IFCD District Audit FY End 09/30/2018 \NOOKA(FF
Immokalee Fire Control District
E lop
' E 502 New Market Road East, Immokalee, FL. 34142
Ave Maria Michael J. Choate, Fire Chief
May 21, 2019
Mr. Derek Johnson, General Accounting Manager
Clerk of the Circuit Court, Finance Department
3299 Tamiami Trail East, #403
Naples, FL 34112
Sent via Federal Express
Dear Mr. Johnson:
Enclosed please a copy of the District's audit for the fiscal year ended 9-30-18.
Please contact me if you have any questions or would like to receive an electronic copy
of the audit.
7 truly yours,
BECK�RONSDON
Chief Financial Officer
Enclosures
Administration(239)657-2111 Operations(239)657-8587 Fire Prevention(239)597-9227
Fax(239)657-9489
IMMOKALEE FIRE CONTROL DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH ADDITIONAL REPORTS
YEAR ENDED
SEPTEMBER 30,2018
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT 1-3
MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-vii
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:
Statement of Net Position 4
Statement of Activities 5
FUND FINANCIAL STATEMENTS:
Governmental Funds:
Balance Sheet 6
Reconciliation of the Balance Sheet-Governmental Funds
to the Statement of Net Position 7
Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds 8
Reconciliation of the Statement of Revenues,Expenditures and Changes
in Fund Balance-Governmental Funds to the Statement of Activities 9
NOTES TO THE FINANCIAL STATEMENTS 10-48
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS(General and Special Revenue Funds)
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
General Fund-Summary Statement 49
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
General Fund-Detailed Statement 50-52
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Impact Fee Fund-Summary Statement 53
OTHER REQUIRED SUPPLEMENTARY INFORMATION
Schedule of District Proportionate Share of the Net Pension Liability-Florida Retirement
System(FRS)Pension Plan 54
Schedule of District Contributions-Florida Retirement System(FRS)Pension Plat.) 54
Schedule of District Proportionate Share of the Net Pension Liability-Health Insurance
Subsidy(HIS)Pension Plan 55
Schedule of District Contributions-Health Insurance Subsidy(HIS)Pension Plan. 55
Notes to the Required Supplementary Information 56-57
Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No.75
and Related Notes to the Schedule 58
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Basic Financial Statements
Performed in Accordance with Government Auditing Standards 59-60
Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes 61
Independent Auditor's Report to Management 62-67
Management's Response to Independent Auditor's Report to Management Exhibit
T ®�J�q s cAN Affiliations
Florida Institute of Certified Public Accountants
&Company, PA American institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Imrnokalee Fire Control District
502 East New Market Road
Immokalee,Florida 34142
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of Immokalee
Fire Control District(the"District")as of and for the year ended September 30,2018,and the related notes to the
financial statements,which collectively comprise the District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America;this includes the design,implementation,and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement,whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial
statements of Florida Retirement System Pension Plan(FRS)or Health Insurance Subsidy Pension Plan(HIS)as of and
for the year ended June 30,2018. The District is required to record its proportionate share of the FRS and HIS liability in
the District's government-wide financial statements as of September 30,2018,and for the year then ended.Those financial
statements were audited by other auditors whose report thereon has been furnished to us,and our opinion,insofar as it
relates to the amounts included for Immokalee Fire Control District's government-wide financial statements,is based on
the report of the other auditors.We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States of America. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment,including the assessment of the risks of material
misstatement of the financial statements,whether due to fraud or error. In making those risk assessments,the auditor
considers internal control relevant to the District's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the
effectiveness of the District's internal control. Accordingly,we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management,as well as evaluating 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 ow audit opinion.
Opinion
In our opinion,based on our audit and the report of the other auditors,the financial statements referred to above present
fairly,in all material respects,the respective financial position of the governmental activities and each major fund of
Immokalee Fire Control District as of September 30,2018,and the respective changes in financial position,for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907 •Phone:(239)333-2090•Fax: (239)333-2097
Board of Commissioners
Immokalee Fire Control District
Page 2
Emphasis of Matter
As described in Note 0,the District adopted the provisions on Governmental Accounting Standards hoard Statement
(GASB)No.75,Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. As a result of the
implementation of GASB No.75,the District reported a restatement of its net position due to implementation of the
change in accounting principle. The auditor's opinion was not modified with respect to this restatement.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis on pages i-vii,Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement
System(FRS)Pension Plan,Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan,Schedule
of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan,Schedule of
District Contributions-Health Insurance Subsidy(HIS)Pension Plan,Notes to Required Supplementary Information and
Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No.75 and Related Notes to the Schedule,as
listed in the table of contents,be presented to supplement the basic financial statements. Such information,although not a
part of the basic financial statements,is required by the Governmental Accounting Standards Board which considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate operational,economic,or
historical context. We have applied certain limited procedures to the required supplementary information-management's
discussion and analysis(MD&A),Schedule of the District's Proportionate Share of the Net Pension Inability-Florida
Retirement System(FRS)Pension Plan,Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan,
Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan,
Schedule of District Contributions-Health Insurance Subsidy(HIS)Pension Plan,Notes to Required Supplementary
Information and Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No.75 and Related Notes to the
Schedule,as listed in the table of contents,in accordance with auditing standards generally accepted in the United States of
America,which consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries,the basic financial statements,and other
knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any
assurance on the required supplementary information-management's discussion and analysis(MD&A), Schedule of the
District's Proportionate Share of the Net Pension Liability-Florida Retirement System(FRS)Pension Plan,Schedule of
District Contributions-Florida Retirement System(FRS)Pension Plan,Schedule of the District's Proportionate Share of the
Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan,Schedule of District Contributions-Health Insurance
Subsidy(HIS)Pension Plan,Notes to Required Supplementary Information and Schedule of Changes in the Net OPEB
Liability and Related Ratios,GASB No.75 and Related Notes to the Schedule,as listed in the table o4 contents,because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any ast urance.
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise
Immokalee Fire Control District's basic financial statements. The required supplementary informatiot other than MD&A
-budgetary comparison information is presented for purposes of additional analysis and is not a requited part of the basic
financial statements.The required supplementary information other than MD&A-budgetary comparison information is
the responsibility of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic fmancial 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 andxeconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves,and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion,the required supplementary information other than MD&A-
budgetary comparison information is fairly stated,in all material respects,in relation to the basic financial statements as a
whole.
9G
Board of Commissioners
Immokalee Fire Control District
Page 3
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the
District's basic financial statements. The Exhibit-Management's Response to Independent Auditor's Report to
Management is not a required part of the basic financial statements but is required by Government Auditing Standards.
Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements
and,accordingly,we do not express an opinion or provide any assurance on it.
Other Reporting Required by Section 218.415,Florida Statutes
In accordance with Section 218.415,Florida Statutes,we have also issued a report dated February 25,2019 on our
consideration of Immokalec Fire Control District's compliance with provisions of Section 218.415,Florida Statutes. The
purpose of that report is to describe the scope of our testing of compliance and the results of that testing,and to provide
an opinion on compliance with the aforementioned Statute. That report is an integral part of an audit performed in
accordance with Sections 218.39 and 218.415,Florida Statutes in considering Immokalee Fire Control District's compliance
with Section 218.415,Florida Statutes.
Other Reporting Required by Government Audltinw Standards
In accordance with Government Auditing Standards,we have also issued our report dated February 25,2019 on our
consideration of the District's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws,regulations,contract and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not
to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering Immokalee Fire Control District's
internal control over financial reporting and compliance.
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TUSCAN&COMPANY,P.A.
Fort Myers,Florida
February 25,2019
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2018
General Information
The Immokalee Fire Control District's (the District) discussion and analysis is designed
to assist the reader in focusing on significant financial issues, provide an overview of the
District's financial activity, identify changes in the District's financial ability to address
the next and subsequent fiscal years challenges, identify any material deviations from
the approved budget, and identify individual fund issues and concerns.
Management's Discussion and Analysis (MD&A) is intended to serve as an introduction
to the District's basic financial statements which are composed of 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial
statements. It is designed to focus on the current fiscal year's activities, resulting
changes and currently known facts, and should be read in conjunction with the District's
financial statements.
Fiscal Year Highlights
As expected, the District's financial position decreased during the fiscal year ended
September 30, 2018 by $936,514 substantially due to recording the increase in pension
costs of$454,106 and the cost of OPEB of$35,299.
As expected, the District's net financial position decreased during the fiscal year ended
September 30, 2017 by$561,328 substantially due to an increase in pension liability of
$ 506,368. The District's revenue was up $214,248 or 5% while expenses increased
$825,561 or 20% as compared to the fiscal year ended September 30, 2016. The
District is debt free.
Effective September 30, 2015, the District adopted the provisions of Governmental
Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for
Pensions (Statement No. 68). The implementation of this standard required the District
to annually report its actuarially determined net pension liability in the government-wide
financial statements. It also requires additional disclosure in the notes related to the
financial statements.
Effective September 30, 2018, the District adopted the provisions of Governmental
Accounting Standards Board Statement no. 75 "Accounting and Financial Reporting of
Post Employment Benefits Other Than Pensions (OPEB)"(Statement No. 75). This
accounting standard requires the District to report its actuarially determined net OPEB
liability of $507,058 in the government-wide financial statements of the District as of
September 30 2018. It also required the beginning net asset balance to be restated.
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2018
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the District's finances in a manner similar to a private-sec or business. The
statements combine and consolidate governmental fund short-term spendable
resources with capital assets and long-term obligations.
The statements include a Statement of Net Position and a Statement of Activities that
are designed to provide consolidated financial information about governmental activities
of the District presented on the accrual basis of accounting.
The Statement of Net Position presents information on all of the Distrbt's assets and
liabilities, with the difference between the two reported as net position. Over time, the
increases or decreases to net position may serve as a useful indicator of whether the
financial position of the District is improving or deteriorating.
The government-wide financial statements can be found on pages 4 and 5 of this report
at September 30:
201E 2017
Assets: 1
Cash and Other Current Assets $ 6,947,553 $6,087,306
Capital Assets, Net of Depreciation 1,586,312 2,081,974
Total Assets 8,534,465 8,169,280
Deferred Outflows of Resources 2,420 267 2,390,140
Liabilities:
Accounts Payable and Other Current Liabilities 54 394 216,432
Unearned Revenue-impact fees 4,993 602 4,147,807
Long Term Liabilities 5,333 528 4,622,831
Total Liabilities 10,381 524 8,987,070
Deferred Inflows of Resources 365 420 159,714
Net Position:
Net Investment in Capital Assets 1,491,055 2,081,974
Unrestricted Net Assets (Deficit) (1,289,267) (669,338)
Total Net Position $ 207 788_ $ 1,412,636
The Statement of Activities presents information showing how the Dis rict's net position
changed during the fiscal years. The focus is on both gross and net costs of various
activities that are supported by the District's ad valorem tax and other revenues. Thus,
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2018
Government-wide Financial Statements (Continued)
revenues and expenses are reported in this Statement for some items that will only
result in cash flows in a future fiscal period (e.g. uncollected taxes earned). This
Statement is intended to summarize and simplify the user's analysis of the cost of
various governmental services. An increase or decrease in net position may be an
indication of whether the District's financial health is improving or deteriorating.
The following reflects the revenues, expenses and changes in financial position for the
years ended September 30:
2018 2017
Revenues:
Program Fees $ - $ 32,718
Ad Valorem Taxes 3,423,086 2,994,850
Interest Income 45,141 27,467
Grant Revenue 331,264 1,276,664
Impact Fees 109,670 38,159
Other Revenue 265,530 57,268
Total Revenue 4,174,691 4,427,126
Expenses
Public Safety Expenses 5,111,205 4,988,454
Change in Net Position (936,514) (561,328)
Net Position — Beginning, As Originally Stated 1,412,636 1,973,964
Prior Period Adjustment—GASB No. 75 (268,334)
Net Position — Beginning, As Restated 1,144,302 1,973,964
Net Position - Ending of the fiscal year $ 207,788 $ 1,412,636
Both of the financial statements distinguish the functions of the District that are
principally supported by ad valorem taxes and intergovernmental revenues. The
governmental activities of the District are for public safety.
General Revenues
During fiscal year 2018, the District received $428,236 more in ad valorem tax dollars
over the prior fiscal year due to an increase in assessable value of property within the
District. This represents an 14% increase. Other revenues, however, decreased
$680,671 net over the prior fiscal year due principally to the SAFER Grant ending.
iii
. Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2018
Government-wide Financial Statements (Continued)
During fiscal year 2017, the District received $442,056 more in ad valorem tax dollars
over the prior fiscal year due to an increase in assessable value of property within the
District. This represents a 17% increase. Other revenues, however, decreased
$227,808 net over the prior fiscal year due substantially to less allowable use of impact
fees.
Expenses
During the fiscal year of 2018 expenses increased by$122,751 vs. the prior fiscal year
due to increases in costs. These costs included an increase in pension liability and
OPEB costs.
During the fiscal year of 2017 expenses increased by $825,561 vs. th 3 prior fiscal year
due to increases in operating costs. These costs included an increase of$506,368 in
retirement expense, approximately $250,000 in overtime and sick time, approximately
$100,000 in health insurance and $50,000 in repairs and increased depreciation
expense of$191,685.
Net Position
During fiscal year 2017, net position decreased by ($561,328).
During fiscal year 2018, net position decreased by ($936,514).
Liabilities
During the year ended September 30, 2018, the District entered a capital lease of
$101,432 for staff vehicles.
The District had no debt during the year ended September 30, 2017.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The Di.trict uses fund
accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements
iv
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2018
Governmental Funds (Continued)
focus on the short-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Both the
governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balance provide a reconciliation to facilitate the
comparison between governmental funds and governmental activities.
The District maintains two governmental funds, the General Fund and the Special
Revenue Fund for impact fees. Each fund's activity is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances. These statements can be found on pages
6 and 8 of this report.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements and can be found
beginning on page 10 of this report.
General Fund Budgetary Highlights
The District adopts an annual appropriated budget for each of its governmental funds.
The most significant budget variance for the year ended September 30, 2018 was due
to entering the capital lease for staff vehicles. The actual expenditures in the General
Fund were $1,796,351 less than the final amended budget. The actual expenditures
were less than budget in general due to not having to use any reserves to cover
expenditures.
v
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2018
Capital Assets
The following is a schedule of the District's capital assets at September 30:
Capital Assets
September 30
2018 20 7
Capital Assets not being depreciated:
Land $ 114,916 $ 1'4,916
Construction in progress 360,044 2.'.9,638
Total Capital Assets not being depreciated 474,960 34 4,554
Capital Assets being depreciated:
Buildings and building improvements 455,967 415,967
Machinery&equipment 1,194,989 1,310,975
Vehicles 2,223,423 2,9C2 609
Total Capital Assets being depreciated 3,874,379 4,7119 551
Less: Accumulated Depreciation (2,762,427) (3,02'2,131)
Capital Assets,being depreciated,net 1.1 11,952 1,7::7,420
Capital Assets,Net $ 1,586,912 $ 2,08 1,974
During the year ended September 30, 2018, the District purchased capital assets of
$309,346 which consisted of construction in progress of $130,406 related to a new
station, $133,510 in vehicles and $45,430 in equipment.
The District purchased capital assets during the year ended Septembr 30, 2017 in the
amount of $292,536 which consisted of various new equipment.
The following is a summary of changes in long-term liabilities for the year ended
September 30:
2018 2017
Net pension liability-FRS 3,656,517 3,408,712
Net pension liability H6 667,117 636,395
Compensated absences 412,979 374,299
Capital leases 89,857
Net OPEB liability 507,058 203,425
$ 5,333,528 $ 4,622,831
vi
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2018
Economic Factors and Next Year's Budget Rates
The following were factors considered when next year's budget (2018-2019) was
prepared:
• The estimated property taxes increased by approximately $346,296 or 12%for
budgeting purposes for 2018 as compared to 2017. The millage rate stayed
consistent at 3.75 mills for the fiscal year ending September 30, 2019. The District
intends to retain all personnel until it learns if it was awarded the SAFER Grant.
Request for information
This financial report is designed to provide the reader an overview of the District.
Questions regarding any information provided in this report should be directed to:
Immokalee Fire Control District, 502 East New Market Road, Immokalee, Florida 34142,
attention Michael Choate, Fire Chief, telephone (239) 657-2111.
vii
IMMOKALEE FIRE CONTROL DISTRICT Page 4 of 67
STATEMENT OF NET POSITION
September 30,2018
Governmental
Activities
ASSETS
Current assets:
Cash and cash equivalents $ 1,398,805
Restricted cash and cash equivalents 4,886,768
Due from other governments,including restricted amount of$110,400 139,186
Accounts receivable 522,794
Deposits -
Prepaid expenses -
Total current assets 6,947,553
Noncurrent assets:
Capital assets:
Land 114,916
Construction in progress 360,044
Depreciable buildings,equipment and vehicles
(net of$2,762,427 accumulated depreciation) 1.111.952
Total noncurrent assets 1.586.912
TOTAL ASSETS 8,534,465
DEFERRED OUTFLOWS OF RESOURCES 2,420,267
LIABILITIES
Current liabilities:
Accounts payable 24,311
Accrued liabilities 7,964
Unearned revenue-impact fees 4,993,602
Due to other governments 22,119
Current portion of long-term obligations 19,843
Total current liabilities 5,067,839
Noncurrent liabilities:
Noncurrent portion of long-term obligations 5,313,685
TOTAL LIABILITIES 10,381,524
DEFERRED INFLOWS OF RESOURCES 365,420
NET POSITION
Net investment in capital assets 1,497,055
Restricted -
Unrestricted(deficit) (1,289,267)
TOTAL NET POSITION $ 207,788
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 6 of 67
BALANCE SHEET -GOVERNMENTAL FUNDS
September 30,2018
Total
General Impact Fee Governmental
Fund Fund Funds
ASSETS
Cash and cash equivalents $ 1,398,805 $ - $ 1,398,805
Restricted cash and cash equivalents - 4,886,768 4,886,768
Due from other governments 28,786 110,400 139,186
Due from other funds 2,463 - 2,463
Accounts receivable 522,794 - 522,794
Deposits - - -
Prepaid expenditures - - -
TOTAL ASSETS $ 1,952,848 $ 4,997,168 $ 6,950,016
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable $ 23,208 $ 1,103 $ 24,311
Accrued liabilities 7,964 - 7,964
Due to other funds - 2,463 2,463
Due to other governments 22,119 - 22,119
Unearned revenue-impact fees - 4,993,602 4,993,602
TOTAL LIABILITIES 53,291 4,997,168 5,050,459
FUND BALANCE
Nonspendable - - -
Assigned 1,899,557 - 1,899,557
Unassigned - - -
TOTAL FUND BALANCE 1,899,557 - 1,899,557
TOTAL LIABILITIES AND
FUND BALANCE $ 1,952,848 $ 4,997,168 $ 6,950,016
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 7 of 67
RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
September 30,2018
Amount
Total fund balance for governmental funds $ 1,899,557
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are not financial resources
and,therefore,are not reported in the governmental funds.
Capital assets not being depreciated:
Land 114,916
Construction in progress 360,044
474,960
Governmental capital assets being depreciated:
Building,Equipment and Vehicles 3,874,379
Less accumulated depreciation (2,762,427)
1,111,952
Deferred outflows and deferred inflows related to pensions are applied to
future periods and,therefore,are not reported in the governmental funds.
Deferred outflows related to pensions 2,420,267
Deferred inflows related to pensions (365,420)
Deferred inflows related to OPEB
2,054,847
Long-term liabilities are not due and payable in the current period
and,therefore,are not reported in the funds.
Net pension liability-FRS (3,656,517)
Net pension liability-HIS (667,117)
Capital leases (89,857)
Compensated absences (412,979)
Net OPEB liabiity (507,058)
(5,333,528)
Elimination of interfund amounts:
Due from other funds 2,463
Due to other funds (2,463)
Total net position of governmental activities $ 207,788
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 8 of 67
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -GOVERNMENTAL FUNDS
Year Ended September 30,2018
Impact Total
General Fee Governmental
Fund Fund Funds
REVENUES
Ad Valorem taxes $ 3,423,086 $ - 3,423,086
Intergovernmental revenues:
Federal public safety grants-SAFER/AFG 327,554 - 327,554
State grant - - -
State firefighter supplemental 3,710 - 3,710 1
I
Fees:
Inspection fees - - -
Impact fees - 109,670 109,670
Miscellaneous:
Interest 14,856 30,285 45,141
Other 124,405 - 124,405
TOTAL REVENUES 3,893,611 139,955 4,033,566
EXPENDITURES
Current
Public safety t
Personnel services 3,459,410 - 3,459,410
Operating expenditures 749,119 9,549 758,668
Capital outlay 178,940 130,406 309,346
Debt service
Principal reduction 11,575 - 11,575
Interest and fiscal charges - - -
TOTAL EXPENDITURES 4,399,044 139,955 4,538,999
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (505,433) - (505,433)
OTHER FINANCING SOURCES(USES)
Operating transfers in - - -
Proceeds from issuance of capital lease 101,432 - 101,432
Proceeds from disposition of capital assets 580,491 - 580,491
TOTAL OTHER FINANCING
SOURCES(USES) 681,923 - 681,923
NET CHANGE IN FUND BALANCE 176,490 - 176,490
FUND BALANCE-Beginning of the year 1,723,067 - 1,723,067
FUND BALANCE-End of the year $ 1,899,557 $ - $ 1,899,557
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 9 of 67
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE -
GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Year Ended September 30,2018
Amount
Net change(excess of revenues over(under)expenditures)
in fund balance-total governmental funds $ 176,490
The decrease(change)in net position reported for governmental activities
in the statement of activities is different because:
Governmental funds report capital outlays as expenditures.
However,in the Statement of Activities,the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense.
Plus:Expenditures for capital assets 309,346
Less:proceeds from disposition of capital assets (580,491)
Plus:gain on disposition of capital assets 141,125
Less:loss on disposition of capital assets -
Less:current year depreciation (365,042)
(495,062)
The issuance of debt is reported as a financing source in governmental
funds and thus contributes to the change in fund balance. In the
Statement of Net Position,however,issuing debt increases long-term
liabilities and does not affect the Statement of Activities.
Similarly,repayment of principal is an expenditure in the
governmental funds but reduces the liability in the Statement of
Net Position.
Proceeds from capital leases (101,432)
Repayments(principal retirement)for capital lease 11,575
(89,857)
Some expenses reported in the Statement of Activities do not require the
use of current financial resources and,therefore,are not reported as
expenditures in the governmental funds.
Increase(decrease)in deferred outflows-Pensions 30,127
(Increase)decrease in deferred inflows-Pensions (205,706)
(Increase)decrease in deferred inflows-OPEB -
(Increase)decrease in net pension liability-FRS (247,805)
(Increase)decrease in net pension liability-HIS (30,722)
(Increase)decrease in compensated absences,net (38,680)
(Increase)decrease in net OPEB liability (35,299)
(528,085)
Decrease in net position of governmental activities $ (936,514)
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 10 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A • ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization
Immokalee Fire Control District(the "District"), is an independent special district
established on May 3, 1955 by Laws of Florida,Chapter 55-30666, as amended.
The District has the general and specific powers prescribed by Florida Statutes
Chapters 189, 633 and Chapter 191. Laws of Florida,Chapter 2000-393 codified,
reenacted, amended and repealed its prior enabling acts. Also, ,os a result of Laws of
Florida, Chapter 2000-393, the District's name was changed from Immokalee Fire
Control and Rescue District to Immokalee Fire Control District Laws of Florida,
Chapter 2001-330 amended Laws of Florida, Chapter 2000-393 and authorized the
District to levy impact fees on new construction within the District. During January
2012, the voters within the District passed a referendum increasing the District's
millage cap from 3 mills to 3.75 mills effective for the year ended September 30,
2013. The District was created for the purpose of providing fir control and
protection services as well as crash and rescue services for a designated area in
eastern Collier County. The District operates three(3)station houses and has
approximately 42 employees including volunteers. The Districtis governed by an
elected five(5)member Board of Commissioners serving staggered four(4)year
terms.
Summary of Significant Accounting Policies
The following is a summary of the significant accounting policies used in the
preparation of these basic financial statements.
Reporting Entity
The District adheres to Governmental Accounting Standards Board(GASB)
Statement Number 14, "Financial Reporting Entity" (GASB 14 I, as amended by
GASB Statement Number 39, "Determining Whether Certain Crganizations Are
Component Units" (GASB 39)and GASB Statement Number b 1, "The Financial
Reporting Entity: Omnibus -An Amendment of GASB Statements No. 14 and No.
34" (GASB 61). These statements require the basic financial statements of the
District(the primary government)to include its component units, if any. A
component unit is a legally separate organization for which the elected officials of the
primary government are financially accountable. Based on the criteria established in
GASB Statement No. 14, as amended,there are no component units required to be
included or included in the District's basic financial statements.
IMMOKALEE FIRE CONTROL DISTRICT Page 11 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A • ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
The basic financial statements of the District are comprised of the following:
-Government-wide financial statements
-Fund financial statements
-Notes to the financial statements
Government-wide Financial Statements
The government-wide financial statements(i.e., the Statement of Net Position and the
Statement of Activities)report information on all of the activities of the District and do
not emphasize fund types. These governmental activities comprise the primary
government. General governmental and intergovernmental revenues support the
governmental activities. The purpose of the government-wide financial statements is
to allow the user to be able to determine if the District is in a better or worse financial
position than the prior year. The effect of all interfund activity between governmental
funds has been removed from the government-wide financial statements.
Government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting,revenues,expenses, gains,losses, assets,and liabilities resulting from
exchange and exchange-like transactions are recognized when the exchange takes
place. Revenues,expenses, gains, losses, assets, and liabilities resulting from
nonexchange transactions are recognized in accordance with the requirements of
GASB Statement Number 33, "Accounting and Financial Reporting for
Nonexchange Transactions" (GASB 33).
Amounts paid to acquire capital assets are capitalized as assets in the
government-wide financial statements,rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government-wide
financial statements,rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government-wide financial statements,rather than as
expenditures.
IMMOKALEE FIRE CONTROL DISTRICT Page 12 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT A CCOUNTING
POLICIES,CONTINUED
Government-wide Financial Statements,continued
The Statement of Activities demonstrates the degree to which the direct expenses of
a given function are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include: 1)
charges to customers or applicants who purchase, use or directly benefit from goods,
services, or privileges provided by a given function and 2)grants and contributions
that are restricted to meeting the operational or capital improvements of a particular
function. Taxes and other items not properly included among Fogram revenues are
reported instead as general revenues.
Program revenues are considered to be revenues generated by services performed
and/or by fees charged such as inspection fees.
Capital grant revenues are grants from other governmental entikies restricted for the
purchase of specific capital assets.
Fund Financial Statements
The District adheres to GASB Statement Number 54, "Fund Balance Reporting and
Governmental Fund Type Definitions" (GASB 54).
The accounts of the District are organized on the basis of funds,each of which is
considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self-balancing accounts that comprise its assets, liabilities,
fund equity or retained earnings,revenues,and expenditures or expenses, as
appropriate. Government resources are allocated to and accour ted for in individual
funds based upon the purpose for which they are to be spent ani the means by
which spending activities are controlled.
Fund financial statements for the District's governmental funds are presented after
the government-wide financial statements. These statements display information
about major funds individually and nonmajor funds, in aggregate, for governmental
funds.
IMMOKALEE FIRE CONTROL DISTRICT Page 13 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES,CONTINUED
Governmental Funds
When both restricted and unrestricted resources are combined in a fund,
expenditures are considered to be paid first from restricted resources, as
appropriate, and then from unrestricted resources. Governmental fund financial
statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are considered to be available
when they are collected within the current period or soon enough thereafter to pay
liabilities of the current period.
The District's major funds are presented in separate columns on the governmental
fund financial statements. The definition of a major fund is one that meets certain
criteria set forth in GASB Statement Number 34, "Basic Financial
Statements -and Management's Discussion and Analysis-for State and Local
Governments" (GASB 34). The funds that do not meet the criteria of a major fund are
considered non-major funds and are combined into a single column on the
governmental fund financial statements.
Separate financial statements are provided for governmental funds. Major
individual governmental funds are reported in separate columns on the fund financial
statements.
Measurement Focus and Basis of Accounting
Basis of accounting refers to when revenues and expenditures, or expenses, are
recognized in the accounts and reported in the basic financial statements. Basis of
accounting relates to the timing of the measurements made,regardless of the
measurement focus applied.
The government-wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements have been met.
IMMOKALEE FIRE CONTROL DISTRICT Page 14 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Measurement Focus and Basis of Accounting,continued
Governmental fund financial statements are reported using the Current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current
period and soon enough thereafter to pay liabilities of the current period. For this
purpose, the District considers tax revenues to be available if they are collected
within sixty days of the end of the current fiscal period.
Revenues susceptible to accrual are property taxes, interest on ivestments, and
intergovernmental revenues. Property taxes are recorded as revenues in the fiscal
year in which they are levied,provided they are collected in the current period or
within sixty days thereafter. Interest on invested funds is recognized when earned.
Intergovernmental revenues that are reimbursements for specific purposes or projects
are recognized when all eligibility requirements are met.
Expenditures are generally recognized under the modified accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (1)
principal and interest on the long-term debt, if any, which is recognized when due;
and(2)expenditures are generally not divided between years by the recording of
prepaid expenditures.
When both restricted and unrestricted resources are available for use, it is the
District's policy to use restricted resources first, then unrestricted resources as they
are needed.
Separate financial statements are provided for governmental funds.
Non-current Government Assets/Liabilities
GASB 34 requires non-current governmental assets, such as latni and buildings, and
non-current governmental liabilities, such as notes payable and capital leases,to be
reported in the governmental activities column in the government-wide Statement of
Net Position.
IMMOKALEE FIRE CONTROL DISTRICT Page 15 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES,CONTINUED
Major Funds
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the District, except those required to be accounted for in the Impact Fee
Fund.
The Impact Fee Fund consists of fees imposed and collected by Collier County
based on new construction within the District. The fees are restricted and can only
be used for certain capital expenditures and/or the related debt associated with
growth within the District.
Budgetary Information
The District has elected to report budgetary comparison of major funds as required
supplementary information(RSI).
Investments
The District adheres to the requirements of Governmental Accounting Standards
Board(GASB) Statement Number 31, "Accounting and Financial Reporting for
Certain Investments and for External Investment Pools" (GASB 31), in which all
investments are reported at fair value.
The District held no investments at September 30, 2018.
Capital Assets
Capital assets, which include land,construction in progress, buildings, equipment and
machinery and vehicles are reported in the government-wide financial statements in
the Statement of Net Position.
The District follows a capitalization policy which calls for capitalization of all fixed
assets that have a cost or donated value of$1,000 or more and have a useful life in
excess of one year.
IMMOKALEE FIRE CONTROL DISTRICT Page 16 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Capital Assets,continued
All capital assets are valued at historical cost, or estimated historical cost if actual
historical cost is not available. Donated capital assets are valued at their estimated
fair market value on the date donated. Public domain(infrastructure)capital assets
consisting of certain improvements other than building, includiiag curbs, gutters and
drainage systems, are not capitalized, as the District generally does not acquire such
assets. No debt-related interest expense is capitalized as part oil capital assets in
accordance with GASB 34.
Maintenance,repairs and minor renovations are not capitalized, The acquisition of
land and construction projects utilizing resources received from Federal and State
agencies are capitalized when the related expenditure is incurred.
Expenditures that materially increase values,change capacities,or extend useful lives
are capitalized. Upon sale or retirement,the cost is eliminated from the respective
accounts.
Expenditures for capital assets are recorded in the fund statements as current
expenditures. However, such expenditures are not reflected as expenses in the
government-wide statements,but rather are capitalized and depreciated.
Depreciable capital assets are depreciated using the straight-line,method over the
following estimated useful lives:
Asset Years
Buildings 30
Equipment and Machinery 3-20
Vehicles 4-10
IMMOKALEE FIRE CONTROL DISTRICT Page 18 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A • ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES,CONTINUED
Impact Fees/Deferred Revenue
Through an inter-local agreement, the District levies an impact fee on new
construction within the District. The intent of the fee is for growth within the District
to pay for capital improvements needed due to the growth. The fee is collected by
Collier County and is remitted to the District. The fee is refundable if not expended
by the District within a reasonable period from the date of collection. The District,
therefore,records this fee as restricted cash and as deferred revc nue until the date of
expenditure, at which time it is recognized as revenue and charged to capital outlay in
the fund financial statements and capital assets in the government-wide financial
statements.
Due To/From Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded
in the fund statements by funds affected in the period in which transactions are executed.
Due From Other Governments
No allowance for losses on uncollectible accounts has been recorded since the
District considers all amounts to be fully collectible.
Compensated Absences
The District's employees accumulate annual leave, based on the number of years of
continuous service. Upon termination of employment,employges can receive
payment of accumulated annual leave, if certain criteria are met The costs of sick,
vacation and personal leave benefits (compensated absences)ate expended in the
respective operating funds when payments are made to employees. However, the
liability for all accrued sick, vacation and personal leave benefis is recorded in the
government-wide Statement of Net Position.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation,is not employed by the:district because, at
present,it is not necessary in order to assure effective budgetary control or to
facilitate effective cash planning and control.
IMMOKALEE FIRE CONTROL DISTRICT Page 19 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES,CONTINUED
Management Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenditures during the reporting period.
Actual results could differ from those estimates.
Net Position
In the government-wide financial statements,no net position has been identified as
restricted. Restricted net position reflects those net assets that have constraints as to
their use externally imposed by creditors,through debt covenants,by grantors, or by
law.
Fund Balances
The governmental fund financial statements the District maintains may include
nonspendable,restricted, committed, assigned and unassigned fund balances.
Nonspendable fund balances are those that cannot be spent because they are either
(a)not in spendable form or(b)legally or contractually required to be maintained
intact. Criteria include items that are not expected to be converted into cash,for
example prepaid expenses.
Restricted fund balance consists of amounts that can be spent only on specific
purposes stipulated by constitutional provisions or enabling legislation or externally
imposed by creditors, grantors, contributors,or laws or regulations of other
governments. The District maintained no restricted fund balances at September 30,
2018.
Committed fund balance consists of amounts that represent resources whose use is
constrained by limitations the Board(highest decision making)imposes upon itself.
These constraints made by the Board remain binding unless removed in the same
manner.The District maintained no committed fund balance at September 30,
2018.
IMMOKALEE FIRE CONTROL DISTRICT Page 20 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT •1 CCOUNTING
POLICIES,CONTINUED
Fund Balances,continued
Assigned fund balance represents the portion of fund balance tkat reflects the
District's intended use of resources. Such intent can only be essablished by the
Board. The District maintained assigned fund balance totaling 51,899,557 for various
uses at September 30, 2018. The Board's minimum fund balance policy is to
maintain not less than three(3)months budgeted expenditures In assigned fund
balance as well as other specifically assigned amounts.
Unassigned fund balance is the portion of fund balance representing resources in
excess of what can properly be classified in one of the other categories.
Interfund Transactions
The District considers interfund receivables (due from other funds) and interfund
liabilities(due to other funds)to be loan transactions to and from other funds to
cover temporary(three months or less)cash needs. Transactions that constitute
reimbursements to a fund for expenditures initially made from it that are properly
applicable to another fund are recorded as expenditures in the reimbursing funds and
as reduction of expenditures in the fund that is reimbursed.
Pensions
In the government-wide Statement of Net Position, liabilities a>Ce recognized for the
District's proportionate share of each pension plan's net pension; liability. For
purposes of measuring the net pension liability,deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense,information
about the fiduciary net position of the Florida Retirement System(FRS)and the
Health Insurance Subsidy(HIS)defined benefit plans and additions to/deductions
from fiduciary net position have been determined on the same basis as they are
reported by the Plans. For this purpose,benefit payments, (incuding refunds of
employees contributions)are recognized when due and payable in accordance with
the benefit terms.
The District's retirement plans and related amounts are described in a subsequent
note.
IMMOKALEE FIRE CONTROL DISTRICT Page 21 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES,CONTINUED
Deferred Outflows/Inflows of Resources
In addition to assets,the Statement of Net Position reports a separate section for
deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to future
periods and so will not be recognized as an outflow of resources
(expense/expenditure)until then. The deferred amount on pensions is reported in the
government-wide Statement of Net Position. The deferred outflows of resources
related to pensions and OPEB are discussed in a subsequent note.
In addition to liabilities, the Statement of Net Position reports a separate section for
deferred inflows of resources. This separate financial statement element, deferred
inflows of resources,represents an acquisition of net position that applies to a future
period and so will not be recognized as an inflow of resources (revenue)until that
time. The deferred amount on pensions and OPEB is reported only in the
government-wide Statement of Net Position. A deferred amount on pensions and
OPEB results from the difference in the expected and actual amounts of experience,
earnings, and contributions. This amount is deferred and amortized over the service
life of all employees that are provided with benefits through the plans except earnings
which are amortized over five to seven years.
Subsequent Events
Subsequent events have been evaluated through February 25, 2019, which is the
date the financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
At September 30, 2018,cash and cash equivalents were$6,285,573,which
included unrestricted cash of$1,398,805 in the General Fund(including petty cash of
$100)and restricted cash of$4,886,768, which was held in the Impact Fee Fund.
Restricted cash is comprised of impact fees which are restricted for capital asset
acquisition and/or improvement due to growth within the District.
IMMOKALEE FIRE CONTROL DISTRICT Page 23 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE E - CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the year ended
September 30, 2018:
Balance Balance
October 1 Increases/ Decreases/ Adjustments/ September 30
2017 Additions Deletions Reclassifications 2018
Capital Assets Not
Being Depreciated:
Land $ 114,916 $ - $ - $ - $ 114,916
Construction in Progress 229,638 130,406 - - 360,044
Total Capital Assets Not
Being Depreciated 344,554 130,406 - - 474,960
Capital Assets
Being Depreciated:
Buildings 455,967 - - - 455,967
Equipment&Machinery 1,340,975 45,430 (191,416) - 1,194,989
Vehicles 2,962,609 133,510 (872,696) - 2,223,423
Total Capital Assets
Being Depreciated 4,759,551 178,940 (1,064,112) - 3,874,379
Less Accumulated
Depreciation:
Buildings (326,592) (11,500) - - (338,092)
Equipment&Machinery (678,863) (133,804) 167,620 - (645,047)
Vehicles (2,016,676) (219,738) 457,126 - (1,779,288)
Total Accumulated Depreciation (3,022,131) (365,042) 624,746 - (2,762,427)
Total Capital Assets Being
Depreciated,Net 1,737,420 (186,102) (439,366) - 1,111,952
Capital Assets,Net $ 2,081,974 $ (55,696) $ (439,366) $ - 1,586,912
Related debt (89,857)
Net investment in capital assets $ 1,497,055
Depreciation expense was charged to the following functions during the year ended
September 30, 2018:
Amount
General Government $ 365,042
Total Depreciation Expense $ 365,042
IMMOKALEE FIRE CONTROL DISTRICT Page 24 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE E- CAPITAL ASSETS ACTIVITY, CONTINUED
The District has capital assets held under capital leases with a total cost of$133,510 at
September 30,2018.The capital assets held under capital lease had accumulated
depreciation of$6,675 and depreciation expense of$6,675 as of and for the year ended
September 30,2018.
NOTE F- LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended
September 30, 2018:
Balance B dance Amounts
October 1 Retirements/ September 30 Due Within
2017 Additions Adjustments 2018 One Year
Net pension liability-FRS $ 3,408,712 $ 247,805 $ - $ :,656,517 $
Net pension liability-HIS 636,395 30,722 - 667,117
Capital leases - 101,432 (11,575) 89,857 19,843
Compensated Absences 374,299 38,680 - 412,979
Net OPEB Liability 471,759 35.299 - 507,058 -
$ 4,891,165 $ 453,938 $ (11,575) $ :�,33 3=528 $ 19,843
The following is a summary of the long-term obligations at September 30, 2018:
Amount
Net pension obligation-FRS pension plan. This amount is actuarially
determined through calculation based upon the audited financial
statements of the Florida Retirement Plan. $3,656,517
Net pension obligation-HIS plan. This amount is actuarially determined
through calculation based upon the audited financial statements of the
Florida Retirement Plan. 667,117
The District entered into a five year capital lease agreement.Monthly
payments are$1,654 and are interest free.Payments began on March
20,2018 with a final payment due February 20,2023.The lease
agreement is collateralized by the respective three vehicles. 89,857
Non-current portion of compensated absences. Employees of the
District are entitled to paid leave(sick,vacation and comp time)
based on length of service and job classification. 412,979
Net OPEB liability-actuarially determined-GASB No.75. 507,058
Total long-term liabilities 5,333,528
Current portion (19,843)
Noncurrent portion $5,313,685
IMMOKALEE FIRE CONTROL DISTRICT Page 25 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE F- LONG-TERM LIABILITIES, CONTINUED
The annual debt service requirements at September 30, 2018, were as follows:
Years Ending Total Total
September 30 Principal Interest Total
2019 $ 19,843 $ - $ 19,843
2020 19,843 - 19,843
2021 19,843 - 19,843
2022 19,843 - 19,843
2023 10,485 - 10,485
Total capital lease 89,857 - 89,857
Net pension liability-FRS 3,656,517 - 3,656,517
Net pension liability-HIS 667,117 - 667,117
Accrued compensated absences-vacation 412,979 - 412,979
Net OPEB obligation 507,058 - 507,058
Total long-term debt $ 5,333,528 $ - $ 5,333,528
Interest expense related to the capital lease payable was$0 for the year ended
September 30, 2018.
IMMOKALEE FIRE CONTROL DISTRICT Page 26 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN
General Information about the Florida Retirement System
The Florida Retirement System("FRS")was created in Chapter 21, Florida
Statutes. The FRS was created to provide a defined benefit pension plan ("Pension
Plan")for participating public employees. All District employees are participants in
the Statewide Florida Retirement System (FRS)under authority of Article X, Section
14 of the State Constitution and Florida Statutes, Chapters 112 apd 121. The FRS
was amended in 1998 to add the Deferred Retirement Option Program ("DROP")
under the defined benefit plan and amended in 2000 to provide an integrated defined
contribution plan alternative to the defined benefit plan for FRS members effective
July 1, 2002. This integrated defined contribution pension plan ,.s the FRS Investment
Plan. Chapter 112, Florida Statutes,established the Retiree Health Insurance
Subsidy(HIS)Program, a separate cost-sharing,multiple-employer defined benefit
pension plan to assist retired members of any State-administered retirement system in
paying the costs of health insurance.
Essentially all regular employees of the District are eligible to enroll as members of the
State-administered FRS. Provisions relating to the FRS are estar lished by Chapters
121 and 122,Florida Statutes;Chapter 112, Part IV,Florida Stai utes; Chapter 238,
Florida Statutes; and Florida Retirement System Rules, Chapter 160S,Florida
Administrative Code; wherein eligibility,contributions, and benefits are defined and
described in detail. Such provisions may be amended at any timC by further action
from the Florida Legislature. The FRS is a single retirement system administered by
the Florida Department of Management Services, Division of Retirement, and
consists of two cost-sharing, multiple-employer defined benefit plans (Pension and
HIS Plans)and other nonintegrated programs. A comprehensive;annual financial
report of the FRS, which includes its financial statements,requited supplementary
information, actuarial report, and other relevant information dated June 30,2018, is
available from the Florida Department of Management Services Website
(www.dms.myflorida.com).
The District's total pension expense, $943,210 for the year ended September 30,
2018,is recorded in the government-wide financial statements. Total District actual
retirement contribution expenditures were$489,104, $410,600 and$394,512 for
the years ended September 30,2018, 2017 and 2016,respectively. The District
contributed 100%of the required contributions.
IMMOKALEE FIRE CONTROL DISTRICT Page 27 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan
Plan Description. The FRS Pension Plan("Plan")is a cost-sharing, multiple-
employer defined benefit pension plan, with a Deferred Retirement Option Program
(DROP)for eligible employees. The general classes of membership are as follows:
Regular Class-Members of the FRS who do not qualify for membership in the
other classes.
Senior Management Service Class(SMSC) -Members in senior management
level positions.
Special Risk Class -Members who are employed as certified firefighters and
meet the criteria to qualify for this class.
Elected Officials -Members who are elected by the voters within the District
boundaries.
Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable
service and employees enrolled in the Plan on or after July 1, 2011, vest at eight
years of creditable service.All vested members,enrolled prior to July 1, 2011, are
eligible for normal retirement benefits at age 62 or at any age after 30 years of
service,except for those members classified as special risk who are eligible for
normal retirement benefits at age 55 or at any age after 25 years of service. All
members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for
normal retirement benefits at age 65 or any time after 33 years of creditable service,
except for members classified as special risk who are eligible for normal retirement
benefits at age 60 or at any age after 30 years of service. Members of both Plans
(Pension and HIS)may include up to 4 years of credit for military service toward
creditable service. The Plan also includes an early retirement provision;however,
there is a benefit reduction for each year a member retires before his or her normal
retirement date. The Plan provides retirement, disability, death benefits, and annual
cost of living adjustments to eligible participants.
DROP,subject to provisions of Section 121.091,Florida Statutes,permits
employees eligible for normal retirement under the Plan to defer receipt of monthly
benefit payments while continuing employment with an FRS employer. An employee
IMMOKALEE FIRE CONTROL DISTRICT Page 28 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G - RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan,continued
may participate in DROP for a period not to exceed 60 months after electing to
participate. During the period of DROP participation,deferred monthly benefits are
held in the FRS Trust Fund and accrue interest. The net pensior liability does not
include amounts for DROP participants, as these members are considered retired and
are not accruing additional pension benefits.
Benefits Provided. Benefits under the Plan are computed on the basis of age,
and/or years of service, average final compensation, and credit service. Credit for
each year of service is expressed as a percentage of the average anal compensation.
For members initially enrolled before July 1, 2011,the average anal compensation is
the average of the five highest fiscal years'earnings; for the members initially enrolled
on or after July 1,2011,the average final compensation is the ai'erage of the eight
highest fiscal years'earnings. The total percentage value of the oenefit received is
determined by calculating the total value of all service,which is based on retirement
plan and/or the class to which the member belonged when the service credit was
earned. Members are eligible for in-line-of-duty or regular disability and survivors'
benefits. The following chart shows the percentage value of eagh year of service
credit earned:
Class,Initial Enrollment,and Retirement Age/Years of Service %Value
Regular Class and elected members initially enrolled before July 1,2011
Retirement up to age 62,or up to 30 years of service 1.60
Retirement at age 63 or with 31 years of service 1.63
Retirement at age 64 or with 32 years of service 1.65
Retirement at age 65 or with 33 or more years of service 1.68
Regular Class and elected members initially enrolled on or after July 1,2011
Retirement up to age 65 or up to 33 years of service 1.60
Retirement at age 66 or with 34 years of service 1.63
Retirement at age 67 or with 35 years of service 1.65
Retirement at age 68 or with 36 or more years of service 1.68
Special Risk Regular
Service from December 1, 1970 through September 30, 1974 2.00
Service on or after October 1, 1974 3.00
Senior Management Service Class 2.00
Elected Officers'Class 3.00
IMMOKALEE FIRE CONTROL DISTRICT Page 29 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan,continued
As provided in Section 121.101,Florida Statutes, if the member is initially enrolled in
the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011,
the annual cost-of-living adjustment is 3 percent per year. If the member is initially
enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is
an individually calculated cost-of-living adjustment. The annual cost-of-living
adjustment is a proportion of 3 percent determined by dividing the sum of the
pre-July 2011 service credit by the total service credit at retirement multiplied by 3
percent. Plan members initially enrolled on or after July 1, 2011,will not have a
cost-of-living adjustment after retirement.
Contributions. The Florida Legislature establishes contribution rates for
participating employers and employees. Contribution rates during the
year ended September 30,2018 were as follows:
Percent of Gross Salary
Class Employee Employer(I) Employer(3)
Florida Retirement System,Regular 3.00 7.92 8.26
Florida Retirement System,Senior Management Service 3.00 22.71 24.06
Florida Retirement System,Special Risk 3.00 23.27 24.5
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 13.26 14.03
Florida Retirement System,Reemployed Retiree (2) N/A N/A
Florida Retirement System,Elected Official 3.00 45.50 48.70
Notes:
(1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates,other than for DROP participants,include.06 percent for administrative costs for
the Investment Plan. Rates for 7/1/17-6/30/18.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates,other than for DROP participants,include.06 percent for administrative costs for
the Investment Plan. Rates for 7/1/18-6/30/19.
* As defined by the Plan.
IMMOKALEE FIRE CONTROL DISTRICT Page 30 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan,continued
Pension Liabilities,Pension Expense,and Deferred Outflows;of Resources
and Deferred Inflows of Resources Related to the Pension Plan. At
September 30,2018,the District reported a pension liability of 13,656,517 for its
proportionate share of the 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
District's proportionate share of the net pension liability was based on the District's
2017-18 fiscal year contributions relative to the total 2017-18 firccal year
contributions of all participating members. At September 30, 2918,the District's
proportionate share was .012139622 percent, which was an increase of.000615654
percent from its proportionate share measure as of September 30, 2017.
For the year ended September 30, 2018,the District recognized a pension expense
of$877,267. In addition, the District reported deferred outflow:,of resources and
deferred inflows of resources related to the pension from the following sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected
and actual experience $ 309,762 11,243
Change of assumptions 1,194,771
Net difference between projected and
actual earnings on pension plan investments - 282,511
Changes in proportion and differences between
District contributions and proportionate share
of contributions 574,101 -
District contributions subsequent to the
measurement date 91,340 -
Total $ 2,169,974 293,754
IMMOKALEE FIRE CONTROL DISTRICT Page 31 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan,continued
The deferred outflows of resources related to the FRS pension, totaling$91,340,
resulting from District contributions subsequent to the measurement date, will be
recognized as a reduction on the net pension liability in the fiscal year ended
September 30, 2019. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the pension will be recognized in pension
expense over the remaining service period of 6.4 years as follows:
Fiscal Years Ending
September 30 Amount
2019 $ 312,222
2020 312,222
2021 312,222
2022 312,223
2023 382,850
Thereafter 153,141
Total $ 1,784,880
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 percent
Real payroll growth 0.65 percent
Salary increases 3.25 percent, average, including inflation
Investment rate of return 7.00 percent, net of pension plan
investment expense, including inflation
Mortality rates were based on the Generational RP-2000 with Projection Scale BB.
The actuarial assumptions used in the July 1,2018, valuation were based on the
results of an actuarial experience study for the period July 1, 2008 through June 30,
2013.
IMMOKALEE FIRE CONTROL DISTRICT Page 32 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G - RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan,continued
The long-term expected rate of return on pension plan investments was not based on
historical returns,but instead is based on a forward-looking capital market economic
model. The allocation policy's description of each asset class was used to map the
target allocation to the asset classes shown below. Each asset class assumption is
based on a consistent set of underlying assumptions,and include s an adjustment for
the inflation assumption. The target allocation and best estimatt:s of arithmetic and
geometric real rates of return for each major asset class are summarized in the
following table:
Compound t
Annual Annual
Target Arithmetic (Geometri;) Standard
Asset Class Allocation(1) Return Return Deviation
Cash 1.00% 2.9% 2.9% 1.8%
Fixed income 18.00% 4.4% 4.3% 4.0%
Global equity 54.00% 7.6% 6.13% 17.0%
Real estate(property) 11.00% 6.6% 6.9)% 11.3%
Private equity 10.00% 10.7% 74% 26.5%
Strategic investments 6.00% 6.0% 5.r% 8.6%
Total 100.00%
Assumed inflation-Mean 2.60% 1.90%
(1)As outlined in the Plan's investment policy
Discount Rate. The discount rate used to measure the total pension liability
was 7.00 percent.The Plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees.
Therefore,the discount rate for calculating the total pension liability is equal to the
long-term expected rate of return.
IMMOKALEE FIRE CONTROL DISTRICT Page 33 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan,continued
Sensitivity of the District's Proportionate Share of the Net Pension Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net pension liability calculated using the discount rate of
7.00 percent, as well as what the District's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1-percentage-point
lower(6.00 percent)or 1-percentage-point higher(8.00 percent)than the current
rate:
1% Current 1%
Decrease Discount Rate Increase
(6.00%) (7.00%) (8.00%)
District's proportionate share of
the net FRS pension liability $ 6,673,297 $ 3,656,517 $ 1,150,903
Pension Plan Fiduciary Net Position. Detailed information about pension plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Systems Comprehensive Annual Financial Report(FRS CAFR)
dated June 30, 2018.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee,FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30,2018,the District reported a
payable of$0 for the outstanding amount of contributions in the pension plan required
for the year ended September 30, 2018.
IMMOKALEE FIRE CONTROL DISTRICT Page 34 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED
HIS Plan
Plan Description.The Health Insurance Subsidy Plan ("HIS Plan")is a cost-sharing,
multiple-employer defined benefit pension plan established under Section 112.363,
Florida Statutes. The benefit is a monthly payment to assist retirees of
State-administered retirement systems in paying their health insurance costs and is
administered by the Division of Retirement within the Florida Department of
Management Services.
Benefits Provided. For the year ended September 30, 2018,eligible retirees
and beneficiaries received a monthly HIS payment equal to the Lumber of years of
creditable service completed at the time of retirement multiplied by$5. The
payments are at least$30 but not more than$150 per month,pug=-suant to Section
112.363,Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree
under a State-administered retirement system must provide proof of health insurance
coverage, which can include Medicare.
Contributions. The HIS Plan is funded by required contributions from FRS
participating employers as set by the Florida Legislature. Employer contributions are
a percentage of gross compensation for all active FRS members For the year ended
September 30, 2018, the contribution rate ranged between 1.66 percent and 1.66
percent of payroll pursuant to Section 112.363, Florida Statutes. The District
contributed 100 percent of its statutorily required contributions tor the current and
preceding three years. HIS Plan contributions are deposited in a separate trust fund
from which HIS payments are authorized. HIS Plan benefits are;not guaranteed and
are subject to annual legislative appropriation. In the event the legislative
appropriation or available funds fail to provide full subsidy benefits to all participants,
benefits may be reduced or cancelled.
Pension Liabilities,Pension Expense,and Deferred Outflow, of Resources
and Deferred Inflows of Resources Related to the HIS Plan. At September
30, 2018,the District reported a HIS liability of$667,117 for its proportionate share
of the net 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 ruly 1, 2018. The
District's proportionate share of the net HIS liability was based qn the District's
IMMOKALEE FIRE CONTROL DISTRICT Page 36 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
HIS Plan,continued
Actuarial Assumptions. The total pension liability in the July _., 2017, actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.60 percent
Real Payroll Growth 0.65 percent
Salary Increases 3.25 percent, average, including inflation
Municipal Bond Rate 3.87 percent
Mortality rates were based on the Generational RP-2000 with Projected Scale BB.
Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has
been completed for the Plan.
Discount Rate. The discount rate used to measure the total HIS liability was
3.87 percent. In general, the discount rate for calculating the total HIS liability is
equal to the single rate equivalent to discounting at the long-tern i expected rate of
return for benefit payments prior to the projected depletion date. Because the HIS
benefit is essentially funded on a pay-as-you-go basis, the depletion date is
considered to be immediate, and the single equivalent discount rate is equal to the
municipal bond rate selected by the plan sponsor. The Bond Buyer General
Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal
bond index.
Sensitivity of the District's Proportionate Share of the Net HIS Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net HIS liability calculated using the discount rate of
3.87 percent, as well as what the District's proportionate share o the net HIS
liability would be if it were calculated using a discount rate that is 1-percentage-point
lower(2.87 percent)or 1-percentage-point higher(4.87 percent) than the current
rate:
1% Current 1%
Decrease Discount Rate Increase
(2.87%) (3.87%) (4.87%)
District's proportionate share of
the net HIS liability $ 759,808 $ 667,117 $ 589,855
III
IMMOKALEE FIRE CONTROL DISTRICT Page 37 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
HIS Plan.continued
Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's
fiduciary net position is available in the separately issued FRS Pension Plan and
Other State Administered Comprehensive Annual Financial Report(FRS CAFR)
dated June 30, 2018.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O.Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2018,the District reported a
payable of$0 for the outstanding amount of contributions to the HIS plan required
for the fiscal year ended September 30, 2018.
FRS -Defined Contribution Pension Plan
The SBA administers the defined contribution plan officially titled the FRS Investment
Plan(Investment Plan). The Investment Plan is reported in the SBA's annual financial
statements and in the State of Florida Comprehensive Annual Financial Report.
As provided in Section 121.4501, Florida Statutes,eligible FRS members may elect
to participate in the Investment Plan in lieu of the FRS defined benefit plan. District
employees participating in DROP are not eligible to participate in the Investment
Plan. Employer and employee contributions, including amounts contributed to
individual member's accounts, are defined by law,but the ultimate benefit depends in
part on the performance of investment funds. Benefit terms, including contribution
requirements,for the Investment Plan are established and may be amended by the
Florida Legislature. The Investment Plan is funded with the same employer and
employee contribution rates that are based on salary and membership class (Regular
Class,Elected County Officers,etc.), as the FRS defined benefit plan. Contributions
IMMOKALEE FIRE CONTROL DISTRICT Page 38 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS -Defined Contribution Pension Plan,continued
are directed to individual member accounts, and the individual members allocate
contributions and account balances among various approved investment choices.
Costs of administering the plan, including FRS Financial Guidance Program, are
funded through an employer contribution of 0.06 percent of payroll and by forfeited
benefits of plan members. Allocations to the investment member's accounts during
the 2017-18 fiscal year were as follows:
Percent of Gres Salary*
Class Employee Employ9k(1) Employer(3)
Florida Retirement System,Regular 3.00 7.91 8.26
Florida Retirement System,Senior Management Service 3.00 22.7 24.06
Florida Retirement System,Special Risk 3.00 23.21 24.50
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 13.2*1i 14.03
Florida Retirement System,Reemployed Retiree (2) N/A N/A
Florida Retirement System,Elected Official 3.00 45.511 48.70
Notes:
(1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Aiso,
employer rates,other than for DROP participants,include.06 percent for administrative o rsts for
the Investment Plan. Rates for 7/1/17-6/30/18.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. A,so,
employer rates,other than for DROP participants,include.06 percent for administrative costs for
the Investment Plan. Rates for 7/1/18-6/30/19.
* As defined by the Plan.
For all membership classes,employees are immediately vested in their own
contributions and are vested after 1 year of service for employer contributions and
investment earnings. If an accumulated benefit obligation for service credit originally
earned under the FRS Pension Plan is transferred to the Investment Plan, the member
must have the years of service required for FRS Pension Plan vesting(including the
service credit represented by the transferred funds)to be vested for these funds and
the earnings on the funds. Nonvested employer contributions are placed in a
suspense account for up to 5 years. If the employee returns to FRS-covered
employment within the 5-year period,the employee will regain control over their
account. If the employee does not return within the 5 year period, the employee will
forfeit the accumulated account balance. For the fiscal year ended September 30,
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 District.
IMMOKALEE FIRE CONTROL DISTRICT Page 39 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G - RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS -Defined Contribution Pension Plan,continued
After termination and applying to receive benefits,the member may rollover vested
funds to another qualified plan, structure a periodic payment under the Investment
Plan,receive a lump-sum distribution,leave the funds invested for future distribution,
or any combination of these options. Disability coverage is provided;the member
may either transfer the account balance to the FRS Pension Plan when approved for
disability retirement to receive guaranteed lifetime monthly benefits under the FRS
Pension Plan, or remain in the Investment Plan and rely upon that account balance for
retirement income.
The District's Investment Plan pension expense totaled$206,088 for the fiscal year
ended September 30, 2018.
Payables to the Investment Plan. At September 30, 2018,the District reported a
payable of$0 for the outstanding amount of contributions to the Plan required for the
fiscal year ended September 30, 2018.
NOTE H- PROPERTY TAXES
Property taxes are levied after formal adoption of the District's budget and become
due and payable on November 1 of each year and are delinquent on April 1 of the
following year. Discounts on property taxes are allowed for payments made prior to
the April 1 delinquent date. Tax certificates are sold to the public for the full amount
of any unpaid taxes and must be sold not later than June 1 of each year. The billing,
collection, and related recordkeeping of all property taxes is performed for the
District by the Collier County Tax Collector. No accrual for the property tax levy
becoming due in November 2018 is included in the accompanying financial
statements,since such taxes are collected to finance expenditures of the subsequent
period.
Procedures for collecting delinquent taxes, including applicable tax certificate sales
and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is
approximately two years after taxes become delinquent and occurs only upon request
of a holder of a delinquent tax certificate. As of September 30, 2018, $28,786 was
due from the Collier County Tax Collector for ad valorem taxes and excess fees.
IMMOKALEE FIRE CONTROL DISTRICT Page 40 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE H- PROPERTY TAXES,CONTINUED
Important dates in the property tax cycle are as follows:
Assessment roll certified July 1
Millage resolution approved No later than 93 days following
certification of asse:csment roll
Beginning of fiscal year for which
taxes have been levied October 1
Taxes due and payable(levy date) November 1 with various discount
provisions through;March 31
Property taxes payable-
maximum discount(4 percent) 30 days after levy date
Due date March 31
Taxes become delinquent(lien date) April 1
Tax certificates sold by the Collier
County Tax Collector Prior to June 1
For the year ended September 30, 2018, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of$3.75 per$1,000(3.75 mills)of the 2017
net taxable value of real property located within the District.
NOTE I- IMPACT FEE FUND ACTIVITY
During the year ended September 30,2018, the Impact Fee Func,had the
following activity:
Amount
Unearned revenue, October 1, 2017 $ 4,147,807
Impact fee receipts* 955,465
Interest income 30,285
Transfer In from General Fund -
Commissions(admin fee) -paid to Collier County (9,549)
Capital outlay (130,406)
Unearned revenue, September 30,2018 $ 4,993,602
* Includes $110,400 due from Collier County.
IMMOKALEE FIRE CONTROL DISTRICT Page 41 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE J- RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of,damage to,
and destruction of assets;errors and omissions; injuries to employees; and natural
disasters.
Insurance programs for general/professional liability,automobile and property are
covered by commercial insurance. The District retains the risk of loss up to a
deductible amount(ranging from$0 to$2,500)with the risk of loss in excess of this
amount transferred to the insurance carrier with limits of liability of$1,000,000 per
occurrence and$10,000,000 in the aggregate. The District is third party insured
for employee health,dental and vision as well as workers'compensation.
NOTE K- FUND BALANCE ALLOCATIONS
Fund balance was allocated for the following purposes at September 30,2018:
Nonspendable Fund Balance Amount
General Fund
Prepaid expenditures $ -
Total Nonspendable Fund Balance-General Fund $ -
Assigned Fund Balance Amount
General Fund
Assigned for fiscal year startup(90 day operations) $ 1,100,000
Fleet reserves 250,000
Disaster reserves 549,557
Total Assigned Fund Balance-General Fund $ 1,899,557
NOTE L- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB)
Plan Description
The District's defined contribution OPEB Plan provides the opportunity to obtain
health insurance,pharmacy,dental and vision benefits to its retired employees and
their dependents. The year ended September 30, 2018 was the District's transition
year and as such,the District implemented GASB No.75 "Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions". GASB No. 75
IMMOKALEE FIRE CONTROL DISTRICT Page 42 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE L- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB),CONTINUED
Plan Description.continued
requires the District record its actuarially determined total OPEB liability as well as
the restatement of the District's beginning net position balance !for the year ended
September 30,2018.
All retired full-time employees are eligible for OPEB benefits if actively employed by
the District immediately before retirement. As of September 34), 2018,there were
retirees eligible to receive benefits. At September 30, 2018 thele were thirty two
(32)active District employees. The benefits are provided both with contractual or
labor agreements. The benefits may require contribution from'the retirees,depending
on certain specified criteria and,in particular, length of creditable employment. The
minimum retirement age is 62. The minimum years of service requirement is 10
years.
The retiree's premiums for these benefits totaled$6,402 during the year ended
September 30, 2018, of which the District paid$6,402.
Funding Policy
The District's OPEB benefits are unfunded.The retiree is eligible for benefits under
the District's health and pharmacy plan, but is obligated to reimburse the District for
100%of the cost of the retiree's health coverage. As such,the District has no
ultimate obligation for the retiree's health insurance premium. The District acts as
agent for the retiree on a pay-as-you-go basis and recognizes expenditures at the
time the premiums are due. The District does, however, incur the cost of premium
rate being increased on its active employees due to providing coverage to its retirees.
The District has not determined if a separate trust fund or equi""alent arrangement will
be established into which the District would make contributions to advance-fund the
obligation. Therefore, no separate financial statement is issued. All required
disclosures are presented herein. The Plan's measurement date was September 30,
2018.
IMMOKALEE FIRE CONTROL DISTRICT Page 43 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE L - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB),CONTINUED
Funding Policy,continued
The retiree pays 100% of the retiree health only coverage for Administration and
55%for high risk less the FRS health insurance subsidy(HIS)reimbursement amount
until age 65.The retiree may purchase dependent coverage through the District. At
age 65 the retiree then must move to Medicare but may continue to purchase dental
and vision coverage through the District. The District finances the benefits on a
pay-as-you-go basis and recognizes expenditures at the time the premiums are due.
The District subsidizes the premium rates paid by retirees by allowing them to
participate at blended premium rates for both active and retired employees. These
rates provide an implicit subsidy for retirees because, on an actuarial basis,retiree
claims are expected to result in higher costs to the plan on average than those of
active employees.
The projection of future benefit payments for an ongoing plan involves estimates of
the value of reported amounts and assumptions about the probability of occurrence of
events far into the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding the funded
status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new
estimates are made about the future. The schedule of funding progress presents
multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive
plan(the plan as understood by the employer and plan members)and include types
of benefits provided at the time of each valuation and the historical pattern of sharing
of benefit costs between the employer and plan members to that point. The methods
and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
IMMOKALEE FIRE CONTROL DISTRICT Page 44 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE L- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Actuarial Methods and Assumptions,continued
At September 30,2018,the District's Net OPEB Liability of$507,058 was
measured as of September 30, 3018,and was determined by an actuarial valuation
as of that date using the alternate measurement method. The following actuarial
assumptions and other inputs were applied to all periods included in the
measurement:
The following simplifying assumptions were made:
Mortality-Life expectancies were based on RP2000 Mortality Tables for Males and
Females projected 10 years.
Annual healthcare cost trend using the Society of Actuaries Long-Ru n Medical Cost
Trend Model baseline assumptions with an initial rate of 4.6%per y4ar trending to
4.70%by 2028.
Turnover-Non-group-specific age-based turnover data from GASB Statement 45
were used as the basis for assigning active members a probability of remaining
employed until the assumed retirement age and for developing an expected future
working lifetime assumption for purposes of allocating to periods thou present value
of total benefits paid.
Amortization Period: Rolling 20 year amortization
Amortization Method: level percentage of payroll
The discount rate was 4.23%(for 2018)(2.8%for 2017)and was based on the 20
Year Municipal Bond Rate with AA/Aa or higher.
Entry age normal cost method was used.
Salary Increases 2.50%
Discount Rate 4.23%
The FRS salary scale was used
Participation percentage: 50%
The actuarial assumptions used in the September 30,2018 valuation were based on
results of an actuarial experience study performed for the FRS Retirement Plan.
The rationales for selecting each of the assumptions used in the finalicial accounting
valuation and for the assumptions changes summarized above are to rest reflect the
current market conditions and recent plan experience.
IMMOKALEE FIRE CONTROL DISTRICT Page 45 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE L- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB),CONTINUED
Changes in the Net OPEB Liability
Amount
Balance at September 30,2017 $ 471,759
Changes for the Year:
Service Cost 31,359
Interest Cost on Total OPEB Liability 13,731
Change in Benefit Terms -
Difference Between Expected and Actual Experience 116,389
Changes in Assumptions (100,573)
Benefit Payments (25,607)
Net Changes 35,299
Balance at September 30,2018 $ 507,058
The following presents the net OPEB liability of the District as well as what the
District's net OPEB liability would be if it were calculated using a discount rate that
is 1 percent higher or 1 percent lower than the current discount rate.
1%Decrease Current Rate 1%Increase
3.23% 4.23% 5.23%
Net OPEB Liability $ 575,197 $ 507,058 $ 448,049
The following presents the net OPEB liability of the District as well as what the
District's net OPEB liability would be if it were calculated using healthcare trend
rates that are 1 percent higher or 1 percent lower than the current healthcare trend
rate.
1%Decrease Trend Rate 1%Increase
2.0-6.6% 3.0-7.6% 4.0-8.6%
Net OPEB Liability $ 432,637 $ 507,058 $ 597,947
IMMOKALEE FIRE CONTROL DISTRICT Page 46 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE L - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Changes in the Net OPEB Liability,continued
For the year ended September 30,2018, the District recognized OPEB expense credit
of$35,299. At September 30,2018,the District reported deferred outflows of
resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources* Resources*
Differences Between Expected and
Actual Experience -
Changes in Assumptions
Net difference between projected
and actual earnings
Employer contribution subsequent
to measurement date - -
Total $ - $ -
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended September 30: Amount*
2019 $ -
2020 -
2021 -
2022 _
2023 -
Total Thereafter -
$ -
*Per GASB No. 75 paragraph 43(a) since the District used the alternative measurement
method the effects of assumptions are recognized immediately. As such, since the Plan
holds no assets their deferred inflows/outflows are zero.
1
1
IMMOKALEE FIRE CONTROL DISTRICT Page 47 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE M- DEFICIT UNRESTRICTED NET POSITION (NET ASSETS)
During the year ended September 30, 2018, the District's unrestricted net position (net
assets)balance was again a deficit and totaled$(1,289,267), due substantially to
recording the current year actuarially determined net pension liability of$4,323,634
and the net OPEB liability of$507,058. The District's total available fund balance at
September 30, 2018 remains approximately equal to five(5)months of actual
expenditures. However,the Board has previously assigned$1,842,867 of the
$1,899,557 available fund balance for specific purposes.
During the year ended September 30, 2017, the District's unrestricted net position(net
assets)balance was again a deficit and totaled$(669,338),due substantially to
recording the current year actuarially determined net pension liability of$4,045,107.
The District's total available fund balance at September 30,2017 remains
approximately equal to five(5)months of actual expenditures. However,the Board has
previously assigned$1,455,453 of the$1,656,297 available fund balance for specific
purposes.
During the year ended September 30, 2016,the District's unrestricted net position (net
assets)balance was again a deficit and totaled$(157,053),due substantially to
recording the current year actuarially determined net pension liability of$2,991,948.
The District's total available fund balance at September 30, 2016 remains
approximately equal to six (6)months of actual expenditures. However,the Board has
assigned$1,340,382 of the$1,705,121 available fund balance for specific purposes.
During the year ended September 30, 2015, the District's unrestricted net position(net
assets)balance became a deficit and totaled$(58,458), due substantially to recording
the current year actuarially determined net pension liability of$1,226,192. The
District's total available fund balance at September 30, 2015 remains approximately
equal to four(4)months of actual expenditures. However, the Board assigned
$1,057,074 of the$1,472,132 available fund balance for specified purposes.
IMMOKALEE FIRE CONTROL DISTRICT Page 48 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE N- COMMITMENTS
In September 2018,the District entered into an agreement with Collier County(the
"County")with the intention of constructing a multi-purpose public safety center(PSC)
in the Town of Ave Maria. The County is in possession of four acres of land, three of
which are known as demised premises. The demised premises intended to be
developed into the PSC.This PSC will be utilized for fire, sheriff, and emergency
medical services. In connection to the cost of constructing the PSC, Immokalee Fire
Control District paid$121,000 as the District intends to own the PSC. In doing so,the
County agreed to pay the District annual rent in the amount of$4,033 over the course
of 30 years.The District is responsible for all costs associated vyith the construction of
the building, including surveying,permitting, architect fees,consultant fees,and other
professional services relating to the construction of the PSC.
During the year ended September 30, 2018,the District recorded the$121,000
payment as construction in progress for the building in addition to$9,406 for architect
fees.
NOTE O- CHANGES IN ACCOUNTING PRINCIPLE
During the year ended September 30,2018, the District implemented GASB
Statement No.75, "Accounting and Financial Reporting for Po:temployment Benefits
Other Than Pensions".The implementation of the pronouncement required the
restatement of the District's September 30, 2017 governmental .activities -net
position as follows:
Governmental Activities Amount
Net Position, as Previously Reported $ 1,412,636
Cummulative Affect of GASB No. 75
Other Post Employment Liability(OPEB) (268,334)
Net Position,As Restated $ 1,144,302
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
IMMOKALEE FIRE CONTROL DISTRICT Page 49 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND -
SUMMARY STATEMENT
Year Ended September 30,2018
General Fund
Variance
Original Final Favorable
Budget Budget Actt•al (Unfavorable)
REVENUES
Ad Valorem taxes $ 3,341,146 $ 3,423,167 $ 1,423,086 $ (81)
Intergovernmental revenues:
Federal public safety grant-SAFER/AFG 431,660 311,450 327,554 16,104
State grant - - -
State firefighter supplemental 3,840 3,840 3,710 (130)
Local government grant-CDGB 350,000 - - -
Inspection fees - - - -
Public safety services - - - -
Miscellaneous:
Interest 8,000 15,000 14,856 (144)
Other 197,370 138,870 124,405 (14,465)
Reserves brought forward 1,600,000 1,723,0681_____ (1,723,068)
TOTAL REVENUES 5,932,016 5,615,395 ,/,893,611 (1,721,784)
EXPENDITURES
Current
Public safety
Personnel services 3,572,897 3,479,549 1,459,410 20,139
Operating expenditures 698,674 823,674 749,119 74,555
Capital outlay 362,000 49,305 178,940 (129,635)
Debt service
Principal reduction - - 11,575 (11,575)
Interest and fiscal charges - - - -
Assigned-90 day reserve 900,000 1,100,000 - 1,100,000
Assigned-Fleet Reserves - 250,000 - 250,000
Assigned-Accrued liabilities - - - -
Assigned-Disaster Reserves 270,933 492,867 - 492,867
Assigned-800 Radio Reserves - - - -
Assigned-GASB reserve - - - -
Reserves-unassigned 127,512 - - -
TOTAL EXPENDITURES 5,932,016 6,195,395 4,399,044 1,796,351
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - (580,000) +(505,433) 74,567
OTHER FINANCING SOURCES(USES)
Operating transfers in - - - -
Proceeds from capital leases - - 101,432 101,432
Proceeds from disposition of capital assets - 580,000 580,491 491
TOTAL OTHER FINANCING SOURCES(USES) - 580,000 68�1,923 101,923
NET CHANGE IN FUND BALANCE $ - $ - 176,490 $ 176,490
FUND BALANCE-Beginning 1,723,067
FUND BALANCE-Ending $ 1,899,557
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 50 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND
DETAILED STATEMENT
Year Ended September 30,2018
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ 3,341,146 $ 3,423,167 $ 3,423,086 $ (81)
Intergovernmental revenues: -
Federal public safety grants-SAFER/AFG 431,660 311,450 327,554 16,104
State grant - - - -
State firefighter supplemental 3,840 3,840 3,710 (130)
Local government grants-CDGB 350,000 - - -
Inspection fees - - - -
Public safety services _ _ - -
Miscellaneous:
Interest income 8,000 15,000 14,856 (144)
Seminole contract 50,000 - - -
PILT farm workers village 56.650 56,650 56,150 (500)
Donations 100 100 - (100)
User fees-rent 6,120 6,120 7,915 1,795
Other income 84,500 76,000 60,340 (15,660)
Subtotal 4,332,016 3,892,327 3,893,611 1,284
Reserves brought forward 1,600,000 1,723,068 - (1,723,068)
TOTAL REVENUES 5,932,016 5,615,395 3,893,611 (1,721,784)
EXPENDITURES
PERSONNEL SERVICES
Salaries
Firefighters&administrative 1,984,722 1,876,374 1,761,622 114,752
EMT incentive pay - - 4,463 (4,463)
Overtime pay 170,000 190,000 281,113 (91,113)
Holiday pay 50,000 50,000 50,577 (577)
Vacation&sick sell back pay 64,000 19,000 26,024 (7,024)
Separation pay - - _
Payroll taxes
Social Security 151,831 171,831 160,489 11,342
Benefits
Retirement 460,578 480,578 489,104 (8,526)
Group insurance 587,972 587,972 587,561 411
Workers compensation 103,794 103,794 98,457 5,337
Unemployment - - - -
SUBTOTAL-PERSONNEL SERVICES 3,572,897 3,479,549 3,459,410 20,139
OPERATING
Contracted Services
Physicals 8,300 8,300 8,443 (143)
Bank service charges - - - -
Legal fees 31,000 31,000 22,678 8,322
Property appraiser fees 23,353 23,353 23,104 249
Tax collection fees 63,211 63,211 69,810 (6,599)
Contracted services 122,060 122,060 128,501 (6,441)
Generators 2,000 2,000 1,147 853
Pest control 1,125 1,125 680 445
Subtotal-Contracted services 251,049 251,049 254,363 (3,314)
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 51 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL -GENERAL FUND
DETAILED STATEMENT- CONTINUED
Year Ended September 30,2018
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
OPERATING,CONTINUED
Operating
Education and training 52,500 52,500 32,830 19,670
Travel 12,500 12,500 16,645 (4,145)
Communications-telephone 15,000 15,000 18,665 (3,665)
Postage 600 600 204 396
Utilities 20,500 20,500 20,218 282
Explorer program 2,000 2,000 - 2,000
Liability insurance 57,400 57.40054 706 2.694
Subtotal-Operating 160,500 160,500 143,268 17,232
Maintenance
Vehicle 61,500 151,500 115,705 35,795
Equipment-firefighter and rescue 39,000 39,000 12,475 26,525
Office equipment - - - -
Computer - - - -
Communications-radio - - - -
Building 22,500 37,500 37,381 119
Bunker gear 7,500 7,500 654 6,846
Cascade system - - -
Subtotal-Maintenance 130,500 235,500 66,215 69,285
Legal advertising 2,800 2,800 5,902 (3,102)
Supplies
Office 3,000 3,000 3,538 (538)
Shipping 900 900 3,468 (2,568)
Firefighter rescue 39,500 39,500 23,885 15,615
Station-janitorial 5,750 5,750 6,678 (928)
Training - - - -
Fuel and oil 40,625 40,625 48,710 (8,085)
Uniforms 21,000 21,000 28,863 (7,863)
Employee - - - -
Physical fitness equipment 1,200 1,200 - 1,200
Inter-departmental - - - -
Computer software and training 5,500 5,500 119,834 (14,334) j
Miscellaneous 1,750 21,750 18,300 3,450
Bunker gear 15,000 15,000 19,652 (4,652)
Fire prevention - - - -
Communication(radio) - - - -
Communication(phone) - - - -
Station-non janitorial - - - -
Public education 2,500 2,500 524 1,976
Furniture 7,800 7,800 458 7,342
Computer equipment - - -
Fire Inspection - - - -
Operating - - - -
Minor equipment 4,500 4,500 1,573 2,927
Tires&batteries - - - -
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 52 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND
DETAILED STATEMENT-CONTINUED
Year Ended September 30,2018
Genera]Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
Books and dues 4,800 4,800 3,888 912
Subtotal-Supplies 153,825 173,825 179,371 (5,546)
SUBTOTAL-OPERATING EXPENDITURES 698,674 823,674 749,119 74,555
Capital lAnd 350,000 2,000 - 2,000
Firefighter rescue equipment - 35,305 45,430 (10,125)
Communication equipment - - - -
Building - - - -
Vehicles 8,500 8,500 133,510 (125,010)
Bunker gear - - - _
Furniture-Office 3,500 3,500 - 3,500
Station equipment - - -
Computer equipment - - - -
SUBTOTAL-CAPITAL OUTLAY 362,000 49,305 178,940 (129,635)
Debt service
Principal retirement - - 11,575 (11,575)
Interest charges and fiscal - - - -
SUBTOTAL-DEBT SERVICE - 11,575 (11,575)
Assigned-90 day OPS 900,000 1,100,000 - 1,100,000
Assigned-Fleet Reserves - 250,000 - 250,000
Assigned-Accrued Liabilities - - - -
Assigned-Disaster Reserves 270,933 492,867 - 492,867
Assigned-800 Radio Reserves - - - -
Assigned-GASB Reserves - - - -
Reserves-Unassigned 127,512 - - -
TOTAL EXPENDITURES 5,932,016 6,195,395 4,399,044 1,796,351
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - (580,000) (505,433) 74,567
OTHER FINANCING SOURCES(USES)
Proceeds from capital leases - - 101,432 101,432
Proceeds from disposition of capital assets - 580,000 580,491 491
TOTAL OTHER FINANCING SOURCES(USES) - 580,000 681,923 101,923
NET CHANGE IN FUND BALANCE $ - $ - 176,490 $ 176,490
FUND BALANCE-BEGINNING 1,723,067
FUND BALANCE-ENDING $ 1,899,557
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 53 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES l,N
FUND BALANCE-BUDGET AND ACTUAL-IMPACT FEE FUND
SUMMARY STATEMENT
Year Ended September 30,2018
Impact Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ - $ - $ - $ -
Impact fees 397,500 955,464 109,670 (845,794)
Intergovernmental revenue-grants - - - -
Miscellaneous:
Interest 5,000 30,285 30,85 -
Other - - _ -
Cash brought forward 3,900,000 4,147,806 - (4,147,806)
TOTAL REVENUES 4,302,500 5,133,555 139,955 (4,993,600)
EXPENDITURES
Current
Public safety
Personnel services _ - - -
Operating expenditures 5,963 10,000 9,549 451
Capital outlay 3,300,000 9,500 130,406 (120,906)
Debt service
Principal reduction - - - -
Interest and fiscal charges - - - -
Cash carried forward 996,537 5,114,055 - 5,114,055
TOTAL EXPENDITURES 4,302,500 5,133,555 139,D55 4,993,600
EXCESS OF REVENUES
OVER EXPENDITURES - - - -
OTHER FINANCING SOURCES(USES)
Operating transfers in - - - -
Operating transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) - - -
NET CHANGE IN FUND BALANCE $ $ - - $ -
FUND BALANCE-Beginning -
FUND BALANCE-Ending $ -
The accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT
SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY -FLORIDA RETIREMENT SYSTEM(FRS) PENSION
PLAN (1)
2018 2017 2016 2015
District's proportion of the net pension liability 0.012139622% 0.011523968% 0.009463726% 0.006183105%
District's proportionate share of the net pension liability $ 3,656,517 $ 3,408,712 $ 2,389,598 $ 798,631
District's covered-employee payroll $ 2,199,804 $ 2,117,620 $ 1,735,883 $ 1,298,578
District's proportionate share of the net pension liability
as a percentage of its covered-employee payroll 166.22% 160.97% 137.66% 61.50%
Plan fiduciary net position as a percentage of the
total pension liability 84.26% 83.89% 84.88% 92.00%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS-
FLORIDA RETIREMENT SYSTEM(FRS)PENSION PLAN(1)
2018 2017 2016 2015
Contractually required contribution $ 454,867 $ 381,858 $ 365,318 $ 236,175
Contributions in relation to the contractually
required contribution 454,867 381,858 365,318 236,175
Contribution deficiency(excess) $ - $ - $ - $ -
District's covered-employee payroll $ 2,199,804 $ 2,117,620 $ 1,735,883 $ 1,298,578
Contributions as a percentage of covered-employee
payroll 20.68% 18.03% 21.05% 18.19%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled,
governments should present information for only those years for which information is available.
Page 54 of 67
2014
0.006001750%
$ 366,195
$ 1,199,275
30.53%
96.09%
2014
$ 209,820
209,820
$
$ 1,199,275
17.50%
IMMOKALEE FIRE CONTROL DISTRICT
SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY -HEALTH INSURANCE SUBSIDY(HIS)PENSION
PLAN(1)
2018 2017 2016 2015
District's proportion of the net pension liability 0.006303007% 0.005951814% 0.005168356% 0.004192421%
District's proportionate share of the net pension liability $ 677,117 $ 636,395 $ 602,350 $ 427,561
District's covered-employee payroll $ 2,199,804 $ 2,117,620 $ 1,735,883 $ 1,298,578
District's proportionate share of the net pension liability
as a percentage of its covered-employee payroll 30.78% 30.05% 34.70% 32.93%
Plan fiduciary net position as a percentage of the
total pension liability 2.15% 1.64% 0.97% 0.50%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
HEALTH INSURANCE SUBSIDY(HIS)PENSION PLAN(1)
2018 2017 2016 2015
Contractually required contribution $ 34,237 $ 28,742 $ 29,194 $ 19,237
Contributions in relation to the contractually
required contribution 34,237 28,742 29,194 19,237
Contribution deficiency(excess) $ - $ - $ - $
District's covered-employee payroll $ 2,199,804 $ 2,117,620 $ 1,735,883 $ 1,298,578
Contributions as a percentage of covered-employee
payroll 1.56% 1.36% 1.68% 1.48%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However,until a full 10-year trend is compiled,
governments should present information for only those years for which information is available.
Page 55 of 67
2014
0.004035317%
$ 377,312
$ 1,199,275
31.46%
0.99%
2014
$ 14,244
14,244
$ 1,199,275
1.19%
IMMOKALEE FIRE CONTROL DISTRICT Page 56 of 67
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30,2018
Changes of Assumptions
Actuarial assumptions for both cost-sharing defined benefit plans are reviewed
annually by the Florida Retirement System Actuarial Assumptions Conference. The
FRS Pension Plan has a valuation performed annually. The HIS Program has a
valuation performed biennially that is updated for GASB reporting in the year a
valuation is not performed. The most recent experience study for the FRS Pension
Plan was completed in 2014 for the period July 1, 2008, through June 30,2013.
Because the HIS Program is funded on a pay-as-you-go basis, no experience study
has been completed for that program. The actuarial assumptions that determined the
total pension liability for the HIS Program were based on certain results of the most
recent experience study for the FRS Pension Plan.
The total pension liability for each cost-sharing defined benefit plan was determined
using the individual entry age actuarial cost method. Inflation increases for both plans
is assumed at 2.60%. Payroll growth, including inflation,for both plans is assumed at
3.25%. Both the discount rate and the long-term expected rate of return used for
FRS Pension Plan investments was reduced from 7.10%to 7.00%. The plan's
fiduciary net position was projected to be available to make all projected future
benefit payments of current active and inactive employees. Therefore, the discount
rate for calculating the total pension liability is equalto the long-term expected rate of
return.
Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond
rate was increased from 3.58% to 3.87%and was used to determine the total pension
liability for the program(Bond Buyer General Obligation 20-Bond Municipal Bond
Index).Mortality assumptions for both plans were based on the Generational
RP-2000 with Projection Scale BB tables.
Florida Retirement System Pension Plan
There were changes in actuarial assumptions. As of June 30, 2018,the inflation rate
assumption remained at 2.6 percent,the real payroll growth assumption was 0.65
percent, and the overall payroll growth rate assumption remained at 3.25 percent.
The long-term expected rate of return was reduced from 7.10 percent to 7.00
percent.
Health Insurance Subsidy Pension Plan
The municipal rate used to determine total pension liability increased from 3.58
percent to 3.87 percent.
IMMOKALEE FIRE CONTROL DISTRICT Page 57 of 67
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30,2018
Pension Expense and Deferred Outflows/Inflows of Resources
In accordance with GASB 68,paragraphs 54 and 71,changes in the net pension
liability are recognized in pension expense in the current measu:•ement period,except
as indicated below. For each of the following, a portion is recol;nized in pension
expense in the current reporting period, and the balance is amor.ized as deferred
outflows or deferred inflows of resources using a systematic anci rational method over
a closed period,as defined below:
• Differences between expected and actual experience with regard to economic
and demographic factors -amortized over the average expected remaining
service life of all employees that are provided with pensions through the
pension plan(active and inactive employees)
• Changes of assumptions or other inputs-amortized over the average
expected remaining service life of all employees that are Irovided with
pensions through the pension plan(active and inactive employees)
• Changes in proportion and differences between contributions and
proportionate share of contributions-amortized over the average expected
remaining service life of all employees that are provided with pensions through
the pension plan (active and inactive employees)
• Differences between expected and actual earnings on pension plan investments
-amortized over five years
Employer contributions to the pension plans from employers arc not included in
collective pension expense. However,employee contributions etre used to reduce
pension expense.
The average expected remaining service life of all employees provided with pensions
through the pension plans at June 30,2018, remained at 6.4 yeats for FRS and 7.2
years for HIS.
IMMOKALEE FIRE CONTROL DISTRICT Page 58 of 67
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS GASB 75
Changes in Employer's Net OPEB Liability and Related Ratios as of September 30:
Net OPEB Liability 2018
Service Cost $ 31,359
Interest Cost on Total OPEB Liability 13,731
Changes in Benefit Terms -
Differences Between Expected and Actual Experience 116,389
Changes in Assumptions (100,573)
Benefit Payments (25,607)
Net Change in net OPEB Liability 35,299
Net OPEB Liability-Beginning of Year 471,759
Net OPEB Liability-End of Year $ 507,058
NOTE: Information for FY 2017 and earlier is not available.
Plan Fiduciary Net Position as of September 30:
2018
Contributions-Employer $ 25,607
Net Investment Income -
Benefit Payments (25,607)
Administrative Expense
Net Change in Fiduciary Net Position -
Fiduciary Net Position-Beginning of Year -
Fiduciary Net Position-End of Year $ -
Net OPEB Liability 507,058
Fiduciary Net Position as a%of Net OPEB Liability 0.00%
Covered-Employee Payroll*
Net OPEB Liability as a%of Payroll*
*Because this OPEB plan does not depend of salary,no information is provided.
NOTE: Information for FY 2017 and earlier is not available.
Notes to the Schedule:
Benefit Changes None
Changes of Assumptions The discount rate was changed as follows:
9/30/17 2.80%
9/30/18 4.23%
Population covered by Plan: 32 active 1 retired
Plan has no specific trust established.$0 assigned for OPEB.
ADDITIONAL REPORTS
T I US CAN T Affiliations
11111 Florida Institute of Certified Public Accountants
& Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountant§&Consultants Tax Division
Page 59 of 67
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF BASIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee,Florida 34142
We have audited,in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America,the basic financial
statements of the governmental activities and each major fund of Immokalee Fire Control District
(the "District")as of and for the year ended September 30, 2018 and the related notes to the
financial statements which collectively comprise the District's basic financial statements as listed in
the table of contents and have issued our report thereon dated February 25,2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements,we considered the District's
internal control over financial reporting(internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements,but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control. Accordingly,we do not express an opinion on the effectiveness of the District's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions,to prevent
or detect and correct misstatements on a timely basis.
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane,Building 55•Fort Myers,FL 33907 •Phone:(239)333-2090•Fax: (239)333-2097
Page 60 of 67
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 Immokalce Fire Control
District's basic financial statements will not be prevented or detected and corrected on a timely
basis. A significant deficiency is a deficiency,or a combination of deficiencies,in internal control
that is less severe than a material weakness,yet important enough to merit attention by those
charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations dining our audit,we did
not identify any deficiencies in internal control that we consider to be material weaknesses as
defined previously. However,material weaknesses may exist that were not identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Immokalee Fire Ccntrol District's basic
financial statements are free from material misstatement,we performed tests of its compliance with
certain provisions of laws,regulations,contracts and grant agreements,noncompliance with which
could have a direct and material effect on the determination of basic financial statement amounts.
However,providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly,we do not express such an opinion. The results of our tests disclosed
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards. Such matters are noted in our Independent Auditor's Report to Management
dated February 25,2019.
The District's Response to Findinas
The District's response to the findings identified in our audit is described in the accompanying
Management's Response to Independent Auditor's Report to Management. The District's
response was not subjected to the auditing procedures applied in the audit of the financial
statements and,accordingly,we express no opinion on it.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of iniernal control and
compliance and the results of that testing,and not to provide an opinion on the effectiveness of the
District's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly,this communication is not suitable for any other purpose.
4
1°.,4140) 4444,0041 , ' r
TUSCAN&COMPANY,P.A.
Fort Myers, Florida
February 25,2019
-1,--
u
,,. , ---,
v ! TUSCAN Affiliations
Florida Institute of Certified Public Accountants Accountants
American Institute of Certified
& Company, PA Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 61 of 67
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415,FLORIDA STATUTES
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee,Florida 34142
We have examined Immokalee Fire Control District's compliance with Section 218.415,Florida
Statutes,regarding the investment of public funds during the year ended September 30,2018.
Management is responsible for Immokalee Fire Control District's compliance with those
requirements. Our responsibility is to express an opinion on Immokalee Fire Control District's
compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and,accordingly, included examining,on a test
basis,evidence about Immokalee Fire Control District's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our examination provides a reasonable basis for our opinion. Our examination does not
provide a legal determination on Immokalee Fire Control District's compliance with specified
requirements.
In our opinion,Immokalee Fire Control District complied,in all material respects,with the
aforementioned requirements for the year ended September 30,2018.
This report is intended solely for the information and use of Immokalee Fire Control District and
the Auditor General, State of Florida,and is not intended to be and should not be used by anyone
other than these specified parties.
, f
7,,,,,,,,,i.iii i 434,,,01.
TUSCAN&COMPANY, P.A.
Fort Myers, Florida
February 25,2019
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907 •Phone: (239) 333-2090•Fax:(239)333-2097
TU CAN Affiliations
Floril�a Institute of Certified Public Accountants
& Company, PA Amerlcna Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultant. Tax Division
Page 62 of 67
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee,Florida 34142
We have audited the accompanying basic financial statements of Immokalee Fire Control District
(the "District") as of and for the year ended September 30,2018 and have issued our report
thereon dated February 25,2019.
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 3overnment Auditing
Standards, issued by the Comptroller General of the United States of America and Chapter
10.550,Rules of the Florida Auditor General. We have issued our Independent Auditor's
Report on Internal Control over Financial Reporting and Compliance and Other Matters based on
an audit of the financial statements performed in accordance with Government Auditing Standards
and Chapter 10.550,Rules of the Auditor General. Disclosures in those reports, which are dated
February 25,2019, should be considered in conjunction with this report to Management.
Additionally,our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter includes the following information, which is not included in the aforementioned
auditor's reports:
• Section 10.554(1)(i)1.,Rules of the Auditor General,requires tha we determine
whether or not corrective actions have been taken to address findings and
recommendations made in the preceding annual financial audit report. Prior year
comments that have not been resolved are repeated and updated below.
• Section 10.554(1)(1)2.,Rules of the Auditor General,requires that we address in the
management letter any recommendations to improve financial management. Such
recommendations were noted to improve financial management.
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907•Phone: (239)333-2090•Fax: (239)333-2097
i
Page 63 of 67
• Section 10.554(1)(i)3.,Rules of the Auditor General, requires that we address
noncompliance with provisions of contracts or grant agreements,or abuse, that have an
effect on the financial statements that is less than material but more than inconsequential.
In connection with our audit, we did have such comments as noted below.
• Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official
title and legal authority for the primary government and each component unit of the
reporting entity be disclosed in the management letter, unless disclosed in the notes to
the financial statements. The District discloses this information in the notes to the
financial statements.
• Section 10.554(1)(i)5.a., Rules of the Auditor General,requires a statement be
included as to whether or not the local government entity has met one or more of the
conditions described in Section 218.503(1),Florida Statutes, and identification of the
specific condition(s)met. In connection with our audit,we determined that the District
did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
• Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, we
have applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by same.
• Pursuant to Section 10.554(1)(i)5.c., Rules of the Auditor General, requires a
statement indicating a failure, if any, of a component unit Special District to provide
financial information necessary to a proper reporting of the component unit within the
audited financial statements of this District(F.S. Section 218.39(3)(b)). There are no
known component special districts required to report within these financial statements.
• Section 10.556(10)(a), Rules of the Auditor General,requires that the scope of our
audit to determine the District's compliance with the provisions of Section 218.415,
Florida Statutes,regarding the investment of public funds. In connection with our audit,
we determined that the District complied with Section 218.415,Florida Statutes as
reported in our Independent Accountant's Report on Compliance with Section
218.415,Florida Statutes dated February 25, 2019,included herein.
PRIOR YEAR COMMENTS:
Prior year comments that have been resolved have been noted as such. Those remaining
unresolved prior year comments each have a current year addendum which reflects the
current status of the comment.
Page 64 of 67
2016-01 Fixed Assets Must Have Permanent Tag Numbers
During the audit, we noted eight(8)out of twenty-five(25)fixed,assets selected for
testing did not have permanent tag(markings)numbers. Per Florida Administrative
Code 69I-73.004, each fixed asset shall be permanently marked NA ith the identification
number assigned to that fixed asset to establish its identity and ownership by the
governmental unit holding title to the fixed asset.
We recommend all fixed assets be properly marked.
2017 Addendum
During the audit for the year ended September 30, 2017,we noted none of the current
year fixed asset additions were assigned permanent tag numbers. We, subsequently,
retested ten(10)current year additions for permanent tag number"and determined
seven (7)current year additions had been properly tagged. Three of the items were not
properly tagged. We continue to recommend all fixed assets be properly assigned and
marked with identification numbers.
Current Year Addendum
During the audit for the year ended September 30, 2018,we tested twenty-five(25)
fixed assets.We noted all fixed assets tested were assigned permanent tag numbers.
This comment has been resolved.
2016-05 District Accounting and Reporting Responsibility Should Be petermined and
Assigned
We have, in the past,recommended that the District increase accounting resources. In
response to that comment the District contracted a third party CPA to assist and hired
a part-time in-house assistant. For various reasons this took time to implement.
Simultaneously,the District brought payroll in-house and decidec to convert to
QuickBooks. As such,effort and resources had to be focused on he payroll and
QuickBooks conversion and current FY 2017 accounting activity. Reconciliation and
clean-up for FY 2016 was delayed until the audit process began. As such, the
contracted CPA,in-house personnel,employees from North Collier Fire Control and
Rescue District along with the audit staff worked through the FY 2016 audit process
which took an extended effort.
The Board did hire a part time administrative assistant to help with accounting and
administrative functions. The District,however,does not have adequate resources
in-house to perform the complete accounting function. It should be noted since the new
person is related to other District personnel,it inherently can cause independence issues
and put the assistant in difficult situations. We recommend the Board consider this issue
when assigning duties as part of resolving the District accounting issues.
Page 65 of 67
The accounting function is extremely important to ensure public funds are properly
expended and, ultimately, it is the Board's responsibility.
We recommend the future Chief coordinate with the Board and ensure proper and
timely accounting so that the Board can make timely and informed financial decisions.
We recommend that Board discuss and specifically determine who they want to be in
charge of the District accounting function to ensure timely reporting. The Board then
should communicate that direction and follow up monthly.
2017 Addendum
On October 1, 2017 the District entered into an Interlocal Agreement with North
Collier Fire Control and Rescue District to perform certain management and
administrative services which included the financial accounting function. As a result, the
accounting data for the year ended September 30, 2017 was reanalyzed and adjusted
prior to audit and the previous year's comments were addressed and most were
resolved.
Current Year Addendum
During the audit for the year ended September 30, 2018 we noted accounting and
financial reporting responsibilities have been fully transitioned to North Collier Fire
Control and Rescue District,per their Interlocal Agreement with the District. Monthly
financial reports are prepared for the Board of Commissioners and included in their
Board packets. Included in this report is the financial statement with budget to actual
comparison of current year-to-date to prior year-to-date revenues and expenses.
This comment has been resolved.
2017-01 Non-Compliance with Florida Statute Chapter 189.015
During the audit,the District was unable to determine and provide support that the
schedule of the Board of Commissioners meetings was sent to the Collier County Clerk.
We recommend the District ensure compliance with the above Florida Statute and
retain documentation of compliance.
Current Year Addendum
During the audit for the year ended September 30, 2018 we noted evidence of the
2017-2018 schedule of Board of Commissioners meetings was provided timely to the
Collier County Clerk. This comment has been resolved.
Page 66 of 67
2017-02 Grant Related Internal Control Should be Consistently Maim ained
During the audit, we noted a lack of internal controls and oversight over grant
purchases and reporting in the first part of the year ended September 30, 2017. This
is consistent with prior year finding 2016-16, SAFER grant reimbursement requests
submitted did not agree to actual expenses incurred. As a result of the prior year
finding, the District established an inter-local agreement with another District to provide
accounting assistance and oversight. With the assistance of the of her District, internal
controls over grants have improved and the SAFER reimbursement requests were
subsequently reviewed,revised, and corrected during fiscal year 017.
Again,prior to the inter-local agreement, the District purchased items, with the intent of
obtaining reimbursement through the Assistance to Firefighters Grant. Some of the
items that were purchased were not approved under the grant agreement resulting in a
denial for reimbursement by the grantor. With the assistance of the other District, the
reimbursement request was subsequently revised and approved for payment by the
grantor. However, subsequent to the year ended September 30, 21)17 it was
determined that there was a mathematical error in the reimbursement request
submission and the amount requested was incorrect,resulting in an overpayment. Due
to the unapproved purchases and incorrect submissions the District was unable to
maximize the grant. The District is working with the grantor agency on corrective
action which may result in a request for reimbursement by the grantor in an amount of
approximately$5,300.
Current Year Addendum
During the audit for the year ended September 30, 2018 we noted financial and
administrative services are provided by North Collier Fire Control and Rescue District,
per their Interlocal Agreement.Any future grants will be administered, maintained, and
reviewed to ensure compliance with grantor requirements, and that all requests for
reimbursements are submitted accurately. This comment has bee resolved.
CURRENT YEAR COMMENTS:
2018-01 Non-Compliance with Florida Statute Chapter 189.016(3)
During the audit,we noted the District held timely meetings to adopt both the tentative
and final budgets for the year ended September 30, 2018. However, a technical error
occurred when preparing the DR 420 form forcing the District to;hold an additional
final budget hearing meeting after the September 30, 2017 deadline to formerly adopt
the final budget.
We recommend the District ensure compliance with the above Florida Statute.
Page 67 of 67
Pursuant to Chapter 119, Florida Statutes,this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners,management,the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
Le441.441) é ( w11 ?' A
TUSCAN&COMPANY,P.A.
Fort Myers, Florida
February 25,2019
EXHIBIT
04010144,
F E Immokalee Fire Control District
F ' ' ' 502 New Market Road East, Immokalee, FL. 34142
AveMaria Michael J. Choate, Fire Chief
May 1, 2019
Auditor General's Office
Local Government Audits/342
Claude Pepper Building, Room 401
111 West Madison Street
Tallahassee, FL 32399-1450
The following details the Immokalee Fire Control District's response to the audit
comments (prior and current) for the fiscal year ended 9-30-18:
PRIOR YEAR COMMENTS:
2016-01 Fixed Assets Must Have Permanent Tag Numbers
FYE 16/17 Comment: During the audit for the fiscal year ended 9-30-16,
eight out of twenty five fixed assets selected for testing did not have
permanent tag (markings) numbers. Per Florida Administrative Code 691-
73.004, each fixed asset shall be permanently marked with the
identification number assigned to that fixed asset to establish its identity
and ownership by the governmental unit holding title to the fixed asset.
During the audit for the year ended September 30, 2017 items were
identified that were not property tagged and the recommendation
continued to mark appropriately all fixed assets
Current Year Addendum: All items tested were property identified.
Comment has been resolved.
2016-05 District Accounting and Reporting Responsibility Should be
Determined and Assigned
FYE 16/17 Comment (Summarized): We recommend the future Chief
coordinate with the Board and ensure proper and timely accounting so
that the Board can make timely and informed financial decisions. We
recommend that Board discuss and specifically determine who they want
to be in charge of the District accounting function to ensure timely
reporting. The Board then should communicate that direction and follow
up monthly. On October 1, 2017 the district entered into an Interlocal
Agreement ("ILA") with North Collier Fire Control and Rescue District
("NCFR") to perform certain management and administrative services
which included the financial accounting function. As a result, the
Administration(239)657-2111 Operations(239)657-8587 Fire Prevention(239)597-9227
Fax(239)657-9489
accounting data for the year ended September 30, 2017 was reanalyzed
and adjusted prior to audit and the previous year's comments were
addressed and most were resolved.
Current Year Addendum: This comment has been resolved.
2017-01 Non-Compliance with Florida Statute Chapter 189.015: During the
Audit the District was unable to determine and provide ,support that the
schedule of the Board of Commissioners meetings was sent to the Collier
County Clerk. We recommend the District ensure compliance with the
above Florida Statue and retain documentation of compliance.
Current Year Addendum: This comment has been resolved.
2017-02 Grant Related Internal Control Should be Consistently Maintained:
During the audit, we noted a lack of internal controls and oversight over
grant purchases and reporting in the first part of the year ended
September 30, 2017. This is consistent with prior year inding 2016-16,
SAFER grant reimbursement requests submitted did not agree to actual
expenses incurred. As a result of the prior year finding, the District
established an inter-local agreement with another DistriGt to provide
accounting assistance and oversight. With the assistance of the other
District, internal controls over grants have improved anc the SAFER
reimbursement requests were subsequently reviewed, revised and
corrected during fiscal year 2017. Again, prior to the inter-local
agreement, the District purchased items, with the intent of obtaining
reimbursement through the Assistance to Firefighters Gant. Some of the
items that were purchased were not approved under the grant agreement
resulting in a denial for reimbursement. With the assistance of the other
District, the reimbursement request was subsequently revised and
approved for payment by the grantor. However subsequent to the year
ended September 30, 2017 it was determined that there was a
mathematical error in the reimbursement request submi>sions and the
amount requested was incorrect, resulting in an overpay ment. Due to the
unapproved purchases and incorrect submissions the District was unable
to maximize the grant. The District is working with the grantor agency on
corrective action which may result in a request for reimbursement by the
grantor in an amount of approximately$5,300.
Current Year Addendum: This comment has been resolved.
Page 2 of 3
CURRENT YEAR COMMENTS:
2018-01 Non-Compliance with Florida Statute Chapter 189.016(3): During the audit
it was noted the District held timely meetings to adopt both the tentative
and final budgets for year ended September 30, 2018. However, a
technical error occurred and the District had to held their final budget
hearing again after the September 30, 2017 deadline. We recommend the
District ensures compliance with the above Florida Statute.
Response: At the time the budget hearings were held in September of
2017, the District had not yet entered into an Interlocal Agreement with
North Collier Fire District to perform financial and compliance related
functions. The District was also undergoing the transition of a new fire
chief who had not yet been through the budgetary process. The District
has now secured financial and administrative staff and the budget
hearings for the September 30, 2019 fiscal year were held with no
compliance issues. This comment has been resolved.
The District continues to improve financial reporting and compliance functions, and
address any deficiencies in internal controls, policies and procedures. Close
communication with our auditing firm, Tuscan & Co., PA is maintained to ensure all
current and prior year comments are resolved. The Board of Fire Commissioners and
management staff are committed to addressing and resolving all audit comments, and
avoiding future possible comments. We have engaged qualified professionals and
maintain our assurance that future audits will reflect the actions we have taken.
Sincerely,
IMMOKALEE FIRE CONTROL DISTRICT
Page 3 of 3