35,  Florida Statutes.    The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the  Board.   The Clerk of Court’s budget for court related functions is prepared according to Section 28.36 Florida Statutes and  submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission.    Budgets are adopted for all governmental departments except as described in the previous paragraph.  These budgets are  adopted  on  a  basis  consistent  with  generally  accepted  accounting  principles  (GAAP)  except  for  certain  non‐budgeted  revenues and expenditures and mark to market activity on investments.  All unencumbered appropriations lapse at the end  of the current year.  For further information regarding encumbrances, refer to Note 16 on page 81.    Capital project costs are budgeted in the year they are anticipated to be obligated.  In subsequent years, the unused budget  is reappropriated until the project is completed.  Proprietary funds are budgeted on a basis consistent with generally accepted  accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements.   Estimated beginning fund balances are considered in the budgetary process.    For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds  statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial  statements.  Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget  to actual statements.        41 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    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;    11) Fixed‐Income Mutual  Funds  –  Shares  in open  end  and  no  load  fixed  income  mutual  funds  whose  underlying  investments would be permitted for purchase under the investment policy and all its restriction    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).         42 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    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 GASB 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 categ orized because they are not evidenced by securities that exist  in physical or book entry form. Throughout the year, and as of September 30, 2018, Florida PRIME contained certain floating  and adjustable rate securities. These investments represented 33.5% of Florida PRIME’s portfolio at September 30, 2018.    In accordance with GASB 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, 2018, 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.    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.     43 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    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.    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.   44 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    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  amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a  component of interest expense.      In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized in  the current period.  The face amount of debt is reported as other financing sources.  Premiums received on debt issuances  are also reported as other financing sources.  Issuance costs, including bond insurance costs, whether or not they have been  paid from debt proceeds are reported as debt service expenditures.     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, 2018 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.       45 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    No accrual for the property tax levy becoming due in November 2018 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, 2018 are as follows:    Property Tax Cycle    Date  Assessment roll compiled    January 1, 2017  Assessment roll certified    July 1, 2017  Millage resolution approved    Within 35 days of the certification of the assessment roll  Beginning of fiscal year for tax levy    October 1, 2017  Taxes due and payable (levy date)    November 1, 2017  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, 2018  Delinquent (lien date)    April 1, 2018  Tax certificates sold    Prior to June 1, 2018    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, 2018 are gift certificates issued and prepayments on accounts.     ACCRUED COMPENSATED ABSENCES    The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences.  This statement provides  for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at  the balance sheet date.  It also requires additional amounts to be accrued for certain salary related payments associated with  the payment of compensated absences.    It is the Board of County Commissioners’ policy to allow employees of record on August 2, 1996 a sick leave payment upon  termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all  employees.  The Sheriff’s policy allows for a percentage of unused sick leave payout based upon years of service, not to  exceed 2,000 hours, and up to 500 hours of unused vacation time. 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 a  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.      46 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED     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.     ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS    For the year ended September 30, 2018, the financial statements include the impact of the adoption of GASB Statement No.  89, Accounting for Interest Cost Incurred before the End of a Construction Period.  The primary objectives of this Statement  are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting  period and the simplification of accounting for interest cost incurred before the end of a construction period.  This Statement  replaces the requirements of GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained  in Pre‐November 30, 1989 FASB and AICPA Pronouncements.    The statements also include the impact of the adoption of GASB Statement No. 82, Pension Issues, and GASB Statement No.  85, Omnibus 2017.  GASB Statement No. 82 addresses issues regarding the presentation of payroll related measures in  required supplementary information, the selection of assumptions and the treatment of deviations from the guidance in an  Actuarial Standard of Practice for financial reporting purposes and the classification of payments made by employers to satisfy  employee contribution requirements.  GASB Statement No. 85 establishes accounting and financial reporting requirements  for blending component units, goodwill, fair value measurement and application and postemployment benefits. Lastly, the  statements include the impact of the adoption of GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct  Borrowings and Direct Placements.  The objective of GASB Statement No. 88 is to improve consistency in the information that  is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements,  and to provide financial statement users with additional essential information about debt.  47 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 2 – CASH AND INVESTMENTS     As of September 30, 2018, the County had the following cash and investments:    Investment Final  Maturities Fair Value First  Call Date Call Frequency Rating * Cash on hand N/A 101,953$               N/A N/A N/A Demand deposits N/A 98,928,905            N/A N/A N/A Cash with fiscal agent N/A 11,790,009            N/A N/A N/A Money market / CD N/A 51,394,242            N/A N/A N/A State Board of Administration Pool:    Florida PRIME N/A 40,394,448            N/A N/A AAAm US Treasury Note 9/30/18 499,775                  N/A N/A AA+ US Treasury Note 10/31/18 24,973,425            none N/A AA+ Federal Farm Credit Bank 11/19/18 249,565                  N/A N/A AA+ Federal Farm Credit Bank 12/19/18 9,977,360              none N/A AA+ Federal Farm Credit Bank 12/21/18 24,945,700            12/21/16 continuously AA+ Federal Farm Credit Bank 12/27/18 23,985,186            12/27/17 continuously AA+ US Treasury Note 12/31/18 498,940                  N/A N/A AA+ US Treasury Note 2/15/19 432,399                  N/A N/A AA+ Federal Home Loan Bank 2/26/19 497,900                  N/A N/A AA+ US Treasury Bill 2/28/19 24,762,500            none N/A AA+ US Treasury Bill 2/28/19 24,762,500            none N/A AA+ Federal Home Loan Bank 3/18/19 14,931,645            none N/A AA+ US Treasury Note 3/31/19 497,070                  N/A N/A AA+ Federal Home Loan Bank 4/4/19 9,986,130              none N/A AA+ US Treasury Bill 4/25/19 49,329,800            none N/A AA+ US Treasury Note 6/30/19 495,235                  N/A N/A AA+ Federal Farm Credit Bank 7/1/19 39,570,160            none N/A AA+ Federal National Mortgage Association 7/12/19 24,709,675            1/12/17 quarterly  AA+ Federal Farm Credit Bank 7/12/19 494,375                  N/A N/A AA+ US Treasury Bill 7/18/19 19,605,680            none N/A AA+ US Treasury Bill 7/18/19 19,605,680            none N/A AA+ Federal Home Loan Bank 8/5/19 24,640,550            none N/A AA+ US Treasury Bill 8/15/19 48,903,000            none N/A AA+ Federal Home Loan Mortgage Corporation 8/28/19 24,702,875            11/28/16 quarterly  AA+ Federal National Mortgage Association 8/28/19 14,783,805            none N/A AA+ Federal Home Loan Bank 8/28/19 247,652                  N/A N/A AA+ US Treasury Note 9/30/19 485,975                  N/A N/A AA+ US Treasury Note 10/15/19 24,573,250            none N/A AA+ US Treasury Note 10/31/19 246,845                  N/A N/A AA+ Federal Home Loan Bank 12/13/19 492,130                  N/A N/A AA+ Federal National Mortgage Association 2/5/20 487,444                  N/A N/A AA+ Federal Farm Credit Bank 2/20/20 494,650                  N/A N/A AA+ Federal National Mortgage Association 7/27/20 24,268,625            1/27/17 quarterly  AA+ Federal Home Loan Mortgage Corp.9/29/20 246,038                  N/A N/A AA+ Federal Home Loan Bank 10/19/20 490,970                  N/A N/A AA+ US Treasury Note 10/31/20 244,523                  N/A N/A AA+ Federal Farm Credit Bank 2/8/21 24,708,275            8/8/18 continuously AA+ Federal Home Loan Bank 2/12/21 247,930                  N/A N/A AA+ Federal Home Loan Mortgage Corp.5/25/21 537,312                  N/A N/A AA+ Federal Farm Credit Bank 8/16/21 143,923                  N/A N/A AA+ Federal Farm Credit Bank 9/1/21 9,919,180              6/1/18 monthly AA+ Federal Home Loan Bank 9/27/21 24,077,725            12/27/16 continuously AA+ Federal National Mortgage Association 9/30/21 23,792,600            3/30/17 quarterly  AA+ Federal Home Loan Bank 11/28/22 24,186,025            11/28/18 quarterly  AA+ Federal Home Loan Mortgage Corporation 12/7/22 24,170,550            12/7/18 quarterly  AA+ Federal Home Loan Mortgage Corporation 3/8/23 11,811,612            6/8/18 quarterly  AA+ 826,323,721$        * Standard and Poor's rating   48 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 2 – CASH AND INVESTMENTS – CONTINUED    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.    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,  2018,  the  County  had  $40,394,448  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, 2018, the County had demand deposits of $98,928,905.  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 $264,511 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.   49 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 2 – CASH AND INVESTMENTS – CONTINUED     The dollar weighted average days to maturity (WAM) of Florida PRIME at September 30, 2018, was 33 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, 2018, was 72 days.     The portion of the County’s cash and investments invested in U.S. Government Agencies is detailed as follows, at September  30, 2018:    Issuer % of Portfolio Federal Home Loan Bank 12.08% Federal Farm Credit Bank 16.28% Federal Home Loan Mortgage Corporation 7.44% Federal National Mortgage Association 10.65% Total U.S. Government Agencies 46.45%    Reconciliation of cash and investments to the basic financial statements:    Primary government: Cash and investments 390,719,742$      Cash with Fiscal Agent 11,790,009           Restricted cash and investments ‐ current 28,649,276           Restricted cash and investments ‐ noncurrent 358,313,994        Agency funds: Cash and investments 36,850,700           Total 826,323,721$          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.       50 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 2 – CASH AND INVESTMENTS – CONTINUED     The County has the following recurring fair value measurements as of September 30, 2018:    US Treasury Notes and Bills classified as Level 1 of the fair value hierarchy were valued using prices quoted in active  markets for those securities.  As of September 30, 2018, the fair value of the County’s US Treasury Notes and Bills was  $239,916,597.    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, 2018, the fair value of the County’s US Agency obligations  was $383,797,567.    NOTE 3 ‐ TRADE RECEIVABLES    Trade receivables for Governmental and Business‐type Activities are net of an allowance for doubtful accounts as follows:    Trade  Receivables Less Allowance for  Doubtful Accounts Net Trade  Receivables General Fund 1,268,744$     707,835$                560,909$        Bayshore Gateway Community Redevelopment Agency 12,720            12,720                    ‐                        Nonmajor Governmental Funds 2,015,584      425,950                  1,589,634       Total receivables reported in Governmental Funds 3,297,048      1,146,505               2,150,543       Total receivables reported in Internal Service Funds 34,312            14,519                    19,793                 Total Governmental Activities trade receivables 3,331,360$    1,161,024$            2,170,336$     County Water and Sewer 13,193,595$ 8,407$                     13,185,188$  Solid Waste Disposal 1,655,562      633                           1,654,929       Emergency Medical Services 24,513,830    23,088,357            1,425,473       Nonmajor Enterprise Funds 93,565            18,577                    74,988                 Total Business‐type Activities trade receivables 39,456,552$ 23,115,974$          16,340,578$      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.          51 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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, 2018 were as  follows:    Advance To Advance From Governmental Activities: General Fund 589,875$        ‐$                         Immokalee Community Redevelopment Agency ‐                       178,901             Other governmental funds: Unincorporated Area MSTD 342,829           ‐                           Community Development 9,264               ‐                           Improvement Districts ‐                       113,800             Fire Control Districts ‐                       268,100             County‐Wide Capital Improvement 5,306,800       ‐                           County‐Wide Library Impact Fees ‐                       311,600             Emergency Medical Services Impact Fees ‐                        1,962,800          Government Facilities Impact Fees Fund ‐                        3,354,175          Other Capital Projects ‐                        9,264                      Total Governmental Activities 6,248,768       6,198,640          Business‐type Activities: County Water and Sewer 41,091,750     50,128                Solid Waste Disposal ‐                        41,091,750            Total Business‐type Activities 41,091,750     41,141,878        Total Advances 47,340,518$   47,340,518$         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.        52 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES – CONTINUED    Due from and due to other funds at September 30, 2018 were as follows:     Due From Due To Governmental Activities: General Fund 639,087$        1,743,049$     Bayshore Gateway Community Redevelopment Agency ‐                        63,735             Immokalee Community Redevelopment Agency ‐                        67,116             Other Governmental Funds:     Road Districts 872,580          ‐                            Unincorporated Area MSTD 397,981          6,382                   Water Management and Pollution Control 94,627            ‐                            Grants and Shared Revenues 1,414,415      1,673,343           Improvement Districts 36,572            1,482                   Fire Control Districts 13,941            ‐                            Lighting Districts 11,614            ‐                            911 Enhancement Fee ‐                        118,776               Tourist Development 250,574          ‐                            800 MHz 32,682            ‐                            State Court Administration ‐                        10,005                 Confiscated Property ‐                        5,231                   Ave Maria Innovation Zone ‐                        22,867                 Other Public Safety Revenue Funds ‐                        90,710                 Other Special Revenue Funds 141                 ‐                            Forest Lakes Limited General Obligation Bonds 4,707              ‐                            Special Obligation Revenue Bonds ‐                        8,650,000           Other Debt Service ‐                       56                         County‐Wide Capital Improvement ‐                        63,471                 Parks Improvements 37,287            ‐                            County Wide Library 409,000          ‐                            Correctional Facilities Impact Fee 1,370,000      ‐                            Emergency Medical Services Impact Fee 209,000          ‐                            Water Management 634,794          1,266,790           Parks Impact Fee 2,489,000      ‐                            Road Construction 680,110          ‐                            Government Facilities Impact Fee 2,795,000      ‐                            Law Enforcement Impact Fee 506,000          ‐                            Other Capital Projects 3,299              ‐                                Total other governmental funds 12,263,324    11,909,113     Business‐type Activities: Solid Waste 365,580          853                  Emergency Medical Services ‐                        11,036             Other Business‐type funds:     Airport Authority ‐                       169                      Collier Area Transit 12,013            1,040                       Total other Business‐type funds 12,013            1,209               Internal Service Funds 516,107          ‐                               Total All Funds 13,796,111$  13,796,111$        53 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 5 – CAPITAL ASSETS    A summary of capital asset activity for the year ended September 30, 2018 is as follows:    October 1, 2017 Additions Deductions Transfers and Reclassifications September 30, 2018 Governmental Activities: Capital assets not depreciated: Land and other non‐depreciable assets  420,184,753$     16,579,584$ ‐$                    ‐$                           436,764,337$      Construction in progress 83,938,571          46,302,699    (22,866)         (85,979,095)        44,239,309             Total capital assets not depreciated 504,123,324       62,882,283    (22,866)         (85,979,095)        481,003,646        Capital assets depreciated: Buildings 457,608,765       2,486              (1,850)            4,579,180            462,188,581        Infrastructure 1,071,323,367    303,588         (16,350)         61,083,588         1,132,694,193     Improvements other than buildings 290,040,716       392,744         (23,236)         14,353,956         304,764,180        Machinery and equipment 200,093,383       24,040,563    (9,727,890)    5,958,592            220,364,648          Total capital assets depreciated 2,019,066,231    24,739,381    (9,769,326)    85,975,316         2,120,011,602     Less accumulated depreciation: Buildings 190,936,597       14,357,913    (1,850)            ‐                              205,292,660        Infrastructure 408,599,688       36,226,586    (16,350)         (75)                         444,809,849        Improvements other than buildings 188,310,280       9,979,961      (15,228)         ‐                              198,275,013        Machinery and equipment 160,760,982       12,510,349    (9,692,184)    722                        163,579,869          Total accumulated depreciation 948,607,547       73,074,809    (9,725,612)    647                        1,011,957,391       Total depreciable capital assets, net 1,070,458,684    (48,335,428)  (43,714)         85,974,669         1,108,054,211     Total Governmental Activities   capital assets, net 1,574,582,008$  14,546,855$ (66,580)$       (4,426)$                 1,589,057,857$   Business‐type Activities: Capital assets not depreciated: Land and other non‐depreciable assets  31,486,366$       2,742,340$    ‐$                    ‐$                           34,228,706$        Construction in progress 66,304,879          43,832,879    (988,385)       (39,085,838)        70,063,535             Total capital assets not depreciated 97,791,245          46,575,219    (988,385)       (39,085,838)        104,292,241        Capital assets depreciated: Buildings 151,404,500       6,675,449      (77,910)         366,736               158,368,775        Improvements other than buildings 1,197,860,963    36,966,176    (653,524)       27,877,699         1,262,051,314     Machinery and equipment 67,566,232          6,722,625      (3,317,361)    10,845,182         81,816,678             Total capital assets depreciated 1,416,831,695    50,364,250    (4,048,795)    39,089,617         1,502,236,767     Less accumulated depreciation: Buildings 87,826,888          4,908,359      (19,438)         ‐                              92,715,809           Improvements other than buildings 474,573,646       39,360,675    (515,833)       75                          513,418,563        Machinery and equipment 39,747,483          7,979,924      (3,217,861)    (722)                      44,508,824             Total accumulated depreciation 602,148,017       52,248,958    (3,753,132)    (647)                       650,643,196          Total depreciable capital assets, net 814,683,678       (1,884,708)     (295,663)       39,090,264         851,593,571        Total Business‐type Activities   capital assets, net 912,474,923$     44,690,511$ (1,284,048)$ 4,426$                 955,885,812$            54 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 5 – CAPITAL ASSETS – CONTINUED    Schedule of depreciation for fiscal year 2018:    General Government 7,745,663$           Public Safety 11,344,587           Physical Environment 5,315,049             Transportation 36,290,688           Economic Environment 361,878                Human Services 352,034                Culture and Recreation 8,614,210                 Subtotal 70,024,109           Internal Service Funds 3,050,700                 Total Governmental Activities 73,074,809$        Water and Sewer 45,664,287$        Solid Waste 1,508,112             EMS 1,646,623             Airport Authority 1,525,540             Mass Transit 1,904,396                 Total Business‐type Activities 52,248,958$           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, 2018:    October 1, 2017 Additions Reductions Premium  Amortized September 30, 2018 Due within one year Governmental Activities: Bonds Payable  $    220,775   $                 ‐   $    (54,685)  $                 ‐   $        166,090   $      14,205  Premium on Bonds Payable          13,871                       ‐               (503)           (1,447)               11,921                       ‐  Direct Placement Loans Payable           74,155           43,713            (7,653)                      ‐              110,215              7,965  Commercial Paper Loans                      ‐           12,000               (100)                      ‐                11,900                 400  Notes Payable             5,072                       ‐               (457)                      ‐                  4,615                 473  Capital Lease Obligations                316                       ‐                  (80)                      ‐                      236                   83  Self‐Insurance Claims 8,485           76,807         (73,156)       ‐                                   12,136  8,111            Compensated Absences          28,469              8,889            (7,728)                      ‐                29,630              9,994      Total 351,143$    141,409$    (144,362)$   (1,447)$       346,743$         41,231$       Business‐type Activities: Bonds Payable 48,105$      ‐$                  ‐$                  ‐$                    $           48,105 ‐$                   Premium on Bonds Payable 11,246         ‐                    ‐                     (603)                            10,643 ‐                     Direct Placement Loans Payable  20,825         35,965         (5,528)          ‐                                   51,262  6,261            Notes Payable 87,519         ‐                     (9,574)          ‐                                   77,945  9,369            Capital Lease Obligations 865              ‐                     (344)             ‐                                         521  348               Landfill Closure Liability 1,777           ‐                    (27)               ‐                                     1,750 ‐                     Compensated Absences 2,942           2,706           (2,496)          ‐                                     3,152  2,522                Total 173,279$    38,671$      (17,969)$     (603)$           193,378$         18,500$       000's Omitted      55 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 6 – LONG‐TERM DEBT – CONTINUED    DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE    Bonds, loans and notes payable at September 30, 2018 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, duein installments of $300,000 to $540,000 through January 1, 2022; interest at 3.75% to 4.25% and collateralized by a limited ad valorem pledge of up to 4 mils. Bonds were issued for purposes of financing the costs of certain roadway lighting, drainage and restoration within the Forest Lakes Municipal Service Taxing Unit.   2,030,000$          Total Governmental Activities Limited General Obligation Bonds            2,030,000$          Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding RevenueBonds, duein annual installments of $2,700,000 to $6,605,000 through June1,2023;interestat3.00%to 5.00%and collateralizedbya pledgeon the combined gas tax proceeds. Bonds were issued for purposes of advance refunding the County's 2003 Gas Tax Revenue Bonds. 17,220,000$        $59,895,000 2010 Special Obligation RevenueBonds, duein annual installments of $1,545,000 to $3,860,000 through July 1,2034;interestat3.00% to 4.50% and collateralized by a pledgeon legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communicati ons services tax and charges and services generated by governmental activities. Bonds wereissued torefund all of the County's then outstanding promissory notes issued pursuant to the pooled commercial paper loan program of the Florida Local Government Finance Commission. 4,260,000            $24,620,000 2010BSpecial Obligation Refunding 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 s haring, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding the County's 2002 Capi tal Improvement Revenue Bonds.9,960,000            $92,295,000 2011 Special Obligation Refunding 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. Bonds were issued for purposes of advancerefunding a portion of the County's 2003 and 2005 Capital Improvement and Refunding Revenue Bonds.  58,815,000          $73,805,000 2013 Special Obligation Refunding Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by a pledge on legally available non‐ad valorem revenues,including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding all of the County's remaining 2003 and 2005 Capital Improvement and Refunding Revenue Bonds.  73,805,000          Total Governmental Activities Revenue Bonds 164,060,000$           56 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 6 – LONG‐TERM DEBT – CONTINUED    Governmental Activities Direct Placement Loans $89,780,000 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds. Loan was issuedtoadvance refund a portion of the County's 2005 Gas Tax Revenue Bonds.  66,615,000$        $43,713,000 2017 Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $113,000 to $3,724,000 through July 1, 2034; interest at 3.09% and collateralized by a pledge on legally available non‐ad valorem revenues,including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to advance refund a portion of the County's 2010 Special Obl igation Revenue Bonds.43,600,000          Total Governmental Activities Direct Placement Loans 110,215,000$     Governmental Activities Commercial Paper Loans $12,000,000 Commercial Paper issued by the Florida Local Government Finance Commission Pooled Commercial Paper Program due on June 6, 2023; monthly variable interest for the current fiscal year of 2.03% to 2.73%, based on the underlying commercial paper that is purchased and collateralized by all legally available non‐ad valorem revenues. Loan was issued for purposes of purchasing a parcel of land for the County's amateur sports complex. 11,900,000$        Total Governmental Activities Commercial Paper Loans           11,900,000$        Governmental Activities Note Payable $5,293,293 2017 Bayshore Gateway Community Redevelopment Agency Taxabl eNotewithTD Bank, N.A., due in monthly installments of $35,574 to $52,349 through March 1, 2027;interest at3.56%andcollateralized bya pledgeon all legally availablenon‐ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency. Note was issued to refund the 2013 Collier County Community Redevelopment Agency Taxable Note (Fifth Third Bank). 4,615,198$          Total Governmental Activities Note Payable 4,615,198$          Total Governmental Activities Obligations 292,820,198$     Unamortized Bond Premium 11,921,472$        Governmental Activities Obligations, Net 304,741,670$     Less Current Portion of Governmental Activities Obligations (23,043,424)$      Long‐Term Portion of Governmental Activities Obligations, Net 281,698,246$     BUSINESS‐TYPE ACTIVITIES Business‐type Activities Revenue Bonds $48,105,000 2016 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $5,035,000 to $7,090,000 through July 1, 2036; interest at 5.00% and collateralized by a lien on and a pledge of net revenues of theCollier County Water and Sewer District (District). Bonds were issued for purposes of currently refundi ng all of the District's remaining 2006 Water and Sewer Revenue Bonds.  48,105,000$        Total Business‐type Activities Revenue Bonds 48,105,000$            57 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 6 – LONG‐TERM DEBT – CONTINUED    Business‐type Activities Direct Placement Loans $17,769,080 2013 Collier County Water and Sewer Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,369,430 to $4,312,275 through July 1, 2021;interest at1.47% and collateralized by a lien on and a pledgeof net revenues of the Collier County Water and Sewer District. Loan was issued to currently refund all of theDistrict's 2003BWater and Sewer Refunding Revenue Bonds. 4,281,907$          $17,687,000 2015 Collier County Water and Sewer Refunding Revenue Bond (Bank Term Loan) due in annual installments of $2,533,000 to $4,561,000 through July 1, 2022;interest at1.75% and collateralized by a lien on and a pledgeof net revenues of the Collier County Water and Sewer District. Loan was issued to advance refund a portion of the District's 2006 Water and Sewer Revenue Bonds.12,575,000          $35,965,000 2018 Collier County Water and Sewer Revenue Bond (Bank Term Loan) due in annual installments of $1,560,000 to $3,945,000 through July 1, 2029; interest at 2.41% and collateralized by a lien on and a pledgeof net revenues of theCollier County Water and Sewer District. Loan was issued to finance the acquisition of water and wastewater utility facilities within the Golden Gate Community.  34,405,000          Total Business‐type Activities Direct Placement Loans 51,261,907$        Business‐type Activities Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits.  Non‐interest bearing agreemen t. 65,557$                $89,982,000 2016 County Water and Sewer District Refunding Revenue Note with Florida Community Bank,N.A.,duein monthly installments of $2,881,000 to $9,574,000 through July 1, 2029; interest at 1.80% and collateralized by a subordinated pledge on the netrevenues of the Collier County Water and Sewer District. Loan was issued to currently refu nd all of the District's State Revolving Fund Loans. 77,879,000          Total Business‐type Activities Loans and Notes Payable 77,944,557$        Total Business‐type Activities Obligations 177,311,464$     Unamortized Bond Premium 10,643,362$        Business‐type Activities Obligations, Net 187,954,826$     Less Current Portion of Business‐type Activities Obligations Payable from Unrestricted Assets (11,673,360)$      Less Current Portion of Business‐type Activities Obligations Payable from Restricted Assets (3,956,677)$         Long‐Term Portion of Business‐type Activities Obligations, Net 172,324,789$            58 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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 Principal Interest Principal Interest Principal Interest 2019 475,000$          76,181$            13,730,000$    6,593,206$      7,965,000$      2,899,369$      2020 495,000            55,569              14,380,000      5,957,469         8,152,000         2,711,847         2021 520,000            34,000              12,780,000      5,303,606         10,576,000      2,519,915         2022 540,000            11,475              13,390,000      4,666,256         10,843,000      2,254,448         2023 ‐                          ‐                          11,260,000      4,089,782         11,120,000      1,982,175         2024‐28 ‐                          ‐                          38,730,000      14,899,966      40,834,000      5,503,384         2029‐33 ‐                          ‐                          38,095,000      7,982,732         17,001,000      2,183,393         2034‐38 ‐                          ‐                          21,695,000      1,229,300         3,724,000         115,072            Totals 2,030,000$      177,225$          164,060,000$  50,722,317$    110,215,000$  20,169,603$    Governmental Activities Limited General Obligation Bonds Revenue Bonds Direct Placement Loans     Fiscal Year Totals Principal Interest Principal Interest 2019 400,000$          705,000$          473,424$          156,626$          33,473,806$    2020 400,000            681,000            490,556            139,494            33,462,935      2021 400,000            657,000            508,308            121,743            33,420,572      2022 400,000            633,000            526,702            103,349            33,368,230      2023 10,300,000      459,000            545,762            84,289              39,841,008      2024‐28 ‐                          ‐                          2,070,446         134,733            102,172,529    2029‐33 ‐                          ‐                          ‐                          ‐                          65,262,125      2034‐38 ‐                          ‐                          ‐                          ‐                          26,763,372      Totals 11,900,000$    3,135,000$      4,615,198$      740,234$          367,764,577$  Governmental Activities Notes PayableCommercial Paper Loans       Fiscal Year Totals Principal Interest Principal Interest Principal Interest 2019 ‐$                       2,405,250$     6,261,480$     1,112,167$     9,368,557$     1,401,822$     20,549,276$    2020 ‐                          2,405,250        6,384,464        991,822           9,027,000        1,234,368        20,042,904      2021 ‐                          2,405,250        6,499,963        869,013           9,189,000        1,071,882        20,035,108      2022 ‐                          2,405,250        6,961,000        743,893           7,891,000        906,480           18,907,623      2023 ‐                          2,405,250        3,505,000        606,235           8,034,000        764,442           15,314,927      2024‐28 ‐                          12,026,250     18,815,000     1,723,753        31,554,000     1,776,312        65,895,315      2029‐33 27,835,000     9,378,250        2,835,000        68,323             2,881,000        51,858             43,049,431      2034‐38 20,270,000     2,060,000        ‐                         ‐                         ‐                         ‐                          22,330,000      Totals 48,105,000$   35,490,750$   51,261,907$   6,115,206$     77,944,557$   7,207,164$     226,124,584$  Business‐type Activities Revenue Bonds Notes PayableDirect Placement Loans          59 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 6 – LONG‐TERM DEBT – CONTINUED    CURRENT YEAR FINANCING ACTIVITIES    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 Governmental 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.     On December 28, 2017, Collier County issued the Series 2017 Special Obligation Refunding Revenue Note (Bank Term Loan)  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 and an economic gain of $2,868,509.  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.    On April 30, 2018, Collier County issued a $12,000,000 commercial paper loan through the Florida Local Government Finance  Commission’s Pooled Commercial Paper Program.  The loan was issued for purposes of acquiring land for the construction of  the County’s regional tournament caliber amateur sports complex.      RESTRICTIVE COVENANTS    According to County resolutions authorizing the issuance of the Series 2010, 2010B, 2011 and 2013 Special Obligation  Refunding Revenue Bonds and Series 2017 Special Obligation Refunding Revenue Note, 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 and Notes.    According to County resolutions authorizing the issuance of the Series 2012 Gas Tax Revenue Refunding Bonds and Series  2014 Gas Tax Refunding Revenue Bond, the issues are payable from and secured by liens on gas tax revenues.      The  covenants  of  the  loan  agreement  authorizing  the  Florida  Local  Government  Finance  Commission  loans  include  appropriation in the annual amounts of non‐ad valorem revenues or other legally available funds sufficient to satisfy the loan  repayments.     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 2018.  The Agency was in compliance with these  covenants for the year ended September 30, 2018.          60 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 6 – LONG‐TERM DEBT – CONTINUED    The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain  operating expenses, to repay $99,366,907 in Series 2013, 2015, 2016 and 2018 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 2018 pledged revenues, net of operating expenses  (excluding  depreciation  and  amortization),  were  $65,336,148,  and  $79,423,710  when  system  development  fees  were  included.  Principal and interest paid on the bonds during fiscal year 2018 totaled $8,577,955, providing coverage of 762%  and 926%, 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, 2018.    The  District  has  a  note  outstanding  in  the  amount  of  $77,879,000 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, 2018.    LEGAL DEBT MARGIN    The Constitution of the State of Florida and the Florida Statutes set no legal debt limit.    LEASE OBLIGATIONS    Capitalized leases payable at September 30, 2018 amounted to $757,334.  These obligations, which are collateralized by  equipment and vehicles, have total annual installments ranging from $29,702 to $445,300 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 $1,001,732 and accumulated depreciation of $852,895.  Equipment currently  leased under capital leases in the business‐type activities had a historical cost of $2,388,606 and accumulated depreciation  of $1,741,364.    Future minimum capital lease obligations as of September 30, 2018 were as follows:     Governmental Business‐type Activities Activities Total 92,888$         352,412$          445,300$  92,887            94,432              187,319     40,234            78,693              118,927     29,702            ‐                           29,702       Total minimum lease payments 255,711         525,537            781,248     Less amount representing interest (19,278)          (4,636)               (23,914)      Present value of minimum lease payments 236,433$       520,901$          757,334$  2019 2020 2021 2022     61 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018    NOTE 6 – LONG‐TERM DEBT – CONTINUED  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, 2018 were $1,868,081.  Total rental expenditures for all operating leases within business‐type activities for the year ended  September 30, 2018 were $304,192.    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, 2018, the outstanding principal amount payable on all component unit conduit debt was $379,938,485  and is made up of the following:  Industrial development revenue bonds 11,720,000$     Housing finance revenue bonds 24,285,898   Health facilities revenue bonds 246,085,000   Educational facilities revenue bonds 97,847,587   Total 379,938,485$   NOTE 8 – DEFINED BENEFIT PENSION PLANS  BACKGROUND  The Florida Retirement System (FRS) Pension Plan was created by Chapter 121, Florida Statutes, effective December 1, 1970.  The FRS is a qualified retirement plan under Section 401(a), Internal Revenue Code, created to provide a defined benefit  pension plan for participating public employees.  The FRS was amended in 1998 to add the Deferred Retirement Option  Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the  defined benefit plan for FRS members effective July 1, 2002.  This integrated defined contribution pension plan is the FRS  Investment Plan.  Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost‐ sharing multiple‐employer defined benefit pension plan, to assist retired members of any State‐administered retirement  system in paying the costs of health insurance.  Essentially all regular employees of the County are eligible to enroll as members of the State‐administered FRS.  Provisions  relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter  238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits  are defined and described in detail.  Such provisions may be amended at any time by 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.  62 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED    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 $50,311,408 for both the FRS Pension Plan and HIS Plan for the year ended September  30, 2018.    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 membe rs  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.      63 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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, 2017 through June 30, 2018 and from July 1, 2018 through  September 30, 2018, respectively, were as follows: Regular employees‐7.92% and 8.26%; Special Risk – Regular‐23.27% and  24.50%;  County  Elected  Officials‐45.50%  and  48.70%;  Senior  Management  Services‐22.71%  and  24.06%;  and  DROP  participants‐13.26% and 14.03%. The County’s contributions to the FRS Plan were $23,401,059 for the year ended September  30, 2018.    PENSION COSTS    At September 30, 2018, the County reported a liability of $242,370,237 for its proportionate share of the FRS Plan’s net  pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate  the net pension liability was determined by an actuarial valuation as of July 1, 2018. 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, 2017, through June 30, 2018, relative to the total employer contributions received from all of  FRS’s participating employers. At June 30, 2018, the County’s proportion was 0.804668%, which was an increase of 0.007947%  from its proportion measured as of June 30, 2017.       64 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED    For the year ended September 30, 2018, the County recognized pension expense of $43,900,644 for its proportionate share  of FRS’s pension expense. In addition, the County reported its proportionate share of FRS’s deferred outflows of resources  and deferred inflows of resources from the following sources:    Description Deferred Outflows  of Resources Deferred Inflows  of Resources Differences Between Expected and Actual Economic Experience 20,5 32,403$         745,231$                Changes in Actuarial Assumptions 79,194,808           ‐                                Net Difference Between Projected and Actual Earnings on Pension  Plan    Investments ‐                                18,726,056            Changes in Proportion and Differences Between County Contributions and     Proportionate Share of Contributions 9,226,252              992,900                  County Contributions Subsequent to the Measurement Date 5,949,421              ‐                                Total 114,902,884$       20,464,187$              Deferred outflows of resources related to pensions of $5,949,421, resulting from County contributions to the FRS Plan  subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended  September 30, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be  recognized as an increase in pension expense as follows:    Year Ending  September 30 Amount 2019 33,428,623$     2020 23,609,031        2021 4,807,819          2022 15,251,782        2023 9,900,077          Thereafter 1,491,944           ACTUARIAL ASSUMPTIONS    The total pension liability in the July 1, 2018, 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%, including inflation  Investment Rate of Return  7.00%, 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, 2018, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30,  2013.      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.         65 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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% 2.9% 2.9% 1.8% Fixed income 18.0% 4.4% 4.3% 4.0% Global equity 54.0% 7.6% 6.3% 17.0% Real estate (property) 11.0% 6.6% 6.0% 11.3% Private equity 10.0% 10.7% 7.8% 26.5% Strategic investments 6.0% 6.0% 5.7% 8.6% Totals 100.0% Assumed Inflation ‐ Mean 2.6% 1.9%    DISCOUNT RATE    The discount rate used to measure the total pension liability was 7.00% 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, the pension plan’s fiduciary net position was projected to be available to make all  projected future benefit payments of current active and inactiv e 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 6.00% 7.00% 8.00% County's Proportionate Share of the FRS Plan     Net Pension Liability 442,335,849$   242,370,237$      76,286,976$        PENSION PLAN FIDUCIARY NET POSITION    Detailed information about the FRS Plan’s fiduciary 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.       66 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED     RETIREE HEALTH INSURANCE SUBSIDY PROGRAM    PLAN DESCRIPTION    The Retiree Health Insurance Subsidy Program (HIS Plan) is a non‐qualified, 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, 2018, 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, 2017 through June 30, 2018 and from July 1, 2018 through September 30, 2018,  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 subject to annual legislative appropriation.  In the event the  legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or  canceled. The County’s contributions to the HIS Plan were $3,750,438 for the year ended September 30, 2018.    PENSION COSTS     At September 30, 2018, the County reported a liability of $73,037,274 for its proportionate share of the HIS Plan’s net pension  liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net  pension liability was determined by an actuarial valuation as of July 1, 2018. 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, 2017, through June 30, 2018, relative to the total employer contributions received from all participating  employers. At June 30, 2018, the County’s proportion was 0.690065%,  which  was  an  increase of  0.024681%  from  its  proportion measured as of June 30, 2017.    For the year ended September 30, 2018, the County recognized pension expense of $6,410,764 for its proportionate share of  HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and  deferred inflows of resources from the following sources:      Description Deferred Outflows  of Resources Deferred Inflows  of Resources Differences Between Expected and Actual Economic Experience 1,11 8,169$           124,088$               Changes in Actuarial Assumptions 8,122,647              7,722,112              Net Difference Between Projected and Actual Earnings on HIS Program 44,088                   ‐                               Changes in Proportion and Differences Between County Contributi ons  and Proportionate Share of Contributions 5,501,135              814,337                 County Contributions Subsequent to the Measurement Date 929,315                 ‐                               Total 15,715,354$         8,660,537$            67 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED     Deferred  outflows  of  resources  related  to  pensions  of  $929,315,  resulting  from  County  contributions  to  the  HIS  Plan  subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended  September 30, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be  recognized as an increase in pension expense as follows:    Year Ending September 30 Amount 2019 1,981,072$     2020 1,977,355        2021 1,634,425        2022 863,532           2023 (353,375)          Thereafter 22,493              ACTUARIAL ASSUMPTIONS     The total pension liability in the July 1, 2018, 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%, including inflation  Municipal Bond Rate  3.87%    Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July  1, 2018, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30,  2013.      DISCOUNT RATE    The discount rate used to measure the total pension liability was 3.87% 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 2.87% 3.87% 4.87% County's Proportionate Share of the HIS Plan    Net Pension Liability 83,185,175$    73,037,274$       64,578,410$            68 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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.    SUMMARY    The aggregate amount of net pension liability, related deferred outflows of resources and deferred inflows of resources and  pension expense for the County’s defined benefit pension plans are summarized below:    FRS Plan HIS Plan Total Net pension liability 242,370,237$   73,037,274$     315,407,511$    Deferred outflows of resources related to pensions 114,902,884     15,715,354        130,618,238      Deferred inflows of resources related to pensions 20,464,187        8,660,537          29,124,724         Pension expense 43,900,644        6,410,764          50,311,408            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 ultim ate 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, 2017 to June 30, 2018 and .06% of  payroll from July 1, 2018 to June 30, 2019 in addition to forfeited benefits of plan members.  The County’s Investment Plan  pension expense totaled $4,589,549 for the year ended September 30, 2018.      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, 2018, 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.  69 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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.    Transfers for the year ended September 30, 2018 were as follows:    Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Nonmajor Governmental Funds 59,372,267$        Solid Waste Disposal 365,135                Emergency Medical Services 19,884,997          Nonmajor Business‐type 4,368,761             Internal Service Funds 989,900                Bayshore Gateway Community     Redevelopment Agency Nonmajor Governmental Funds 631,000                Internal Service Funds 3,700                     Immokalee Community     Redevelopment Agency Bayshore Gateway Community Redevelopment Agency 78,000                  Internal Service Funds 3,600                     Nonmajor Governmental Funds General Fund 3,819,854             Bayshore Gateway CRA 136,800                Immokalee CRA 85,000                  Nonmajor Governmental Funds 40,708,269          County Water and Sewer 13,600                  Nonmajor Business‐type 126,413                Internal Service Funds 2,322,800             Business‐type Activities: County Water and Sewer General Fund 6,679,100             Nonmajor Governmental Funds 218,500                Solid Waste Disposal 655,800                Internal Service Funds 541,500                Solid Waste Disposal General Fund 776,405                Internal Service Funds 48,500                  Emergency Medical Services Internal Service Funds 12,400                  Internal Service Funds General Fund 1,076,600             Nonmajor Governmental Funds 775,792                Internal Service Funds 36,500                     Total Transfers 143,731,193$          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 and deferred amounts on refundings related  to 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.  70 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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, the 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.  71 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED    A detailed schedule of fund balances at September 30, 2018 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 453,582         ‐                           ‐                            882,664            1,336,246               Advances 589,875         ‐                           ‐                            5,658,893         6,248,768               Notes 1,567,791      ‐                           ‐                           ‐                           1,567,791               Prepaid costs 33,215            ‐                           ‐                            10,400              43,615               Total nonspendable fund balance 2,644,463      ‐                           ‐                            8,134,757         10,779,220       Restricted for:      Community redevelopment ‐                        11,597,507        467,479             ‐                           12,064,986            Federal and state grants 306,146         ‐                           ‐                            11,115,310      11,421,456            Bond covenants or debt service ‐                       ‐                           ‐                            9,442,673         9,442,673               Transportation growth related capital ‐                       ‐                           ‐                            75,356,207      75,356,207            Parks growth related capital expansion ‐                       ‐                           ‐                            25,680,732      25,680,732            Transportation capital projects ‐                       ‐                           ‐                            44,885,051      44,885,051            Community development ‐                       ‐                           ‐                            46,252,281      46,252,281            Transportation operations ‐                       ‐                           ‐                            2,358,883         2,358,883               Tourist development ‐                       ‐                           ‐                            70,594,384      70,594,384            Conservation Collier ‐                       ‐                           ‐                            32,778,883      32,778,883            Emergency 911 ‐                       ‐                           ‐                            2,972,249         2,972,249               Law Enforcement ‐                       ‐                           ‐                            7,530,896         7,530,896               Fire services growth related capital ‐                       ‐                           ‐                            88,065              88,065                    Libraries growth related capital ‐                       ‐                           ‐                            465,683            465,683                  Court functions ‐                       ‐                           ‐                            7,149,464         7,149,464               Public records modernization ‐                       ‐                           ‐                            4,472,680         4,472,680               Other purposes ‐                       ‐                           ‐                            1,305,857         1,305,857            Total restricted fund balance 306,146         11,597,507        467,479             342,449,298    354,820,430     Committed for:      Special districts ‐                       ‐                           ‐                            30,446,700      30,446,700            Natural resource management ‐                       ‐                           ‐                            2,585,063         2,585,063               Utility regulation ‐                       ‐                           ‐                            1,468,793         1,468,793               Other purposes ‐                       ‐                           ‐                            292,320            292,320               Total committed fund balance ‐                       ‐                           ‐                            34,792,876      34,792,876       Assigned for:      Parks and recreation ‐                       ‐                           ‐                            7,424,562         7,424,562               General building & improvements ‐                       ‐                           ‐                            6,969,783         6,969,783               Water management ‐                       ‐                           ‐                            4,311,414         4,311,414               Libraries ‐                       ‐                           ‐                            249,006            249,006                  Other purposes 1,736,422      ‐                           ‐                            2,174,499         3,910,921            Total assigned fund balance 1,736,422      ‐                           ‐                            21,129,264      22,865,686       Unassigned:77,341,766    ‐                           ‐                            (250,436)           77,091,330           Total Fund Balances 82,028,797$ 11,597,507$     467,479$           406,255,759$  500,349,542$    72 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 12 – RISK MANAGEMENT    The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and  omissions; injuries to employees and natural disasters.  A self‐insurance internal service fund is maintained by the County to  administer insurance activities relating to workers' compensation, health and property and casualty, which covers general,  property, auto, public official and crime liabilities.  The County self‐insurance program covers operations of the Board and  the constitutional officers, except for the Sheriff.  Under these programs, the self‐insurance fund provides coverage up to a  maximum amount for each claim.  The County purchases commercial insurance for claims in excess of coverage provided by  the self‐insurance fund and for all other covered risks of loss.      Claim Type    County’s Coverage    Excess Carrier’s Coverage   Property and casualty claims    $50,000 ‐ $500,000   ($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    $300,001 ‐ $5,000,000   Employee health claims    $450,000    $450,001 – Unlimited   Workers' compensation claims    $500,000     $500,001 – 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, 2018 the operating departments were charged $42,787,528  for workers' compensation, health and property and casualty self‐insurance programs.    The claims loss reserve for workers' compensation, health and property and casualty of $9,252,073 reported at September  30, 2018 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 $5,227,260 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.     73 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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 $2,884,000 reported at September 30, 2018 was calculated by third party actuaries based  upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable  that a loss has been incurred and the amount of that loss can be reasonably estimated.  The entire Sheriff’s health claim loss  reserve is recorded as a current liability.    CHANGES IN SELF‐INSURANCE CLAIMS PAYABLE    Changes in the self‐insurance claims payable for fiscal years 2017 and 2018 were as follows for the County and Sheriff self‐ insurance programs:    Property and Group Workers' Casualty Health Compensation Total Balance at September 30, 2016 1,194,177$    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$     Current year claims incurred and   changes in estimates 15,322,570    60,597,427    886,853         76,806,850     Claim payments (12,726,286)  (59,700,427)  (728,823)        (73,155,536)    Balance at September 30, 2018 3,785,085$    7,007,000$    1,343,988$    12,136,073$       NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS    COUNTY’S 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 20 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 6 retirees.  74 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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, 2018, the following employees were covered by the benefit terms:    Inactive employees or beneficiaries currently receiving benefits  69  Active employees 2,285    Total employees 2,354    TOTAL OPEB LIABILITY    The County’s total OPEB liability of $8,730,722 was measured as of September 30, 2018 and was determined roll forward  from the October 1, 2017 valuation date.  The following table shows the changes in the County’s total OPEB liability for the  year ended September 30, 2018.    Total OPEB Liability Balance, as of October 1, 2017 8,833,096$     Changes: Service cost 491,865          Interest on total OPEB liability 252,345          Changes in assumptions or other inputs (221,309)         Benefit payments (625,275)           Net changes (102,374)         Balance, as of September 30, 2018 8,730,722$         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 2.25% 3.25% 4.25% Total OPEB Liability 9,348,038$       8,730,722$          8,172,221$          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 Healthcare Cost Trend Rate 5.00% 6.00% 7.00% Total OPEB Liability 8,006,125$      8,730,722$         9,571,904$        75 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB    For the year ended September 30, 2018, the County’s OPEB expens e was $742,285.  In addition, the County reported deferred  inflows of resources from the following sources:    Description Deferred Outflows  of Resources Deferred Inflows  of Resources Differences Between Expected and Actual Economic Experience ‐$                              6,333$                     Changes in assumptions ‐                               221,309                   ‐$                             227,642$                    Amounts reported as deferred inflows of resources related to OPEB will be amortized over 4.12 years and will be recognized  as follows:    Year Ending September 30 Amount 2019 55,641$      2020 55,641        2021 55,641        2022 54,274        Thereafter 6,445             ACTUARIAL METHODS AND ASSUMPTIONS    Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the  probability of occurrence of events far into the future.  Examples include assumptions about future employment, mortality  and the healthcare cost trend.  Amounts determined regarding the funded status of the plan and the annual required  contributions of the employer are subject to continual revision as actual results are compared with past expectations and  new estimates are made about the future.      Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by  the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between  the employer and plan members to that point.  The projection of benefits for financial reporting purposes does not explicitly  incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the  employer and plan members in the future.  Actuarial calculations reflect a long‐term perspective.  Consistent with that  perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐ term volatility in actuarial accrued liabilities and the actuarial value of assets.     The actuarial methods are:      Actuarial cost method  Entry Age Actuarial       The actuarial assumptions are:      Discount rate  3.25% (Based on the 20 year AA municipal bond rate)    Healthcare cost trend rate  6% decreasing to 5% in 2021 and thereafter    Salary increase  3%    New employees  None    Mortality rates were based on the RP‐2014 Mortality Fully Generational tables using Projection Scale MP‐2018.       76 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    Since the most recent valuation, the following changes have been made:    The discount rate was changed from 2.8% to 3.25%.    The mortality assumption has been updated from RP‐2014 Mortality Fully Generational using Projection Scale MP‐ 2016 to RP 2014 Mortality Fully Generational using Projection Scale MP‐2018    SHERIFF’S 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.      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, 2018, the following employees were covered by the benefit terms:    Inactive employees or beneficiaries currently receiving benefits  129  Active employees 1,153    Total employees 1,282    TOTAL OPEB LIABILITY    The Sheriff’s total OPEB liability of $19,492,497 was measured as of September 30, 2018 and was determined by an actuarial  valuation as of October 1, 2018.  The following table shows the changes in the Sheriff’s total OPEB liability for the year ended  September 30, 2018.    Total OPEB Liability Balance, as of October 1, 2017 18,260,466$  Changes: Service cost 520,082          Interest on total OPEB liability 503,525          Differences between expected and actual experience 2,048,462       Changes in assumptions or other inputs (898,977)         Benefit payments (941,061)           Net changes 1,232,031       Balance, as of September 30, 2018 19,492,497$       77 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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 2.25%3.25%4.25% Total OPEB Liability 21,325,122$    19,492,497$       17,873,887$        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 Healthcare Cost Trend Rate 5.00% 6.00% 7.00% Total OPEB Liability 17,798,126$    19,492,497$       21,430,289$        DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB    For the year ended September 30, 2018, the Sheriff’s OPEB expense was $1,012,248.  In addition, the Sheriff reported  deferred outflows of resources and deferred inflows of resources from the following sources:    Description Deferred Outflows  of Resources Deferred Inflows  of Resources Differences Between Expected and Actual Economic Experience 2,048,462$             72,247$                   Changes in assumptions ‐                                898,977                   2,048,462$             971,224$                   Amounts reported as deferred outflows of resources related to OPEB will be amortized over 7.17 years and will be  recognized as follows:    Year Ending September 30 Amount 2019 148,959$   2020 148,959      2021 148,959      2022 148,959      2023 148,959      Thereafter 332,443              78 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED     ACTUARIAL METHODS AND ASSUMPTIONS    Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the  probability of occurrence of events far into the future.  Examples include assumptions about future employment, mortality  and the healthcare cost trend.  Amounts determined regarding the funded status of the plan and the annual required  contributions of the employer are subject to continual revision as actual results are compared with past expectations and  new estimates are made about the future.      Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by  the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between  the employer and plan members to that point.  The projection of benefits for financial reporting purposes does not explicitly  incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the  employer and plan members in the future.  Actuarial calculations reflect a long‐term perspective.  Consistent with that  perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐ term volatility in actuarial accrued liabilities and the actuarial value of assets.     The actuarial methods are:      Actuarial cost method  Entry Age Actuarial       The actuarial assumptions are:      Discount rate  3.25% (Based on the 20 year AA municipal bond rate)    Healthcare cost trend rate  6% decreasing to 5% in 2021 and thereafter    Salary increase  None    New employees  None    Mortality rates were based on the RP‐2014 Mortality Fully Generational tables using Projection Scale MP‐2017.    Since the most recent valuation, the following changes have been made:    The discount rate was changed from 2.75% to 3.25%.    The mortality assumption has been updated from RP‐2014 Mortality Fully Generational using Projection Scale MP‐ 2016 to RP 2014 Mortality Fully Generational using Projection Scale MP‐2017    SUMMARY    The aggregate amount of total OPEB liability, related deferred outflows of resources and deferred inflows of resources and  OPEB expense for the County’s postemployment benefits plans are summarized below:    County's Sheriff's OPEB Plan OPEB Plan Total Total OPEB liability 8,730,722$      19,492,497$    28,223,219$    Deferred outflows of resources related to OPEB ‐                          2,048,462        2,048,462         Deferred inflows of resources related to OPEB 227,642           971,224           1,198,866         OPEB expense 742,285           1,012,248        1,754,533               79 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      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.      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, 2018.    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 were ordered for portions of Collier County.  The  primary impacts of Hurricane Irma were widespread power outages and debris, coastal flooding and beach erosion. The  County has spent approximately $104 million on recovery efforts and has budgeted an additional $34 million in the 2019  fiscal year.  In 2018, the County recognized $16.2 million in insurance proceeds and $21.7 million in revenue from the Federal  Emergency Management Agency (FEMA).  The County continues to expect significant reimbursements from both insurance  and FEMA.     In September 2018, the County filed a suit against the County’s property insurance carriers and insurance broker to recover  costs incurred for debris removal from roadways and medians under the County’s property insurance policy.  Claims were  originally denied due to the determination that the roadways and medians were not “insurable locations”.  The County  estimates a favorable ruling will result in insurance reimbursements up to $10,000,000.  80 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018      NOTE 16 – SIGNIFICANT COMMITMENTS    Collier  County  has  active  construction  projects  as  of  September  30,  2018.    The  projects  include  road  construction,  governmental facilities and utilities improvements.  At year end, the County’s significant commitments with contractors  include the following:       Construction Category Commitments Governmental Activities: Other Governmental Funds General Government 824,915$          Physical Environment 3,209,759         Transportation 29,434,438      Culture and Recreation 2,564,317         Business‐type Activities: Water and Sewer Utilities 16,511,882      Other Enterprise Funds Airports 9,397,570         Total 61,942,881$       Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the  goods or services have been ordered but not received.  Encumbrance commitments do not include construction contracts,  as they are included as contract commitments.      Collier County had the following significant encumbrances as of September 30, 2018:    Encumbrance Category Commitments Governmental Activities: Other Governmental Funds Public Safety 4,186,310$      Physical Environment 8,217,103         Transportation 3,967,706         Economic Environment 2,738,589         Culture and Recreation 3,732,555         Business‐type Activities: Water and Sewer Utilities 2,234,551         Solid Waste Disposal Landfill 1,404,174         Emergency Medical Services Emergency Medical Services 759,572            Other Enterprise Funds Mass Transit 483,894            Total 27,724,454$       NOTE 17 – SUBSEQUENT EVENTS    On October 24, 2018, Collier County issued the Series 2018 Tourist Development Tax Revenue Bonds in the par amount of  $62,965,000.    The  proceeds  of  the  Series  2018  Bonds  will  be  used  to  pay  the  cost  of  the  development,  acquisition,  construction and equipping of a regional tournament caliber amateur sports complex and associated costs of issuance for the  bonds. The final maturity of the Series 2018 Bonds is October 1, 2048.  The bonds are due in installments of $1,030,000 to  $3,605,000 and interest rates at 4.00% to 5.00%.  The Series 2018 Tourist Development Tax Revenue Bonds were issued as a  competitive public offering, secured by a lien upon and pledge of Tourist Development Tax revenues.       81 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2018    NOTE 18 – FUND DEFICITS  The following funds had a fund balance deficit at September 30, 2018:  Fund Amount 800 MHz ICRP Fund (4,605)$               State Court Administration (63,786)         Government Facilities Impact Fees (182,045)       Total (250,436)$          The unassigned fund balance deficit in the 800 MHz ICRP Fund is the result of classifying a portion of fund balance related to  a pre‐payment of an invoice as nonspendable.  The fund balance deficit in State Court Administration is the result of  operational costs exceeding revenues.  The fund balance deficit in the Government Facilities Impact Fee fund is the result of  advances from other funds made during the current fiscal year.  These advances were recorded to ensure repayment of  monies loaned to fund transfers to debt service funds for scheduled debt service payments.  County management anticipates  that the deficits in both funds will be covered by future years’ revenue.  82 REQUIRED SUPPLEMENTARY  INFORMATION  2018 2017 2016 County's Proportion of the Net Pension Liability 0.804668214% 0.796720676% 0.772938545% County's Proportionate Share of the Net Pension Liability 242,370,237$     235,664,630$     195,167,590$     County's Covered Payroll * 225,786,565$     212,195,163$     199,870,915$     County's Proportionate Share of the Net Pension Liability    (Asset) as a Percentage of Its Covered Payroll 107.34% 111.06%97.65% Plan Fiduciary Net Position as a Percentage of the total    Pension Liability 84.26%83.89%84.88% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date, restated for periods 2014 to 2017  pursuant to GASB No. 82, Pension Issues. 2018 2017 2016 Contractually Required Contribution 23,401,059$      20,299,090$      20,563,824$       Contributions in Relation to the Contractually Required    Contribution (23,401,059)        (20,299,090)        (20,563,824)        Contribution Deficiency (Excess) ‐$ ‐$ ‐$  County's Covered Payroll ‐ Fiscal Year *226,283,207$    216,521,253$    206,179,415$     Contributions as a Percentage of Covered Payroll 10.34%9.38%9.97% * Covered Payroll ‐ Fiscal Year consists of pensionable wages calculated for the respective fiscal year, restated for periods 2014 to 2017  pursuant to GASB No. 82, Pension Issues. 2018 2017 2016 County's Proportion of the Net Pension Liability 0.690065185% 0.665383863% 0.645620406% County's Proportionate Share of the Net Pension Liability 73,037,274$       71,145,914$       75,244,385$       County's Covered Payroll * 225,786,565$     212,195,163$     199,870,915$     County's Proportionate Share of the Net Pension Liability    (Asset) as a Percentage of Its Covered Payroll 32.35%33.53%37.65% Plan Fiduciary Net Position as a Percentage of the total    Pension Liability 2.15%1.64%0.97% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. 2018 2017 2016 Contractually Required Contribution 3,750,438$         3,593,353$         3,415,537$          Contributions in Relation to the Contractually Required    Contribution (3,750,438)          (3,593,353)          (3,415,537)           Contribution Deficiency (Excess)‐$ ‐$ ‐$  County's Covered Payroll ‐ Fiscal Year *226,283,207$    216,521,253$    206,179,415$     Contributions as a Percentage of Covered Payroll 1.66%1.66%1.66% * Covered Payroll ‐ Fiscal Year consists of pensionable wages calculated pursuant to GASB No.82, Pension Issues. 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 84 2015 2014 0.736106708% 0.703655077% 95,078,054$      42,933,306$       195,154,275$    184,577,284$     48.72%23.26% 92.00%96.09% 2015 2014 17,830,147$      17,287,796$       (17,830,147)       (17,287,796)        ‐$                         ‐$                          193,543,352$    185,505,694$     9.21%9.32% 2015 2014 0.642983194% 0.621385755% 65,574,171$      58,101,084$       195,154,275$    184,577,284$     33.60%31.48% 0.50%0.99% 2015 2014 2,614,704$         2,131,155$          (2,614,704)          (2,131,155)           ‐$                         ‐$                          193,543,352$    185,505,694$     1.35%1.15% 85 2018 2017 Board of County Commissioners and Constitutional Officers Total OPEB liability Service Cost 491,865$                464,531$                 Interest 252,345 248,849  Changes of benefit terms ‐ ‐  Differences between expected and actual experience ‐ (8,258)  Changes of assumptions or other inputs (221,309) ‐  Benefit payments (625,275) (589,882)  Net change in total OPEB liability (102,374) 115,240  Total OPEB liability, beginning 8,833,096               8,717,856               Total OPEB liability, ending 8,730,722$             8,833,096$             Sheriff Total OPEB liability Service Cost 520,082$                491,420$                 Interest 503,525 502,621  Changes of benefit terms ‐ ‐  Differences between expected and actual experience 2,048,462               (83,607)  Changes of assumptions or other inputs (898,977) ‐  Benefit payments (941,061) (871,353)  Net change in total OPEB liability 1,232,031               39,081  Total OPEB liability, beginning 18,260,466             18,221,385             Total OPEB liability, ending 19,492,497$           18,260,466$           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 86 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.   AVA MARIA INNOVATION ZONE – To account for the accumulation of resources for economic development in  accordance with an approved tax increment financing plan.    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  POOLED COMMERCIAL PAPER PROGRAM – To account for the accumulation of resources and payment of interest  and principal on long‐term debt incurred for the acquisition of land for the County’s amateur sports park.  GAS TAX 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 revenue bonds.  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.   AMATEUR  SPORTS  COMPLEX  –  To  account for  major  capital expenditures  related  to  the  new  Amateur  Sports  Complex.  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  2,299,247$      14,460,604$          50,927,658$       2,784,751$        5,472,831$         Cash with fiscal agent  ‐ ‐ ‐ ‐ ‐  Receivables:  Interest 9,840                43,509 101,391              7,068 8,856  Trade, net 42,043             136,285                 1,730 190 48,925                 Notes ‐ ‐ ‐ ‐ ‐  Impact Fee ‐ ‐ ‐ ‐ ‐  Special assessments ‐ ‐ ‐ ‐ ‐  Due from other funds  872,580           397,981                 ‐ 94,627               1,414,415            Due from other governments  2,919                414,726                 104,351              2,338 6,891,572            Deposits ‐ ‐ ‐ ‐ ‐  Inventory for resale ‐ ‐ ‐ ‐ ‐  Inventory 815,174           21,031 ‐ 46,459               ‐  Advances to other funds  ‐ 342,829                 9,264 ‐ ‐  Prepaid costs ‐ ‐ ‐ ‐ ‐  Total assets 4,041,803$     15,816,965$         51,144,394$      2,935,433$       13,836,599$       LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable 442,039$         1,079,612$           531,196$            208,594$           5,988,586$         Wages payable 425,575           525,327                 652,316              95,317               113,098               Due to other funds ‐ 6,382 ‐ ‐ 1,673,343            Due to other governments  132 3,035 3,637,552           ‐ 2,211  Unearned revenues ‐ 8,189 ‐ ‐ ‐  Refundable deposits ‐ 828 61,785                ‐ ‐  Retainage payable ‐ 13,242 ‐ ‐ 15,254                 Advances from other funds  ‐ ‐ ‐ ‐ ‐  Total liabilities 867,746           1,636,615             4,882,849           303,911             7,792,492            Deferred inflows of resources:   Unavailable revenue ‐ ‐ ‐ ‐ 4,998  Fund balances:   Nonspendable 815,174           363,860                 9,264 46,459               ‐  Restricted 2,358,883        ‐  46,252,281        ‐  6,039,109            Committed ‐  13,816,490           ‐  2,585,063         ‐  Assigned ‐ ‐ ‐ ‐ ‐  Unassigned ‐ ‐ ‐ ‐ ‐  Total fund balances 3,174,057        14,180,350           46,261,545        2,631,522         6,039,109            Total liabilities, deferred inflows of   resources and fund balances 4,041,803$     15,816,965$         51,144,394$      2,935,433$       13,836,599$       See accompanying independent auditors' report   Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2018 92 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership ICRP Fund Administration 14,975,311$       608,097$     1,768,288$      2,755,161$      73,373,495$      4,930,543$      108,629$     126$                      ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              31,393                1,269            3,910                5,759                151,701              10,791              190               265                         133                      ‐                     ‐                         ‐                         985,547              9,603                17,401          11,338                   ‐                            ‐                     ‐                         ‐                         ‐                             430,284           ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              36,572                13,941          11,614              ‐                         250,574              ‐                          32,682          ‐                              ‐                            ‐                     ‐                         ‐                         20,481                ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                          10,400          ‐                              15,043,409$      623,307$     1,783,812$      2,760,920$      74,781,798$      5,381,221$      169,302$     11,729$                 288,632$            6,302$          72,282$           30,732$            3,634,571$        300,541$         163,507$     55$                         16,409                ‐                     4,270                14,956              106,119              4,479                ‐                     65,455                   1,482                   ‐                     ‐                          118,776            ‐                            ‐                         ‐                     10,005                   7                           ‐                     ‐                         ‐                         6                           ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              3,195                   ‐                     ‐                         ‐                         25                        ‐                         ‐                     ‐                              45,839                ‐                     ‐                         ‐                         522,783              ‐                         ‐                     ‐                              113,800              268,100       ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              469,364              274,402       76,552              164,464            4,263,504           305,020           163,507       75,515                   ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                          10,400          ‐                              ‐                            ‐                     ‐                          2,596,456        70,518,294        5,076,201        ‐                     ‐                              14,574,045        348,905       1,707,260        ‐                         ‐                            ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                         ‐                     ‐                              ‐                            ‐                     ‐                         ‐                         ‐                            ‐                          (4,605)           (63,786)                 14,574,045        348,905       1,707,260        2,596,456        70,518,294        5,076,201        5,795            (63,786)                 15,043,409$      623,307$     1,783,812$      2,760,920$      74,781,798$      5,381,221$      169,302$     11,729$                 Special Revenue Funds 93 GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services ASSETS Cash and investments  118,197$        875,106$         1,461,450$       32,639,328$         1,060,363$         1,553,666$       Cash with fiscal agent  ‐ ‐ ‐ ‐ ‐ ‐  Receivables:  Interest 293 1,792               2,818                67,053 2,456 ‐  Trade, net ‐ ‐  16,503              78 61,846                ‐  Notes ‐ ‐ ‐ ‐ ‐ ‐  Impact Fee ‐ ‐ ‐ ‐ ‐ ‐  Special assessments ‐ ‐ ‐ ‐ ‐ ‐  Due from other funds  ‐ ‐ ‐ ‐ ‐ ‐  Due from other governments  ‐ ‐ ‐ ‐ ‐  34,316               Deposits ‐ ‐ ‐ ‐ ‐ ‐  Inventory for resale ‐  229,733           ‐ ‐ ‐ ‐  Inventory ‐ ‐ ‐ ‐ ‐ ‐  Advances to other funds  ‐ ‐ ‐ ‐ ‐ ‐  Prepaid costs ‐ ‐ ‐ ‐ ‐ ‐  Total assets 118,490$       1,106,631$     1,480,771$      32,706,459$        1,124,665$        1,587,982$       LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable 1,522$            ‐$  4,473$              67,292$                78,808$             320,765$          Wages payable ‐ ‐ 7,505                11,384 2,084 ‐  Due to other funds 5,231              ‐ ‐ ‐ ‐ ‐  Due to other governments  ‐ ‐ ‐ ‐ 14,356                1,267,217         Unearned revenues ‐ ‐ ‐ ‐ ‐ ‐  Refundable deposits ‐ ‐ ‐ ‐ ‐ ‐  Retainage payable ‐ ‐ ‐ ‐ ‐ ‐  Advances from other funds  ‐ ‐ ‐ ‐ ‐ ‐  Total liabilities 6,753              ‐  11,978              78,676 95,248                1,587,982         Deferred inflows of resources:   Unavailable revenue ‐ ‐ ‐ ‐ ‐ ‐  Fund balances:   Nonspendable ‐ ‐ ‐ ‐ ‐ ‐  Restricted 111,737         1,106,631       ‐  32,627,783          1,029,417          ‐  Committed ‐ ‐  1,468,793        ‐ ‐ ‐  Assigned ‐ ‐ ‐ ‐ ‐ ‐  Unassigned ‐ ‐ ‐ ‐ ‐ ‐  Total fund balances 111,737         1,106,631       1,468,793        32,627,783          1,029,417          ‐  Total liabilities, deferred inflows of   resources and fund balances 118,490$       1,106,631$     1,480,771$      32,706,459$        1,124,665$        1,587,982$       See accompanying independent auditors' report   Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2018 94 Other Other Other Total Court Ave Maria Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Revenue Revenue Revenue Extension Fee Housing Zone Funds Funds Funds Funds 82,056$      6,091,574$     175,484$     139,108$     4,504,448$      4,254,353$      962,029$      228,381,903$        ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      ‐                               224              12,477             358               237               ‐                         2,917                2,074             468,641                  ‐                     58,656             ‐                    ‐                     10,937              94,720              20,328           1,516,263              ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      430,284                  ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      ‐                               ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      ‐                               ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         141                3,125,127              ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         40                   7,470,743              ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      ‐                               ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      229,733                  ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      882,664                  ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      352,093                  ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      10,400                    82,280$      6,162,707$     175,842$     139,345$     4,515,385$      4,351,990$      984,612$      242,867,851$        204$            42,660$           ‐$                  ‐$                    42,705$            26,845$           15,812$        13,347,735$          ‐                    ‐                         ‐                    ‐                     ‐                         4,208                4,249             2,052,751              ‐                    ‐                         ‐                     22,867          ‐                         90,710              ‐                       1,928,796              ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         248                4,924,764              ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      8,189                      ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      65,833                    ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      597,118                  ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      381,900                  204              42,660             ‐                     22,867          42,705              121,763           20,309           23,307,086            ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      4,998                      ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                       1,245,157              82,076        6,120,047        ‐                    ‐                      4,472,680        4,230,227        156,929        182,778,751          ‐                    ‐                          175,842       116,478       ‐                         ‐                         ‐                       34,792,876            ‐                    ‐                         ‐                    ‐                     ‐                         ‐                          807,374        807,374                  ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                      (68,391)                   82,076        6,120,047        175,842       116,478       4,472,680        4,230,227        964,303        219,555,767          82,280$      6,162,707$     175,842$     139,345$     4,515,385$      4,351,990$      984,612$      242,867,851$        Special Revenue Funds 95 Permanent Fund Pooled Resource Commercial Gas Tax Community Forest Lakes Recovery Park Paper Revenue Redevelopment Limited General Endowment Program Bonds Taxable Note Oblibation Bonds ASSETS Cash and investments  1,730,376$             10,162$           841,501$          40,553$                  662,795$   Cash with fiscal agent ‐ ‐ ‐ 316,019 ‐  Receivables:  Interest 3,524 1  1,547                20 1,362  Trade, net ‐ ‐ ‐ ‐ ‐  Notes ‐ ‐ ‐ ‐ ‐  Impact Fee ‐ ‐ ‐ ‐ ‐  Special assessments ‐ ‐ ‐ ‐ ‐  Due from other funds  ‐ ‐ ‐ ‐ 4,707  Due from other governments  ‐  17,263            181,065           ‐ ‐  Deposits ‐ ‐ ‐ ‐ ‐  Inventory for resale ‐ ‐ ‐ ‐ ‐  Inventory ‐ ‐ ‐ ‐ ‐  Advances to other funds  ‐ ‐ ‐ ‐ ‐  Prepaid costs ‐ ‐ ‐ ‐ ‐  Total assets 1,733,900$            27,426$          1,024,113$      356,592$               668,864$   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 151,100 27,426            1,024,113        356,592 668,864  Committed ‐ ‐ ‐ ‐ ‐  Assigned ‐ ‐ ‐ ‐ ‐  Unassigned ‐ ‐ ‐ ‐ ‐  Total fund balances 1,733,900              27,426            1,024,113        356,592 668,864  Total liabilities, deferred inflows of   resources and fund balances 1,733,900$            27,426$          1,024,113$      356,592$               668,864$   See accompanying independent auditors' report   Debt Service Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2018 96 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 65,789$               13,689$     1,634,489$        9,120,119$        4,522,610$        379,982$         105,114$        2,139,605$         11,473,990         ‐                   11,790,009        ‐                           ‐                           ‐                         ‐                        ‐                            5,068                    ‐                  7,998                   12,345                8,873                  1,789                2,858               4,747                   ‐                             ‐                  ‐                            38,981                34,390                ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                            209,540           81,245             58,937                 ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  4,707                   ‐                           37,287                409,000           1,370,000       209,000              ‐                             ‐                  198,328              12,203                ‐                           6,079                9,354               2,573                   ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                             5,306,800          ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            11,544,847$       13,689$     13,635,531$      14,490,448$      4,603,160$        1,006,390$     1,568,571$     2,414,862$         ‐$                          ‐$                ‐$                          1,059,289$        221,813$           19,567$           ‐$                      17,332$              ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            8,650,000            56               8,650,056           63,471                ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                             1,091,105          ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           311,600           ‐                         1,962,800           8,650,000            56               8,650,056           2,213,865          221,813              331,167           ‐                         1,980,132           ‐                             ‐                  ‐                            ‐                           ‐                            209,540           81,245             58,937                 ‐                             ‐                  ‐                             5,306,800          ‐                           ‐                         ‐                        ‐                            2,894,847            13,633       4,985,475           ‐                           ‐                            465,683           1,487,326       375,793              ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            ‐                             ‐                  ‐                             6,969,783          4,381,347          ‐                         ‐                        ‐                            ‐                             ‐                  ‐                            ‐                           ‐                           ‐                         ‐                        ‐                            2,894,847            13,633       4,985,475           12,276,583        4,381,347          465,683           1,487,326       375,793              11,544,847$       13,689$     13,635,531$      14,490,448$      4,603,160$        1,006,390$     1,568,571$     2,414,862$         Debt Service Funds Capital Project Funds 97 Parks Road Government Water Impact Impact Road Facilities Management Districts Districts Construction Impact Fees ASSETS Cash and investments 10,413,791$        23,937,305$      75,604,254$      49,832,753$       353,669$         Cash with fiscal agent ‐ ‐ ‐ ‐ ‐  Receivables:  Interest 20,902 52,179                147,185              96,335                 6,537                Trade, net ‐ ‐ ‐ ‐ ‐  Notes ‐ ‐ ‐ ‐ ‐  Impact Fee ‐  1,312,800           3,479,544           ‐  219,543            Special assessments ‐ ‐ ‐ ‐ ‐  Due from other funds  634,794                2,489,000           ‐ 680,110               2,795,000        Due from other governments  ‐ 50,468                155,592              1,685,620           16,924              Deposits ‐ 1,250 ‐ ‐ ‐  Inventory for resale ‐ ‐ ‐ ‐ ‐  Inventory ‐ ‐ ‐ ‐ ‐  Advances to other funds  ‐ ‐ ‐ ‐ ‐  Prepaid costs ‐ ‐ ‐ ‐ ‐  Total assets 11,069,487$        27,843,002$      79,386,575$      52,294,818$       3,391,673$      LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable 5,307,013$          417,023$            397,523$            2,263,701$         ‐$  Wages payable 3,225 ‐ ‐ 1,534 ‐  Due to other funds 1,266,790            ‐ ‐ ‐ ‐  Due to other governments  ‐ ‐ ‐ ‐ ‐  Unearned revenues ‐ ‐ ‐ ‐ ‐  Refundable deposits ‐ ‐ ‐ ‐ ‐  Retainage payable 192,544                432,447              153,301              687,334               ‐  Advances from other funds  ‐ ‐ ‐ ‐  3,354,175        Total liabilities 6,769,572            849,470              550,824              2,952,569           3,354,175        Deferred inflows of resources:   Unavailable revenue ‐  1,312,800           3,479,544           ‐  219,543            Fund balances:   Nonspendable ‐ ‐ ‐ ‐ ‐  Restricted ‐  25,680,732        75,356,207        49,342,249         ‐  Committed ‐ ‐ ‐ ‐ ‐  Assigned 4,299,915            ‐ ‐ ‐ ‐  Unassigned ‐ ‐ ‐ ‐  (182,045)          Total fund balances 4,299,915            25,680,732        75,356,207        49,342,249         (182,045)          Total liabilities, deferred inflows of   resources and fund balances 11,069,487$        27,843,002$      79,386,575$      52,294,818$       3,391,673$      See accompanying independent auditors' report   Capital Project Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2018 98 Total Total Law All Terrain Amateur Other Capital Nonmajor Enforcement Vehicle Sports Capital Project Governmental Impact Fees Park Complex Projects Funds Funds 1,153,391$     3,037,036$       75,878$             1,788,482$      182,463,989$       414,210,757$        ‐                        ‐                          ‐                          ‐                         ‐                               11,790,009             2,965               6,179                 212                     3,552                366,658                 846,821                   ‐                        ‐                          ‐                          ‐                         73,371                   1,589,634               ‐                        ‐                          ‐                          ‐                         ‐                              430,284                   86,851             ‐                          ‐                          ‐                          5,448,460             5,448,460               ‐                        ‐                          ‐                          1,405                1,405                     1,405                       506,000           ‐                          ‐                          3,299                9,133,490             12,263,324             ‐                        ‐                          ‐                          ‐                          1,938,813             9,607,884               ‐                        ‐                          ‐                          ‐                         1,250                     1,250                       ‐                        ‐                          ‐                          ‐                         ‐                              229,733                   ‐                        ‐                          ‐                          ‐                         ‐                              882,664                   ‐                        ‐                          ‐                          ‐                          5,306,800             5,658,893               ‐                        ‐                          ‐                          ‐                         ‐                              10,400                     1,749,207$     3,043,215$       76,090$             1,796,738$      204,734,236$       462,971,518$        529$                ‐$                        ‐$                         68,299$           9,772,089$           23,119,824$           ‐                        ‐                          ‐                          ‐                         4,759                     2,057,510               ‐                        ‐                          ‐                          ‐                          1,330,261             11,909,113             ‐                        ‐                          ‐                          ‐                         ‐                              4,924,764               ‐                        ‐                          ‐                          ‐                         ‐                              8,189                       ‐                        ‐                          ‐                          ‐                         ‐                              65,833                     ‐                        ‐                          ‐                          3,480                2,560,211             3,157,329               ‐                        ‐                          ‐                          9,264                5,637,839             6,019,739               529                   ‐                          ‐                          81,043              19,305,159           51,262,301             86,851             ‐                          ‐                          ‐                          5,448,460             5,453,458               ‐                        ‐                          ‐                          ‐                          5,306,800             8,134,757               1,661,827       ‐                          76,090               88,065              154,533,972         342,449,298           ‐                        ‐                          ‐                          ‐                         ‐                               34,792,876             ‐                         3,043,215         ‐                           1,627,630        20,321,890           21,129,264             ‐                        ‐                          ‐                          ‐                         (182,045)                (250,436)                 1,661,827       3,043,215         76,090               1,715,695        179,980,617         406,255,759           1,749,207$     3,043,215$       76,090$             1,796,738$      204,734,236$       462,971,518$        Capital Project Funds 99 Water Management Grants and Road Unincorporated Community and Pollution Shared Districts Area MSTD Development Control Revenue Revenues: Taxes  ‐$  45,000,766$         ‐$  2,362,409$       ‐$  Licenses, permits and impact fees ‐ 35,038 28,497,585          575 ‐  Intergovernmental 1,917,463            34,197 ‐ ‐  15,933,755         Charges for services 417,932                2,643,359             3,722,674             382,011             4,163  Fines and forfeitures ‐ 264,174                 ‐ ‐ ‐  Interest income 43,507 294,211                 499,006                47,214               47,740                 Special assessments ‐ ‐ ‐  3,918,172         ‐  Miscellaneous  46,629 291,928                 49,984 2,058 273,347               Total revenues 2,425,531            48,563,673           32,769,249          6,712,439         16,259,005         Expenditures: Current: General government ‐  5,851,899             7,710,441             ‐ 815,953               Public safety  ‐  4,212,139             17,603,497          ‐ 848,793               Physical environment ‐  1,598,543             1,665,343             3,216,746         5,565,586            Transportation 21,579,878          10,038,429           360,035                2,569,065         39,668                 Economic environment ‐ 103,553                 ‐ ‐  4,361,305            Human services ‐ ‐ ‐ ‐  3,646,095            Culture and recreation ‐  12,445,470           ‐ ‐ 121,133               Debt service Principal ‐ ‐ ‐ ‐ ‐  Interest ‐ ‐ ‐ ‐ ‐  Fiscal charges ‐ ‐ ‐ ‐ ‐  Capital outlay 444,100                 2,721,442              579,265                 317,284              4,719,202            Total expenditures  22,023,978          36,971,475           27,918,581          6,103,095         20,117,735         Excess (deficit) of revenues     over (under) expenditures  (19,598,447)        11,592,198           4,850,668             609,344             (3,858,730)          Other financing sources (uses): Loans issued ‐ ‐ ‐ ‐ ‐  Sale of capital assets  11,000 ‐ 7,400 23,150               ‐  Insurance proceeds 388,891                4,585 4,475 2,641 ‐  Payment to refunding escrow ‐ ‐ ‐ ‐ ‐  Transfers in 21,786,900          1,686,674             916,500                94,627               3,763,977            Transfers out (2,733,400)           (12,329,604)          (536,000)               (513,732)           ‐  Total other financing sources (uses) 19,453,391          (10,638,345)          392,375                (393,314)           3,763,977            Net change in fund balances (145,056)              953,853                 5,243,043             216,030             (94,753)                Fund balances at beginning of year 3,319,113            13,226,497           41,018,502          2,415,492         6,133,862            Fund balances at end of year 3,174,057$          14,180,350$         46,261,545$        2,631,522$       6,039,109$         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, 2018 100 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership ICRP Fund Administration 4,067,218$          1,488,062$        1,381,199$       ‐$                        27,962,471$        ‐$                       ‐$                    ‐$                            ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              ‐                             ‐                           ‐                           1,749,505        51,540                  1,072,746        ‐                      ‐                              180,883                5,097                  ‐                          ‐                         16,033                  ‐                          349,869         199,685                 ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                      716,752                 164,410                13,033                21,526               30,188              736,116                55,170              1,267             2,355                     ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              8,080                     ‐                           23,255               ‐                         89,311                  479,957            144,855         10,322                   4,420,591             1,506,192          1,425,980         1,779,693        28,855,471          1,607,873        495,991         929,114                 ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                       1,106,242             ‐                              2,064,182          ‐                           1,858,454        ‐                             ‐                          1,264,126     1,510,904             1,235,786             ‐                           ‐                          ‐                          7,887,830             ‐                         ‐                      ‐                              723,702                ‐                            1,091,379         ‐                         ‐                             ‐                         ‐                      ‐                              ‐                             ‐                           ‐                          ‐                         ‐                              1,722,313        ‐                      ‐                              ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              1,001,910             ‐                           ‐                          ‐                          13,827,928          ‐                         ‐                      ‐                              ‐                             23,890                ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              ‐                             5,812                  ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              385,327                ‐                           ‐                          86,287              6,576,803             2,756                ‐                      3,449                     3,346,725             2,093,884          1,091,379         1,944,741        28,292,561          1,725,069        1,264,126     2,620,595             1,073,866             (587,692)            334,601            (165,048)           562,910                (117,196)           (768,135)       (1,691,481)            ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              12,879                  ‐                           4,253                 ‐                         ‐                             ‐                         ‐                      ‐                              ‐                             ‐                           ‐                          ‐                         ‐                             ‐                         ‐                      ‐                              585,673                579,041             11,614               ‐                         649,507                ‐                          712,600         1,555,200             (600,059)               (58,721)              (34,980)             ‐                          (1,002,012)           (31,572)             ‐                      (86,000)                 (1,507)                   520,320             (19,113)             ‐                         (352,505)               (31,572)             712,600         1,469,200             1,072,359             (67,372)              315,488            (165,048)           210,405                (148,768)           (55,535)          (222,281)               13,501,686          416,277             1,391,772         2,761,504        70,307,889          5,224,969        61,330           158,495                 14,574,045$        348,905$           1,707,260$       2,596,456$      70,518,294$        5,076,201$      5,795$           (63,786)$               Special Revenue Funds 101 GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services Revenues: Taxes  ‐$  ‐$   137,478$         1,824$                ‐$  ‐$   Licenses, permits and impact fees ‐ ‐ ‐ ‐ ‐ ‐  Intergovernmental ‐ ‐ ‐ ‐ ‐  402,809            Charges for services ‐ ‐  100,000           72 886,824            6,827,098         Fines and forfeitures 4,678              ‐ ‐ ‐ ‐ ‐  Interest income 1,847              9,356               14,908              351,789              11,999              44,246               Special assessments ‐ ‐ ‐ ‐ ‐ ‐  Miscellaneous  ‐ ‐ ‐  256,623              ‐ ‐  Total revenues 6,525              9,356               252,386           610,308              898,823            7,274,153         Expenditures: Current: General government ‐ ‐ ‐ ‐  778,446            7,290,573         Public safety  29,000            ‐ ‐ ‐ 10,807              ‐  Physical environment ‐ ‐  266,184           689,221              ‐ ‐  Transportation ‐ ‐ ‐ ‐ ‐ ‐  Economic environment ‐ ‐ ‐ ‐ ‐ ‐  Human services ‐ ‐ ‐ ‐ 24,419              ‐  Culture and recreation ‐ ‐ ‐ ‐ ‐ ‐  Debt service Principal ‐ ‐ ‐ ‐ ‐ ‐  Interest ‐ ‐ ‐ ‐ ‐ ‐  Fiscal charges ‐ ‐ ‐ ‐ ‐ ‐  Capital outlay ‐ ‐ ‐  119,024              46,684              ‐  Total expenditures  29,000            ‐  266,184           808,245              860,356            7,290,573         Excess (deficit) of revenues     over (under) expenditures  (22,475)          9,356               (13,798)            (197,937)            38,467              (16,420)             Other financing sources (uses): Loans issued ‐ ‐ ‐ ‐ ‐ ‐  Sale of capital assets  ‐ ‐ ‐ 2,200 ‐ ‐  Insurance proceeds ‐ ‐ ‐ 240 ‐ ‐  Payment to refunding escrow ‐ ‐ ‐ ‐ ‐ ‐  Transfers in ‐ ‐ ‐ ‐ ‐ ‐  Transfers out (43,841)          ‐ ‐ (9,982)                 (36,300)             ‐  Total other financing sources (uses) (43,841)          ‐ ‐ (7,542)                 (36,300)             ‐  Net change in fund balances (66,316)          9,356               (13,798)            (205,479)            2,167                (16,420)             Fund balances at beginning of year 178,053         1,097,275       1,482,591        32,833,262        1,027,250        16,420               Fund balances at end of year 111,737$       1,106,631$     1,468,793$      32,627,783$      1,029,417$      ‐$   See accompanying independent auditors' report   COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 Special Revenue Funds 102 Other Other Other Total Court Ave Maria Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Revenue Revenue Revenue Extension Fee Housing Zone Funds Funds Funds Funds ‐$                 ‐$                       ‐$                  ‐$                   ‐$                       ‐$                       ‐$                   82,401,427$          ‐                    ‐                         ‐                    ‐                     ‐                         ‐                          76,510         28,609,708            ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                     21,162,015            6,455           ‐                          16,332         ‐                      1,140,307        868,201           275,131       18,042,126            ‐                     827,051           ‐                    ‐                     ‐                         74,248              47,242         1,934,145              1,243           64,744              1,782            1,195            39,332              16,282              11,594         2,526,060              ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                     3,918,172              ‐                    ‐                         ‐                    ‐                     ‐                         5,928                166,574       1,848,851              7,698           891,795           18,114         1,195            1,179,639        964,659           577,051       160,442,504          ‐                     368,417           ‐                    ‐                      982,364            ‐                          193,290       25,097,625            ‐                    ‐                         ‐                    ‐                     ‐                          1,040,869        111,000       30,553,771            49,700        ‐                         ‐                    ‐                     ‐                         ‐                         ‐                     22,174,939            ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                     36,402,156            ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                     6,187,171              ‐                    ‐                         ‐                    ‐                     ‐                         ‐                          289,546       3,960,060              ‐                    ‐                         ‐                    ‐                     ‐                         ‐                          96,506         27,492,947            ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                    23,890                    ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                    5,812                      ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                    ‐                               ‐                     216,317           ‐                    ‐                     ‐                         12,018              83,539         16,313,497            49,700        584,734           ‐                    ‐                      982,364            1,052,887        773,881       168,211,868          (42,002)       307,061           18,114         1,195            197,275            (88,228)            (196,830)      (7,769,364)             ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                    ‐                               ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                    43,750                    ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                    417,964                  ‐                    ‐                         ‐                    ‐                     ‐                         ‐                         ‐                    ‐                               ‐                    ‐                         ‐                     83,900          ‐                          250,000           197,000       32,873,213            ‐                    ‐                         ‐                    ‐                     ‐                          (92,048)            ‐                     (18,108,251)           ‐                    ‐                         ‐                     83,900          ‐                          157,952           197,000       15,226,676            (42,002)       307,061           18,114         85,095          197,275            69,724              170               7,457,312              124,078      5,812,986        157,728       31,383          4,275,405        4,160,503        964,133       212,098,455          82,076$      6,120,047$      175,842$     116,478$     4,472,680$      4,230,227$      964,303$     219,555,767$        Special Revenue Funds 103 Permanent Fund Pooled Resource Commercial Gas Tax Community Forest Lakes Recovery Park Paper Revenue Redevelopment Limited General Endowment Program Bonds Taxable Note Oblibation Bonds Revenues: Taxes  ‐$ ‐$  ‐$ ‐$ 487,602$   Licenses, permits and impact fees ‐ ‐ ‐ ‐ ‐  Intergovernmental ‐ ‐  2,017,122         ‐ ‐  Charges for services ‐ ‐ ‐ ‐ ‐  Fines and forfeitures ‐ ‐ ‐ ‐ ‐  Interest income 18,415 1 16,002               935 7,664  Special assessments ‐ ‐ ‐ ‐ ‐  Miscellaneous  250 ‐ ‐ ‐ ‐  Total revenues 18,665 1  2,033,124         935 495,266  Expenditures: Current: General government ‐ ‐ ‐ ‐ ‐  Public safety  ‐ ‐ ‐ ‐ ‐  Physical environment 9,909 ‐ ‐ ‐ ‐  Transportation ‐ ‐ ‐ ‐ ‐  Economic environment ‐ ‐ ‐ ‐ ‐  Human services ‐ ‐ ‐ ‐ ‐  Culture and recreation ‐ ‐ ‐ ‐ ‐  Debt service Principal ‐  100,000           10,510,000       456,891                460,000  Interest ‐ 133,296           2,737,194         173,160                95,475  Fiscal charges ‐  24,000             1,647 ‐ 2,875  Capital outlay ‐ ‐ ‐ ‐ ‐  Total expenditures  9,909 257,296           13,248,841       630,051                558,350  Excess (deficit) of revenues     over (under) expenditures  8,756 (257,295)         (11,215,717)      (629,116)              (63,084)  Other financing sources (uses): Loans issued ‐  41,721             ‐ ‐ ‐  Sale of capital assets  ‐ ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐ ‐ ‐ ‐  Payment to refunding escrow ‐ ‐ ‐ ‐ ‐  Transfers in ‐  243,000           11,271,000       631,000                4,707  Transfers out ‐ ‐ ‐ ‐ (15,084)  Total other financing sources (uses) ‐  284,721           11,271,000       631,000                (10,377)  Net change in fund balances 8,756 27,426             55,283               1,884 (73,461)  Fund balances at beginning of year 1,725,144              ‐  968,830             354,708                742,325  Fund balances at end of year 1,733,900$            27,426$           1,024,113$       356,592$             668,864$   See accompanying independent auditors' report   COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 Debt Service Funds 104 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 ‐$  179$          487,781$           ‐$ ‐$ ‐$  ‐$  ‐$   ‐  ‐ ‐ ‐ 603,390              1,053,844      1,807,511       464,357          ‐  ‐  2,017,122         897 2,084 ‐ ‐ ‐  ‐  ‐ ‐ ‐ ‐ ‐ ‐ ‐  ‐  ‐ ‐ ‐ ‐ ‐ ‐ ‐  21,927 30               46,559               65,964                47,003                10,980            11,034             20,556             ‐  ‐ ‐ ‐ ‐ ‐ ‐ ‐  ‐  ‐ ‐ ‐ ‐ ‐ ‐ ‐  21,927 209             2,551,462         66,861                652,477              1,064,824      1,818,545       484,913          ‐  ‐ ‐  9,736,798          ‐ ‐ ‐ ‐  ‐  ‐ ‐ 453,111              ‐ ‐  35,762             16,874             ‐  ‐ ‐ 131,067              ‐ ‐ ‐ ‐  ‐  ‐ ‐ 223,751              ‐ ‐ ‐ ‐  ‐  ‐ ‐ ‐ ‐ ‐ ‐ ‐  ‐  ‐ ‐ 44,480                ‐ ‐ ‐ ‐  ‐  ‐ ‐ 341 2,778,479          ‐ ‐ ‐  10,258,000         ‐  21,784,891       ‐ ‐ ‐ ‐ ‐  7,011,903            ‐  10,151,028       ‐ ‐ ‐ ‐ ‐  99,018 ‐  127,540             ‐ ‐ ‐ ‐ ‐  ‐  ‐ ‐  4,238,203          2,146,753          417,290         ‐  122,618          17,368,921         ‐  32,063,459       14,827,751        4,925,232          417,290         35,762             139,492          (17,346,994)        209              (29,511,997)      (14,760,890)       (4,272,755)         647,534         1,782,783       345,421          43,713,000         ‐  43,754,721       ‐ ‐ ‐ ‐ ‐  ‐  ‐ ‐ 69,000                ‐ ‐ ‐ ‐  ‐  ‐ ‐ 588,893              1,167,274          ‐ ‐ ‐  (44,525,435)        ‐  (44,525,435)      ‐ ‐ ‐ ‐ ‐  18,047,800         ‐  30,197,507       16,952,315        2,642,787          ‐ ‐ ‐  ‐   (12,339)      (27,423)              (967,363)            (11,671)               (1,158,900)    (1,858,500)      (448,400)         17,235,365         (12,339)      29,399,370       16,642,845        3,798,390          (1,158,900)    (1,858,500)      (448,400)         (111,629)              (12,130)      (112,627)           1,881,955          (474,365)            (511,366)        (75,717)            (102,979)         3,006,476            25,763       5,098,102         10,394,628        4,855,712          977,049         1,563,043       478,772          2,894,847$         13,633$     4,985,475$       12,276,583$      4,381,347$        465,683$       1,487,326$     375,793$        Debt Service Funds Capital Project Funds 105 Parks Road Government Water Impact Impact Road Facilities Management Districts Districts Construction Impact Fees Revenues: Taxes ‐$ ‐$ ‐$  16,139,631$       ‐$   Licenses, permits and impact fees ‐  10,819,875        26,579,266        ‐  3,097,079       Intergovernmental 29,842 ‐ ‐  4,591,815           ‐  Charges for services ‐ ‐ ‐ 12,406                 ‐  Fines and forfeitures ‐ ‐ ‐ ‐ ‐  Interest income 124,909                269,926              695,175              502,781               33,286             Special assessments 716,515                ‐ ‐ ‐ ‐  Miscellaneous  20,022 ‐ 92,179                542,007               ‐  Total revenues 891,288                11,089,801        27,366,620        21,788,640         3,130,365       Expenditures: Current: General government ‐ ‐ ‐ ‐ ‐  Public safety  ‐ ‐ ‐ ‐ ‐  Physical environment 8,847,380            ‐ ‐ ‐ ‐  Transportation ‐ ‐  384,899              8,550,165           ‐  Economic environment ‐ ‐ ‐ ‐ ‐  Human services ‐ ‐ ‐ ‐ ‐  Culture and recreation ‐ 231,093              ‐ ‐ ‐  Debt service Principal ‐ ‐ ‐ ‐ ‐  Interest ‐ ‐ ‐ ‐ ‐  Fiscal charges ‐ ‐ ‐ ‐ ‐  Capital outlay 4,661,666             7,944,820            4,987,650            13,330,409          ‐  Total expenditures   13,509,046           8,175,913            5,372,549            21,880,574          ‐  Excess (deficit) of revenues     over (under) expenditures  (12,617,758)        2,913,888           21,994,071        (91,934)                3,130,365       Other financing sources (uses): Loans issued ‐ ‐ ‐ ‐ ‐  Sale of capital assets  ‐ ‐ ‐ ‐ ‐  Insurance proceeds 158,063                ‐ ‐  1,217,934           ‐  Payment to refunding escrow ‐ ‐ ‐ ‐ ‐  Transfers in 5,943,107            ‐ ‐  12,150,400         ‐  Transfers out (2,276,921)           (2,939,600)         (440,316)             (11,349,135)        (5,705,200)      Total other financing sources (uses) 3,824,249            (2,939,600)         (440,316)             2,019,199           (5,705,200)      Net change in fund balances (8,793,509)           (25,712)               21,553,755        1,927,265           (2,574,835)      Fund balances at beginning of year 13,093,424          25,706,444        53,802,452        47,414,984         2,392,790       Fund balances at end of year 4,299,915$          25,680,732$      75,356,207$      49,342,249$       (182,045)$       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, 2018 106 Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Amateur Capital Project Governmental Impact Fees Park Sports Park Projects Funds Funds ‐$                      ‐$                       ‐$                           ‐$                        16,139,631$         99,028,839$           1,842,830       ‐                         ‐                             8,490                46,276,642           74,886,350             ‐                        ‐                         ‐                             ‐                          4,624,638             27,803,775             ‐                        ‐                         ‐                             ‐                         12,406                   18,054,532             ‐                        ‐                         ‐                             ‐                         ‐                              1,934,145               16,980             32,211              1,455                    18,556              1,850,816             4,441,850               ‐                        ‐                         ‐                              154,739           871,254                 4,789,426               ‐                        ‐                         ‐                             28                      654,236                 2,503,337               1,859,810       32,211              1,455                    181,813           70,429,623           233,442,254           ‐                        ‐                         ‐                             9,264                9,746,062             34,843,687             6,699               ‐                         ‐                             8,624                521,070                 31,074,841             ‐                        ‐                         ‐                              146,756           9,125,203             31,310,051             ‐                        ‐                         ‐                             ‐                          9,158,815             45,560,971             ‐                        ‐                         ‐                             ‐                         ‐                              6,187,171               ‐                        ‐                         ‐                             ‐                         44,480                   4,004,540               ‐                        1,950                290,169                303,168           3,605,200             31,098,147             ‐                        ‐                         ‐                             ‐                         ‐                               21,808,781             ‐                        ‐                         ‐                             ‐                         ‐                               10,156,840             ‐                        ‐                         ‐                             ‐                         ‐                              127,540                   ‐                        ‐                          12,030,275          165,818           50,045,502           66,358,999             6,699               1,950                12,320,444          633,630           82,246,332           282,531,568           1,853,111       30,261              (12,318,989)        (451,817)          (11,816,709)          (49,089,314)            ‐                        ‐                          11,958,279          ‐                          11,958,279           55,713,000             ‐                        ‐                         ‐                             ‐                         69,000                   112,750                   ‐                        ‐                         ‐                             2,040                3,134,204             3,552,168               ‐                        ‐                         ‐                             ‐                         ‐                               (44,525,435)            ‐                        ‐                         436,800                509,699           38,635,108           101,705,828           (1,873,700)      ‐                         ‐                              (47,356)            (29,077,062)          (47,212,736)            (1,873,700)      ‐                          12,395,079          464,383           24,719,529           69,345,575             (20,589)            30,261              76,090                  12,566              12,902,820           20,256,261             1,682,416       3,012,954        ‐                              1,703,129        167,077,797         385,999,498           1,661,827$     3,043,215$      76,090$                1,715,695$      179,980,617$       406,255,759$        Capital Project Funds 107 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ 46,844,300$      45,000,766$      (1,843,534)$        Licenses, permits and impact fees ‐ ‐  ‐ 37,000                35,038                (1,962)  Intergovernmental 1,841,000           1,917,463            76,463                948,521              34,197                (914,324)              Charges for services 281,300              417,932               136,632              3,374,600           2,643,359           (731,241)              Fines and forfeitures ‐ ‐  ‐ 339,000              264,174              (74,826)                Interest income 15,000                55,146 40,146                122,000              380,802              258,802               Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous 35,100                46,629 11,529                202,100              291,928              89,828                 Total revenues 2,172,400           2,437,170            264,770              51,867,521        48,650,264        (3,217,257)          Expenditures: Current: General government ‐ ‐  ‐ 7,201,801           5,839,658           1,362,143            Public safety ‐ ‐  ‐ 4,724,223           4,212,139           512,084               Physical environment ‐ ‐  ‐ 1,854,596           1,598,543           256,053               Transportation 23,244,263        21,579,878         1,664,385           11,206,829        10,007,194        1,199,635            Economic environment ‐ ‐  ‐ 105,600              103,553              2,047  Human services ‐ ‐  ‐ ‐ ‐ ‐  Culture and recreation ‐ ‐  ‐ 13,396,599        12,445,470        951,129               Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay 515,653              444,100               71,553                7,039,149           2,721,442           4,317,707            Total expenditures 23,759,916        22,023,978         1,735,938           45,528,797        36,927,999        8,600,798            Excess (deficit) of revenues    over (under) expenditures  (21,587,516)       (19,586,808)        2,000,708           6,338,724           11,722,265        5,383,541            Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ 11,000 11,000                ‐ ‐ ‐  Insurance proceeds 362,800              388,891               26,091                30,000                4,585 (25,415)                Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in 21,786,900        21,786,900         ‐ 5,406,300           5,557,774           151,474               Transfers out (2,733,400)         (2,733,400)          ‐ (17,836,167)       (15,700,704)       2,135,463            Total other financing sources (uses) 19,416,300        19,453,391         37,091                (12,399,867)       (10,138,345)       2,261,522            Net change in fund balances (2,171,216)         (133,417)              2,037,799           (6,061,143)         1,583,920           7,645,063            Fund balances at beginning of year 2,184,316           2,184,316            ‐ 11,576,117        11,576,117        ‐  Fund balances at end of year 13,100$              2,050,899$         2,037,799$        5,514,974$        13,160,037$      7,645,063$         Reconciliation: Net change in fund balance, budgetary basis (133,417)$           1,583,920$         Change in fair value of investments (11,639)                (86,591)                Ad valorem refunds not budgeted ‐  (12,241)                Change in inventory ‐  (31,235)                Advances budgeted as transfers ‐  (500,000)              Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis (145,056)$           953,853$             See accompanying independent auditors' report   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, 2018 (Budgetary Basis) Unincorporated Area MSTD (Budgetary Basis) Road Disctricts 108 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         2,449,400$          2,362,409$          (86,991)$               20,990,100        28,497,585        7,507,485           600                        575                        (25)                         ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              3,399,800           3,722,674           322,874              403,300                382,011                (21,289)                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              198,800              641,019              442,219              17,000                  61,046                  44,046                   ‐                            ‐                            ‐                            4,067,300            3,918,172            (149,128)               50,100                49,984                (116)                     ‐                             2,058                    2,058                     24,638,800        32,911,262        8,272,462           6,937,600            6,726,271            (211,329)               8,733,506           7,710,441           1,023,065           ‐                             ‐                             ‐                              24,934,362        17,603,497        7,330,865           ‐                             ‐                             ‐                              1,702,500           1,665,343           37,157                3,663,513            3,216,641            446,872                 378,500              360,035              18,465                2,956,712            2,569,065            387,647                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              2,234,680           579,265              1,655,415           326,175                317,284                8,891                     37,983,548        27,918,581        10,064,967        6,946,400            6,102,990            843,410                 (13,344,748)       4,992,681           18,337,429        (8,800)                   623,281                632,081                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            7,400                   7,400                   ‐                             23,150                  23,150                   ‐                            4,475                   4,475                   ‐                             2,641                    2,641                     ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              1,031,500           1,031,500           ‐                            ‐                             94,627                  94,627                   (9,697,331)         (660,264)             9,037,067           (574,400)              (513,732)              60,668                   (8,665,831)         383,111              9,048,942           (574,400)              (393,314)              181,086                 (22,010,579)       5,375,792           27,386,371        (583,200)              229,967                813,167                 39,372,248        39,372,248        ‐                            2,015,300            2,015,300            ‐                              17,361,669$      44,748,040$      27,386,371$      1,432,100$          2,245,267$          813,167$              5,375,792$        229,967$              ‐                            (13,832)                 ‐                            (105)                       ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              5,375,792$        216,030$              Community Development Water Management and Pollution Control (Budgetary Basis)(Budgetary Basis) 109 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ 4,211,000$        4,067,218$        (143,782)$            Licenses, permits and impact fees ‐ ‐  ‐ ‐ ‐ ‐  Intergovernmental 41,123,739        14,924,511         (26,199,228)       100,000              ‐  (100,000)              Charges for services 78,509                4,163 (74,346)               243,500              180,883              (62,617)                Fines and forfeitures ‐ ‐  ‐ ‐ ‐ ‐  Interest income 30,135                60,910 30,775                65,200                211,317              146,117               Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous 202,035              273,347               71,312                ‐ 8,080 8,080  Total revenues 41,434,418        15,262,931         (26,171,487)       4,619,700           4,467,498           (152,202)              Expenditures: Current: General government 2,442,494           768,048               1,674,446           ‐ ‐ ‐  Public safety 2,326,292           287,522               2,038,770           ‐ ‐ ‐  Physical environment 10,523,434        5,565,586            4,957,848           4,264,237           1,235,741           3,028,496            Transportation 825,921              39,668 786,253              2,014,331           723,476              1,290,855            Economic environment 11,313,097        4,361,305            6,951,792           ‐ ‐ ‐  Human services 6,707,236           3,646,095            3,061,141           ‐ ‐ ‐  Culture and recreation 913,075              121,133               791,942              1,170,856           1,001,772           169,084               Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay 15,525,958        4,526,292            10,999,666        8,165,013           385,327              7,779,686            Total expenditures 50,577,507        19,315,649         31,261,858        15,614,437        3,346,316           12,268,121         Excess (deficit) of revenues    over (under) expenditures  (9,143,089)         (4,052,718)          5,090,371           (10,994,737)       1,121,182           12,115,919         Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ ‐ 12,879                12,879                 Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in 7,133,826           3,845,628            (3,288,198)         549,100              585,673              36,573                 Transfers out (165,206)             (86,330)                78,876                (643,600)             (600,059)             43,541                 Total other financing sources (uses) 6,968,620           3,759,298            (3,209,322)         (94,500)               (1,507) 92,993                 Net change in fund balances (2,174,469)         (293,420)              1,881,049           (11,089,237)       1,119,675           12,208,912         Fund balances at beginning of year 4,340,895           4,340,895            ‐ 12,615,237        12,615,237        ‐  Fund balances at end of year 2,166,426$        4,047,475$         1,881,049$        1,526,000$        13,734,912$      12,208,912$       Reconciliation: Net change in fund balance, budgetary basis (293,420)$           1,119,675$         Change in fair value of investments (14,092)                (46,907)                Ad valorem refunds not budgeted ‐  (409)  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds 212,759               ‐  Net change in fund balance, GAAP basis (94,753)$              1,072,359$         See accompanying independent auditors' report   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, 2018 Grants and Shared Revenues Improvement Districts (Budgetary Basis)(Budgetary Basis) 110 Budget Actual Variance Budget Actual Variance 1,538,300$        1,488,062$        (50,238)$             1,430,700$          1,381,199$          (49,501)$               ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            5,097                   5,097                   ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              1,000                   15,246                14,246                2,500                    27,702                  25,202                   ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              1,200                   ‐                            (1,200)                 ‐                             23,255                  23,255                   1,540,500           1,508,405           (32,095)               1,433,200            1,432,156            (1,044)                    ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              2,447,142           2,063,678           383,464              ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            1,427,900            1,091,361            336,539                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            29,702                (29,702)               ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              2,447,142           2,093,380           353,762              1,427,900            1,091,361            336,539                 (906,642)             (584,975)             321,667              5,300                    340,795                335,495                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             4,253                    4,253                     ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              577,800              579,041              1,241                   ‐                             11,614                  11,614                   (211,658)             (206,621)             5,037                   (1,056,600)           (34,980)                1,021,620             366,142              372,420              6,278                   (1,056,600)           (19,113)                1,037,487             (540,500)             (212,555)             327,945              (1,051,300)           321,682                1,372,982             ‐                            ‐                            ‐                            1,365,100            1,365,100            ‐                              (540,500)$           (212,555)$           327,945$            313,800$             1,686,782$          1,372,982$           (212,555)$           321,682$              (2,213)                 (6,176)                    (504)                     (18)                         ‐                            ‐                              147,900              ‐                              ‐                            ‐                              (67,372)$             315,488$              Fire Control Districts Lighting Districts (Budgetary Basis)(Budgetary Basis) 111 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ 27,650,000$      27,962,471$      312,471$             Licenses, permits and impact fees ‐ ‐  ‐ ‐ ‐ ‐  Intergovernmental 1,700,000           1,749,505            49,505                300,000              51,540                (248,460)              Charges for services ‐ ‐  ‐ 20,500                16,033                (4,467)  Fines and forfeitures ‐ ‐  ‐ ‐ ‐ ‐  Interest income 19,500                38,850 19,350                469,100              942,191              473,091               Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ ‐  ‐ 30,000                89,311                59,311                 Total revenues 1,719,500           1,788,355            68,855                28,469,600        29,061,546        591,946               Expenditures: Current: General government ‐ ‐  ‐ ‐ ‐ ‐  Public safety 2,511,100           1,858,454            652,646              ‐ ‐ ‐  Physical environment ‐ ‐  ‐ 7,926,375           7,887,830           38,545                 Transportation ‐ ‐  ‐ ‐ ‐ ‐  Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ ‐ ‐ ‐  Culture and recreation ‐ ‐  ‐ 18,064,140        13,827,928        4,236,212            Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay 97,500                86,287 11,213                19,230,326        6,576,803           12,653,523         Total expenditures 2,608,600           1,944,741            663,859              45,220,841        28,292,561        16,928,280         Excess (deficit) of revenues    over (under) expenditures  (889,100)             (156,386)              732,714              (16,751,241)       768,985              17,520,226         Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ ‐ ‐ ‐  Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in ‐ ‐  ‐ 7,487,700           7,768,633           280,933               Transfers out ‐ ‐  ‐ (7,928,482)         (8,121,138)         (192,656)              Total other financing sources (uses) ‐ ‐  ‐ (440,782)             (352,505)             88,277                 Net change in fund balances (889,100)             (156,386)              732,714              (17,192,023)       416,480              17,608,503         Fund balances at beginning of year 2,894,900           2,894,900            ‐ 60,467,020        60,467,020        ‐  Fund balances at end of year 2,005,800$        2,738,514$         732,714$            43,274,997$      60,883,500$      17,608,503$       Reconciliation: Net change in fund balance, budgetary basis (156,386)$           416,480$             Change in fair value of investments (8,662) (206,075)              Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis (165,048)$           210,405$             See accompanying independent auditors' report   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, 2018 911 Enhancement Fee Tourist Development (Budgetary Basis)(Budgetary Basis) 112 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                           ‐$                           ‐$                            ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              6,515,919           1,072,746           (5,443,173)         ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            398,900                349,869                (49,031)                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              59,976                71,205                11,229                800                        1,644                    844                         ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              916,891              479,957              (436,934)             135,700                144,855                9,155                     7,492,786           1,623,908           (5,868,878)         535,400                496,368                (39,032)                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            1,293,900            1,264,126            29,774                   ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              7,490,030           1,722,313           5,767,717           ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              2,756                   2,756                   ‐                            ‐                             ‐                             ‐                              7,492,786           1,725,069           5,767,717           1,293,900            1,264,126            29,774                   ‐                             (101,161)             (101,161)             (758,500)              (767,758)              (9,258)                    ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            712,600                712,600                ‐                              ‐                             (31,572)               (31,572)               ‐                             ‐                             ‐                              ‐                             (31,572)               (31,572)               712,600                712,600                ‐                              ‐                             (132,733)             (132,733)             (45,900)                (55,158)                (9,258)                    ‐                            ‐                            ‐                            72,700                  72,700                  ‐                              ‐$                          (132,733)$           (132,733)$           26,800$                17,542$                (9,258)$                 (132,733)$           (55,158)$               (16,035)               (377)                       ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              (148,768)$           (55,535)$               State Housing Initiativeship Partnership 800 MHZ IRCP Fund (Budgetary Basis)(Budgetary Basis) 113 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  Licenses, permits and impact fees ‐ ‐  ‐ ‐ ‐ ‐  Intergovernmental ‐ ‐  ‐ ‐ ‐ ‐  Charges for services 189,000              199,685               10,685                ‐ ‐ ‐  Fines and forfeitures 872,500              716,752               (155,748)             ‐ 4,678 4,678  Interest income 1,000 3,059 2,059 1,500 2,391 891  Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ 10,322 10,322                ‐ ‐ ‐  Total revenues 1,062,500           929,818               (132,682)             1,500 7,069 5,569  Expenditures: Current: General government 1,156,900           1,106,242            50,658                ‐ ‐ ‐  Public safety 1,569,900           1,510,904            58,996                52,000                29,000                23,000                 Physical environment ‐ ‐  ‐ ‐ ‐ ‐  Transportation ‐ ‐  ‐ ‐ ‐ ‐  Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ ‐ ‐ ‐  Culture and recreation ‐ ‐  ‐ ‐ ‐ ‐  Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay 8,000 3,449 4,551 ‐ ‐ ‐  Total expenditures 2,734,800           2,620,595            114,205              52,000                29,000                23,000                 Excess (deficit) of revenues    over (under) expenditures  (1,672,300)         (1,690,777)          (18,477)               (50,500)               (21,931)               28,569                 Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ ‐ ‐ ‐  Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in 1,708,500           1,708,500            ‐ ‐ ‐ ‐  Transfers out (254,300)             (239,300)              15,000                (59,149)               (43,841)               15,308                 Total other financing sources (uses) 1,454,200           1,469,200            15,000                (59,149)               (43,841)               15,308                 Net change in fund balances (218,100)             (221,577)              (3,477) (109,649)             (65,772)               43,877                 Fund balances at beginning of year 258,400              258,400               ‐ 171,563              171,563              ‐  Fund balances at end of year 40,300$              36,823$               (3,477)$               61,914$              105,791$            43,877$               Reconciliation: Net change in fund balance, budgetary basis (221,577)$           (65,772)$              Change in fair value of investments (704) (544)  Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis (222,281)$           (66,316)$              See accompanying independent auditors' report   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, 2018 State Court Administration Confiscated Property (Budgetary Basis)(Budgetary Basis) 114 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         190,000$             137,478$             (52,522)$               ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            100,000                100,000                ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              3,500                   12,042                8,542                   5,000                    19,224                  14,224                   ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              17,000                ‐                             (17,000)               ‐                             ‐                             ‐                              20,500                12,042                (8,458)                 295,000                256,702                (38,298)                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            452,400                266,184                186,216                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              107,063              ‐                             107,063              ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              107,063              ‐                             107,063              452,400                266,184                186,216                 (86,563)               12,042                98,605                (157,400)              (9,482)                   147,918                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              (86,563)               12,042                98,605                (157,400)              (9,482)                   147,918                 868,200              868,200              ‐                            1,447,000            1,447,000            ‐                              781,637$            880,242$            98,605$              1,289,600$          1,437,518$          147,918$              12,042$              (9,482)$                 (2,686)                 (4,316)                    ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              9,356$                (13,798)$               GAC Land Sales, Roads and Canals Utility Fee (Budgetary Basis)(Budgetary Basis) 115 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ 1,824$                 1,824$                ‐$ ‐$ ‐$  Licenses, permits and impact fees ‐ ‐  ‐ ‐ ‐ ‐  Intergovernmental ‐ ‐  ‐ ‐ ‐ ‐  Charges for services 300 72 (228) 800,000 886,824              86,824                 Fines and forfeitures ‐ ‐  ‐ ‐ ‐ ‐  Interest income 81,600                453,045               371,445              4,300 15,383                11,083                 Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous 639,676              256,623               (383,053)             ‐ ‐ ‐  Total revenues 721,576              711,564               (10,012)               804,300              902,207              97,907                 Expenditures: Current: General government ‐ ‐  ‐ 900,170              778,446              121,724               Public safety ‐ ‐  ‐ 26,300                10,807                15,493                 Physical environment 1,145,485           689,221               456,264              ‐ ‐ ‐  Transportation ‐ ‐  ‐ ‐ ‐ ‐  Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ 28,500                24,419                4,081  Culture and recreation ‐ ‐  ‐ ‐ ‐ ‐  Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay 1,255,480           119,024               1,136,456           80,700                46,684                34,016                 Total expenditures 2,400,965           808,245               1,592,720           1,035,670           860,356              175,314               Excess (deficit) of revenues    over (under) expenditures  (1,679,389)         (96,681)                1,582,708           (231,370)             41,851                273,221               Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ 2,200 2,200 ‐ ‐ ‐  Insurance proceeds 100 240 140 ‐ ‐ ‐  Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in 1,306,300           1,305,800            (500) ‐ ‐ ‐  Transfers out (1,315,782)         (1,315,782)          ‐ (36,300)               (36,300)               ‐  Total other financing sources (uses) (9,382) (7,542) 1,840 (36,300)               (36,300)               ‐  Net change in fund balances (1,688,771)         (104,223)              1,584,548           (267,670)             5,551 273,221               Fund balances at beginning of year 32,683,571        32,683,571         ‐ 102,657              102,657              ‐  Fund balances at end of year 30,994,800$      32,579,348$       1,584,548$        (165,013)$           108,208$            273,221$             Reconciliation: Net change in fund balance, budgetary basis (104,223)$           5,551$                 Change in fair value of investments (101,256)              (3,384)  Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis (205,479)$           2,167$                 See accompanying independent auditors' report   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, 2018 Conservation Collier Court Information Technology (Budgetary Basis)(Budgetary Basis) 116 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  ‐ ‐ ‐ ‐ ‐ ‐  219,000              402,809              183,809              ‐ ‐ ‐  6,189,241           6,827,098           637,857              28,000 6,455 (21,545)                 ‐ ‐ ‐ ‐ ‐ ‐  10,000                44,246                34,246                ‐ 1,605 1,605  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  6,418,241           7,274,153           855,912              28,000 8,060 (19,940)                 6,418,241           5,522,154           896,087              ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ 68,500 49,700 18,800  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ 7,000 ‐ 7,000  6,418,241           5,522,154           896,087              75,500 49,700 25,800  ‐  1,751,999           1,751,999           (47,500)                (41,640)                5,860  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐  1,751,999           1,751,999           (47,500)                (41,640)                5,860  ‐ ‐ ‐ 9,400 9,400 ‐  ‐$  1,751,999$        1,751,999$        (38,100)$              (32,240)$              5,860$   1,751,999$        (41,640)$               ‐ (362)  ‐ ‐  ‐ ‐  ‐ ‐  (1,768,419)         ‐  (16,420)$             (42,002)$               University Extension Court Services (Budgetary Basis) 117 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  Licenses, permits and impact fees ‐ ‐  ‐ ‐ ‐ ‐  Intergovernmental ‐ ‐  ‐ ‐ ‐ ‐  Charges for services ‐ ‐  ‐ ‐ 16,332                16,332                 Fines and forfeitures 800,000              827,051               27,051                ‐ ‐ ‐  Interest income 50,000                83,254 33,254                600 2,289 1,689  Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ ‐  ‐ ‐ ‐ ‐  Total revenues 850,000              910,305               60,305                600 18,621                18,021                 Expenditures: Current: General government 1,022,339           368,417               653,922              ‐ ‐ ‐  Public safety ‐ ‐  ‐ ‐ ‐ ‐  Physical environment ‐ ‐  ‐ ‐ ‐ ‐  Transportation ‐ ‐  ‐ ‐ ‐ ‐  Economic environment ‐ ‐  ‐ 134,100              ‐  134,100               Human services ‐ ‐  ‐ ‐ ‐ ‐  Culture and recreation ‐ ‐  ‐ ‐ ‐ ‐  Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay 818,333              216,317               602,016              ‐ ‐ ‐  Total expenditures 1,840,672           584,734               1,255,938           134,100              ‐  134,100               Excess (deficit) of revenues    over (under) expenditures  (990,672)             325,571               1,316,243           (133,500)             18,621                152,121               Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ ‐ ‐ ‐  Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in ‐ ‐  ‐ ‐ ‐ ‐  Transfers out ‐ ‐  ‐ ‐ ‐ ‐  Total other financing sources (uses) ‐ ‐  ‐ ‐ ‐ ‐  Net change in fund balances (990,672)             325,571               1,316,243           (133,500)             18,621                152,121               Fund balances at beginning of year 5,834,632           5,834,632            ‐ 133,500              133,500              ‐  Fund balances at end of year 4,843,960$        6,160,203$         1,316,243$        ‐$  152,121$            152,121$             Reconciliation: Net change in fund balance, budgetary basis 325,571$             18,621$               Change in fair value of investments (18,510)                (507)  Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis 307,061$             18,114$               See accompanying independent auditors' report   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, 2018 Court Facilities Fee Affordable Housing (Budgetary Basis)(Budgetary Basis) 118 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                           ‐$                           ‐$                            ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            1,170,000            1,140,308            (29,692)                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            1,548                   1,548                   13,100                  39,332                  26,232                   ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            1,548                   1,548                   1,183,100            1,179,640            (3,460)                    ‐                            ‐                            ‐                            2,601,100            982,364                1,618,736             ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              1,000                   ‐                            1,000                   ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            1,576,899            ‐                              1,576,899             1,000                   ‐                            1,000                   4,177,999            982,364                3,195,635             (1,000)                 1,548                   2,548                   (2,994,899)           197,276                3,192,175             ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              83,900                83,900                ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              83,900                83,900                ‐                            ‐                             ‐                             ‐                              82,900                85,448                2,548                   (2,994,899)           197,276                3,192,175             31,300                31,300                ‐                            3,644,557            3,644,557            ‐                              114,200$            116,748$            2,548$                649,658$             3,841,833$          3,192,175$           85,448$              197,276$              (353)                     ‐                              ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              85,095$              197,276$              Ave Maria Innovation Zone (Budgetary Basis)Other Court Special Revenue Funds 119 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  Licenses, permits and impact fees ‐ ‐  ‐ 5,400 76,510                71,110                 Intergovernmental ‐ ‐  ‐ ‐ ‐ ‐  Charges for services 80,000                74,215 (5,785) 218,600              275,131              56,531                 Fines and forfeitures 69,000                74,248 5,248 36,000                47,242                11,242                 Interest income 16,000                20,970 4,970 6,200 14,897                8,697  Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ ‐  ‐ 123,000              166,574              43,574                 Total revenues 165,000              169,433               4,433 389,200              580,354              191,154               Expenditures: Current: General government ‐ ‐  ‐ 245,300              193,290              52,010                 Public safety 1,082,900           357,438               725,462              111,000              111,000              ‐  Physical environment ‐ ‐  ‐ ‐ ‐ ‐  Transportation ‐ ‐  ‐ ‐ ‐ ‐  Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ 349,600              289,546              60,054                 Culture and recreation ‐ ‐  ‐ 235,600              96,506                139,094               Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay 100,000              ‐   100,000              107,000              83,539                23,461                 Total expenditures 1,182,900           357,438               825,462              1,048,500           773,881              274,619               Excess (deficit) of revenues    over (under) expenditures  (1,017,900)         (188,005)              829,895              (659,300)             (193,527)             465,773               Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ ‐ ‐ ‐  Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in ‐ ‐  ‐ 248,700              197,000              (51,700)                Transfers out (158,079)             (92,048)                66,031                ‐ ‐ ‐  Total other financing sources (uses) (158,079)             (92,048)                66,031                248,700              197,000              (51,700)                Net change in fund balances (1,175,979)         (280,053)              895,926              (410,600)             3,473 414,073               Fund balances at beginning of year ‐ ‐  ‐ 833,500              833,500              ‐  Fund balances at end of year (1,175,979)$       (280,053)$           895,926$            422,900$            836,973$            414,073$             Reconciliation: Net change in fund balance, budgetary basis (280,053)$           3,473$                 Change in fair value of investments (4,688) (3,303)  Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds 354,465               ‐  Net change in fund balance, GAAP basis 69,724$               170$   See accompanying independent auditors' report   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, 2018 Other Public Safety Revenue Funds Other Special Revenue Funds (Budgetary Basis)(Budgetary Basis) 120 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                           ‐$                           ‐$                            ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              16,700                23,713                7,013                   ‐                             1                            1                             ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              300                      250                      (50)                       ‐                             ‐                             ‐                              17,000                23,963                6,963                   ‐                             1                            1                             ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              16,700                9,909                   6,791                   ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            284,800                257,296                27,504                   ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              16,700                9,909                   6,791                   284,800                257,296                27,504                   300                      14,054                13,754                (284,800)              (257,295)              27,505                   ‐                            ‐                            ‐                            41,800                  41,721                  (79)                         ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            243,000                243,000                ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            284,800                284,721                (79)                         300                      14,054                13,754                ‐                             27,426                  27,426                   1,702,900           1,702,900           ‐                            ‐                             ‐                             ‐                              1,703,200$        1,716,954$        13,754$              ‐$                           27,426$                27,426$                 14,054$              27,426$                 (5,298)                 ‐                              ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              8,756$                27,426$                 Resource Recovery Park Endowment Pooled Commercial Paper Program (Budgetary Basis)(Budgetary Basis) 121 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  Licenses, permits and impact fees ‐ ‐  ‐ ‐ ‐ ‐  Intergovernmental 1,875,000           2,017,122            142,122              ‐ ‐ ‐  Charges for services ‐ ‐  ‐ ‐ ‐ ‐  Fines and forfeitures ‐ ‐  ‐ ‐ ‐ ‐  Interest income 1,000 20,982 19,982                ‐ 820 820  Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ ‐  ‐ ‐ ‐ ‐  Total revenues 1,876,000           2,038,104            162,104              ‐ 820 820  Expenditures: Current: General government ‐ ‐  ‐ ‐ ‐ ‐  Public safety ‐ ‐  ‐ ‐ ‐ ‐  Physical environment ‐ ‐  ‐ ‐ ‐ ‐  Transportation ‐ ‐  ‐ ‐ ‐ ‐  Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ ‐ ‐ ‐  Culture and recreation ‐ ‐  ‐ ‐ ‐ ‐  Debt service 13,263,000        13,248,841         14,159                631,000              630,051              949  Capital outlay ‐ ‐  ‐ ‐ ‐ ‐  Total expenditures 13,263,000        13,248,841         14,159                631,000              630,051              949  Excess (deficit) of revenues    over (under) expenditures  (11,387,000)       (11,210,737)        176,263              (631,000)             (629,231)             1,769  Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ ‐ ‐ ‐  Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in 11,271,000        11,271,000         ‐ 631,000              631,000              ‐  Transfers out ‐ ‐  ‐ ‐ ‐ ‐  Total other financing sources (uses) 11,271,000        11,271,000         ‐ 631,000              631,000              ‐  Net change in fund balances (116,000)             60,263 176,263              ‐ 1,769 1,769  Fund balances at beginning of year 899,800              899,800               ‐ 350,000              350,000              ‐  Fund balances at end of year 783,800$            960,063$             176,263$            350,000$            351,769$            1,769$                 Reconciliation: Net change in fund balance, budgetary basis 60,263$               1,769$                 Change in fair value of investments (4,980) 115  Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis 55,283$               1,884$                 See accompanying independent auditors' report   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, 2018 Gas Tax Revenue Bonds Community Redevelopment Taxable Note (Budgetary Basis)(Budgetary Basis) 122 Budget Actual Variance Budget Actual Variance 506,600$            487,602$            (18,998)$             ‐$                           ‐$                           ‐$                            ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              1,500                   9,884                   8,384                   12,000                  28,016                  16,016                   ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              508,100              497,486              (10,614)               12,000                  28,016                  16,016                   ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              559,500              558,350              1,150                   17,505,650          17,368,921          136,729                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              559,500              558,350              1,150                   17,505,650          17,368,921          136,729                 (51,400)               (60,864)               (9,464)                 (17,493,650)        (17,340,905)        152,745                 ‐                            ‐                            ‐                            43,713,000          43,713,000          ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            (44,525,550)        (44,525,435)        115                         ‐                            4,707                   4,707                   18,047,800          18,047,800          ‐                              (19,800)               (15,084)               4,716                   ‐                             ‐                             ‐                              (19,800)               (10,377)               9,423                   17,235,250          17,235,365          115                         (71,200)               (71,241)               (41)                       (258,400)              (105,540)              152,860                 727,100              727,100              ‐                            2,891,900            2,891,900            ‐                              655,900$            655,859$            (41)$                     2,633,500$          2,786,360$          152,860$              (71,241)$             (105,540)$             (2,220)                 (6,089)                    ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              (73,461)$             (111,629)$             Forest Lakes Limited General Special Obligation Revenue Bonds Obligation Bonds (Budgetary Basis)(Budgetary Basis) 123 Budget Actual Variance Budget Actual Variance Revenues: Taxes 1,000$                179$  (821)$  ‐$ ‐$ ‐$  Licenses, permits and impact fees ‐ ‐  ‐ ‐ ‐ ‐  Intergovernmental ‐ ‐  ‐ 7,461,212           897  (7,460,315)          Charges for services ‐ ‐  ‐ ‐ ‐ ‐  Fines and forfeitures ‐ ‐  ‐ ‐ ‐ ‐  Interest income 200 30 (170) 65,000 84,736                19,736                 Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ ‐  ‐ ‐ ‐ ‐  Total revenues 1,200 209 (991) 7,526,212 85,633                (7,440,579)          Expenditures: Current: General government ‐ ‐  ‐ 17,255,291        9,736,798           7,518,493            Public safety ‐ ‐  ‐ 5,930,194           1,420,474           4,509,720            Physical environment ‐ ‐  ‐ 1,549,937           131,067              1,418,870            Transportation ‐ ‐  ‐ 250,000              223,751              26,249                 Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ 544,215              44,480                499,735               Culture and recreation ‐ ‐  ‐ 341 341 ‐  Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay ‐ ‐  ‐ 8,588,677           4,238,203           4,350,474            Total expenditures ‐ ‐  ‐ 34,118,655        15,795,114        18,323,541         Excess (deficit) of revenues    over (under) expenditures  1,200 209 (991) (26,592,443) (15,709,481)       10,882,962         Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ 69,000                69,000                 Insurance proceeds ‐ ‐  ‐ 1,701,428           588,893              (1,112,535)          Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in ‐ ‐  ‐ 19,775,417        16,952,315        (2,823,102)          Transfers out (13,400)               (12,339)                1,061 (5,306,800)         (5,306,800)         ‐  Total other financing sources (uses) (13,400)               (12,339)                1,061 16,170,045        12,303,408        (3,866,637)          Net change in fund balances (12,200)               (12,130)                70 (10,422,398)       (3,406,073)         7,016,325            Fund balances at beginning of year 12,200                12,200 ‐ 11,225,698        11,225,698        ‐  Fund balances at end of year ‐$ 70$  70$  803,300$            7,819,625$        7,016,325$         Reconciliation: Net change in fund balance, budgetary basis (12,130)$              (3,406,073)$        Change in fair value of investments ‐  (18,772)                Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  5,306,800            Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis (12,130)$              1,881,955$         See accompanying independent auditors' report   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, 2018 Other Debt Service County‐Wide Capital Improvements (Budgetary Basis)(Budgetary Basis) 124 Budget Actual Variance Budget Actual Variance ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  590,000              603,390              13,390                950,000                1,053,844            103,844                 515,600              2,084 (513,516)             ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  10,000                60,904                50,904                5,000 13,924 8,924  ‐ ‐ ‐ ‐ ‐ ‐  51,000                ‐  (51,000)               ‐ ‐ ‐  1,166,600           666,378              (500,222)             955,000                1,067,768            112,768                 ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  4,540,375           2,778,479           1,761,896           89,598 ‐ 89,598  ‐ ‐ ‐ ‐ ‐ ‐  4,878,202           2,146,753           2,731,449           417,746                417,290                456  9,418,577           4,925,232           4,493,345           507,344                417,290                90,054  (8,251,977)         (4,258,854)         3,993,123           447,656                650,478                202,822                 ‐ ‐ ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  1,146,157           1,167,274           21,117                ‐ ‐ ‐  ‐ ‐ ‐ ‐ ‐ ‐  4,369,043           2,642,787           (1,726,256)         311,600                311,600                ‐  (24,625)               (11,671)               12,954                (1,158,900)           (1,158,900)           ‐  5,490,575           3,798,390           (1,692,185)         (847,300)              (847,300)              ‐  (2,761,402)         (460,464)             2,300,938           (399,644)              (196,822)              202,822                 2,949,002           2,949,002           ‐ 865,944                865,944                ‐  187,600$            2,488,538$        2,300,938$        466,300$             669,122$             202,822$              (460,464)$           (196,822)$             (13,901)               (2,944)  ‐ ‐  ‐ ‐  ‐ (311,600)               ‐ ‐  (474,365)$           (511,366)$             Parks Improvements County‐Wide Library Impact Fee (Budgetary Basis)(Budgetary Basis) 125 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  Licenses, permits and impact fees 1,700,000           1,807,511            107,511              430,000              464,357              34,357                 Intergovernmental ‐ ‐  ‐ ‐ ‐ ‐  Charges for services ‐ ‐  ‐ ‐ ‐ ‐  Fines and forfeitures ‐ ‐  ‐ ‐ ‐ ‐  Interest income 12,000                13,733 1,733 4,000 26,182                22,182                 Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ ‐  ‐ ‐ ‐ ‐  Total revenues 1,712,000           1,821,244            109,244              434,000              490,539              56,539                 Expenditures: Current: General government ‐ ‐  ‐ ‐ ‐ ‐  Public safety 250,280              35,762 214,518              74,554                16,874                57,680                 Physical environment ‐ ‐  ‐ ‐ ‐ ‐  Transportation ‐ ‐  ‐ ‐ ‐ ‐  Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ ‐ ‐ ‐  Culture and recreation ‐ ‐  ‐ ‐ ‐ ‐  Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay ‐ ‐  ‐ 2,144,973           122,618              2,022,355            Total expenditures 250,280              35,762 214,518              2,219,527           139,492              2,080,035            Excess (deficit) of revenues    over (under) expenditures  1,461,720           1,785,482            323,762              (1,785,527)         351,047              2,136,574            Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ ‐ ‐ ‐  Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in ‐ ‐  ‐ 1,962,800           1,962,800           ‐  Transfers out (1,858,500)         (1,858,500)          ‐ (448,400)             (448,400)             ‐  Total other financing sources (uses) (1,858,500)         (1,858,500)          ‐ 1,514,400           1,514,400           ‐  Net change in fund balances (396,780)             (73,018)                323,762              (271,127)             1,865,447           2,136,574            Fund balances at beginning of year ‐ ‐  ‐ ‐ ‐ ‐  Fund balances at end of year (396,780)$           (73,018)$              323,762$            (271,127)$           1,865,447$        2,136,574$         Reconciliation: Net change in fund balance, budgetary basis (73,018)$              1,865,447$         Change in fair value of investments (2,699) (5,626)  Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  (1,962,800)          Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis (75,717)$              (102,979)$            See accompanying independent auditors' report   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, 2018 Correctional Facilities Impact Fees Emergency Medical Services Impact Fees (Budgetary Basis)(Budgetary Basis) 126 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                           ‐$                           ‐$                            ‐                            ‐                            ‐                            8,500,000            10,819,875          2,319,875             83,700                29,842                (53,858)               ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              75,000                161,787              86,787                104,000                346,066                242,066                 743,900              716,515              (27,385)               ‐                             ‐                             ‐                              ‐                            20,022                20,022                ‐                             ‐                             ‐                              902,600              928,166              25,566                8,604,000            11,165,941          2,561,941             ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              2,077,769           8,847,380           (6,769,611)         ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            243,907                231,093                12,814                   ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              28,533,106        4,661,666           23,871,440        27,143,621          7,944,820            19,198,801           30,610,875        13,509,046        17,101,829        27,387,528          8,175,913            19,211,615           (29,708,275)       (12,580,880)       17,127,395        (18,783,528)        2,990,028            21,773,556           ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              16,300                158,063              141,763              ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              21,357,300        5,943,107           (15,414,193)       ‐                             ‐                             ‐                              (4,712,595)         (2,276,921)         2,435,674           (2,939,600)           (2,939,600)           ‐                              16,661,005        3,824,249           (12,836,756)       (2,939,600)           (2,939,600)           ‐                              (13,047,270)       (8,756,631)         4,290,639           (21,723,128)        50,428                  21,773,556           13,088,170        13,088,170        ‐                            25,334,978          25,334,978          ‐                              40,900$              4,331,539$        4,290,639$        3,611,850$          25,385,406$        21,773,556$         (8,756,631)$       50,428$                 (36,878)               (76,140)                 ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              ‐                            ‐                              (8,793,509)$       (25,712)$               Water Management Parks Impact Districts (Budgetary Basis)(Budgetary Basis) 127 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  Licenses, permits and impact fees 13,000,000        26,579,266         13,579,266        14,331,000        16,139,631        1,808,631            Intergovernmental ‐ ‐  ‐ 6,194,000           4,591,815           (1,602,185)          Charges for services ‐ ‐  ‐ 6,500 12,406                5,906  Fines and forfeitures ‐ ‐  ‐ ‐ ‐ ‐  Interest income 256,000              886,628               630,628              202,000              1,150,031           948,031               Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ 92,179 92,179                1,247,529           542,007              (705,522)              Total revenues 13,256,000        27,558,073         14,302,073        21,981,029        22,435,890        454,861               Expenditures: Current: General government ‐ ‐  ‐ ‐ ‐ ‐  Public safety ‐ ‐  ‐ ‐ ‐ ‐  Physical environment ‐ ‐  ‐ ‐ ‐ ‐  Transportation 10,396,693        891,901               9,504,792           8,737,417           8,550,165           187,252               Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ ‐ ‐ ‐  Culture and recreation ‐ ‐  ‐ ‐ ‐ ‐  Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay 36,149,217        4,480,648            31,668,569        47,367,425        13,330,409        34,037,016         Total expenditures 46,545,910        5,372,549            41,173,361        56,104,842        21,880,574        34,224,268         Excess (deficit) of revenues    over (under) expenditures  (33,289,910)       22,185,524         55,475,434        (34,123,813)       555,316              34,679,129         Other financing sources (uses): Loans issued ‐ ‐  ‐ ‐ ‐ ‐  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ 600,000              1,217,934           617,934               Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in ‐ ‐  ‐ 15,650,400        12,150,400        (3,500,000)          Transfers out (1,068,385)         (440,316)              628,069              (25,812,417)       (11,349,135)       14,463,282         Total other financing sources (uses) (1,068,385)         (440,316)              628,069              (9,562,017)         2,019,199           11,581,216         Net change in fund balances (34,358,295)       21,745,208         56,103,503        (43,685,830)       2,574,515           46,260,345         Fund balances at beginning of year 54,022,576        54,022,576         ‐ 48,630,111        48,630,111        ‐  Fund balances at end of year 19,664,281$      75,767,784$       56,103,503$      4,944,281$        51,204,626$      46,260,345$       Reconciliation: Net change in fund balance, budgetary basis 21,745,208$       2,574,515$         Change in fair value of investments ‐  (647,250)              Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis 21,745,208$       1,927,265$         See accompanying independent auditors' report   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, 2018 Road Impact Districts Road Construction (Budgetary Basis)(Budgetary Basis) 128 Budget Actual Variance Budget Actual Variance ‐$                         ‐$                         ‐$                         ‐$                           ‐$                           ‐$                            2,800,000           3,097,079           297,079              1,575,000            1,842,830            267,830                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              20,000                42,101                22,101                20,000                  21,563                  1,563                     ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              2,820,000           3,139,180           319,180              1,595,000            1,864,393            269,393                 128,697              ‐                             128,697              ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            162,204                6,699                    155,505                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              1,736                   ‐                            1,736                   20,048                  ‐                             20,048                   130,433              ‐                             130,433              182,252                6,699                    175,553                 2,689,567           3,139,180           449,613              1,412,748            1,857,694            444,946                 ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              ‐                            ‐                            ‐                            ‐                             ‐                             ‐                              3,357,400           3,354,174           (3,226)                 ‐                             ‐                             ‐                              (6,540,200)         (6,537,999)         2,201                   (1,873,700)           (1,873,700)           ‐                              (3,182,800)         (3,183,825)         (1,025)                 (1,873,700)           (1,873,700)           ‐                              (493,233)             (44,645)               448,588              (460,952)              (16,006)                444,946                 3,539,765           3,539,765           ‐                            1,668,612            1,682,416            13,804                   3,046,532$        3,495,120$        448,588$            1,207,660$          1,666,410$          458,750$              (44,645)$             (16,006)$               (8,815)                 (4,583)                    ‐                            ‐                              ‐                            ‐                              (2,521,375)         ‐                              ‐                            ‐                              (2,574,835)$       (20,589)$               Government Facilities Impact Fees Law Enforcement Impact Fees (Budgetary Basis)(Budgetary Basis) 129 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$ ‐$ ‐$ ‐$ ‐$  Licenses, permits and impact fees ‐ ‐  ‐ ‐ ‐ ‐  Intergovernmental ‐ ‐  ‐ ‐ ‐ ‐  Charges for services ‐ ‐  ‐ ‐ ‐ ‐  Fines and forfeitures ‐ ‐  ‐ ‐ ‐ ‐  Interest income 18,000                41,472 23,472                ‐ 1,849 1,849  Special assessments ‐ ‐  ‐ ‐ ‐ ‐  Miscellaneous ‐ ‐  ‐ ‐ ‐ ‐  Total revenues 18,000                41,472 23,472                ‐ 1,849 1,849  Expenditures: Current: General government ‐ ‐  ‐ ‐ ‐ ‐  Public safety ‐ ‐  ‐ ‐ ‐ ‐  Physical environment ‐ ‐  ‐ ‐ ‐ ‐  Transportation ‐ ‐  ‐ ‐ ‐ ‐  Economic environment ‐ ‐  ‐ ‐ ‐ ‐  Human services ‐ ‐  ‐ ‐ ‐ ‐  Culture and recreation 35,089                1,950 33,139                300,000              290,169              9,831  Debt service ‐ ‐  ‐ ‐ ‐ ‐  Capital outlay ‐ ‐  ‐ 12,095,000        12,030,275        64,725                 Total expenditures 35,089                1,950 33,139                12,395,000        12,320,444        74,556                 Excess (deficit) of revenues    over (under) expenditures  (17,089)               39,522 56,611                (12,395,000)       (12,318,595)       76,405                 Other financing sources (uses): Loans issued ‐ ‐  ‐ 11,958,200        11,958,279        79  Sale of capital assets ‐ ‐  ‐ ‐ ‐ ‐  Insurance proceeds ‐ ‐  ‐ ‐ ‐ ‐  Payment to refunding bond escrow ‐ ‐  ‐ ‐ ‐ ‐  Transfers in ‐ ‐  ‐ 436,800              436,800              ‐  Transfers out ‐ ‐  ‐ ‐ ‐ ‐  Total other financing sources (uses) ‐ ‐  ‐ 12,395,000        12,395,079        79  Net change in fund balances (17,089)               39,522 56,611                ‐ 76,484                76,484                 Fund balances at beginning of year 3,003,989           3,003,989            ‐ ‐ ‐ ‐  Fund balances at end of year 2,986,900$        3,043,511$         56,611$              ‐$ 76,484$              76,484$               Reconciliation: Net change in fund balance, budgetary basis 39,522$               76,484$               Change in fair value of investments (9,261) (394)  Ad valorem refunds not budgeted ‐  ‐  Change in inventory ‐  ‐  Advances budgeted as transfers ‐  ‐  Unbudgeted funds ‐  ‐  Net change in fund balance, GAAP basis 30,261$               76,090$               See accompanying independent auditors' report   Amateur Sports Park (Budgetary Basis) 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, 2018 130 Budget Actual Variance ‐$                          ‐$                          ‐$                          6,000                    8,490                    2,490                    5,303                    ‐                             (5,303)                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             6,200                    23,863                 17,663                 160,500               154,739               (5,761)                  ‐                             28                         28                         178,003               187,120               9,117                    75,000                 9,264                    65,736                 88,390                 8,624                    79,766                 229,359               146,756               82,603                 ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             705,419               303,168               402,251               ‐                             ‐                             ‐                             596,576               165,818               430,758               1,694,744           633,630              1,061,114            (1,516,741)         (446,510)             1,070,231            ‐                            ‐                            ‐                             ‐                            ‐                            ‐                             ‐                            2,040                   2,040                    ‐                            ‐                            ‐                             552,731              518,963              (33,768)                (49,200)               (47,356)               1,844                    503,531              473,647              (29,884)                (1,013,210)         27,137                1,040,347            1,676,010           1,676,010           ‐                             662,800$            1,703,147$        1,040,347$         27,137$               (5,307)                  ‐                             ‐                             (9,264)                  ‐                             12,566$               Other Capital Projects (Budgetary Basis) 131 THIS PAGE INTENTIONALLY LEFT BLANK 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  1,519,988$          584,281$              2,104,269$          Receivables: Trade, net  56,704                  18,284                  74,988  Interest 3,506 2,082 5,588  Due from other funds ‐  12,013 12,013  Inventory 130,367               ‐  130,367                Restricted assets: Cash and investments 29,915 73,344 103,259                Due from other governments 926,780               2,399,487            3,326,267             Total current assets 2,667,260            3,089,491            5,756,751             Noncurrent assets: Capital assets: Land and nondepreciable capital assets 4,062,501            6,340,238            10,402,739          Depreciable capital assets, net 30,316,918         19,070,687         49,387,605          Total noncurrent assets 34,379,419         25,410,925         59,790,344          Total assets 37,046,679         28,500,416         65,547,095          Deferred outflows of resources related to pensions 238,437               102,560               340,997                LIABILITIES Current liabilities: Accounts payable 421,184               419,584               840,768                Wages payable 28,158 10,551 38,709  Retainage payable 36,300 ‐  36,300  Due to other funds 169 1,040 1,209  Due to other governments 2,986 35 3,021  Unearned revenues 40,517 ‐  40,517  Compensated absences 35,371 8,877 44,248  Net pension liability 6,424 2,295 8,719  Liabilities payable from restricted assets:  Accounts payable 102,407               1,117,715            1,220,122             Wages payable ‐  136 136  Retainage payable 5,269 11,000 16,269  Due to other governments ‐  69,022 69,022  Refundable deposits 9,826 ‐  9,826  Unearned revenue 5,845 ‐  5,845  Total current liabilities 694,456               1,640,255            2,334,711             Noncurrent liabilities: Compensated absences 8,843 2,220 11,063  Total OPEB liability 51,873 22,231 74,104  Net pension liability 632,313               263,375               895,688                Total noncurrent liabilities 693,029               287,826               980,855                Total liabilities 1,387,485            1,928,081            3,315,566             DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 1,242 524 1,766  Deferred inflows of resources related to pensions 58,888 24,138 83,026  Total deferred inflows of resources 60,130 24,662 84,792  NET POSITION Net investment in capital assets 33,951,982         25,259,127         59,211,109          Restricted for grants and other purposes 833,348               1,416,295            2,249,643             Unrestricted 1,052,171            (25,189)                1,026,982             Total net position 35,837,501$       26,650,233$       62,487,734$        See accompanying independent auditors' report  DEFERRED OUTFLOWS OF RESOURCES COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2018 ASSETS 134 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Operating revenues: Charges for services  3,934,790$             1,076,454$             5,011,244$             Miscellaneous 15,673 52,499 68,172  Total operating revenues  3,950,463               1,128,953               5,079,416                Operating expenses: Personal services 976,075 460,342 1,436,417                Operating 2,949,374               10,102,595            13,051,969             Depreciation 1,525,540               1,904,396               3,429,936                Total operating expenditures  5,450,989               12,467,333            17,918,322             Operating loss (1,500,526)             (11,338,380)           (12,838,906)            Non‐operating revenues: Operating grants and contributions ‐ 4,477,478               4,477,478                Interest income 13,845 11,950 25,795  Insurance reimbursement 199,886 ‐ 199,886  Gain on disposal of capital assets 1,799 (167,489)                 (165,690)                  Total non‐operating revenues 215,530 4,321,939               4,537,469                Loss before contributions and transfers (1,284,996)             (7,016,441)             (8,301,437)              Capital grants and contributions 1,861,193               2,710,808               4,572,001                Transfers in ‐ 4,495,174               4,495,174                Total transfers and contributions 1,861,193               7,205,982               9,067,175                Changes in net position 576,197 189,541 765,738  Net position ‐ beginning 35,261,304            26,460,692            61,721,996             Net position ‐ ending 35,837,501$          26,650,233$          62,487,734$           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, 2018 135 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Cash flows from operating activities: Cash received for services  3,965,030$             1,177,942$             5,142,972$                 Cash payments for goods and services  (2,622,712)              (6,984,532)              (9,607,244)                  Cash payments to employees  (957,155)                  (403,566)                  (1,360,721)                  Cash payments for interfund services  (412,548)                  (2,670,933)              (3,083,481)                  Net cash used for operating activities  (27,385) (8,881,089)             (8,908,474)                  Cash flows from non‐capital financing activities: Cash received from operating grants ‐ 3,015,148               3,015,148  Cash transfers from other funds 715,836 5,450,850               6,166,686  Cash transfers to other funds (717,265)                 (942,080)                 (1,659,345)                  Net cash provided by (used for) non‐capital financing activities (1,429) 7,523,918               7,522,489  Cash flows from capital and related financing activities: Receipts from insurance reimbursements 160,343                   ‐  160,343  Proceeds from disposal of capital assets 1,800 28,900 30,700  Proceeds from capital grants 1,428,504               2,366,967               3,795,471  Payments for capital acquisitions (1,779,624)             (2,774,825)             (4,554,449)                  Net cash used for capital and related financing activities (188,977)                 (378,958)                 (567,935)  Cash flows from investing activities: Interest on investments 12,431 14,672 27,103  Net cash provided by investing activities 12,431 14,672 27,103  Net decrease in cash and investments (205,360)                 (1,721,457)             (1,926,817)                  Cash and investments, October 1, 2017 1,755,263               2,379,082               4,134,345  Cash and investments, September 30, 2018 1,549,903$            657,625$                2,207,528$                 Cash and investments 1,519,988$            584,281$                2,104,269$                 Cash and investments ‐ restricted 29,915 73,344 103,259  Cash and investments, September 30, 2018 1,549,903$             657,625$                 2,207,528$                 Operating loss (1,500,526)$            (11,338,380)$          (12,838,906)$             Adjustments to reconcile operating loss to net cash provided by (used for) operating activities:  Depreciation expense  1,525,540                1,904,396                3,429,936  Net changes in assets and liabilities:  Trade receivable  43,438 48,959 92,397  Inventory (40,026) ‐ (40,026)  Accounts payable (46,030) 453,233 407,203  Wages payable 1,018 (4,568) (3,550)  Due to other funds 170 (6,108) (5,938)  Due to other governments (636) 35 (601)  Compensated absences 4,245 (46) 4,199  Unearned revenue (28,235) ‐ (28,235)  Total OPEB liability (5,083) 7,043 1,960  Deferred inflows of resources related to OPEB 1,193 511 1,704  Net pension liability (13,719) 62,969 49,250  Deferred outflows of resources related to pensions 8,405 (22,736) (14,331)  Deferred inflows of resources related to pensions 22,861 13,603 36,464  Total adjustments 1,473,141               2,457,291               3,930,432  Net cash used for operating activities (27,385)$                 (8,881,089)$           (8,908,474)$               Non‐cash investing, capital and financing activities: Change in fair value of investments (5,765)$  3,466$  (2,299)$   Contributed capital assets ‐ 307,891 307,891  Change in capital related grant receivable 432,689 35,950 468,639  Capital related accounts payable 385,868 140,798 526,666  See accompanying independent auditors' report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 136 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 43,069,606$      10,102,567$      1,084,503$          6,764,026$        3,580,179$       64,600,881$       Receivables: Trade, net 17,386                2,407 ‐ ‐ ‐ 19,793                 Interest 98,110                21,619                1,604 13,723                9,085                 144,141               Due from other funds 15,953                500,000              154 ‐ ‐  516,107               Due from other governments 29,587                ‐ 177,296                ‐  95,933               302,816               Inventory ‐ ‐ 375,248                ‐ ‐  375,248               Prepaid costs ‐ ‐ ‐ ‐  46,266               46,266                 Total current assets 43,230,642        10,626,593        1,638,805            6,777,749           3,731,463         66,005,252         Noncurrent assets: Capital assets: Depreciable capital assets, net 186,001              ‐  9,422,345            7,062,392           2,475,827         19,146,565         Total noncurrent assets 186,001              ‐  9,422,345            7,062,392           2,475,827         19,146,565         Total assets 43,416,643        10,626,593        11,061,150          13,840,141        6,207,290         85,151,817         Deferred outflows of resources related to pensions 325,147               ‐ 633,058                3,260 1,155,593         2,117,058            LIABILITIES Current liabilities: Accounts payable 382,025              ‐ 566,668                ‐  321,491            1,270,184            Wages payable 41,419                ‐ 78,510 2,801 141,833            264,563               Due to other governments ‐ ‐ 35 ‐ ‐ 35  Unearned revenues 15,298                 83,595                 ‐ ‐ ‐ 98,893                 Self‐insurance claims payable 5,227,260           2,884,000           ‐ ‐ ‐  8,111,260            Compensated absences 82,616                ‐ 129,563                6,400 218,291            436,870               Net pension liability 6,424 ‐ 12,849 459 20,191               39,923                 Total current liabilities 5,755,042           2,967,595           787,625                9,660 701,806            10,221,728         Noncurrent liabilities: Self‐insurance claims payable 4,024,813           ‐ ‐ ‐ ‐  4,024,813            Compensated absences 20,654                ‐ 32,391 1,600 54,573               109,218               Total OPEB liability 51,873                 ‐ 111,156                 3,705 163,029            329,763               Net pension liability 818,743              ‐  1,558,240            56,259                2,857,689         5,290,931            Total noncurrent liabilities 4,916,083           ‐  1,701,787            61,564                3,075,291         9,754,725            Total liabilities 10,671,125        2,967,595           2,489,412            71,224                3,777,097         19,976,453         DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 1,239 ‐ 2,648 88 3,889                 7,864  Deferred inflows of resources related to pensions 74,281                 ‐ 142,399                 4,671 256,804            478,155               Total deferred inflows of resources 75,520                 ‐ 145,047                 4,759 260,693            486,019               NET POSITION Net investment in capital assets 186,001              ‐  9,390,680            7,062,392           2,469,587         19,108,660         Unrestricted 32,809,144        7,658,998           (330,931)              6,705,026           855,506            47,697,743         Total net position 32,995,145$      7,658,998$        9,059,749$          13,767,418$      3,325,093$       66,806,403$       See accompanying independent auditors' report  DEFERRED OUTFLOWS OF RESOURCES COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2018 ASSETS 138 Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating revenues: Charges for services 50,236,851$      25,544,474$      9,144,555$          2,824,600$        7,790,121$       95,540,601$       Miscellaneous 26,854                ‐                            12,435                  ‐                            ‐                          39,289                 Total operating revenues 50,263,705        25,544,474        9,156,990            2,824,600           7,790,121         95,579,890         Operating expenses: Personal services 1,275,937           ‐                             2,559,332            92,825                4,613,770         8,541,864            Operating 61,932,506        25,164,992        6,162,816            189                       2,653,788         95,914,291         Depreciation 25,944                ‐                            580,098                1,319,358           1,125,300         3,050,700            Total operating expenditures 63,234,387        25,164,992        9,302,246            1,412,372           8,392,858         107,506,855       Operating income (loss)(12,970,682)       379,482              (145,256)              1,412,228           (602,737)           (11,926,965)        Non‐operating revenues: Operating grants and contributions 29,587                 ‐                             114,779                 95,933                240,299               Interest income 514,750               92,972                 7,018                     67,913                 41,275                723,928               Insurance reimbursement 9,866,075            ‐                             3,115                    9,869,190            Gain on disposal of capital assets  ‐                             ‐                             1,425                     577,050               7,767                  586,242               Total non‐operating revenues  10,410,412         92,972                 123,222                 648,078               144,975             11,419,659         Income (loss) before contributions  and transfers (2,560,270)          472,454               (22,034)                 2,060,306            (457,762)            (507,306)              Transfers in ‐                             ‐                             ‐                              2,320,700            1,638,200          3,958,900            Transfers out (1,865,192)          ‐                             (23,700)                 ‐                             ‐                           (1,888,892)          Total transfers and contributions  (1,865,192)          ‐                             (23,700)                 2,320,700            1,638,200          2,070,008            Changes in net position (4,425,462)          472,454               (45,734)                 4,381,006            1,180,438          1,562,702            Net position ‐ beginning 37,420,607         7,186,544            9,105,483             9,386,412            2,144,655          65,243,701         Net position ‐ ending 32,995,145$       7,658,998$         9,059,749$           13,767,418$       3,325,093$        66,806,403$       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, 2018 139 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 42,772,291$        24,000,000$       8,777,100$     2,824,600$     7,790,121$     86,164,112$        Cash received from employees for services 6,900,778            ‐ ‐ ‐ ‐  6,900,778             Cash received from other governments for services ‐ ‐  460,077           ‐ ‐  460,077                Cash received from retirees for services 598,408                1,126,981           ‐ ‐ ‐  1,725,389             Cash payments on behalf of retirees (1,358,288)           ‐ ‐ ‐ ‐  (1,358,288)           Cash payments for goods and services (56,722,147)        (24,940,992)       (6,039,594)      (189)  (2,851,979) (90,554,901)         Cash payments to employees (1,232,918)          ‐  (2,452,300)      (87,527)            (4,336,970) (8,109,715)           Cash payments for interfund services (301,375)              ‐  (229,400)          ‐  (95,493)             (626,268)               Net cash provided by (used for) operating activities (9,343,251)           185,989               515,883            2,736,884         505,679            (5,398,816)           Cash flows from non‐capital financing activities: Cash transfers from other funds ‐ ‐ ‐  2,320,700        2,150,800       4,471,500             Cash transfers to other funds (1,865,192)          ‐  (23,700)            ‐  (512,600)         (2,401,492)           Net cash provided by (used for) non‐capital financing activities (1,865,192)           ‐  (23,700)             2,320,700         1,638,200        2,070,008             Cash flows from capital and related financing activities: Receipts from insurance reimbursements 9,851,707            ‐ ‐ 3,115                ‐  9,854,822             Proceeds from disposal of capital assets ‐ ‐ 4,150               577,050           117 581,317                Payments for capital acquisitions (7,738) ‐  (73,530)            (3,527,432)      (985,322)         (4,594,022)           Net cash provided by (used for) capital and  related financing activities 9,843,969           ‐  (69,380)            (2,947,267)      (985,205)         5,842,117             Cash flows from investing activities: Interest on investments 512,431                82,704                 6,409               63,934             37,559             703,037                Net cash provided by investing activities 512,431                82,704                 6,409               63,934             37,559             703,037                Net increase (decrease) in cash and investments (852,043)             268,693              429,212           2,174,251        1,196,233       3,216,346             Cash and investments, October 1, 2017 43,921,649         9,833,874          655,291           4,589,775        2,383,946       61,384,535          Cash and investments, September 30, 2018 43,069,606$        10,102,567$       1,084,503$     6,764,026$     3,580,179$     64,600,881$        Operating income (loss)(12,970,682)$     379,482$           (145,256)$       1,412,228$     (602,737)$       (11,926,965)$       Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation expense 25,944                 ‐  580,098           1,319,358        1,125,300       3,050,700             Net changes in assets and liabilities: Trade receivable 768 (1,088)                 ‐ ‐ ‐ (320)  Due from other funds 990 (500,000)            48,339             ‐ ‐  (450,671)               Due from other governments ‐ ‐  31,848             ‐ ‐ 31,848  Inventory ‐ ‐  (42,999)            ‐ ‐ (42,999)                 Prepaid costs ‐ ‐ ‐ ‐  (1,266)              (1,266)  Accounts payable 123,382               ‐  (63,214)            ‐  (244,478)         (184,310)               Wages payable 4,918 ‐  (7,837)              (63) 11,235 8,253  Due to other funds ‐ ‐ ‐ ‐  (47,940)            (47,940)                 Due to other governments ‐ ‐ 35 607 ‐ 642  Compensated absences 4,564 ‐ 5,763               ‐  29,947             40,274  Unearned revenue 6,014 83,595                ‐ ‐ ‐ 89,609  Self‐insurance claims payable 3,427,314            224,000               ‐ ‐ ‐  3,651,314             Total OPEB liability (1,286) ‐ 4,838               (92) (245) 3,215  Deferred inflows of resources related to OPEB 1,193 ‐ 2,556               85 3,748               7,582  Net pension liability (16,667)                 ‐  40,890              2,556                 136,435            163,214                Deferred outflows of resources related to pensions 17,445                 ‐  (3,433)              (121) (28,591) (14,700)                 Deferred inflows of resources related to pensions 32,852                 ‐  64,255             2,326                124,271           223,704                Total adjustments 3,627,431           (193,493)            661,139           1,324,656        1,108,416       6,528,149             Net cash provided (used) by  operating activities (9,343,251)$         185,989$            515,883$         2,736,884$      505,679$         (5,398,816)$         Non‐cash investing, capital and financing activities: Change in fair value of investments (147,076)$            (16,860)$             (1,914)$             (19,358)$           (11,567)$          (196,775)$            Capital related accounts payable ‐ ‐  31,665             ‐  6,240               37,905  See accompanying independent auditors' report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 140 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  22,971,495$      634,937$        6,354,628$      5,924,548$      965,092$             36,850,700$       Receivables:  Interest ‐ ‐ ‐  12,224              2,028 14,252                 Other ‐  26,778             32,959              ‐ ‐  59,737                 Total assets 22,971,495$      661,715$        6,387,587$      5,936,772$      967,120$             36,924,689$       LIABILITIES  Due to other governments 1,095,270$        94,016$           6,317,621$      ‐$  ‐$  7,506,907$         Due to individuals ‐  567,699           69,966              ‐ ‐   637,665               Refundable deposits  21,876,225        ‐ ‐  5,936,772        ‐   27,812,997         Due to special assessment holders  ‐ ‐ ‐ ‐ 967,120               967,120               Total liabilities  22,971,495$      661,715$        6,387,587$      5,936,772$      967,120$             36,924,689$       See accompanying independent auditors' report   ASSETS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2018 142 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash and investments  21,158,645$          133,896,503$           132,083,653$           22,971,495$           Receivable:    Other 10                            ‐                                  10                               ‐                                    Total assets 21,158,655$          133,896,503$           132,083,663$           22,971,495$           Liabilities:  Due to other governments   989,426$                4,324,409$               4,218,565$               1,095,270$             Refundable deposits 20,169,229            129,572,094             127,865,098             21,876,225                Total liabilities 21,158,655$          133,896,503$           132,083,663$           22,971,495$           Sheriff Agency Fund  Assets:  Cash and investments  565,455$                634,937$                   565,455$                   634,937$                 Receivable:    Other 3,156                       26,778                       3,156                         26,778                        Total assets 568,611$                661,715$                   568,611$                   661,715$                 Liabilities:  Due to other governments   50,460$                  94,016$                     50,460$                     94,016$                   Due to individuals 518,151                  567,699                     518,151                     567,699                       Total liabilities 568,611$                661,715$                   568,611$                   661,715$                 Tax Collector Agency Fund  Assets:  Cash and investments  6,271,609$            1,088,447,045$       1,088,364,026$       6,354,628$             Receivable:    Other 50,324                    4,825,603                 4,842,968                 32,959                        Total assets 6,321,933$            1,093,272,648$       1,093,206,994$       6,387,587$             Liabilities:  Due to other governments   6,284,876$            1,442,917,881$       1,442,885,136$       6,317,621$             Due to individuals 37,057                    67,540,266               67,507,357               69,966                        Total liabilities 6,321,933$            1,510,458,147$       1,510,392,493$       6,387,587$             Deposits Agency Fund  Assets:  Cash and investments  5,961,531$            1,077,228$               1,114,211$               5,924,548$             Receivables:    Interest  12,361                    12,224                       12,361                       12,224                        Total assets 5,973,892$            1,089,452$               1,126,572$               5,936,772$             Liabilities:  Refundable deposits 5,973,892$            1,340,095$               1,377,215$               5,936,772$                Total liabilities 5,973,892$            1,340,095$               1,377,215$               5,936,772$             (Continued) COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 143 Balance Balance October 1 Additions Deductions September 30 Assets:  Cash and investments  165,448$                802,680$  3,036$  965,092$                 Receivables:    Interest  416 2,028 416 2,028     Total assets 165,864$                804,708$  3,452$  967,120$                 Liabilities:  Due to special assessment holders   165,864$                804,708$  3,452$  967,120$                    Total liabilities 165,864$                804,708$  3,452$  967,120$                 Total  ‐ All Agency Funds  Assets:  Cash and investments  34,122,688$          1,224,858,393$       1,222,130,381$       36,850,700$           Receivables:    Interest  12,777 14,252 12,777 14,252    Other 53,490 4,852,381 4,846,134 59,737     Total assets 34,188,955$          1,229,725,026$       1,226,989,292$       36,924,689$           Liabilities:  Due to other governments   7,324,762$            1,447,336,306$       1,447,154,161$       7,506,907$             Due to individuals 555,208 68,107,965               68,025,508               637,665  Refundable deposits 26,143,121            130,912,189             129,242,313             27,812,997             Due to special assessment holders   165,864 804,708 3,452 967,120     Total liabilities 34,188,955$          1,647,161,168$       1,644,425,434$       36,924,689$            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, 2018 Pine Ridge and Naples Production Park Agency Fund  144 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   25,435$                79,412$                116,350$              43,314$                264,511$              Total assets  25,435$                79,412$                116,350$              43,314$                264,511$              NET POSITION  Net position ‐ unrestricted  25,435$                79,412$                116,350$              43,314$                264,511$              Total Net Position  25,435$                79,412$                116,350$              43,314$                264,511$              See accompanying independent auditors' report  ASSETS  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS SEPTEMBER 30, 2018 146 Net (Expense) Revenue and Changes Program Revenues in Net Position Fees, Fines and Governmental Expenses Charges for Services Activities Industrial Development Authority  17,016$ 20,763$ 3,747$  Health Facilities Authority 2,687 55,438 52,751  Housing Finance Authority 3,547 ‐ (3,547)  Educational Facilities Authority 16,015 14,584 (1,431)  Total 39,265$ 90,785$ 51,520  General revenues: Interest income 275    Total general revenues 275  Change in net position 51,795  Net position ‐ beginning 212,716  Net position ‐ ending 264,511$  See accompanying independent auditors' report  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 Functions/Programs COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS 147 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 2018 2018 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 2018  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, 2018 150 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 SECTION (UNAUDITED) 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    152  Change in net position    154  Governmental activities tax revenues by source    156  Fund balances of governmental funds    157  Changes in fund balance of governmental funds    158  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    160  Property tax rates – All direct and overlapping governments  161  Principal tax payers County‐wide    162  Property tax levies and collections    163  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 164  Legal debt margin information 165  Direct, overlapping and underlying governmental activities debt 165  Pledged‐revenue coverage 166  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 167  Principal employers 168  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 169  Operating indicators by function 170  Capital Asset statistics by function/program 171  2018 2017 2016 2015 2014 2013 Governmental Activities:   Net investment in capital assets 1,287,184$    1,257,685$    1,225,520$    1,217,176$    1,207,751$    1,198,971$      Restricted 362,045          336,922          327,968          298,360          223,526          221,501            Unrestricted (29,328)           (24,011)           2,478               13,109            169,633          152,790          Total governmental activities net position 1,619,901$    1,570,596$    1,555,966$    1,528,645$    1,600,910$    1,573,262$    Business‐type Activities:   Net investment in capital assets 763,259$        741,912$        723,000$        714,239$        705,065$        668,160$          Restricted 31,982            32,619            35,760            31,511            29,749            34,379              Unrestricted 143,198          168,602          169,287          165,128          185,420          196,050          Total business‐type activities net position 938,439$        943,133$        928,047$        910,878$        920,234$        898,589$        Primary Government:   Net investment in capital assets 2,050,443$    1,999,597$    1,948,520$    1,931,415$    1,912,816$    1,867,131$      Restricted 394,027          369,541          363,728          329,871          253,275          255,880            Unrestricted 113,870          144,591          171,765          178,237          355,053          348,840          Total primary government net position 2,558,340$    2,513,729$    2,484,013$    2,439,523$    2,521,144$    2,471,851$    Fiscal Year COLLIER COUNTY, FLORIDA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) (amounts expressed in thousands) (unaudited) 152 2012 2011 2010 2009 1,187,298$    1,172,121$    1,169,052$    1,131,617$    226,934          253,977          232,571          240,247          147,188          147,080          189,911          192,442          1,561,420$   1,573,178$   1,591,534$   1,564,306$    650,684$       643,777$       635,702$       653,320$        34,199           38,002           37,795           31,227            194,389         177,939         169,514         149,422          879,272$       859,718$       843,011$       833,969$        1,837,982$   1,815,898$   1,804,754$   1,784,937$    261,133         291,979         270,366         271,474          341,577         325,019         359,425         341,864          2,440,692$   2,432,896$   2,434,545$   2,398,275$    Fiscal Year 153 2018 2017 2016 2015 2014 2013 Expenses Governmental activities:    General government 126,920$         108,388$         104,188$          93,644$            92,176$            95,941$                Public safety 223,177           225,360            205,347            174,874            177,267            171,210                Transportation 83,386             75,589              70,560               70,296               71,623              69,275                  Culture and recreation 58,042             51,889              49,526               45,117               41,630              41,453                  Other activities 64,822             41,899              48,256               45,621               39,171              43,067                  Interest on long‐term debt 9,736                11,294              12,077               12,912               12,674              16,129               Total governmental activities expenses 566,083$         514,419$         489,954$          442,464$          434,541$         437,075$          Business‐type activities:    Water and Sewer 144,113$         144,850$         130,792$          122,858$          112,643$         114,041$             Solid Waste 106,823           43,664              39,271               36,411               33,787              32,760                  Emergency Medical Services 32,275             28,644              26,529               24,094               23,208              21,545                  Airport Authority 5,533                4,905                4,402                 4,771                 3,764                4,439                    Mass Transit 12,680             11,354              11,333               10,416               10,306              10,111               Total business‐type activities expenses 301,424           233,417            212,327            198,550            183,708            182,896             Total primary government expenses 867,507$         747,836$         702,281$          641,014$          618,249$         619,971$          Program Revenues Governmental activities:  Charges for services:    General government 37,703$           33,377$            35,184$            34,240$            34,662$            36,080$                Public safety 28,040             24,240              25,276               25,227               21,765              19,735                  Transportation 2,111                2,024                4,880                 1,094                 959 1,045                    Culture and recreation 7,886                8,192                8,393                 8,685                 7,943                8,416                    Other activities 2,235                1,467                1,230                 4,237                 2,661                3,667                 Operating Grants and Contributions 29,549             26,539              26,387               35,521               31,444              20,921               Capital Grants and Contributions 47,645             38,124              36,818               29,986               28,945              28,280               Total governmental activities program revenues 155,169           133,963            138,168            138,990            128,379            118,144             Business‐type activities:  Charges for services:    Water and Sewer 145,757           135,045            123,856            116,645            107,924            109,176                Solid Waste 50,449             45,209              41,918               39,121               35,368              34,585                  Emergency Medical Services 12,836             11,812              13,161               12,327               9,922                10,335                  Airport Authority 3,951                3,734                3,073                 3,350                 2,589                3,021                    Mass Transit 1,129                1,267                1,225                 1,719                 1,641                1,450                 Operating Grants and Contributions 16,426             5,025                4,435                 5,142                 3,077                3,914                 Capital Grants and Contributions 38,670             26,993              25,367               21,165               30,662              24,953               Total business‐type activities program revenues 269,218           229,085            213,035            199,469            191,183            187,434             Total primary government program revenues 424,387           363,048            351,203            338,459            319,562            305,578             Net (expense)/revenue: Governmental activities (410,914)          (380,456)          (351,786)           (303,474)           (306,162)          (318,931)           Business‐type activities (32,206)            (4,332)               708 919 7,475                4,538                 Total primary government net expense (443,120)$         (384,788)$         (351,078)$          (302,555)$          (298,687)$         (314,393)$         General Revenues and Other Changes in Net Position Governmental Activities:    Taxes:       Property taxes 337,447$         312,633$         281,136$          259,779$          244,404$         249,352$                Gas taxes 22,749             21,799              20,478               19,547               18,556              18,229                     Sales taxes 44,093             41,799              40,659               38,573               35,786              32,168                     Tourist taxes 27,962             21,961              21,838               21,188               19,137              16,183                     Other taxes 6,914                7,478                7,280                 7,322                 7,840                9,403                    State revenue sharing 12,564             11,602              11,100               10,589               9,657                8,792                    Interest income 6,857                3,574                4,891                 5,069                 2,599                1,496                    Miscellaneous 18,121             9,714                5,976                 17,510               13,333              9,063                    Special item ‐ registry bond ‐ ‐ ‐ ‐ ‐ ‐     Transfers, net (16,487)            (14,793)            (14,250)             (14,192)             (13,185)            (13,912)             Total governmental activities 460,220$         415,767$         379,108$          365,385$          338,127$         330,774$          Business‐type Activities:    Interest income 2,602                1,379                2,011                 2,209                 1,301                712     Miscellaneous 8,423                126 200 94 68 154     Transfers, net 16,487             14,793              14,250               14,192               13,184              13,912               Total business‐type activities 27,512             16,298              16,461               16,495               14,553              14,778               Total primary government 487,732$          432,065$          395,569$          381,880$          352,680$         345,552$          Change in Net Position Governmental activities 49,306$           35,311$            27,322$            61,911$            31,965$            11,843$             Business‐type activities (4,694)              11,966              17,169               17,414               22,028              19,316               Total primary government 44,612$           47,277$            44,491$            79,325$            53,993$            31,159$             Fiscal Year (unaudited) COLLIER COUNTY, FLORIDA CHANGE IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) (amounts expressed in thousands) 154 2012 2011 2010 2009 94,227$            103,045$          100,483$         113,906$           165,782            173,286            179,276            182,962             73,000               81,383               76,603              64,601                42,507               44,205               46,871              45,727                51,057               39,991               40,937              45,367                16,412               19,797               19,475              20,492                442,985$          461,707$          463,645$         473,055$           102,642$          104,333$          103,272$         90,042$             29,618               28,000               27,416              30,774                21,792               22,657               23,073              22,478                4,601                 4,458                 4,382                3,895                  9,925                 10,187               9,617                8,974                  168,578            169,635            167,760            156,163             611,563$          631,342$          631,405$         629,218$           31,388$             33,919$             29,281$             32,257$             16,743                15,554                16,385               11,940                880                     715                     829                    3,101                  9,126                  9,093                  8,267                 9,830                  4,941                  2,296                  1,557                 1,620                  22,892                19,503                31,884               21,948                20,279                19,347                25,762               24,867                106,249             100,427             113,965             105,563             103,042             105,858             101,062             104,927             34,275                33,769                33,568               32,922                10,249                8,980                  10,759               9,114                  2,805                  2,938                  2,519                 2,353                  1,360                  1,290                  1,145                 1,101                  2,948                  4,378                  4,448                 3,235                  17,818                14,307                10,385               18,147                172,497             171,520             163,886             171,799             278,746             271,947             277,851             277,362             (336,736)            (361,280)            (349,680)           (367,492)            3,919                  1,885                  (3,874)                15,636                (332,817)$          (359,395)$          (353,554)$         (351,856)$          248,232$          261,630$          299,389$         313,290$           18,525               18,311               18,415              18,456                29,713               28,364               26,927              26,779                14,898               13,884               12,857              12,345                9,997                 10,155               10,039              12,241                8,233                 8,310                 7,854                7,927                  2,430                 3,888                 4,665                11,455                7,397                 11,498               8,022                12,066                ‐                         ‐                         ‐                          3,239                  (14,447)             (13,117)             (11,259)            (12,596)              324,978            342,923            376,909            405,202             1,106                 1,609                 1,569                2,395                  82                      96                      88                      551                     14,447               13,117               11,259              12,596                15,635               14,822               12,916              15,542                340,613$          357,745$          389,825$         420,744$           (11,758)$            (18,357)$            27,229$             37,710$             19,554                16,707                9,042                 31,178                7,796$                (1,650)$              36,271$             68,888$             Fiscal Year 155 Fiscal Property Gas Sales Tourist Other Year Tax Tax Tax Tax Taxes (1) Total 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            2018 337,447             22,749         44,093         27,962          6,914          439,165             (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) 156 2009 General fund    Reserved 8,962$            Unreserved 38,924         Total general fund 47,886$      All other governmental funds    Reserved 105,991$       Unreserved, reported in:        Special revenue funds 114,208             Debt service funds 1,587                  Capital projects funds 140,544      Total all other governmental funds 362,330$    2018 2017 2016 2015 2014 2013 2012 2011 2010 General fund (1)    Nonspendable 2,645$        3,386$        3,675$        3,546$         19,843$     15,744$     12,914$     11,805$     9,460$            Restricted 306              2,440          264             345             125             96                110             ‐                  ‐                      Committed ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                  ‐                      Assigned 1,736          1,598          1,674          1,299          850             813             952              1,114          2,182              Unassigned 77,342        54,805        53,961        55,002        57,781        56,497        57,091        54,459        59,705         Total general fund 82,029$     62,229$     59,574$     60,192$     78,599$     73,150$     71,067$     67,378$     71,347$      All other governmental funds    Nonspendable 8,135$        2,385$        3,055$        3,112$         53,544$     46,049$     ‐$                ‐$                 107,626$       Restricted 354,514     328,447     324,334     293,281     242,981     223,700     209,352     229,546     232,699         Committed 34,788        32,759        26,069        25,663        27,349        29,810        47,406        48,445        48,764            Assigned 21,129        33,822        28,644        30,800        28,391        36,364        80,771        79,556        34,215            Unassigned (246)            ‐                   (89)               (514)             (62,085)      (55,212)      (48,944)      (40,258)      23,192         Total all other governmental funds 418,320$   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) 157 2018 2017 2016 2015 2014 2013 Revenues: Taxes 386,814$      355,885$      322,915$      300,341$      282,315$      285,765$       Licenses, permits and impact fees 75,102           59,217           61,033           51,319           40,631           35,168            Intergovernmental 92,206           86,656           83,949           92,818           89,392           83,667            Charges for services 36,981           34,008           38,362           37,172           35,149           32,435            Fines and forfeitures 2,375             2,263             2,708             2,866             3,252             3,712              Interest income 6,133             3,233             4,440             4,606             2,393             1,406              Special assessments 4,789             4,350             3,746             3,132             2,922             2,924              Miscellaneous 4,527             8,705             6,600             16,063           11,553           4,833              Total revenues 608,927        554,317        523,753        508,317        467,607        449,910         Expenditures: Current:    General government 101,198        89,193           84,599           78,147           73,739           75,725               Public safety 198,097        197,762        177,375        167,788        163,169        153,566            Physical environment 31,994           12,465           15,283           16,157           11,276           13,790               Transportation 45,904           41,003           36,011           36,992           38,789           37,170               Economic environment 9,942             8,199             11,061           9,159             9,265             14,436               Human services 15,849           15,058           14,038           13,151           12,367           12,254               Culture and recreation 47,671           42,889           40,886           37,523           34,114           33,744            Debt service:    Principal 21,864           21,439           20,743           20,039           18,510           25,125               Interest 10,165           11,908           12,713           13,555           14,177           17,565               Redemption of debt ‐  5,588             ‐ ‐ ‐ ‐     Payment to refunding bond escrow ‐ ‐ ‐ ‐  2,086             132                    Other fiscal charges 128                48 19 21 173                2,165              Capital outlay 82,871           80,495           67,198           62,186           63,613           61,278                Total expenditures 565,683        526,047        479,926        454,718        441,278        446,950              Excess (deficit) of revenues         over (under) expenditures 43,244           28,270           43,827           53,599           26,329           2,960              Other financing sources (uses):  Bonds issued ‐$  ‐$  ‐$  ‐$   89,780$        73,805$          Notes issued ‐  5,293             ‐ ‐ ‐ ‐   Premiums on bonds issued ‐ ‐ ‐ ‐ ‐  2,082               Payment to refunding escrow (44,525)          ‐ ‐ ‐  (89,622)         (73,747)           Capital leases ‐ ‐ ‐  1,915             ‐   Loans issued 55,713           ‐ ‐ ‐ ‐   Sale of capital assets 1,065             155                306                595                314                233                  Insurance proceeds 3,762             339                796                379                316                300                  Transfers in 114,358        117,833        121,654        196,026        97,854           90,637             Transfers out (132,910)       (133,834)       (137,530)       (208,760)       (110,052)       (102,061)            Total other financing sources (uses)(2,537)           (10,214)         (14,774)         (9,845)           (11,410)         (8,751)            Special item ‐ registry bond ‐ ‐ ‐ ‐ ‐ ‐  Net change in fund balances 40,707$        18,056$        29,053$        43,754$        14,919$        (5,791)$          Debt service as a percentage of noncapital    expenditures 6.66% 7.50% 8.11% 8.56% 9.25% 11.66% 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) 158 2012 2011 2010 2009 284,124$      296,640$      333,554$      348,780$       30,436           23,695           28,920           25,950            79,402           74,453           86,445           69,883            30,739           27,855           27,122           35,928            4,205             3,882             5,730             5,916              2,197             3,602             4,306             11,256            3,035             2,725             2,848             2,853              4,664             10,565           6,380             11,344            438,802        443,417        495,305        511,910         73,812           79,499           82,409           95,689            151,858        160,890        165,017        168,592         22,870           14,251           9,974             10,608            42,176           50,741           43,677           41,171            14,393           7,841             11,122           12,125            10,988           13,075           12,116           11,277            34,253           35,745           37,569           37,212            31,602           36,493           34,274           48,085            18,149           20,933           20,340           21,498            ‐ ‐ ‐ ‐  ‐ ‐ ‐ ‐  1,082             434                891                116                 49,406           38,726           69,809           176,681         450,589        458,628        487,198        623,054         (11,787)         (15,211)         8,107              (111,144)        131,525$      24,620$        59,895$        13,244$         ‐ ‐ ‐ ‐  17,192           2,050             844                ‐  (150,550)       (26,593)         (59,893)         ‐  236                ‐ ‐ ‐  ‐ ‐ ‐  13,500            313                70 248                301                 270                384                310                753                 91,524           107,167        105,394        143,275         (103,738)       (118,037)       (114,905)       (155,888)        (13,228)         (10,339)         (8,107)           15,185            ‐ ‐ ‐  3,239              (25,015)$       (25,550)$       ‐$   (92,720)$        12.67% 13.78% 13.30% 15.61% Fiscal Year 159 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 Value1 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                4.2029 93,515,929       100% 2018 109,736,738       2,535,239      244                   10,317,449    101,954,772             4.1851 112,272,221    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) 160 Collier County Special Debt County Fiscal General Revenue Service School Independent Year Fund Funds Funds Total District Districts Total 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 0.6323           0.0061           4.2029           5.2450 1.1138 10.5617         2018 3.5645 0.6145           0.0061           4.1851           5.1220 1.2375 10.5446         Sources:   Property Appraiser Recapitulation Report   Collier County Adopted Budget Basis for property tax rates is 1 mill per $1,000 of assessed value.  Property is assessed as of January 1 and taxes based  on those assessments are levied according to the tax rate in effect that tax year and become due on November 1.   Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the  following calendar year. Other COLLIER COUNTY, FLORIDA PROPERTY TAX RATES ‐ ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS (unaudited) 161 Property Percent of Property Percent of Taxes Total Taxes Total              Owner/Taxpayer Levied Rank Taxes Levied Levied Rank Taxes Levied Florida Power & Light Company 3,134,250$              1 0.33%2,547,742$             1 0.30% HHR Naples LLC 1,866,428                2 0.20%1,630,872               2 0.19% The Moorings, Inc.1,314,683                3 0.14%798,946 9 0.09% Marco Hotel, LLC 1,202,688                4 0.13%‐ ‐  PR Mercato LLP 1,190,608                5 0.13%‐ ‐  CC‐Naples Inc 982,387 6 0.10%‐‐  Arthrex Manufacturing Inc.907,516 7 0.10%947,585 5 0.11% Lee County Electric Co‐Op, Inc.865,810 8 0.09%796,260 10 0.09% Coastland Center, LLC 747,629 9 0.08%‐‐  Collier HMA, Inc.720,518 10 0.07%886,172 7 0.10% Century Link ‐ ‐ 1,357,067               3 0.16% City National Bank of Miami ‐ ‐ 1,030,745               4 0.12% Naples HMA, Inc.‐ ‐ 890,173 6 0.10% Wal‐Mart Stores East LP ‐ ‐ 855,614 8 0.10% Total 12,932,517$           1.37%11,741,176$          1.35% Total Property Taxes Levied 944,774,029$         857,168,443$         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 2018 2009 COLLIER COUNTY, FLORIDA PRINCIPAL TAXPAYERS COUNTY‐WIDE 2018 TAX ROLL (unaudited) 162 Fiscal Year Total Tax Ended Levy for Collections in September 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy 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% 2018 354,535             337,117             95.1%‐                                        337,117             95.1% 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) 163 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 Income 1 Capita1 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         2018 2,037         286,190     16,515        236            110,010     77,945        521            493,454        1.51% 1,326         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) 164 Estimated Estimated Percentage  Share of  Debt Applicable Based Overlapping Outstanding on Population (1) Debt Direct Debt: Governmental Activities Limited General Obligation Bonds  2,037,028$              100.00% 2,037,028$            Gas Tax Revenue Bonds (2)85,857,098             100.00% 85,857,098            Special Obligation Revenue Bonds (2)200,332,347          100.00%200,332,347          Commercial Paper 11,900,000             100.00% 11,900,000            Notes Payable (2)4,615,198               100.00% 4,615,198              Capital Leases (2)236,433                  100.00% 236,433                    Total Governmental Activities Direct Debt 304,978,104          304,978,104          Business‐type Activities Revenue Bonds 110,010,269          100.00%110,010,269          Capital Leases (2)520,901                  100.00% 520,901                  Notes Payable (2)77,944,557             100.00% 77,944,557              Total Business‐type Activities Direct Debt 188,475,727          188,475,727                Subtotal, Direct Debt 493,453,831          493,453,831          Overlapping Debt:   N/A ‐                                0.00%‐                               Underlying Debt:  City of Naples (3)8,744,058               5.08%444,198                   City of Marco Island (4)9,826,427               4.08%400,918                   City of Everglades (5)‐                                ‐                                 Subtotal, Underlying Debt 18,570,485             9.16%845,116                  Total Direct, Overlapping and Underlying Debt 512,024,316$        494,298,947$        (1) Population numbers obtained from www.florida‐demographics.com/cities_by_population. (2) Totals consist of more than one issuance. (3) Governmental activities debt outstanding amount obtained from the City of Naples. (4) Governmental activities debt outstanding amount obtained from the City of Marco Island. (5) Governmental activities debt outstanding amount obtained from the City of Everglades. (unaudited) (unaudited) COLLIER COUNTY, FLORIDA DIRECT, OVERLAPPING AND UNDERLYING DEBT AS OF SEPTEMBER 30, 2018  LEGAL DEBT MARGIN INFORMATION AS OF SEPTEMBER 30, 2018 The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. 165 Legally Gas Available Fiscal Tax Non‐Ad Valorem Year Collections Principal Interest Coverage Collections(5) Principal Interest Coverage 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 2018 22,749 10,510 2,737  1.72 118,725                10,258 7,012  6.87 Water/ Sewer Less:Net Fiscal Charges Operating Available Year and Other(1) Expenses(2) Revenue Principal Interest Coverage(3) 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   2018 155,847                90,507 65,340                  5,528        3,050 7.62   (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 166 Per Capita Fiscal Personal Personal Median School Unemployment Year Population(1) Income(2) Income(3) Age(4) Enrollment(5) Rate(6) 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% 2018 368,534                32,749,753,000           87,829             49.7              47,934                    3.3% Sources: (1)www.colliergov.net/your-government/divisions-a-e/comprehensive-planning/population-and-demograph (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 167 Percent of Percent of Total County Total County Employer Employees Rank Employment Employees Rank Employment Collier County Public Schools 5,606 1 3.84%4,728 2 4.06% NCH Healthcare System 4,315 2 2.96%5,000 1 4.29% Arthex, Inc 2,355 4 1.61% Collier County Government (excl. Sheriff)2,313 3 1.59%2,276 5 1.95% Collier County Sheriff's Office 1,405 5 0.96%1,387 7 1.19% Publix Supermarkets 1,257 6 0.86%3,246  3 2.79% Ritz Carlton Hotel 1,100  7 0.75%‐ ‐ Seminole Casino ‐ Immokalee 1,068 8 0.73%‐‐ JW Marriott ‐ Marco Island 1,050  9 0.72%2,328 4 2.00% Naples Grande Beach Resort (1)700  10 0.48%‐‐ Other employers 124,840                85.50%97,580 83.73%  Totals 146,009                100.00%116,545                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) 2018 2009 168 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Function: General government 1,299         1,351         1,262         1,217         1,216         1,203         1,222         1,219         1,252         1,342         Public safety 1,089         1,112         1,124         1,096         1,072         1,061         1,061         1,062         1,053         1,064         Physical environment 73               73               70               69               67               67               69               66               66               69               Transportation 224            219            211            192            187            187            199            213            234            257            Economic environment 30               29               26               27               28               26               28               27               22               22               Human services 58               58               56               56               53               51               50               50               54               55               Culture and recreation 337            324            304            298            294            289            293            293            308            328            Water and Sewer 414            410            384            342            340            342            344            344            335            335            Solid Waste 43               31               28               27               28               29               27               27               27               27               Emergency Medical Services 199            194            193            193            172           172            172            172            183            185            Airport Authority 15               15               15               14               14               16               16               16               16               16               Collier Area Transit 5                 4                 4                 3                 3                 3                 3                 1                 1                 1                 Total 3,786         3,820         3,677         3,534         3,474         3,446         3,484         3,490         3,551         3,701         (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 169 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Function: Police: Physical arrests 9,266          8,269          9,359          9,347          11,277        11,277        11,297        20,180        13,310        15,671        Parking violations 894               1,068          867              931              964               1,182          1,175          1,479          1,283          1,297           Traffic violations 17,157        15,473        14,462        16,355        19,868        22,211        19,237        19,680        22,051        28,308        Fire: Fires reported ** **31                82                37                52                46                468              498              533              Emergency responses (exclude fires) ** **839               1,093          1,080          1,024          764              569              825              760              Number of calls answered 804              795 870               1,175          1,117          1,076          810               1,037          1,323          1,293           Transportation: Collier Area Transit ridership 944,931      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   Street resurfacing (lane miles) 40                38                34                34                80                78                142              131              85                97                Culture and recreation: Beach parking stickers issued 143,500      149,490      139,828      134,051      181,878      122,415      114,778      312,144      98,093         132,218      Library circulation 2,253,555   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   Water: New connections 2,776          1,951          2,023          2,204          1,878          1,417          1,189          921              909              704              Wastewater: Average daily sewage treatment 18,030        18,555        17,864        17,090        17,150        16,954        15,834        14,747        14,326        13,769           (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 170 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Function: Public Safety:    Police stations 7                7                7                7                7                7               7                7                7                7                   Patrol units 272           270           274           276           276           275           275           275           275           275           Fire:    Fire stations 4                4                4                4                4                3               3                3                3                3                Highways and streets:    Streets (miles)1,166        1,161        1,159        1,149        1,151        1,184        1,184        1,184        1,184        1,184           Streetlights 5,083        5,074        5,182        4,958        4,958        4,868        4,781        4,759        4,701        4,485           Traffic signals 377           374           365           360           370           353           297           295           283           283           Culture and recreation:    Parks acreage 1,521        1,521        1,521        1,521        1,521        1,521        1,520        1,511        1,473        1,473           Parks 61             61             61             61             61             61             61             60             59             59                Swimming pools 9                8                8                8                8                8               8                8                8                8                   Tennis courts 45             45             45             45             45             45             45             45             45             45                Community centers 9                9                9                9                8                8               8                8                8                8                   Libraries 10             10             10             10             10             10             10             10             10             10                Number of volumes in libraries 593,378   557,188   567,248   605,408   683,237   692,229   673,131   741,389   797,823   797,978   Water:    Number of customers 71,614      66,010      61,830      59,443      57,548      55,878     54,190      53,181      51,796      51,499         Water mains (miles) 1,132        1,067        1,015       986           925           888           888           886           886           886              Maximum daily capacity (per million gallons)  30,956      32,243      33,877      31,376      30,460      30,120     29,988      29,616      28,368      33,340      Wastewater:    Sanitary sewers (miles) 1,156        1,085        1,021        1,028        1,030        1,081        1,116        1,115        1,095        1,081           Primary and secondary drainage facilities  312           289           294           306           306           305           305           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 171 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 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, 2018, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated February 15, 2019. 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. 175 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 results 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 February 15, 2019 176 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, 2018. 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. 177 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, 2018. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with Chapter 10.550 and are described in the accompanying schedule of findings and questioned costs as item 2018-001. Our opinion on each major federal program and state project is not modified with respect to these matters. The County’s response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The County’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with 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 or 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 or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 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 have not been identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we did identify a certain deficiency in internal control over compliance, described in the accompanying schedule of findings and questioned costs as item 2018-001, that we consider to be a significant deficiency. 178 Honorable Board of County Commissioners Collier County, Florida The County’s response to the internal control over compliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The County’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results 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 February 15, 2019 179 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS U.S. Department of Agriculture Direct Programs: Rural Business Cooperative Service: Rural Business Development Grant 10.351 RO87213   53185 13,601$                  ‐$                              Natural Resources Conservation Service: Emergency Watershed Protection Program 10.923 NR184209XXXXC028 3,924,916               ‐                                Indirect Programs: Florida Department of Agriculture and Consumer Services: Child Nutrition Cluster: Summer Food Service Program for Children 10.559 018588 65,218                    ‐                                Total Child Nutrition Cluster 65,218                    ‐                                Total U.S. Department of Agriculture 4,003,735               ‐                                U.S. Department of Housing and Urban Development Direct Programs: Assistant Secretary for Community Planning and Development: CDBG ‐ Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants  14.218 B‐02‐UC‐12‐0016 49,422                    49,422                     Community Development Block Grants/Entitlement Grants  14.218 B‐03‐UC‐12‐0016 3,480                      3,480                       Community Development Block Grants/Entitlement Grants  14.218 B‐04‐UC‐12‐0016 8,912                      8,912                       Community Development Block Grants/Entitlement Grants  14.218 B‐05‐UC‐12‐0016 50,127                    45,855                     Community Development Block Grants/Entitlement Grants  14.218 B‐07‐UC‐12‐0016 141,472                  141,472                   Community Development Block Grants/Entitlement Grants  14.218 B‐08‐UN‐12‐0003 445,357                  ‐                                Community Development Block Grants/Entitlement Grants  14.218 B‐11‐UC‐12‐0016 5,000                      5,000                       Community Development Block Grants/Entitlement Grants  14.218 B‐11‐UN‐12‐0003 230,178                  ‐                                Community Development Block Grants/Entitlement Grants  14.218 B‐12‐UC‐12‐0016 39,346                    39,346                     Community Development Block Grants/Entitlement Grants  14.218 B‐13‐UC‐12‐0016 20,975                    20,975                     Community Development Block Grants/Entitlement Grants  14.218 B‐14‐UC‐12‐0016 272,195                  272,195                   Community Development Block Grants/Entitlement Grants  14.218 B‐15‐UC‐12‐0016 113,408                  112,631                   Community Development Block Grants/Entitlement Grants  14.218 B‐16‐UC‐12‐0016 1,349,579               342,135                   Community Development Block Grants/Entitlement Grants  14.218 B‐17‐UC‐12‐0016 865,027                  374,073                   Total CFDA 3,594,478               1,415,496               Total CDBG ‐ Entitlement Grants Cluster 3,594,478               1,415,496               Emergency Solutions Grant Program  14.231 E‐16‐UC‐12‐0016 37,059                    26,071                     Emergency Solutions Grant Program  14.231 E‐17‐UC‐12‐0016 141,241                  102,591                   Total CFDA 178,300                  128,662                   Home Investment Partnerships Program 14.239 M‐09‐UC‐12‐0217 28,337                    ‐                                Home Investment Partnerships Program 14.239 M‐10‐UC‐12‐0217 39,077                    ‐                                Home Investment Partnerships Program 14.239 M‐11‐UC‐12‐0217 6,864                      ‐                                Home Investment Partnerships Program 14.239 M‐13‐UC‐12‐0217 39,973                    39,973                     Home Investment Partnerships Program 14.239 M‐14‐UC‐12‐0217 100,596                  4,155                       Home Investment Partnerships Program 14.239 M‐15‐UC‐12‐0217 171,671                  ‐                                Home Investment Partnerships Program 14.239 M‐17‐UC‐12‐0217 52,322                    ‐                                Total CFDA 438,840                 44,128                     Total U.S. Department of Housing and Urban Development 4,211,618              1,588,286               U.S. Department of the Interior Direct Programs: Office of the Secretary of the Interior: Payments in Lieu of Taxes 15.226 Collier County 1,385,819               ‐                                (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. PASS‐THROUGH ENTITY COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 FEDERAL / STATE AGENCY FEDERAL PROGRAM / STATE PROJECT 180 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS PASS‐THROUGH ENTITY COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 FEDERAL / STATE AGENCY FEDERAL PROGRAM / STATE PROJECT U.S. Fish and Wildlife Service: Partners for Fish and Wildlife 15.631 F14AC00709 5,006$  ‐$  National Wildlife Refuge Fund 15.659 Collier County 151,416 ‐  Total U.S. Department of the Interior 1,542,241              ‐  U.S. Department of Justice Direct Programs: Community Oriented Policing Services: Public Safety Partnership and Community Policing Grants 16.710 2012ULWX0008 65,650 ‐  Public Safety Partnership and Community Policing Grants 16.710 2013ULWX0047 22,775 ‐  Total CFDA 88,425 ‐  Criminal Division: Equitable Sharing Program 16.922 Collier County Sheriff 53,367 ‐  Office of Justice Programs: Drug Court Discretionary Grant Program 16.585 2017‐DC‐BX‐0053 74,904 62,417  Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016‐DJ‐BX‐0846 33,949 ‐  Indirect Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2017‐JAGC‐COLL‐1‐F9‐136 22,974 ‐  Total CFDA 56,923 ‐  Florida Department of Legal Affairs: Crime Victim Assistance 16.575 VOCA‐2017‐Collier County Sheriff's ‐00017 174,979 ‐  Total U.S. Department of Justice 448,598 62,417  U.S. Department of Transportation Direct Programs: Federal Aviation Administration (FAA): Airport Improvement Program 20.106 3‐12‐0021‐004‐2017 49,105 ‐  Airport Improvement Program 20.106 3‐12‐0031‐009‐2016 33,153 ‐  Airport Improvement Program 20.106 3‐12‐0031‐010‐2016 2,012 ‐  Airport Improvement Program 20.106 3‐12‐0031‐011‐2017 914,527 ‐  Airport Improvement Program 20.106 3‐12‐0142‐011‐2016 18,050 ‐  Total CFDA 1,016,847              ‐  Federal Transit Administration (FTA): Federal Transit Cluster: Federal Transit Formula Grants 20.507 FL‐90‐X766‐00 63,623 ‐  Federal Transit Formula Grants 20.507 FL‐90‐X853‐00 203,636 ‐  Federal Transit Formula Grants 20.507 FL‐95‐X062‐00 127,381 ‐  Federal Transit Formula Grants 20.507 FL‐95‐X085‐00 2,699 ‐  Federal Transit Formula Grants 20.507 FL‐95‐X086‐00 30,011 ‐  Federal Transit Formula Grants 20.507 FL‐2016‐056‐00 1,390,850              ‐  Federal Transit Formula Grants 20.507 FL‐2017‐035‐00 738,342 ‐  Federal Transit Formula Grants 20.507 FL‐2017‐055‐00 6,300 ‐  Federal Transit Formula Grants 20.507 FL‐2018‐034‐00 1,447,461              ‐  Federal Transit Formula Grants 20.507 FL‐2018‐098‐00 79,977 ‐  Total CFDA 4,090,280              ‐  Bus and Bus Facilities Formula Program 20.526 FL‐34‐0019‐00 89,268 ‐  Bus and Bus Facilities Formula Program 20.526 FL‐34‐0036‐00 347,686 ‐  Bus and Bus Facilities Formula Program 20.526 FL‐2017‐017‐00 35,153 ‐  Total CFDA 472,107 ‐  Total Federal Transit Cluster 4,562,387              ‐  (Continued) 181 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS PASS‐THROUGH ENTITY COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 FEDERAL / STATE AGENCY FEDERAL PROGRAM / STATE PROJECT Indirect Programs: Florida Department of Transportation: Highway Planning and Construction Cluster: Highway Planning and Construction 20.205 G0B56 461,483$                ‐$                              Highway Planning and Construction 20.205 G0870 36,310                    ‐                                Highway Planning and Construction 20.205 G0B79 600,000                  ‐                                Highway Planning and Construction 20.205 G0B81 76,084                    ‐                                Highway Planning and Construction 20.205 G0L51 21,425                    ‐                                Highway Planning and Construction 20.205 G0L52 85,168                    ‐                                Highway Planning and Construction 20.205 G0L53 53,531                    ‐                                Highway Planning and Construction 20.205 G0L54 41,286                    ‐                                Highway Planning and Construction 20.205 G0L55 15,955                    ‐                                Highway Planning and Construction 20.205 G0L59 20,351                    ‐                                Highway Planning and Construction 20.205 G0R30 9,798                      ‐                                Highway Planning and Construction 20.205 G0S32 14,180                    ‐                                Highway Planning and Construction 20.205 G0Y70 130,173                  ‐                                Total CFDA 1,565,744               ‐                                Total Highway Planning and Construction Cluster 1,565,744               ‐                                Metropolitan Transportation Planning and State and  Non‐Metropolitan Planning and Research 20.505 G0581 55,679                    ‐                                Formula Grants for Rural Areas 20.509 G0738 401,521                  ‐                                Transit Services Programs Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0041 266,730                  ‐                                Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0042 10,989                    ‐                                Total CFDA 277,719                  ‐                                Total Transit Services Programs Cluster 277,719                  ‐                                Total U.S. Department of Transportation 7,879,897               ‐                                U.S. Department of the Treasury Direct Programs: Resources and Ecosystems Sustainability, Tourist Opportunities,  and Revived Economies of the Gulf Coast States 21.015 1 RDCGR060041‐01‐00 76,109                    ‐                                Total U.S. Department of the Treasury 76,109                    ‐                                U.S. Election Assistance Commission Indirect Programs: Florida Department of State: Help America Vote Act Requirements Payments 90.401 2017‐2018‐0001‐CLL 31,295                    ‐                                Help America Vote Act Requirements Payments 90.401 2018‐2019‐001‐CLL 3,591                      ‐                                Help America Vote Act Requirements Payments 90.401 2018‐2019‐002‐CLL 15,426                    ‐                                Total U.S. Election Assistance Commission 50,312                    ‐                                U.S. 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 203.17 16,868                    ‐                                Special Programs for the Aging, Title III, Part B, Grants for  Supportive Services and Senior Centers 93.044 OAA 203.18 264,548                  ‐                                Total CFDA 281,416                  ‐                                (Continued) 182 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS PASS‐THROUGH ENTITY COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 FEDERAL / STATE AGENCY FEDERAL PROGRAM / STATE PROJECT Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.17 98,137$                  ‐$                              Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.18 380,410                  ‐                                Total CFDA 478,547                  ‐                                Nutrition Services Incentive Program 93.053 OAA 203.17 12,370                    ‐                                Nutrition Services Incentive Program 93.053 OAA 203.18 29,600                    ‐                                Total CFDA 41,970                    ‐                                Total Aging Cluster 801,933                  ‐                                National Family Caregiver Support, Title III, Part E 93.052 OAA 203.17 22,403                    ‐                                National Family Caregiver Support, Title III, Part E 93.052 OAA 203.18 79,246                    ‐                                Total CFDA 101,649                  ‐                                Florida Department of Revenue: Child Support Enforcement  93.563 COC11 193,007                  ‐                                Total U.S. Department of Health and Human Services 1,096,589               ‐                                Corporation for National and Community Service  Direct Programs: Retired and Senior Volunteer Program 94.002 15SRSFL015 44,779                    ‐                                Retired and Senior Volunteer Program 94.002 18SRSFL005 15,727                    ‐                                Total Corporation for National and Community Service 60,506                    ‐                                Executive Office of the President Direct Programs: High Intensity Drug Trafficking Areas Program 95.001 G17MI0015A 129,604                 ‐                                Total Executive Office of the President 129,604                 ‐                                U.S. 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 Z0001 11,087,017            ‐                                Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters)  97.036 Z0237 5,309,282               ‐                                Total CFDA 16,396,299            ‐                                Emergency Management Performance Grants  97.042 18‐FG‐7A‐09‐21‐01‐190 105,475                 ‐                                Fire Management Assistance Grant 97.046 Z0305 129,743                 ‐                                Homeland Security Grant Program 97.067 17‐DS‐V4‐09‐21‐23‐283 65,881                   ‐                                Homeland Security Grant Program 97.067 18‐DS‐X1‐09‐21‐01‐326 25,383                   ‐                                Homeland Security Grant Program 97.067 18‐DS‐X1‐09‐21‐23‐165 149,085                 ‐                                Homeland Security Grant Program 97.067 19‐DS‐X5‐09‐21‐23‐050 27,187                   ‐                                Total CFDA 267,536                 ‐                                Total U.S. Department of Homeland Security 16,899,053           ‐                                36,398,262$         1,650,703$             (Continued) TOTAL EXPENDITURES OF FEDERAL AWARDS 183 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS PASS‐THROUGH ENTITY COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 FEDERAL / STATE AGENCY FEDERAL PROGRAM / STATE PROJECT Direct Projects: Emergency Management Programs 31.063 18‐BG‐W9‐09‐21‐01‐189 93,334$                  ‐$                              Emergency Management Programs 31.063 19‐BG‐21‐09‐21‐01‐019 16,126                    ‐                                Total Florida Executive Office of the Governor 109,460                  ‐                                Direct Projects: Beach Management Funding Assistance Program 37.003 14CO1 33,986                    ‐                                Statewide Surface Water Restoration and Wastewater Projects 37.039 AB005 37,924                    ‐                                Statewide Surface Water Restoration and Wastewater Projects 37.039 S0859 85,551                    ‐                                Total CSFA 123,475                  ‐                                Total Florida Department of Environmental Protection 157,461                  ‐                                Florida Housing Finance Corporation Direct Projects: 40.901 Collier County FY 2015‐2016 716,278                  ‐                                40.901 Collier County FY 2016‐2017 344,759                  19,350                     40.901 Collier County FY 2017‐2018 162,627                  ‐                                Total CSFA 1,223,664               19,350                     State Housing Initiatives Partnership (SHIP) Program  52.901 Collier County FY 2014‐2015 501,406                  79,995                     Total Florida Housing Finance Corporation 1,725,070               99,345                     Direct Projects: State Aid to Libraries 45.030 15‐ST‐08 54,627                    ‐                                State Aid to Libraries 45.030 16‐ST‐08 100,898                  ‐                                Total Florida Department of State and Secretary of State 155,525                  ‐                                Direct Projects: Aviation Grant Programs 55.004 G0E50 771,102                  ‐                                Aviation Grant Programs 55.004 G0E60 42,709                    ‐                                Aviation Grant Programs 55.004 G0E63 1,842                      ‐                                Aviation Grant Programs 55.004 G0O39 2,630                      ‐                                Aviation Grant Programs 55.004 G0O51 26,063                    ‐                                Total CSFA 844,346                  ‐                                Public Transit Block Grant Program 55.010 AQQ16 32,146                    ‐                                Public Transit Block Grant Program 55.010 G0Q98 800,020                  ‐                                Total CSFA 832,166                  ‐                                Public Transit Service Development Program 55.012 AQQ85 60,201                    ‐                                Public Transit Service Development Program 55.012 ARJ84 63,597                    ‐                                Public Transit Service Development Program 55.012 G0G64 48,277                    ‐                                Total CSFA 172,075                  ‐                                Transportation Regional Incentive Program (TRIP) 55.026 G0B39 440,316                  ‐                                Local Transportation Projects 55 039 G0T26 3,000                      ‐                                Indirect Projects: Commission for the Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G0M34 540,455                  ‐                                Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G0X18 187,657                  ‐                                Total CSFA 728,112                  ‐                                (Continued) Florida Department of State and Secretary of State Florida Department of Transportation Florida Executive Office of the Governor Florida Department of Environmental Protection State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) 184 CFDA / FEDERAL AWARD IDENTIFICATION / CSFA GRANT / CONTRACT  TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS PASS‐THROUGH ENTITY COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 FEDERAL / STATE AGENCY FEDERAL PROGRAM / STATE PROJECT Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G0N23 21,801$                  ‐$                              Total Florida Department of Transportation 3,041,816               ‐                                Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse  Reinvestment Grant Program 60.115 LHZ54 329,658                  308,159                   Total Florida Department of Children and Families 329,658                  308,159                   Florida Department of Health Direct Projects: Emergency Medical Services (EMS) Matching Awards 64.003 M5002 103,249                  ‐                                County Grant Awards 64.005 C5011 1,799                      ‐                                County Grant Awards 64.005 C6011 16,432                    ‐                                Total CSFA 18,231                    ‐                                Total Florida Department of Health 121,480                  ‐                                Indirect Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly 65.001 HCE 203.17 17,009                    ‐                                Home Care for the Elderly 65.001 HCE 203.18 12,993                    ‐                                Total CSFA 30,002                    ‐                                Alzheimer's Respite Services 65.004 ADI 203.17 316,600                  ‐                                Alzheimer's Respite Services 65.004 ADI 203.18 107,383                  ‐                                Total CSFA 423,983                  ‐                                Community Care for the Elderly 65.010 CCE 203.17 698,510                  ‐                                Community Care for the Elderly 65.010 CCE 203.18 196,653                  ‐                                Total CSFA 895,163                  ‐                                Total Florida Department of Elder Affairs 1,349,148               ‐                                Florida Fish and Wildlife Conservation Commission Direct Projects: Bear Resistant Equipment 77.034 Collier County 3,087                      ‐                                Total Florida Fish and Wildlife Conservation Commission 3,087                      ‐                                TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 6,992,705$            407,504$                 Florida Department of Elder Affairs 185 COLLIER COUNTY, FLORIDA  NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL  AWARDS AND STATE FINANCIAL ASSISTANCE  YEAR ENDED SEPTEMBER 30, 2018  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, 2018.  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 minimus cost rate allowed under the Uniform  Guidance.  4. Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters) (97.036) After a  presidentially  declared  disaster,  FEMA  provides  Disaster Grants – Public Assistance  (Presidentially  Declared  Disasters)  (CFDA  97.036)  to  reimburse eligible  costs  associated  with  debris  removal, emergency protective measures and the repair, restoration, reconstruction or replacement of  public facilities or infrastructure damaged or destroyed.  Reimbursements are provided in the form of  cost‐shared grants.  Hurricane Irma (FEMA‐4337‐DR) made landfall in Collier County on September 10,  2017.  In 2018, $7.1 million eligible expenditures were approved that were incurred in the prior year and  are included in the SEFA.    5. Fire Management Assistance Grant (97.046) After a fire declaration, FEMA provides Fire Management Assistant Grants (CFDA 97.046) to reimburse  eligible  costs  associated  with  mitigation,  management,  and  control  of  fires.    Reimbursements  are  provided in the form of cost‐shared grants.  A Fire Management Assistance Declaration was declared in  April 2017 for the Florida 30th Avenue Fire (FM‐5178).  In 2018, $129,743 eligible expenditures were  approved that were incurred in the prior year and are included in the SEFA.    186 COLLIER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2018 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 97.036 Disaster Grants-Public Assistance 20.106 Airport Improvement Program 15.226 Payments in Lieu of Taxes 10.923 Emergency Watershed Protection Program Dollar threshold used to distinguish between Type A and Type B programs: $ 1,088,472 Auditee qualified as low-risk auditee? X yes no 187 COLLIER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2018 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)? X yes none reported 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 state requirements? X yes no Identification of Major State Projects CSFA Number(s) Name of State Project 65.004 Alzheimer’s Respite Services 55.010 Public Transit Block Grant Program 55.001 Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 40.901/52.901 State Housing Initiative Partnership Program Dollar threshold used to distinguish between Type A and Type B state projects: $ 300,000 Section II – Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). 188 COLLIER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2018 Section IV – Findings and Questioned Costs – Major State Projects 2018 – 001: Special Provisions of Rider Eligibility State agency: Florida Department of Transportation State program title: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program CSFA Number: 55.001 Award Period: July 1, 2017 to June 30, 2019 Type of Finding: Compliance; Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per Florida Statutes Chapter 427.0155 (7), F.A.C. 41-2.006 (4)(j), the CTC, in cooperation with the coordinating board and pursuant to criteria developed by the Florida Commission for the Transportation Disadvantaged (FCTD), must establish eligibility guidelines with regard to the recipients of non-sponsored transportation disadvantaged services that are purchased with Transportation Disadvantaged Trust Fund moneys. The program manual states that the two areas for which grant funds may be utilized include non-sponsored trips and capital equipment. A non-sponsored trip is a one-way trip for an eligible individual who meets the definition of transportation disadvantaged and is not sponsored by any other federal, state, or local government program. Condition: Out of 60 sample selections tested, there was one file which could not be produced by the Collier staff due to misplacing the information. As such, we were unable to assess whether or not the related individual had completed and signed a CAT application or verify an ADA condition or TD condition and therefore could not determine if this applicant was an eligible individual for a non-sponsored trip during the audit period. Questioned costs: $4.00 for a daily bus pass. Context: Out of 60 sample selections tested, there was one file which could not be produced by the Collier staff due to misplacing the information. This missing file was not the same missing file noted in a monitoring report from the grantor. Cause: CAT was unable to locate a current application or income verification. They believe it was misplaced as the individual selection appeared to be in the Match Route Software with an October 31, 2018 expiration date. Effect: Noncompliance with Florida Statutes Chapter 427.0155 (7). Repeat Finding: No. Recommendation: We recommend that all applications for individuals accepted as eligible for the non- sponsored rides be maintained either electronically or physically in order to support the eligible assessment. Views of responsible officials: There is no disagreement with the audit finding. 189 THIS PAGE INTENTIONALLY LEFT BLANK 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, 2018, and have issued our report thereon dated February 15, 2019. 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 February 15, 2019, 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 financial audit report. There were no findings and recommendations reported in the preceding 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. 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. Special District Component Units Section 10.554(1)(i)5.c., 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. 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 February 15, 2019 2 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, 2018. 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, 2018. 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 February 15, 2019 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, 2018.      Table 1.  Calculation of Collier County General Governmental Debt Ratio    Table 2.  Calculation of Collier County Enterprise Debt Ratios        THIS PAGE INTENTIONALLY LEFT BLANK Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes 336,629,501$          Governmental Impact Fees 45,682,190              Half Cent Sales Tax 44,092,859              Developmental Fees 30,989,353              State Revenue Sharing 11,673,572              5th Cent Local Option Gas Tax 6,213,903                 6th Cent Local Option Gas Tax 8,200,467                 Constitutional Gas Tax 4,553,292                 Seventh Cent Gas Tax 2,017,121                 Ninth Cent Gas Tax  1,725,261                 Parks and Recreation Fees 6,439,112                 Tourist Development Tax 27,962,471              Court Facilities Fees 827,051  Communications Services Tax 4,498,036                 Total bondable revenues 531,504,189$          Fiscal 2018 governmental debt service requirements: Series 2012 Gas Tax Bonds Principal:2,970,000$              Interest:898,150  Series 2014 Gas Tax Bonds Principal:7,540,000                 Interest:1,839,044                 Series 2010 Special Obligation Bonds Principal:2,030,000                 Interest:1,112,281                 Series 2010B Special Obligation Bonds Principal:2,230,000                 Interest:479,250  Series 2011 Special Obligation Bonds Principal:5,885,000                 Interest:2,794,631                 Series 2013 Special Obligation Bonds Principal:‐   Interest:2,846,975                 Series 2017 Special Obligation Bond Principal:113,000  Interest:686,622  Commercial Paper Program Principal:100,000  Interest:133,296  Total fiscal 2018 governmental debt service requirements 31,658,249$            Governmental debt ratio of fiscal year 2018 debt service requirements  to total bondable revenues (13.0% maximum allowed by County policy) 6.0% 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, 2018  Collier County Water and Sewer District: Total Sales Revenues 142,618,486$                   Miscellaneous Revenues 3,138,879       Total Operating Revenues 145,757,365  Non‐Operating Revenues 10,089,846      Gross Revenues 155,847,211  Less: Operation and Maintenance  Expense (excluding Depreciation and Amortization)90,511,063  Net Revenues Available for Debt Service (1)65,336,148$  Total Fiscal Year 2018 Debt Service on Bonds (2)8,577,955$  Net Revenues Debt Service Coverage on Bonded Debt (100% Required) ‐ (1/2)762% Other Pledged Funds:  System Development Fees (Impact Fees) 14,087,562$  Total Pledged Funds Available for Debt Service (3)79,423,710$  Total Fiscal Year 2018 Debt Service on Bonds (4)8,577,955$  Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) ‐ (3/4)926% Total Pledged Funds Available for Debt   Service After Payment of Bonds (5) 70,845,755$  Total Fiscal Year 2018 Debt Service on  Subordinated Indebtedness (6)11,148,028$  Calculated Coverage on Subordinated Indebtedness ‐ (5/6)636% Total Pledged Funds Available for System  Purposes 59,697,727$  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, 2018 2 Summary Debt Statement for Fiscal Year 2018 General Governmental Debt: While the Florida State Constitution and the Florida Statutes set no legal debt limit at the local level, prudent fiscal management requires a self-imposed level of restraint. Collier County’s Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this threshold. 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 6.5%, for the fiscal year ended September 30, 2017, to 6.0% (see Table 1) for the fiscal year ended September 30, 2018, or less than half of the allowable ratio. The decrease in the debt ratio for FY-2018 is primarily the result of 10.2% growth in overall bondable revenues. Collections in governmental impact fees (non-water and wastewater) increased by 30.2% over FY-2017 primarily due to the overall increase in recent development activity. In keeping with the governmental impact fee trend, developmental fees, including permit and review fees, increased by 21.1% over FY-2017. In addition, Tourist Development Tax collections were 27.3% greater than FY-2017, largely due to the addition of a 5th Cent to the Tourist Development Tax in September of 2017. Recent debt restructurings coupled with the growth of general governmental revenues have produced several consecutive years of decreases in the general governmental debt ratio, as shown in the chart below:  11.1%10.7% 9.4% 8.1%7.6% 7.0%6.5% 6.0% 13.0% 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 FY‐2018 Comparison of Governmental Debt Ratio to  Maximum Allowable Governmental Debt Ratio Collier County, Florida (FY 11 ‐ FY18) Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 3 Summary of Existing and Newly Issued General Government Debt Existing General Government Debt In 2012, Collier County issued $38,680,000 in Gas Tax Refunding Revenue Bonds with interest rates ranging from 3.00% to 5.00% and final maturity on June 1, 2023. In 2014, Collier County issued the $89,780,000 Gas Tax Refunding Revenue Bond, Series 2014 (Bank Term Loan) with an interest rate of 2.33% and final maturity on June 1, 2025. The pledge for the payment of all the Gas Tax Revenue Bonds is combined gas tax revenues. Fiscal year 2018 gas tax revenues covered the current year debt service payments on all outstanding Gas Tax Revenue Bonds at 171%. New General Government Debt Collier County issued the Series 2017 Special Obligation Refunding Revenue Note in the par amount of $43,713,000 on December 28, 2017. These bonds advance refunded 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. Subsequent to issuance of this debt, one of the provisions of the Tax Cuts and Jobs Act of 2017 eliminated tax-exempt advanced refunding bonds, effective December 31, 2017. Security for the County’s Special Obligation Revenue Bonds is 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’. On April 30, 2018, Collier County issued a $12,000,000 variable rate commercial paper loan through the Florida Local Government Finance Commission’s Pooled Commercial Paper Program to acquire land for the construction of the County’s regional tournament caliber amateur sports complex. Collier County issued $62,965,000 in Series 2018 Tourist Development Tax Revenue Bonds on October 24, 2018 to pay the costs to develop, acquire, construct, and equip a regional tournament caliber amateur sports complex. A lien and pledge upon the Tourist Development Tax provides security for the Tourist Development Tax Bonds. The Board of County Commissioners instituted a fifth penny of tourist tax revenue to provide the financial resources required to service the debt on the stadium complex. 4 Collier County Governmental Bonded Debt Ratings Table: Current Ratings (as of 2/12/2019) Fitch Moody’s Standard & Poor’s Gas Tax Revenue Bonds AA- A2 A+ Special Obligation Bonds AA Aa2 AAA Tourist Development Tax Bonds* AA+ Aa3 - * Standard & Poor’s does not currently rate the Tourist Development Tax Bonds. 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 Moody’s Investors Service rating of Aa is indicative of a high quality investment grade instrument with very low credit risk, whereas an A rating indicative 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. 5 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 762% and total pledged funds coverage on bonded debt was 926% for FY-2018, up from 568% and 753%, respectively, for FY-2017. Bonded debt coverages increased primarily due to a 7.6% decrease in operation and maintenance costs when compared to FY-2017, which included substantial costs related to Hurricane Irma. The District’s calculated coverage on subordinated debt, all in the form of a bank loan with Synovus Bank, d.b.a. Florida Community Bank, increased from 460% to 636% (see Table 2) reflecting an increase in total pledged funds available for debt service. The total pledged funds coverage required by the subordinated loan agreement is equivalent to 115% of total subordinated debt service in each fiscal year, after payment of bonded debt service. User rates for potable water, wastewater and irrigation water, as well as miscellaneous revenues, offset system operating, maintenance, debt service and capital costs. The District’s water and sewer user rates increased by 2.9%, effective 10/01/2017. In July of 2018 the District’s governing board adopted rate increases of 2.8% effective October 1, 2018; 2.9% effective October 1, 2019; and, 2.9% effective October 1, 2020, for fiscal years 2019, 2020 and 2021, respectively. Over recent years’ the District has operated on a pay as you go basis, avoided borrowing and maintained financial stability. The District’s current focus is the optimization of resources, risk based prioritization of capital projects and infrastructure expansion in the northeast service area to serve future residents and businesses. On February 28, 2018, the Collier County issued $35,965,000 in Series 2018 Water and Sewer Revenue Bonds for purposes of acquiring the Golden Gate Utility 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. Collier County Enterprise Debt Ratings Table: Current Ratings (as of 2/12/2019) 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 Moody’s Investors Service rating of Aa is indicative 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. 6     Collier County, Florida Clerk of the Circuit Court Financial Statements and Supplemental Reports Year Ended September 30, 2018 Collier County, Florida Clerk of the Circuit Court Financial Statements and Other Reports Year Ended September 30, 2018 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 – All Agency Funds ...................................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  1 INDEPENDENT AUDITORS’ REPORT Honorable Crystal K. Kinzel 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, 2018, 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 Crystal K. Kinzel 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 of the Clerk as of September 30, 2018, 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, 2018, 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 Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk’s basic 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 basic 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 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 combining statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Honorable Crystal K. Kinzel 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 3, 2019, 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 results 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 Clerk’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 3, 2019 Collier County, Florida Clerk of the Circuit Court   Balance Sheet – Governmental Funds September 30, 2018 See accompanying Notes to Financial Statements. 4 OtherTotal CourtSpecial Governmental General Services Revenue Funds Assets Cash and cash equivalents 2,312,630$ 1,553,666$ 4,504,448$ 8,370,744$ Accounts receivable 67,301 46,985 - 114,286 Allowance for doubtful accounts (54,255) (46,985) - (101,240) Due from Collier County, Florida Board of County Commissioners 5,516 - - 5,516 Due from other governments 9,918 34,316 - 44,234 Prepaid expenses - - 10,937 10,937 Total assets 2,341,110$ 1,587,982$ 4,515,385$ 8,444,477$ Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities 909,199$ 320,765$ 42,705$ 1,272,669$ Due to Collier County, Florida Board of County Commissioners 623,430 - - 623,430 Due to other governments - 1,267,217 - 1,267,217 Deposits 808,481 - - 808,481 Total liabilities 2,341,110 1,587,982 42,705 3,971,797 Fund balance: Nonspendable - - 10,937 10,937 Restricted - - 4,461,743 4,461,743 Total fund balance - - 4,472,680 4,472,680 Total liabilities and fund balance 2,341,110$ 1,587,982$ 4,515,385$ 8,444,477$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2018 See accompanying Notes to Financial Statements. 5 Other Total CourtSpecial Governmental General Services Revenue Funds Revenues: Intergovernmental -$ 402,809$ -$ 402,809$ Charges for services 3,418,183 6,827,098 1,140,307 11,385,588 Miscellaneous 595 - - 595 Interest income 66,775 44,246 39,332 150,353 Total revenues 3,485,553 7,274,153 1,179,639 11,939,345 Expenditures: General government: Personal services 7,442,409 4,968,094 982,364 13,392,867 Operating 1,858,487 554,060 - 2,412,547 Capital outlay 386,830 - - 386,830 Total expenditures 9,687,726 5,522,154 982,364 16,192,244 Excess (deficiency) of revenues over (under) expenditures (6,202,173) 1,751,999 197,275 (4,252,899) Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 6,823,000 - - 6,823,000 Transfers out: Distribution of excess fees to State of Florida - (1,768,419) - (1,768,419) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (620,827) - - (620,827) Total other financing sources (uses) 6,202,173 (1,768,419) - 4,433,754 Net change in fund balance - (16,420) 197,275 180,855 Fund balances – beginning of year - 16,420 4,275,405 4,291,825 Fund balances – end of year -$ -$ 4,472,680$ 4,472,680$ 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, 2018 See accompanying Notes to Financial Statements. 6 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 2,933,400$ 2,993,400$ 3,418,183$ 424,783$ Miscellaneous - - 595 595 Interest income 15,000 15,000 66,775 51,775 Total revenues 2,948,400 3,008,400 3,485,553 477,153 Expenditures: General government: Personal services 7,940,600 7,470,000 7,442,409 27,591 Operating expenditures 1,625,500 1,973,500 1,858,487 115,013 Capital outlay 205,300 387,900 386,830 1,070 Total expenditures 9,771,400 9,831,400 9,687,726 143,674 Excess (deficiency) of revenues over (under) expenditures (6,823,000) (6,823,000) (6,202,173) 620,827 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 6,823,000 6,823,000 6,823,000 - Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners - - (620,827) (620,827) Total other financing sources (uses) 6,823,000 6,823,000 6,202,173 (620,827) 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, 2018 See accompanying Notes to Financial Statements. 7 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental 458,456$ 458,456$ 402,809$ (55,647)$ Charges for services 5,949,785 5,949,785 6,827,098 877,313 Interest income 10,000 10,000 44,246 34,246 Total revenues 6,418,241 6,418,241 7,274,153 855,912 Expenditures: General government: Personal services 6,010,085 5,670,185 4,968,094 702,091 Operating expenditures 408,156 748,056 554,060 193,996 Total expenditures 6,418,241 6,418,241 5,522,154 896,087 Excess of revenues over expenditures - - 1,751,999 1,751,999 Other financing (uses): Transfers out: Distribution of excess fees to State of Florida - - (1,768,419) (1,768,419) Total other financing (uses) - - (1,768,419) (1,768,419) Net change in fund balance - - (16,420) (16,420) Fund balance – beginning of year - - 16,420 16,420 Fund balance – end of year -$ -$ -$ -$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Other Special Revenue Fund Year Ended September 30, 2018 See accompanying Notes to Financial Statements. 8 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 1,170,000$ 1,170,000$ 1,140,307$ (29,693)$ Interest income 13,100 13,100 39,332 26,232 Total revenues 1,183,100 1,183,100 1,179,639 (3,461) Expenditures: General government: Personal services 1,271,900 1,271,900 982,364 289,536 Operating expenditures 1,249,200 1,329,200 - 1,329,200 Capital outlay 1,656,300 1,576,899 - 1,576,899 Total expenditures 4,177,400 4,177,999 982,364 3,195,635 Net change in fund balance (2,994,300) (2,994,899) 197,275 3,192,174 Fund balance – beginning of year 3,085,480 3,644,557 4,275,405 630,848 Fund balance – end of year 91,180$ 649,658$ 4,472,680$ 3,823,022$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Position Agency Funds September 30, 2018 See accompanying Notes to Financial Statements. 9 Assets Cash and cash equivalents 22,971,495$ Total assets 22,971,495$ Liabilities Due to the Collier County, Florida Board of County Commissioners 295,390$ Due to other governments 799,880 Deposits 21,876,225 Total liabilities 22,971,495$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2018 10 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Florida. The Clerk’s Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and agency funds of the Clerk’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by: fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk’s general fund. Court-related operations are funded by the collection of fines, fees costs and service charges, and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. The State transitioned the Clerk in July, 2013 to be self-funded from fees and fines. Pursuant to Section 28.37, Florida Statute, any surplus revenues over expenditures will be returned to the State. 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, 2018 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 Sections 28.35 and 28.37(5), 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). 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, 2018 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, 2018 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, 2018 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 fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk’s annual budget. The Clerk prepares and approves the budget for the Clerk’s non-court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ending September 30, 2018, the Clerk had sufficient revenues to meet expenditures. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2018 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, 2018, 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 7,900$ N/A Demand deposits N/A 31,334,339 N/A Total cash and cash equivalents 31,342,239$ 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, 2018 16 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2018 are reported as $8,370,744 and $22,971,495 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2018, 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, 2018 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 $66,775 is reported in the general fund for the year ended September 30, 2018, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, Transfer- September 30, 2017 Additions Deductions out 2018 Capital assets depreciated: Machinery and equipment 7,052,760$ 386,830$ (13,286)$ (984,955)$ 6,441,349$ Less accumulated depreciation (5,399,387) (731,618) 13,286 974,463 (5,143,256) Total capital assets depreciated 1,653,373 (344,788) - (10,492) 1,298,093 Total capital assets, net 1,653,373$ (344,788)$ -$ (10,492)$ 1,298,093$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2018 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, 2017 Additions Deletions 2018 Accrued compensated absences 1,842,997$ 869,452$ (895,033)$ 1,817,416$ Of these liabilities, $890,534 is expected to be paid during the fiscal year ending September 30, 2019. 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, 2018 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, 2018 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, 2018 21 7. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2018, 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 the 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, 2018 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, 2018, 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, 2018, 2017, and 2016 were $877,162, $802,245, and $750,024, 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, 2018 23 8. Related Party Transactions At September 30, 2018, the Clerk had a receivable due from the Board totaling $5,516. The Board provided funding for the Clerk in the amount of $6,823,000. The Supervisor of Elections provided funding in the amount of a $47,000 fee for financial services performed by the Clerk. At September 30, 2018, the Clerk had a payable due to the Board of $918,820, comprised as follows: Distribution of excess fees 620,827$ Amounts due for various services 2,603 Agency funds due 295,390 Total due to Board of County Commissioners 918,820$ 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, 2018, the Clerk was charged $2,288,607 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 $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2018 24 10. Other Postemployment Healthcare Benefits (OPEB) Plan In accordance with Section 112.0801, Florida Statutes, the Clerk participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a “party in interest” in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2018, the Clerk was involved in approximately 111,826 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in 3,237 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are 8 active actions for foreclosure of property in which the Clerk has been a named defendant. The Clerk has no other pending litigation. Collier County, Florida Clerk of the Circuit Court Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2018 25 Jury and Clerk’s Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents 4,719,911$ 18,240,163$ 11,421$ 22,971,495$ Total assets 4,719,911$ 18,240,163$ 11,421$ 22,971,495$ Liabilities Due to Collier County, Florida Board of County Commissioners 295,390$ -$ -$ 295,390$ Due to other governments 788,459 - 11,421 799,880 Deposits 3,636,062 18,240,163 - 21,876,225 Total liabilities 4,719,911$ 18,240,163$ 11,421$ 22,971,495$   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 Crystal K. Kinzel 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, 2018, 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 3, 2019. 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 Crystal K. Kinzel 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 results 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 3, 2019   28 MANAGEMENT LETTER Honorable Crystal K. Kinzel 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, 2018 and have issued our report thereon dated January 3, 2019. 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 3, 2019, 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 Crystal K. Kinzel 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 3, 2019 30 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court’s (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding 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, 2018. Management of the Clerk is responsible for the Clerk’s compliance with the specified requirements. Our responsibility is to express an opinion on the Clerk’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 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, 2018. 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 3, 2019   Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2018 Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2018 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 (Non-GAAP) 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 ..................................................................................................25   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, 2018, 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, 2018, 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, 2018, 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 dated January 21, 2019 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 21, 2019 Collier County, Florida Property Appraiser Balance Sheet – General Fund September 30, 2018 See accompanying Notes to Financial Statements. 3 Assets Cash and cash equivalents 1,345,908$ Total assets 1,345,908$ Liabilities and fund balance Liabilities: Accounts payable and accrued expenses 64,000$ Due to Collier County, Florida Board of County Commissioners 724,199 Due to other taxing districts 557,709 Total liabilities 1,345,908 Fund balance - Total liabilities and fund balance 1,345,908$     Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2018 See accompanying Notes to Financial Statements. 4 Revenues: Commissions and fees 8,467,278$ Interest 7,253 Miscellaneous 9,764 Total revenues 8,484,295 Expenditures: General government: Personal services 5,625,749 Operating 1,530,825 Capital outlay 45,813 Total expenditures 7,202,387 Excess of revenues over expenditures 1,281,908 Other financing uses: Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (724,199) Distribution of excess fees and commissions to other governmental agencies (557,709) Total other financing uses (1,281,908) 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 (Non-GAAP) and Actual General Fund Year Ended September 30, 2018 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 7,382,669$ 7,500,018$ 7,500,018$ -$ Interest Revenue - - 7,253 7,253 Miscellaneous - - 9,764 9,764 Total revenues 7,382,669 7,500,018 7,517,035 17,017 Expenditures: General government: Personal services 5,691,269 5,808,618 5,625,749 182,869 Operating 1,666,400 1,666,400 1,518,582 147,818 Capital outlay 25,000 25,000 - 25,000 Total expenditures 7,382,669 7,500,018 7,144,331 355,687 Excess of revenues over expenditures - - 372,704 372,704 Other financing uses: Distribution of excess fees to Collier County, Florida Board of County Commissioners - - (335,950) (335,950) Distribution of excess commissions and fees to other governmental agencies - - (36,754) (36,754) Total other financing uses - - (372,704) (372,704) 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, 2018 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, 2018 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, 2018 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, 2018 9 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser’s annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser’s total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. The Property Appraiser’s budget is prepared under a budgetary basis of accounting that differs from generally accepted accounting principles (GAAP). Certain revenues received from non-ad valorem commissions and other sources are not recognized under the budgetary basis of accounting; however, the revenues have been recognized under GAAP. The Property Appraiser’s budget is prepared under a budgetary basis of accounting that differs from generally accepted accounting principles (GAAP). Certain revenues received from non-ad valorem commissions and expenditures of such revenue are not recognized under the budgetary basis of accounting; however, the revenues and related expenditures have been recognized under GAAP. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2018 10 2. Budgetary Process (continued) A reconciliation of revenues, expenditures, and other financing uses on a budgetary basis to a GAAP is as follows: Total revenues - budgetary basis 7,517,035$ Revenues not budgeted: Non-ad valorem commissions are not budgeted 967,260 Total revenues - GAAP basis 8,484,295$ Total expenditures - budgetary basis 7,144,331$ Expenditures not budgeted: Non-ad valorem related expenditures are not budgeted 58,056 Total expenditures - GAAP basis 7,202,387$ Total other financing uses - budgetary basis (372,704)$ Other financing uses not budgeted: Distribution of non-ad valorem excess fees are not budgeted (909,204) Total other financing uses - GAAP basis (1,281,908)$ 3. Cash At September 30, 2018, the carrying value of the Property Appraiser’s cash was as follows: Carrying Value Cash on hand 125$ Demand deposits 1,345,783 Total cash 1,345,908$ Type   Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2018 11 3. Cash (continued) Custodial Credit Risk At September 30, 2018, the Property Appraiser’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Property Appraiser’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk.   Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2018 12 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at 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. The following is a summary of changes in capital assets for the year ended September 30, 2018: October 1, September 30, 2017 Additions Deductions 2018 Improvements other than buildings 15,332$ -$ -$ 15,332$ Machinery and equipment 1,513,629 45,813 - 1,559,442 Total capital assets 1,528,961 45,813 - 1,574,774 Less: accumulated depreciation (1,301,167) (79,353) - (1,380,520) Total capital assets, net 227,794$ (33,540)$ -$ 194,254$ 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, 2017 Increase Decrease 2018 Accrued compensated absences 331,159$ 343,645$ (323,857)$ 350,947$ Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2018 13 5. Long-Term Liabilities (continued) Of these liabilities, approximately $150,000 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 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, 2018 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, 2018 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, 2018 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, 2018, 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, 2018 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, 2018, 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, 2018 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, 2018, 2017, and 2016, were $472,786, $409,812, and $451,635, 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, 2018, the Board paid fees to the Property Appraiser that amounted to $7,181,252. At September 30, 2018, the Property Appraiser had a payable due to the Board as follows: Distribution of excess commissions and fees 724,199$ Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2018 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, 2018, the Property Appraiser was charged $1,062,126 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 $450,000 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.   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, 2018, 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 21, 2019. 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 and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify a deficiency in internal control described below as 2018-001 that we consider to be a material weakness. 2018-001 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 Abe Skinner Property Appraiser 21 Condition: Management did not make journal entries required for the financial statements to be correctly stated. These entries were to record a payable for non-ad valorem excess fees distributed after year-end and to correct fund balance. Cause: Management neglected to make these journal entries. Effect: The financial statements were misstated. Recommendation: We recommend that detailed review of the financial statements be performed on a monthly basis. Management’s Response: Management will ensure that a thorough review of the financial statements occurs and that all necessary journal entries are recorded. Property Appraiser’s Response to Findings The Property Appraiser’s response to the findings identified in our audit is described above. The Property Appraiser’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. 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 21, 2019 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, 2018, and have issued our report thereon dated January 21, 2019. 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 21, 2019 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 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 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 our audit, we made recommendations as listed in the following schedule of findings and response. The Property Appraiser’s response to the finding identified in our audit is described in the accompanying schedule of findings and response. The Property Appraiser’s response was not subjected to auditing procedures applied in the audit and, accordingly, we express no opinion on the response. 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 21, 2019 COLLIER COUNTY, FLORIDA PROPERTY APPRAISER SCHEDULE OF FINDINGS AND RESPONSE SEPTEMBER 30, 2018     24 2018-002 Allocation of non-ad valorem excess fees Criteria: The allocation of non-ad valorem excess fees remitted to the non-ad valorem assessment districts should be based on the percentage of non-ad valorem fees collected from each district as compared to the total non-ad valorem assessments fees collected. Condition: During the audit, we noted that the allocation of non-ad valorem excess fees calculated for each of the non-ad valorem assessment districts was incorrect. Cause: An incorrect tax roll recapitulation was used to determine the allocation of excess fees. Effect: This error resulted in the non-ad valorem assessment districts receiving an incorrect amount of excess fees. Recommendation: We recommend that the calculation be thoroughly reviewed prior to the journal entry being made and the credit given to the non-ad valorem assessment districts. Management’s response: The allocation of the non-ad valorem excess fees will be corrected for next year’s billing using the appropriate percentages. 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, 2018. 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, 2018. 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 21, 2019   Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2018 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2018 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 Ratios ...............................................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 Schedule of Findings and Responses .............................................................................................42 Management Letter ........................................................................................................................44 Independent Accountants’ Report ..................................................................................................46 Independent Accountants’ Report on Applying Agreed-Upon Procedures ...................................47   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, 2018, 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, 2018, 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, 2018, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Changes in Total OPEB Liability and Related Ratios, 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 17, 2019 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 17, 2019 Collier County, Florida Sheriff Balance Sheet – Governmental Funds September 30, 2018 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 11,467,710$ 774,762$ 2,237,555$ 690,459$ –$ 15,170,486$ Accounts receivable 61,225 – – – – 61,225 Other receivable 5,100 – 21,053 – – 26,153 Due from other funds 226,134 – 61,819 – – 287,953 Due from other governments 5,533,433 134,428 – – – 5,667,861 Due from Collier County, Florida Board of– County Commissioners 35,284 41,451 – – 238,856 315,591 Total assets 17,328,886$ 950,641$ 2,320,427$ 690,459$ 238,856$ 21,529,269$ Liabilities and fund balancesLiabilities:Accounts payable 2,548,894$ 5,140$ 9,929$ 8,300$ 40,874$ 2,613,137$ Accrued expenses 8,486,226 33,456 – – 19,164 8,538,846 Due to other funds 500,000 – 35,896 – 178,818 714,714 Due to Collier County, Florida Board of– County Commissioners 4,969,930 – – – – 4,969,930 Due to other governments 823,836 – – – – 823,836 Unearned revenue– 4,998 – – – 4,998 Total liabilities 17,328,886 43,594 45,825 8,300 238,856 17,665,461 Fund balances:Restricted– 907,047 2,274,602 682,159 – 3,863,808 Total liabilities and fund balances 17,328,886$ 950,641$ 2,320,427$ 690,459$ 238,856$ 21,529,269$ Collier County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2018 See accompanying Notes to Financial Statements. 5 Grant Other Non-MajorSpecial Prisoner Federal Equitable Special RevenueGeneral Revenue Fund Welfare SharingFunds TotalRevenues:Grant revenue 5,446,182$ 861,814$ –$ –$ –$ 6,307,996$ Charges for services 1,661,195 – 793,986 – – 2,455,181 Other revenue– – – 5,928 – 5,928 Total revenues 7,107,377 861,814 793,986 5,928 – 8,769,105 Expenditures:General government:Personal services 4,355,279 – – – – 4,355,279 Operating expenditures 71,546 – – – – 71,546 Capital outlay3,787 – – – – 3,787 Public safety:– Personal services 135,904,297 529,656 247,476 – 829,344 137,510,773 Operating expenditures 25,347,273 192,463 144,607 53,367 1,787,563 27,525,273 Capital outlay12,099,412 185,824 – – 98,305 12,383,541 Debt Service - principal 55,478 – – – – 55,478 Debt Service - interest 7,707 – – – – 7,707 Total expenditures 177,844,779 907,943 392,083 53,367 2,715,212 181,913,384 Excess (deficiency) of revenues over (under) expenditures (170,737,402) (46,129) 401,903 (47,439) (2,715,212) (173,144,279) Other financing sources (uses):Transfers in:Collier County, Florida Board of County Commissioners appropriations 174,720,200 – – – – 174,720,200 Collier County, Florida Board of County Commissioners 967,364 – – – 2,715,212 3,682,576 Transfers out:Distribution of excess appropriations to Collier County,Florida Board of County Commissioners(4,950,162) – – – – (4,950,162) Total other financing sources 170,737,402 – – – 2,715,212 173,452,614 Net change in fund balances– (46,129) 401,903 (47,439) – 308,335 Fund balances – beginning of year– 953,176 1,872,699 729,598 – 3,555,473 Fund balances – end of year–$ 907,047$ 2,274,602$ 682,159$ –$ 3,863,808$ Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2018 See accompanying Notes to Financial Statements. 6 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Grant Revenue –$ –$ –$ –$ Charges for services – 1,826,000 1,661,195 (164,805) Total revenues – 1,826,000 1,661,195 (164,805) Expenditures: General government: Personal services 4,137,400 4,137,400 4,355,279 (217,879) Operating expenditures 177,700 177,700 71,546 106,154 Capital outlay – – 3,787 (3,787) Public safety: Personal services 137,171,100 138,904,100 135,904,297 2,999,803 Operating expenditures 26,217,200 26,310,200 24,522,912 1,787,288 Capital outlay 7,016,800 7,016,800 11,195,759 (4,178,959) Total expenditures 174,720,200 176,546,200 176,053,580 492,620 Excess of expenditures over revenues (174,720,200) (174,720,200) (174,392,385) 327,815 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 174,720,200 174,720,200 174,720,200 – Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners – – (327,815) (327,815) Total other financing sources (uses)174,720,200 174,720,200 174,392,385 (327,815) Net change in fund balance – – – – Fund balance – beginning of year – – – – Fund balance – end of year –$ –$ –$ –$ Total revenues - budgetary basis 1,661,195$ Revenues not budgeted: Revenues for disaster cost reimbursements that are not budgeted 5,446,182 Total revenues - GAAP basis 7,107,377$ Total expenditures - budgetary basis 176,053,580$ Expenditures not budgeted: Expenditures for disaster mutual aid that are not budgeted 823,835 Expenditures for multi-period projects that are not budgeted 967,364 Total expenditure - GAAP basis 177,844,779$ Total other financing sources (uses) - budgetary basis 174,392,385$ Transfers in from Collier County Florida Board of County Commissioners (non-appropriations)967,364 Transfers out to Collier County Florida Board of County Commissioners (disaster cost reimbursements)(4,622,347) Total other financing sources (uses) - GAAP basis 170,737,402$ Collier County, Florida Sheriff Statement of Net Position – Internal Service Fund September 30, 2018 See accompanying Notes to Financial Statements. 7 Assets: Cash and cash equivalents 2,004,225$ Investments 8,098,342 Due from stop loss 2,407 Due from other funds 500,000 Interest receivable 21,619 Total assets 10,626,593 Liabilities: Self insurance claims payable 2,884,000 Deferred revenue 83,595 Total liabilities 2,967,595 Net position: Unrestricted 7,658,998 Total net position 7,658,998$ Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund Year Ended September 30, 2018 See accompanying Notes to Financial Statements. 8 Operating revenues: 25,544,474$ Operating expenses: 23,876,520 1,242,669 45,803 25,164,992 379,482 Nonoperating revenues: 104,696 Realized gain on sale of investments 5,136 Decrease in fair value of investments (16,860) Total nonoperating revenues 92,972 472,454 Net position – beginning of year 7,186,544 Net position – end of year 7,658,998$ Charges for services 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 Collier County, Florida Sheriff Statement of Cash Flows – Internal Service Fund Year Ended September 30, 2018 See accompanying Notes to Financial Statements. 9 Operating activities (23,652,520)$ (1,242,669) (45,803) 24,000,000 1,126,981 185,989 Investing activities 94,428 Purchase of securities (5,941,757) Proceeds from sales of securities 5,841,691 (5,638) 180,351 Cash, cash equivalents, and investments – beginning of year 1,823,874 Cash, cash equivalents, and investments – end of year 2,004,225$ Reconciliation of operating loss to net cash 379,482$ (1,088) (500,000) 224,000 83,595 185,989$ 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 Increase in due to/from other funds Increase in deferred revenue 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: Increase in other receivables Increase in self-insurance claims payable Collier County, Florida Sheriff Statement of Fiduciary Net Position – Agency Funds September 30, 2018 See accompanying Notes to Financial Statements. 10 Cash and cash equivalents 634,937$ Due from individuals and businesses 26,778 661,715$ Due to other funds 73,239$ Due to Collier County, Florida 20,777 Due to individuals and businesses 567,699 661,715$ Liabilities: Board of County Commissioners Total liabilities Assets: Total assets Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018 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, 2018 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, 2018 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, 2018 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, 2018 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, 2018, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 24.1% of Florida PRIME’s portfolio at September 30, 2018. 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, 2018 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, 2018, 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, 2018 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, 2018. 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, 2018 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. This space intentionally left blank Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018 19 3. Cash, Cash Equivalents and Investments At September 30, 2018, 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 33,126$ N/A Demand deposits N/A 17,007,651 N/A Local government surplus funds trust fund: Florida Prime N/A 768,870 AAAm Total cash and cash equivalents 17,809,647 Money Market N/A 67,692 Not rated Federal Farm Credit Bank 11/19/2018 249,565 AA+ Federal Home Loan Bank 8/28/2019 247,652 AA+ Federal Home Loan Bank 10/19/2020 490,970 AA+ Federal Home Loan Bank 2/12/2021 247,930 AA+ Federal Home Loan Bank 12/13/2019 492,130 AA+ Federal Farm Credit Bank 7/12/2019 494,375 AA+ Federal Farm Credit Bank 8/16/2021 143,923 AA+ Federal Farm Credit Bank 2/20/2020 494,650 AA+ Federal Home Loan Mortgage Corp. 5/25/2021 537,312 AA+ Federal Home Loan Mortgage Corp. 9/29/2020 246,038 AA+ Federal National Mortgage Association 2/26/2019 497,900 AA+ Federal National Mortgage Association 2/5/2020 487,444 AA+ Treasury Note 10/31/2019 246,845 AA+ Treasury Note 9/30/2019 485,975 AA+ Treasury Note 2/15/2019 432,399 AA+ Treasury Note 9/30/2018 499,775 AA+ Treasury Note 12/31/2018 498,940 AA+ Treasury Note 3/31/2019 497,070 AA+ Treasury Note 10/31/2020 244,523 AA+ Treasury Note 6/30/2019 495,235 AA+ Total Investments 8,098,343 Total cash, cash equivalents and investments 25,907,990$ *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, 2018 20 3. Cash, Cash Equivalents and Investments (continued) The total cash, cash equivalent and investments balances at September 30, 2018, were as follows: General fund 11,467,710$ Grant special revenue fund 774,762 Prisoner welfare fund 2,237,555 Federal equitable sharing fund 690,459 Other non-major special revenue funds – Internal service fund 10,102,567 Agency funds 634,937 Total 25,907,990$ Custodial Credit Risk At September 30, 2018, 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, 2018 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, 2018, the Sheriff had $768,870 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, 2018: % of Portfolio Money Market 1% Treasury Note 42% Federal Home Loan Mortgage Corp. 10% Federal National Mortgage Association 12% Federal Farm Credit Bank 17% Federal Home Loan Bank 18% Total 100% Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018 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, 2018:  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 recorded at acquisition 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. In FY18 the Sheriff implemented a change in accounting principal. The change was from a depreciation method of recording a full year of depreciation in the year the asset was placed in service to recording depreciation monthly for the months the asset is in service. As a result, accumulated depreciation as of October 1, 2017, decreased by $4,260,196 and the restatement is reflected in the table below. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018 23 4. Capital Assets (continued) The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, 2017 Deductions/ September 30, as restated Additions Reclassifications 2018 Governmental Activities Capital assets not depreciated: Construction in Progress 7,416,212$ 1,191,981$ (4,675,836)$ 3,932,357$ Total capital assets not depreciated 7,416,212 1,191,981 (4,675,836) 3,932,357 Capital assets depreciated : Machinery and equipment 70,349,424 17,739,157 (5,280,262) 82,808,319 Total capital assets depreciated 70,349,424 17,739,157 (5,280,262) 82,808,319 Less accumulated depreciation: Machinery and equipment (54,770,229) (7,319,820) 5,250,472 (56,839,577) Total Accumulated depreciation (54,770,229) (7,319,820) 5,250,472 (56,839,577) Total Depreciable capital assets, net 15,579,195 10,419,337 (29,790) 25,968,742 Total Governmental Activities capital assets, net 22,995,407$ 11,611,318$ (4,705,626)$ 29,901,099$ 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, 2018 Governmental fund activities: Telephone system 4.82% 129,754$ Total Capital Lease Obligations 129,754$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018 24 5. Long-Term Liabilities (continued) Equipment and related accumulated depreciation under capital leases is as follows: Governmental Activities Equipment 276,128$ Less: accumulated depreciated (213,247) Less: disposal – Net Value 62,881$ As of September 30, 2018, capital lease annual amortization are as follows: Year ending September 30: Governmental Activities 2019 63,185$ 2020 63,185 2021 10,532 Total minimum lease payments 136,902 Less: amount representing interest (7,148) Present value of remain payments 129,754$ 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, 2017 Additions Reclassifications 2018 Capital lease agreements 185,232$ –$ (55,478)$ 129,754$ Compensated Absences 18,133,560 2,625,681 (1,283,533) 19,475,708 Total 18,318,792$ 2,625,681$ (1,339,011)$ 19,605,462$ Of these liabilities, approximately $763,000 is expected to be paid during the fiscal year ending September 30, 2018. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018 25 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2017, were as follows: Due From Due To General Fund 226,134$ 500,000$ Prisoner Welfare Fund 61,819 35,896 Internal Service Fund 500,000 – Other non-major special revenue funds – 178,818 Agency Funds – 73,239 Total 787,953$ 787,953$ 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 $174,720,200. At September 30, 2018, the Sheriff had a payable due to the Board of $4,990,707 comprised of the following: General fund: Distributions of excess appropriations 327,816$ Distribution of interest collected 11,681 FEMA reimbursement 4,622,346 Miscellaneous payables 8,087 Agency fund 20,777 Total 4,990,707$ Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $315,591 at September 30, 2018. 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, 2018 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, 2018 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, 2018 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, 2018 29 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2018, 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, 2018 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, 2018, 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, 2018, 2017, and 2016 were $17,500,632, $16,967,099, and $15,023,011, 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, 2018 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, 2018, the date of the latest actuarial valuation, the Sheriff’s plan participation consisted of: Active employees 1,153 Inactive employees or beneficiaries currently receiving benefit payments 129 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, 2018 32 9. Other Postemployment Benefits (continued) Total OPEB Liability The Sheriff’s OPEB liability of $19,492,224 was measured as of September 30, 2018, and was determined by an actuarial valuation as of October 1, 2018. The following table shows the changes in the Sheriff’s total OPEB liability for the year ended September 30, 2018. Total OPEB Liability Balance, as of October 1, 2017 18,260,466$ Changes: Service cost 520,082 Interest 503,525 Differences between expected and actual experience 2,048,462 Changes in assumptions or other inputs (898,977) Employer contributions (941,061) Net changes 1,232,031 Balance, as of September 30, 2018 19,492,497$ 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 (2.25%) (3.25%) (4.25%) Total OPEB Liability 21,325,122$ 19,492,497$ 17,873,887$ 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 (5% decreasing to 4.0%) or 1% point higher (7% decreasing to 6%) than the current healthcare cost trend rates: 1% Decrease Discount Rate 1% Increase (5% decreasing (6% decreasing (7% decreasing to 4%) to 5%) to 6%) Total OPEB Liability 17,798,126$ 19,492,497$ 21,430,289$ Healthcare rate sensitivity Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018  33 9. Other Postemployment Benefits (continued) Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2018, the Sheriff’s OPEB expense was $1,012,248. In addition the Sheriff reported deferred outflow of resources and deferred inflow of resources from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences between expected and actual experience 2,048,462$ 72,247$ Changes in assumptions – 898,977 Amounts reported as deferred outflows of resources are being amortized over 7.17 years and will be recognized as follows: Year ending September 30 Amount 2019 148,959$ 2020 148,959 2021 148,959 2022 148,959 2023 148,959 Thereafter 332,443 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, 2018  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 3.25% (Based on 20 year AA municipal bond rate) Healthcare cost trend rate 6% decreasing to 5% in 2021 and thereafter Salary increase None New employees None Mortality rates were based on the RP-2014 Mortality Fully Generational tables using Projection Scale MP-2017. The following changes have been made since the prior year valuation:  The discount rate was changed from 2.75% to 3.25%.  The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2016 to RP-2014 Mortality Fully Generational using Projection Scale MP-2017. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018  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 FY18 there were two covered individuals who had higher deductible amounts because of a history of high claims. One individual had a deductible of $325,000 and the other had a deductible of $350,000. Specific claim excess coverage for these individuals was for claims exceeding $325,000 and $350,000, 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, 2018 and 2017 is as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2017 $ 2,379,000 $ 19,699,382 $ (24,738,382) $ 2,660,000 2018 $ 2,660,000 $ 24,067,975 $ (23,843,975) $ 2,884,000 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2018  36 11. Commitments 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. Purchase Commitment On July 9, 2018, the Sheriff signed a Letter of Intent with Alan Jay Ford Lincoln Mercury, Inc. to purchase 85 2019 Ford Police Interceptor vehicles for $2,609,075 obligating the Sheriff to purchase these vehicles. Delivery of these vehicles is scheduled for January 2019. Payment is to be made within 30 days of delivery. Collier County, Florida Sheriff Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios September 30, 2018 37 2018 2017Total OPEB LiabilityService cost 520,082$ 491,420$ Interest503,525 502,621 Differences between expected and actual experience 2,048,462 (83,607) Changes in assumptions or other inputs (898,977) – Employer contributions (941,061) (871,353) Net change in total OPEB Liability 1,232,031 39,081 Total OPEB Liability, beginning 18,260,466 18,221,385 Total OPEB Liability, ending 19,492,497$ 18,260,466$ Covered-employee payroll 80,473,682$ 91,192,818$ Total OPEB Liability as a percentage of covered-employee payroll 24.22% 20.02% Notes to Schedule Changes in Assumptions: - Change in the discount rate of 2.75% as of September 30, 2017 to 3.25% as of September 30, 2018. - As of September 30, 2018 the mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2016 to RP-2014 Mortality Fully Generational using Projection Scale MP-2017. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is completed, the County will present information for only those years for which information is available. Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position – Agency Funds September 30, 2018 38 TotalCivil Evidence Flexible Inmate Agency Trust Trust Spending Trust Explorers FundsCash and cash equivalents 46,051$ 228,942$ 199,888$ 140,755$ 19,301$ 634,937$ Due from individuals and businesses – – – 26,778 – 26,778 46,051$ 228,942$ 199,888$ 167,533$ 19,301$ 661,715$ Due to other funds –$ –$ –$ 73,239$ –$ 73,239$ Due to Collier County, Florida Board11,589 – – 9,188 – 20,777 Due to individuals and businesses 34,462 228,942 199,888 85,106 19,301 567,699 46,051$ 228,942$ 199,888$ 167,533$ 19,301$ 661,715$ Liabilities:of County CommissionersTotal liabilitiesAssets:Total assets Collier County, Florida Sheriff Statement of Changes in Assets and Liabilities – Agency Funds September 30, 2018 39 October 1, September 30, 2017 Additions Deletions 2018Assets:Cash and cash equivalents 565,455$ 634,937$ (565,455)$ 634,937$ Due from individuals and businesses 3,156 26,778 (3,156) 26,778 Total assets 568,611$ 661,715$ (568,611)$ 661,715$ Liabilities:.Due to other funds 34,961$ 73,239$ (34,961)$ 73,239$ Due to Collier County, Florida Boardof County Commissioners 15,499 20,777 (15,499) 20,777 Due to individuals and businesses 518,151 567,699 (518,151) 567,699 Total liabilities 568,611$ 661,715$ (568,611)$ 661,715$   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, 2018, 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 17, 2019. 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. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and responses, we did identify certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and responses as item 2018-001 to be a material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying schedule of findings and responses as item 2018-002 to be a significant deficiency. Honorable Kevin Rambosk Sheriff 41    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 findings identified in our audit is described in the accompanying schedule of findings and responses. 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 17, 2019 Collier County, Florida Sheriff Schedule of Findings and Responses September 30, 2018 42    2018-001 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. 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 reconciliation of the internal service fund is not performed throughout the year and audit adjustments were required to correct balances and activity reported in the financial statements.   Cause: Management has not implemented policies and procedures to account for and reconcile activity in the internal service funds.   Effect: Material audit adjustments were required to correct the internal service fund amounts reported in the financial statements.   Recommendation: We recommend that management develop policies and procedures to reconcile internal service fund activity monthly and ensure that the finance department staff have the proper training and understanding to perform and review the reconciliations.   Management’s response: The transactions of the internal service fund are now maintained in the general ledger of the new financial system. We have developed procedures to ensure that information on the internal service fund is received and reviewed monthly. This includes fund financial statements prepared by our outside investment monitor, supporting bank and investment statements and supporting calculations of investment income and fees. Finance Department staff has met with CLA and will meet with our outside investment monitor to ensure that Finance Department team members understand and are able to perform and review reconciliations on the information. Collier County, Florida Sheriff Schedule of Findings and Responses September 30, 2018 43    2018-002 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. Condition: Depreciation reported on certain assets placed into service during 2018 was incorrectly calculated by the Sheriff’s accounting system. Management’s review did not detect the error.   Cause: The Sheriff implemented a new accounting system during 2018 and certain capital assets classified as construction in-progress, upon being placed into service, were depreciated using a service date that was incorrect.   Effect: Depreciation expense is overstated by approximately $194,000 in the financial statements. If this issue in the Sheriff’s accounting system is not corrected, depreciation expense will be overstated each time a construction in-progress asset is placed into service.   Recommendation: We recommend that management develop policies and procedures to recalculate the system calculated deprecation regularly throughout the year. In addition, we recommend that management work with their vendor to determine a solution to ensure the system’s capital asset module properly calculates deprecation on all capital assets.   Management’s response: This issue is as a system constraint in how the depreciation was calculated on certain assets. We are working with the system vendor to correct the issue as much as is possible This issue was isolated to CIP assets that were imported into the new system from the legacy system. There are some remaining CIP assets from the legacy system that will be placed into service over the next 2-3 years. Since we identified the issue, affected assets and timeframe, we now have a plan in place to monitor and make necessary adjustments to ensure that depreciation is accurately reported in the financial statements.   44    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, 2018 and have issued our report thereon dated January 17, 2019. 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 17, 2019, 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 45    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 17, 2019   46    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, 2018. 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, 2018. 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 17, 2019  47 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) on the Sheriff’s policies and procedures as defined by the Sheriff over its investigative funds for the year ended September 30, 2018. The Sheriff’s management is responsible for the Sheriff’s compliance with those procedures and policies. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are summarized as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2018 (the population sampled included transactions from October 1, 2017 through September 30, 2018), 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. No exceptions were noted. 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. No exceptions were noted. Honorable Kevin Rambosk Sheriff 48 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 17, 2019 Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2018 Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2018 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 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, 2018, 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, 2018, 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, 2018, 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 Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 18, 2019 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 Supervisor’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 18, 2019 Collier County, Florida Supervisor of Elections Balance Sheet – Governmental Funds September 30, 2018 See accompanying Notes to Financial Statements 3 Grant Special General Revenue Total Assets Cash and cash equivalents 484,924$ 258,493$ 743,417$ Due from other funds - 395 395 Total assets 484,924$ 258,888$ 743,812$ Liabilities and fund balance Liabilities: Accounts payable 181,447$ -$ 181,447$ Accrued liabilities 102,416 - 102,416 Due to other funds 395 - 395 Due to Collier County, Florida Board of County Commissioners 200,666 - 200,666 Total liabilities 484,924 - 484,924 Fund balances: Restricted - 258,888 258,888 Total fund balances - 258,888 258,888 Total liabilities and fund balances 484,924$ 258,888$ 743,812$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2018 See accompanying Notes to Financial Statements 4 Grant Special General Revenue Total Revenues: Intergovernmental -$ 308,278$ 308,278$ Interest - 922 922 Total revenues - 309,200 309,200 Expenditures: General government: Personal services 2,035,267 - 2,035,267 Operating 1,435,968 47,905 1,483,873 Capital outlay 40,839 7,086 47,925 Total expenditures 3,512,074 54,991 3,567,065 Excess (deficiency) of expenditures over revenues (3,512,074) 254,209 (3,257,865) Other financing sources (uses): Transfers in: General Fund - 4,679 4,679 Collier County, Florida Board of County Commissioners appropriations 3,702,100 - 3,702,100 Transfers out: Special revenue fund (4,679) - (4,679) Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (185,347) - (185,347) Total other financing sources (uses)3,512,074 4,679 3,516,753 Net change in fund balances - 258,888 258,888 Fund balances – beginning of the year - - - Fund balances – end of the year -$ 258,888$ 258,888$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2018 See accompanying Notes to Financial Statements 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues -$ -$ -$ -$ Expenditures: General government: Personal services 2,204,200 2,204,200 2,035,267 168,933 Operating 1,477,900 1,445,216 1,435,968 9,248 Capital outlay 20,000 48,005 40,839 7,166 Total expenditures 3,702,100 3,697,421 3,512,074 185,347 Excess (deficiency)of expenditures over revenues (3,702,100) (3,697,421) (3,512,074) 185,347 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 3,702,100 3,702,100 3,702,100 - Transfers out: Special Revenue Fund - (4,679) (4,679) - Distribution of excess appropriations: Collier County, Florida Board of County Commissioners - - (185,347) (185,347) Total other financing sources (uses)3,702,100 3,697,421 3,512,074 (185,347) 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, 2018 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 Supervisor is considered to be financially accountable. The general operations of the Supervisor are funded by appropriations from the Collier County, Florida Board of County Commissioners (Board), 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 Supervisor’s general fund. The special revenue fund of the Supervisor is not budgeted and is 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, 2018 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, 2018 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, 2018 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, 2018. 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, 2018 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, 2018, 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 743,217 N/A Total cash and cash equivalents $ 743,417  Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2018 11 3. Cash and Cash Equivalents (continued) Custodial Credit Risk At September 30, 2018, 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, 2018 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 acquisition 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, 2017 Additions Deductions 2018 Machinery and equipment 1,240,230$ 47,925$ (593,766)$ 694,389$ Less accumulated depreciation (1,058,704) (67,481) 593,766 (532,419) Machinery and equipment, net 181,526$ (19,556)$ -$ 161,970$ 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,  2017 Additions Deletions 2018 Accrued compensated absences $ 196,168 $ 133,057 $ 122,789 $ 206,436 Of these liabilities, approximately $121,797 is expected to be paid during the fiscal year ending September 30, 2019, 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, 2018 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, 2018 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, 2018 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, 2018 16 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2018, 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. Supervisor 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, 2018 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, 2018, 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 Supervisor. 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, 2018, 2017 and 2016, were $130,124 $115,546 and $114,600 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, 2018 18 7. Related-Party Transactions For the year ended September 30, 2018, the Board provided funding for the Supervisor that amounted to $3,702,100. At September 30, 2018, the Supervisor had a payable due to the Board of $200,666 comprised as follows: Distribution of excess appropriations $ 185,347 Distribution of interest earnings 13,646 Amounts due for various services 1,674 Total due to Board of County Commissioners $ 200,666 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, 2018, the Supervisor was charged $264,792 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, 2018 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 $450,000 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 $4,679 for the year ending September 30, 2018. 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 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, 2018, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements, and have issued our report thereon dated January 18, 2019. 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 results 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 18, 2019 22 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 Collier County, Florida Supervisor of Elections (Supervisor) as of and for the fiscal year ended September 30, 2018 and have issued our report thereon dated January 18, 2019. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other 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 January 18, 2019, 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 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 Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 18, 2019 24 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, 2018. 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 the 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, 2018. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 18, 2019 Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Years Ended September 30, 2018 and 2017 Collier County, Florida Tax Collector Financial Statements and Other Reports Years Ended September 30, 2018 and 2017 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       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, 2018 and 2017, 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 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2018 and 2017, 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, 2018, 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, 2018 and 2017, 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 21, 2018 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 21, 2018 Collier County, Florida Tax Collector Balance Sheets – General Fund See accompanying Notes to Financial Statements. 3 2018 2017 Assets Cash and cash equivalents 9,349,680$ 7,222,230$ Accounts receivable - 4,678 Due from other funds 100,595 62,712 Prepaid rent 29,608 28,921 Prepaid expense 3,606 6,842 Security deposit 4,628 4,628 Total assets 9,488,117$ 7,330,011$ Liabilities and fund balance Liabilities: Accounts payable 154,028$ 191,873$ Due to Collier County, Florida Board of County Commissioners 8,175,198 6,255,593 Due to other governmental agencies 1,138,651 787,451 Other current liabilities 20,240 95,094 Total liabilities 9,488,117 7,330,011 Fund balance - - Total liabilities and fund balance 9,488,117$ 7,330,011$ 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 2018 2017 Revenues: Commissions and fees 22,625,793$ 20,996,583$ Miscellaneous 249,076 453,665 Total revenues 22,874,869 21,450,248 Expenditures: General government: Personal services 10,684,424 10,507,089 Operating 2,252,976 2,125,375 Capital outlay 623,620 1,774,740 Total expenditures 13,561,020 14,407,204 Excess of revenues over expenditures 9,313,849 7,043,044 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (8,175,198) (6,255,593) Distribution of excess commissions and fees to other governmental agencies (1,138,651) (787,451) Total other financing uses (9,313,849) (7,043,044) 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, 2018 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 21,456,508$ 21,456,508$ 22,625,793$ 1,169,285$ Miscellaneous 250,200 250,200 249,076 (1,124) Total revenues 21,706,708 21,706,708 22,874,869 1,168,161 Expenditures: General government: Personal services 11,374,486 11,390,778 10,684,424 706,354 Operating 2,610,418 2,610,418 2,252,976 357,442 Capital outlay 627,587 627,587 623,620 3,967 Total expenditures 14,612,491 14,628,783 13,561,020 1,067,763 Balance of revenues over expenditures 7,094,217 7,077,925 9,313,849 2,235,924 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (6,226,924) (6,212,624) (8,175,198) (1,962,574) Distribution of excess commissions and fees to other governmental agencies (867,293) (865,301) (1,138,651) (273,350) Total other financing uses (7,094,217) (7,077,925) (9,313,849) (2,235,924) 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   2018 2017 Assets Cash and cash equivalents 6,354,628$ 6,271,609$ Accounts receivable 32,959 50,324 Total assets 6,387,587$ 6,321,933$ Liabilities Due to other funds 100,594$ 62,712$ Due to Collier County, Florida Board of County Commissioners 1,139,571 879,823 Due to other governmental agencies 5,077,456 5,342,341 Due to individuals and businesses 69,966 37,057 Total liabilities 6,387,587$ 6,321,933$ September 30,     Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2018 and 2017 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, 2018 and 2017 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, 2018 and 2017 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, 2018 and 2017 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, 2018 and 2017 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, 2018 and 2017 12 3. Cash At September 30, 2018 and 2017, the carrying value of the Tax Collector’s cash was as follows: 2018 2017 Carrying Carrying Value Value Cash on hand 35,897$ 36,338$ Demand deposits 15,668,411 13,457,501 Total cash and cash equivalents 15,704,308$ 13,493,839$ Type Such amounts are reported as $9,349,680 and $6,354,628 for 2018 and $7,222,230 and $6,271,609 for 2017 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2018, 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, 2018 and 2017 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, 2018: October 1, 2017 Additions Deletions/ Reclassifications September 30, 2018 Capital Assets not depreciated: Construction in progress 1,698,143$ 566,454$ (2,023,823)$ 240,774$ Total assets not depreciated 1,698,143 566,454 (2,023,823) 240,774 Infrastructure 11,735 - - 11,735 Improvements other than buildings 109,084 - - 109,084 Machinery and equipment 1,884,111 57,166 (42,089) 1,899,188 Total Capital Assets 3,703,073 623,620 (2,065,912) 2,260,781 Less accumulated depreciation: (1,713,395) (106,287) 35,338 (1,784,344) Total capital assets, net 1,989,678$ 517,333$ (2,030,574)$ 476,437$ Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2018 and 2017 14 4. Capital Assets (continued) 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 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$ 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, 2017 Increase Decrease 2018 Accrued compensated absences 1,232,879$ 633,595$ (715,460)$ 1,151,014$ October 1, September 30, 2016 Increase Decrease 2017 Accrued compensated absences 1,173,838$ 681,407$ (622,366)$ 1,232,879$ Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2018 and 2017 15 5. Long-Term Liabilities (Continued) Of these liabilities, approximately $665,000 is expected to be paid during the fiscal year ending September 30, 2019, 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, 2018 and 2017 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, 2018 and 2017 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, 2018 and 2017 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, 2018, 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, 2018 and 2017 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, 2018, 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, 2018 and 2017 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, 2018, 2017, and 2016 were $716,867, $655,667, and $606,522, 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, 2018 and 2017 21 8. Related Party Transactions During the fiscal years ended September 30, 2018 and 2017, the Board paid commissions and fees to the Tax Collector that amounted to $16,291,894 and $15,267,509, respectively. At September 30, 2018 and 2017, the Tax Collector had a payable due to the Board of $9,314,769 and $7,135,416, respectively, comprised as follows: 2018 2017 Distribution of unused commissions and fees 8,175,198$ 6,255,593$ Agency funds due to the Board 1,139,571 879,823 Total 9,314,769$ 7,135,416$ 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 $2,938,265 and $3,031,659, respectively, by the County for participation in the risk management program. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2018 and 2017 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 $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector has noncancelable operating leases for certain office facilities that were utilized solely by the Tax Collector for fiscal year 2016. The two current leases include options for a 5-year renewal with an annual escalation clauses ranging from 1-5% annually. The following is a schedule of future minimum lease payments under the operating leases: Fiscal year ending September 30: 2019 250,334$ 2020 199,976 2021 146,800 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2018 and 2017 23 10. Commitments and Contingencies (continued) Rental expense for all operating leases in the aggregate was $352,553 and $336,837 for the years ended September 30, 2018 and 2017, respectively. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2018 or 2017. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector.     24 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, 2018, 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 21, 2018. 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 21, 2018   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, 2018, and have issued our report thereon dated December 21, 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 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 21, 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 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 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 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 21, 2018   28 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Larry H. 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, 2018. 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, 2018. 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 21, 2018