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CAFR Year End 09-30-2019COMPREHENSIVE ANNUAL FINANCIAL REPORT Collier County, FloridaFOR THE FISCAL YEAR ENDED SEPTEMBER 30,2019 Photos courtesy of the Communication & Customer Relations and Tourism Divisions, Collier County Board of County Commissioners and the Naples, Marco Island, Everglades Convention & Visitors Bureau COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2019 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS WILLIAM L. MCDANIEL, JR. CHAIRMAN – DISTRICT 5 BURT SAUNDERS, ESQ. VICE-CHAIRMAN – DISTRICT 3 ANDY SOLIS, ESQ. – DISTRICT 2 DONNA FIALA – DISTRICT 1 PENNY TAYLOR – DISTRICT 4 COUNTY MANAGER LEO E. OCHS, Jr. COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER CHIEF FINANCIAL OFFICER CRYSTAL K. KINZEL DIRECTOR OF FINANCE AND ACCOUNTING DEREK M. JOHNSSEN, CPA Prepared by the Office of the Clerk of the Circuit Court and Comptroller, Finance and Accounting Department TABLE OF CONTENTS COLLIER COUTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2019 INTRODUCTORY SECTION Transmittal Letter ......................................................................................................................................................................... i Certificate of Achievement......................................................................................................................................................... vi Organizational Chart .................................................................................................................................................................viii FINANCIAL SECTION Independent Auditors’ Report ..................................................................................................................................................... 1 Management’s Discussion and Analysis (Unaudited).................................................................................................................. 4 Basic Financial Statements Statement of Net Position ..................................................................................................................................................... 16 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Bayshore Gateway Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Immokalee Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Statement of Activities .......................................................................................................................................................... 18 Balance Sheet – Governmental Funds .................................................................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................ 21 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds............................................. 22 Funds to the Statement of Net Position ................................................................................................................................ 23 (Budgetary Basis).................................................................................................................................................................. 24 Fund Balances - Budget and Actual (Budgetary Basis).......................................................................................................... 27 Balances – Budget and Actual (Budgetary Basis) ................................................................................................................. 28 Statement of Net Position – Proprietary Funds ..................................................................................................................... 29 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds.................................................. 31 Statement of Cash Flows – Proprietary Funds ...................................................................................................................... 32 Statement of Fiduciary Net Position – Agency Funds ........................................................................................................... 34 Notes to the Financial Statements ........................................................................................................................................ 35 Required Supplementary Information ....................................................................................................................................... 75 Combining and Individual Fund Financial Statements and Other Supplemental Information ................................................... 79 Nonmajor Governmental Funds Combining Balance Sheet ..................................................................................................................................................... 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Enterprise Funds ............................................................... 92 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) ........... 101 Combining Statement of Net Position ................................................................................................................................. 128 Combining Statement of Revenues, Expenses and Changes in Net Position....................................................................... 129 Combining Statement of Cash Flows .................................................................................................................................. 130 TABLE OF CONTENTS COLLIER COUTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2019 FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Financial Statements and Other Supplemental Information (Continued) Internal Service Funds Combining Statement of Net Position ................................................................................................................................. 132 Fiduciary Funds Component Units Other Supplemental Information Combining Statement of Revenues, Expenses and Changes Net Position .......................................................................... 133 Combining Statement of Cash Flows .................................................................................................................................. 134 Combining Statement of Fiduciary Net Position.................................................................................................................. 136 Combining Statement of Changes in Fiduciary Net Position ............................................................................................... 137 Combining Statement of Net Position ................................................................................................................................. 140 Combining Statement of Activities ...................................................................................................................................... 141 Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ............................................. 144 STATISTICAL SECTION..................................................................................................................................................... 145 Net Position by Component ..................................................................................................................................................... 148 Change in Net Position ............................................................................................................................................................ 150 Governmental Activities Tax Revenues by Source .................................................................................................................... 152 Fund Balances of Governmental Funds ................................................................................................................................... 153 Changes in Fund Balances of Governmental Funds ................................................................................................................. 154 Assessed Value and Estimated Actual Value of Taxable Property ........................................................................................... 156 Property Tax Rates – All Direct and Overlapping Governments ................................................................................................ 157 Principal Tax Payers County-Wide ............................................................................................................................................ 158 Property Tax Levies and Collections ........................................................................................................................................ 159 Ratios of Outstanding Debt by Type ......................................................................................................................................... 160 Direct, Overlapping and Underlapping Governmental Activities Debt ....................................................................................... 161 Pledged-Revenue Coverage ..................................................................................................................................................... 162 Demographic and Economic Statistics .................................................................................................................................... 163 Principal Employers ................................................................................................................................................................. 164 Budgeted Full-Time Equivalent County Employees by Function ............................................................................................... 165 Operating Indicators by Function ............................................................................................................................................. 166 Capital Asset Statistics by Function......................................................................................................................................... 167 TABLE OF CONTENTS COLLIER COUTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2019 SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS STATE AND PROJECTS Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ............................... 171 Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General of the State of Florida ......................................................................................................................................................................... 173 Schedule of Expenditures of Federal Awards and State Financial Assistance ......................................................................... 176 Notes to the Schedule of Expenditures of Federal Awards....................................................................................................... 182 Schedule of Findings and Questioned Costs............................................................................................................................ 183 Introductorysection THIS PAGE INTENTIONALLY LEFT BLANK Crystal K. Kinzel Collier County Clerk of the Circuit Court and Comptroller 3315 Tami a mi Trail East, Suite 102 Naples, Florida 34112-5324 March 10, 2020 To the Citizens and Members of the Board of County Commissioners, Collier County, Florida: It is with pleasure that we present to you, the citizens of Collier County and members of the Board of County Commissioners, the Comprehensive Annual Financial Report {CAFR) for the fis cal year ended September 30, 2019. Responsibility for the accuracy of the data and the completenes s and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the information presented herein is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of County operations. The Clerk of the Circuit Court and Comptroller's Finance and Accounting Department, as well as County management, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements and maintaining accountability of assets . The concept of rea s onable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. Chapter 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counti es in the State. For the fiscal year ended Septemb e r 30, 2019 the independent auditor, CliftonlarsonAllen LLP, issued an unmodified opinion on the financial statements. Their report is included in the Financial Section ofthis report. In addition to meeting the requirements set forth in State statutes, the audit was also designed to meet the requirements of the Government Auditing Standards, the Title 2 U.S . Code of Federal Regulations {CFR) Part 200, Uniform Administrative Require ments, Cos t Principle s, and Audit Requirem ents for Federal Awards and the Rules of the Auditor General, Chapter 10.550 Local Governmental Entity Audits. Information relating to the Single Audits, including the schedule of expenditures of federal awards and state financial as s istance and the independent auditors' report on compliance and internal control over compliance with requirements applicable to each major federal prog ram and state project, are included in the Federal and State Single Audit Section of this report. Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysi s to accompany the ba s ic financial statements i n the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A a nd the two s hould be read in concert. Collier County's MD&A can be found in the Financial Section immediately following the independent auditors ' report. Phone-(23 9) 252 -2 64 6 Fax - (239) 2 52-2 7 55 We bsite-www.CollierClerk.com Email -CollierClerk@collierclerk.com PROFILE OF THE GOVERNMENT Collier County is a Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and is made up of five residents elected by voters. In addition to the County Commissioners, voters elect the following five constitutional officers: the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The County provides its citizens with a wide range of services that include law enforcement, emergency management, fire and EMS services, animal services, library, museum and cultural services , parks and recreation operations, road maintenance and construction. Additionally, the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, a landfill gas to energy facility, three airports and a transit system. Budgets are prepared annually. Formal budgetary integration is employed as a management control throughout the year. The Board of County Commissioners conducts budget workshops during June of each year and a proposed budget is released in July. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to State statute. Two public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state's second largest county at 2,026 square miles , is on the southwest coast of Florida, directly west of Miami. With a 2019 population of 376,086 (a 13.3 percent increase over the last ten years), Collier County has been considered to be one of the fastest growing counties in the state over the last ten years. The resident population includes Unincorporated County (pop. 335,693) and three municipalities: the Cities of Naples (pop. 22,039), Marco Island (pop. 17,930) and Everglades (pop. 424). The County's economic base is concentrated in tourism, agriculture, fishing, construction, ranching and forestry with a growing services economy and an active technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. Taxable property market valuationforfiscalyear2019totaled $93.2 billion, a very high $247,784 per capita . The County's millage for General Fund operations in fiscal year2019 remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Unemployment levels in recent years approximate, or are slightly below, the statewide average. The 2019 annual County unemployment rate stood at 3.2%, while the statewide average is 3.0%. Income levels are high, with a per capita personal income of $92,686. LONG TERM FINANCIAL PLANNING Several annual processes take place which influence long range planning and the development of the budget. Each year the County performs a three-year budget projection of primary ad valorem supported funds (General Fund and the Unincorporated Area Municipal Services Taxing Di strict Fund) prior to developing budget policy. In addition, there are several annual long range planning processes such as the Capital Improvement Element (CIE), the Annual Update and Inventory Report (AUIR), the Long Range Transportation Plan, the Water and Wastewater Master ii Plans, the Master Mobility Plan and concurrency planning. The County is required to prepare and present to the Board of County Commissioners an Annual Update and Inventory Report (AUIR) and adopt a five-year Capital Improvement Element (CIE). Both of these processes focus on the schedule of capital improvements for the County. The AUIR is an annual status report on public facilities and the CIE is a planning document that identifies public facilities that will be required during the next five or more years. The Capital Improvement Element is the foundation of Collier County's annual Capital Improvement Program (CIP). The total planned for CIP projects for fiscal years 2020-2024 is $1.4 billion. Included in the County's current CIP for fiscal years 2020- 2024 are approximately $486.5 million in water and wastewater projects, $475.0 million in transportation projects, $130.4 million in stormwater projects and $79.3 million in government facilities projects. In addition, parks and recreation projects of approximately $91.5 million are planned, as well as $55.8 million for tourist development funded projects, $19.1 million in solid waste projects, $56.7 million in public safety projects and miscellaneous projects totaling $13.6 million. Approximately $293 .7 million of the fiscal year 2020 -2024 Capital Improvement Program is currently planned to be funded by bond or loan proceeds and $342.8 million is planned to be funded by the new infrastructure sales tax. The Master Mobility Plan (MMP) was developed to address the transportation mobility needs of Collier County. The MMP is focused on demand management and coordination to reduce the need for transportation infrastructure. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as revenue in the following year, maintaining a recommended General Fund unassigned fund balance of between 8% and 16% of actual expenditures and net operating transfers, the assessment of impact fees at such levels as allowed by law and supported by studies, and prioritizing gas taxes for payment of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds. Debt administration policies include the limitation of the debt repayment period to the useful life of the underlying assets and the establishment of a 5% benchmark for net present value savings generated by refinancing. The Collier County Debt Management Policy provides that a smaller net present value savings may be considered on a case-by-case basi s . Con s istent with Collier County's Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized debt will be refinanced. In addition, the debt policy establishes a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13%. The Clerk of the Circuit Court's Finance and Accounting Department monitors the daily cash needs of the County and invests the County's funds in accordance with the Collier County Investment Policy . The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund (Florida PRIME), U.S. Treasury securities, U.S. agency securities, commercial paper and bankers' acceptances. The par weighted average maturity of the total managed portfolio, to first call or maturity, was .46 years as of September 30, 2019. The total return for fiscal year 2019 was 3.17%, a reflection of overall market interest rate increases in fiscal year 2019 . Changes in the fair value of investments are recorded as part of interest income in the financial statements. iii MAJOR IN/TIA TIVES While the County is currently focused on many initiatives, some of the most significant include the following items: Development of the Golden Gate Golf Course property The hardening of County facilities to better prepare for natural disasters Upgrades to Information Technology infrastructure and the County's various management, financial and accounting software Completion of the construction, and operation, of the Big Corkscrew Regional Park and the amateur sports complex facility Public safety capital projects including a new evidence facility for the Sheriff The extension of Vanderbilt Beach Road and bridge rehabilitation and replacement Enhancements in storm-water capital infrastructure and maintenance service levels Expansion of Collier Area Transit and the Collier County airport system AWARDS GFOA Certificate ofAchievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2018. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports . In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past thirty-three years, from fiscal year 1986 to 2018. We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2018. In order to receive this award, a government unit must publish a iv budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the lastthirty three consecutive years . The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court and Comptroller for its annual budget for the fiscal year beginning October 1, 2018. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. The Clerk's Office has received this award for the last seventeen consecutive years. ACKNOWLEDGEMENTS The preparation and publication of this Comprehensive Annual Financial Report represents a significant effort by the Finance and Accounting Department as well as numerous County personnel who contribute to its production. In particular, we would like to express our appreciation to Edith Manuel, Finance Manager, Leslie Miller, Operations Manager, Raymond Milum, Jr., Accounting Manager and all of the staff of the Finance and Accounting Department. Sincere appreciation is alsoexpressedto CliftonlarsonAllen, the Board of County Commissioners, the Constitutional Officers, the County Manager, Department Heads and the Division Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Derek M. Johnssen, Director of Finance and Accounting, at (239) 252-7863. Respectfully, Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Derek M . Johns s en, CPA Deputy Clerk, Director of Finance and Accounting /~/??~ Kelly Jones, CGFO Deputy Clerk, Assi stant Director of Finance and Accounting V Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2018. This was the thirty-third consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Collier County Clerk of the Circuit Court Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2018 ~P-~ Executive Director/CEO r gounty ...w. - CITIZENS Ke"'n Rambosk Sheriff 252-4434 Aile SkJnner Pror,erty Appraiser Bo ard of County Commissioners PhOne 262-8097 Crystal K. Ki nzel Clerk or Courts 252-8 14 1 Donria Fia l;, 252-2648 Wi lliam L. McDan iel.Jr. Larry Ray Ta x Collector 252-8171 Burt Saunder$ MdyS<>lis Penny Taytor Jennifer Edwards Supervisor of Elec tions 252-845() Jell Klatzkow ~eo Ochs . Jr. Mark Slral n co~nty A ttorney Counly Manager Chie f Heat ing Examine r PhOne 252-8400 Phon e 252-aJaJ Phone 252-4446 Judicial Courts & Judges 252-l.lSOO Nick Casalangu lila Depu ty County Manager Phone 252-8383 Corporale Financial &PeJic.,n ~Y Services Management Services Nei l Dorri ll, Dire ct or Mruk lsacksoo, Director Ptione 597-1749 Phooe 252-8383 7 Corporate Busi ness Business & Economic Development Operatioos Communily Redevelopmenl ATeas Sean Cal lahan, Director Corporate Compfi ance alld Internal Phone 252-8383 Review Admfn islraNse Services Department Len Golden Price Department Head F'hooe 252-3646 Bureau of Emergency Services Communications & Customer Relatioros Fleet Managemool Human Resources Information Technology Procurement Services Recoros Managemool Ris k Management Growth Man~ement Deparunent Thaddeus Cohen Department H ead Phooe 252•2370 Building Plan Re>1iew & lnspeooon Capital Project PlannillQ, Impact Fees & Program Management Code Enforcemenl Development Review Operations&. Regulatory Management Operalions Support Road Maintenance T ransporlation Engineering Zon ing Public Services Depar1m,ent Steve Camell Department Head Phone 252-8-468 Domestic Allimal Services Community and Human Services Health library MuseLJm Operations and Veterans Services Parks & Recreation Public Transit & Neighborflood Enhancement University Extension Service Public Utml1es Department G. Goorge Yi lmaz Department Head Phone 252-2540 Facilities Management Opera1ion Support Engineering & Projeci Management Solid & Hazardous Waste Wastewater Water Financialsection THIS PAGE INTENTIONALLY LEFT BLANK Cli ftonlarsonAll en LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities , the business type activities , the aggregate discretely presented component units, each major fund , and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30 , 2019, and the related notes to the financial statements , which collectively comprise the entity's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America ; this includes the design , implementation , and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free f rom material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors ' judgment , including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments , the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances , but not for the purpose of e xpressing an opinion on the effectiveness of the entity 's internal control. Accordingly , we express no such opinion . An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Board of County Commissioners Collier County , Florida Opinions In our opinion , the financial statements referred to above present fairly , in all material respects , the respective financial position of the governmental activities , the business-type activities, the aggregate discretely presented component units , each major fund , and the aggregate remaining fund information of the County as of September 30, 2019, and the respective changes in financial position and , where applicable, cash flows thereof, and the respective budgetary comparison f or the General Fund , the Bayshore Gateway Redevelopment Agency special revenue fund , and the lmmokalee Redevelopment Agency special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis (MD&A) on pages 4 -13, the schedules of the county's proportionate share of the net pension liability and of county contributions on page 77 , and the schedules of other postemployment benefits total OPES liability and related ratios for the retiree health plans on page 78 be presented to supplement the basic financial statements . Such information , although not a part of the basic financial statements , is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational , economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America , which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries , the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County 's basic financial statements. The combining and individual nonmajor fund financial statements and other supplemental information , as listed in the table of contents , are presented for purposes of additional analysis and are not a required part of the basic finan ci al statements. The schedule of expenditures of federal awards and state financial assistance , as required by Title 2 U.S . Code of Federal Regulations Part 200 , Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida , is also presented for purposes of additional analysis and is not a required part of the basic financial statements. 2 Honorable Board of County Commissioners Collier County , Florida Other Matters (Continued) Other Information (Continued) The combining and individual nonmajor fund financial statements and other supplemental information and the schedule of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves , and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion , the information is fairly stated , in all material respects, in relation to the basic financial statements as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements , and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated February 13 , 2020 , on our consideration of the County 's internal control over financial reporting and on our tests of its compliance with certain provisions of laws , regulations, contracts , and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing , and not to provide an opinion on the effectiveness of the County 's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County 's internal control over financial reporting and compliance. CliftonlarsonAllen LLP Naples , Florida February 13 , 2020 3 4 FINANCIAL SECTION Management’s Discussion and Analysis MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the County’s financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30, 2019. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i-v of this report. Financial Highlights • Collier County’s assets and deferred outflows exceeded its liabilities and deferred inflows as of September 30, 2019 by $2,772,511,890. Of this amount, $173,598,298 represents unrestricted net position and may be used to meet future County obligations. Unrestricted net position increased by $59,728,209 from the previous year. • The County’s total net position increased by $214,171,743 when compared to fiscal year 2018, with a $129,669,784 increase from governmental activities and a $84,501,959 increase resulting from business-type activities. • As of September 30, 2019, Collier County’s governmental fund financial statements showed combined ending fund balances of $705,196,327, an increase $204,846,785 over the previous fiscal year. Of the total combined ending governmental fund balance, $103,707,232 is reported as unassigned. • The General Fund reported an unassigned fund balance of $103,707,232 at September 30, 2019, an increase in unassigned General Fund balance of $26,365,466 when compared to September 30, 2018. • Total bonded debt, notes, outstanding loans and capital leases owed by Collier County increase of $134,304,551 during fiscal year 2019, with an increase in governmental activities debt of $69,583,193 and an increase in the business-type activities debt of $64,721,358. In October of 2018, the County issued the Series 2018 Tourist Development Tax Revenue Bonds to construct and equip a regional tournament caliber amateur sports complex. In April 2019, the County Water and Sewer District issued the Series 2019 Collier County Water and Sewer Revenue Bonds to finance various utility capital improvements in the northeast area of the County. In July 2019, the County issued the Series 2019 Special Obligation Revenue Note (Taxable Bank Term Loan) for purposes of acquiring the Golden Gate Golf Course. Additional information on debt activity can be found in Note 6 to the financial statements beginning on page 50. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County’s basic financial statements. Collier County’s basic financial statements include government-wide and fund financial statements, as well as notes to the basic financial statements. Government-Wide Financial Statements Government-wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 18 of this report. The Statement of Net Position shows the financial position of Collier County as of September 30, 2019. The statement shows the County’s assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the difference being reported as net position. Changes in net position are useful indicators of financial condition. The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal period. All changes in net position are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business-type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business-type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. 5 FINANCIAL SECTION Management’s Discussion and Analysis Governmental funds Governmental funds, presented on pages 20 to 28, account for substantially the same functions as governmental activities reported under the government-wide Statement of Net Position and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County’s near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government’s near term financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government-wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County’s statements include four major funds, the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies and the Infrastructure Sales Tax fund. There are many smaller governmental funds under Collier County management and they are aggregated in a total column named “other governmental funds”. Combining statements for these other governmental funds have been presented elsewhere in this report. Collier County adopts an annual budget as described in Note 1 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with this budget. Budgetary comparison schedules for any non-major governmental fund required to adopt an annual budget is presented in the combining statements presented elsewhere in this report. Proprietary funds Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on pages 29 to 33 of this report. Enterprise funds report, with more detail, the same functions presented as business-type activities in the government-wide financial statements for water and sewer, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund, the Solid Waste Disposal Fund and the Emergency Medical Services Fund are presented individually as major funds. Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker’s compensation insurance, property and casualty insurance, fleet operations and information technology. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government. These funds are not presented in the government-wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds are presented on page 34 of this report. All of the County’s fiduciary funds are agency funds. The accounting used for agency funds is based on the concept that assets equal liabilities when the government is acting in a fiduciary capacity. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government-wide and fund financial statements. The notes appear on pages 35 to 73 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 81. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net position for enterprise funds. Also included are combining financial statements for internal service and agency funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical and Single Audit sections of this report. The statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. The Single Audit grants compliance section lists the expenditures of Federal Awards and State Financial Assistance during the fiscal year and presents grant compliance information as well as auditor reports. 6 FINANCIAL SECTION Management’s Discussion and Analysis Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. Assets and deferred outflows exceeded liabilities and deferred inflows by $2,772,511,890 as of the fiscal year ending September 30, 2019 for Collier County. Positive balances were reported in all categories of net position in the governmental and business-type activities for fiscal year 2019 with the exception of a negative unrestricted net position for governmental activities. The negative unrestricted net position for governmental activities is primarily a result of reporting the long-term net pension liability associated with the County and should not be considered, solely, as evidence of financial difficulties. Collier County’s net position at September 30, 2019 increased by $59,728,209 for unrestricted net position and increased $124,092,563 for restricted net position. Restricted net position consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to meet the County’s ongoing obligations. Increases in restricted net position were mainly due to a 30.6% increase in restricted net position related to growth related capital expansion and the implementation of a 1% Infrastructure Sales Tax for capital projects. The Infrastructure Sales Tax was effective as of January 1, 2019. The increase in unrestricted net position was mainly the result of Hurricane Irma related operating grant reimbursements. Collier County’s investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 75.1% of net position as of September 30, 2019, compared to 80.1% as of September 30, 2018. During fiscal year 2019, the County’s net investment in capital assets increased by $30,350,971, but decreased as a proportion of total net position due to the overall increase in restricted and unrestricted net position discussed above. Capital assets provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets. The following are Collier County’s net position and changes in net position for the fiscal years ended September 30, 2018 and 2019, shown in condensed form: Collier County’s Schedule of Net Position (in millions) Total Business-type Percentage Governmental Activities Activities Total Change 2019 2018 2019 2018 2019 2018 2018-2019 Current and other assets $ 834.0 $ 626.8 $ 382.7 $ 233.4 $ 1,216.7 $ 860.2 41.4% Capital assets, net 1,618.7 1,589.0 966.8 955.9 2,585.5 2,544.9 1.6% Total assets 2,452.7 2,215.8 1,349.5 1,189.3 3,802.2 3,405.1 11.7% Deferred outflows of resources 112.1 123.4 23.3 26.3 135.4 149.7 -9.60% Long-term liabilities 692.7 591.3 302.4 230.8 995.1 822.1 20.8% Current liabilities 100.2 102.5 43.2 41.6 143.4 144.1 -0.6% Total liabilities 792.9 693.8 345.6 272.4 1,138.5 966.2 17.8% Deferred inflows of resources 22.3 25.5 4.3 4.8 26.6 30.3 -12.2% Net position: Net investment in capital assets 1,303.0 1,287.2 777.8 763.2 2,080.8 2,050.4 1.5% Restricted 478.7 362.0 39.4 32.0 518.1 394.0 31.5% Unrestricted (deficit) (32.2) (29.3) 205.7 143.2 173.5 113.9 52.4% Total net position $ 1,749.6 $ 1,619.9 $ 1,022.9 $ 938.4 $ 2,772.5 $ 2,558.3 8.4% 7 FINANCIAL SECTION Management’s Discussion and Analysis Collier County’s Schedule of Changes in Net Position (in millions) Total Percentage Governmental Activities Business-type Activities Total Change 2019 2018 2019 2018 2019 2018 2018-2019 Revenues Program revenues: Fines, fees and charges for services $ 77.0 $ 78.0 $ 227.5 $ 214.1 $ 304.5 $ 292.1 4.2% Operating grants and contributions 30.3 29.6 46.6 16.4 76.9 46.0 67.2% Capital grants and contributions 56.3 47.6 37.9 38.7 94.2 86.3 9.2% General revenues: Property taxes 356.1 337.4 --356.1 337.4 5.5% Other taxes and shared revenues 186.8 114.3 --186.8 114.3 63.4% Interest income 24.1 6.9 9.7 2.6 33.8 9.5 255.8% Miscellaneous 17.6 18.1 1.5 8.4 19.1 26.5 -27.9% Total revenues 748.2 631.9 323.2 280.2 1,071.4 912.1 17.5% Expenses General government 134.0 126.9 --134.0 126.9 5.6% Public safety 254.4 223.2 --254.4 223.2 14.0% Physical environment 25.9 37.8 --25.9 37.8 -31.5% Transportation 88.2 83.4 --88.2 83.4 5.8% Economic environment 8.9 10.4 --8.9 10.4 -14.4% Human services 17.7 16.6 --17.7 16.6 6.6% Culture and recreation 59.4 58.1 --59.4 58.1 2.2% Interest on long-term debt 13.2 9.7 --13.2 9.7 36.1% Water and sewer --153.6 144.1 153.6 144.1 6.6% Solid waste --47.5 106.8 47.5 106.8 -55.5% Emergency medical services --34.9 32.3 34.9 32.3 8.0% Airport authority --6.4 5.5 6.4 5.5 16.4% Mass transit --13.1 12.7 13.1 12.7 3.1% Total expenses 601.7 566.1 255.5 301.4 857.2 867.5 -1.2% Increase (decrease) in net position before net transfers 146.5 65.8 67.7 (21.2) 214.2 44.6 380.3% Transfers, net (16.8) (16.5) 16.8 16.5 --0% Change in net position 129.7 49.3 84.5 (4.7) 214.2 44.6 380.3% Net position – beginning 1,619.9 1,570.6 938.4 943.1 2,558.3 2,513.7 1.8% Net position – ending $ 1,749.6 $ 1,619.9 $ 1,022.9 $ 938.4 $ 2,772.5 $ 2,558.3 8.4% 8 FINANCIAL SECTION Management’s Discussion and Analysis • • Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically by function. General revenues, such as property taxes, must be used to the extent that the fees, fines, grants and contributions do not cover the cost of the governmental function. Public safety is the largest category of expenses followed by general government. Millions Revenues and Expenses Governmental Activities Fiscal Year 2019 300 250 200 150 100 50 0 General Public Safety Physical Transportation Economic Human Services Culture and Government Environment Environment Recreation Revenues Expenses Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by fines, fees and charges for services. Revenue by Type Governmental Activities Fiscal Year 2019 Property Taxes: 47.6%Property Taxes: 47.6%Property Taxes: 47.6% Fines, Fees and ChargesFines, Fees and Charges for Services: 10.3%for Services: 10.3% Fines, Fees and Charges for Services: 10.3% Operating Grants andOperating Grants and Contributions: 4.1%Contributions: 4.1% Operating Grants and Contributions: 4.1% Capital Grants andCapital Grants and Contributions: 7.5%Contributions: 7.5% Capital Grants and Contributions: 7.5% Gas Taxes: 3.3%Gas Taxes: 3.3%Gas Taxes: 3.3% Sales Taxes: 6.6%Sales Taxes: 6.6%Sales Taxes: 6.6% Tourist Taxes: 4.2%Tourist Taxes: 4.2%Tourist Taxes: 4.2% Other Income: 8.3%Other Income: 8.3%Other Income: 8.3% Infrastructure sales tax: 8.1%Infrastructure sales tax: 8.1%Infrastructure sales tax: 8.1% 9 FINANCIAL SECTION Management’s Discussion and Analysis I .1 ---- • • Revenues and expenses are shown by business-type activity. The Water and Sewer system is the largest business-type activity followed by the Solid Waste system. Revenues and Expenses Business‐type Activities Fiscal Year 2019 200 Millions 0 50 100 150 Water and Sewer Solid Waste Emergency Medical Airport Authority Mass Transit Services Revenues Expenses Revenues for business‐type activities are shown graphically by type. The largest type of revenue is fines, fees and charges for services followed by operating grants and contributions. Revenue by Type Business‐type Activities Fiscal Year 2019 Fines, Fees and ChargesFines, Fees and Charges for Services: 70.4%for Services: 70.4% Fines, Fees and Charges for Services: 70.4% Operating Grants andOperating Grants and Contributions: 14.4%Contributions: 14.4% Operating Grants and Contributions: 14.4% Capital Grants andCapital Grants and Contributions: 11.7%Contributions: 11.7% Capital Grants and Contributions: 11.7% Other Income: 3.5%Other Income: 3.5%Other Income: 3.5% 10 FINANCIAL SECTION Management’s Discussion and Analysis Governmental Activities The current year increase in the net position of governmental activities amounted to $129,669,784, an increase of 8.0% when compared to the previous year’s net position. The previous fiscal years’ increase in net position was 3.1%. The current years’ increase is mainly due to the following: • Overall, revenues related to governmental activities increased by 18.4%, or $116,313,811 while expenses increased by 6.3%, or $35,599,214. • Governmental activities revenues increased primarily due to the new levy of a 1% Local Government Sales Tax. Effective January 1, 2019, the tax generated $60,787,027 in revenue during fiscal year 2019. Also contributing to the increase was an increase in total ad valorem taxes collected in fiscal year 2019, when compared to fiscal year 2018, of $18,651,615. The increase in ad valorem revenues was due to a 5.6% increase in county wide taxable value. Market interest rates also increased during fiscal year 2019 and as a result interest revenues increased significantly over fiscal year 2018. • General government expenses increased by $7,098,034 largely due to increased pension costs. Public safety expense increased $31,163,085 primarily due to increased pension costs. Physical environment expenses decreased by $12,001,346 due to the non-recurring expenses related to waterway debris cleanup that occurred in fiscal year 2018 related to Hurricane Irma. Governmental activities interest expense increased by 35.8% primarily due to the issuance of the Series 2018 Tourist Development Tax Revenue Bonds. Business-type Activities The increase in net position related to business-type activities amounted to $84,501,959 in the aggregate, representing a 9.0% increase over the previous year’s net position. The previous fiscal year’s decrease in net position was 0.5% . The current year’s increase is mainly due to the following: • Collier County Water and Sewer District (District) saw an increase of $35,836,300 in net position. The increase in the District’s net position is largely due to a 2.8% rate increase that went in to effect October 1, 2018, a 3.7% increase in water consumption and the addition of 2,522 customer accounts. • Solid Waste Disposal experienced an increase of $46,635,064 in net position. This increase is primarily due to a $29,309,862 increase in operating grants and contributions related to reimbursements for Hurricane Irma debris removal. Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Permanent Funds, Debt Service Funds and Capital Project Funds. As of September 30, 2019, Collier County governmental funds reported combined fund balances of $705,196,327, an increase of $204,846,785 when compared to prior year combined fund balances. The governmental funds had non-spendable fund balances of $5,270,345 consisting of inventory, prepaid items, notes receivable, endowments and advances to other funds. The restricted fund balance was $522,771,580 and consists of monies whose expenditure is externally constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $177,154,402 in fund balance, $40,354,691 is classified as committed, $33,092,479 is recorded as assigned and $103,707,232 is recorded as unassigned. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2019: • The General Fund is the primary operating fund of Collier County. At September 30, 2019, total fund balance in the General Fund was $107,666,002, of which $103,707,232 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 28.1%. The total fund balance increased by $25,637,205 or 31.3% , compared to the September 30, 2018 total fund balance. The General Fund’s total fund balance increased due to increased Ad Valorem Tax collections of $15,787,405 and increased interest revenue earned over fiscal year 2018 of $3,290,574. These increases were directly related to a 5.6% increase in county wide taxable values and increased market rates of interest. • The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle. During fiscal year 2019, the Bayshore Gateway Community Redevelopment Agency collected $1,765,900 in tax increment revenues. In addition, the agency received $85,816 in miscellaneous revenues for rents and earned $94,158 in interest income. Operating expenditures of $717,594, mainly consisting of personal services and residential rehabilitation grants were associated with the Bayshore Gateway Triangle Community Redevelopment Agency. 11 FINANCIAL SECTION Management’s Discussion and Analysis • The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2019, the Immokalee Community Redevelopment Agency collected $705,000 in tax increment revenues. Operating expenditures of $475,840, mainly personal services and residential rehabilitation grants, were associated with the Immokalee Community Redevelopment Agency. In addition, capital expenditures of $73,571 were made for computer equipment, an automobile and sidewalk projects in the district. • The infrastructure Sales Tax fund was established to account for the proceeds of the 1% Infrastructure Sales Tax. The tax was effective as of January 1, 2019 and fiscal year 2019 collections were $60,787,027. The Infrastructure Sales Tax Fund earned interest revenue of $408,601 and capital outlay totaled $1,166,289. Capital outlay included $1,135,004 spent for jail heating, ventilation and air conditioning improvements and $31,285 for the Sheriff’s Forensics Building. Proprietary Funds Proprietary fund statements provide the same information as the business-type activities in the government-wide financial statements, but in greater detail, and on a fund basis for enterprise funds. At September 30, 2019, total net position amounted to $1,025,727,074 for enterprise funds, as compared to $939,595,210, as of September 30, 2018, an increase of $86,131,864. Net position changes as a result of operations, non-operating revenues and expenses, capital contributions and grants and donations. For fiscal year 2019, the Solid Waste Disposal fund’s activities represent the largest share of the increase in the business-type net position. For the year ended September 30, 2019, the Collier County Water and Sewer District (District) reported capital grants and contributions of $32,352,245, which consists of water and sewer impact fees of $15,513,268, $16,452,557 in developer infrastructure contributions and other capital contributions of $386,420. Net Operating Income/(Loss) 2019 2018 County Water and Sewer $ 10,116,153 $ 9,585,177 Solid Waste Disposal 5,455,232 (55,790,046) Emergency Medical Services (21,091,679) (18,835,777) Non-major enterprise funds (13,464,760) (12,838,906) Total $ (18,985,054) $ (77,879,552) The Collier County Water and Sewer District’s net operating income increased by $530,978 when compared to fiscal year 2018. The increase in net operating income was primarily the result of a 2.8% rate increase effective October 2018, increased water usage of 3.7% and the addition of 2,522 customer accounts offset by a 7.0% increase in total operating expenses, including depreciation and amortization. County Water and Sewer payments in lieu of taxes paid to the General Fund of $7,743,300 were reclassified from operating expense to transfers in for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Solid Waste Disposal fund’s net operating income increased by $61,245,278 when compared to fiscal year 2018. The increase in net operating income was primarily the result of non-recurring expenses of $58,552,728 in fiscal year 2018 related to Hurricane Irma debris removal. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $363,000 were reclassified from operating expense to transfers in for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Solid Waste Disposal fund’s increase in net position was mainly related to fiscal year 2019 operating grants and contributions of $40,575,375. Reimbursements totaling $40,391,910 were related to Hurricane Irma debris removal and $183,465 was related to other operating grants. The Emergency Medical Services fund’s net operating income decreased by $2,255,902 when compared to fiscal year 2018. The decrease in net operating income was the result of a 10.3% increase in total operating costs, coupled with a $907,134 increase in charges for services due to increased billable calls. Operating expenses increased mainly due to increased personal services costs, including pension expense. 12 FINANCIAL SECTION Management’s Discussion and Analysis Capital Assets Collier County’s financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County’s net investment in capital assets for the governmental and business-type activities amounted to $2,080,794,262. This investment in capital assets, both purchased and donated, includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Net investment in capital assets for the current fiscal year increased by $30,350,971 when compared to the previous year. There was an increase in the governmental activities capital assets of $29,709,030, or 1.9%, while the business-type activities capital assets increased by $10,901,515, or 1.1% . The major capital asset activities during the current and previous fiscal years are as follows: • Capitalization as construction in process of $40,030,325 in governmental activity costs including $8,518,244 related to county wide 800 MHz system upgrades, $4,133,340 to convert the North Collier Regional Park facilities to artificial turf and $3,734,855 for various bridge improvement projects. The remaining $23,643,886 is related to $12,061,450 in other transportation projects, $3,090,797 in other physical environment projects, $5,059,179 in public safety projects and $3,432,460 in other capital projects. • The business-type activities capitalized $30,485,064 of construction in process during fiscal year 2019 including $2,298,912 for energy efficiency improvements for the water and sewer system in the Golden Gate area, $7,821,370 for master pump systems improvements, and $2,079,841 for Goodlette-Frank Road utility improvements. In addition, $9,105,640 was related to the Solid Waste Northeast recycling drop-off center. The remaining $9,179,301 was made up of $8,712,127 in other County Water and Sewer projects and $467,174 in various Mass Transit projects. • Developer donated water and wastewater infrastructure in fiscal year 2019 amounted to $16,452,557 and $19,350,530 in fiscal year 2018. Subdivisions are required to meet County standards when installing water and wastewater services. Once completed and inspected, these assets are donated to and accepted by the County. • Total purchases of land and non-depreciable assets were $33,138,026 for fiscal year 2019, compared to $16,579,584 for fiscal year 2018. Fiscal year 2019 land purchases were primarily related to the acquisition of the Golden Gate Golf Course, conservation lands and various transportation projects. Additional information regarding Collier County’s capital assets can be found in Note 5 beginning on page 49 of this report. Debt Administration At September 30, 2019, Collier County had total bonded debt, notes, loans and capital leases of $627,758,382, an increase of $134,304,551 from the previous year. The following table illustrates the balances of all bonds, notes, loans and capital leases for the fiscal years ended September 30, 2019 and 2018: Outstanding Debt 2019 2018 Limited General Obligation Bonds $ 1,559,866 $ 2,037,028 Revenue Bonds 366,278,364 234,722,807 Direct Placement Loans Payable 175,310,427 161,476,907 Commercial Paper and Notes Payable 84,283,331 94,459,755 Capital Leases 326,394 757,334 Total $ 627,758,382 $ 493,453,831 On October 24, 2018, Collier County issued the Series 2018 Tourist Development Tax Revenue Bonds in the par amount of $62,965,000. These bonds were issued for purposes of financing the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. The final maturity of the Series 2018 bonds is October 1, 2048, with interest rates from 4.00% to 5.00%. On April 17, 2019, the Board of County Commissioners of Collier County, Florida and ex-officio as the governing Board of the Collier County Water-Sewer District (District) issued the Series 2019 Water and Sewer Revenue Bonds in the par amount of $76,185,000. These bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements in the northeast area of the County. The Series 2019 bonds were issued on a parity with the District’s outstanding Water and Sewer Refunding Revenue Bond, Series 2013, Water and Sewer Refunding Revenue Bond, Series 2015, Water and Sewer Refunding Revenue Bonds, Series 2016 and Water and Sewer Revenue Bond, Series 2018. The final maturity of the Series 2019 bonds is July 1, 2039, with interest rates from 3.00% to 5.00%. 13 FINANCIAL SECTION Management’s Discussion and Analysis On July 18, 2019, Collier County issued the Series 2019 Special Obligation Revenue Note (Taxable Bank Term Loan) in the par amount of $28,060,000. This loan was issued for the purpose of acquiring the real property known as the Golden Gate Golf Course. The final maturity of the Series 2019 Note is October 1, 2029, with an interest rate of 2.74%. The Series 2019 Special Obligation Revenue Note was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Bonds and Notes. Collier County’s Special Obligation Revenue Bonds carry ratings of Aa1, AAA and AA by Moody’s, Standard and Poor’s and Fitch Ratings, Inc., respectively. The Series 2017 and 2019 Special Obligation Refunding Revenue Notes (Bank Term Loans) were issued as direct placements with commercial banks and therefore carry an implied rating of Aa1, AAA and AA by Moody’s, Standard and Poor’s and Fitch Ratings, Inc., respectively. The County’s Series 2012 Gas Tax Revenue Bonds carry ratings of A2, A+ and AA- by Moody’s, Standard and Poor’s and Fitch Ratings, Inc., respectively. The Series 2014 Gas Tax Revenue Bond (Bank Term Loan) was issued as a direct placement with a commercial bank and therefore carries an implied rating of A2, A+ and AA- by Moody’s, Standard and Poor’s and Fitch Ratings, Inc., respectively. Collier County’s Tourist Development Tax Revenue Bonds carry ratings of Aa3 and AA+ by Moody’s and Fitch Ratings, Inc., respectively. Collier County’s Water and Sewer Revenue Bonds carry ratings of Aaa and AAA, respectively, by Moody’s and Fitch Ratings, Inc. The Series 2013, 2015 and 2018 County Water and Sewer Revenue Bonds issued as direct placements with commercial banks and, as such, carry an implied rating of Aaa and AAA by Moody’s and Fitch Ratings, Inc., respectively. The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County’s long-term debt can be found in Note 6 beginning on page 50 of this report. General Fund Budgetary Highlights During the current fiscal year, the General Fund expenditure appropriations increased by $3,817,262. Significant variances between the original budget and the final amended budget are listed below: • $809,529 increase in facilities management operating for a preventative maintenance initiative in addition to Hurricane Irma repairs. • $1,481,900 increase in Sheriff’s personal services related to special detail duties and $255,064 in Sheriff’s operating to provide funds for education and training programs. • $376,072 increase in Mental health operating due to re-budgeting of lapsed appropriations from the previous fiscal year. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2019. Tax revenues were under budget by $11,655,300 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4.0% to 1.0%, depending on the date of payment. Intergovernmental revenues were $10,916,203 over the amount budgeted primarily due to an increase in the amount of state revenue sharing and sales tax as well as the recognition of revenue from the Federal Emergency Management Agency that was not budgeted for in the 2019 fiscal year. Economic Factors and Year 2020 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2020 budget: • A 4.0% increase in countywide taxable property values. • Millage neutral General Fund tax rate. • A $1,200 per employee general wage adjustment along with a .5% market based pay plan maintenance component. • Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff). During fiscal year 2019, the General Fund unassigned fund balance increased by $26,365,466 to $103,707,232. As of January 24, 2019, $83,477,570 of the fiscal year 2019 unassigned fund balance has been appropriated as carryforward for fiscal year 2020, with $53,857,910 budgeted in reserves. Contact Information This financial report is intended to give the user a general overview of Collier County Government’s finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court and Comptroller Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112-5746 Our office may also be contacted via the internet at www.collierclerk.com. THIS PAGE INTENTIONALLY LEFT BLANK Basic Financial Statements FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION September 30, 2019 Primary Government Governmental Business-type Component Activities Activities Total Units ASSETS Current assets: Cash and investments $ 260,947,802 $ 238,091,391 $ 499,039,193 $ 188,785 Cash with fiscal agent 10,575,231 -10,575,231 - Trade receivables, net 1,782,861 17,714,754 19,497,615 - Special assessments receivable -90,303 90,303 - Interest receivable 827,791 1,168,565 1,996,356 - Due from other governments 9,788,996 1,549,654 11,338,650 - Internal balances 3,324,877 (3,324,877) -- Deposits 16,494 2,000 18,494 - Inventory 988,122 6,786,309 7,774,431 - Prepaid costs 135,631 7,380 143,011 - Restricted assets: Cash and investments 19,659,856 8,847,671 28,507,527 - Trade receivables, net 2,739,392 440 2,739,832 - Notes receivable 54,611 -54,611 - Interest receivable 1,538,105 62,039 1,600,144 - Due from other governments 25,597,341 4,710,654 30,307,995 - Deposits 1,875 -1,875 - Inventory 943,211 -943,211 - Inventory for resale 9,796,692 -9,796,692 - Total current assets 348,718,888 275,706,283 624,425,171 188,785 Noncurrent assets: Restricted assets: Cash and investments 477,657,809 106,842,232 584,500,041 - Notes receivable 321,061 -321,061 - Impact fee receivable 5,723,082 -5,723,082 - Special assessments receivable 1,405 164,200 165,605 - Notes receivable 1,543,206 -1,543,206 - Unamortized bond insurance 5,605 -5,605 - Capital assets: Land and non-depreciable capital assets 523,994,207 114,754,762 638,748,969 - Depreciable capital assets, net 1,094,772,680 852,032,565 1,946,805,245 - Total noncurrent assets 2,104,019,055 1,073,793,759 3,177,812,814 - Total assets 2,452,737,943 1,349,500,042 3,802,237,985 188,785 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 11,756,290 3,476,542 15,232,832 - Deferred outflows of resources related to OPEB 4,605,938 231,377 4,837,315 - Deferred outflows of resources related to pensions 95,692,551 19,596,907 115,289,458 - Total deferred outflows of resources $ 112,054,779 $ 23,304,826 $ 135,359,605 $ - The notes to the financial statements are an integral part of this statement. 16 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION (continued) September 30, 2019 Primary Government Governmental Business-type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable $ 16,820,873 $ 13,389,102 $ 30,209,975 $ - Wages payable 7,892,707 2,170,360 10,063,067 - Retainage payable 1,070,033 2,083,840 3,153,873 - Due to other governments 2,289,383 30,207 2,319,590 - Self-insurance claims payable 7,833,264 -7,833,264 - Compensated absences 10,673,026 2,676,040 13,349,066 - Capital lease obligations 87,140 94,432 181,572 - Notes payable 490,556 6,770,250 7,260,806 - Unearned revenue 109,560 34,283 143,843 - Net pension liability 1,227,605 233,718 1,461,323 - Landfill post-closure liability -51,148 51,148 - Interest payable 5,420,217 -5,420,217 - Bonds and loans payable 24,577,000 4,788,347 29,365,347 - Liabilities payable from restricted assets: Accounts payable 13,069,338 3,877,358 16,946,696 - Wages payable 1,454,295 -1,454,295 - Retainage payable 2,459,028 932,924 3,391,952 - Refundable deposits 942,660 125,642 1,068,302 - Interest payable -1,855,743 1,855,743 - Due to other governments 3,810,955 66,445 3,877,400 - Unearned revenue -108,488 108,488 - Notes payable -2,322,307 2,322,307 - Bonds and loans payable -1,596,117 1,596,117 - Total current liabilities 100,227,640 43,206,751 143,434,391 - Noncurrent liabilities: Arbitrage rebate liability -125,442 125,442 - Self-insurance claims payable 4,036,454 -4,036,454 - Compensated absences 20,867,974 669,011 21,536,985 - Capital lease obligations 66,129 78,693 144,822 - Landfill post-closure liability -1,679,387 1,679,387 - Total OPEB liability 28,364,194 2,591,357 30,955,551 - Net pension liability 290,013,336 59,710,573 349,723,909 - Notes payable 3,651,218 59,549,000 63,200,218 - Bonds and loans payable, net 345,689,254 177,997,939 523,687,193 - Total noncurrent liabilities 692,688,559 302,401,402 995,089,961 - Total liabilities 792,916,199 345,608,153 1,138,524,352 - DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 1,277,281 165,592 1,442,873 - Deferred inflows of resources related to pensions 21,027,973 4,090,502 25,118,475 - Total deferred inflows of resources 22,305,254 4,256,094 26,561,348 - NET POSITION Net investment in capital assets 1,302,980,505 777,813,757 2,080,794,262 - Restricted for: Growth related capital expansion 148,975,875 21,612,025 170,587,900 - Transportation capital projects 55,501,080 -55,501,080 - Community development 40,194,609 -40,194,609 - Tourist development 84,406,539 -84,406,539 - Conservation Collier 31,426,820 -31,426,820 - Community redevelopment 13,240,235 -13,240,235 - Infrastructure sales tax capital projects 60,011,731 -60,011,731 - Grants 12,170,225 2,837,323 15,007,548 - Debt service 7,126,856 14,621,281 21,748,137 - Court programs 12,647,718 -12,647,718 - Public safety 7,050,018 -7,050,018 - Nonexpendable purposes - other 1,794,264 -1,794,264 - Special revenues - other 4,202,731 -4,202,731 - Renewal and replacement -300,000 300,000 - Unrestricted (32,157,937) 205,756,235 173,598,298 188,785 Total net position $ 1,749,571,269 $ 1,022,940,621 $ 2,772,511,890 $ 188,785 17 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2019 Program Revenues FUNCTIONS/PROGRAMS Expenses Fees, Fines and Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary Government: Governmental Activities: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Interest and fiscal charges $ 134,017,951 254,340,500 25,840,284 88,199,686 8,937,371 17,722,065 59,400,873 13,223,939 $ 39,981,386 26,136,563 838,614 1,205,692 250,348 771,960 7,808,741 - $ 2,014,333 5,806,300 8,945,973 6,048,293 3,640,420 3,282,142 575,949 - $ 3,651,971 4,715,925 4,206,780 29,488,401 810,105 11,440 13,383,735 - Total governmental activities 601,682,669 76,993,304 30,313,410 56,268,357 Business-type Activities: Water and sewer Solid waste Emergency medical services Airport authority Mass transit 153,602,137 47,529,546 34,871,133 6,360,692 13,089,803 155,839,222 51,928,525 13,853,773 4,638,741 1,203,177 562,776 40,575,375 912,270 - 4,541,137 32,352,245 3,175 - 4,671,930 860,582 Total business-type activities 255,453,311 227,463,438 46,591,558 37,887,932 Total primary government $ 857,135,980 $ 304,456,742 $ 76,904,968 $ 94,156,289 Component Units: Industrial Development Authority Health Facilities Authority Housing Finance Authority Educational Facilities Authority $ 3,675 52,855 3,688 16,000 $ - - - - $ - - - - $ - - - - Total component units $ 76,218 $ -$ -$ - General revenues: Property taxes Gas taxes Sales tax Tourist taxes Communications services tax Infrastructure sales tax State revenue sharing Other taxes Interest income Miscellaneous Transfers, net Total general revenues and transfers Change in net position Net position - beginning Net position - ending The notes to the financial statements are an integral part of this statement. 18 FINANCIAL SECTION Basic Financial Statements Net (Expense) Revenue and Changes in Net Position Governmental Activities Primary Government Business-type Activities Total Component Units $ (88,370,261) (217,681,712) (11,848,917) (51,457,300) (4,236,498) (13,656,523) (37,632,448) (13,223,939) $ - - - - - - - - $ (88,370,261) (217,681,712) (11,848,917) (51,457,300) (4,236,498) (13,656,523) (37,632,448) (13,223,939) $ - - - - - - - - (438,107,598) -(438,107,598) - - - - - - 35,152,106 44,977,529 (20,105,090) 2,949,979 (6,484,907) 35,152,106 44,977,529 (20,105,090) 2,949,979 (6,484,907) - - - - - -56,489,617 56,489,617 - (438,107,598) 56,489,617 (381,617,981) - $ (3,675) (52,855) (3,688) (16,000) $ (76,218) $ 356,098,756 24,485,158 49,549,523 31,652,487 4,716,146 60,787,027 13,194,721 2,424,080 24,112,995 17,593,942 (16,837,453) 567,777,382 $ - - - - - - - - 9,699,362 1,475,527 16,837,453 28,012,342 $ 356,098,756 24,485,158 49,549,523 31,652,487 4,716,146 60,787,027 13,194,721 2,424,080 33,812,357 19,069,469 - 595,789,724 $ - - - - - - - - 492 - - 492 129,669,784 84,501,959 214,171,743 (75,726) $ 1,619,901,485 1,749,571,269 938,438,662 $ 1,022,940,621 $ 2,558,340,147 2,772,511,890 $ 264,511 188,785 19 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2019 ASSETS Cash and investments Cash with fiscal agent Receivables: Interest Trade, net Notes Impact Fee Special assessments Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs $ Bayshore Gateway Immokalee Community Community General Redevelopment Redevelopment I Fund Agency Agency 120,642,878 $ 2,914,587 $ 944,866 $ --- 342,309 9,512 3,136 650,177 1,500 - 1,543,206 -- --- --- 449,482 -11,244 6,519,352 -- 16,494 -625 -9,566,959 - 455,899 -- 333,479 -- 50,417 -- nfrastructure G Sales Tax 47,840,973 $ - 109,413 - - - - - 12,223,038 - - - - - Other overnmental G Funds 516,211,297 $ 10,575,231 1,680,872 3,082,326 375,672 5,723,082 1,405 14,638,074 16,589,548 1,250 229,733 1,087,880 1,100,675 5,200 Total overnmental Funds 688,554,601 10,575,231 2,145,242 3,734,003 1,918,878 5,723,082 1,405 15,098,800 35,331,938 18,369 9,796,692 1,543,779 1,434,154 55,617 Total assets $ 131,003,693 $ 12,492,558 $ 959,871 $ 60,173,424 $ 571,302,245 $ 775,931,791 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds $ 11,062,456 $ 6,769,175 2,459,405 2,165,727 1,511 873,777 - - 37,237 $ 12,028 - - - 1,500 - - 49,035 $ 10,052 - - - - - 148,901 80,178 $ - - - - - 112,800 - 17,130,538 $ 2,255,804 13,859,837 3,926,241 5,933 67,383 3,416,261 492,139 28,359,444 9,047,059 16,319,242 6,091,968 7,444 942,660 3,529,061 641,040 Total liabilities 23,332,051 50,765 207,988 192,978 41,154,136 64,937,918 Deferred inflows of resources: Unavailable revenue 5,640 ---5,791,906 5,797,546 Fund balances: Nonspendable Restricted Committed Assigned Unassigned 2,383,001 460,575 - 1,115,194 103,707,232 - 12,441,793 - - - --2,887,344 5,270,345 751,883 59,980,446 449,136,883 522,771,580 --40,354,691 40,354,691 --31,977,285 33,092,479 ---103,707,232 Total fund balances 107,666,002 12,441,793 751,883 59,980,446 524,356,203 705,196,327 Total liabilities, deferred inflows of resources and fund balances $ 131,003,693 $ 12,492,558 $ 959,871 $ 60,173,424 $ 571,302,245 $ 775,931,791 The notes to the financial statements are an integral part of this statement. 20 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2019 Differences in amounts reported for governmental activities in the statement of net position on pages 16-17: Fund balances - total governmental funds $ 705,196,327 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land and other non-depreciable assets $ 464,558,594 Construction in progress 59,435,613 Depreciable assets, net of $1,051,655,212 in accumulated depreciation 1,074,400,490 1,598,394,697 Certain long-term assets are not financial resources and therefore are not reported in the governmental funds - unamortized bond insurance premium. 5,605 Certain revenues will be collected after year-end, but are not available to pay for the current period’s expenditures, and therefore are reported as deferred inflows in the funds. 5,797,546 Certain liabilities applicable to the County’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net position. Balances at September 30, 2019 are: Accrued interest on bonds $ (5,420,217) Bonds, loans and notes payable (360,801,774) Capital lease obligations (153,269) Compensated absences (30,955,492) Total OPEB liability (28,039,331) Pension liability (285,315,181) Unamortized premium (13,606,254) (724,291,518) Unamortized deferred charges on refunding 11,756,290 OPEB deferred outflows 4,576,932 Pension deferred outflows 93,821,681 OPEB deferred inflows (1,256,015) Pension deferred inflows (20,615,397) Internal service funds are used by the County to charge self-insurance, fleet management, motor pool capital recovery and information technology services to individual funds. The assets, deferred outflows, liabilities and deferred inflows of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position is: 76,185,121 Total net position - governmental activities $ 1,749,571,269 The notes to the financial statements are an integral part of this statement. 21 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Fiscal Year Ended September 30, 2019 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Infrastructure Governmental Governmental Fund Agency Agency Sales Tax Funds Funds Revenues: Taxes $ 301,381,400 $ 1,765,900 $ 705,000 $ 60,787,027 $ 106,487,876 $ 471,127,203 Licenses, permits and impact fees 449,200 ---77,733,066 78,182,266 Intergovernmental 65,128,455 9,768 11,244 -35,041,607 100,191,074 Charges for services 18,998,763 63,745 68,550 -18,123,536 37,254,594 Fines and forfeitures 537,685 ---1,953,573 2,491,258 Interest income 4,945,995 94,158 31,654 408,601 16,565,889 22,046,297 Special assessments ----7,451,791 7,451,791 Miscellaneous 2,502,141 85,816 6,363 -2,971,265 5,565,585 Total revenues 393,943,639 2,019,387 822,811 61,195,628 266,328,603 724,310,068 Expenditures: Current: General government 70,298,575 ---33,146,086 103,444,661 Public safety 179,000,590 ---34,828,064 213,828,654 Physical environment 739,828 ---22,987,927 23,727,755 Transportation 357,859 ---44,887,493 45,245,352 Economic environment 1,886,678 717,594 475,840 -5,297,938 8,378,050 Human services 12,562,671 --48,893 4,393,254 17,004,818 Culture and recreation 16,794,280 ---31,999,126 48,793,406 Debt service Principal 58,210 ---23,068,378 23,126,588 Interest 4,975 ---11,516,486 11,521,461 Fiscal charges ----800,554 800,554 Capital outlay 13,827,555 43,307 73,571 1,166,289 92,770,727 107,881,449 Total expenditures 295,531,221 760,901 549,411 1,215,182 305,696,033 603,752,748 Excess (deficit) of revenues over (under) expenditures 98,412,418 1,258,486 273,400 59,980,446 (39,367,430) 120,557,320 Other financing sources (uses): Bonds issued ----62,965,000 62,965,000 Premiums on bonds issued ----3,238,363 3,238,363 Loans issued ----28,060,000 28,060,000 Sale of capital assets 235,651 -104 -140,334 376,089 Insurance proceeds 433,750 ---5,982,123 6,415,873 Transfers in 13,584,583 210,900 85,000 -126,752,955 140,633,438 Transfers out (87,029,197) (625,100) (74,100) -(69,670,901) (157,399,298) Total other financing sources (uses) (72,775,213) (414,200) 11,004 -157,467,874 84,289,465 Net change in fund balances 25,637,205 844,286 284,404 59,980,446 118,100,444 204,846,785 Fund balances at beginning of year 82,028,797 11,597,507 467,479 -406,255,759 500,349,542 Fund balances at end of year $ 107,666,002 $ 12,441,793 $ 751,883 $ 59,980,446 $ 524,356,203 $ 705,196,327 The notes to the financial statements are an integral part of this statement. 22 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2019 Differences in amounts reported for governmental activities in the statement of activities on pages 18-19: Net change in fund balances - total governmental funds $ 204,846,785 Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is allocated over their estimate useful lives and reported as depreciation expense. Capital outlay Depreciation expense $ 107,881,449 (74,842,024) 33,039,425 Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net position in the statement of net position. 1,153,598 Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. 19,377 In the statement of net position, the gain or loss on the sale of capital assets is reported. However, in the governmental funds the proceeds from the sale of capital assets increase financial resources. The change in net position differs from the change in fund balances by the net book value of assets disposed. (5,728,995) Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. 344,088 Debt proceeds provide current financial resources for governemntal funds, but issuing debt increases liabilities in the statement of net position. Repayment of principal on long-term debt is an expenditure in governmental funds, but a reduction of long-term liabilities in the statement of net position. Debt proceeds Bond, loan and note principal payments Payments on capital lease obligations $ (94,263,363) 23,043,424 83,164 (71,136,775) Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Compensated absences OPEB expense Pension expense Accrued interest on bonds and loans Amortization of bond insurance premium Amortization of deferred charges on refunding Amortization of premium $ (1,871,943) (201,355) (38,114,667) (1,178,468) (2,492) (1,274,546) 1,553,582 (41,089,889) The net revenues of internal service funds are reported with governmental activities. Change in net position - governmental activities $ 8,222,170 129,669,784 The notes to the financial statements are an integral part of this statement. 23 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2019 Original Final Budget Budget Actual Variance Revenues: Taxes $ 313,036,700 $ 313,036,700 $ 301,381,400 $ Licenses, permits and impact fees 229,200 229,200 449,200 Intergovernmental 54,103,500 54,103,500 65,019,703 Charges for services 15,102,809 16,867,872 18,998,763 Fines and forfeitures 392,500 392,500 537,685 Interest income 966,900 966,900 3,802,864 Miscellaneous 8,696,100 8,696,100 10,851,641 (11,655,300) 220,000 10,916,203 2,130,891 145,185 2,835,964 2,155,541 Total revenues 392,527,709 394,292,772 401,041,256 6,748,484 Expenditures: Current: General government Board of County Commissioners personal services 1,182,700 1,183,000 1,170,858 Board of County Commissioners operating 104,700 108,516 78,318 Board of County Commissioners capital outlay -1,200 1,100 County manager administrative personal services 1,041,900 1,041,900 1,032,635 County manager administrative operating 65,900 65,900 43,020 Corporate planning and improvement personal services 620,100 620,100 543,038 Corporate planning and improvement operating 44,100 44,100 28,655 Budget and management personal services 715,600 729,200 717,089 Budget and management operating 97,500 78,948 54,078 Budget and management capital outlay 1,500 1,500 1,170 Administrative services personal services 2,949,800 2,907,500 2,717,388 Administrative services operating 282,500 324,800 293,830 Administrative services capital outlay 5,000 9,952 9,633 Human resources administration personal services 1,582,800 1,656,300 1,656,256 Human resources administration operating 584,100 592,783 524,563 Human resources administration capital outlay 6,500 38,944 33,615 Clerk of the Circuit Court personal services 8,607,800 7,830,900 7,629,661 Clerk of the Circuit Court operating 2,223,200 2,844,500 2,482,288 Clerk of the Circuit Court capital outlay 129,500 298,600 288,860 Property Appraiser personal services 6,045,049 6,047,312 5,768,197 Property Appraiser operating 1,906,940 1,906,940 2,301,949 Property Appraiser capital outlay 25,000 25,000 99,403 Tax Collector personal services 11,788,152 11,788,152 10,975,231 Tax Collector operating 4,245,477 4,245,477 4,028,579 Tax Collector capital outlay 424,247 424,247 363,522 County attorney personal services 2,402,500 2,402,500 2,341,495 County attorney operating 402,400 587,432 161,941 County attorney capital outlay 10,600 10,600 8,831 Natural resource planning operating 107,300 107,300 107,240 Circuit court operating 39,500 39,500 34,819 County court operating 26,400 26,400 22,801 State Attorney operating 407,400 417,400 412,971 Public Defender operating 308,400 308,400 281,637 Other general administrative personal services 200,000 175,000 11,643 Other general administrative operating 9,771,500 9,532,484 7,465,936 Facilities management personal services 5,760,000 5,760,000 5,600,922 Facilities management operating 9,851,700 10,661,229 10,465,782 Facilities management capital outlay 82,000 88,829 86,379 Sheriff personal services 4,260,100 4,260,100 4,585,485 Sheriff operating 167,500 167,500 66,157 12,142 30,198 100 9,265 22,880 77,062 15,445 12,111 24,870 330 190,112 30,970 319 44 68,220 5,329 201,239 362,212 9,740 279,115 (395,009) (74,403) 812,921 216,898 60,725 61,005 425,491 1,769 60 4,681 3,599 4,429 26,763 163,357 2,066,548 159,078 195,447 2,450 (325,385) 101,343 (continued) 24 FINANCIAL SECTION Basic Financial Statements 2 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2019 Original Final Budget Budget Supervisor of Elections personal services 2,351,800 2,212,800 Supervisor of Elections operating 1,559,800 1,634,342 Supervisor of Elections capital outlay 48,000 107,339 Public services operations personal services 579,500 588,000 Public services operations operating 104,000 79,500 Public services operations capital outlay 1,500 17,500 Real property management personal services 688,600 688,600 Real property management operating 45,600 45,600 Total general government 83,856,165 84,734,126 Public safety Sheriff personal services 148,173,700 149,655,600 Sheriff operating 30,264,300 30,519,364 Sheriff capital outlay 7,842,700 7,845,136 Emergency management administration personal services 1,048,700 1,048,700 Emergency management administration operating 773,700 795,207 Emergency management administration capital outlay 16,400 17,400 Helicopter operations operating 40,600 40,600 Medical examiner services operating 1,434,400 1,434,400 Total public safety 189,594,500 191,356,407 Physical environment Conservation and resource management personal services 606,900 589,600 Conservation and resource management operating 169,000 215,891 Conservation and resource management capital outlay -3,131 Immokalee cemetery operating 30,100 30,100 Total physical environment 806,000 838,722 Transportation Alternative transportation modes personal services 329,300 337,200 Alternative transportation modes operating 29,700 26,100 Total transportation 359,000 363,300 Economic environment Veterans services personal services 353,500 361,100 Veterans services operating 45,400 40,200 Economic development personal services 459,300 459,300 Economic development operating 1,602,700 1,846,449 Economic development capital outlay 1,500 1,500 Total economic environment 2,462,400 2,708,549 Human services Health Care Responsibility Act operating 46,100 46,100 Domestic animal services personal services 2,403,900 2,266,400 Domestic animal services operating 1,037,800 1,145,450 Domestic animal services capital outlay -119,329 Health department operating 1,861,000 1,982,250 Mental health operating 2,133,200 2,509,272 Client assistance personal services 862,000 859,600 Client assistance operating 4,509,600 4,646,358 Client assistance capital outlay 6,400 12,685 Actual Variance 2,118,703 1,619,405 107,337 582,243 49,807 6,476 667,469 34,947 94,097 14,937 5,757 29,693 11,024 21,131 10,653 79,683,362 5,050,764 144,630,143 31,151,954 10,801,018 1,043,516 705,979 14,538 40,351 1,428,647 5,025,457 (632,590) (2,955,882) 5,184 89,228 2,862 5,753 189,816,146 1,540,261 522,975 197,656 3,131 66,625 18,235 - 19,197 742,959 10,903 95,763 337,114 86 20,745 5,355 357,859 5,441 360,389 32,034 711 8,166 443,409 1,050,846 1,170 1,887,848 15,891 795,603 330 820,701 -46,100 2,189,413 76,987 1,131,513 13,937 119,329 - 1,812,740 169,510 2,021,922 487,350 760,207 99,393 4,333,944 312,414 8,296 4,389 (continued) 25 249 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2019 Original Budget Final Budget Actual Variance Public services division office personal services Public services division office operating Public services division office capital outlay Total human services 264,300 34,600 3,100 13,162,000 266,700 32,200 3,100 13,889,444 266,387 17,041 - 12,660,792 313 15,159 3,100 1,228,652 Culture and recreation Library administration personal services Library administration operating Library administration capital outlay 5,725,600 2,440,900 50,000 5,734,400 2,432,100 50,000 5,451,083 2,094,071 49,354 283,317 338,029 646 Beach and water park operations personal services Beach and water park operations operating Beach and water park operations capital outlay 3,471,400 2,574,200 36,000 3,442,100 2,561,671 145,908 3,361,780 2,198,266 47,035 80,320 363,405 98,873 Parks maintenance personal service Parks maintenance operating Parks maintenance capital outlay Total culture and recreation 1,463,500 2,305,200 200,000 18,266,800 1,440,500 2,419,300 207,600 18,433,579 1,434,995 2,256,944 206,746 17,100,274 5,505 162,356 854 1,333,305 Total expenditures 308,506,865 312,324,127 302,249,240 10,074,887 Excess of revenues over expenditures 84,020,844 81,968,645 98,792,016 16,823,371 Other financing sources (uses): Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) - - 24,108,756 (86,091,000) (61,982,244) - - 24,398,856 (96,971,487) (72,572,631) 69,998 54,472 13,584,583 (86,964,197) (73,255,144) 69,998 54,472 (10,814,273) 10,007,290 (682,513) Net change in fund balance 22,038,600 9,396,014 25,536,872 16,140,858 Fund balance at beginning of year 43,020,600 60,057,613 60,057,613 - Fund balance at end of year $ 65,059,200 $ 69,453,627 $ 85,594,485 $ 16,140,858 Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Miscellaneous revenue related to indirect cost Public safety grant revenue not budgeted Change in inventory General government expenditures related to indirect cost Public safety expenditures for multi-period projects not budgeted Public safety capital outlay funded by outside sources not budgeted Insurance proceeds related to Sheriff assets not budgeted Proceeds from sale of Sheriff assets not budgeted Advances budgeted as transfers Net change in fund balance, GAAP basis $ 25,536,872 1,143,131 (8,349,500) 108,752 2,316 8,349,500 (719,875) (913,922) 379,278 165,653 (65,000) $ 25,637,205 The notes to the financial statements are an integral part of this statement. 26 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2019 Revenues: Taxes Intergovernmental Charges for services Interest income Miscellaneous Original Budget $ 1,765,900 - - 28,600 - Final Budget $ 1,765,900 511,758 718,242 28,600 - Actual $ 1,765,900 9,768 63,745 68,799 85,816 $ Variance - (501,990) (654,497) 40,199 85,816 Total revenues 1,794,500 3,024,500 1,994,028 (1,030,472) Expenditures: Economic environment Personal services Operating Capital outlay 490,800 1,104,100 26,500 490,800 1,257,255 1,259,500 339,438 378,156 43,307 151,362 879,099 1,216,193 Total expenditures 1,621,400 3,007,555 760,901 2,246,654 Excess of revenues over expenditures 173,100 16,945 1,233,127 1,216,182 Other financing sources (uses): Transfers in Transfers out 210,900 (625,100) 210,900 (625,100) 210,900 (625,100) - - Total other financing sources (uses) (414,200) (414,200) (414,200) - Net change in fund balances (241,100) (397,255) 818,927 1,216,182 Fund balances at beginning of year 1,909,400 2,065,555 2,065,555 - Fund balances at end of year $ 1,668,300 $ 1,668,300 $ 2,884,482 $ 1,216,182 Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Net change in fund balance, GAAP basis $ 818,927 25,359 $ 844,286 The notes to the financial statements are an integral part of this statement. 27 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2019 Revenues: Taxes Intergovernmental Charges for services Interest income Miscellaneous Original Budget $ 705,000 - - 5,000 - Final Budget $ 705,000 - 676,365 5,000 - Actual $ 705,000 11,244 68,550 23,117 6,363 $ Variance - 11,244 (607,815) 18,117 6,363 Total revenues 710,000 1,386,365 814,274 (572,091) Expenditures: Economic environment Personal services Operating Capital outlay 320,200 321,100 4,000 320,200 451,600 705,365 220,616 255,224 73,571 99,584 196,376 631,794 Total expenditures 645,300 1,477,165 549,411 927,754 Excess (deficit) of revenues over (under) expenditures 64,700 (90,800) 264,863 355,663 Other financing sources (uses): Sale of capital assets Transfers in Transfers out - 85,000 (104,100) - 185,000 (204,100) 104 85,000 (104,100) 104 (100,000) 100,000 Total other financing sources (uses) (19,100) (19,100) (18,996) 104 Net change in fund balances 45,600 (109,900) 245,867 355,767 Fund balances at beginning of year 507,700 607,700 607,700 - Fund balances at end of year $ 553,300 $ 497,800 $ 853,567 $ 355,767 Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Advances budgeted as transfers Net change in fund balance, GAAP basis $ 245,867 8,537 30,000 $ 284,404 The notes to the financial statements are an integral part of this statement. 28 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2019 Business-type Activities Enterprise Funds Governmental ASSETS Current assets: Cash and investments Receivables: Trade, net Special assessments Interest Due from other funds Due from other governments Deposits Inventory Prepaid costs Restricted assets: Cash and investments Trade, net Interest receivable Due from other governments Total current assets Noncurrent assets: Restricted assets: Cash and investments Receivables: Special assessments Advances to other funds Capital assets: Land and nondepreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources County Water and Sewer $ 185,534,375 14,348,876 90,303 866,482 12,708 1,268,009 2,000 5,724,917 7,380 8,334,646 440 61,345 - 216,251,481 106,842,232 164,200 7,392,950 89,362,391 766,197,817 969,959,590 1,186,211,071 3,476,542 140,984 7,877,931 $ 11,495,457 Solid Waste Disposal $ 30,339,839 1,761,877 - 225,017 389,123 93,618 - - - 105,735 - - - 32,915,209 - - - 8,659,396 29,847,840 38,507,236 71,422,445 - 12,143 786,770 $ 798,913 Emergency Medical Services $ 18,601,693 1,568,895 - 64,229 - 188,027 - 935,897 - 229,433 - 694 - 21,588,868 - - - 791,130 8,470,073 9,261,203 30,850,071 - 72,179 10,627,258 $ 10,699,437 Other Funds $ 3,615,484 35,106 - 12,837 1,098 - - 125,495 - 177,857 - - 4,710,654 8,678,531 - - - 15,941,845 47,516,835 63,458,680 72,137,211 - 6,071 304,948 $ 311,019 Total $ 238,091,391 17,714,754 90,303 1,168,565 402,929 1,549,654 2,000 6,786,309 7,380 8,847,671 440 62,039 4,710,654 279,434,089 106,842,232 164,200 7,392,950 114,754,762 852,032,565 1,081,186,709 1,360,620,798 3,476,542 231,377 19,596,907 $ 23,304,826 Activities - Internal Service Funds $ 69,710,866 788,250 - 220,654 1,016,516 54,399 - 387,554 80,014 - - - - 72,258,253 - - - - 20,372,190 20,372,190 92,630,443 - 29,006 1,870,870 $ 1,899,876 (Continued) 29 FINANCIAL SECTION Basic Financial Statements -- COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2019 Business-type Activities Enterprise Funds Governmental County Emergency Water Solid Waste Medical Other and Sewer Disposal Services Funds LIABILITIES Current liabilities: Accounts payable $ 9,184,677 $ 2,812,313 $ 394,030 $ 998,082 Wages payable 1,191,067 110,800 820,764 47,729 Retainage payable 2,009,659 --74,181 Due to other funds 129,234 7,859 7,340 3,806 Due to other governments 7,514 151 1,446 21,096 Unearned revenues ---34,283 Self-insurance claims payable ---- Compensated absences 1,755,322 173,061 678,151 69,506 Capital lease obligations --94,432 - Net pension liability 145,056 12,997 69,017 6,648 Landfill post-closure liability -51,148 -- Notes payable 6,770,250 --- Bonds and loans payable 4,788,347 --- Liabilities payable from restricted assets: Accounts payable 2,009,428 --1,867,930 Wages payable ---- Retainage payable 435,285 --497,639 Due to other governments ---66,445 Refundable deposits 115,766 --9,876 Unearned revenue -105,735 -2,753 Interest payable 1,855,743 --- Notes payable 2,322,307 --- Bonds and loans payable 1,596,117 --- Total current liabilities 34,315,772 3,274,064 2,065,180 3,699,974 Noncurrent liabilities: Arbitrage rebate liability 125,442 --- Self-insurance claims payable ---- Advance from other funds 175,465 7,392,950 -617,649 Compensated absences 438,831 43,265 169,538 17,377 Capital lease obligations --78,693 - Total OPEB liability 1,578,991 135,989 808,383 67,994 Net pension liability 25,070,024 2,472,655 31,175,900 991,994 Landfill post closure liability -1,679,387 -- Notes payable 59,549,000 --- Bonds and loans payable net 177,997,939 --- Total noncurrent liabilities 264,935,692 11,724,246 32,232,514 1,695,014 Total liabilities 299,251,464 14,998,310 34,297,694 5,394,988 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 100,712 9,296 51,013 4,571 Deferred inflows of resources related to pensions 1,765,831 172,812 2,081,050 70,809 Total deferred inflows of resources 1,866,543 182,108 2,132,063 75,380 NET POSITION Net investment in capital assets 668,792,806 38,470,363 9,088,078 61,462,510 Restricted for grants and other purposes --230,126 2,607,197 Restricted for growth related capital expansion 21,612,025 --- Restricted for renewal and replacement 300,000 --- Restricted for debt service 14,621,281 --- Unrestricted 191,262,409 18,570,577 (4,198,453) 2,908,155 Total net position $ 896,588,521 $ 57,040,940 $ 5,119,751 $ 66,977,862 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds Net position of Business-type Activities The notes to the financial statements are an integral part of this statement. Activities - Internal Service Total Funds $ 13,389,102 $ 1,530,767 2,170,360 299,943 2,083,840 - 148,239 50,764 30,207 8,370 34,283 102,116 -7,833,264 2,676,040 468,407 94,432 - 233,718 31,595 51,148 - 6,770,250 - 4,788,347 - 3,877,358 - 932,924 - 66,445 - 125,642 - 108,488 - 1,855,743 - 2,322,307 - 1,596,117 - 43,354,990 10,325,226 125,442 - -4,036,454 8,186,064 - 669,011 117,101 78,693 - 2,591,357 324,863 59,710,573 5,894,165 1,679,387 - 59,549,000 - 177,997,939 - 310,587,466 10,372,583 353,942,456 20,697,809 165,592 21,266 4,090,502 412,576 4,256,094 433,842 777,813,757 20,032,992 2,837,323 - 21,612,025 - 300,000 - 14,621,281 - 208,542,688 53,365,676 $ 1,025,727,074 $ 73,398,668 $ (2,786,453) $ 1,022,940,621 30 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2019 Business-type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating revenues: Charges for services $ 155,433,254 $ 51,794,802 $ 13,654,074 $ 5,788,111 $ 226,670,241 $ 105,093,615 Miscellaneous 405,968 133,723 199,699 53,807 793,197 25,918 Total operating revenues 155,839,222 51,928,525 13,853,773 5,841,918 227,463,438 105,119,533 Operating expenses: Personal services 39,218,482 3,762,431 27,800,734 1,550,047 72,331,694 9,257,283 Operating 59,062,526 40,868,046 5,268,530 14,292,218 119,491,320 93,855,063 Depreciation 47,442,061 1,842,816 1,876,188 3,464,413 54,625,478 3,484,770 Total operating expenses 145,723,069 46,473,293 34,945,452 19,306,678 246,448,492 106,597,116 Operating income (loss) 10,116,153 5,455,232 (21,091,679) (13,464,760) (18,985,054) (1,477,583) Non-operating revenues (expenses): Operating grants and contributions 562,776 40,575,375 912,270 4,541,137 46,591,558 4,159 Interest income 7,909,295 1,030,347 639,048 120,672 9,699,362 2,066,698 Insurance reimbursement 670,311 12,558 30,628 762,030 1,475,527 5,612,484 Interest expense (6,418,822) (656,372) (4,636) (8,287) (7,088,117) - Rebatable arbitrage (125,442) ---(125,442) - Gain (loss) on disposal of capital assets (392,332) (40,241) 233,641 16,995 (181,937) 477,477 Total non-operating revenues 2,205,786 40,921,667 1,810,951 5,432,547 50,370,951 8,160,818 Income (loss) before contributions and transfers 12,321,939 46,376,899 (19,280,728) (8,032,213) 31,385,897 6,683,235 Capital grants and contributions 32,352,245 3,175 -5,532,512 37,887,932 1,205 Transfers in 327,969 1,123,612 18,460,100 7,004,829 26,916,510 949,425 Transfers out (9,165,853) (868,622) (9,000) (15,000) (10,058,475) (1,041,600) Total transfers and contributions 23,514,361 258,165 18,451,100 12,522,341 54,745,967 (90,970) Change in net position 35,836,300 46,635,064 (829,628) 4,490,128 86,131,864 6,592,265 Net position - beginning 860,752,221 10,405,876 5,949,379 62,487,734 66,806,403 Net position - ending $ 896,588,521 $ 57,040,940 $ 5,119,751 $ 66,977,862 $ 73,398,668 Consolidation adjustment for internal service fund activities related to enterprise funds $ (1,629,905) Change in net position of Business-type Activities $ 84,501,959 The notes to the financial statements are an integral part of this statement. 31 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2019 Business-type Activities Enterprise Funds Governmental Cash flows from operating activities: Cash received for services Cash received from other funds for services Cash received from employees for services Cash received from other governments for services Cash received from refundable deposits Cash received from retirees for services Cash payments on behalf of retirees Cash payments for goods and services Cash payments to employees Cash payments for interfund services Cash payments on refundable deposits Net cash provided by (used for) operating activities Cash flows from non-capital financing activities: Cash received from operating grants Cash transfers from other funds Cash transfers to other funds Net cash provided by non-capital financing activities Cash flows from capital and related financing activities: System development charges Special assessment collections Receipts from insurance reimbursements Proceeds from bond issued Proceeds from disposal of capital assets Proceeds from capital grants Payments for capital acquisitions Principal payments on notes Principal payments on direct pay loans Principal payments on leases Interest and fiscal agent fees paid Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Net increase in cash and investments Cash and investments, October 1, 2018 Cash and investments, September 30, 2019 Current cash and investments Current cash and investments-restricted Noncurrent cash and investments-restricted Cash and investments, September 30, 2019 County Water and Sewer $ 155,448,916 - - - 89,000 - - (49,790,149) (35,236,367) (11,313,407) (94,000) 59,103,993 249,410 34,944,772 (9,307,253) 25,886,929 15,521,894 108,148 264,347 81,144,510 94,080 - (34,342,576) (9,303,000) (6,261,480) - (5,794,053) 41,431,870 6,652,679 6,652,679 133,075,471 167,635,782 $ 300,711,253 $ 185,534,375 8,334,646 106,842,232 $ 300,711,253 Solid Waste Disposal $ 51,755,301 - - - 3,006,305 - - (39,360,214) (3,638,292) (1,644,663) (3,024,241) 7,094,196 41,796,584 1,153,035 (35,223,794) 7,725,825 - - 12,558 - 24,717 - (2,704,766) - - - - (2,667,491) 951,612 951,612 13,104,142 17,341,432 $ 30,445,574 $ 30,339,839 105,735 - $ 30,445,574 Emergency Medical Services $ 13,743,602 - - - - - - (2,091,460) (23,359,194) (3,099,760) - (14,806,812) 995,438 18,460,100 (9,000) 19,446,538 - - 30,628 - 31,194 - (3,535,612) - - (347,776) (4,636) (3,826,202) 612,927 612,927 1,426,451 17,404,675 $ 18,831,126 $ 18,601,693 229,433 - $ 18,831,126 Other Funds $ 5,848,522 - - - - - - (11,257,147) (1,400,900) (3,123,800) - (9,933,325) 4,858,466 7,629,841 (15,000) 12,473,307 - - 802,929 - 17,725 3,554,968 (5,443,214) - - - - (1,067,592) 113,423 113,423 1,585,813 2,207,528 $ 3,793,341 $ 3,615,484 177,857 - $ 3,793,341 Activities - Internal Total Service Funds $ 226,796,341 $ - -95,102,047 -7,289,438 -439,241 3,095,305 - -1,807,923 -(1,327,118) (102,498,970) (92,211,868) (63,634,753) (8,447,360) (19,181,630) (774,407) (3,118,241) - 41,458,052 1,877,896 47,899,898 234,008 62,187,748 949,425 (44,555,047) (1,041,600) 65,532,599 141,833 15,521,894 - 108,148 - 1,110,462 4,998,826 81,144,510 - 167,716 477,477 3,554,968 - (46,026,168) (4,376,232) (9,303,000) - (6,261,480) - (347,776) - (5,798,689) - 33,870,585 1,100,071 8,330,641 1,990,185 8,330,641 1,990,185 149,191,877 5,109,985 204,589,417 64,600,881 $ 353,781,294 $ 69,710,866 $ 238,091,391 $ 69,710,866 8,847,671 - 106,842,232 - $ 353,781,294 $ 69,710,866 (Continued) 32 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2019 Business-type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating income (loss) $ 10,116,153 $ 5,455,232 $ (21,091,679) $ (13,464,760) $ (18,985,054) $ (1,477,583) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense 47,442,061 1,842,816 1,876,188 3,464,413 54,625,478 3,484,770 Net changes in assets and liabilities: Trade receivable (766,791) (106,948) (143,422) 339 (1,016,822) (154,799) Due from other funds -(46,682) -(1,098) (47,780) (500,409) Due from other governments 439,700 -(3,474) (67) 436,159 18,568 Inventory (364,909) -83,995 4,872 (276,042) (12,306) Prepaid costs 3,001 -12,262 -15,263 (33,748) Accounts payable (2,002,114) (143,599) 16,178 (92,561) (2,222,096) (72,375) Retainage payable 131,384 4,977 --136,361 - Wages payable 168,916 6,737 108,177 8,884 292,714 35,380 Due to other funds 128,381 82 (3,696) (1,040) 123,727 50,764 Due to other governments 12 83 1,446 16,706 18,247 8,335 Compensated absences 102,944 -58,533 31,572 193,049 39,420 Refundable deposits (5,000) (17,936) -50 (22,886) - Unearned revenue ---(9,326) (9,326) 3,223 Self-insurance claims payable -----(266,355) Total OPEB liability 89,497 (19,630) 67,341 (6,110) 131,098 (4,900) Deferred outflows of resources related to OPEB (140,984) (12,143) (72,179) (6,071) (231,377) (29,006) Deferred inflows of resources related to OPEB 65,146 5,611 33,352 2,805 106,914 13,402 Net pension liability 3,223,940 (4,994) 2,820,281 94,235 6,133,462 594,906 Deferred outflows of resources related to pensions 696,046 200,969 1,781,065 36,049 2,714,129 246,188 Deferred inflows of resources related to pensions (223,390) (50,734) (351,180) (12,217) (637,521) (65,579) Landfill post closure liability -(19,645) --(19,645) - Total adjustments 48,987,840 1,638,964 6,284,867 3,531,435 60,443,106 3,355,479 Net cash provided by (used for) operating activities $ 59,103,993 $ 7,094,196 $ (14,806,812) $ (9,933,325) $ 41,458,052 $ 1,877,896 Non-cash investing, capital and financing activities: Change in fair value of investments $ 2,021,175 $ 283,228 $ 171,533 $ 8,341 $ 2,484,277 $ 588,608 Arbittage rebate 125,442 ---125,442 - Developer infrastructure contributions 16,452,557 ---16,452,557 - Contributed capital assets -3,175 -275,908 279,083 1,205 Change in capital related grant receivable 375,000 --1,701,636 2,076,636 - Change in system development receivable (8,626) ---(8,626) - Change in special assessment receivable (96,728) ---(96,728) - Bond proceeeds 219,385 ---219,385 - Bond underwriters discount (219,385) ---(219,385) - Capital related accounts payable 7,085,473 36,873 -1,424,350 8,546,696 339,198 Assets received from utility acquisition 2,135,087 --571,820 2,706,907 - The notes to the financial statements are an integral part of this statement. 33 FINANCIAL SECTION Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS September 30, 2019 ASSETS Cash and investments Receivables: Interest Other $ Agency Funds 33,640,098 22,880 39,195 Total assets $ 33,702,173 LIABILITIES Due to other governments Due to individuals Refundable deposits Due to special assessment holders $ 7,988,419 711,981 24,004,712 997,061 Total liabilities $ 33,702,173 The notes to the financial statements are an integral part of this statement. 34 35 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Collier County, Florida (County) have been prepared in accordance with accounting principles generally accepted in the United States of America for governmental entities (GAAP). The more significant of the County’s accounting policies are described below. THE REPORTING ENTITY Entity status for financial reporting purposes is governed by Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended. The GASB is the standard setting body for the establishment of GAAP in governmental entities. Determination of the financial reporting entity of the County is founded upon the objective of accountability. These financial statements include the County government (the primary government) and two types of legally separate component units (blended and discrete). Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government’s ability to appoint the voting majority of the entity’s board and impose its will on the organization or there is a potential specific financial benefit/burden relationship. Financial accountability also exists if an organization is fiscally dependent and there is potential specific financial benefit/burden relationship. The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court and Comptroller, the Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court and Comptroller. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes, the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. The County’s blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex-officio. These entities are legally separate, however the County has the financial and operational responsibility for these component units. In accordance with GASB Statement No. 14, as amended, these organizations are reported as if they were part of the County’s operations. Collier County Water and Sewer District (District) - The District was established by Chapter 88-499, Laws of Florida, as amended by Chapter 03-353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Collier County Community Redevelopment Agency (CRA) - The CRA was established by Resolution 2000-82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas. These two redevelopment areas are geographically separate and distinct. Collier County Airport Authority - The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010-10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization (MPO) - The Authority was created in 1981 by Collier County Resolution 81- 222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenues fund. The County’s discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units’ Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB Statement No. 14, as amended, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. Collier County Housing Finance Authority - The Authority was formed in 1980 by Collier County Ordinance 80-66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”. Collier County Health Facilities Authority -The Authority was established in 1979 by Collier County Ordinance 79-95 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”. 36 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Collier County Industrial Development Authority -The Authority was created in 1978 by Collier County Resolution 78-94, rescinded and replaced by Resolution 79-34, to facilitate the financing of projects that promote economic growth and increase opportunities for employment in the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”. Collier County Educational Facilities Authority - The Authority was created in 1999 by Collier County Resolution 99-17 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”. Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller. Administrative Offices Collier Water and Sewer District Collier County Airport Authority 3339 East Tamiami Trail, Suite #302 2005 Mainsail Drive, Suite #1 Naples, Florida 34112 Naples, Florida 34114 Collier County Metropolitan Planning Organization Immokalee Community Redevelopment Agency 2885 South Horseshoe Drive 750 South 5th Street Naples, Florida 34104 Immokalee, Florida 34142 Bayshore Gateway Community Redevelopment Agency Collier County Health Facilities Authority 3299 Tamiami Trail East, Bldg. F Suite #103 Collier County Housing Finance Authority Naples, Florida 34112 Collier County Industrial Development Authority Collier County Educational Facilities Authority 5150 Tamiami Trail North, #502 Naples, Florida 34103 GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government-wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business-type activities of Collier County. The government-wide financial statements consist of a Statement of Net Position and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business-type activities. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements with the exception of interfund services provided and used. The internal service activity has also been eliminated from the government-wide financial statements. Aggregate internal service fund activity is reported in full as a single column in the proprietary fund financial statements. Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Position reports all financial and capital resources of Collier County’s governmental and business-type activities. Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources, and is shown in three categories: net investment in capital assets; restricted net position and unrestricted net position. The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree the particular program has been self-supporting. Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly identifiable to a particular function. The effect of indirect expense allocations has been eliminated in the government-wide financial statements. Depreciation expense for capital assets that can specifically be identified with a function is recorded as a direct expense of that function. Depreciation for capital assets that serve all functions is recorded as a direct expense of the general government function on the government-wide Statement of Activities. All interest on general long term debt is considered indirect and is reported separately in the government-wide Statement of Activities. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. The fund financial statements follow the government-wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are reconciliations explaining the differences between the governmental fund presentation and the government-wide presentation. 37 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund – the General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners’ general operating fund in the County’s consolidated General Fund. Bayshore/Gateway and Immokalee Community Redevelopment Area Special Revenue Funds – the Redevelopment funds are used to account for the receipt and expenditure of tax increment revenues generated by the Bayshore/Gateway and Immokalee Community Redevelopment Areas. Infrastructure Sales Tax Capital Project Fund – the Infrastructure Sales Tax fund is used to account for the receipt and expenditure of an additional one-cent sales surtax approved by the voters. The following are reported as major enterprise funds: County Water and Sewer Fund – the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County’s unincorporated area. Solid Waste Disposal Fund – the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Emergency Medical Services – the Emergency Medical Services fund is used to account for the provision of emergency ambulance and paramedical services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Permanent Fund – Permanent funds are used to account for resources that were legally restricted to the extent that only earnings and not principal may be spent. Collier County operates a permanent fund to defray costs associated with the maintenance and management of conservation land. Debt Service Funds – Debt service funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for principal and interest related to long-term obligations. Capital Project Funds – Capital project funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. Enterprise Funds – Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds – Internal service funds are used to account for the provision of goods and services by one department to other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently reports the following Internal Service Funds: Self-Insurance, Sheriff’s Self-Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology. Agency Funds – Agency funds are custodial in nature and do not report the results of operations (assets equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for individuals, private organizations or other governments. The Board of County Commissioners, Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain agency funds. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. 38 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are recognized in the period incurred. Grant and similar revenues are recognized when eligibility requirements are met. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. Generally, revenues are considered available when they are collected within the current period or within 60 days after the end of the fiscal year. Grant revenues are an exception and are considered available when eligibility requirements are met. Primary revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues. Property taxes are discussed later in Note 1. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include accrued compensated absences and principal and interest on long-term debt. When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses, and then unrestricted as needed. When using the unrestricted resources, committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1. Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2. Within eighty days of the certification of value, but not earlier than sixty-five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled-back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3. Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County’s intent to adopt a final budget and millage rate. 4. A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5. The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6. The County Manager approves interdepartmental budget changes within the same fund and division of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7. Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. 39 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board departments except for the agency funds, the Impact Fees Escrow special revenue fund and the Other Debt Service fund. The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts operates as a fee officer, and as such, prepares its budget in accordance with Section 218.35, Florida Statutes. The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the Board. The Clerk of Court’s budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission. Budgets are adopted for all governmental departments except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non-budgeted revenues and expenditures and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. For further information regarding encumbrances, refer to Note 16 on page 81. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. CASH AND INVESTMENTS Florida Statutes Section 218.415 establishes guidelines for Florida local government investment policies. The County’s current investment policy, as amended, was adopted December 9, 2014 by Resolution 2014-260 and is consistent with the requirements of that statute. This investment policy authorized the following investments: 1. U.S. Treasury and Government Guaranteed – U.S. Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S. Government; 2. Federal Agency/Government Sponsored Enterprise – Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise; 3. Corporates – U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic corporation, financial institution, non-profit or other entity; 4. Municipals – Obligations, including both taxable and tax-exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory; 5. Agency Mortgage Backed Securities – Mortgage backed securities, backed by residential, multi-family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass-throughs, collateralized mortgage obligations and real estate mortgage investment conduits; 6. Non-Negotiable Certificates of Deposit - Non-negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 7. Depository Bank Account – Negotiated Order of Withdrawal accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 8. Commercial Paper – U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation, company, financial institution, trust or other entity, including both unsecured debt and asset backed programs; 9. Repurchase Agreements – Repurchase agreements must be governed by written agreement, counterparty must be a Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank. Acceptable underlying securities must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or U.S. Agency backed mortgage related securities with an aggregate current market value of at least 102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential; 40 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 10. Money Market Funds – Shares in open end and no load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange Commission Rule 2a-7; 11. Fixed-Income Mutual Funds – Shares in open end and no load fixed income mutual funds whose underlying investments would be permitted for purchase under the investment policy and all its restriction; 12. Local Government Investment Pools – State, local government or privately sponsored investment pools that are authorized pursuant to state law; 13. The Florida Local Government Surplus Funds Trust Funds (Florida Prime). The County maintains a cash and investment pool that is available for use by all funds. Investment income is allocated to individual funds based upon their average daily balance in the cash and investment pool. Each fund’s individual equity in the County’s cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time without notice or penalty. The statement of cash flows for the proprietary funds also uses this methodology. Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service. Investments in the Local Government Surplus Funds Trust Fund (Florida Prime) are stated at fair value. The County categorizes its fair value measurements within the fair value hierarchy established in GASB Statement No. 72, “Fair Value Measurements and Application”. Florida PRIME is considered a qualifying external investment pool that meets all of the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the County’s position in the pool is the same as the value of the pool shares. The Florida PRIME investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2019, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 36.5% of Florida PRIME’s portfolio at September 30, 2019. In accordance with GASB Statement No. 79, “Certain External Investment Pools and Pool Participants”, as a participant in a qualifying external investment pool, the County should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool’s authority to impose liquidity fees or redemption gates) in notes to the financial statements. With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. As of September 30, 2019, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally a year except for Emergency Medical Services receivable which uses an estimated uncollectible percentage. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first-in, first-out method. Inventory in the governmental funds consists of supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non-spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government-wide and proprietary fund financial statements are reported as an expense when consumed. 41 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell. The value of these properties includes the original purchase price plus the cost of any rehabilitation. Inventory held for resale of $9,796,692 is classified as restricted, which indicates that they do not constitute available resources. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the governmental or business-type activities columns in the government-wide financial statements. Capital assets are reported at cost where historical records are available and at estimated fair value in the absence of historical cost records. Capital contributions are recorded at acquisition value on the date donated. The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year. Betterments and major improvements which significantly increase value, change capacity or extend useful lives are also capitalized. Expenditures for maintenance and repairs are charged to operating expenses. The cost of capital assets retired or sold, together with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is credited or charged to earnings in the government-wide financial statements and proprietary fund financial statements. Depreciation is calculated using the straight-line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Estimated Useful Life Buildings 20-45 years Infrastructure 3-30 years Improvements other than buildings 4-45 years Machinery and equipment 3-20 years CAPITAL LEASE OBLIGATIONS In the government-wide financial statements and proprietary fund financial statements capital lease obligations and the related cost of assets acquired are reflected in the Statement of Net Position. For capital lease obligations originating in governmental funds, an expenditure for the asset and the offsetting other financing source is reflected in the fund financial statements in the year of inception. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred outflows of resources reported in the County’s statement of net position represent changes in actuarial assumptions, the net difference between projected and actual earnings on investments, changes in the proportion and differences between the County’s contributions and proportionate share of contributions and the County’s contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. In addition, deferred outflows related to the difference between expected and actual economic experience relating to the Florida Retirement System Pension and the Other Post Employment Benefits Plan were reported. These amounts will be recognized as increases in pension expense and OPEB expense in future years. The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of resources reported in the County’s statement of net position represent the difference between expected and actual economic experience, changes in actuarial assumptions, net difference between projected and actual earnings on investments, and changes in the proportion and differences between the County’s contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan, the Retiree Health Insurance Subsidy Program and the Other Post Employment Benefits Plan. These amounts will be recognized as reductions in pension expense and OPEB expense in future years. The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee agreements, as deferred inflows. 42 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BOND PREMIUMS, LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums and bond insurance costs for the governmental activities and the business-type activities are deferred and amortized over the term of the bonds using the straight-line method which approximates the effective interest method. Bond premiums are presented as an increase to the face amount of bonds payable, while bond insurance costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets. Pursuant to GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. The gain or loss is amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized in the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are also reported as other financing sources. Issuance costs, including bond insurance costs, whether or not they have been paid from debt proceeds are reported as debt service expenditures. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2019 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1st delinquent date as follows: November - 4%, December - 3%, January - 2%, and February - 1%. Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1st of each year. No accrual for the property tax levy becoming due in November 2019 is included in the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. Key dates in the property tax cycle for the fiscal year ended September 30, 2019 are as follows: Property Tax Cycle Assessment roll compiled Assessment roll certified Millage resolution approved Beginning of fiscal year for tax levy Taxes due and payable (levy date) Collection dates Due date Delinquent (lien date) Tax certificates sold ACCOUNTING ESTIMATES Date January 1, 2018 July 1, 2018 Within 35 days of the certification of the assessment roll October 1, 2018 November 1, 2018 By November 30: 4% discount By December 31: 3% discount By January 31: 2% discount By February 29: 1% discount March 31, 2019 April 1, 2019 Prior to June 1, 2019 The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED REVENUE In instances where assets have been received by the County for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Unearned revenues of the County as of September 30, 2019 are gift certificates issued and prepayments on accounts. ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. 43 FINANCIAL SECTION Notes to the Financial Statements NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) It is the Board of County Commissioners’ policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all employees. The Sheriff’s policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 2,000 hours, and up to 500 hours of unused vacation time. Both the Clerk of the Circuit Court and Comptroller’s and Tax Collector’s policies allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of unused vacation hours. The Property Appraiser’s policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours. The Supervisor of Election’s policy allows for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government-wide financial statements and the proprietary fund financials. A liability is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are considered due and payable as of year end. PENSIONS In the government-wide and proprietary funds statements of net position, liabilities are recognized for the County’s proportionate share of each pension plan’s net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS’s and HIS’s fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. OTHER POST EMPLOYMENT BENEFITS (OPEB) In the government-wide and proprietary funds statements of net position, liabilities are recognized for the County’s total OPEB liability as determined by an actuarial review of the healthcare coverage purchased by retirees to continue participation in the County’s self-insured health plan. The County is responsible for covering the excess of retiree claims over premium payments made by retirees to the County, which creates an other post employment benefit. OPEB expense is recognized immediately for changes in the OPEB liability resulting from current year service cost, interest on the total OPEB liability and changes of benefit terms or actuarial assumptions. 44 FINANCIAL SECTION Notes to the Financial Statements NOTE 2 – CASH AND INVESTMENTS As of September 30, 2019, the County had the following cash, cash equivalents and investments: Final Investment Maturities Cash on hand Demand deposits Cash with fiscal agent Money market / CD State Board of Administration Pool: Florida PRIME US Treasury Note US Treasury Note Federal Home Loan Bank US Treasury Bill US Treasury Bill Federal Home Loan Mortgage Corporation US Treasury Bill Federal Farm Credit Bank Federal Farm Credit Bank Federal Home Loan Mortgage Corporation US Treasury Note US Treasury Bill US Treasury Bill US Treasury Bill Federal National Mortgage Association US Treasury Bill Federal Home Loan Bank US Treasury Note US Treasury Bill Federal Home Loan Bank Federal Home Loan Mortgage Corporation US Treasury Note US Treasury Note Federal Home Loan Bank US Treasury Note US Treasury Note Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Mortgage Corporation Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal National Mortgage Association Federal Home Loan Mortgage Corporation US Treasury Note Federal Home Loan Mortgage Corporation Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal Home Loan Mortgage Corporation Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Mortgage Corporation * Standard and Poor’s rating N/A N/A N/A N/A N/A 10/15/19 10/31/19 12/13/19 01/30/20 01/30/20 02/05/20 02/13/20 02/20/20 03/02/20 05/01/20 05/31/20 07/16/20 07/16/20 07/16/20 07/27/20 08/13/20 08/27/20 08/31/20 09/10/20 09/11/20 09/29/20 09/30/20 09/30/20 10/19/20 10/31/20 11/15/20 01/11/21 02/08/21 02/08/21 05/13/21 05/25/21 08/05/21 08/16/21 08/27/21 09/27/21 09/27/21 09/30/21 10/04/21 10/15/21 10/29/21 11/16/21 11/26/21 12/10/21 12/24/21 02/01/22 11/25/22 03/03/23 04/12/23 12/27/23 12/27/23 Fair Value $ 93,762 124,937,540 10,575,231 607,066 103,154,266 24,989,500 249,877 499,380 49,700,850 84,491,445 495,137 49,667,200 500,015 349,552 7,034,758 502,010 24,645,525 24,645,525 24,645,525 24,883,495 24,620,525 34,996,715 476,169 49,180,600 25,000,769 250,105 224,017 497,815 499,970 249,835 504,490 50,006,022 24,964,203 49,931,922 498,125 549,681 24,990,849 148,977 24,974,505 248,908 24,890,825 24,932,298 25,002,418 25,610,350 25,022,462 248,800 25,047,282 25,049,133 25,066,546 25,028,120 500,305 9,993,924 250,005 25,068,930 25,068,831 $ 1,156,262,090 First Call Date N/A N/A N/A N/A N/A none N/A N/A none none N/A none N/A N/A none N/A none none none 01/27/17 none 11/27/19 N/A none 11/15/19 N/A N/A N/A N/A N/A N/A 10/11/19 11/08/19 11/08/19 N/A N/A 11/05/19 N/A 11/27/19 N/A 12/27/16 03/30/17 10/04/19 none 10/29/19 N/A 11/26/19 12/10/19 12/24/19 11/01/19 N/A none N/A 12/27/19 12/27/19 Call Frequency N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A quarterly N/A quarterly N/A N/A quarterly N/A N/A N/A N/A N/A N/A quarterly continuously quarterly N/A N/A quarterly N/A quarterly N/A continuously quarterly quarterly N/A quarterly N/A quarterly continuously annually quarterly N/A N/A N/A quarterly quarterly Rating * N/A N/A N/A N/A AAAm N/A N/A AA+ N/A N/A AA+ N/A AA+ AA+ AA+ N/A N/A N/A N/A AA+ N/A AA+ N/A N/A AA+ AA+ N/A N/A AA+ N/A N/A AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ N/A AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ 45 FINANCIAL SECTION Notes to the Financial Statements NOTE 2 – CASH AND INVESTMENTS (Continued) The County maintains a cash and investment pool that is available for use by all funds. Each fund’s portion of this pool is displayed on the balance sheet under the heading of Cash and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund’s average daily balance in the total pool. CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County’s investment policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (Florida PRIME), direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers’ acceptances rated “AA” or higher, prime commercial paper rated “A-1” and “P-1”, tax-exempt obligations rated “AA” or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County’s master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. Florida PRIME is an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. At September 30, 2019, the County had $103,154,266 invested in the State Board of Administration’s Local Government Surplus Funds Trust Fund Investment Pool. All of these funds are held in the Florida PRIME pool. Florida PRIME is rated “AAAm” by Standard & Poor’s Ratings Services. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, “Florida Security for Public Deposits Act”. Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository’s collateral pledging level. The pledging level may range from 25% to 200% depending upon the depository’s financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. At September 30, 2019, the County had demand deposits of $124,937,540. All balances in excess of the Federal Depository Insurance Corporation (FDIC) insurance for these demand deposits are fully collateralized by the multiple financial institutions’ collateral pool in accordance with Florida Statutes Section 280. The discretely presented component unit demand deposits of $188,785 are secured by the FDIC as individual entity balances do not exceed $250,000. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The County’s investment policy requires execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the County’s name. INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. The dollar weighted average days to maturity (WAM) of Florida PRIME at September 30, 2019, was 39 days. Next interest rate reset dates for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida PRIME at September 30, 2019, was 85 days. 46 FINANCIAL SECTION Notes to the Financial Statements NOTE 2 – CASH AND INVESTMENTS (Continued) The portion of the County’s cash and investments invested in U.S. Government Agencies is detailed as follows, at September 30, 2019: Issuer % of Portfolio Federal Home Loan Bank 22.75% Federal Farm Credit Bank 3.13% Federal Home Loan Mortgage Corporation 15.78% Federal National Mortgage Association 4.35% Total U.S. Government Agencies 46.01% Reconciliation of cash and investments to the basic financial statements: Primary government: Cash and investments $ 499,042,818 Cash with Fiscal Agent 10,575,231 Restricted cash and investments - current 28,054,160 Restricted cash and investments - noncurrent 584,949,783 Agency funds: Cash and investments 33,640,098 Total $ 1,156,262,090 FAIR VALUE MEASUREMENTS GASB Statement No. 72, Fair Value Measurements and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GASB Statement No. 72 are described as follows: Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the County has the ability to access. Level 2 – Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs, if any, reflect the County’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the County’s own data. The County has the following recurring fair value measurements as of September 30, 2019: US Treasury Notes and Bills classified as Level 1 of the fair value hierarchy were valued using prices quoted in active markets for those securities. As of September 30, 2019, the fair value of the County’s US Treasury Notes and Bills was $384,901,258. US Agency obligations classified as Level 2 of the fair value hierarchy were valued using quoted prices for similar assets in active markets for those securities. As of September 30, 2019, the fair value of the County’s US Agency obligations was $531,992,967. 47 FINANCIAL SECTION Notes to the Financial Statements NOTE 3 – TRADE RECEIVABLES Trade receivables for Governmental and Business‐type Activities are net of an allowance for doubtful accounts as follows: Less Allowance Trade for Doubtful Net Trade Receivables Accounts Receivables General Fund $ 1,197,182 $ 547,005 $ 650,177 Bayshore Gateway Community Redevelopment Agency 14,220 12,720 1,500 Nonmajor Governmental Funds 3,826,900 744,574 3,082,326 Total receivables reported in Governmental Funds 5,038,302 1,304,299 3,734,003 Total receivables reported in Internal Service Funds 802,769 14,519 788,250 Total Governmental Activities trade receivables $ 5,841,071 $ 1,318,818 $ 4,522,253 County Water and Sewer $ 14,357,844 $ 8,528 $ 14,349,316 Solid Waste Disposal 1,762,196 319 1,761,877 Emergency Medical Services 24,062,247 22,493,352 1,568,895 Nonmajor Enterprise Funds 54,551 19,445 35,106 Total Business-type Activities trade receivables $ 40,236,838 $ 22,521,644 $ 17,715,194 The County has multi and single-family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI), Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program (SHIP). If the homeowners remain in their homes for the full term of the deferred loan, the loan is forgiven. If the property is transferred or sold before the end of the loan period, the proceeds from the repayment including interest, if any, are then repaid and returned to the appropriate grant program. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances are made to funds for the purposes of capital acquisitions and improvements. Reimbursements will take place over the next several years as funds are available. Advances to and advances from other funds at September 30, 2019 were as follows: Advance To Advance From Governmental Activities: General Fund $ 333,479 $ - Immokalee Community Redevelopment Agency -148,901 Other governmental funds: Unincorporated Area MSTD 473,762 - Community Development 626,913 - Improvement Districts -214,775 Fire Control Districts -268,100 Other Capital Projects -9,264 Total Governmental Activities 1,434,154 641,040 Business-type Activities: County Water and Sewer 7,392,950 175,465 Solid Waste Disposal -7,392,950 Other business-type funds: Airport Authority -617,649 Total Business-type Activities 7,392,950 8,186,064 Total Advances $ 8,827,104 $ 8,827,104 48 FINANCIAL SECTION Notes to the Financial Statements NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES (Continued) DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. Due from and due to other funds at September 30, 2019 were as follows: Governmental Activities: General Fund Immokalee Community Redevelopment Agency Other Governmental Funds: Road Districts Unincorporated Area MSTD Water Management and Pollution Control Pelican Bay Special Revenue Grants and Shared Revenues Improvement Districts Fire Control Districts Lighting Districts 911 Enhancement Fee Tourist Development Other Public Safety Revenue Funds Other Special Revenue Funds Forest Lakes Limited General Obligation Bonds Special Obligation Revenue Bonds County-Wide Capital Improvement Parks Improvements County Wide Library Correctional Facilities Impact Fee Emergency Medical Services Impact Fee Water Management Pelican Bay Capital Parks Impact Fee Road Construction Government Facilities Impact Fee Law Enforcement Impact Fee Total other governmental funds Business-type Activities: County Water and Sewer Solid Waste Emergency Medical Services Other Business-type funds: Airport Authority Collier Area Transit Total other Business-type funds Internal Service Funds Due From Due To $ 449,482 $ 2,459,405 11,244 - 859,803 - 553,860 623 34,156 - 76,209 1 52,486 5,462,409 181,006 - 15,711 - 9,564 - -174,759 36,536 22,660 1,076 58,905 141 - 6,474 - -8,061,500 192,180 6,507 20,637 5,892 384,000 - 1,269,000 - 194,500 - 1,328,093 66,581 62,872 - 2,331,892 - 3,951,878 - 2,605,000 - 471,000 - 14,638,074 13,859,837 $ 12,708 $ 129,234 389,123 7,859 -7,340 -170 1,098 3,636 1,098 3,806 1,016,516 50,764 Total All Funds $ 16,518,245 $ 16,518,245 49 FINANCIAL SECTION Notes to the Financial Statements NOTE 5 – CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2019 is as follows: Governmental Activities: Capital assets not depreciated: Land and other non-depreciable assets Construction in progress Total capital assets not depreciated Capital assets depreciated: Buildings Infrastructure Improvements other than buildings Machinery and equipment Total capital assets depreciated Less accumulated depreciation: Buildings Infrastructure Improvements other than buildings Machinery and equipment Total accumulated depreciation Total depreciable capital assets, net Total Governmental Activities capital assets, net Business-type Activities: Capital assets not depreciated: Land and other non-depreciable assets Construction in progress Total capital assets not depreciated Capital assets depreciated: Buildings Improvements other than buildings Machinery and equipment Total capital assets depreciated Less accumulated depreciation: Buildings Improvements other than buildings Machinery and equipment Total accumulated depreciation Total depreciable capital assets, net Total Business-type Activities capital assets, net October 1, 2018 Additions $ 436,764,337 $ 33,138,026 44,239,309 55,528,371 481,003,646 88,666,397 462,188,581 142,130 1,132,694,193 295,056 304,764,180 1,563,092 220,364,648 23,077,562 2,120,011,602 25,077,840 205,292,660 13,931,945 444,809,849 36,950,220 198,275,013 8,624,717 163,579,869 18,819,912 1,011,957,391 78,326,794 1,108,054,211 (53,248,954) $ 1,589,057,857 $ 35,417,443 $ 34,228,706 $ - 70,063,535 41,445,229 104,292,241 41,445,229 158,368,775 - 1,262,051,314 17,074,286 81,816,678 7,758,134 1,502,236,767 24,832,420 92,715,809 5,362,733 513,418,563 41,022,892 44,508,824 8,239,853 650,643,196 54,625,478 851,593,571 (29,793,058) $ 955,885,812 $ 11,652,171 Transfers and September 30, Deductions Reclassifications 2019 $ (5,343,769) $ -$ 464,558,594 (301,742) (40,030,325) 59,435,613 (5,645,511) (40,030,325) 523,994,207 -2,971,058 465,301,769 (14,027) 13,067,322 1,146,042,544 (3,991) 11,503,245 317,826,526 (11,800,335) 12,512,148 244,154,023 (11,818,353) 40,053,773 2,173,324,862 - (10,871) (3,991) (11,720,007) (11,734,869) - - - 2,866 2,866 219,224,605 481,749,198 206,895,739 170,682,640 1,078,552,182 (83,484) 40,050,907 1,094,772,680 $ (5,728,995) $ 20,582 $ 1,618,766,887 $ - $ (497,644) (497,644) -$ 34,228,706 (30,485,064) 80,526,056 (30,485,064) 114,754,762 -9,144,937 167,513,712 (7,325) 20,967,428 1,300,085,703 (3,952,199) 349,251 85,971,864 (3,959,524) 30,461,616 1,553,571,279 --98,078,542 (4,019) -554,437,436 (3,723,075) (2,866) 49,022,736 (3,727,094) (2,866) 701,538,714 (232,430) 30,464,482 852,032,565 $ (730,074) $ (20,582) $ 966,787,327 50 FINANCIAL SECTION Notes to the Financial Statements NOTE 5 – CAPITAL ASSETS (Continued) Schedule of depreciation for fiscal year 2019: General Government $ 7,408,424 Public Safety 15,813,999 Physical Environment 5,428,213 Transportation 36,534,993 Economic Environment 434,206 Human Services 317,801 Culture and Recreation 8,904,388 Subtotal 74,842,024 Internal Service Funds 3,484,770 Total Governmental Activities $ 78,326,794 Water and Sewer $ 47,442,061 Solid Waste 1,842,816 EMS 1,876,188 Airport Authority 1,541,896 Mass Transit 1,922,517 Total Business-type Activities $ 54,625,478 NOTE 6 – LONG-TERM DEBT SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations for the year ended September 30, 2019: 000’s Omitted October 1, Premium September Due within 2018 Additions Reductions Amortized 30, 2019 one year Governmental Activities: Limited General Obligation Bonds $ 2,030 $ -$ (475) $ -$ 1,555 $ 495 Bonds Payable 164,060 62,965 (13,730) -213,295 15,530 Premium on Bonds Payable 11,921 3,238 -(1,553) 13,606 - Direct Placement Loans Payable 110,215 28,060 (7,965) -130,310 8,152 Commercial Paper Loans 11,900 -(400) -11,500 400 Notes Payable 4,615 -(473) -4,142 491 Capital Lease Obligations 236 -(83) -153 87 Self-Insurance Claims 12,136 72,719 (72,985) -11,870 7,833 Compensated Absences 29,630 8,927 (7,016) -31,541 10,673 Total $ 346,743 $ 175,909 $ (103,127) $ (1,553) $ 417,972 $ 43,661 Business-type Activities: Bonds Payable $ 48,105 $ 76,185 $ - $ -$ 124,290 $ - Premium on Bonds Payable 10,643 5,179 -(730) 15,092 - Direct Placement Loans Payable 51,262 -(6,262) -45,000 6,384 Notes Payable 77,945 -(9,303) -68,642 9,093 Capital Lease Obligations 521 -(348) -173 94 Landfill Closure Liability 1,750 -(19) -1,731 - Compensated Absences 3,152 2,456 (2,263) -3,345 2,676 Total $ 193,378 $ 83,820 $ (18,195) $ (730) $ 258,273 $ 18,247 51 FINANCIAL SECTION Notes to the Financial Statements NOTE 6 – LONG-TERM DEBT (Continued) DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2019 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Limited General Obligation Bonds $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit, due in installments of $300,000 to $540,000 through January 1, 2022; interest at 3.75% to 4.25% and collateralized by a limited ad valorem pledge of up to 4 mils. Bonds were issued for purposes of financing the costs of certain roadway lighting, drainage and restoration within the Forest Lakes Municipal Service Taxing Unit. $ 1,555,000 Total Governmental Activities Limited General Obligation Bonds $ 1,555,000 Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds, due in annual installments of $2,700,000 to $6,605,000 through June 1, 2023; interest at 3.00% to 5.00% and collateralized by a pledge on the combined gas tax proceeds. Bonds were issued for purposes of advance refunding the County’s 2003 Gas Tax Revenue Bonds. $ 14,100,000 $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to $3,860,000 through July 1, 2034; interest at 3.00% to 4.50% and collateralized by a pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued to refund all of the County’s then outstanding promissory notes issued pursuant to the pooled commercial paper loan program of the Florida Local Government Finance Commission. 2,165,000 $24,620,000 2010B Special Obligation Refunding Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding the County’s 2002 Capital Improvement Revenue Bonds. 7,620,000 $92,295,000 2011 Special Obligation Refunding Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by a pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding a portion of the County’s 2003 and 2005 Capital Improvement and Refunding Revenue Bonds. 52,640,000 $73,805,000 2013 Special Obligation Refunding Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by a pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding all of the County’s remaining 2003 and 2005 Capital Improvement and Refunding Revenue Bonds. 73,805,000 $62,965,000 2018 Tourist Development Tax Revenue Bonds, due in annual installments of $1,030,000 to $3,605,000 through October 1, 2048; interest at 4.00% to 5.00% and collateralized by a pledge on tourist development tax revenues. Bonds were issued for purposes of financing the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. 62,965,000 Total Governmental Activities Revenue Bonds $ 213,295,000 52 FINANCIAL SECTION Notes to the Financial Statements NOTE 6 – LONG-TERM DEBT (Continued) Governmental Activities Direct Placement Loans $89,780,000 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds. Loan was issued to advance refund a portion of the County’s 2005 Gas Tax Revenue Bonds. $ 58,905,000 $43,713,000 2017 Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $113,000 to $3,724,000 through July 1, 2034; interest at 3.09% and collateralized by a pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to advance refund a portion of the County’s 2010 Special Obligation Revenue Bonds. 43,345,000 $28,060,000 2019 Special Obligation Taxable Revenue Note (Bank Term Loan) due in annual installments of $1,555,000 to $5,165,000 through October 1, 2029; interest at 2.74% and collateralized by a pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to acquire the real property known as the Golden Gate Golf Course. 28,060,000 Total Governmental Activities Direct Placement Loans $ 130,310,000 Governmental Activities Commercial Paper Loans $12,000,000 Commercial Paper issued by the Florida Local Government Finance Commission Pooled Commercial Paper Program due on June 6, 2023; monthly variable interest for the current fiscal year of 2.49% to 2.91%, based on the underlying commercial paper that is purchased and collateralized by all legally available non-ad valorem revenues. Loan was issued for purposes of purchasing a parcel of land for the County’s amateur sports complex. $ 11,500,000 Total Governmental Activities Commercial Paper Loans $ 11,500,000 Governmental Activities Note Payable $5,293,293 2017 Bayshore Gateway Community Redevelopment Agency Taxable Note with TD Bank, N.A., due in monthly installments of $35,574 to $52,349 through March 1, 2027; interest at 3.56% and collateralized by a pledge on all legally available non-ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency. Note was issued to refund the 2013 Collier County Community Redevelopment Agency Taxable Note (Fifth Third Bank). $ 4,141,774 Total Governmental Activities Note Payable 4,141,774 Total Governmental Activities Obligations 360,801,774 Unamortized Bond Premium 13,606,254 Governmental Activities Obligations, Net 374,408,028 Less Current Portion of Governmental Activities Obligations (25,067,556) Long-Term Portion of Governmental Activities Obligations, Net $ 349,340,472 53 FINANCIAL SECTION Notes to the Financial Statements NOTE 6 – LONG-TERM DEBT (Continued) BUSINESS-TYPE ACTIVITIES Business-type Activities Revenue Bonds $48,105,000 2016 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $5,035,000 to $7,090,000 through July 1, 2036; interest at 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of currently refunding all of the District’s remaining 2006 Water and Sewer Revenue Bonds. $ 48,105,000 $76,185,000 2019 Collier County Water and Sewer Revenue Bonds due in annual installments of $4,385,000 to $14,160,000 through July 1, 2039; interest at 3.00% to 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements within the northeast area of the County. 76,185,000 Total Business-type Activities Revenue Bonds $ 124,290,000 Business-type Activities Direct Placement Loans $17,769,080 2013 Collier County Water and Sewer Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,369,430 to $4,312,275 through July 1, 2021; interest at 1.47% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to currently refund all of the District’s 2003B Water and Sewer Refunding Revenue Bonds. $ 2,871,427 $17,687,000 2015 Collier County Water and Sewer Refunding Revenue Bond (Bank Term Loan) due in annual installments of $2,533,000 to $4,561,000 through July 1, 2022; interest at 1.75% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to advance refund a portion of the District’s 2006 Water and Sewer Revenue Bonds. 9,954,000 $35,965,000 2018 Collier County Water and Sewer Revenue Bond (Bank Term Loan) due in annual installments of $1,560,000 to $3,945,000 through July 1, 2029; interest at 2.41% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to finance the acquisition of water and wastewater utility facilities within the Golden Gate Community. 32,175,000 Total Business-type Activities Direct Placement Loans $ 45,000,427 Business-type Activities Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits. Non-interest bearing agreement. $ 65,557 $89,982,000 2016 County Water and Sewer District Refunding Revenue Note with Synovus Financial Corporation, due in monthly installments of $2,881,000 to $9,574,000 through July 1, 2029; interest at 1.80% and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. Loan was issued to currently refund all of the District’s State Revolving Fund Loans. 68,576,000 Total Business-type Activities Loans and Notes Payable $ 68,641,557 Total Business-type Activities Obligations $ 237,931,984 Unamortized Bond Premium $ 15,091,976 Business-type Activities Obligations, Net $ 253,023,960 Less Current Portion of Business-type Activities Obligations Payable from Unrestricted Assets $ (11,558,597) Less Current Portion of Business-type Activities Obligations Payable from Restricted Assets (3,918,424) Long-Term Portion of Business-type Activities Obligations, Net $ 237,546,939 54 FINANCIAL SECTION Notes to the Financial Statements NOTE 6 – LONG-TERM DEBT (Continued) SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY The total annual debt service requirements to maturity of long-term debt, excluding compensated absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows: Governmental Activities Fiscal Limited General Year Obligation Bonds Revenue Bonds Direct Placement Loans Principal Interest Principal Interest Principal Interest 2020 $ 495,000 $ 55,569 $ 15,530,000 $ 8,702,719 $ 8,152,000 $ 3,252,173 2021 520,000 34,000 13,810,000 7,994,356 10,576,000 3,288,759 2022 540,000 11,475 14,470,000 7,304,256 10,843,000 3,023,292 2023 --12,395,000 6,672,407 13,300,000 2,721,153 2024 --9,070,000 6,116,981 17,966,000 2,381,044 2025-29 --44,800,000 25,086,066 46,779,000 6,657,347 2030-34 --48,440,000 16,221,201 22,694,000 1,728,823 2035-39 --24,380,000 7,814,775 -- 2040-44 --13,715,000 4,751,500 -- 2045-49 --16,685,000 1,720,900 -- Total $ 1,555,000 $ 101,044 $ 213,295,000 $ 92,385,161 $ 130,310,000 $ 23,052,591 Governmental Activities Fiscal Year Commercial Paper Loans Notes Payable Totals Principal Interest Principal Interest 2020 $ 400,000 $ 681,000 $ 490,556 $ 139,494 $ 37,898,511 2021 400,000 657,000 508,308 121,743 37,910,166 2022 400,000 633,000 526,702 103,349 37,855,074 2023 10,300,000 459,000 545,762 84,289 46,477,611 2024 --565,510 64,540 36,164,075 2025-29 --1,504,936 70,193 124,897,542 2030-34 ----89,084,024 2035-39 ----32,194,775 2040-44 ----18,466,500 2045-49 ----18,405,900 Total $ 11,500,000 $ 2,430,000 $ 4,141,774 $ 583,608 $ 479,354,178 Business-type Activities Fiscal Year Revenue Bonds Direct Placement Loans Notes Payable Totals Principal Interest Principal Interest Principal Interest 2020 $ -$ 5,196,781 $ 6,384,464 $ 991,822 $ 9,092,557 $ 1,234,368 $ 22,899,992 2021 -5,196,781 6,499,963 869,013 9,189,000 1,071,882 22,826,639 2022 -5,196,781 6,961,000 743,893 7,891,000 906,480 21,699,154 2023 -5,196,781 3,505,000 606,235 8,034,000 764,442 18,106,458 2024 -5,196,781 3,585,000 521,765 8,178,000 619,830 18,101,376 2025-29 5,035,000 25,983,905 18,065,000 1,270,311 26,257,000 1,208,340 77,819,556 2030-34 53,355,000 19,741,259 ----73,096,259 2035-39 65,900,000 7,188,400 ----73,088,400 Total $ 124,290,000 $ 78,897,469 $ 45,000,427 $ 5,003,039 $ 68,641,557 $ 5,805,342 $ 327,637,834 55 FINANCIAL SECTION Notes to the Financial Statements NOTE 6 – LONG-TERM DEBT (Continued) CURRENT YEAR FINANCING ACTIVITIES On October 24, 2018, Collier County issued the Series 2018 Tourist Development Tax Revenue Bonds in the par amount of $62,965,000. These bonds were issued for purposes of financing the development, acquisition, construction and equipping of regional tournament caliber amateur sports complex. The final maturity of the Series 2018 bonds is October 1, 2048, with interest rates from 4.00% to 5.00%. On April 17, 2019, the Board of County Commissioners of Collier County, Florida and ex-officio as the governing Board of the Collier County Water-Sewer District (District) issued the Series 2019 Water and Sewer Revenue Bonds in the par amount of $76,185,000. These bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements in the northeast area of the County. The Series 2019 bonds were issued on a parity with the District’s outstanding Water and Sewer Refunding Revenue Bond, Series 2013, Water and Sewer Refunding Revenue Bond, Series 2015, Water and Sewer Refunding Revenue Bond, Series 2016 and Water and Sewer Revenue Bond, Series 2018. The final maturity of the Series 2019 bonds is July 1, 2039, with interest rates from 3.00% to 5.00%. On July 18, 2019, Collier County issued the Series 2019 Special Obligation Revenue Note (Taxable Bank Term Loan) in the par amount of $28,060,000. This loan was issued for the purpose of acquiring the real property known as the Golden Gate Golf Course. The final maturity of the Series 2019 Note is October 1, 2029, with an interest rate of 2.74%. The Series 2019 Special Obligation Revenue Note was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Bonds and Notes. RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2010, 2010B, 2011 and 2013 Special Obligation Refunding Revenue Bonds and Series 2017 and 2019 Special Obligation Refunding Revenue Notes, the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment if necessary, from non-ad valorem revenues amounts sufficient to pay principal and interest on the combined Special Obligation Bonds and Notes. According to County resolutions authorizing the issuance of the Series 2012 Gas Tax Revenue Refunding Bonds and Series 2014 Gas Tax Refunding Revenue Bond, the issues are payable from and secured by liens on gas tax revenues. According to County resolutions authorizing the issuance of the Series 2018 Tourist Development Tax Revenue Bonds, the issues are payable from and secured by a lien on tourist development tax revenues. The covenants of the loan agreement authorizing the Florida Local Government Finance Commission loans include appropriation in the annual amounts of non-ad valorem revenues or other legally available funds sufficient to satisfy the loan repayments. Bayshore Gateway Community Redevelopment Agency (Agency) tax increment revenues are pledged for the repayment of the Agency’s Series 2017 taxable note. The Agency has additionally covenanted to budget and appropriate from all legally available non-ad valorem revenues of the Agency to pay the Series 2017 note to the extent the tax increment revenues are insufficient. The Series 2017 note does not constitute an indebtedness of the County and is payable solely from the security provided by the Bayshore Gateway Community Redevelopment Agency. The Agency is required to have a debt service reserve balance with the lending bank of $315,026 as of the end of fiscal year 2019. The Agency was in compliance with these covenants for the year ended September 30, 2019. The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating expenses, to repay $169,290,427 in Series 2013, 2015, 2016, 2018 and 2019 revenue bonds and direct placement loans. Proceeds from the bonds and loans were used for the expansion of the District’s water and sewer systems as well as the refinancing of bonds issued for purposes of rehabilitation or expansion of the District’s water and sewer systems. Principal and interest are payable through July 1, 2039, solely from the net revenues and certain other fees and charges derived from operation of the County’s Water and Sewer District (District). The pledge of net revenues by the District from the operation of the system does not constitute a lien upon the system or any other property of the County. The resolutions authorizing the revenue bonds include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions, which together with system development fees (impact fees) and special assessment proceeds (if applicable) received shall be at least 125% of the annual debt service requirements for the bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on the bonds. Fiscal year 2019 pledged revenues, net of operating expenses (excluding depreciation and amortization), were $65,372,468, and $80,883,174 when system development fees were included. Principal and interest paid on the bonds during fiscal year 2019 totaled $10,352,598, providing coverage of 631% and 781%, respectively. In addition, bond covenants require a renewal and replacement amount equal to $300,000 in the District funds. The District was in compliance with these covenants for the year ended September 30, 2019. 56 FINANCIAL SECTION Notes to the Financial Statements NOTE 6 – LONG-TERM DEBT (Continued) The District has a note outstanding in the amount of $68,576,000 with Synovus Financial Corporation. This note is collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and system development fees. The lien is subordinate in all respects to the liens placed upon pledged revenues established by bonded and direct placement loan indebtedness. The District’s note was in compliance with these covenants for the year ended September 30, 2019. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. LEASE OBLIGATIONS Capitalized leases payable at September 30, 2019 amounted to $326,394. These obligations, which are collateralized by equipment and vehicles, have total annual installments ranging from $29,702 to $187,320 including interest ranging from 0.0% to 4.82% and mature through 2022. As of year-end, equipment currently leased under capital leases in the governmental activities had a historical cost of $521,716 and accumulated depreciation of $430,245. Equipment currently leased under capital leases in the business-type activities had a historical cost of $571,158 and accumulated depreciation of $371,253. Future minimum capital lease obligations as of September 30, 2019 were as follows: Governmental Business-type Activities Activities Total 2020 $ 92,888 $ 94,432 $ 187,320 2021 40,233 78,693 118,926 2022 29,702 -29,702 Total minimum lease payments 162,823 173,125 335,948 Less amount representing interest (9,554) -(9,554) Present value of minimum lease payments $ 153,269 $ 173,125 $ 326,394 The County also leases office space, office equipment and storage space under operating leases. These leases expire or are cancellable within the next fiscal year. In the normal course of operations, these leases will be renewed or replaced by other leases. Total rental expenditures for all operating leases within the governmental activities for the year ended September 30, 2019 were $1,918,589. Total rental expenditures for all operating leases within business-type activities for the year ended September 30, 2019 were $501,201. NOTE 7 – CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi-family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuing authority, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2019, the outstanding principal amount payable on all component unit conduit debt was $464,266,757 and is made up of the following: Industrial development revenue bonds $ 138,340,000 Housing finance revenue bonds 23,756,750 Health facilities revenue bonds 205,882,339 Educational facilities revenue bonds 96,287,668 Total $ 464,266,757 57 FINANCIAL SECTION Notes to the Financial Statements NOTE 8 – DEFINED BENEFIT PENSION PLANS BACKGROUND The Florida Retirement System (FRS) Pension Plan was created by Chapter 121, Florida Statutes, effective December 1, 1970. The FRS is a qualified retirement plan under Section 401(a), Internal Revenue Code, created to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits are defined and described in detail. Such provisions may be amended at any time by the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ web site (www. dms.myflorida.com). The County’s pension expense totaled $76,123,081 for both the FRS Pension Plan and HIS Plan for the year ended September 30, 2019. FLORIDA RETIREMENT SYSTEM PENSION PLAN PLAN DESCRIPTION The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of- living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 58 FINANCIAL SECTION Notes to the Financial Statements NOTE 8 – DEFINED BENEFIT PENSION PLANS (Continued) BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. The following chart shows the percentage value for each year of service credit earned: % Value (per year of Class, Initial Enrollment and Retirement Age/Years of Service: service) Regular Class 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 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 Elected County Officers’ Class 3.00 Senior Management Service Class 2.00 Special Risk Class Service from December 1, 1970 through September 30, 1974 2.00 Service on and after October 1, 1974 3.00 As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. CONTRIBUTIONS The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer contribution rates by job class for the periods from October 1, 2018 through June 30, 2019 and from July 1, 2019 through September 30, 2019, respectively, were as follows: Regular employees-8.26% and 8.47%; Special Risk – Regular-24.50% and 25.48%; County Elected Officials-48.70% and 48.82%; Senior Management Services-24.06% and 25.41%; and DROP participants-14.03% and 14.60%. The County’s contributions to the FRS Plan were $25,202,730 for the year ended September 30, 2019. PENSION COSTS At September 30, 2019, the County reported a liability of $274,763,972 for its proportionate share of the FRS Plan’s net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019. The County’s proportion of the net pension liability was based on the County’s contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to the total employer contributions received from all of FRS’s participating employers. At June 30, 2019, the County’s proportion was 0.797837%, which was a decrease of 0.006831% from its proportion measured as of June 30, 2018. 59 FINANCIAL SECTION Notes to the Financial Statements NOTE 8 – DEFINED BENEFIT PENSION PLANS (Continued) For the year ended September 30, 2019, the County recognized pension expense of $69,387,325 for its proportionate share of FRS’s pension expense. In addition, the County reported its proportionate share of FRS’s deferred outflows of resources and deferred inflows of resources from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience $ 16,297,036 $ 170,517 Changes in Actuarial Assumptions 70,571,210 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments -15,201,376 Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 6,842,801 2,104,766 County Contributions Subsequent to the Measurement Date 6,413,445 - Total $ 100,124,492 $ 17,476,659 Deferred outflows of resources related to pensions of $6,413,445, resulting from County contributions to the FRS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ending September 30 Amount 2020 $ 28,102,098 2021 9,455,920 2022 19,805,044 2023 14,493,085 2024 3,550,181 Thereafter 828,060 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60% per year Salary Increases 3.25%, including inflation Investment Rate of Return 6.90%, Net of Pension Plan investment expense Mortality rates changed from the Generational RP-2000 with Projection Scale BB to the PUB-2010 base table, projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2019, valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018. The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy’s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. 60 FINANCIAL SECTION Notes to the Financial Statements NOTE 8 – DEFINED BENEFIT PENSION PLANS (Continued) The target allocation, as outlined in the FRS Plan’s investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation Return Return Deviation Cash 1.0% 3.3% 3.3% 1.2% Fixed income 18.0% 4.1% 4.1% 3.5% Global equity 54.0% 8.0% 6.8% 16.5% Real estate (property) 10.0% 6.7% 6.1% 11.7% Private equity 11.0% 11.2% 8.4% 25.8% Strategic investments 6.0% 5.9% 5.7% 6.7% Totals 100.0% Assumed Inflation - Mean 2.6% 1.7% DISCOUNT RATE The discount rate used to measure the total pension liability was 6.90% for the FRS Plan. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the County’s proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease in Current Discount 1% Increase in Description Discount Rate Rate Discount Rate FRS Plan Discount Rate 5.90% 6.90% 7.90% County’s Proportionate Share of the FRS Plan Net Pension Liability $ 474,975,412 $ 274,763,972 $ 107,553,555 PENSION PLAN FIDUCIARY NET POSITION Detailed information about the FRS Plan’s fiduciary net position is available in a separately-issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. RETIREE HEALTH INSURANCE SUBSIDY PROGRAM PLAN DESCRIPTION The Retiree Health Insurance Subsidy Program (HIS Plan) is a non-qualified, cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. BENEFITS PROVIDED For the fiscal year ended June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. 61 FINANCIAL SECTION Notes to the Financial Statements NOTE 8 – DEFINED BENEFIT PENSION PLANS (Continued) CONTRIBUTIONS The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. The FRS contribution rates include a 1.66% HIS Plan subsidy for the periods October 1, 2018 through June 30, 2019 and from July 1, 2019 through September 30, 2019, pursuant to Section 112.363, Florida Statutes. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County’s contributions to the HIS Plan were $3,792,652 for the year ended September 30, 2019. PENSION COSTS At September 30, 2019, the County reported a liability of $76,421,260 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019. The County’s proportion of the net pension liability was based on the County’s contributions received during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to the total employer contributions received from all participating employers. At June 30, 2019, the County’s proportion was 0.683004%, which was a decrease of 0.007062% from its proportion measured as of June 30, 2018. For the year ended September 30, 2019, the County recognized pension expense of $6,735,756 for its proportionate share of HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows Deferred Inflows of Description of Resources Resources Differences Between Expected and Actual Economic Experience $ 928,221 $ 93,575 Changes in Actuarial Assumptions 8,848,859 6,246,052 Net Difference Between Projected and Actual Earnings on HIS Program 49,315 - Investments Changes in Proportion and Differences Between County Contributions and 4,381,804 1,302,189 Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date 956,767 - Total $ 15,164,966 $ 7,641,816 Deferred outflows of resources related to pensions of $956,767, resulting from County contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ending September 30 Amount 2020 $ 2,360,418 2021 2,020,557 2022 1,255,228 2023 49,938 2024 385,424 Thereafter 494,818 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60% per year Salary Increases 3.25%, including inflation Municipal Bond Rate 3.50% Mortality rates changed from the Generational RP-2000 with Projection Scale BB to the PUB-2010 base table, projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2019, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013. 62 FINANCIAL SECTION Notes to the Financial Statements NOTE 8 – DEFINED BENEFIT PENSION PLANS (Continued) DISCOUNT RATE The discount rate used to measure the total pension liability was 3.50% for the HIS Plan. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. PENSION LIABILITY SENSITIVITY The following presents the County’s proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease in Current 1% Increase in Description Discount Rate Discount Rate Discount Rate HIS Plan Discount Rate 2.50% 3.50% 4.50% County’s Proportionate Share of the HIS Plan Net Pension Liability $ 87,238,785 $ 76,421,260 $ 67,411,485 PENSION PLAN FIDUCIARY NET POSITION Detailed information about the HIS Plan’s fiduciary’s net position is available in a separately-issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. SUMMARY The aggregate amount of net pension liability, related deferred outflows of resources and deferred inflows of resources and pension expense for the County’s defined benefit pension plans are summarized below: FRS Plan HIS Plan Total Net pension liability $ 274,763,972 $ 76,421,260 $ 351,185,232 Deferred outflows of resources related to pensions 100,124,492 15,164,966 115,289,458 Deferred inflows of resources related to pensions 17,476,659 7,641,816 25,118,475 Pension expense 69,387,325 6,735,756 76,123,081 NOTE 9 – DEFINED CONTRIBUTION PLAN The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of .06% of payroll from July 1, 2018 to June 30, 2019 and .06% of payroll from July 1, 2019 to June 30, 2020 in addition to forfeited benefits of plan members. The County’s Investment Plan pension expense totaled $5,147,503 for the year ended September 30, 2019. 63 FINANCIAL SECTION Notes to the Financial Statements NOTE 9 – DEFINED CONTRIBUTION PLAN (Continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2019, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. NOTE 10 – TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to the fund that statute or budget requires they be expended from, (2) move receipts restricted to debt service to the debt service fund as payments become due and (3) use unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations. Transfers for the year ended September 30, 2019 were as follows: Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Bayshore Gateway Community Redevelopment Agency Immokalee Community Redevelopment Agency Nonmajor Governmental Funds Business-type Activities: County Water and Sewer Solid Waste Disposal Emergency Medical Services Nonmajor Business-type Internal Service Funds Total Transfers Nonmajor Governmental Funds County Water and Sewer Solid Waste Disposal Emergency Medical Services Nonmajor Business-type Internal Service Funds Nonmajor Governmental Funds Bayshore Gateway Community Redevelopment Agency General Fund Bayshore Gateway Community Redevelopment Agency Immokalee Community Redevelopment Agency Nonmajor Governmental Funds County Water and Sewer Nonmajor Business-type Internal Service Funds General Fund Nonmajor Governmental Funds Solid Waste Disposal Internal Service Funds General Fund Internal Service Funds Internal Service Funds Nonmajor Governmental Funds General Fund Emergency Medical Services Internal Service Funds $ 60,884,791 300,769 335,712 18,454,300 6,943,625 110,000 625,100 74,100 3,777,133 136,800 85,000 65,009,564 27,200 61,204 574,000 7,944,728 218,500 787,900 214,725 862,722 5,900 9,000 15,000 1,000,000 5,800 35,800 $ 168,499,373 64 FINANCIAL SECTION Notes to the Financial Statements NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and is categorized as follows: Net investment in capital assets: Total capital assets, net of debt issued and deferred amounts on refundings related to the acquisition of these assets and net of depreciation is reported separately in the net position section. Restricted for growth related capital expansion: Impact fees are restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of ad valorem revenues restricted for the maintenance and management of environmentally sensitive land. Restricted for community redevelopment: Tax increment revenues generated in the redevelopment areas are restricted for redevelopment purposes. Restricted for grants: State and federal government grant monies restricted for grant related purposes. Restricted for infrastructure sales tax capital projects: Infrastructure sales tax proceeds are restricted for infrastructural capital improvements. Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long-term debt. Restricted for nonexpendable purposes – other: Balances are restricted in conjunction with the maintenance and management of certain conservation lands for mitigation purposes. Restricted for special revenues – other: Balances are restricted for specific uses associated with the revenue collected. Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of County Water and Sewer District Bondsfor use in funding the cost of additions, replacement or major repair of District capital assets. Unrestricted: Balances are not restricted for specific purposes. Governmental funds report fund balances as either spendable or non-spendable as follows: Non-spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of advances, loans and notes receivable. Spendable fund balance: Restricted fund balance – Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors; or imposed by law through constitutional provisions or enabling legislation. Committed fund balance – Amounts that can be spent only for specific purposes determined by the County’s highest decision making authority, the Board of County Commissioners, via ordinance. Commitments may be modified or removed by the Board of County Commissioners only by amending the ordinance that created the original commitment. Assigned fund balance – Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners, but that are neither restricted nor committed to the specific purpose. Unassigned fund balance – Unassigned fund balance is the residual classification for the County’s general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless prohibited by law, grant agreements or other contractual arrangement. Further, when committed fund balance is available the County will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. 65 FINANCIAL SECTION Notes to the Financial Statements NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION (Continued) A detailed schedule of fund balances at September 30, 2019 is as follows: Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Infrastructure Governmental Governmental Fund Agency Agency Sales Tax Funds Funds Nonspendable: Endowments $ - $ - $ - $ -$ 1,794,264 $ 1,794,264 Inventory 455,899 ---1,087,880 1,543,779 Advances 333,479 ----333,479 Notes 1,543,206 ----1,543,206 Prepaid costs 50,417 ---5,200 55,617 Total nonspendable fund balance 2,383,001 ---2,887,344 5,270,345 Restricted for: Community redevelopment $ -$ 12,441,793 $ 751,883 $ - $ -$ 13,193,676 Federal and state grants 460,575 ---10,271,058 10,731,633 Infrastructure sales tax capital projects ---59,980,446 -59,980,446 Bond covenants or debt service ----7,126,856 7,126,856 Transportation growth related capital ----92,824,664 92,824,664 Parks growth related capital expansion ----33,065,796 33,065,796 Transportation capital projects ----59,592,231 59,592,231 Community development ----40,094,448 40,094,448 Transportation operations ----2,100,564 2,100,564 Tourist development ----138,539,317 138,539,317 Conservation Collier ----31,426,820 31,426,820 Emergency 911 ----5,941,682 5,941,682 Law Enforcement ----8,601,814 8,601,814 General government facilities ----4,587,357 4,587,357 Libraries ----1,072,876 1,072,876 Court functions ----7,951,655 7,951,655 Public records modernization ----4,690,538 4,690,538 Other purposes ----1,249,207 1,249,207 Total restricted fund balance 460,575 12,441,793 751,883 59,980,446 449,136,883 522,771,580 Committed for: Special districts ----34,476,742 34,476,742 Natural resource management ----3,427,137 3,427,137 Utility regulation ----1,315,530 1,315,530 Other purposes ----1,135,282 1,135,282 Total committed fund balance ----40,354,691 40,354,691 Assigned for: Parks and recreation ----9,050,453 9,050,453 General building & improvements ----9,306,805 9,306,805 Water management ----5,285,066 5,285,066 Other purposes 1,115,194 ---8,334,961 9,450,155 Total assigned fund balance 1,115,194 ---31,977,285 33,092,479 Unassigned: 103,707,232 ----103,707,232 Total Fund Balances $ 107,666,002 $ 12,441,793 $ 751,883 $ 59,980,446 $ 524,356,203 $ 705,196,327 66 FINANCIAL SECTION Notes to the Financial Statements NOTE 12 – RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self-insurance internal service fund is maintained by the County to administer insurance activities relating to workers’ compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self-insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self-insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self-insurance fund and for all other covered risks of loss. Claim Type County’s Coverage Excess Carrier’s Coverage Property and casualty claims $50,000 ‐ $500,000 $50,000 - $75,000,000 ($250,000 named storm deductible; 3% deductible of reported values per damaged building; subject to $5,000,000 deductible cap) Auto liability claims $300,000 $300,001 - $5,000,000 Employee health claims $450,000 $450,001 - Unlimited Workers’ compensation claims $500,000 $500,001 - Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2019 the operating departments were charged $45,229,270 for workers’ compensation, health and property and casualty self-insurance programs. The claims loss reserve for workers’ compensation, health and property and casualty of $8,923,718 reported at September 30, 2019 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers’ compensation and property and casualty were discounted at 3.5%. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $4,887,264 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff’s Self-Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff’s Self-Insurance Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff’s Self-Insurance Fund program for workers’ compensation coverage. The Florida Sheriff’s Association Workers’ Compensation Insurance Trust (FSAWIT) is a limited self-insurance fund providing coverage for the first $500,000 of every claim. Re-insurance is provided through a third party insurer for all claims exceeding $500,000 up to $15,000,000. Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Statewide Florida Sheriff’s Self-Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. The Sheriff has also established a self-funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In 2019, there were two covered individuals who had higher deductible amounts because of a history of high claims. Both individuals had deductibles of $350,000. Specific claim excess coverage for these individuals was for claims exceeding $350,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The claims loss reserve for health of $2,946,000 reported at September 30, 2019 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff’s health claim loss reserve is recorded as a current liability. 67 FINANCIAL SECTION Notes to the Financial Statements NOTE 12 – RISK MANAGEMENT (Continued) CHANGES IN SELF-INSURANCE CLAIMS PAYABLE Changes in the self-insurance claims payable for fiscal years 2018 and 2019 were as follows for the County and Sheriff self- insurance programs: Property and Group Workers’ Casualty Health Compensation Total Balance at September 30, 2017 $ 1,188,801 $ 6,110,000 $ 1,185,958 $ 8,484,759 Current year claims incurred and changes in estimates 15,322,570 60,597,427 886,853 76,806,850 Claim payments (12,726,286) (59,700,427) (728,823) (73,155,536) Balance at September 30, 2018 3,785,085 7,007,000 1,343,988 12,136,073 Current year claims incurred and changes in estimates 7,013,280 64,969,121 736,218 72,718,619 Claim payments (8,062,174) (64,261,121) (661,679) (72,984,974) Balance at September 30, 2019 $ 2,736,191 $ 7,715,000 $ 1,418,527 $ 11,869,718 NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS COUNTY’S PLAN DESCRIPTION AND BENEFITS PROVIDED The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan (County’s OPEB Plan) and can amend the benefits provisions. The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. The Sheriff also provides post employment healthcare benefits under as separate plan. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County’s health insurance plan at the same group rate as for active employees. The Board of County Commissioners and the Tax Collector also subsidize the cost of the post employment healthcare for qualifying retirees and each has the authority to amend benefit provisions. The Board of County Commissioners offers a subsidy for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the Board, be at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan. A subsidy is currently provided to 24 retirees. The Tax Collector offers a subsidy of 100% the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement for employees hired prior to June 1, 2015. A subsidy is currently provided to 6 retirees. The County’s OPEB Plan is currently being funded on a pay as you go basis. No trust or agency fund has been established for the plan. The plan does not issue a separate financial report. PARTICIPANT DATA As of September 30, 2019, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits $ 65 Active employees 2,443 Total employees $ 2,508 68 FINANCIAL SECTION Notes to the Financial Statements NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued) TOTAL OPEB LIABILITY The County’s total OPEB liability of $9,169,502 was measured as of September 30, 2019 and was determined by an actual valuation as of October 1, 2019. The following table shows the changes in the County’s total OPEB liability for the year ended September 30, 2019. Total OPEB Liability Balance, as of October 1, 2018 $ 8,730,722 Changes: Service cost 438,933 Interest on total OPEB liability 287,048 Changes in assumptions or other inputs 387,596 Benefit payments (674,797) Net changes 438,780 Balance, as of September 30, 2019 $ 9,169,502 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the County’s total OPEB liability, as well as what the County’s total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease in Description Discount Rate OPEB Plan Discount Rate 1.00% Current Discount Rate 2.00% 1% Increase in Discount Rate 3.00% Total OPEB Liability $ 9,906,057 $ 9,169,502 $ 8,502,103 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the County’s total OPEB liability, as well as what the County’s total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1% Decrease in 1% Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 4.00% 5.00% 6.00% Total OPEB Liability $ 8,294,158 $ 9,169,502 $ 10,188,349 DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2019, the County’s OPEB expense was $835,132. In addition, the County reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ -$ 440,795 Changes in assumptions 823,983 167,593 $ 823,983 $ 608,388 69 FINANCIAL SECTION Notes to the Financial Statements NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be amortized over 4.31 years and will be recognized as follows: Deferred Year Ending Outflows of Deferred Inflows September 30 Resources of Resources 2020 $ 191,179 $ 156,891 2021 191,179 156,891 2022 191,179 155,524 2023 191,179 107,696 Thereafter 59,267 31,386 ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Entry Age Actuarial The actuarial assumptions are: Discount rate 2.0% (Based on the 20 year AA municipal bond rate) Healthcare cost trend rate 6% decreasing to 5% in 2026 and thereafter Salary increase 3% New employees None Mortality rates were based on the RP-2014 Mortality Fully Generational tables using Projection Scale MP-2018. Since the most recent valuation, the following changes have been made: The discount rate was changed from 3.25% to 2.0%. SHERIFF’S PLAN DESCRIPTION AND BENEFITS PROVIDED The Sheriff provides post employment healthcare benefits for retirees through a single employer defined benefit plan (Sheriff’s OPEB Plan) and can amend the benefit provisions. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff’s health insurance plan at the same group rate as for active employees. Prior to 2010, the Sheriff subsidized approximately 20% of the cost for both single and family healthcare for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. Approximately 29% of retirees receive the subsidy. The Sheriff’s OPEB Plan is currently being funded on a pay as you go basis. No trust or agency fund has been established for the plan. The plan does not issue a separate financial report. 70 FINANCIAL SECTION Notes to the Financial Statements NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued) PARTICIPANT DATA As of September 30, 2019, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 125 Active employees 1,122 Total employees 1,247 TOTAL OPEB LIABILITY The Sheriff’s total OPEB liability of $21,786,049 was measured as of September 30, 2019 and was determined by an actuarial valuation as of October 1, 2018. The following table shows the changes in the Sheriff’s total OPEB liability for the year ended September 30, 2019. Total OPEB Liability Balance, as of October 1, 2018 $ 19,492,497 Changes: Service cost 485,365 Interest on total OPEB liability 631,825 Differences between expected and actual experience - Changes in assumptions or other inputs 2,250,569 Benefit payments (1,074,207) Net changes 2,293,552 Balance, as of September 30, 2019 $ 21,786,049 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the Sheriff’s total OPEB liability, as well as what the Sheriff’s total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease in Current Discount 1% Increase in Description Discount Rate Rate Discount Rate OPEB Plan Discount Rate 1.00% 2.00% 3.00% Total OPEB Liability $ 23,864,077 $ 21,786,049 $ 19,950,680 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the Sheriff’s total OPEB liability, as well as what the Sheriff’s total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: Description Healthcare Cost Trend Rate 1% Decrease in Healthcare Cost Trend Rate 5.00% Healthcare Cost Trend Rate 6.00% 1% Increase in Healthcare Cost Trend Rate 7.00% Total OPEB Liability $ 19,982,313 $ 21,786,049 $ 23,951,848 71 FINANCIAL SECTION Notes to the Financial Statements NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2019, the Sheriff’s OPEB expense was $1,266,149. In addition, the Sheriff reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ 1,762,763 $ 60,888 Changes in assumptions 2,250,569 773,597 $ 4,013,332 $ 834,485 Amounts reported as deferred inflows and outflows of resources related to OPEB will be amortized over 7.17 and 7.09 years and will be recognized as follows: Year Ending September 30 2020 2021 2022 2023 2024 Thereafter Deferred Outflows of Resources $ 603,128 $ 603,128 603,128 603,128 603,128 997,692 Deferred Inflows of Resources 136,740 136,740 136,740 136,740 136,740 150,785 ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Entry Age Actuarial The actuarial assumptions are: Discount rate 2.0% (Based on the 20 year AA municipal bond rate Healthcare cost trend rate 6% decreasing to 5% in 2021 and thereafter Salary increase None New employees None Mortality rates were based on the RP-2014 Mortality Fully Generational tables using Projection Scale MP-2017. Since the most recent valuation, the following changes have been made: The discount rate was changed from 3.25% to 2.0%. 72 FINANCIAL SECTION Notes to the Financial Statements NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued) SUMMARY The aggregate amount of total OPEB liability, related deferred outflows of resources and deferred inflows of resources and OPEB expense for the County’s postemployment benefits plans are summarized below: County’s Sheriff’s OPEB Plan OPEB Plan Total Total OPEB liability $ 9,169,502 $ 21,786,049 $ 30,955,551 Deferred outflows of resources related to OPEB 823,983 4,013,332 4,837,315 Deferred inflows of resources related to OPEB 608,388 834,485 1,442,873 OPEB expense 835,132 1,266,149 2,101,281 NOTE 14 – LANDFILL LIABILITY On May 1, 1995, the County entered into a landfill operating agreement with a third party for the privatization of the County’s landfill operations. Under the contract, the third party is responsible for the daily operations, capital improvements, closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County’s estimated liability in connection with the landfills is included in the proprietary funds statement of net position. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost. NOTE 15 – SIGNIFICANT CONTINGENCIES LITIGATION The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as disclosed here, will not materially affect the financial position of the County. STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. The County Water and Sewer District reported an arbitrage liability of $125,442 as of September 30, 2019. HURRICANE IRMA On September 10, 2017, Category 3 Hurricane Irma made landfall in Collier County. Statewide, an estimated 6.5 million Floridians were ordered to evacuate, mostly those living on barrier islands or in coastal areas, in mobile or sub-standard homes and in low lying or flood prone areas. Mandatory evacuations were ordered for portions of Collier County. The primary impacts of Hurricane Irma were widespread power outages and debris, coastal flooding and beach erosion. The County has spent approximately $104 million on recovery efforts and has budgeted an additional $20.7 million in the 2020 fiscal year. In 2019, the County recognized $6.4 million in insurance proceeds and $44.7 million in revenue from the Federal Emergency Management Agency (FEMA). The County continues to expect significant reimbursements from both insurance and FEMA. In September 2018, the County filed a suit against the County’s property insurance carriers and insurance broker to recover costs incurred for debris removal from roadways and medians under the County’s property insurance policy. Claims were originally denied due to the determination that the roadways and medians were not “insurable locations”. The County estimates a favorable ruling will result in insurance reimbursements up to $10,000,000. 73 FINANCIAL SECTION Notes to the Financial Statements NOTE 16 – SIGNIFICANT COMMITMENTS Collier County has active construction projects as of September 30, 2019. The projects include road construction, governmental facilities and utilities improvements. At year end, the County’s significant commitments with contractors include the following: Governmental Activities: Infrastructure Sales Tax Other Governmental Funds Business-type Activities: Water and Sewer Other Enterprise Funds Total Category Public Safety Public Safety Physical Environment Transportation Culture and Recreation Utilities Airports Construction Commitments $ 2,543,019 2,359,605 812,071 13,350,457 28,484,989 $ 79,725,788 3,730,639 131,006,568 Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods or services have been ordered but not received. Encumbrance commitments do not include construction contracts, as they are included as contract commitments. Collier County had the following significant encumbrances as of September 30, 2019: Governmental Activities: Other Governmental Funds Business-type Activities: Water and Sewer Emergency Medical Services Internal Service Funds Total Category Encumbrance Commitments General Government Public Safety Physical Environment Transportation Economic Environment $ 518,339 569,779 7,811,545 4,593,476 758,727 Utilities Emergency Medical Services Motor Pool Capital Recovery $ 2,188,769 7,120,169 623,586 24,184,390 THIS PAGE INTENTIONALLY LEFT BLANK Required Supplementary Information THIS PAGE INTENTIONALLY LEFT BLANK 77 FINANCIAL SECTION Required Supplementary Information COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2019 2018 2017 2016 2015 2014 County’s Proportion of the Net Pension Liability 0.797837050% 0.804668214% 0.796720676% 0.772938545% 0.736106708% 0.703655077% County’s Proportionate Share of the Net Pension Liability $ 274,763,972 $ 242,370,237 $ 235,664,630 $ 195,167,590 $ 95,078,054 $ 42,933,306 County’s Covered Payroll * $ 228,455,160 $ 225,786,565 $ 212,195,163 $ 199,870,915 $ 195,154,275 $ 184,577,284 County’s Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 120.27% 107.34% 111.06% 97.65% 48.72% 23.26% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 82.61% 84.26% 83.89% 84.88% 92.00% 96.09% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date, restated for periods 2014 to 2017 pursuant to GASB No. 82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2019 2018 2017 2016 2015 2014 Contractually Required Contribution $ 25,202,730 $ 23,401,059 $ 20,299,090 $ 20,563,824 $ 17,830,147 $ 17,287,796 Contributions in Relation to the Contractually Required Contribution (25,202,730) (23,401,059) (20,299,090) (20,563,824) (17,830,147) (17,287,796) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - County’s Covered Payroll - Fiscal Year * $ 230,500,331 $ 226,283,207 $ 216,521,253 $ 206,179,415 $ 193,543,352 $ 185,505,694 Contributions as a Percentage of Covered Payroll 10.93% 10.34% 9.38% 9.97% 9.21% 9.32% * Covered Payroll - Fiscal Year consists of pensionable wages calculated for the respective fiscal year, restated for periods 2014 to 2017 pursuant to GASB No. 82, Pension Issues. SCHEDULE OF THE COUNTY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2019 2018 2017 2016 2015 2014 County’s Proportion of the Net Pension Liability 0.683003525% 0.690065185% 0.665383863% 0.645620406% 0.642983194% 0.621385755% County’s Proportionate Share of the Net Pension Liability $ 76,421,260 $ 73,037,274 $ 71,145,914 $ 75,244,385 $ 65,574,171 $ 58,101,084 County’s Covered Payroll * $ 228,455,160 $ 225,786,565 $ 212,195,163 $ 199,870,915 $ 195,154,275 $ 184,577,284 County’s Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 33.45% 32.35% 33.53% 37.65% 33.60% 31.48% Plan Fiduciary Net Position as a Percentage of the totalPension Liability 2.63% 2.15% 1.64% 0.97% 0.50% 0.99% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2019 2018 2017 2016 2015 2014 Contractually Required Contribution $ 3,792,652 $ 3,750,438 $ 3,593,353 $ 3,415,537 $ 2,614,704 $ 2,131,155 Contributions in Relation to the Contractually Required Contribution (3,792,652) (3,750,438) (3,593,353) (3,415,537) (2,614,704) (2,131,155) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - County’s Covered Payroll - Fiscal Year * $ 230,500,331 $ 226,283,207 $ 216,521,253 $ 206,179,415 $ 193,543,352 $ 185,505,694 Contributions as a Percentage of Covered Payroll 1.65% 1.66% 1.66% 1.66% 1.35% 1.15% * Covered Payroll - Fiscal Year consists of pensionable wages calculated pursuant to GASB No.82, Pension Issues. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. 78 FINANCIAL SECTION Required Supplementary Information COLLIER COUNTY, FLORIDA SCHEDULE OF CHANGES IN THE COLLIER COUNTY TOTAL OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years Board of County Commissioners and Constitutional Officers Total OPEB liability Service Cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending Sheriff Total OPEB liability Service Cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending 2019 $ 438,933 287,048 - - 387,596 (674,797) 438,780 8,730,722 $ 9,169,502 $ 485,365 631,825 - - 2,250,569 (1,074,207) 2,293,552 19,492,497 $ 21,786,049 2018 2017 $ 491,865 $ 464,531 252,345 248,849 -- -(8,258) (221,309) - (625,275) (589,882) (102,374) 115,240 8,833,096 8,717,856 $ 8,730,722 $ 8,833,096 $ 520,082 $ 491,420 503,525 502,621 -- 2,048,462 (83,607) (898,977) - (941,061) (871,353) 1,232,031 39,081 18,260,466 18,221,385 $ 19,492,497 $ 18,260,466 Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. Combining and Individual Fund Financial Statements and Other Supplemental Information THIS PAGE INTENTIONALLY LEFT BLANK 81 FINANCIAL SECTION Nonmajor Governmental Funds NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds ROAD DISTRICTS – To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT – To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT – To account for building permit and development fees to support licensing, permitting and inspection services. WATER MANAGEMENT AND POLLUTION CONTROL – To account for taxes levied County-wide to provide water resource management and water pollution control. PELICAN BAY – To account for taxes levied in the Pelican Bay development to provide water resource management and beautification services. STORMWATER UTILITY – To account for the accumulation of resources and expenditures related to the management of facilities and services for drainage and flood protection County-wide. GRANTS AND SHARED REVENUES – To account for the revenues received from federal, state and local grants. IMPROVEMENT DISTRICTS – To account for taxes levied within municipal service taxing districts to provide for specified improvements and/or the maintenance of such improvements. FIRE CONTROL DISTRICTS – To account for taxes levied within municipal service taxing districts for fire prevention and control. LIGHTING DISTRICTS – To account for taxes levied within municipal service taxing district for street lighting. 911 ENHANCEMENT FEE – To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. TOURIST DEVELOPMENT – To account for the 5% tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP – To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND – To account for moving traffic violation surcharges received to fund the County’s intergovernmental radio communications program. STATE COURT ADMINISTRATION – To account for County monies used to fund the operation of the court system. CONFISCATED PROPERTY – To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS – To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE – To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER – To account for the acquisition and management of environmentally sensitive lands. COURT INFORMATION TECHNOLOGY – To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES – To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION – To account for fund accumulation to meet the educational goals of the Collier County UF/IFAS extension. COURT FACILITIES FEE – To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING – To account for fees to be used to provide for affordable housing related projects. AVA MARIA INNOVATION ZONE – To account for the accumulation of resources for economic development in accordance with an approved tax increment financing plan. OTHER COURT SPECIAL REVENUE FUNDS – To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for modernization. 82 FINANCIAL SECTION Nonmajor Governmental Funds OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the Sheriff’s Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate welfare, crime prevention and training programs. OTHER SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Euclid and Lakeland Assessment Adoption Awareness Legal Aid Society Teen Court Law Enforcement Training Animal Control Domestic Violence Public Library Juvenile Assessment Center Law Library Driver Education Freedom Memorial Crime Prevention County Drug Abuse Permanent Funds RESOURCE RECOVERY PARK ENDOWMENT – To account for the permanent endowment established for the benefit of the County’s land conservation program. PEPPER RANCH CONSERVATION BANK – To account for the permanent endowment established for the benefit of establishing and maintaining a panther habitat land conservation bank. Debt Service Funds POOLED COMMERCIAL PAPER PROGRAM – To account for the accumulation of resources and payment of interest and principal on variable rate debt incurred for the acquisition of land for the County’s amateur sports park. GAS TAX REFUNDING REVENUE BONDS – To account for the accumulation of resources and payment of interest and principal on the Series 2012 Gas Tax Refunding Revenue Bonds and Series 2014 Gas Tax Refunding Revenue Bond (bank term loan) incurred in the refinancing of Gas Tax Revenue Bonds. COMMUNITY REDEVELOPMENT TAXABLE NOTE – To account for the accumulation of resources and payment of interest and principal on taxable long-term debt incurred for the acquisition of land in the Bayshore/Gateway Community Redevelopment Agency. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources and payment of interest and principal on the Series 2007 Forest Lakes Limited General Obligation Bonds debt incurred to finance the cost of certain roadway lighting, drainage and restoration in the Forest Lakes Municipal Services Taxing Unit. SPECIAL OBLIGATION REFUNDING REVENUE BONDS – To account for the accumulation of resources and payment of interest and principal on the Series 2010, 2010B, 2011 and 2013 Special Obligation Refunding Revenue Bonds and the Series 2017 Special Obligation Refunding Revenue Note (bank term loan) incurred in the refinancing of variable rate commercial paper loans and revenue bonds. Also used to account for the accumulation of resources and payment of interest and principal on the Series 2019 Taxable Special Obligation Revenue Note (bank term loan) used to purchase the Golden Gate Golf Course. TOURIST DEVELOPMENT TAX REVENUE BONDS – To account for the accumulation of resources and payment of interest and principal on the Series 2018 Tourist Development Tax Revenue Bonds incurred to pay the cost of the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. OTHER DEBT SERVICE – To account for the accumulation of resources and payment of interest and principal on special assessment debt incurred in the Naples Park area. Capital Project Funds COUNTY-WIDE CAPITAL IMPROVEMENTS – To account for capital projects, designated by the Board of County Commissioners, to be funded by a County-wide one third mil levy. PARKS IMPROVEMENTS – To account for the expenditure of funds raised specifically for improvements to parks. Projects include land acquisition, design, construction and equipping of certain Community Park sites in the unincorporated areas of the County. Primary funding is ad valorem taxes. 83 FINANCIAL SECTION Nonmajor Governmental Funds COUNTY-WIDE LIBRARY IMPACT FEES – To account for the receipt and expenditure of library impact fees collected from all qualifying new construction. These impact fees must be used for acquisition of County-wide library facilities. CORRECTIONAL FACILITIES IMPACT FEES – To account for the receipt and expenditure of correctional facilities impact fees collected from all qualifying new construction. These impact fees must be used for the acquisition/construction of correctional facilities. EMERGENCY MEDICAL SERVICES IMPACT FEES – To account for the receipt and expenditure of emergency medical service impact fees collected from all qualifying new construction. These impact fees must be used for acquisition/construction of emergency service facilities. WATER MANAGEMENT – To account for the receipt and expenditure of funds raised specifically for water management purposes. Primary funding is ad valorem taxes. PELICAN BAY CAPITAL IMPROVEMENTS – To account for the receipt and expenditure of funds raised specifically for water management purposes and the restoration of the Clam Bay estuary in the Pelican Bay Development. Primary funding is a special assessment. PARKS IMPACT DISTRICTS – To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities. ROAD IMPACT DISTRICTS – To account for the receipt and expenditure of road impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of roads. ROAD CONSTRUCTION – To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to, right- of-way acquisition, design and construction of various transportation improvements. GOVERNMENT FACILITIES IMPACT FEES – To account for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition and construction of government facilities. LAW ENFORCEMENT IMPACT FEES – To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition and construction of law enforcement related facilities. ALL TERRAIN VEHICLE PARK – To account for the receipt and expenditure of funds for the creation of an All Terrain Vehicle park. AMATEUR SPORTS COMPLEX – To account for major capital expenditures related to the new Amateur Sports Complex. OTHER CAPITAL PROJECTS – To account for major capital expenditure financed from resources other than proceeds from the issuance of long-term debt and the one third mil levy. 84 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2019 Special Revenue Funds Water ASSETS Road Districts Unincorporated Area MSTD Community Development Management and Pollution Control Pelican Bay Stormwater Utility Cash and investments Cash with fiscal agent Receivables: $ 1,909,870 - $ 15,257,221 - $ 42,759,459 - $ 1,215,685 - $ 4,098,341 - $ 417,208 - Interest Trade, net Notes 14,915 3,120 - 67,264 235,421 - 136,441 3,864 - 4,641 26 - 14,473 3 - 2,178 - - Impact Fee Special assessments Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs - - 859,803 26,662 - - 943,211 - - - - 553,860 683,112 - - 18,825 473,762 - - - - 220,373 - - - 626,913 - - - 34,156 9,975 - - 86,899 - - - - 76,209 - - - - - - - - - - - - 38,945 - - Total assets $ 3,757,581 $ 17,289,465 $ 43,747,050 $ 1,351,382 $ 4,189,026 $ 458,331 Liabilities, Deferred Inflows of Resources And Fund Balances Liabilities: Accounts payable Wages payable Due to other funds $ 241,884 471,855 - $ 1,362,796 554,958 623 $ 432,421 734,518 - $ 44,448 60,679 - $ 92,958 53,881 1 $ 44,207 46,638 - Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds 67 - - - - 5,258 5,933 1,628 95,165 - 2,423,878 - 61,785 - - - - - - - - - - - - - - - - - Total liabilities 713,806 2,026,361 3,652,602 105,127 146,840 90,845 Deferred inflows of resources: Unavailable revenue ------ Fund balances: Nonspendable Restricted Committed Assigned 943,211 2,100,564 - - 18,825 - 15,244,279 - - 40,094,448 - - 86,899 - 1,159,356 - - - 4,042,186 - 38,945 - - 328,541 Total fund balances 3,043,775 15,263,104 40,094,448 1,246,255 4,042,186 367,486 Total liabilities, deferred inflows of resources and fund balances $ 3,757,581 $ 17,289,465 $ 43,747,050 $ 1,351,382 $ 4,189,026 $ 458,331 See accompanying independent auditors’ report 85 FINANCIAL SECTION Nonmajor Governmental Funds --------- --------- --------- --------- --------- --------- --------- --------- --------- Special Revenue Funds State Grants and Fire 911 Housing Shared Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Revenue Districts Districts Districts Fee Development Partnership ICRP Fund Administration $ 6,257,658 $ 17,139,201 $ 525,073 $ 383,877 $ 2,800,773 $ 81,853,066 $ 3,890,869 $ 241,958 $ 110,401 14,523 54,891 3,198 1,622 8,923 265,779 10,928 719 1,174 157,856 149 226 44 -2,316,823 2,424 23,703 60,896 ------375,672 -- 52,486 181,006 15,711 9,564 -36,536 --- 7,501,222 ----1,307,647 --- -------5,200 - $ 13,983,745 $ 17,375,247 $ 544,208 $ 395,107 $ 2,809,696 $ 85,779,851 $ 4,279,893 $ 271,580 $ 172,471 $ 1,774,980 $ 225,607 $-$ 44,332 $ 55,954 $ 1,243,419 $ 299,413 $ 16,360 $- 88,370 18,016 ---109,474 8,259 -76,426 5,462,409 ---174,759 22,660 --- -7 ---100 --- -3,970 ------- 290,325 81,697 ------- -214,775 268,100 ------ 7,616,084 544,072 268,100 44,332 230,713 1,375,653 307,672 16,360 76,426 68,824 -------- -------5,200 - 6,298,837 ---2,578,983 84,404,198 3,972,221 -- -16,831,175 276,108 350,775 ---250,020 96,045 6,298,837 16,831,175 276,108 350,775 2,578,983 84,404,198 3,972,221 255,220 96,045 $ 13,983,745 $ 17,375,247 $ 544,208 $ 395,107 $ 2,809,696 $ 85,779,851 $ 4,279,893 $ 271,580 $ 172,471 86 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2019 Special Revenue Funds ASSETS Cash and investments Cash with fiscal agent Receivables: Interest Trade, net Notes Confiscated Property $ 85,611 - 333 - - GAC Land Sales, Roads and Canals $ 785,570 - 2,515 - - $ Utility Fee 1,300,720 - 4,135 19,110 - Conservation Collier $ 30,950,146 - 100,127 - - Court Information Technology $ 1,206,777 - 3,811 68,452 - $ Court Services 1,450,127 - - 25 - Impact Fee Special assessments Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs - - - - - - - - - - - - - - 229,733 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 40,917 - - - - - Total assets $ 85,944 $ 1,017,818 $ 1,323,965 $ 31,050,273 $ 1,279,040 $ 1,491,069 Liabilities, Deferred Inflows of Resources And Fund Balances Liabilities: Accounts payable Wages payable Due to other funds - - - - - - - 8,435 - 5,493 14,261 - 20,868 2,343 - 281,583 - - Due to other governments Unearned revenues - - - - - - - - 176,734 - 1,209,486 - Refundable deposits Retainage payable Advances from other funds - - - - - - - - - - - - - - - - - - Total liabilities --8,435 19,754 199,945 1,491,069 Deferred inflows of resources: Unavailable revenue ------ Fund balances: Nonspendable Restricted Committed Assigned - 85,944 - - - 1,017,818 - - - - 1,315,530 - - 31,030,519 - - - 1,079,095 - - - - - - Total fund balances 85,944 1,017,818 1,315,530 31,030,519 1,079,095 - Total liabilities, deferred inflows of resources and fund balances $ 85,944 $ 1,017,818 $ 1,323,965 $ 31,050,273 $ 1,279,040 $ 1,491,069 See accompanying independent auditors’ report 87 FINANCIAL SECTION Nonmajor Governmental Funds Special Revenue Funds University Extension Court Facilities Fee Affordable Housing Ave Maria Innovation Zone Other Court Special Revenue Funds Other Public Safety Revenue Funds Other Special Revenue Funds Total Special Revenue Funds $ 97,441 - $ 6,773,992 - $ 581,209 - $ 211,610 - $ 4,743,688 - $ 4,173,049 - $ 1,176,549 - $ 232,397,149 - 255 - - - 21,040 77,528 - - 1,718 - - - 660 - - - - - - - 3,828 85,657 - - 3,774 22,143 - - 743,865 3,077,470 375,672 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,076 - - - - - - - 141 40 - - - - - - 1,820,548 9,789,948 - 229,733 1,087,880 1,100,675 5,200 $ 97,696 $ 6,872,560 $ 582,927 $ 212,270 $ 4,743,688 $ 4,263,610 $ 1,202,647 $ 250,628,140 $ - - - - - - - - $ - - - - - - - - $ 2,742 3,238 - - - - - - $ - - - - - - - - $ 53,150 - - - - - - - $ 11,572 - 58,905 - - - - - $ 42,380 4,453 - 303 - - - - $ 6,296,567 2,255,804 5,719,357 3,815,833 5,933 67,383 467,187 482,875 --5,980 -53,150 70,477 47,136 19,110,939 -------68,824 - 97,696 - - - 6,872,560 - - - - 576,947 - - - 212,270 - - 4,690,538 - - - 4,193,133 - - - 199,366 - 956,145 1,093,080 188,715,920 40,354,691 1,284,686 97,696 6,872,560 576,947 212,270 4,690,538 4,193,133 1,155,511 231,448,377 $ 97,696 $ 6,872,560 $ 582,927 $ 212,270 $ 4,743,688 $ 4,263,610 $ 1,202,647 $ 250,628,140 88 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2019 Permanent Funds Debt Service Funds Forest Lakes Resource Pepper Pooled Limited Recovery Ranch Total Commercial Gas Tax Community General Park Conservation Permanent Paper Revenue Redevelopment Obligation Endowment Bank Funds Program Bonds Taxable Note Bonds ASSETS Cash and investments $ 1,791,199 $ 393,212 $ 2,184,411 $ 1,387 $ 918,479 $ 35,948 $ 627,967 Cash with fiscal agent -----317,603 - Receivables: Interest 5,601 1,243 6,844 -2,406 165 1,981 Trade, net ------- Notes ------- Impact Fee ------- Special assessments ------- Due from other funds ------6,474 Due from other governments ---16,687 344,465 -- Deposits ------- Inventory for resale ------- Inventory ------- Advances to other funds ------- Prepaid costs ------- Total assets $ 1,796,800 $ 394,455 $ 2,191,255 $ 18,074 $ 1,265,350 $ 353,716 $ 636,422 Liabilities, Deferred Inflows of Resources And Fund Balances Liabilities: Accounts payable $ - $ - $ - $ - $ - $ - $ - Wages payable ------- Due to other funds ------- Due to other governments -690 690 ---- Unearned revenues ------- Refundable deposits ------- Retainage payable ------- Advances from other funds ------- Total liabilities -690 690 ---- Deferred inflows of resources: Unavailable revenue ------- Fund balances: Nonspendable 1,582,800 211,464 1,794,264 ---- Restricted 214,000 182,301 396,301 18,074 1,265,350 353,716 636,422 Committed ------- Assigned ------- Total fund balances 1,796,800 393,765 2,190,565 18,074 1,265,350 353,716 636,422 Total liabilities, deferred inflows of resources and fund balances $ 1,796,800 $ 394,455 $ 2,191,255 $ 18,074 $ 1,265,350 $ 353,716 $ 636,422 See accompanying independent auditors’ report 89 FINANCIAL SECTION Nonmajor Governmental Funds Debt Service Funds Capital Project Funds Special Obligation Revenue Bonds Tourist Development Tax Revenue Bonds Other Debt Service Total Debt Service Funds County-Wide Capital Improvements Parks Improvements Count-Wide Library Impact Fees Correctional Facilities Impact Fees Emergency Medical Services Impact Fees $ 97,238 10,257,628 $ 2,588,564 - $ - - $ 4,269,583 10,575,231 $ 8,519,311 - $ 6,243,402 - $ 670,852 - $ 777,787 - $ 3,151,367 - 7,275 - - - - - - - 89 - - - - - - - - - - - - - - - 11,916 - - - - 6,474 361,152 - 31,592 - - - - 192,180 2,385,865 - 19,747 4,853 - - - 20,637 - - 2,775 - - 214,603 - 384,000 15,249 - 5,963 - - 91,362 - 1,269,000 24,887 - 9,960 - - 61,073 - 194,500 6,872 - --------- --------- --------- --------- $ 10,362,141 $ 2,588,653 $ -$ 15,224,356 $ 11,128,948 $ 6,288,639 $ 1,287,479 $ 2,168,999 $ 3,423,772 $ - - 8,061,500 - - $ 36,000 - - - - $ - - - - - $ 36,000 - 8,061,500 - - $ 1,197,024 - 6,507 109,718 - $ 364,487 - 5,892 - - $ - - - - - $ - - - - - $ - - - - - - - - - - - - - - - - - - 508,894 - - - - - - - - - - - - - 8,061,500 36,000 -8,097,500 1,822,143 370,379 --- ------214,603 91,362 61,073 - 2,300,641 - - - 2,552,653 - - - - - - - 7,126,856 - - - - - 9,306,805 - - - 5,918,260 - 1,072,876 - - - 2,077,637 - - - 3,362,699 - - 2,300,641 2,552,653 -7,126,856 9,306,805 5,918,260 1,072,876 2,077,637 3,362,699 $ 10,362,141 $ 2,588,653 $ -$ 15,224,356 $ 11,128,948 $ 6,288,639 $ 1,287,479 $ 2,168,999 $ 3,423,772 90 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2019 Capital Project Funds Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees ASSETS Cash and investments $ 400,790 $ 3,978,996 $ 30,598,255 $ 95,007,252 $ 53,857,538 $ 1,923,549 Cash with fiscal agent ------ Receivables: Interest 6,237 12,974 112,209 292,375 178,297 13,590 Trade, net -3 ---- Notes ------ Impact Fee --1,372,009 3,649,686 -236,240 Special assessments ------ Due from other funds 1,328,093 62,872 2,331,892 -3,951,878 2,605,000 Due from other governments -136,253 122,661 452,131 3,249,312 45,218 Deposits --1,250 --- Inventory for resale ------ Inventory ------ Advances to other funds ------ Prepaid costs ------ Total assets $ 1,735,120 $ 4,191,098 $ 34,538,276 $ 99,401,444 $ 61,237,025 $ 4,823,597 Liabilities, Deferred Inflows of Resources And Fund Balances Liabilities: Accounts payable $ 421,567 $ 248,151 $ 100,471 $ 1,849,429 $ 1,630,397 $- Wages payable ------ Due to other funds 66,581 ----- Due to other governments ------ Unearned revenues ------ Refundable deposits ------ Retainage payable 184,725 48,669 -1,077,665 14,397 - Advances from other funds ------ Total liabilities 672,873 296,820 100,471 2,927,094 1,644,794 - Deferred inflows of resources: Unavailable revenue --1,372,009 3,649,686 -236,240 Fund balances: Nonspendable ------ Restricted --33,065,796 92,824,664 59,592,231 4,587,357 Committed ------ Assigned 1,062,247 3,894,278 ---- Total fund balances 1,062,247 3,894,278 33,065,796 92,824,664 59,592,231 4,587,357 Total liabilities, deferred inflows of resources and fund balances $ 1,735,120 $ 4,191,098 $ 34,538,276 $ 99,401,444 $ 61,237,025 $ 4,823,597 See accompanying independent auditors’ report 91 FINANCIAL SECTION Nonmajor Governmental Funds Capital Project Funds Law Enforcement Impact Fees All Terrain Vehicle Park Amateur Sports Complex Other Capital Projects Total Capital Project Funds Total Nonmajor Governmental Funds $ 1,662,498 - $ 3,122,428 - $ 59,772,573 - $ 7,673,556 - $ 277,360,154 - $ 516,211,297 10,575,231 5,588 - - 98,109 - 471,000 - - - - - - 9,765 - - - - - - - - - - - 192,241 - - - - - - - - - - - 24,934 - - - 1,405 - - - - - - - 918,247 4,856 - 5,723,082 1,405 12,811,052 6,438,448 1,250 - - - - 1,680,872 3,082,326 375,672 5,723,082 1,405 14,638,074 16,589,548 1,250 229,733 1,087,880 1,100,675 5,200 $ 2,237,195 $ 3,132,193 $ 59,964,814 $ 7,699,895 $ 303,258,494 $ 571,302,245 $ - - - - - - - - $ - - - - - - - - $ 4,865,854 - - - - - 963,841 - $ 120,591 - - - - - 150,883 9,264 $ 10,797,971 - 78,980 109,718 - - 2,949,074 9,264 $ 17,130,538 2,255,804 13,859,837 3,926,241 5,933 67,383 3,416,261 492,139 --5,829,695 280,738 13,945,007 41,154,136 98,109 ---5,723,082 5,791,906 - 2,139,086 - - - - - 3,132,193 - 54,135,119 - - - 40,341 - 7,378,816 - 252,897,806 - 30,692,599 2,887,344 449,136,883 40,354,691 31,977,285 2,139,086 3,132,193 54,135,119 7,419,157 283,590,405 524,356,203 $ 2,237,195 $ 3,132,193 $ 59,964,814 $ 7,699,895 $ 303,258,494 $ 571,302,245 92 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Special Revenue Funds Water Revenues: Road Districts Unincorporated Area MSTD Community Development Management and Pollution Control Pelican Bay Stormwater Utility Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ - - 1,983,197 239,335 - 127,445 - 35,523 $ 47,516,329 24,066 151,837 2,538,324 220,345 864,029 - 674,802 $ - 27,380,276 378 3,494,353 - 1,472,829 - 49,955 $ 2,494,511 485 - 357,935 - 55,841 - - $ 563,751 - 10,277 - - 159,127 4,023,222 1,154 $ - - - 62,500 - 16,773 - - Total revenues 2,385,500 51,989,732 32,397,791 2,908,772 4,757,531 79,273 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service - - - 20,702,797 - - - 6,436,695 4,272,198 571,558 10,798,033 93,002 - 13,156,178 8,245,562 19,444,745 1,280,936 313,662 - - - - - 2,460,731 - - - - - - 958,109 2,704,008 - - - - - 2,326,888 - - - - Principal Interest - - - - - - - - - - - - Fiscal charges Capital outlay - 600,014 - 3,592,206 - 867,307 - 20,659 - 180,542 - 14,599 Total expenditures 21,302,811 38,919,870 30,152,212 2,481,390 3,842,659 2,341,487 Excess (deficit) of revenues over (under) expenditures (18,917,311) 13,069,862 2,245,579 427,382 914,872 (2,262,214) Other financing sources (uses): Bond issued Premiums on bonds issued - - - - - - - - - - - - Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - 25,335 251,194 20,170,858 (1,660,358) - 3,451 253,867 2,001,650 (14,246,076) - 38 2,186 934,700 (9,349,600) - - 790 76,656 (214,132) - 26,225 7,317 110,709 (153,863) - 800 - 2,648,900 (20,000) Total other financing sources (uses) 18,787,029 (11,987,108) (8,412,676) (136,686) (9,612) 2,629,700 Net change in fund balances (130,282) 1,082,754 (6,167,097) 290,696 905,260 367,486 Fund balances at beginning of year 3,174,057 14,180,350 46,261,545 955,559 3,136,926 - Fund balances at end of year $ 3,043,775 $ 15,263,104 $ 40,094,448 $ 1,246,255 $ 4,042,186 $ 367,486 See accompanying independent auditors’ report 93 FINANCIAL SECTION Nonmajor Governmental Funds --------- --------- --------- --------- --------- --------- Special Revenue Funds State Grants and Fire 911 Housing Shared Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Revenue Districts Districts Districts Fee Development Partnership ICRP Fund Administration $-$ 4,339,962 $ 1,247,392 $ 839,454 $-$ 31,652,487 $ - $ - $ - 16,880,457 73,506 --1,849,336 1,368,295 1,226,416 -- 28,245 181,954 9,636 --28,235 -290,232 166,275 --------707,795 143,990 549,112 34,373 18,559 89,505 2,505,352 132,079 6,327 9,519 331,103 10,566 -9,077 -129,072 306,251 144,318 4,500 17,383,795 5,155,100 1,291,401 867,090 1,938,841 35,683,441 1,664,746 440,877 888,089 833,882 -------1,192,683 791,781 -1,875,309 -1,924,098 --923,432 1,543,015 7,429,558 461,757 ---2,905,036 --- 707 1,010,283 -748,221 ----- 2,389,556 -----2,735,985 -- 4,039,306 -------- 19,725 1,043,704 ---14,828,596 --- --24,954 ------ -976 4,749 ------ 5,715,187 215,446 --32,216 1,333,469 1,170 -4,060 21,219,702 2,732,166 1,905,012 748,221 1,956,314 19,067,101 2,737,155 923,432 2,739,758 (3,835,907) 2,422,934 (613,611) 118,869 (17,473) 16,616,340 (1,072,409) (482,555) (1,851,669) 116 -25 --11,219 --- -10,750 -----1,580 - 4,160,440 616,865 581,892 9,564 -1,928,600 -730,400 2,120,300 -(793,419) (41,103) (23,955) -(4,670,255) (31,571) -(108,800) 4,160,556 (165,804) 540,814 (14,391) -(2,730,436) (31,571) 731,980 2,011,500 324,649 2,257,130 (72,797) 104,478 (17,473) 13,885,904 (1,103,980) 249,425 159,831 5,974,188 14,574,045 348,905 246,297 2,596,456 70,518,294 5,076,201 5,795 (63,786) $ 6,298,837 $ 16,831,175 $ 276,108 $ 350,775 $ 2,578,983 $ 84,404,198 $ 3,972,221 $ 255,220 $ 96,045 94 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Special Revenue Funds Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Confiscated Property $ - - - - 11,319 3,888 - - GAC Land Sales, Roads and Canals $ - - - - - 27,342 - - $ Utility Fee 74,260 - - - - 43,809 - - Conservation Collier $ 935 - 4,557 486 - 1,029,157 - 32,991 Court Information Technology $ - - - 876,486 - 36,730 - - $ Court Services - - 427,032 7,223,375 - 67,398 - - Total revenues 15,207 27,342 118,069 1,068,126 913,216 7,717,805 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service - 41,000 - - - - - - - - - - - 116,155 - - 271,332 - - - - - - 726,624 - - - - 813,826 4,572 - - - 26,536 - 7,717,805 - - - - - - Principal Interest Fiscal charges Capital outlay - - - - - - - - - - - - - - - 1,685,166 - - - 18,604 - - - - Total expenditures 41,000 116,155 271,332 2,411,790 863,538 7,717,805 Excess (deficit) of revenues over (under) expenditures (25,793) (88,813) (153,263) (1,343,664) 49,678 - Other financing sources (uses): Bond issued ------ Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - - - - - - - - - - - - - - - - - (253,600) - - - - - - - - - - Total other financing sources (uses) ---(253,600) -- Net change in fund balances (25,793) (88,813) (153,263) (1,597,264) 49,678 - Fund balances at beginning of year 111,737 1,106,631 1,468,793 32,627,783 1,029,417 - Fund balances at end of year $ 85,944 $ 1,017,818 $ 1,315,530 $ 31,030,519 $ 1,079,095 $ - See accompanying independent auditors’ report 95 FINANCIAL SECTION Nonmajor Governmental Funds Special Revenue Funds University Extension Court Facilities Fee Affordable Housing Ave Maria Innovation Zone Other Court Special Revenue Funds Other Public Safety Revenue Funds Other Special Revenue Funds Total Special Revenue Funds $ - - - 14,429 - 2,649 - 6,052 $ - - - - 891,443 205,982 - - $ - - 159 41,032 - 10,649 - 142,080 $ 89,800 - - - - 5,992 - - $ - - - 1,120,830 - 68,556 - - $ - - - 820,671 77,187 41,092 - 9,107 $ - 99,305 - 299,166 45,484 37,101 - 245,304 $ 88,818,881 27,504,132 23,975,447 17,793,499 1,953,573 7,765,205 4,023,222 2,131,855 23,130 1,097,425 193,920 95,792 1,189,386 948,057 726,360 173,965,814 - - 31,317 - - - - 332,588 - - - - - - - - - - 79,395 - - - - - - - - - 971,528 - - - - - - - 859,832 - - - - - 196,543 121,400 - - - 309,105 113,904 26,741,112 31,801,382 19,423,846 36,277,711 5,297,938 4,374,947 29,278,262 - - - - - - - - - - - - - - - - - - - - - 24,954 5,725 - -12,324 2,341 --275,319 50,700 14,621,329 31,317 344,912 81,736 -971,528 1,135,151 791,652 167,847,206 (8,187) 752,513 112,184 95,792 217,858 (187,094) (65,292) 6,118,608 -------- -------- - 23,807 - - - - - - - - 224,000 - - - - - - - - - - - 150,000 - - - 256,500 - 67,209 551,491 36,722,034 (31,566,732) 23,807 -224,000 --150,000 256,500 5,774,002 15,620 752,513 336,184 95,792 217,858 (37,094) 191,208 11,892,610 82,076 6,120,047 240,763 116,478 4,472,680 4,230,227 964,303 219,555,767 $ 97,696 $ 6,872,560 $ 576,947 $ 212,270 $ 4,690,538 $ 4,193,133 $ 1,155,511 $ 231,448,377 96 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Permanent Funds Debt Service Funds Pooled Resource Pepper Ranch Total Commercial Gas Tax Community Forest Lakes Recovery Park Conservation Permanent Paper Revenue Redevelopment Limited General Endowment Bank Funds Program Bonds Taxable Note Obligation Bonds Revenues: Taxes $ - $ - $ -$ -$ -$ -$ 509,376 Licenses, permits and impact fees ------- Intergovernmental ----2,229,931 -- Charges for services -211,464 211,464 ---- Fines and forfeitures ------- Interest income 56,350 6,907 63,257 39 33,686 2,074 21,466 Special assessments ------- Miscellaneous 8,059 10,300 18,359 ---- Total revenues 64,409 228,671 293,080 39 2,263,617 2,074 530,842 Expenditures: Current: General government ------- Public safety ------- Physical environment 1,509 88,506 90,015 ---- Transportation ------- Economic environment ------- Human services ------- Culture and recreation ------- Debt service Principal ---400,000 10,830,000 473,424 475,000 Interest ---335,792 2,541,594 156,626 76,181 Fiscal charges ---3,249 1,686 -2,939 Capital outlay ------- Total expenditures 1,509 88,506 90,015 739,041 13,373,280 630,050 554,120 Excess (deficit) of revenues over (under) expenditures 62,900 140,165 203,065 (739,002) (11,109,663) (627,976) (23,278) Other financing sources (uses): Bond issued ------- Premiums on bonds issued ------- Loans issued ------- Sale of capital assets ------- Insurance proceeds ------- Transfers in -253,600 253,600 729,650 11,350,900 625,100 6,275 Transfers out ------(15,439) Total other financing sources (uses) -253,600 253,600 729,650 11,350,900 625,100 (9,164) Net change in fund balances 62,900 393,765 456,665 (9,352) 241,237 (2,876) (32,442) Fund balances at beginning of year 1,733,900 -1,733,900 27,426 1,024,113 356,592 668,864 Fund balances at end of year $ 1,796,800 $ 393,765 $ 2,190,565 $ 18,074 $ 1,265,350 $ 353,716 $ 636,422 See accompanying independent auditors’ report 97 FINANCIAL SECTION Nonmajor Governmental Funds --------- --------- --------- --------- --------- Debt Service Funds Capital Project Funds Tourist Total Emergency Special Development Other Debt County-Wide Count-Wide Correctional Medical Obligation Tax Debt Service Capital Parks Library Facilities Services Revenue Bonds Revenue Bonds Service Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ - $ - $ -$ 509,376 $ - $- $- $ - $ - -----584,577 1,108,775 1,947,643 528,858 ---2,229,931 3,355,915 81,050 --- ----5,999 ---- 78,047 1,927 -137,239 321,995 183,778 24,834 41,330 83,548 ----7,551 2,925 --- 78,047 1,927 -2,876,546 3,691,460 852,330 1,133,609 1,988,973 612,406 ----6,373,985 ---- ----2,937,739 --18,162 3,901 ----244,524 ---- ----18,307 ---- ----7,712 2,463,048 --- 10,865,000 --23,043,424 ----- 7,190,796 1,209,772 -11,510,761 ----- 55,057 737,623 -800,554 ----- ----5,553,999 1,592,710 416 -367,799 18,110,853 1,947,395 -35,354,739 15,136,266 4,055,758 416 18,162 371,700 (18,032,806) (1,945,468) -(32,478,193) (11,444,806) (3,203,428) 1,133,193 1,970,811 240,706 -751,121 -751,121 ----- 60,000 --60,000 ----- ----73,125 ---- ----3,967,778 912,347 --- 17,378,600 3,747,000 -33,837,525 14,635,700 3,850,000 545,100 457,500 3,167,800 --(13,633) (29,072) (10,201,575) (22,006) (1,071,100) (1,838,000) (421,600) 17,438,600 4,498,121 (13,633) 34,619,574 8,475,028 4,740,341 (526,000) (1,380,500) 2,746,200 (594,206) 2,552,653 (13,633) 2,141,381 (2,969,778) 1,536,913 607,193 590,311 2,986,906 2,894,847 -13,633 4,985,475 12,276,583 4,381,347 465,683 1,487,326 375,793 $ 2,300,641 $ 2,552,653 $ -$ 7,126,856 $ 9,306,805 $ 5,918,260 $ 1,072,876 $ 2,077,637 $ 3,362,699 98 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Capital Project Funds Revenues: Water Management Pelican Bay Capital Improvements Parks Impact Districts Road Impact Districts Road Construction Government Facilities Impact Fees Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures $ - $ - - 39,753 - - $ - 254,644 - - -$ 11,948,088 - - - -$ 17,159,619 28,305,759 - -5,144,620 -72,821 -- $ - 3,633,274 - - - Interest income Special assessments Miscellaneous 117,705 - 249,702 113,719 3,428,569 - 965,326 - 10,224 2,745,115 - - 1,786,390 - 550,649 100,943 - - Total revenues 407,160 3,796,932 12,923,638 31,050,874 24,714,099 3,734,217 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment - - 2,170,784 - - - - 1,058,758 - - - - - - - - - - 298,480 - - - - 8,311,302 - 30,989 - - - - Human services ------ Culture and recreation Debt service --48,307 --- Principal Interest - - - - - - - - - - - - Fiscal charges Capital outlay - 3,005,550 - 58,753 - 30,557,959 - 13,283,937 - 6,152,330 - - Total expenditures 5,176,334 1,117,511 30,606,266 13,582,417 14,463,632 30,989 Excess (deficit) of revenues over (under) expenditures (4,769,174) 2,679,421 (17,682,628) 17,468,457 10,250,467 3,703,228 Other financing sources (uses): Bond issued ------ Premiums on bonds issued ------ Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - 5,663,438 (2,957,806) - - - 62,871 (137,384) 28,000,000 - 5,892 - (2,938,200) - - - - - - - 544,615 10,805,800 (11,350,900) - - - 6,460,074 (5,393,900) Total other financing sources (uses) 2,705,632 (74,513) 25,067,692 -(485) 1,066,174 Net change in fund balances (2,063,542) 2,604,908 7,385,064 17,468,457 10,249,982 4,769,402 Fund balances at beginning of year 3,125,789 1,289,370 25,680,732 75,356,207 49,342,249 (182,045) Fund balances at end of year $ 1,062,247 $ 3,894,278 $ 33,065,796 $ 92,824,664 $ 59,592,231 $ 4,587,357 See accompanying independent auditors’ report 99 FINANCIAL SECTION Nonmajor Governmental Funds Capital Project Funds Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Amateur Capital Project Governmental Impact Fees Park Sports Park Projects Funds Funds $- $ - $- $-$ 17,159,619 $ 106,487,876 2,160,462 --11,498 50,228,934 77,733,066 ----8,836,229 35,041,607 ----118,573 18,123,536 -----1,953,573 53,220 98,558 1,783,173 180,554 8,600,188 16,565,889 ----3,428,569 7,451,791 ----821,051 2,971,265 2,213,682 98,558 1,783,173 192,052 89,193,163 266,328,603 ----6,404,974 33,146,086 5,323 --61,557 3,026,682 34,828,064 ----3,474,066 22,987,927 ----8,609,782 44,887,493 -----5,297,938 ----18,307 4,393,254 -9,580 3,970 188,247 2,720,864 31,999,126 -----23,068,378 -----11,516,486 -----800,554 --14,247,816 3,328,129 78,149,398 92,770,727 5,323 9,580 14,251,786 3,577,933 102,404,073 305,696,033 2,208,359 88,978 (12,468,613) (3,385,881) (13,210,910) (39,367,430) --62,213,879 -62,213,879 62,965,000 --3,238,363 -3,238,363 3,238,363 ----28,000,000 28,060,000 ----73,125 140,334 ----5,430,632 5,982,123 --1,075,400 9,216,113 55,939,796 126,752,955 (1,731,100) --(11,526) (38,075,097) (69,670,901) (1,731,100) -66,527,642 9,204,587 116,820,698 157,467,874 477,259 88,978 54,059,029 5,818,706 103,609,788 118,100,444 1,661,827 3,043,215 76,090 1,600,451 179,980,617 406,255,759 $ 2,139,086 $ 3,132,193 $ 54,135,119 $ 7,419,157 $ 283,590,405 $ 524,356,203 100 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Infrastructure Sales Tax Road Districts (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ Budget 18,105,338 - - - - - - - $ Actual 60,787,027 - - - - 277,343 - - $ Variance 42,681,689 - - - - 277,343 - - $ Budget - - 1,861,800 230,000 - 15,000 - 40,200 $ Actual - - 1,983,197 239,335 - 93,837 - 35,523 $ Variance - - 121,397 9,335 - 78,837 - (4,677) Total revenues 18,105,338 61,064,370 42,959,032 2,147,000 2,351,892 204,892 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation - - - - - 300,000 - - - - - - 48,893 - - - - - - 251,107 - - - - 22,435,228 - - - - - - 20,702,797 - - - - - - 1,732,431 - - - Debt service Capital outlay - 17,805,338 - 1,166,289 - 16,639,049 - 735,551 - 600,014 - 135,537 Total expenditures 18,105,338 1,215,182 16,890,156 23,170,779 21,302,811 1,867,968 Excess (deficit) of revenues over (under) expenditures -59,849,188 59,849,188 (21,023,779) (18,950,919) 2,072,860 Other financing sources (uses): Bonds issued ------ Premiums on bonds issued Loans issued - - - - - - - - - - - - Sale of capital assets Insurance proceeds Transfers in Transfers out - - 300,000 (300,000) - - - - - - (300,000) 300,000 - 246,550 20,169,300 (1,658,800) 25,335 251,194 20,170,858 (1,660,358) 25,335 4,644 1,558 (1,558) Total other financing sources (uses) ---18,757,050 18,787,029 29,979 Net change in fund balances -59,849,188 59,849,188 (2,266,729) (163,890) 2,102,839 Fund balances at beginning of year ---2,266,729 2,266,729 - Fund balances at end of year $ -$ 59,849,188 $ 59,849,188 $ -$ 2,102,839 $ 2,102,839 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ $ 59,849,188 131,258 - - - - 59,980,446 $ $ (163,890) 33,608 - - - - (130,282) See accompanying independent auditors’ report 101 FINANCIAL SECTION Nonmajor Governmental Funds Unincorporated Area MSTD (Budgetary Basis) Budget Actual Variance $ 48,706,200 $ 47,516,329 $ (1,189,871) 35,300 24,066 (11,234) -151,837 151,837 3,157,700 2,538,324 (619,376) 237,000 220,345 (16,655) 122,000 645,062 523,062 --- 206,400 674,802 468,402 52,464,600 51,770,765 (693,835) 7,610,770 6,436,695 1,174,075 4,673,903 4,272,198 401,705 879,302 571,558 307,744 13,792,552 10,795,827 2,996,725 111,500 93,002 18,498 --- 13,970,114 13,156,178 813,936 --- 4,985,142 3,592,206 1,392,936 46,023,283 38,917,664 7,105,619 6,441,317 12,853,101 6,411,784 --- --- --- -3,451 3,451 150,682 253,867 103,185 5,482,882 5,757,773 274,891 (18,332,694) (18,129,558) 203,136 (12,699,130) (12,114,467) 584,663 (6,257,813) 738,634 6,996,447 11,970,466 11,970,466 - $ 5,712,653 $ 12,709,100 $ 6,996,447 $ 738,634 218,967 - (2,206) 127,359 - $ 1,082,754 Community Development (Budgetary Basis) Budget $- 24,074,200 - 3,335,600 - 143,300 - 50,100 27,603,200 9,234,831 24,504,734 1,611,600 364,900 - - - - 1,362,904 37,078,969 (9,475,769) - - - - - 1,054,700 (18,469,600) (17,414,900) (26,890,669) 41,330,536 $ 14,439,867 Actual Variance $ -$ - 27,380,276 3,306,076 378 378 3,494,353 158,753 -- 1,082,401 939,101 -- 49,955 (145) 32,007,363 4,404,163 8,245,562 989,269 19,444,745 5,059,989 1,280,936 330,664 313,662 51,238 -- -- -- -- 867,307 495,597 30,152,212 6,926,757 1,855,151 11,330,920 -- -- -- 38 38 2,186 2,186 1,054,700 - (10,078,962) 8,390,638 (9,022,038) 8,392,862 (7,166,887) 19,723,782 41,330,536 - $ 34,163,649 $ 19,723,782 $ (7,166,887) 390,428 - - 609,362 - $ (6,167,097) 102 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Water Management and Pollution Control Pelican Bay (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ Budget 2,587,400 - - 275,000 - 15,000 - - $ Actual 2,494,511 485 - 357,935 - 41,411 - - $ Variance (92,889) 485 - 82,935 - 26,411 - - $ Budget 585,000 - - 1,500 - 9,400 4,176,200 - $ Actual 563,751 - 10,277 - - 200,959 4,023,222 1,154 $ Variance (21,249) - 10,277 (1,500) - 191,559 (152,978) 1,154 Total revenues 2,877,400 2,894,342 16,942 4,772,100 4,799,363 27,263 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment - - 2,738,145 - - - - 2,460,731 - - - - 277,414 - - - - 1,199,912 3,428,289 - - - 958,109 2,704,008 - - - 241,803 724,281 - Human services Culture and recreation - - - - - - - - - - - - Debt service Capital outlay - 26,900 - 20,659 - 6,241 - 223,369 - 180,542 - 42,827 Total expenditures 2,765,045 2,481,390 283,655 4,851,570 3,842,659 1,008,911 Excess (deficit) of revenues over (under) expenditures 112,355 412,952 300,597 (79,470) 956,704 1,036,174 Other financing sources (uses): Bonds issued ------ Premiums on bonds issued ------ Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - 42,500 (230,200) - - 790 76,656 (214,132) - - 790 34,156 16,068 - - - 1,034,500 (1,240,800) - 26,225 7,317 110,709 (153,863) - 26,225 7,317 (923,791) 1,086,937 Total other financing sources (uses) (187,700) (136,686) 51,014 (206,300) (9,612) 196,688 Net change in fund balances (75,345) 276,266 351,611 (285,770) 947,092 1,232,862 Fund balances at beginning of year 752,845 752,845 -2,992,170 2,992,170 - Fund balances at end of year $ 677,500 $ 1,029,111 $ 351,611 $ 2,706,400 $ 3,939,262 $ 1,232,862 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ $ 276,266 14,430 - - - - 290,696 $ $ 947,092 (41,832) - - - - 905,260 See accompanying independent auditors’ report 103 FINANCIAL SECTION Nonmajor Governmental Funds ------ ------ ------ ------ ------ ------ ------ ------ -- -- Stormwater Utility Grants and Shared Revenues (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - ---39,128,670 15,866,922 (23,261,748) -62,500 62,500 26,962 28,245 1,283 -11,923 11,923 35,040 105,290 70,250 ---113,739 331,103 217,364 -74,423 74,423 39,304,411 16,331,560 (22,972,851) ---2,321,284 833,882 1,487,402 ---240,086 47,143 192,943 2,541,200 2,365,833 175,367 14,003,798 7,429,558 6,574,240 ---589,980 707 589,273 ---10,291,598 2,556,044 7,735,554 ---6,917,425 4,039,306 2,878,119 ---1,010,174 19,725 990,449 40,700 14,599 26,101 11,060,830 5,556,678 5,504,152 2,581,900 2,380,432 201,468 46,435,175 20,483,043 25,952,132 (2,581,900) (2,306,009) 275,891 (7,130,764) (4,151,483) 2,979,281 -800 800 -116 116 2,648,900 2,648,900 -6,234,116 4,214,122 (2,019,994) (20,000) (20,000) -(129,819) (53,682) 76,137 2,628,900 2,629,700 800 6,104,297 4,160,556 (1,943,741) 47,000 323,691 276,691 (1,026,467) 9,073 1,035,540 ---3,197,539 3,197,539 - $ 47,000 $ 323,691 $ 276,691 $ 2,171,072 $ 3,206,612 $ 1,035,540 $ 323,691 $ 9,073 4,850 38,700 38,945 - -276,876 $ 367,486 $ 324,649 104 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Improvement Districts Fire Control Districts (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bonds issued Premiums on bonds issued Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors’ report Budget $ 4,498,900 - - 259,900 - 91,600 - - 4,850,400 - - 4,237,100 2,670,784 - - 1,112,363 1,000 8,754,138 16,775,385 (11,924,985) - - - - - 5,924,930 (6,089,430) (164,500) (12,089,485) 14,215,685 $ 2,126,200 Actual $ 4,339,962 - 73,506 181,954 - 401,840 - 10,566 5,007,828 - - 461,757 1,010,283 - - 1,043,704 976 215,446 2,732,166 2,275,662 - - - - 10,750 5,862,095 (6,038,649) (165,804) $ 2,109,858 14,215,685 16,325,543 $ 2,109,858 147,272 - - - - $ 2,257,130 Variance $ (158,938) - 73,506 (77,946) - 310,240 - 10,566 157,428 - - 3,775,343 1,660,501 - - 68,659 24 8,538,692 14,043,219 14,200,647 - - - - 10,750 (62,835) 50,781 (1,304) 14,199,343 - $ 14,199,343 Budget $ 1,311,000 - - - - 1,000 - 1,200 1,313,200 - 2,101,500 - - - - - - - 2,101,500 (788,300) - - - - - 593,800 (42,800) 551,000 (237,300) 578,000 $ 340,700 Actual $ 1,247,392 - - 9,636 - 25,231 - - 1,282,259 - 1,875,309 - - - - - 29,703 - 1,905,012 (622,753) - - - 25 - 581,892 (41,103) 540,814 (81,939) 578,000 $ 496,061 $ (81,939) 9,142 - - - - $ (72,797) Variance $ (63,608) - - 9,636 - 24,231 - (1,200) (30,941) - 226,191 - - - - - (29,703) - 196,488 165,547 - - - 25 - (11,908) 1,697 (10,186) 155,361 - $ 155,361 105 FINANCIAL SECTION Nonmajor Governmental Funds Lighting Districts (Budgetary Basis) 911 Enhancement Fee (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 871,800 - - - $ 839,454 - - - $ (32,346) - - - $ - $ - 1,700,000 - - $ - 1,849,336 - - - 149,336 - - - - - - 13,748 - 9,077 - 13,748 - 9,077 - 26,200 - - - 65,533 - - - 39,333 - - 871,800 862,279 (9,521) 1,726,200 1,914,869 188,669 - - - 889,900 - - - - 748,221 - - - - 141,679 - - 2,000,200 - - - - 1,956,314 - - - - 43,886 - - - ------ ------ - - - - - - - 222,839 - - - 222,839 889,900 748,221 141,679 2,223,039 1,956,314 266,725 (18,100) 114,058 132,158 (496,839) (41,445) 455,394 ------ ------ ------ ------ - - (29,600) (29,600) (47,700) 202,400 - 9,564 (23,955) (14,391) 99,667 202,400 - 9,564 5,645 15,209 (147,367) - - - - - (496,839) 2,783,700 - - - - (41,445) 2,783,700 - - - - 455,394 - $ 154,700 $ 302,067 $ (147,367) $ 2,286,861 $ 2,742,255 $ 455,394 $ 99,667 4,811 - $ (41,445) 23,972 - -- -- - $ 104,478 $ - (17,473) 106 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Tourist Development State Housing Initiativeship Partnership (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ Budget 27,926,600 - - 6,500 - 528,500 - 50,000 $ Actual 31,652,487 - 1,368,295 28,235 - 1,826,464 - 129,072 $ Variance 3,725,887 - 1,368,295 21,735 - 1,297,964 - 79,072 $ Budget - - 5,537,264 - - 103,025 - 1,228,185 $ Actual - - 1,226,416 - - 97,646 - 306,251 $ Variance - - (4,310,848) - - (5,379) - (921,934) Total revenues 28,511,600 35,004,553 6,492,953 6,868,474 1,630,313 (5,238,161) Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service - - 5,099,516 - - - 18,326,017 - - - 2,905,036 - - - 14,828,596 - - - 2,194,480 - - - 3,497,421 - - - - - 6,867,304 - - - - - - - 2,735,985 - - - - - - - 4,131,319 - - - Capital outlay 22,279,252 1,333,469 20,945,783 1,170 1,170 - Total expenditures 45,704,785 19,067,101 26,637,684 6,868,474 2,737,155 4,131,319 Excess (deficit) of revenues over (under) expenditures (17,193,185) 15,937,452 33,130,637 -(1,106,842) (1,106,842) Other financing sources (uses): Bonds issued ------ Premiums on bonds issued Loans issued - - - - - - - - - - - - Sale of capital assets Insurance proceeds Payment to refunding bond escrow Transfers in Transfers out - - - 5,629,500 (8,381,205) 11,219 - - 5,798,598 (8,540,253) 11,219 - - 169,098 (159,048) - - - - - - - - - (31,571) - - - - (31,571) Total other financing sources (uses) (2,751,705) (2,730,436) 21,269 -(31,571) (31,571) Net change in fund balances (19,944,890) 13,207,016 33,151,906 -(1,138,413) (1,138,413) Fund balances at beginning of year 67,091,890 67,091,890 ---- Fund balances at end of year $ 47,147,000 $ 80,298,906 $ 33,151,906 $ -$ (1,138,413) $ (1,138,413) Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ $ 13,207,016 678,888 - - - - 13,885,904 $ $ (1,138,413) 34,433 - - - - (1,103,980) See accompanying independent auditors’ report 107 FINANCIAL SECTION Nonmajor Governmental Funds 800 MHZ IRCP Fund (Budgetary Basis) State Court Administration (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - - $ - - - $ - $ - - $ - - - - 291,100 - 800 - 144,100 - 290,232 - 4,565 - 144,318 - (868) - 3,765 - 218 - 150,000 698,300 1,000 - - - 166,275 707,795 6,921 - 4,500 - 16,275 9,495 5,921 - 4,500 436,000 439,115 3,115 849,300 885,491 36,191 - 1,086,900 - - 923,432 - - 163,468 - 1,229,840 1,584,400 - 1,192,683 1,543,015 - 37,157 41,385 - ------ ------ ------ ------ - 135,000 - - - 135,000 - 4,060 - 4,060 - - 1,221,900 923,432 298,468 2,818,300 2,739,758 78,542 (785,900) (484,317) 301,583 (1,969,000) (1,854,267) 114,733 ------ ------ ------ - - - 730,400 - 730,400 - 1,580 - 730,400 - 731,980 - 1,580 - - - 1,580 - - - 2,267,400 (255,900) 2,011,500 - - - 2,267,400 (255,900) 2,011,500 - - - - - - (55,500) 75,600 247,663 75,600 303,163 - 42,500 2,500 157,233 2,500 114,733 - $ 20,100 $ 323,263 $ 303,163 $ 45,000 $ 159,733 $ 114,733 $ 247,663 1,762 - $ 157,233 2,598 - -- -- - $ 249,425 - $ 159,831 108 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Confiscated Property GAC Land Sales, Roads and Canals (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ - - - - - 1,500 - - $ - - - - 11,319 2,876 - - $ - - - - 11,319 1,376 - - $ - - - - - 9,000 - 16,900 $ - - - - - 20,053 - - $ - - - - - 11,053 - (16,900) Total revenues 1,500 14,195 12,695 25,900 20,053 (5,847) Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay - 61,000 - - - - - - - - 41,000 - - - - - - - - 20,000 - - - - - - - - - - - - - 119,063 - - - - - - - - 116,155 - - - - - - - - 2,908 - - Total expenditures 61,000 41,000 20,000 119,063 116,155 2,908 Excess (deficit) of revenues over (under) expenditures (59,500) (26,805) 32,695 (93,163) (96,102) (2,939) Other financing sources (uses): Bonds issued Premiums on bonds issued Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - - - - (6,753) - - - - - - - - - - - - - 6,753 - - - - - - - - - - - - - - - - - - - - - Total other financing sources (uses) (6,753) -6,753 --- Net change in fund balances (66,253) (26,805) 39,448 (93,163) (96,102) (2,939) Fund balances at beginning of year 112,910 112,910 -883,300 883,300 - Fund balances at end of year $ 46,657 $ 86,105 $ 39,448 $ 790,137 $ 787,198 $ (2,939) Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors’ report $ $ (26,805) 1,012 - - - - (25,793) $ $ (96,102) 7,289 - - - - (88,813) 109 FINANCIAL SECTION Nonmajor Governmental Funds ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -- -- -- -- Utility Fee Conservation Collier (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 60,000 $ 74,260 $ 14,260 $-$ 935 $ 935 ----4,557 4,557 100,000 - (100,000) 100 486 386 5,000 32,097 27,097 302,800 753,623 450,823 ---326,200 32,991 (293,209) 165,000 106,357 (58,643) 629,100 792,592 163,492 426,300 271,332 154,968 1,168,009 726,624 441,385 ---2,055,508 1,685,166 370,342 426,300 271,332 154,968 3,223,517 2,411,790 811,727 (261,300) (164,975) 96,325 (2,594,417) (1,619,198) 975,219 ---100 -(100) ---1,060,400 1,060,400 - ---(1,314,000) (1,314,000) - ---(253,500) (253,600) (100) (261,300) (164,975) 96,325 (2,847,917) (1,872,798) 975,119 1,413,100 1,413,100 -32,995,017 32,995,017 - $ 1,151,800 $ 1,248,125 $ 96,325 $ 30,147,100 $ 31,122,219 $ 975,119 $ (164,975) $ (1,872,798) 11,712 275,534 $ (153,263) $ (1,597,264) 110 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Court Information Technology (Budgetary Basis) Court Services Budget Actual Variance Budget Actual Variance Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ - - - 800,000 - 4,200 - - $ - - - 876,486 - 26,859 - - $ - - - 76,486 - 22,659 - - $ - - 458,456 6,159,849 - 27,600 - - $ - - 427,032 7,223,375 - 67,398 - - $ - - (31,424) 1,063,526 - 39,798 - - Total revenues 804,200 903,345 99,145 6,645,905 7,717,805 1,071,900 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay 944,819 27,900 - - - 32,849 - - 69,881 813,826 4,572 - - - 26,536 - - 18,604 130,993 23,328 - - - 6,313 - - 51,277 6,645,905 - - - - - - - - 5,941,962 - - - - - - - - 703,943 - - - - - - - - Total expenditures 1,075,449 863,538 211,911 6,645,905 5,941,962 703,943 Excess (deficit) of revenues over (under) expenditures (271,249) 39,807 311,056 -1,775,843 1,775,843 Other financing sources (uses): Bonds issued Premiums on bonds issued Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total other financing sources (uses) ------ Net change in fund balances (271,249) 39,807 311,056 -1,775,843 1,775,843 Fund balances at beginning of year 802,749 802,749 ---- Fund balances at end of year $ 531,500 $ 842,556 $ 311,056 $ -$ 1,775,843 $ 1,775,843 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors’ report $ $ 39,807 9,871 - - - - 49,678 $ $ 1,775,843 - - - - (1,775,843) - 111 FINANCIAL SECTION Nonmajor Governmental Funds University Extension Court Facilities Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - - - 16,600 - - - - $ - - - 14,429 - 1,954 - 6,052 $ - - - (2,171) - 1,954 - 6,052 $ - - - - 800,000 50,000 - - $ - - - - 891,443 150,434 - - $ - - - - 91,443 100,434 - - 16,600 22,435 5,835 850,000 1,041,877 191,877 - - 68,200 - - - - - - - - 31,317 - - - - - - - - 36,883 - - - - - - 1,541,181 - - - - - - - 1,680,580 332,588 - - - - - - - 12,324 1,208,593 - - - - - - - 1,668,256 68,200 31,317 36,883 3,221,761 344,912 2,876,849 (51,600) (8,882) 42,718 (2,371,761) 696,965 3,068,726 - - - - - - - - - - - 23,807 - - - - - - 23,807 - - - - - - - - - - - - - - - - - - - - - - - -23,807 23,807 --- (51,600) 74,600 14,925 74,600 66,525 - (2,371,761) 6,199,084 696,965 6,199,084 3,068,726 - $ 23,000 $ 89,525 $ 66,525 $ 3,827,323 $ 6,896,049 $ 3,068,726 $ 14,925 695 - - - - $ 696,965 55,548 - - - - $ 15,620 $ 752,513 112 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Affordable Housing Ave Maria Innovation Zone (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ Budget - - - 41,032 - - - 142,052 $ Actual - - 159 41,032 - 13,928 - 142,080 $ Variance - - 159 - - 13,928 - 28 $ Budget 89,800 - - - - - - - $ Actual 89,800 - - - - 4,338 - - $ Variance - - - - - 4,338 - - Total revenues 183,084 197,199 14,115 89,800 94,138 4,338 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay - - - - 610,447 - - - 2,500 - - - - 79,395 - - - 2,341 - - - - 531,052 - - - 159 - - - - 1,000 - - - - - - - - - - - - - - - - - 1,000 - - - - Total expenditures 612,947 81,736 531,211 1,000 -1,000 Excess (deficit) of revenues over (under) expenditures (429,863) 115,463 545,326 88,800 94,138 5,338 Other financing sources (uses): Bonds issued Premiums on bonds issued Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - - - 224,000 - - - - - - 224,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total other financing sources (uses) 224,000 224,000 ---- Net change in fund balances (205,863) 339,463 545,326 88,800 94,138 5,338 Fund balances at beginning of year 205,863 205,863 -116,000 116,000 - Fund balances at end of year $ -$ 545,326 $ 545,326 $ 204,800 $ 210,138 $ 5,338 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ $ 339,463 (3,279) - - - - 336,184 $ $ 94,138 1,654 - - - - 95,792 See accompanying independent auditors’ report 113 FINANCIAL SECTION Nonmajor Governmental Funds Other Court Special Revenue Funds Other Public Safety Revenue Funds (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ -$ - - 1,110,000 - 30,500 - - -$ - - 1,120,830 - 68,556 - - - - - 10,830 - 38,056 - - $ -$ - - 70,000 69,000 17,500 - - -$ - - 69,862 77,187 30,207 - - - - - (138) 8,187 12,707 - - 1,140,500 1,189,386 48,886 156,500 177,256 20,756 2,175,700 - - - - - - - 573,100 971,528 - - - - - - - - 1,204,172 - - - - - - - 573,100 - 1,024,300 - - - - - - 100,000 - 239,327 - - - - - - - - 784,973 - - - - - - 100,000 2,748,800 971,528 1,777,272 1,124,300 239,327 884,973 (1,608,300) 217,858 1,826,158 (967,800) (62,071) 905,729 - - - - - - - - (1,608,300) 3,985,774 - - - - - - - - 217,858 3,985,774 - - - - - - - - 1,826,158 - - - - - - - (2,767) (2,767) (970,567) 1,306,618 - - - - - - - - (62,071) 1,306,618 - - - - - - 2,767 2,767 908,496 - $ 2,377,474 $ 4,203,632 $ 1,826,158 $ 336,051 $ 1,244,547 $ 908,496 $ 217,858 - - - - - $ 217,858 $ $ (62,071) 10,885 - - - 14,092 (37,094) 114 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Other Special Revenue Funds Resource Recovery Park Endowment (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bonds issued Premiums on bonds issued Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis Budget $- 51,000 - 242,900 40,000 6,700 - 187,081 527,681 245,300 121,400 - - - 323,500 277,281 - 107,000 1,074,481 (546,800) - - - - - 256,500 - 256,500 (290,300) 808,900 $ 518,600 Actual $ - 99,305 - 299,166 45,484 27,052 - 245,304 716,311 196,543 121,400 - - - 309,105 113,904 - 50,700 791,652 (75,341) - - - - - 256,500 - 256,500 181,159 808,900 $ 990,059 $ 181,159 10,049 - - - - $ 191,208 Variance $- 48,305 - 56,266 5,484 20,352 - 58,223 188,630 48,757 - - - - 14,395 163,377 - 56,300 282,829 471,459 - - - - - - - - 471,459 - $ 471,459 Budget $ - - - - - 20,000 - 300 20,300 - - 23,900 - - - - - - 23,900 (3,600) - - - - - - - - (3,600) 1,733,200 $ 1,729,600 Actual $ - - - - - 41,205 - 8,059 49,264 - - 1,509 - - - - - - 1,509 47,755 - - - - - - - - 47,755 1,733,200 $ 1,780,955 $ 47,755 15,145 - - - - $ 62,900 Variance $ - - - - - 21,205 - 7,759 28,964 - - 22,391 - - - - - - 22,391 51,355 - - - - - - - - 51,355 - $ 51,355 See accompanying independent auditors’ report 115 FINANCIAL SECTION Nonmajor Governmental Funds Pepper Ranch Conservation Bank Pooled Commercial Paper Program (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - - - - - - - - - $ - - - 211,464 - 4,848 - 10,300 226,612 $ - - - 211,464 - 4,848 - 10,300 226,612 $ - - - - - - - - - $ - - - - - 32 - - 32 $ - - - - - 32 - - 32 - - 195,300 - - - - - - - - 88,506 - - - - - - - - 106,794 - - - - - - - - - - - - - 763,500 - - - - - - - - 739,041 - - - - - - - - 24,459 - 195,300 88,506 106,794 763,500 739,041 24,459 (195,300) 138,106 333,406 (763,500) (739,009) 24,491 - - - - - 253,600 - - - - - - 253,600 - - - - - - - - - - - - - 763,500 - - - - - - 729,650 - - - - - - (33,850) - 253,600 58,300 253,600 391,706 - 333,406 763,500 - 729,650 (9,359) (33,850) (9,359) ------ $ 58,300 $ 391,706 $ 333,406 $ -$ (9,359) $ (9,359) $ $ 391,706 2,059 - - - - 393,765 $ $ (9,359) 7 - - - - (9,352) 116 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Gas Tax Revenue Bonds Community Redevelopment Taxable Note (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ Budget - - 1,975,000 - - 1,000 - - $ Actual - - 2,229,931 - - 24,767 - - $ Variance - - 254,931 - - 23,767 - - $ Budget - - - - - - - - $ Actual - - - - - 1,945 - - $ Variance - - - - - 1,945 - - Total revenues 1,976,000 2,254,698 278,698 -1,945 1,945 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay - - - - - - - 13,388,600 - - - - - - - - 13,373,280 - - - - - - - - 15,320 - - - - - - - - 631,200 - - - - - - - - 630,050 - - - - - - - - 1,150 - Total expenditures 13,388,600 13,373,280 15,320 631,200 630,050 1,150 Excess (deficit) of revenues over (under) expenditures (11,412,600) (11,118,582) 294,018 (631,200) (628,105) 3,095 Other financing sources (uses): Bonds issued Premiums on bonds issued Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - - - 11,350,900 - - - - - - 11,350,900 - - - - - - - - - - - - - 625,100 - - - - - - 625,100 - - - - - - - - Total other financing sources (uses) 11,350,900 11,350,900 -625,100 625,100 - Net change in fund balances (61,700) 232,318 294,018 (6,100) (3,005) 3,095 Fund balances at beginning of year 983,500 983,500 -356,100 356,100 - Fund balances at end of year $ 921,800 $ 1,215,818 $ 294,018 $ 350,000 $ 353,095 $ 3,095 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ $ 232,318 8,919 - - - - 241,237 $ $ (3,005) 129 - - - - (2,876) See accompanying independent auditors’ report 117 FINANCIAL SECTION Nonmajor Governmental Funds Forest Lakes Limited General Obligation Bonds (Budgetary Basis) Special Obligation Revenue Bonds (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 529,900 - - - - 2,000 - - $ 509,376 - - - - 15,812 - - $ (20,524) - - - - 13,812 - - $ -$ - - - - 12,000 - - -$ - - - - 56,985 - - - - - - - 44,985 - - 531,900 525,188 (6,712) 12,000 56,985 44,985 - - - - - - - 555,200 - - - - - - - - 554,120 - - - - - - - - 1,080 - - - - - - - - 18,147,900 - - - - - - - - 18,110,853 - - - - - - - - 37,047 - 555,200 554,120 1,080 18,147,900 18,110,853 37,047 (23,300) (28,932) (5,632) (18,135,900) (18,053,868) 82,032 $ - - - - - - (20,700) (20,700) (44,000) 650,700 606,700 - - - - - 6,275 (15,439) (9,164) (38,096) 650,700 $ 612,604 - - - - - 6,275 5,261 11,536 5,904 - $ 5,904 $ - - 60,000 - - 17,378,600 - 17,438,600 (697,300) 2,779,300 2,082,000 - - 60,000 - - 17,378,600 - 17,438,600 (615,268) 2,779,300 $ 2,164,032 - - - - - - - - 82,032 - $ 82,032 $ $ (38,096) 5,654 - - - - (32,442) $ $ (615,268) 21,062 - - - - (594,206) 118 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Tourist Development Tax Revenue Bonds County-Wide Capital Improvements (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $- Licenses, permits and impact fees ------ Intergovernmental ---6,143,190 3,355,915 (2,787,275) Charges for services ---5,999 5,999 - Fines and forfeitures ------ Interest income -1,416 1,416 70,000 409,261 339,261 Special assessments ------ Miscellaneous ----7,551 7,551 Total revenues -1,416 1,416 6,219,189 3,778,726 (2,440,463) Expenditures: Current: General government ---6,841,802 6,373,985 467,817 Public safety ---5,040,088 3,657,614 1,382,474 Physical environment ---289,263 244,524 44,739 Transportation ------ Economic environment ------ Human services ---38,619 18,307 20,312 Culture and recreation ---8,000 7,712 288 Debt service 1,961,150 1,947,395 13,755 --- Capital outlay ---16,974,819 5,553,999 11,420,820 Total expenditures 1,961,150 1,947,395 13,755 29,192,591 15,856,141 13,336,450 Excess (deficit) of revenues over (under) expenditures (1,961,150) (1,945,979) 15,171 (22,973,402) (12,077,415) 10,895,987 Other financing sources (uses): Bonds issued 751,150 751,121 (29) --- Premiums on bonds issued ------ Loans issued ------ Sale of capital assets ----73,125 73,125 Insurance proceeds ---1,264,259 3,967,778 2,703,519 Transfers in 3,747,000 3,747,000 -19,497,205 14,635,700 (4,861,505) Transfers out ---(4,174,900) (9,481,700) (5,306,800) Total other financing sources (uses) 4,498,150 4,498,121 (29) 16,586,564 9,194,903 (7,391,661) Net change in fund balances 2,537,000 2,552,142 15,142 (6,386,838) (2,882,512) 3,504,326 Fund balances at beginning of year ---8,051,623 8,051,623 - Fund balances at end of year $ 2,537,000 $ 2,552,142 $ 15,142 $ 1,664,785 $ 5,169,111 $ 3,504,326 Reconciliation: Net change in fund balance, budgetary basis $ 2,552,142 $ (2,882,512) Change in fair value of investments 511 (87,266) Ad valorem refunds not budgeted -- Change in inventory -- Advances budgeted as transfers -- Unbudgeted funds -- Net change in fund balance, GAAP basis $ 2,552,653 $ (2,969,778) See accompanying independent auditors’ report 119 FINANCIAL SECTION Nonmajor Governmental Funds --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- Parks Improvements (Budgetary Basis) Budget Actual Variance $- $ - $ - 615,000 584,577 (30,423) -81,050 81,050 32,000 233,897 201,897 -2,925 2,925 647,000 902,449 255,449 3,340,025 2,463,048 876,977 6,623,957 1,592,710 5,031,247 9,963,982 4,055,758 5,908,224 (9,316,982) (3,153,309) 6,163,673 791,543 912,347 120,804 4,822,000 3,850,000 (972,000) (24,625) (22,006) 2,619 5,588,918 4,740,341 (848,577) (3,728,064) 1,587,032 5,315,096 4,281,766 4,281,766 - $ 553,702 $ 5,868,798 $ 5,315,096 $ 1,587,032 (50,119) - - - - $ 1,536,913 County-Wide Library Impact Fee (Budgetary Basis) Budget Actual Variance $ - $ - $ - 825,000 1,108,775 283,775 7,000 31,337 24,337 832,000 1,140,112 308,112 89,598 -89,598 456 416 90,054 416 89,638 741,946 1,139,696 397,750 233,500 233,500 - (1,071,100) (1,071,100) - (837,600) (837,600) - (95,654) 302,096 397,750 565,854 565,854 - $ 470,200 $ 867,950 $ 397,750 $ 302,096 (6,503) - - 311,600 - $ 607,193 40 120 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Correctional Facilities Impact Fees Emergency Medical Services Impact Fees (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ Budget - 1,460,000 - - - 12,000 - - $ Actual - 1,947,643 - - - 29,879 - - $ Variance - 487,643 - - - 17,879 - - $ Budget - 360,000 - 105,000 - 6,000 - - $ Actual - 528,858 - - - 60,619 - - $ Variance - 168,858 - (105,000) - 54,619 - - Total revenues 1,472,000 1,977,522 505,522 471,000 589,477 118,477 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay - 159,007 - - - - - - - - 18,162 - - - - - - - - 140,845 - - - - - - - - 177,104 - - - - - - 3,001,731 - 3,901 - - - - - - 367,799 - 173,203 - - - - - - 2,633,932 Total expenditures 159,007 18,162 140,845 3,178,835 371,700 2,807,135 Excess (deficit) of revenues over (under) expenditures 1,312,993 1,959,360 646,367 (2,707,835) 217,777 2,925,612 Other financing sources (uses): Bonds issued Premiums on bonds issued Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - - - 457,500 (1,838,000) - - - - - 457,500 (1,838,000) - - - - - - - - - - - - 1,205,000 (421,600) - - - - - 1,205,000 (421,600) - - - - - - - Total other financing sources (uses) (1,380,500) (1,380,500) -783,400 783,400 - Net change in fund balances (67,507) 578,860 646,367 (1,924,435) 1,001,177 2,925,612 Fund balances at beginning of year 1,557,707 1,557,707 -2,274,135 2,274,135 - Fund balances at end of year $ 1,490,200 $ 2,136,567 $ 646,367 $ 349,700 $ 3,275,312 $ 2,925,612 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ $ 578,860 11,451 - - - - 590,311 $ $ 1,001,177 22,929 - - 1,962,800 - 2,986,906 See accompanying independent auditors’ report 121 FINANCIAL SECTION Nonmajor Governmental Funds -- -- -- -- Water Management (Budgetary Basis) Pelican Bay Capital Improvements (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - - - 39,753 - 97,000 - - $ - $ - - 39,753 - 145,273 - 249,702 - $ - - - - 48,273 - 249,702 - - - - - 5,500 3,558,800 - $ - $ - 254,644 - - 144,850 3,428,569 - - - 254,644 - - 139,350 (130,231) - 136,753 434,728 297,975 3,564,300 3,828,063 263,763 ------ - 7,652,133 - - 2,170,784 - - 5,481,349 - - 1,493,603 - - 1,058,758 - - 434,845 - ------ ------ ------ - 14,420,412 - 3,005,550 - 11,414,862 - 2,714,487 - 58,753 - 2,655,734 22,072,545 5,176,334 16,896,211 4,208,090 1,117,511 3,090,579 (21,935,792) (4,741,606) 17,194,186 (643,790) 2,710,552 3,354,342 ------ ------ ------ ------ - 20,100,000 (4,613,292) 15,486,708 (6,449,084) 6,453,984 - 5,663,438 (2,957,806) 2,705,632 (2,035,974) 6,453,984 - (14,436,562) 1,655,486 (12,781,076) 4,413,110 - - 1,000,000 (1,193,400) (193,400) (837,190) 1,068,144 - 62,871 (137,384) (74,513) 2,636,039 1,068,144 - (937,129) 1,056,016 118,887 3,473,229 - $ 4,900 $ 4,418,010 $ 4,413,110 $ 230,954 $ 3,704,183 $ 3,473,229 $ (2,035,974) $ 2,636,039 (27,568) (31,131) $ (2,063,542) $ 2,604,908 122 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Parks Impact Districts Road Impact Districts (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ Budget - 8,325,000 - - - 112,000 - - $ Actual - 11,948,088 - - - 701,397 - 10,224 $ Variance - 3,623,088 - - - 589,397 - 10,224 $ Budget - 13,600,000 - - - 200,000 - - $ Actual - 28,305,759 - - - 3,492,472 - - $ Variance - 14,705,759 - - - 3,292,472 - - Total revenues 8,437,000 12,659,709 4,222,709 13,800,000 31,798,231 17,998,231 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services - - - - - - - - - - - - - - - - - - - - - 4,288,589 - - - - - 298,480 - - - - - 3,990,109 - - Culture and recreation Debt service Capital outlay 262,034 - 55,354,039 48,307 - 30,557,959 213,727 - 24,796,080 - - 53,830,801 - - 13,283,937 - - 40,546,864 Total expenditures 55,616,073 30,606,266 25,009,807 58,119,390 13,582,417 44,536,973 Excess (deficit) of revenues over (under) expenditures (47,179,073) (17,946,557) 29,232,516 (44,319,390) 18,215,814 62,535,204 Other financing sources (uses): Bonds issued ------ Premiums on bonds issued Loans issued Sale of capital assets Insurance proceeds Transfers in - 28,500,000 - - - - 28,000,000 - 5,892 - - (500,000) - 5,892 - - - - - - - - - - - - - - - - Transfers out (2,938,200) (2,938,200) ---- Total other financing sources (uses) 25,561,800 25,067,692 (494,108) --- Net change in fund balances (21,617,273) 7,121,135 28,738,408 (44,319,390) 18,215,814 62,535,204 Fund balances at beginning of year 24,530,515 24,530,515 -72,787,897 72,787,897 - Fund balances at end of year $ 2,913,242 $ 31,651,650 $ 28,738,408 $ 28,468,507 $ 91,003,711 $ 62,535,204 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ $ 7,121,135 263,929 - - - - 7,385,064 $ $ 18,215,814 (747,357) - - - - 17,468,457 See accompanying independent auditors’ report 123 FINANCIAL SECTION Nonmajor Governmental Funds ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -- -- -- Road Construction Government Facilities Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 15,700,000 $ 17,159,619 $ 1,459,619 $- $- $ - ---2,350,000 3,633,274 1,283,274 4,500,000 5,144,620 644,620 --- 65,321 72,821 7,500 --- 250,000 2,270,815 2,020,815 20,000 73,152 53,152 800,344 550,649 (249,695) --- 21,315,665 25,198,524 3,882,859 2,370,000 3,706,426 1,336,426 ---130,025 30,989 99,036 10,324,558 8,311,302 2,013,256 --- 42,402,691 6,152,330 36,250,361 408 -408 52,727,249 14,463,632 38,263,617 130,433 30,989 99,444 (31,411,584) 10,734,892 42,146,476 2,239,567 3,675,437 1,435,870 530,000 544,615 14,615 --- 12,805,800 10,805,800 (2,000,000) 3,105,900 3,105,900 - (25,800,900) (11,350,900) 14,450,000 (5,393,900) (5,393,900) - (12,465,100) (485) 12,464,615 (2,288,000) (2,288,000) - (43,876,684) 10,734,407 54,611,091 (48,433) 1,387,437 1,435,870 54,810,784 54,810,784 -3,075,333 3,075,333 - $ 10,934,100 $ 65,545,191 $ 54,611,091 $ 3,026,900 $ 4,462,770 $ 1,435,870 $ 10,734,407 $ 1,387,437 (484,425) 27,791 -3,354,174 $ 10,249,982 $ 4,769,402 124 FINANCIAL SECTION Nonmajor Governmental Funds COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2019 Law Enforcement Impact Fee All Terrain Vehicle Park (Budgetary Basis) (Budgetary Basis) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ Budget - 1,310,000 - - - 20,000 - - $ Actual - 2,160,462 - - - 38,927 - - $ Variance - 850,462 - - - 18,927 - - $ Budget - - - - - 30,000 - - $ Actual - - - - - 72,080 - - $ Variance - - - - - 42,080 - - Total revenues 1,330,000 2,199,389 869,389 30,000 72,080 42,080 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service - 160,345 - - - - - - - 5,323 - - - - - - - 155,022 - - - - - - - - - - - - 40,000 - - - - - - - 9,580 - - - - - - - 30,420 - Capital outlay 15,209 -15,209 --- Total expenditures 175,554 5,323 170,231 40,000 9,580 30,420 Excess (deficit) of revenues over (under) expenditures 1,154,446 2,194,066 1,039,620 (10,000) 62,500 72,500 Other financing sources (uses): Bonds issued Premiums on bonds issued - - - - - - - - - - - - Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out - - - - (1,731,100) - - - - (1,731,100) - - - - - - - - - - - - - - - - - - - - Total other financing sources (uses) (1,731,100) (1,731,100) ---- Net change in fund balances (576,654) 462,966 1,039,620 (10,000) 62,500 72,500 Fund balances at beginning of year 1,169,154 1,169,154 -3,043,639 3,043,639 - Fund balances at end of year $ 592,500 $ 1,632,120 $ 1,039,620 $ 3,033,639 $ 3,106,139 $ 72,500 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Ad valorem refunds not budgeted Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ $ 462,966 14,293 - - - - 477,259 $ $ 62,500 26,478 - - - - 88,978 See accompanying independent auditors’ report 125 FINANCIAL SECTION Nonmajor Governmental Funds Amateur Sports Park (Budgetary Basis) Other Capital Projects (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - - - $ - - - - - $ -$ 5,000 - -$ 11,498 - - 6,498 - ------ - - - - 2,289,761 - - 2,289,761 - - 10,200 - - 129,091 - - 118,891 - ------ -2,289,761 2,289,761 15,200 140,589 125,389 - - - - - - - - - 3,376,200 96,966 - - 61,557 - 3,376,200 35,409 - ------ ------ - 4,000 - 66,598,256 - 3,970 - 14,247,816 - 30 - 52,350,440 - 747,087 - 5,979,542 - 188,247 - 3,328,129 - 558,840 - 2,651,413 66,602,256 14,251,786 52,350,470 10,199,795 3,577,933 6,621,862 (66,602,256) (11,962,025) 54,640,231 (10,184,595) (3,437,344) 6,747,251 62,213,850 3,238,450 - 62,213,879 3,238,363 - 29 (87) - - - - - - - - - - ------ - 1,075,400 - 66,527,700 (74,556) 74,556 - 1,075,400 - 66,527,642 54,565,617 74,556 - - - (58) 54,640,173 - - 9,214,800 (101,650) 9,113,150 (1,071,445) 1,659,745 - 9,216,113 (11,526) 9,204,587 5,767,243 1,659,745 - 1,313 90,124 91,437 6,838,688 - $ -$ 54,640,173 $ 54,640,173 $ 588,300 $ 7,426,988 $ 6,838,688 $ 54,565,617 (506,588) - $ 5,767,243 51,463 - -- -- - $ 54,059,029 - $ 5,818,706 THIS PAGE INTENTIONALLY LEFT BLANK 127 FINANCIAL SECTION Nonmajor Enterprise Funds NONMAJOR ENTERPRISE FUNDS AIRPORT AUTHORITY – To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT – To account for the provision of public transportation throughout the County. 128 FINANCIAL SECTION Nonmajor Enterprise Funds -- COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS September 30, 2019 Airport Authority ASSETS Current assets: Cash and investments $ 2,255,478 Receivables: Trade, net 23,963 Interest 8,744 Due from other funds - Inventory 125,495 Restricted assets: Cash and investments 109,734 Due from other governments 2,913,443 Total current assets 5,436,857 Noncurrent assets: Capital assets: Land and nondepreciable capital assets 9,795,347 Depreciable capital assets, net 28,954,713 Total noncurrent assets 38,750,060 Total assets 44,186,917 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB 4,385 Deferred outflows of resources related to pensions 218,720 Total deferred outflows of resources 223,105 LIABILITIES Current liabilities: Accounts payable 389,327 Wages payable 32,386 Retainage payable 74,181 Due to other funds 170 Due to other governments 4,594 Unearned revenues 34,283 Compensated absences 41,898 Net pension liability 4,930 Liabilities payable from restricted assets: Accounts payable 996,548 Wages payable - Retainage payable 462,419 Due to other governments - Refundable deposits 9,826 Unearned revenue 2,753 Total current liabilities 2,053,315 Noncurrent liabilities: Advances from other funds 617,649 Compensated absences 10,475 Total OPEB liability 49,107 Net pension liability 714,872 Total noncurrent liabilities 1,392,103 Total liabilities 3,445,418 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 3,268 Deferred inflows of resources related to pensions 51,172 Total deferred inflows of resources 54,440 NET POSITION Net investment in capital assets 36,917,287 Restricted for grants and other purposes 1,551,564 Unrestricted 2,441,313 Total net position $ 40,910,164 See accompanying independent auditors’ report Total Collier Nonmajor Area Enterprise Transit Funds $ 1,360,006 $ 3,615,484 11,143 35,106 4,093 12,837 1,098 1,098 -125,495 68,123 177,857 1,797,211 4,710,654 3,241,674 8,678,531 6,146,498 15,941,845 18,562,122 47,516,835 24,708,620 63,458,680 27,950,294 72,137,211 1,686 6,071 86,228 304,948 87,914 311,019 608,755 998,082 15,343 47,729 -74,181 3,636 3,806 16,502 21,096 -34,283 27,608 69,506 1,718 6,648 871,382 1,867,930 35,220 497,639 66,445 66,445 50 9,876 -2,753 1,646,659 3,699,974 -617,649 6,902 17,377 18,887 67,994 277,122 991,994 302,911 1,695,014 1,949,570 5,394,988 1,303 4,571 19,637 70,809 20,940 75,380 24,545,223 61,462,510 1,055,633 2,607,197 466,842 2,908,155 $ 26,067,698 $ 66,977,862 129 FINANCIAL SECTION Nonmajor Enterprise Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For T he fiscal Year Ended September 30, 2019 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Operating revenues: Charges for services $ 4,619,243 $ 1,168,868 $ 5,788,111 Miscellaneous 19,498 34,309 53,807 Total operating revenues 4,638,741 1,203,177 5,841,918 Operating expenses: Personal services 1,113,117 436,930 1,550,047 Operating 3,667,225 10,624,993 14,292,218 Depreciation 1,541,896 1,922,517 3,464,413 Total operating expenditures 6,322,238 12,984,440 19,306,678 Operating loss (1,683,497) (11,781,263) (13,464,760) Non-operating revenues: Operating grants and contributions -4,541,137 4,541,137 Interest income 74,844 45,828 120,672 Insurance reimbursement 585,498 176,532 762,030 Interest expense (8,287) -(8,287) Gain on disposal of capital assets 2,175 14,820 16,995 Total non-operating revenues Loss before contributions and transfers 654,230 (1,029,267) 4,778,317 (7,002,946) 5,432,547 (8,032,213) Capital grants and contributions 4,671,930 860,582 5,532,512 Transfers in 1,445,000 5,559,829 7,004,829 Transfers out (15,000) - (15,000) Total transfers and contributions Changes in net position Net position - beginning Net position - ending $ 6,101,930 5,072,663 35,837,501 40,910,164 $ 6,420,411 (582,535) 26,650,233 26,067,698 $ 12,522,341 4,490,128 62,487,734 66,977,862 See accompanying independent auditors’ report 130 FINANCIAL SECTION Nonmajor Enterprise Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For The fiscal Year Ended September 30, 2019 Total Cash flows from operating activities: Cash received for services Cash payments for goods and services Cash payments to employees Cash payments for interfund services Net cash used for operating activities Airport Authority $ 4,624,154 (3,268,191) (1,012,789) (442,182) (99,008) $ Collier Area Transit 1,224,368 (7,988,956) (388,111) (2,681,618) (9,834,317) Nonmajor Enterprise Funds $ 5,848,522 (11,257,147) (1,400,900) (3,123,800) (9,933,325) Cash flows from non-capital financing activities: Cash received from operating grants Cash transfers from other funds Cash transfers to other funds Net cash provided by non-capital financing activities - 2,054,363 (15,000) 2,039,363 4,858,466 5,575,478 - 10,433,944 4,858,466 7,629,841 (15,000) 12,473,307 Cash flows from capital and related financing activities: Receipts from insurance reimbursements Proceeds from disposal of capital assets Proceeds from capital grants Payments for capital acquisitions Net cash provided by (used for) capital and related financing ac 625,041 2,175 2,685,334 (4,507,202) tivities (1,194,652) 177,888 15,550 869,634 (936,012) 127,060 802,929 17,725 3,554,968 (5,443,214) (1,067,592) Cash flows from investing activities: Interest on investments Net cash provided by investing activities 69,606 69,606 43,817 43,817 113,423 113,423 Net increase in cash and investments 815,309 770,504 1,585,813 Cash and investments, October 1, 2018 Cash and investments, September 30, 2019 1,549,903 $ 2,365,212 $ 657,625 1,428,129 2,207,528 $ 3,793,341 Cash and investments Cash and investments - restricted Cash and investments, September 30, 2019 $ 2,255,478 109,734 $ 2,365,212 $ $ 1,360,006 68,123 1,428,129 $ 3,615,484 177,857 $ 3,793,341 Operating loss $ (1,683,497) $ (11,781,263) $ (13,464,760) Adjustments to reconcile operating loss to net cash used for operating activities: Depreciation expense Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Inventory Accounts payable Wages payable Due to other funds Due to other governments Compensated absences Refundable deposits Unearned revenue Total OPEB liability Deferred outflows of resources related to OPEB Deferred inflows of resources related to OPEB Net pension liability Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions Total adjustments Net cash used for operating activities $ 1,541,896 (6,802) - (67) 4,872 (48,020) 4,228 - 1,608 8,159 - (9,326) (2,766) (4,385) 2,026 81,065 19,717 (7,716) 1,584,489 (99,008) $ 1,922,517 7,141 (1,098) - - (44,541) 4,656 (1,040) 15,098 23,413 50 - (3,344) (1,686) 779 13,170 16,332 (4,501) 1,946,946 (9,834,317) $ 3,464,413 339 (1,098) (67) 4,872 (92,561) 8,884 (1,040) 16,706 31,572 50 (9,326) (6,110) (6,071) 2,805 94,235 36,049 (12,217) 3,531,435 (9,933,325) Non-cash investing, capital and financing activities: Change in fair value of investments $ 20,581 $ (12,240) $ 8,341 Contributed capital assets Change in capital related grant receivable - 1,986,596 275,908 (284,960) 275,908 1,701,636 Capital related accounts payable Capital related retainage payable 1,296,173 536,600 128,177 35,220 1,424,350 571,820 See accompanying independent auditors’ report 131 FINANCIAL SECTION Internal Service Funds INTERNAL SERVICE FUNDS SELF‐INSURANCE – To account for the self‐insurance costs of providing coverage for property, general and vehicle liability. To account for the provisions of health benefits to Board and participating constitutional officer employees and their dependents. To account for payment of workers’ compensation claims, in lieu of insurance. SHERIFF’S SELF‐INSURANCE – To account for the provisions of health benefits to Sheriff employees and their dependents. To account for payment of workers’ compensation claims, in lieu of insurance. FLEET MANAGEMENT – To account for fuel, oil, lubricants, repairs and maintenance of County vehicles and the use of certain County owned vehicles by County employees. MOTOR POOL CAPITAL RECOVERY – To account for the accumulation of resources for the replacement of vehicles and heavy equipment for County governmental activities. INFORMATION TECHNOLOGY – To account for the costs of operating the County data processing facility and telephone communication system. 132 FINANCIAL SECTION Internal Service Funds ASSETS Current assets: Cash and investments Receivables: Trade, net Interest Due from other funds Due from other governments Inventory Prepaid costs Total current assets Noncurrent assets: Capital assets: Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Self-insurance claims payable Compensated absences Net pension liability Total current liabilities Noncurrent liabilities: Self-insurance claims payable Compensated absences Total OPEB liability Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB Deferred inflows of resources related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position See accompanying independent auditors’ report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS September 30, 2019 Sheriff’s Self- Insurance Self- Insurance Fleet Management $ 43,563,026 $ 12,430,869 $ 1,464,639 630,832 135,946 16,516 - - - 157,418 42,511 1,000,000 - - - - 3,608 - 54,302 387,554 - 44,346,320 13,630,798 1,910,103 307,265 -9,115,513 307,265 -9,115,513 44,653,585 13,630,798 11,025,616 4,722 305,028 - - 8,769 519,303 309,750 -528,072 425,297 48,514 - 8,365 8,715 4,887,264 89,642 4,930 - - - - 93,401 2,946,000 - - 761,987 81,349 3,164 - - - 129,210 9,785 5,472,727 3,039,401 985,495 4,036,454 22,410 52,884 956,369 - - - - - 32,302 98,215 1,658,181 5,068,117 -1,788,698 10,540,844 3,039,401 2,774,193 3,421 66,741 70,162 - - - 6,700 116,986 123,686 307,265 34,045,064 $ 34,352,329 - 10,591,397 $ 10,591,397 8,900,306 (244,497) $ 8,655,809 Motor Pool Capital Recovery $ 8,513,464 - 27,353 - - - - 8,540,817 8,572,371 8,572,371 17,113,188 337 18,955 19,292 123,991 3,148 - - - - 2,802 373 130,314 - 701 3,777 59,887 64,365 194,679 243 4,252 4,495 8,448,380 8,484,926 $ 16,933,306 Information Technology $ 3,738,868 - 11,236 - 97 - 80,014 3,830,215 2,377,041 2,377,041 6,207,256 15,178 1,027,584 1,042,762 219,492 166,932 47,600 5 - - 246,753 16,507 697,289 - 61,688 169,987 3,219,728 3,451,403 4,148,692 10,902 224,597 235,499 2,377,041 488,786 $ 2,865,827 Total $ 69,710,866 788,250 220,654 1,016,516 54,399 387,554 80,014 72,258,253 20,372,190 20,372,190 92,630,443 29,006 1,870,870 1,899,876 1,530,767 299,943 50,764 8,370 102,116 7,833,264 468,407 31,595 10,325,226 4,036,454 117,101 324,863 5,894,165 10,372,583 20,697,809 21,266 412,576 433,842 20,032,992 53,365,676 $ 73,398,668 133 FINANCIAL SECTION Internal Service Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2019 Operating revenues: Charges for services Miscellaneous Self- Insurance $ 53,052,052 11,192 Sheriff’s Self- Insurance $ 30,735,415 - Fleet Management $ 8,836,295 14,726 Motor Pool Capital Recovery $ 3,480,100 - Information Technology $ 8,989,753 - $ Total 105,093,615 25,918 Total operating revenues 53,063,244 30,735,415 8,851,021 3,480,100 8,989,753 105,119,533 Operating expenses: Personal services Operating Depreciation 1,482,894 56,163,659 33,497 - 28,090,031 - 2,578,499 6,134,897 578,934 70,145 3,112 1,756,805 5,125,745 3,463,364 1,115,534 9,257,283 93,855,063 3,484,770 Total operating expenditures 57,680,050 28,090,031 9,292,330 1,830,062 9,704,643 106,597,116 Operating income (loss) (4,616,806) 2,645,384 (441,309) 1,650,038 (714,890) (1,477,583) Non-operating revenues: Operating grants and contributions Interest income Insurance reimbursement Gain on disposal of capital assets - 1,360,301 5,612,484 - - 287,015 - - 1,833 31,236 - 4,300 - 285,250 - 471,400 2,326 102,896 - 1,777 4,159 2,066,698 5,612,484 477,477 Total non-operating revenues 6,972,785 287,015 37,369 756,650 106,999 8,160,818 Income (loss) before contributions and transfers 2,355,979 2,932,399 (403,940) 2,406,688 (607,891) 6,683,235 Capital grants and contributions Transfers in Transfers out 1,205 - (1,000,000) - - - - - - - 765,000 (5,800) - 184,425 (35,800) 1,205 949,425 (1,041,600) Total transfers and contributions (998,795) --759,200 148,625 (90,970) Changes in net position 1,357,184 2,932,399 (403,940) 3,165,888 (459,266) 6,592,265 Net position - beginning 32,995,145 7,658,998 9,059,749 13,767,418 3,325,093 66,806,403 Net position - ending $ 34,352,329 $ 10,591,397 $ 8,655,809 $ 16,933,306 $ 2,865,827 $ 73,398,668 See accompanying independent auditors’ report 134 FINANCIAL SECTION Internal Service Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2019 Sheriff’s Motor Pool Self-Self-Fleet Capital Information Insurance Insurance Management Recovery Technology Total Cash flows from operating activities: Cash received from other funds for services $ 45,198,528 $ 29,000,000 $ 8,433,666 $ 3,480,100 $ 8,989,753 $ 95,102,047 Cash received from employees for services 7,289,438 ----7,289,438 Cash received from other governments for services --439,241 --439,241 Cash received from retirees for services 568,344 1,239,579 ---1,807,923 Cash payments on behalf of retirees (1,327,118) ----(1,327,118) Cash payments for goods and services (54,790,824) (28,177,400) (5,900,927) (512) (3,342,205) (92,211,868) Cash payments to employees (1,319,835) -(2,428,429) (86,977) (4,612,119) (8,447,360) Cash payments for interfund services (322,435) -(246,311) (2,600) (203,061) (774,407) Net cash provided by (used for) operating activities (4,703,902) 2,062,179 297,240 3,390,011 832,368 1,877,896 Cash flows from non-capital financing activities: Cash transfers from operating grants 29,587 -106,259 -98,162 234,008 Cash transfers from other funds ---765,000 184,425 949,425 Cash transfers to other funds (1,000,000) --(5,800) (35,800) (1,041,600) Net cash provided by (used for) non-capital financing activities (970,413) -106,259 759,200 246,787 141,833 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 4,998,826 ----4,998,826 Proceeds from disposal of capital assets --4,300 471,400 1,777 477,477 Payments for capital acquisitions (153,556) -(56,895) (3,142,793) (1,022,988) (4,376,232) Net cash provided by (used for) capital and related financing activities 4,845,270 -(52,595) (2,671,393) (1,021,211) 1,100,071 Cash flows from investing activities: Interest on investments 1,322,465 266,123 29,232 271,620 100,745 1,990,185 Net cash provided by investing activities 1,322,465 266,123 29,232 271,620 100,745 1,990,185 Net increase in cash and investments 493,420 2,328,302 380,136 1,749,438 158,689 5,109,985 Cash and investments, October 1, 2018 43,069,606 10,102,567 1,084,503 6,764,026 3,580,179 64,600,881 Cash and investments, September 30, 2019 $ 43,563,026 $ 12,430,869 $ 1,464,639 $ 8,513,464 $ 3,738,868 $ 69,710,866 Operating income (loss) $ (4,616,806) $ 2,645,384 $ (441,309) $ 1,650,038 $ (714,890) $ (1,477,583) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 33,497 -578,934 1,756,805 1,115,534 3,484,770 Net changes in assets and liabilities: Trade receivable 212 (155,011) ---(154,799) Due from other funds (563) (500,000) 154 --(500,409) Due from other governments --18,568 --18,568 Inventory --(12,306) --(12,306) Prepaid costs ----(33,748) (33,748) Accounts payable 43,272 -(19,888) -(95,759) (72,375) Wages payable 7,095 -2,839 347 25,099 35,380 Due to other funds --3,164 -47,600 50,764 Due to other governments 8,365 -(35) -5 8,335 Compensated absences 8,782 -(442) (4,497) 35,577 39,420 Unearned revenue (6,583) 9,806 ---3,223 Self-insurance claims payable (328,355) 62,000 ---(266,355) Total OPEB liability 1,011 -(12,941) 72 6,958 (4,900) Deferred outflows of resources related to OPEB (4,722) -(8,769) (337) (15,178) (29,006) Deferred inflows of resources related to OPEB 2,182 -4,052 155 7,013 13,402 Net pension liability 136,132 -96,877 3,542 358,355 594,906 Deferred outflows of resources related to pensions 20,119 -113,755 (15,695) 128,009 246,188 Deferred inflows of resources related to pensions (7,540) -(25,413) (419) (32,207) (65,579) Total adjustments (87,096) (583,205) 738,549 1,739,973 1,547,258 3,355,479 Net cash provided (used) by operating activities $ (4,703,902) $ 2,062,179 $ 297,240 $ 3,390,011 $ 832,368 $ 1,877,896 Non-cash investing, capital and financing activities: Change in fair value of investments $ 361,911 $ 113,671 $ 8,581 $ 76,909 $ 27,536 $ 588,608 Contributed capital assets 1,205 ----1,205 Capital related accounts payable --215,207 123,991 -339,198 See accompanying independent auditors’ report 135 FINANCIAL SECTION Fiduciary Funds FIDUCIARY FUNDS CLERK OF COURTS AGENCY FUND – To account for monies held in Trust by the Clerk of the Circuit Court prior to disbursement. SHERIFF AGENCY FUND – To account for monies held in a custodial capacity by the Sheriff. TAX COLLECTOR AGENCY FUND – To account for assets held by the Tax Collector prior to legal disbursement. DEPOSITS AGENCY FUND – To account for monies held by the County for businesses and individuals. PINE RIDGE AND NAPLES PRODUCTION PARK AGENCY FUND – To account for the receipt of special assessments and the payment of principal and interest on behalf of assessment holders. 136 FINANCIAL SECTION Fiduciary Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION ASSETS Cash and investments Receivables: Interest Other Total assets Clerk of Courts Agency Fund $ 18,842,673 - - $ 18,842,673 AGENCY FUNDS September 30, 2019 Tax Sheriff Collector Agency Fund Agency Fund $ 613,876 $ 6,835,471 -- 9,646 29,549 $ 623,522 $ 6,865,020 Deposits Agency Fund $ 6,354,232 19,665 - $ 6,373,897 Pine Ridge and Naples Production Park Agency Fund $ 993,846 3,215 - $ 997,061 $ $ Total 33,640,098 22,880 39,195 33,702,173 LIABILITIES Due to other governments Due to individuals Refundable deposits Due to special assessment holders Total liabilities See accompanying independent auditors’ report $ 1,211,858 - 17,630,815 - $ 18,842,673 $ 95,128 528,394 - - $ 623,522 $ 6,681,433 183,587 - - $ 6,865,020 $ - - 6,373,897 - $ 6,373,897 $ - - - 997,061 $ 997,061 $ $ 7,988,419 711,981 24,004,712 997,061 33,702,173 137 FINANCIAL SECTION Fiduciary Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION AGENCY FUNDS For The Fiscal Year Ended September 30, 2019 Clerk of Courts Agency Fund Assets: Cash and investments Receivable: Other Total assets Liabilities: Due to other governments Refundable deposits Total liabilities Sheriff Agency Fund Assets: Cash and investments Receivable: Other Total assets Liabilities: Due to other governments Due to individuals Total liabilities Tax Collector Agency Fund Assets: Cash and investments Receivable: Other Total assets Liabilities: Due to other governments Due to individuals Total liabilities Deposits Agency Fund Assets: Cash and investments Receivables: Interest Total assets Liabilities: Refundable deposits Total liabilities Balance October 1 $ 22,971,495 - $ 22,971,495 $ 1,095,270 21,876,225 $ 22,971,495 $ 634,937 26,778 $ 661,715 $ 94,016 567,699 $ 661,715 $ 6,354,628 32,959 $ 6,387,587 $ 6,317,621 69,966 $ 6,387,587 $ 5,924,548 12,224 $ 5,936,772 $ 5,936,772 $ 5,936,772 Additions $ 161,036,041 - $ 161,036,041 $ 5,382,588 155,653,453 $ 161,036,041 $ 613,876 9,646 $ 623,522 $ 95,128 528,394 $ 623,522 $ 1,165,164,124 3,941,293 $ 1,169,105,417 $ 1,340,519,812 719,607,912 $ 2,060,127,724 $ 959,392 19,774 $ 979,166 $ 1,019,766 $ 1,019,766 Deductions $ 165,164,863 - $ 165,164,863 $ 5,266,000 159,898,863 $ 165,164,863 $ 634,937 26,778 $ 661,715 $ 94,016 567,699 $ 661,715 $ 1,164,683,281 3,944,703 $ 1,168,627,984 $ 1,340,156,000 719,494,291 $ 2,059,650,291 $ 529,708 12,333 $ 542,041 $ 582,641 $ 582,641 Balance September 30 $ 18,842,673 - $ 18,842,673 $ 1,211,858 17,630,815 $ 18,842,673 $ 613,876 9,646 $ 623,522 $ 95,128 528,394 $ 623,522 $ 6,835,471 29,549 $ 6,865,020 $ 6,681,433 183,587 $ 6,865,020 $ 6,354,232 19,665 $ 6,373,897 $ 6,373,897 $ 6,373,897 (Continued) 138 FINANCIAL SECTION Fiduciary Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION AGENCY FUNDS For The Fiscal Year Ended September 30, 2019 Balance Balance October 1 Additions Deductions September 30 Pine Ridge and Naples Production Park Agency Fund Assets: Cash and investments $ 965,092 $ 31,166 $ 2,412 $ 993,846 Receivables: Interest 2,028 3,215 2,028 3,215 Total assets $ 967,120 $ 34,381 $ 4,440 $ 997,061 Liabilities: Due to special assessment holders $ 967,120 $ 34,381 $ 4,440 $ 997,061 Total liabilities $ 967,120 $ 34,381 $ 4,440 $ 997,061 Total - All Agency Funds Assets: Cash and investments Receivables: Interest Other $ 36,850,700 14,252 59,737 $ 1,327,804,599 22,989 3,950,939 $ 1,331,015,201 14,361 3,971,481 $ 33,640,098 22,880 39,195 Total assets $ 36,924,689 $ 1,331,778,527 $ 1,335,001,043 $ 33,702,173 Liabilities: Due to other governments Due to individuals Refundable deposits Due to special assessment holders $ 7,506,907 637,665 27,812,997 967,120 $ 1,345,997,528 720,136,306 156,673,219 34,381 $ 1,345,516,016 720,061,990 160,481,504 4,440 $ 7,988,419 711,981 24,004,712 997,061 Total liabilities $ 36,924,689 $ 2,222,841,434 $ 2,226,063,950 $ 33,702,173 See accompanying independent auditors’ report 139 FINANCIAL SECTION Component Units COMPONENT UNITS COLLIER COUNTY HOUSING FINANCE AUTHORITY – The authority was established for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. COLLIER COUNTY HEALTH FACILITIES AUTHORITY – The authority was established for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY – The authority was established for the purpose of facilitating projects that promote economic growth and opportunities for employment in Collier County. COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY – The authority was established for the purpose of assisting institutions of higher education in the construction, financing and refinancing of projects. 140 FINANCIAL SECTION Component Units ASSETS Cash and investments Total assets NET POSITION Net position - unrestricted Total Net Position See accompanying independent auditors’ report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS September 30, 2019 Industrial Development Authority Health Facilities Authority Housing Finance Authority $ 21,759 $ 21,759 $ 26,590 $ 26,590 $ 113,122 $ 113,122 $ 21,759 $ 21,759 $ 26,590 $ 26,590 $ 113,122 $ 113,122 Educational Facilities Authority Total $ $ 27,314 27,314 $ $ 188,785 188,785 $ $ 27,314 27,314 $ $ 188,785 188,785 141 FINANCIAL SECTION Component Units COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS For The Fiscal Year Ended September 30, 2019 Net (Expense) Revenue and Changes Program Revenues in Net Position Fees, Fines and Governmental Functions/Programs Expenses Charges for Services Activities Industrial Development Authority $ 3,676 $ -$ (3,675) Health Facilities Authority 52,855 -(52,855) Housing Finance Authority 3,687 -(3,688) Educational Facilities Authority 16,000 -(16,000) Total $ 76,218 $ -$ (76,218) General revenues: Interest income 492 Total general revenues 492 Change in net pos ition (75,726) Net position - beginning 264,511 Net position - ending $ 188,785 See accompanying independent auditors’ report THIS PAGE INTENTIONALLY LEFT BLANK 143 FINANCIAL SECTION Other Supplemental Information OTHER SUPPLEMENTAL INFORMATION Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. 144 FINANCIAL SECTION Other Supplemental Information COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL For The Fiscal Year Ended September 30, 2019 Amount Amount Received Expended in the in the 2019 2019 Source Fiscal Year Fiscal Year British Petroleum: Gulf Seafood and Tourism Promotional Fund $ - $ - Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2019 fiscal year. Statisticalsection THIS PAGE INTENTIONALLY LEFT BLANK STATISTICAL SECTION Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The County implemented GASB 34 for fiscal year 2002. Schedules presenting government-wide information include information beginning in that fiscal year. 147 Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non-accounting data. These schedules reflect social and economic data, and financial trends of Collier County, Florida. FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government’s financial perfomance and wellbeing have changed over time. Net Position by Component ....................................................................................................................................... 148 Change in Net Position ............................................................................................................................................... 150 Governmental Activities Tax Revenues by Source .................................................................................................. 152 Fund Balances of Governmental Funds.................................................................................................................... 153 Changes in Fund Balances of Governmental Funds ............................................................................................... 154 REVENUE CAPACITY These schedules contain trend information to help the reader assess the County’s most significant local revenue sourse, Property Tax. Assessed Value and Estimated Actual Value of Taxable Property ....................................................................... 156 Property Tax Rates – All Direct and Overlapping Governments ............................................................................ 157 Principal Tax Payers County-Wide ............................................................................................................................. 158 Property Tax Levies and Collections ......................................................................................................................... 159 DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County’s current levels o outstanding debt and the Conty’s ability to issue additional debt in the future. Ratios of Outstanding Debt by Type.......................................................................................................................... 160 Legal debt margin information .................................................................................................................................. 161 Direct, Overlapping and Underlapping Governmental Activities Debt................................................................... 161 Pledged-Revenue Coverage ....................................................................................................................................... 162 DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities tale place. Demographic and Economic Statistics .................................................................................................................... 163 Principal Employers..................................................................................................................................................... 164 OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County’s financial report relates to the services the County provides and the activities it performs. Budgeted Full-Time Equivalent County Employees by Function ........................................................................... 165 Operating Indicators by Function .............................................................................................................................. 166 Capital Asset Statistics by Function ......................................................................................................................... 167 148 STATISTICAL SECTION COLLIER COUNTY, FLORIDA NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2019 2018 2017 2016 2015 2014 Governmental Activities: Net investment in capital assets Restricted Unrestricted Total governmental activities net position $ $ 1,302,980 479,192 (32,601) 1,749,571 $ $ 1,287,184 362,045 (29,328) 1,619,901 $ $ 1,257,685 336,922 (24,011) 1,570,596 $ $ 1,225,520 327,968 2,478 1,555,966 $ $ 1,217,176 298,360 13,109 1,528,645 $ $ 1,207,751 223,526 169,633 1,600,910 Business-type Activities: Net investment in capital assets Restricted Unrestricted Total business-type activities net position $ $ 777,814 39,371 205,756 1,022,941 $ $ 763,259 31,982 143,198 938,439 $ $ 741,912 32,619 168,602 943,133 $ $ 723,000 35,760 169,287 928,047 $ $ 714,239 31,511 165,128 910,878 $ $ 705,065 29,749 185,420 920,234 Primary Government: Net investment in capital assets Restricted Unrestricted Total primary government net position $ $ 2,080,794 518,563 173,155 2,772,512 $ $ 2,050,443 394,027 113,870 2,558,340 $ $ 1,999,597 369,541 144,591 2,513,729 $ $ 1,948,520 363,728 171,765 2,484,013 $ $ 1,931,415 329,871 178,237 2,439,523 $ $ 1,912,816 253,275 355,053 2,521,144 149 STATISTICAL SECTION Fiscal Year 2013 $ 1,198,971 221,501 152,790 $ 1,573,262 $ 668,160 34,379 196,050 $ 898,589 $ 1,867,131 255,880 348,840 $ 2,471,851 2012 $ 1,187,298 226,934 147,188 $ 1,561,420 $ 650,684 34,199 194,389 $ 879,272 $ 1,837,982 261,133 341,577 $ 2,440,692 2011 $ 1,172,121 253,977 147,080 $ 1,573,178 $ 643,777 38,002 177,939 $ 859,718 $ 1,815,898 291,979 325,019 $ 2,432,896 2010 $ 1,169,052 232,571 189,911 $ 1,591,534 $ 635,702 37,795 169,514 $ 843,011 $ 1,804,754 270,366 359,425 $ 2,434,545 150 STATISTICAL SECTION CHANGE IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2019 2018 2017 2016 2015 2014 Expenses Governmental activities: General government $ 134,018 $ 126,920 $ 108,388 $ 104,188 $ 93,644 $ 92,176 Public safety 254,341 223,177 225,360 205,347 174,874 177,267 Transportation 88,200 83,386 75,589 70,560 70,296 71,623 Culture and recreation 59,401 58,042 51,889 49,526 45,117 41,630 Other activities 52,500 64,822 41,899 48,256 45,621 39,171 Interest on long-term debt 13,223 9,736 11,294 12,077 12,912 12,674 Total governmental activities expenses $ 601,683 $ 566,083 $ 514,419 $ 489,954 $ 442,464 $ 434,541 Business-type activities: Water and Sewer $ 153,602 $ 144,113 $ 144,850 $ 130,792 $ 122,858 $ 112,643 Solid Waste 47,529 106,823 43,664 39,271 36,411 33,787 Emergency Medical Services 34,871 32,275 28,644 26,529 24,094 23,208 Airport Authority 6,361 5,533 4,905 4,402 4,771 3,764 Mass Transit 13,090 12,680 11,354 11,333 10,416 10,306 Total business-type activities expenses 255,453 301,424 233,417 212,327 198,550 183,708 Total primary government expenses $ 857,136 $ 867,507 $ 747,836 $ 702,281 $ 641,014 $ 618,249 Program Revenues Governmental activities: Charges for services: General government $ 39,981 $ 37,703 $ 33,377 $ 35,184 $ 34,240 $ 34,662 Public safety 26,137 28,040 24,240 25,276 25,227 21,765 Transportation 1,206 2,111 2,024 4,880 1,094 959 Culture and recreation 7,808 7,886 8,192 8,393 8,685 7,943 Other activities 1,862 2,235 1,467 1,230 4,237 2,661 Operating Grants and Contributions 30,313 29,549 26,539 26,387 35,521 31,444 Capital Grants and Contributions 56,268 47,645 38,124 36,818 29,986 28,945 Total governmental activities program revenues 163,575 155,169 133,963 138,168 138,990 128,379 Business-type activities: Charges for services: Water and Sewer 155,839 145,757 135,045 123,856 116,645 107,924 Solid Waste 51,928 50,449 45,209 41,918 39,121 35,368 Emergency Medical Services 13,854 12,836 11,812 13,161 12,327 9,922 Airport Authority 4,639 3,951 3,734 3,073 3,350 2,589 Mass Transit 1,203 1,129 1,267 1,225 1,719 1,641 Operating Grants and Contributions 46,592 16,426 5,025 4,435 5,142 3,077 Capital Grants and Contributions 37,888 38,670 26,993 25,367 21,165 30,662 Total business-type activities program revenues 311,943 269,218 229,085 213,035 199,469 191,183 Total primary government program revenues 475,518 424,387 363,048 351,203 338,459 319,562 Net (expense)/revenue: Governmental activities (438,108) (410,914) (380,456) (351,786) (303,474) (306,162) Business-type activities 56,490 (32,206) (4,332) 708 919 7,475 Total primary government net expense $ (381,618) $ (443,120) $ (384,788) $ (351,078) $ (302,555) $ (298,687) General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property taxes $ 356,099 $ 337,447 $ 312,633 $ 281,136 $ 259,779 $ 244,404 Gas taxes 24,485 22,749 21,799 20,478 19,547 18,556 Sales taxes 49,550 44,093 41,799 40,659 38,573 35,786 Local government sales tax 60,787 ----- Tourist taxes 31,653 27,962 21,961 21,838 21,188 19,137 Other taxes 7,140 6,914 7,478 7,280 7,322 7,840 State revenue sharing 13,194 12,564 11,602 11,100 10,589 9,657 Interest income 24,113 6,857 3,574 4,891 5,069 2,599 Miscellaneous 17,594 18,121 9,714 5,976 17,510 13,333 Special item - registry bond ------ Transfers, net (16,837) (16,487) (14,793) (14,250) (14,192) (13,185) Total governmental activities $ 567,778 $ 460,220 $ 415,767 $ 379,108 $ 365,385 $ 338,127 Business-type Activities: Interest income $ 9,699 $ 2,602 $ 1,379 $ 2,011 $ 2,209 $ 1,301 Miscellaneous 1,476 8,423 126 200 94 68 Transfers, net 16,837 16,487 14,793 14,250 14,192 13,184 Total business-type activities 28,012 27,512 16,298 16,461 16,495 14,553 Total primary government $ 595,790 $ 487,732 $ 432,065 $ 395,569 $ 381,880 $ 352,680 Change in Net Position Governmental activities $ 129,670 $ 49,306 $ 35,311 $ 27,322 $ 61,911 $ 31,965 Business-type activities 84,502 (4,694) 11,966 17,169 17,414 22,028 Total primary government $ 214,172 $ 44,612 $ 47,277 $ 44,491 $ 79,325 $ 53,993 151 STATISTICAL SECTION Fiscal Year 2013 $ $ 95,941 171,210 69,275 41,453 43,067 16,129 437,075 $ $ 114,041 32,760 21,545 4,439 10,111 182,896 619,971 $ 36,080 19,735 1,045 8,416 3,667 20,921 28,280 118,144 109,176 34,585 10,335 3,021 1,450 3,914 24,953 187,434 305,578 (318,931) 4,538 $ (314,393) $ 249,352 18,229 32,168 - 16,183 9,403 8,792 1,496 9,063 - (13,912) 330,774 $ $ 712 154 13,912 14,778 345,552 $ $ 11,843 19,316 31,159 2012 $ $ 94,227 165,782 73,000 42,507 51,057 16,412 442,985 $ $ 102,642 29,618 21,792 4,601 9,925 168,578 611,563 $ 31,388 16,743 880 9,126 4,941 22,892 20,279 106,249 103,042 34,275 10,249 2,805 1,360 2,948 17,818 172,497 278,746 (336,736) 3,919 $ (332,817) $ 248,232 18,525 29,713 - 14,898 9,997 8,233 2,430 7,397 - (14,447) 324,978 $ $ 1,106 82 14,447 15,635 340,613 $ $ (11,758) 19,554 7,796 2011 $ $ 103,045 173,286 81,383 44,205 39,991 19,797 461,707 $ $ 104,333 28,000 22,657 4,458 10,187 169,635 631,342 $ 33,919 15,554 715 9,093 2,296 19,503 19,347 100,427 105,858 33,769 8,980 2,938 1,290 4,378 14,307 171,520 271,947 (361,280) 1,885 $ (359,395) $ 261,630 18,311 28,364 - 13,884 10,155 8,310 3,888 11,498 - (13,117) 342,923 $ $ 1,609 96 13,117 14,822 357,745 $ $ (18,357) 16,707 (1,650) 2010 $ $ 100,483 179,276 76,603 46,871 40,937 19,475 463,645 $ $ 103,272 27,416 23,073 4,382 9,617 167,760 631,405 $ 29,281 16,385 829 8,267 1,557 31,884 25,762 113,965 101,062 33,568 10,759 2,519 1,145 4,448 10,385 163,886 277,851 (349,680) (3,874) $ (353,554) $ 299,389 18,415 26,927 - 12,857 10,039 7,854 4,665 8,022 - (11,259) 376,909 $ $ 1,569 88 11,259 12,916 389,825 $ $ 27,229 9,042 36,271 152 STATISTICAL SECTION GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Property Gas Sales Infrastructure Tourist Other Year Tax Tax Tax Sales Tax Tax Taxes Total 2010 $ 299,389 $ 18,415 $ 26,927 $ -$ 12,857 $ 10,039 $ 367,627 2011 261,630 18,311 28,364 -13,884 10,155 332,344 2012 248,232 18,525 29,713 -14,898 9,997 321,365 2013 249,352 18,229 32,168 -16,183 9,403 325,335 2014 244,404 18,556 35,786 -19,137 7,840 325,723 2015 259,779 19,547 38,573 -21,188 7,322 346,409 2016 281,136 20,478 40,659 -21,838 7,280 371,391 2017 312,633 21,799 41,799 -21,961 7,478 405,670 2018 337,447 22,749 44,093 -27,962 6,914 439,165 2019 356,099 24,485 49,550 60,787 31,653 7,140 529,714 153 STATISTICAL SECTION COLLIER COUNTY, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 General fund (1) Nonspendable $ 2,383 $ 2,645 $ 3,386 $ 3,675 $ 3,546 $ 19,843 $ 15,744 $ 12,914 $ 11,805 $ 9,460 Restricted 461 306 2,440 264 345 125 96 110 -- Committed - -- ------- Assigned 1,115 1,736 1,598 1,674 1,299 850 813 952 1,114 2,182 Unassigned 103,707 77,342 54,805 53,961 55,002 57,781 56,497 57,091 54,459 59,705 Total general fund $ 107,666 $ 82,029 $ 62,229 $ 59,574 $ 60,192 $ 78,599 $ 73,150 $ 71,067 $ 67,378 $ 71,347 All other governmental funds Nonspendable $ 2,887 $ 8,135 $ 2,385 $ 3,055 $ 3,112 $ 53,544 $ 46,049 $ - $ -$ 107,626 Restricted 522,311 354,514 328,447 324,334 293,281 242,981 223,700 209,352 229,546 232,699 Committed 40,355 34,788 32,759 26,069 25,663 27,349 29,810 47,406 48,445 48,764 Assigned 31,977 21,129 33,822 28,644 30,800 28,391 36,364 80,771 79,556 34,215 Unassigned -(246) -(89) (514) (62,085) (55,212) (48,944) (40,258) 23,192 Total all other governmental funds $ 597,530 $ 418,320 $ 397,413 $ 382,013 $ 352,342 $ 290,180 $ 280,711 $ 288,585 $ 317,289 $ 446,496 (1) In Fiscal Year 2011, the County implemented GASB 54 under which governmental fund balances are reported as nonspendable, restricted, committed, assigned and unassigned. As part of the implementation, the governmental fund balances for Fiscal Year 2010 were re-classified. 154 STATISTICAL SECTION CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2019 2018 2017 2016 2015 2014 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous $ 471,127 78,182 100,191 37,255 2,491 22,046 7,452 5,566 $ 386,814 75,102 92,206 36,981 2,375 6,133 4,789 4,527 $ 355,885 59,217 86,656 34,008 2,263 3,233 4,350 8,705 $ 322,915 61,033 83,949 38,362 2,708 4,440 3,746 6,600 $ 300,341 51,319 92,818 37,172 2,866 4,606 3,132 16,063 $ 282,315 40,631 89,392 35,149 3,252 2,393 2,922 11,553 Total revenues 724,310 608,927 554,317 523,753 508,317 467,607 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest Redemption of debt Payment to refunding bond escrow Other fiscal charges Capital outlay 103,445 213,829 23,728 45,245 8,378 17,005 48,793 23,127 11,521 - - 801 107,881 101,198 198,097 31,994 45,904 9,942 15,849 47,671 21,864 10,165 - - 128 82,871 89,193 197,762 12,465 41,003 8,199 15,058 42,889 21,439 11,908 5,588 - 48 80,495 84,599 177,375 15,283 36,011 11,061 14,038 40,886 20,743 12,713 - - 19 67,198 78,147 167,788 16,157 36,992 9,159 13,151 37,523 20,039 13,555 - - 21 62,186 73,739 163,169 11,276 38,789 9,265 12,367 34,114 18,510 14,177 - 2,086 173 63,613 Total expenditures 603,753 565,683 526,047 479,926 454,718 441,278 Excess (deficit) of revenues over (under) expenditures 120,557 43,244 28,270 43,827 53,599 26,329 Other financing sources (uses): Bonds issued Premiums on bonds issued Notes issued Payment to refunding escrow Capital leases Loans issued Sale of capital assets Insurance proceeds Transfers in Transfers out 62,965 3,238 - - - 28,060 376 6,416 140,633 (157,399) - - - (44,525) - 55,713 1,065 3,762 114,358 (132,910) - - 5,293 - - - 155 339 117,833 (133,834) - - - - - - 306 796 121,654 (137,530) - - - - 1,915 - 595 379 196,026 (208,760) 89,780 - - (89,622) - - 314 316 97,854 (110,052) Total other financing sources (uses) 84,289 (2,537) (10,214) (14,774) (9,845) (11,410) Special item - registry bond ------ Net change in fund balances $ 204,847 $ 40,707 $ 18,056 $ 29,053 $ 43,754 $ 14,919 Debt service as a percentage of noncapital expenditures 7.15% 6.66% 7.50% 8.11% 8.56% 9.25% 155 STATISTICAL SECTION Fiscal Year 2013 2012 2011 2010 $ 285,765 35,168 83,667 32,435 3,712 1,406 2,924 4,833 449,910 75,725 153,566 13,790 37,170 14,436 12,254 33,744 25,125 17,565 - 132 2,165 61,278 446,950 2,960 73,805 2,082 - (73,747) 236 - 233 300 90,637 (102,061) (8,751) - $ (5,791) 11.66% $ 284,124 30,436 79,402 30,739 4,205 2,197 3,035 4,664 438,802 73,812 151,858 22,870 42,176 14,393 10,988 34,253 31,602 18,149 - - 1,082 49,406 450,589 (11,787) 131,525 17,192 - (150,550) 236 - 313 270 91,524 (103,738) (13,228) - $ (25,015) 12.67% $ 296,640 $ 23,695 74,453 27,855 3,882 3,602 2,725 10,565 333,554 28,920 86,445 27,122 5,730 4,306 2,848 6,380 443,417 495,305 79,499 160,890 14,251 50,741 7,841 13,075 35,745 36,493 20,933 - - 434 38,726 82,409 165,017 9,974 43,677 11,122 12,116 37,569 34,274 20,340 - - 891 69,809 458,628 487,198 (15,211) 8,107 24,620 2,050 - (26,593) - - 70 384 107,167 (118,037) 59,895 844 - (59,893) - - 248 310 105,394 (114,905) $ (10,339) - (25,550) $ (8,107) - - 13.78% 13.30% 156 STATISTICAL SECTION COLLIER COUNTY, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Total Estimated Assessed Fiscal Year Centrally Less: Total Taxable Direct Actual Value as a Ended Residential Personal Assessed Tax Assessed Tax Taxable Percentage of September 30 Property Property Property Exempt Value Rate Value Actual Value1 2010 $ 77,359,174 $ 2,444,323 $ 202 $ 9,826,950 $ 69,976,749 $ 4.4236 $ 79,803,699 100% 2011 67,947,039 2,259,654 171 8,770,667 61,436,197 4.4151 70,206,864 100% 2012 64,464,592 2,248,702 187 8,510,911 58,202,570 4.4149 66,713,481 100% 2013 64,723,621 2,240,098 184 8,471,142 58,492,761 4.4126 66,963,903 100% 2014 66,977,907 2,198,734 152 8,539,021 60,637,772 4.1592 69,176,793 100% 2015 71,149,974 2,186,145 195 8,739,269 64,597,045 4.1582 73,336,314 100% 2016 76,970,360 2,353,841 134 9,235,508 70,088,827 4.1572 79,324,335 100% 2017 84,314,428 2,342,953 211 9,537,260 77,120,332 4.2029 86,657,592 100% 2018 91,067,675 2,448,008 246 9,905,942 83,609,987 4.1851 93,515,929 100% 2019 96,068,580 2,534,892 244 10,317,449 88,286,267 4.1827 98,603,715 100% Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year. 1 The basis of assessed value required by the state is 100% of actual value including tax exemptions. Source: Property Appraiser Recapitulation Report 157 STATISTICAL SECTION COLLIER COUNTY, FLORIDA PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (unaudited) Collier County Other Special Debt County Fiscal General Revenue Service School Independent Year Fund Funds Funds Total District Districts Total 2010 3.5645 0.7225 0.1366 4.4236 5.2390 1.3243 10.9869 2011 3.5645 0.6926 0.1580 4.4151 5.6990 1.3299 11.4440 2012 3.5645 0.7627 0.0877 4.4149 5.5270 1.2202 11.1621 2013 3.5645 0.7555 0.0926 4.4126 5.5760 1.2395 11.2281 2014 3.5645 0.5873 0.0074 4.1592 5.6900 1.2228 11.0720 2015 3.5645 0.5860 0.0077 4.1582 5.5800 1.1853 10.9235 2016 3.5645 0.5856 0.0071 4.1572 5.4800 1.1331 10.7703 2017 3.5645 0.6323 0.0061 4.2029 5.2450 1.1138 10.5617 2018 3.5645 0.6145 0.0061 4.1851 5.1220 1.2375 10.5446 2019 3.5645 0.6122 0.0060 4.1827 5.0490 1.2331 10.4648 Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year. Sources: Property Appraiser Recapitulation Report Collier County Adopted Budget 158 STATISTICAL SECTION COLLIER COUNTY, FLORIDA PRINCIPAL TAXPAYERS COUNTY-WIDE 2019 TAX ROLL (unaudited) 2019 2010 Owner/Taxpayer Property Taxes Levied Rank Percent of Total Taxes Levied Property Taxes Levied Rank Percent of Total Taxes Levied Florida Power & Light Company HHR Naples LLC The Moorings, Inc. Marco Hotel, LLC $ 3,134,250 1,866,428 1,314,683 1,202,688 1 2 3 4 0.31% 0.19% 0.13% 0.12% $ 2,537,374 1,492,811 779,467 - 1 2 7 0.31% 0.18% 0.10% - PR Mercato LLP 1,190,608 5 0.12% -- CC-Naples Inc Arthrex Manufacturing Inc. Lee County Electric Co-Op, Inc. Coastland Center, LLC 982,387 907,516 865,810 747,629 6 7 8 9 0.10% 0.09% 0.09% 0.07% - - 827,470 759,211 5 8 - - 0.10% 0.09% Collier HMA, Inc. 720,518 10 0.07% 749,390 10 0.09% Century Link City National Bank of Miami Naples HMA, Inc. Wal-Mart Stores East LP - - - - - - - - 1,156,394 925,737 812,779 757,599 3 4 6 9 0.14% 0.11% 0.10% 0.09% Total $ 12,932,517 1.29% $ 10,798,232 1.31% Total Property Taxes Levied $ 1,002,431,712 Amounts for taxpayers with similar names have not been combined. Source: Property Appraiser’s taxpayer listing in order of taxes levied. Property Appraiser Recapitulation Report. $ 816,058,399 159 STATISTICAL SECTION Fiscal Year Ended September 30 2010 $ 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Tax Levy for COLLIER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Collected within the Fiscal Year of the Levy Collections in Total Collections to Date Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy 314,176 $ 275,704 261,137 262,037 255,354 271,893 295,304 328,706 354,535 369,258 297,953 94.8% $ 1,355 $ 260,961 94.7% 482 247,749 94.9% 542 248,648 94.9% 1,197 243,137 95.2% 615 259,121 95.3% 78 281,138 95.2% - 312,557 95.1% - 337,117 95.1% - 352,560 94.6% - 299,308 261,443 248,291 249,845 243,752 259,199 281,138 312,557 337,117 352,560 95.3% 94.8% 95.1% 95.3% 95.5% 95.3% 95.2% 95.1% 95.1% 95.5% 160 STATISTICAL SECTION COLLIER COUNTY, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities Business-type Activities Limited General Loans and Loans and Total Percentage Fiscal Obligation Revenue Notes Capital Revenue Notes Capital Primary of Personal Per Year Bonds Bonds Payable Leases Bonds Payable Leases Government Income ¹ Capita ¹ 2010 $ 29,854 $ 435,590 $ 19,690 $ 439 $ 148,782 $ 106,509 $ 636 $ 741,500 3.76% 2,302 2011 14,684 415,855 16,914 269 143,992 99,517 387 691,618 3.62% 2,126 2012 9,994 391,123 9,686 412 138,983 92,438 175 642,811 3.31% 1,914 2013 4,664 373,862 7,432 323 106,565 111,787 40 604,673 3.01% 1,794 2014 4,223 367,665 7,081 230 95,570 113,013 1222 589,004 2.67% 1,732 2015 3,369 348,278 6,401 1519 89,690 104,475 1,074 554,806 2.26% 1,669 2016 2,941 327,650 5,845 937 84,681 95,707 1,247 519,008 2.01% 1,577 2017 2,499 306,302 5,072 316 80,176 87,519 865 482,749 1.57% 1,320 2018 2,037 286,190 16,515 236 110,010 77,945 521 493,454 1.51% 1,326 2019 1,560 357,206 15,642 153 184,382 68,642 173 627,758 1.79% 1,659 1- See the Schedule of Demographic and Economic Statistics for personal income and population data. 161 STATISTICAL SECTION COLLIER COUNTY, FLORIDA LEGAL DEBT MARGIN INFORMATION As Of September 30, 2019 (unaudited) The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. DIRECT, OVERLAPPING AND UNDERLYING DEBT As Of September 30, 2019 (unaudited) Debt Outstanding Direct Debt: Governmental Activities Limited General Obligation Bonds $ 1,559,866 Gas Tax Revenue Bonds (2) 74,593,791 Special Obligation Revenue Bonds (2) 216,517,179 Tourist Development Tax Revenue Bonds 66,095,418 Commercial Paper 11,500,000 Notes Payable (2) 4,141,774 Capital Leases (2) 153,269 Total Governmental Activities Direct Debt 374,561,297 Business-type Activities Revenue Bonds 184,382,403 Capital Leases (2) 173,125 Notes Payable (2) 68,641,557 Total Business-type Activities Direct Debt 253,197,085 Subtotal, Direct Debt 627,758,382 Overlapping Debt: N/A - Underlying Debt: City of Naples (3) 6,853,626 City of Marco Island (4) 7,986,674 City of Everglades (5) - Subtotal, Underlying Debt 14,840,300 Total Direct, Overlapping and Underlying Debt $ 642,598,682 (1) Population numbers obtained from www.florida-demographics.com/cities_by_population. (2) Totals consist of more than one issuance. (3) Governmental activities debt outstanding amount obtained from the City of Naples. (4) Governmental activities debt outstanding amount obtained from the City of Marco Island. (5) Governmental activities debt outstanding amount obtained from the City of Everglades. Estimated Percentage Applicable Based on Population (1) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 5.86% 4.77% 10.63% Estimated Share of Overlapping Debt $ 1,559,866 74,593,791 216,517,179 66,095,418 11,500,000 4,141,774 153,269 374,561,297 184,382,403 173,125 68,641,557 253,197,085 627,758,382 - 401,622 380,964 - 782,586 $ 628,540,968 162 STATISTICAL SECTION COLLIER COUNTY, FLORIDA PLEDGED-REVENUE COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities: Gas Tax Bonds Special Obligation Bonds(4) Legally Available Gas Non-Ad Fiscal Tax Debt Service Valorem Debt Service Year Collections Principal Interest Coverage Collections(5) Principal Interest Coverage 2010 $ 18,415 $ 6,935 $ 7,645 1.26 $ ---N/A 2011 18,312 7,185 7,399 1.26 76,416 1,545 2,597 18.45 2012 18,525 7,505 7,077 1.27 82,866 4,265 4,265 9.71 2013 18,229 7,855 6,453 1.27 86,640 9,695 7,249 5.11 2014 18,556 8,040 4,018 1.54 91,043 9,145 9,674 4.84 2015 19,547 9,440 3,697 1.49 102,375 8,885 9,426 5.59 2016 20,478 9,900 3,242 1.56 107,268 9,280 9,020 5.86 2017 21,799 10,195 2,939 1.66 108,577 9,705 8,591 5.93 2018 22,749 10,510 2,737 1.72 118,725 10,258 7,012 6.87 2019 22,709 10,830 2,542 1.70 125,162 10,865 7,191 6.93 Business-type Activities: Water and Sewer Revenue Bonds Water/ Sewer Less: Net Fiscal Charges Operating Available Debt Service Year and Other (1) Expenses (2) Revenue Principal Interest Coverage (3) 2010 $ 101,830 $ 50,893 $ 50,937 $ 5,274 $ 6,843 4.20 2011 106,839 60,107 46,732 4,969 6,711 4.00 2012 104,164 58,155 46,009 5,189 6,494 3.94 2013 105,682 68,916 36,766 5,422 6,268 3.15 2014 109,514 69,710 39,804 5,967 3,986 4.00 2015 118,066 74,344 43,722 6,073 3,639 4.50 2016 125,456 84,474 40,982 3,986 2,841 6.00 2017 136,064 97,904 38,160 3,902 2,818 5.68 2018 155,847 90,507 65,340 5,528 3,050 7.62 2019 163,653 98,281 65,372 6,261 4,091 6.31 (1) Operating revenues plus other income; certain interest income gain on disposal of assets, capital grants and contributions and transfers in are not included. (2) Total operating expenses, excluding depreciation and amortization; loss on disposal of assets, interest expense and transfers out are not included. (3) Net available revenue divided by total bonded debt service requirements for the County Water and Sewer District. (4) Special Obligation Bonds were first issued in FY-2010, debt service payments commenced in FY-2011. (5) The revenues that comprise the legally available non-ad valorem revenues are defined by bond documents; these revenues include Sales Tax and certain impact fees. 163 STATISTICAL SECTION COLLIER COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years (unaudited) Per Capita Fiscal Personal Personal Median School Unemployment Age(4) Rate(6) Year Population(1) Income(2) Income(3) Enrollment(5) 2010 331,800 19,739,453,000 62,559 45.2 42,716 12.2% 2011 321,520 19,127,928,000 60,049 45.9 42,921 11.4% 2012 323,785 19,446,631,000 59,264 46.9 43,238 9.3% 2013 329,849 20,075,468,000 60,391 47.1 43,789 7.2% 2014 339,642 22,033,344,000 64,872 47.4 44,415 6.3% 2015 348,777 24,571,667,000 73,869 47.5 45,228 5.2% 2016 353,936 25,763,656,000 78,473 47.9 47,289 4.9% 2017 360,846 30,708,249,000 84,101 48.5 49,394 3.6% 2018 368,534 32,749,753,000 87,829 49.7 47,934 3.3% 2019 376,086 35,080,466,000 92,686 50.3 48,441 3.2% Sources: (1) www.colliergov.net/your-government/divisions-a-e/comprehensive-planning/population-and-demographics (2) https://fred.stlouisfed.org/series/PI12021 (3) https://fred.stlouisfed.org/series/PCPI12021 (4) https://fred.stlouisfed.org/series/B01002001E012021 (5) www.collierschools.com/Page/349 (6) www.floridajobs.org 164 STATISTICAL SECTION COLLIER COUNTY, FLORIDA PRINCIPAL EMPLOYERS (unaudited) Employer Employees 2019 Rank Percent of Total County Employment Employees 2010 Rank Percent of Total County Employment Collier County Public Schools 5,731 1 3.84% 4,728 2 4.49% NCH Healthcare System 4,315 2 2.89% 5,000 1 4.75% Arthex, Inc 2,502 4 1.67% Collier County Government (excl. Sheriff) 2,396 3 1.60% 2,200 5 2.09% Collier County Sheriff’s Office 1,415 5 0.95% 1,383 7 1.31% Publix Supermarkets 1,257 6 0.84% 3,246 3 3.09% JW Marriott - Marco Island 1,150 7 0.77% Ritz Carlton Hotel 1,100 8 0.74% Seminole Casino - Immokalee 1,068 9 0.72% 2,328 4 2.21% Naples Grande Beach Resort (1) 700 10 0.48% Other employers Totals 127,793 149,427 85.50% 100.00% 86,299 105,184 82.05% 100.00% (1) The Naples Grande Beach Resort property has also operated as the Registry Resort and the Waldorf Astoria Naples in recent years. Sources: Southwest Florida Economic Development Alliance Collier County Public Schools NCH Healthcare System Publix Corporate Office Arthrex, Inc. 2019 Collier County Budget Book 165 STATISTICAL SECTION COLLIER COUNTY, FLORIDA BUDGETED FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1) Last Ten Fiscal Years (unaudited) Fiscal Year 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Function: General government 1,342 1,299 1,351 1,262 1,217 1,216 1,203 1,222 1,219 1,252 Public safety 1,080 1,089 1,112 1,124 1,096 1,072 1,061 1,061 1,062 1,053 Physical environment 80 73 73 70 69 67 67 69 66 66 Transportation 228 224 219 211 192 187 187 199 213 234 Economic environment 31 30 29 26 27 28 26 28 27 22 Human services 58 58 58 56 56 53 51 50 50 54 Culture and recreation 347 337 324 304 298 294 289 293 293 308 Water and Sewer 436 414 410 384 342 340 342 344 344 335 Solid Waste 45 43 31 28 27 28 29 27 27 27 Emergency Medical Services 202 199 194 193 193 172 172 172 172 183 Airport Authority 15 15 15 15 14 14 16 16 16 16 Collier Area Transit 5 5 4 4 3 3 3 3 1 1 Total 3,869 3,786 3,820 3,677 3,534 3,474 3,446 3,484 3,490 3,551 (1) Includes the Board of County Commissioners and the Constitutional Officers 166 STATISTICAL SECTION COLLIER COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year Function: Police: Physical arrests Parking violations Traffic violations 2019 9,072 817 26,773 2018 9,266 894 17,157 2017 8,269 1068 15,473 2016 9,359 867 14,462 2015 9,347 931 16,355 2014 11,277 964 19,868 2013 11,277 1,182 22,211 2012 11,297 1,175 19,237 2011 20,180 1,479 19,680 2010 13,310 1,283 22,051 Fire: Fires reported Emergency responses (exclude fires) Number of calls answered ** ** 870 ** ** 804 ** ** 795 31 839 870 82 1,093 1,175 37 1,080 1,117 52 1024 1076 46 764 810 468 569 1,037 498 825 1,323 Transportation: Collier Area Transit ridership Street resurfacing (lane miles) 913,569 43 944,931 40 996,687 38 1,082,519 34 1,177,029 34 1,181,530 80 1,361,294 78 1,207,866 142 1,154,702 131 1,064,910 85 Culture and recreation: Beach parking stickers issued Library circulation 146,500 2,471,878 143,500 2,253,555 149,490 2,193,351 139,828 2,349,418 134,051 2,302,017 181,878 2,578,588 122,415 2,578,589 114,778 2,768,648 312,144 2,760,427 98,093 2,969,238 Water: New connections 2,297 2,776 1,951 2,023 2,204 1,878 1,417 1,189 921 909 Wastewater: Average daily sewage treatment (millions of gallons) 18,853 18,030 18,555 17,864 17,090 17,150 16,954 15,834 14,747 14,326 ** -Due to the consolidation of Fire Districts, this information is no longer being tracked. Sources: Police-Collier County Sheriff’s Department Fire-Collier County Bureau of Emergency Services, Greater Naples Fire District Transportation-Collier County Alternative Transportation , Road and Bridge Culture and Recreation-Collier County Parks and Recreation, Public Library Water-Collier County Utility Billing Wastewater-Collier County Wastewater 167 STATISTICAL SECTION COLLIER COUNTY, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year Function: Public Safety: Police stations Patrol units 2019 7 272 2018 7 272 2017 7 270 2016 7 274 2015 7 276 2014 7 276 2013 7 275 2012 7 275 2011 7 275 2010 7 275 Fire: Fire stations 4 4 4 4 4 4 3 3 3 3 Highways and streets: Streets (miles) Streetlights Traffic signals 1,169 4,635 377 1,166 5,083 377 1,161 5,074 374 1,159 5,182 365 1,149 4,958 360 1,151 4,958 370 1,184 4,868 353 1,184 4,781 297 1,184 4,759 295 1,184 4,701 283 Culture and recreation: Parks acreage Parks Swimming pools Tennis courts Community centers Libraries Number of volumes in libraries 1,521 61 9 45 9 10 663,811 1,521 61 9 45 9 10 593,378 1,521 61 8 45 9 10 557,188 1,521 61 8 45 9 10 567,248 1,521 61 8 45 9 10 605,408 1,521 61 8 45 8 10 683,237 1,521 61 8 45 8 10 692,229 1,520 61 8 45 8 10 673,131 1,511 60 8 45 8 10 741,389 1,473 59 8 45 8 10 797,823 Water: Number of customers Water mains (miles) Maximum daily capacity (per million gallons) 73,854 1,149 32,113 71,614 1,132 30,956 66,010 1,067 32,243 61,830 1,015 33,877 59,443 986 31,376 57,548 925 30,460 55,878 888 30,120 54,190 888 29,988 53,181 886 29,616 51,796 886 28,368 Wastewater: Sanitary sewers (miles) Primary and secondary drainage facilities 1,181 322 1,156 312 1,085 289 1,021 294 1,028 306 1,030 306 1,081 305 1,116 305 1,115 303 1,095 303 Police-Collier County Sheriff’s Department Fire-Collier County Bureau of Emergency Services Highway and Streets-Collier County Traffic Operations, Transportation Engineering, Road and Bridge Culture and Recreation-Collier County Public Library, Parks and Recreation Water-Collier County Water, Utility Billing Wastewater-Collier County Stormwater, Wastewater THIS PAGE INTENTIONALLY LEFT BLANK Single Audit THIS PAGE INTENTIONALLY LEFT BLANK Cli ftonlarsonA llen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Collier County, Florida We have audited , in accordance with the auditing standards generally accepted in the Uni ted States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the finan cial statements of t he governmental activities , the business-type activities, the aggregate discretely presented component units , each major fund , and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30 , 2019 , and the related notes to the financial statements , which collectively comprise the County 's basic financial statements , and have issued our repo rt t hereon dated February 13, 2020. Internal Control Over Financial Reporting In planning and performing our audit of th e financial statements, we consid ered th e County's internal control over financial reporting (internal control) to determine t he audit procedure s th at are appropriate in the circumstances for the purpose of expres sing our opinions on the financi a l statements , but not for the purpose of expressing an opinion on the effectiveness of the County 's internal control. Acco rdingly, we do not express an opinion on the effectiveness of the County 's internal cont rol. A deficiency in internal control exists when the design or operation of a control does not allow management or employees , in the normal course of performing their assigned functions , to prevent , or detect and correct , misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibili ty t hat a material misstatement of the entity 's financial statements will not be prevented , or detected and corrected on a timely basis. A significant deficiency is a deficiency , or a combination of deficiencies , in internal con t rol that is less severe than a material weakness yet important enough to merit attent ion by thos e ch arged with governance. Our consideration of int ernal control was for the limited purpose described in the firs t paragraph of thi s section and was not designed to identify all deficiencies in internal control t hat might be material weaknesses or significant deficiencies . Given these limitations , during our audit we did not identify any deficiencies in internal control that we consider to be material we aknesses. However, materia l weaknesses may e xist that have not been identified. 171 Honorable Board of County Commissioners Collier County , Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws , regulations, contracts , and grant agreements , noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objecti ve of our audit, and accordingly , we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing , and not to provide an opinion on the effectiveness of t he entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. ~~LL.:? CliftonlarsonAllen LLP Naples, Florida February 13 , 2020 172 Cli ftonlarsonA llen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County , Florida Report on Compliance for Each Major Federal Program and State Project We have audited Collier County , Florida's (County) compliance with the types of compliance requirements described in the 0MB Compliance Supplement and t he requirements described in t he State of Florida Department of Financial Services ' State Projects Compliance Supplement that could have a direct and material effect on each of the County 's major federal programs and state projects for the year ended September 30 , 2019 . The County 's major federal programs and state proj ects are identified in the summary of auditors' results section of the accompanying sch edule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of federal and state statutes , regulations , and the terms and conditions of its federal awards and state projects appli cable to its federal programs and state projects. Auditors ' Responsibility Our responsibility is to express an opinion on compliance for each of th e Coun ty 's major fe deral programs and state projects bas ed on our audit of the types of compliance requirements re ferred t o above. We conducted our audit of compliance in accordance with audi ting stand ards generally accepted in the United States of America ; the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of t he Un ited States ; t he audit requirements of Title 2 U.S . Code of Federal Regulations Pa rt 200 , Uni form Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uni form Guidance); and Chapter 10.550 , Rules of the Auditor General Local Governmental Entity Audits (Chapter 10.550). Those standards , the Uniform Guidance , and Chapter 10.550 require that we pl an and perf orm t he audit to obtain reasonable assurance about whether noncompliance with t he types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining , on a test basis , evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances . We believe that our audit provides a reasonable basis for our opinion on complianc e for each major fe deral program and state project. However, our audit does not provide a leg al d ete rminat ion of t he County 's compliance. 173 Honorable Board of County Commissioners Collier County, Florida Opinion on Each Major Federal Program and State Project In our opinion , the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30 , 2019. Other Matters The results of our auditing procedures disclosed instances of noncompliance , which are required to be reported in accordance with Chapter 10.550 and which are described in the accompanying schedule of findings and questioned costs as item 2019-001. Our opinion on each major federal program and state project is not modified with respect to these matters . The County's response to the noncompliance findings identified in our audit is described in t he accompanying schedule of findings and questioned costs. The County's response was not subjected to the auditing procedures applied in the audit of compliance and , accordingly , we express no opinion on the response. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal con t rol over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for t he purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10 .550 , but not for the purpose of expressing an opinion on the effectiveness of internal con t rol over compliance. Accordingly , we do not express an opinion on the effectiveness of the County's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees , in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented , or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency , or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore , material weaknesses or significant deficiencies may exist that have not been identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses . However, we did identify a certain deficiency in internal control over compliance , described in the accompanying schedule of findings and questioned costs as item 2019-001, that we consider to be a significant deficiency . 174 Honorable Board of County Commissioners Collier County , Florida The County's response to the internal control over compliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The County's response was not subjected to the auditing procedures applied in the audit of compliance and , accordingly , we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly , this report is not suitable for any other purpose. ~~LL? CliftonlarsonAllen LLP Naples, Florida February 13, 2020 175 176 SINGLE AUDIT Schedule of Expenditures SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2019 FEDERAL / STATE AGENCY PASS-THROUGH ENTITY FEDERAL PROGRAM / STATE PROJECT U.S. Department of Agriculture Direct Programs: Natural Resources Conservation Service: Emergency Watershed Protection Program Pass-Through Programs: Florida Department of Agriculture and Consumer Services: Child Nutrition Cluster: Summer Food Service Program for Children Total Child Nutrition Cluster Total U.S. Department of Agriculture U.S. Department of Commerce Pass-Through Programs: Florida Department of Environmental Protection: Coastal Zone Management Administration Awards Total U.S. Department of Commerce U.S. Department of Housing and Urban Development Direct Programs: Assistant Secretary for Community Planning and Development: CDBG - Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Total CFDA Total CDBG - Entitlement Grants Cluster Emergency Solutions Grant Program Emergency Solutions Grant Program Total CFDA Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Total CFDA Total U.S. Department of Housing and Urban Development U.S. Department of the Interior Direct Programs: Office of the Secretary of the Interior: Payments in Lieu of Taxes U.S. Fish and Wildlife Service: National Wildlife Refuge Fund Total U.S. Department of the Interior CFDA / CSFA NUMBER 10.923 10.559 11.419 14.218 14.218 14.218 14.218 14.218 14.218 14.218 14.218 14.231 14.231 14.239 14.239 14.239 15.226 15.659 FEDERAL AWARD IDENTIFICATION / GRANT / CONTRACT NUMBER NR184209XXXXC028 18588 CM918 B-08-UN-12-0003 B-11-UN-12-0003 B-13-UC-12-0016 B-14-UC-12-0016 B-15-UC-12-0016 B-16-UC-12-0016 B-17-UC-12-0016 B-18-UC-12-0016 E-17-UC-12-0016 E-18-UC-12-0016 M-14-UC-12-0217 M-16-UC-12-0217 M-18-UC-12-0217 Collier County Collier County TRANSFERS TO EXPENDITURES SUBRECIPIENTS $ 4,662,041 $- 59,110 - 59,110 - 4,721,151 - 2,021 - 2,021 - 117 - 2,538 - 651 651 53,240 53,240 142,204 142,204 220,340 156,554 1,027,022 941,996 727,956 248,230 2,174,068 1,542,875 2,174,068 1,542,875 42,077 40,322 122,036 111,012 164,113 151,334 47,038 47,038 51,310 51,310 67,810 - 166,158 98,348 2,504,339 1,792,557 1,416,537 - 173,520 - 1,590,057 - (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. 177 SINGLE AUDIT Schedule of Expenditures COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2019 FEDERAL / STATE AGENCY PASS-THROUGH ENTITY FEDERAL PROGRAM / STATE PROJECT U.S. Department of Justice Direct Programs: Criminal Division: Equitable Sharing Program Office of Justice Programs: Drug Court Discretionary Grant Program Edward Byrne Memorial Justice Assistance Grant Program Edward Byrne Memorial Justice Assistance Grant Program Total CFDA STOP School Violence Pass-Through Programs: Florida Department of Legal Affairs: Crime Victim Assistance Total U.S. Department of Justice U.S. Department of Transportation Direct Programs: Federal Aviation Administration (FAA): Airport Improvement Program Airport Improvement Program Airport Improvement Program Total CFDA Federal Transit Administration (FTA): Federal Transit Cluster: Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Federal Transit Formula Grants Total CFDA Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs Pass-Through Programs: Florida Department of Transportation: Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs Total CFDA Total Federal Transit Cluster CFDA / CSFA NUMBER 16.922 16.585 16.738 16.738 16.839 16.575 20.106 20.106 20.106 20.507 20.507 20.507 20.507 20.507 20.507 20.507 20.507 20.507 20.507 20.507 20.526 20.526 20.526 20.526 20.526 20.526 FEDERAL AWARD IDENTIFICATION / GRANT / CONTRACT NUMBER Collier County Sheriff 2017-DC-BX-0053 2017-DJ-BX-0482 2018-DJ-BX-0467 2018-YS-BX-0011 VOCA-2018-Collier County Sheriff’s -00019 3-12-0021-004-2017 3-12-0031-009-2016 3-12-0142-012-2018 FL-90-X766-00 FL-90-X853-00 FL-95-X062-00 FL-95-X085-00 FL-95-X086-00 FL-2016-056-00 FL-2017-035-00 FL-2017-044-00 FL-2017-055-00 FL-2018-034-00 FL-2018-098-00 FL-2017-017-00 FL-2018-084-00 439255-1-94-14 G0015 G0A60 G0L50 EXPENDITURES $ 57,196 124,585 64,573 3,648 68,221 62,864 170,448 483,314 25,797 3,180 6,214 35,191 28,233 3,350 23,288 1,536 32,631 6,193 548,571 50,409 27,398 254,984 2,122,054 3,098,647 12,328 53,150 54,158 20,096 6,616 4,696 151,044 3,249,691 TRANSFERS TO SUBRECIPIENTS $ - 112,830 - - 112,830 - - 112,830 - - - - - - - - - - - - - - - - - - - - - - - - (Continued) 178 SINGLE AUDIT Schedule of Expenditures COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2019 FEDERAL / STATE AGENCY CFDA / PASS-THROUGH ENTITY CSFA FEDERAL PROGRAM / STATE PROJECT NUMBER Highway Planning and Construction Cluster: Highway Planning and Construction 20.205 Highway Planning and Construction 20.205 Highway Planning and Construction 20.205 Highway Planning and Construction 20.205 Highway Planning and Construction 20.205 Highway Planning and Construction 20.205 Highway Planning and Construction 20.205 Highway Planning and Construction 20.205 Highway Planning and Construction 20.205 Total CFDA Total Highway Planning and Construction Cluster Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research 20.505 Formula Grants for Rural Areas and Tribal Transit Program 20.509 Formula Grants for Rural Areas and Tribal Transit Program 20.509 Total CFDA Transit Services Programs Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 Total CFDA Total Transit Services Programs Cluster Total U.S. Department of Transportation U.S. Department of the Treasury Direct Programs: Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States 21.015 Total U.S. Department of the Treasury Institute of Museum and Library Services Pass-Through Programs: Florida Department of State: Grants to States 45.31 Total Institute of Museum and Library Services U.S. Election Assistance Commission Pass-Through Programs: Florida Department of State: Help America Vote Act Requirements Payments 90.401 Help America Vote Act Requirements Payments 90.401 Help America Vote Act Requirements Payments 90.401 Total U.S. Election Assistance Commission U.S. Department of Health and Human Services Pass-Through Programs: Florida Department of Elder Affairs: Area Agency on Aging for Southwest Florida, Inc.: Aging Cluster: Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 Total CFDA FEDERAL AWARD IDENTIFICATION / GRANT / CONTRACT NUMBER G0L51 G0L52 G0L53 G0L54 G0L55 G0L59 G0R30 G0S97 G0Y70 G0581 G0738 G1561 435210-1-93-14 435210-1-93-15 1 RDCGR060041-01-00 18-LSTA-D-07 2017-2018-0001-CLL 2018-2019-001-CLL 2018-2019-004-CLL OAA 203.18 OAA 203.19 TRANSFERS TO EXPENDITURES SUBRECIPIENTS $ 169,346 $- 13,434 - 604 - 151 - 334,008 - 177,373 - 1,353,263 - 63 - 436,010 - 2,484,252 - 2,484,252 - 61,618 - 3,004 - 306,004 - 309,008 - 211 - 9,533 - 9,744 - 9,744 - 6,149,504 - 895,654 - 895,654 - 2,875 - 2,875 - 18 - 190,156 - 69,038 - 259,212 - 96,917 - 249,149 - 346,066 - (Continued) 179 SINGLE AUDIT Schedule of Expenditures COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2019 FEDERAL AWARD FEDERAL / STATE AGENCY CFDA / IDENTIFICATION / PASS-THROUGH ENTITY CSFA GRANT / CONTRACT TRANSFERS TO FEDERAL PROGRAM / STATE PROJECT NUMBER NUMBER EXPENDITURES SUBRECIPIENTS Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.18 $ 191,207 $ - Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.19 514,965 - Total CFDA 706,172 - Nutrition Services Incentive Program 93.053 OAA 203.18 12,326 - Nutrition Services Incentive Program 93.053 OAA 203.19 38,046 - Total CFDA 50,372 - Total Aging Cluster 1,102,610 - National Family Caregiver Support, Title III, Part E 93.052 OAA 203.18 44,457 - National Family Caregiver Support, Title III, Part E 93.052 OAA 203.19 92,826 - Total CFDA 137,283 - Low-Income Home Energy Assistance 93.568 EHEAP 203.18 25,246 - Florida Department of Revenue: Child Support Enforcement 93.563 COC11 187,106 - Total U.S. Department of Health and Human Services 1,452,245 - Corporation for National and Community Service Direct Programs: Retired and Senior Volunteer Program 94.002 18SRSFL005 52,644 - Total Corporation for National and Community Service 52,644 - U.S. Executive Office of the President Direct Programs: High Intensity Drug Trafficking Areas Program 95.001 G17MI0015A 69,109 - High Intensity Drug Trafficking Areas Program 95.001 G18MI0015A 77,868 - Total U.S. Executive Office of the President 146,977 - U.S. Department of Homeland Security Pass-Through Programs: Executive Office of the Governor: Florida Division of Emergency Management: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Z0001 38,934,959 - Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Z0237 19,282 - Total CFDA 38,954,241 - Emergency Management Performance Grants 97.042 19-FG-AF-09-21-01-165 106,859 - Fire Management Assistance Grant 97.046 Z0309 62,224 - Homeland Security Grant Program 97.067 17-DS-V4-09-21-23-283 6,892 - Homeland Security Grant Program 97.067 18-DS-X1-09-21-23-165 44,311 - Homeland Security Grant Program 97.067 19-DS-01-09-18-02-281 32,719 - Homeland Security Grant Program 97.067 19-DS-01-09-21-02-211 148,418 - Homeland Security Grant Program 97.067 19-DS-X5-09-21-23-050 18,234 - Total CFDA 250,574 - Total U.S. Department of Homeland Security 39,373,898 - TOTAL EXPENDITURES OF FEDERAL AWARDS $ 57,633,891 $ 1,905,387 (Continued) 180 SINGLE AUDIT Schedule of Expenditures COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2019 FEDERAL AWARD FEDERAL / STATE AGENCY CFDA / IDENTIFICATION / PASS-THROUGH ENTITY CSFA GRANT / CONTRACT TRANSFERS TO FEDERAL PROGRAM / STATE PROJECT NUMBER NUMBER EXPENDITURES SUBRECIPIENTS Florida Executive Office of the Governor Executive Office of the Governor Direct Projects: Emergency Management Programs 31.063 19-BG-21-09-21-01-019 $ 89,679 $ - Emergency Management Programs 31.063 A0002 1,211 - Total Florida Executive Office of the Governor 90,890 - Florida Department of Environmental Protection Direct Projects: Beach Management Funding Assistance Program 37.003 14CO1 70,357 - Beach Management Funding Assistance Program 37.003 16CO1 2,888 - Beach Management Funding Assistance Program 37.003 19CO1 1,237,304 - Total CSFA 1,310,549 - Statewide Surface Water Restoration and Wastewater Projects 37.039 AB005 16,700 - Statewide Surface Water Restoration and Wastewater Projects 37.039 LP11030 750,000 - Total CSFA 766,700 - Total Florida Department of Environmental Protection 2,077,249 - Florida Department of Economic Opportunity Pass-Through Projects: Enterprise Florida, Inc.: Economic Development Partnerships 40.04 Collier County FY 2018-2019 20,600 - Florida Tourism Industry Marketing Corporation, Inc., doing business as VISIT FLORIDA®: Economic Development Partnerships 40.04 9120 22,500 - Economic Development Partnerships 40.04 9314 44,879 - Total Florida Department of Economic Opportunity 87,979 - Florida Housing Finance Corporation Direct Projects: State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2015-2016 697,300 - State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2016-2017 1,362,378 30,027 State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2017-2018 452,976 - Collier County FY 2017-2018 State Housing Initiatives Partnership Program (SHIP) 40.901 DR 23,085 - State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2018-2019 136,235 - State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2019-2020 65,181 - Total Florida Housing Finance Corporation 2,737,155 30,027 Florida Department of State and Secretary of State Direct Projects: State Aid to Libraries 45.03 15-ST-08 1,068 - State Aid to Libraries 45.03 16-ST-08 107,635 - State Aid to Libraries 45.03 17-ST-08 84,120 - Total Florida Department of State and Secretary of State 192,823 - Florida Department of Transportation Direct Projects: Aviation Grant Programs 55.004 G0E50 4,450,761 - Aviation Grant Programs 55.004 G0E63 177 - Aviation Grant Programs 55.004 G0O39 1,433 - Aviation Grant Programs 55.004 G0O51 40,642 - Aviation Grant Programs 55.004 G0V81 89,826 - Aviation Grant Programs 55.004 G0Z16 53,695 - Aviation Grant Programs 55.004 G1643 205 - Total CSFA 4,636,739 - (Continued) 181 SINGLE AUDIT Schedule of Expenditures COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2019 FEDERAL / STATE AGENCY PASS-THROUGH ENTITY FEDERAL PROGRAM / STATE PROJECT Public Transit Block Grant Program Public Transit Block Grant Program Total CSFA Public Transit Service Development Program Public Transit Service Development Program Total CSFA Local Transportation Projects Pass-Through Projects: Florida Commission for the Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Total CSFA Total Florida Department of Transportation Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program Total Florida Department of Children and Families Florida Department of Health Direct Projects: County Grant Awards County Grant Awards Total Florida Department of Health Florida Department of Elder Affairs Pass-Through Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly Home Care for the Elderly Total CSFA Alzheimer’s Respite Services Alzheimer’s Respite Services Total CSFA Community Care for the Elderly Community Care for the Elderly Total CSFA Total Florida Department of Elder Affairs Florida Fish and Wildlife Conservation Commission Direct Projects: Derelict Vessel Removal Program Bear Resistant Equipment Total Florida Fish and Wildlife Conservation Commission TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE CFDA / CSFA NUMBER 55.01 55.01 55.012 55.012 55.039 55.001 55.001 55.001 60.115 64.005 64.005 65.001 65.001 65.004 65.004 65.01 65.01 77.005 77.034 FEDERAL AWARD IDENTIFICATION / GRANT / CONTRACT NUMBER G0Q98 G1577 G0575 G0G64 G0T26 G0X18 G0X96 G1A20 LHZ54 C6011 C7011 HCE 203.18 HCE 203.19 ADI 203.18 ADI 203.19 CCE 203.18 CCE 203.19 17327 Collier County TRANSFERS TO EXPENDITURES SUBRECIPIENTS $ 95,568 $- 545,832 - 641,400 - 19,341 - 61,205 - 80,546 - 218,180 - 576,781 - 26,962 - 227,647 - 831,390 - 6,408,255 - 283,149 265,624 283,149 265,624 20,658 - 42,429 - 63,087 - 17,031 - 6,540 - 23,571 - 368,983 - 83,467 - 452,450 - 686,725 - 160,659 - 847,384 - 1,323,405 - 31,875 - 44,850 - 76,725 - $ 13,340,717 $ 295,651 182 SINGLE AUDIT Schedule of Expenditures COLLIER COUNTY, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Year Ended September 30, 2019 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Projects (the Schedule) includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on the modified accrual basis of accounting for expenditures accounted for in the governmental funds and the accrual basis of accounting for expenditures in proprietary funds. Under the modified accrual basis, revenue is recognized if it is both measurable and available for use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if measurable. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Section 215.97, Florida Statutes. Therefore, some amounts presented in the Schedule may differ from amounts presented, or used in the preparation of, the basic financial statements for the fiscal year ended September 30, 2019. 2. Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the County. 3. Indirect Cost Rate The County has not elected to use the 10 percent de minimus cost rate allowed under the Uniform Guidance. 4. Disaster Grants - Public Assistance (Presidentially Declared Disasters) (97.036) After a presidentially declared disaster, FEMA provides Disaster Grants – Public Assistance (Presidentially Declared Disasters) (CFDA 97.036) to reimburse eligible costs associated with debris removal, emergency protective measures and the repair, restoration, reconstruction or replacement of public facilities or infrastructure damaged or destroyed. Reimbursements are provided in the form of cost-shared grants. Hurricane Irma (FEMA-4337-DR) made landfall in Collier County on September 10, 2017. In 2019, $36.3 million eligible expenditures were approved that were incurred in 2017 and 2018 and are included in the Schedule. 5. Fire Management Assistance Grant (97.046) After a fire declaration, FEMA provides Fire Management Assistant Grants (CFDA 97.046) to reimburse eligible costs associated with mitigation, management, and control of fires. Reimbursements are provided in the form of cost-shared grants. A Fire Management Assistance Declaration was declared in April 2017 for the Florida 30th Avenue Fire (FM-5178). In 2019, $62,224 eligible expenditures were approved that were incurred in 2017 and are included in the Schedule. 183 SINGLE AUDIT Schedule of Expenditures COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2019 Section I -Summary of Auditors' Results Financial Statements 1. Type of auditors' report issued: 2. Internal control over ti nancial reporting: • Material weakness(es) identified? • Significant deficiency(ies) identified? 3. Noncompliance material to financial statements noted? Federal Awards 1. Internal control over major federal programs: • Material weakness(es) identified? • Significant deficiency(ies) identified? 2. Type of auditors' report issued on compliance for major federal programs: 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Identification of Major Federal Programs CFDA Number(s) 97 .036 20.500 , 20.507 , 20.525 , and 20.526 Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? Unmodified yes X no yes X none reported yes X no yes X no yes X none reported Unmodified yes X no Name of Federal Program or Cluster Disaster Grants-Public Assistance Federal Transit Cluster $ 1,729,017 __ x __ yes ____ no 184 SINGLE AUDIT Schedule of Expenditures COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2019 State Financial Assistance 1. Internal control over state projects: • Material weakness(es) identified? • Significant deficiency(ies) identified that are not considered to be material weakness(es)? 2. Type of auditors ' report issued on compliance for state projects: 3. Any audit findings disclosed that are required to be reported in accordance w ith state requirements? Identification of Major State Projects CSFA Number{s) 37 .003 55 .004 55 .001 65.010 Dollar threshold used to distinguish between Type A and Type B state projects: _____ yes -~x~_no -~x~_yes _____ none reported Unmodified __ x __ yes _____ no Name of State Project Beach Management Funding Assistance Program Aviation Grants Program Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Community Care for the Elderly $ 750,000 Section II -Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section Ill -Findings and Questioned Costs -Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200 .516(a). 185 SINGLE AUDIT Schedule of Expenditures COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2019 Section IV-Findings and Questioned Costs-Major State Projects 2019 -001: Allowable Costs, Activities, and Period of Availability State agency: State of Florida , Commission for the Transportation Disadvantaged State program title: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program CSFA Number: 55.001 Award Period : July 1, 2018 to June 30 , 2020 Type of Finding: Compliance ; Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per Florida Statutes Chapter 427.0155 (7), F.A.C. 41-2.006 (4)(j), the CTC , in cooperation with the coordinating board and pursuant to criteria developed by the Florida Commission for the Transportation Disadvantaged (FCTD), must establish eligibility guidelines with regard to the recipients of non-sponsored transportation disadvantaged services that are purchased with Transportation Disadvantaged Trust Fund moneys. The Program Manual states that the two areas for which grant funds may be ut ilized include Non-sponsored trips and capital equipment. A Non-sponsored trip is a one-way trip for an eligible individual who meets the definition of transportation disadvantaged and is not sponsored by any other federal , state , or local government program. Per the contract agreements , there should be an approved eligibility application before a rider receives a non-sponsored service. In addition , documentation which supports the eligibility determination shall be maintained by the recipient as part of the rider's eligibility file. Condition: The following allowable costs and period of availability deficiencies were noted: Number of Finding Dollar Instances Impact Riders had gaps in their eligibility but were still included in the monthly invoicing 5 to the granter for reimbursement of their related 34 7 non-sponsored trips . $11 ,789 Questioned costs: $11 , 789 Context: There were 60 riders tested and 5 of these riders had gaps in their eligibility but continued to use the transportation during the gap period and were included on the reimbursement request. Cause: The County 's updated policy to help identify expiring applications had not been put into play until August 2019 and all errors noted were prior to that period. Effect: Noncompliance with grant agreement and Florida Statutes Chapter 427.0155(7). The potential exists that riders are receiving benefits that do not meet the eligibility requirements. Repeat Finding: No Recommendation: We recommend management ensure all expired applications associated with riders be identified and those riders be excluded from the reimbursement request. Views of responsible officials: There is no disagreement with the audit finding . THIS PAGE INTENTIONALLY LEFT BLANK A member of Nexia lnternat/onal CliftonlarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the financial statements of Collier County, Florida (County) as of and for the fiscal year ended September 30, 2019, and have issued our report thereon dated February 13, 2020. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated February 13, 2020, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been included in the notes to the basic financial statements. Honorable Board of County Commissioners Collier County, Florida Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the County met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the County. It is management’s responsibility to monitor the County’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 13, 2020 @ Amemberof Nexia lntematlonal CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida’s (County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds and Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2019. Management of the County is responsible for the County’s compliance with the specified requirements. Our responsibility is to express an opinion on the County’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the County’s compliance with specified requirements. In our opinion, the County complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds and Section 365.172(10) and 365.173(2) (d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2019. This report is intended solely for the information and use of the County and the Auditor General, state of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 13, 2020 THIS PAGE INTENTIONALLY LEFT BLANK ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal year ended September 30, 2019. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios THIS PAGE INTENTIONALLY LEFT BLANK TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2019 Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes Governmental Impact Fees Half Cent Sales Tax Developmental Fees State Revenue Sharing 5th Cent Local Option Gas Tax 6th Cent Local Option Gas Tax Constitutional Gas Tax Seventh Cent Gas Tax Ninth Cent Gas Tax Parks and Recreation Fees Tourist Development Tax Court Facilities Fees Communications Services Tax $ 355,589,380 49,668,942 46,354,649 30,173,297 12,315,016 6,137,790 8,126,393 4,674,930 2,060,853 1,708,862 6,527,967 30,674,176 891,443 4,341,973 Total bondable revenues $ 559,245,671 Fiscal 2019 governmental debt service requirements: Series 2012 Gas Tax Bonds Principal: Interest: Series 2014 Gas Tax Bonds $ 3,120,000 749,650 Principal: Interest: Series 2010 Special Obligation Bonds Principal: Interest: Series 2010B Special Obligation Bonds Principal: Interest: Series 2011 Special Obligation Bonds Principal: Interest: Series 2013 Special Obligation Bonds Principal: Interest: Series 2017 Special Obligation Bond Principal: Interest: Series 2018 Tourist Development Tax Bonds Principal: Interest: Commercial Paper Program Principal: Interest: 7,710,000 1,791,944 2,095,000 138,450 2,340,000 365,000 6,175,000 2,493,131 ‐ 2,846,975 255,000 1,347,240 ‐ 1,209,772 400,000 335,792 Total fiscal 2019 governmental debt service requirements $ 33,372,954 Governmental debt ratio of fiscal year 2019 debt service requirements to total bondable revenues (13.0% maximum allowed by County policy) Notes: 6.0% Debt service is based upon current amortization tables for the fiscal year indicated. Debt prepayments, if any, are not included as debt service requirements. TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2019 Collier County Water and Sewer District: Total Sales Revenues $ 151,462,235 Miscellaneous Revenues 4,376,987 Total Operating Revenues 155,839,222 Non‐Operating Revenues 7,814,254 Gross Revenues 163,653,476 Less: Operation and Maintenance Expense (excluding Depreciation and Amortization) 98,281,008 Net Revenues Available for Debt Service (1) $ 65,372,468 Total Fiscal Year 2019 Debt Service on Bonds (2) $ 10,352,598 Net Revenues Debt Service Coverage on Bonded Debt (100% Required) ‐(1/2) 631% Other Pledged Funds: System Development Fees (Impact Fees) $ 15,510,706 Total Pledged Funds Available for Debt Service (3) $ 80,883,174 Total Fiscal Year 2019 Debt Service on Bonds (4) $ 10,352,598 Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) ‐(3/4) 781% Total Pledged Funds Available for Debt Service After Payment of Bonds (5) $ 70,530,576 Total Fiscal Year 2019 Debt Service on Subordinated Indebtedness (6) $ 10,703,865 Calculated Coverage on Subordinated Indebtedness ‐(5/6) 659% Total Pledged Funds Available for System Purposes $ 59,826,711 Notes: Coverage calculations utilitize definitions of Gross Revenues, Net Revenues, System Development Fees and Pledged Funds established in Resolution CWS 85‐5, as Amended and Restated. 2 Summary Debt Statement for Fiscal Year 2019 General Governmental Debt: While the Florida State Constitution and the Florida Statutes set no legal debt limit at the local level, prudent fiscal management requires a self-imposed level of restraint. Collier County’s Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this threshold. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County’s Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio remained unchanged for the fiscal year ended September 30, 2019, at 6.0% (see Table 1), or less than half of the allowable ratio. The increase in debt service related to current year borrowings was offset by increases in ad valorem tax collections, governmental impact fees and tourist development tax revenues. For FY-2019, Ad valorem tax collections increased by 5.6%, governmental impact fees (non-water and wastewater) increased by 8.7% and tourist development tax collections increased by 9.7%. Recent debt restructurings coupled with the growth of general governmental revenues produced several consecutive years of decreases in the general governmental debt ratio. A 5.2% increase in overall revenues allowed for three new FY-2019 issuances with no corresponding increase in the governmental debt ratio. For more information on the three new issues please see the section entitled New General Government Debt. The trend in the governmental debt ratio is shown in the table below: 10.7% 9.4% 8.1% 7.6% 7.0% 6.5% 6.0% 6.0% 13.0% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% FY‐2012 FY‐2013 FY‐2014 FY‐2015 FY‐2016 FY‐2017 FY‐2018 FY‐2019 Comparison of Governmental Debt Ratio to Maximum Allowable Governmental Debt Ratio Collier County, Florida (FY 12 ‐FY19) Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 3 Summary of Existing and Newly Issued General Government Debt Existing General Government Debt In 2010, Collier County issued the $59,895,000 Series 2010 and $24,620,000 2010B Special Obligation Refunding Revenue Bonds with interest rates ranging from 3.00% to 5.00% and final maturities of July 1, 2034 and October 1, 2021, respectively. In 2011, Collier County issued $92,295,000 in Special Obligation Refunding Revenue Bonds with interest rates ranging from 2.50% to 5.00% and a final maturity of October 1, 2029. In 2013, $73,805,000 in Special Obligation Refunding Revenue Bonds with interest rates ranging from 3.50% to 4.00% and a final maturity of October 1, 2035 were issued. In 2017, Collier County issued the $43,713,000 Series 2017 Special Obligation Refunding Revenue Note (Bank Term Loan) to advance refund a portion of the County’s outstanding Special Obligation Revenue Bonds, Series 2010. The final maturity of the Series 2017 Note is July 1, 2034, with an interest rate of 3.09%. Security for the County’s Special Obligation Bonds is a covenant to appropriate in the annual budget by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient pay debt service on the combined Special Obligation Bonds. In 2012, Collier County issued $38,680,000 in Gas Tax Refunding Revenue Bonds with interest rates ranging from 3.00% to 5.00% and final maturity on June 1, 2023. In 2014, Collier County issued the $89,780,000 Gas Tax Refunding Revenue Bond, Series 2014 (Bank Term Loan) with an interest rate of 2.33% and final maturity on June 1, 2025. The pledge for the payment of the Gas Tax Revenue Bonds is combined gas tax revenues. Fiscal year 2019 gas tax revenues covered current year debt service payments on all outstanding Gas Tax Revenue Bonds at 170%. In 2018, Collier County issued a $12,000,000 variable rate commercial paper loan through the Florida Local Government Finance Commission’s Pooled Commercial Paper Program to acquire land for the construction of the County’s regional tournament caliber amateur sports complex. New General Government Debt Collier County issued $62,965,000 in Series 2018 Tourist Development Tax Revenue Bonds on October 24, 2018 to pay the costs to develop, acquire, construct, and equip a regional tournament caliber amateur sports complex. A lien and pledge upon the Tourist Development Tax provides security for the Tourist Development Tax Bonds. The Board of County Commissioners instituted a fifth penny of tourist tax revenue to provide the financial resources required to service the debt on the stadium complex. The final maturity of the Series 2018 bonds is October 1, 2048, with interest rates from 4.00% to 5.00%. On July 18, 2019, Collier County issued the $28,060,000 Series 2019 Special Obligation Revenue Note (Taxable Bank Term Loan). This loan was issued for the purpose of acquiring the real property known as the Golden Gate Golf Course. The final maturity of the Series 2019 Note is October 1, 2029, with an interest rate of 2.74%. The Series 2019 Special Obligation Revenue Note was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Bonds and Notes. 4 Collier County Governmental Bonded Debt Ratings Table: Current Ratings (as of 12/4/2019) Fitch Moody’s Standard & Poor’s Gas Tax Revenue Bonds AA-A2 A+ Special Obligation Bonds AA Aa1 AAA Tourist Development Tax Bonds* AA+ Aa3 - * Standard & Poor’s does not currently rate the Tourist Development Tax Bonds. A rating of AA by Fitch Ratings denotes the expectations of very low default risk and indicates very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. Fitch also uses intermediate +/- modifiers for each AA category. A Moody’s Investors Service rating of Aa is indicative of a high quality investment grade instrument with very low credit risk, whereas an A rating indicative of an upper-medium grade instrument subject to low credit risk. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. An obligation rated AAA has the highest rating assigned by Standard and Poor’s Global Ratings. The obligor’s capacity to meet its financial commitments on the obligation is extremely strong. An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitments on the obligation is still strong. Standard and Poor’s Global Ratings also uses intermediate +/- modifiers for each category to indicate relative standing within the major rating categories. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District’s debt are set by bond covenants. Net revenues, defined as operating revenues plus specific non-operating revenues less operating expenses, excluding depreciation, must cover senior lien bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover senior lien bonded debt service at 125%. Net revenue coverage on senior lien bonded debt was 631% and total pledged funds coverage on senior lien bonded debt was 781% for FY-2019, down from 762% and 926%, respectively, for FY-2018. Bonded debt coverages decreased primarily due to an 8.6% increase in operation and maintenance costs and a 20.7% increase in debt service when compared to FY-2018. The District’s calculated coverage on subordinated debt, all in the form of a bank loan with Synovus Bank, increased from 636% to 659% (see Table 2) reflecting a decrease in subordinated debt service. The total pledged funds coverage required by the subordinated loan agreement is equivalent to 115% of total subordinated debt service in each fiscal year, after payment of bonded debt service. User rates for potable water, wastewater and irrigation water, as well as miscellaneous revenues, offset system operating, maintenance, debt service and capital costs. The District’s water and sewer user rates increased by 2.8%, effective 10/01/2018. In July of 2018 the District’s governing board adopted rate increases of 2.8% effective October 1, 2018; 2.9% effective October 1, 2019; and, 2.9% effective October 5 1, 2020, for fiscal years 2019, 2020 and 2021, respectively. Over recent years’ the District has operated on a pay as you go basis, avoided borrowing and maintained financial stability. The District’s current focus is the optimization of resources, risk based prioritization of capital projects and infrastructure expansion in the northeast service area to serve future residents and businesses. On April 17, 2019, the Board of County Commissioners of Collier County, Florida and ex-officio as the governing Board of the Collier County Water-Sewer District (District) issued the Series 2019 Water and Sewer Revenue Bonds in the par amount of $76,185,000. These bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements in the northeast area of the County. The final maturity of the Series 2019 bonds is July 1, 2039, with interest rates from 3.00% to 5.00%. Collier County Enterprise Debt Ratings Table: Current Ratings (as of 12/4/2019) Fitch Moody’s Standard & Poor’s* Water and Sewer Revenue Bonds AAA Aa1 - * Standard & Poor’s does not currently rate County Water and Sewer Revenue Bonds. A rating of AAA by Fitch Ratings denotes the lowest expectation of default risk. A rating of AAA is only assigned in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. A Moody’s Investors Service rating of Aa is indicative of a high quality, investment grade instrument with very low credit risk. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa range. 6 Collier County, FloridaClerk of the Circuit Court Financial Statements and Supplemental Reports Year Ended September 30, 2019 CLAconnect.com WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING Collier County, Florida Clerk of the Circuit Court Financial Statements and Other Reports Year Ended September 30, 2019 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds ........................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund .............................................................................................................6 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Court Services Fund ..................................................................................................7 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Fund .....................................................................................8 Statement of Fiduciary Net Position – Agency Funds ................................................................9 Notes to Financial Statements...................................................................................................10 Supplementary Information Combining Statements of Fiduciary Net Position – All Agency Funds ...................................25 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..........................................26 Management Letter ...................................................................................................................28 Independent Accountants’ Report .............................................................................................30 @ Amemberof Nexia International CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Honorable Crystal K. Kinzel Clerk of the Circuit Court Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Clerk as of September 30, 2019, and the respective changes in financial position and budgetary comparisons for the General Fund, Court Services Fund and Other Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund and the aggregate remaining fund information only for that portion of the major funds and the aggregate remaining fund information of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2019, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk’s basic financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2 Honorable Crystal K. Kinzel Clerk of the Circuit Court Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2019, on our consideration of the Clerk’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Clerk’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Clerk’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida December 27, 2019 3 Collier County, Florida Clerk of the Circuit Court Balance Sheet – Governmental Funds September 30, 2019 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents $ 2,483,175 $ 1,450,127 $ 4,743,688 $ 8,676,990 Accounts receivable, net 15,091 25 -15,116 Due from Collier County, Florida Board of County Commissioners 6,220 --6,220 Due from other governments 19,227 40,917 -60,144 Total assets $ 2,523,713 $ 1,491,069 $ 4,743,688 $ 8,758,470 Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities $ 707,460 $ 281,583 $ 53,150 $ 1,042,193 Due to Collier County, Florida Board of County Commissioners 966,126 --966,126 Due to other governments -1,209,486 -1,209,486 Deposits 850,127 --850,127 Total liabilities 2,523,713 1,491,069 53,150 4,067,932 Fund balance: Restricted --4,690,538 4,690,538 Total fund balance --4,690,538 4,690,538 Total liabilities and fund balance $ 2,523,713 $ 1,491,069 $ 4,743,688 $ 8,758,470 See accompanying Notes to Financial Statements. 4 Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2019 Other Total Court Special Governmental General Services Revenue Funds Revenues: Intergovernmental $ -$ 427,032 $ -$ 427,032 Charges for services 3,433,947 7,223,375 1,120,830 11,778,152 Miscellaneous 36 --36 Interest income 115,261 67,398 68,556 251,215 Total revenues 3,549,244 7,717,805 1,189,386 12,456,435 Expenditures: General government: Personal services 7,629,661 5,329,749 971,528 13,930,938 Operating 2,033,999 612,213 -2,646,212 Capital outlay 288,860 --288,860 Total expenditures 9,952,520 5,941,962 971,528 16,866,010 Excess (deficiency) of revenues over (under) expenditures (6,403,276) 1,775,843 217,858 (4,409,575) Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 7,367,000 --7,367,000 Transfers out: Distribution of excess fees to State of Florida -(1,775,843) -(1,775,843) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (963,724) --(963,724) Total other financing sources (uses) 6,403,276 (1,775,843) -4,627,433 Net change in fund balance --217,858 217,858 Fund balances – beginning of year --4,472,680 4,472,680 Fund balances – end of year $ -$ -$ 4,690,538 $ 4,690,538 See accompanying Notes to Financial Statements. 5 Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2019 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 3,055,400 $ 3,068,900 $ 3,433,947 $ 365,047 Miscellaneous --36 36 Interest income 36,000 36,000 115,261 79,261 Total revenues 3,091,400 3,104,900 3,549,244 444,344 Expenditures: General government: Personal services 8,607,800 7,830,900 7,629,661 201,239 Operating expenditures 1,721,100 2,342,400 2,033,999 308,401 Capital outlay 129,500 298,600 288,860 9,740 Total expenditures 10,458,400 10,471,900 9,952,520 519,380 Excess (deficiency) of revenues over (under) expenditures (7,367,000) (7,367,000) (6,403,276) 963,724 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 7,367,000 7,367,000 7,367,000 - Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners --(963,724) (963,724) Total other financing sources (uses) 7,367,000 7,367,000 6,403,276 (963,724) Net change in fund balance ---- Fund balance – beginning of year ---- Fund balance – end of year $ -$ -$ -$ - See accompanying Notes to Financial Statements. 6 Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Court Services Fund Year Ended September 30, 2019 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 458,456 $ 458,456 $ 427,032 $ (31,424) Charges for services 6,159,849 6,159,849 7,223,375 1,063,526 Interest income 27,600 27,600 67,398 39,798 Total revenues 6,645,905 6,645,905 7,717,805 1,071,900 Expenditures: General government: Personal services 5,894,099 5,880,099 5,329,749 550,350 Operating expenditures 751,806 765,806 612,213 153,593 Total expenditures 6,645,905 6,645,905 5,941,962 703,943 Excess of revenues over expenditures --1,775,843 1,775,843 Other financing (uses): Transfers out: Distribution of excess fees to State of Florida --(1,775,843) (1,775,843) Total other financing (uses) --(1,775,843) (1,775,843) Net change in fund balance ---- Fund balance – beginning of year ---- Fund balance – end of year $ -$ -$ -$ - See accompanying Notes to Financial Statements. 7 Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Other Special Revenue Fund Year Ended September 30, 2019 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 1,110,000 $ 1,110,000 $ 1,120,830 $ 10,830 Interest income 30,500 30,500 68,556 38,056 Total revenues 1,140,500 1,140,500 1,189,386 48,886 Expenditures: General government: Personal services 1,053,300 1,053,300 971,528 81,772 Operating expenditures 1,122,400 1,122,400 -1,122,400 Capital outlay 573,100 573,100 -573,100 Total expenditures 2,748,800 2,748,800 971,528 1,777,272 Net change in fund balance (1,608,300) (1,608,300) 217,858 1,826,158 Fund balance – beginning of year 1,872,731 3,985,774 4,472,680 486,906 Fund balance – end of year $ 264,431 $ 2,377,474 $ 4,690,538 $ 2,313,064 See accompanying Notes to Financial Statements. 8 Collier County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Position Agency Funds September 30, 2019 Assets Cash and cash equivalents $ 18,842,673 Total assets $ 18,842,673 Liabilities Due to the Collier County, Florida Board of County Commissioners $ 302,311 Due to other governments 909,547 Deposits 17,630,815 Total liabilities $ 18,842,673 See accompanying Notes to Financial Statements. 9 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Florida. The Clerk’s Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and agency funds of the Clerk’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by: fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk’s general fund. Court-related operations are funded by the collection of fines, fees costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 10 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund –The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund – The court services fund is a special revenue fund established to account for court-related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund – The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office; and revenues mandated by Section 28.24(12)(e). The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk’s activities are classified as court-related and non-court-related. The Clerk’s general fund activity, which is classified as non-court-related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. 11 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Court-related operations are funded by the collection of fines, fees costs and service charges, and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds – Agency Funds – Agency funds are used to account for assets held by the Clerk in a trustee capacity or as an agent for individuals, private organizations, other governments, and other funds. The agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the full accrual basis of accounting. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. 12 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk’s funds, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non-spendable fund balances at the Clerk as of September 30, 2019. 13 , Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Spendable fund balances are classified based on a hierarchy of the Clerk’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk’s fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk’s annual budget. The Clerk prepares and approves the budget for the Clerk’s non-court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ending September 30, 2019, the Clerk had sufficient revenues to meet expenditures. 14 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 2. Budgetary Process (continued) The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk’s fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 3. Cash and Cash Equivalents At September 30, 2019, the carrying value of the Clerk’s cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A $ 7,900 N/A Demand deposits N/A 27,511,763 N/A Total cash and cash equivalents $ 27,519,663 The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each fund type’s portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. 15 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2019 are reported as $8,676,990 and $18,842,673 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2019, the Clerk’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Clerk’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter-local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk’s funds is based on maintaining 24 hour liquidity. All Clerks funds are held in local banks or short term investment instruments. 16 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 4. Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of $115,261 is reported in the general fund for the year ended September 30, 2019, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, Transfer- September 30, 2018 Additions Deductions out 2019 Capital assets depreciated: Machinery and equipment Less accumulated depreciation $ 6,441,349 (5,143,256) $ 288,860 (650,984) $ (16,207) 16,207 $ (190,142) 187,640 $ 6,523,860 (5,590,393) Total capital assets depreciated 1,298,093 (362,124) -(2,502) 933,467 Total capital assets, net $1,298,093 $ (362,124) $ -$ (2,502) $ 933,467 17 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 6. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, 2018 Additions Deletions September 30, 2019 Accrued compensated absences $ 1,817,416 $ 1,012,135 $ (898,406) $ 1,931,145 Of these liabilities, $907,638 is expected to be paid during the fiscal year ending September 30, 2020. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). 18 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 7. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 19 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 7. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre- July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 20 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 7. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Collier County Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. 21 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 7. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2019, 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 Collier County Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk’s contributions made to the plans during the years ended September 30, 2019, 2018, and 2017 were $1,009,015, $877,162 and $802,245, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the Collier County comprehensive annual financial report or County-wide financial statements. 22 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 8. Related Party Transactions The Board provided funding for the Clerk in the amount of $7,367,000. The Supervisor of Elections provided funding in the amount of a $47,000 fee for financial services performed by the Clerk. At September 30, 2019, the Clerk had a payable due to the Board of $1,268,437, comprised as follows: Distribution of excess fees $ 963,724 Amounts due for various services 2,402 Agency funds due 302,311 Total due to Board of County Commissioners $ 1,268,437 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2019, the Clerk was charged $2,376,168 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3 % wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 23 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2019 10. Other Postemployment Healthcare Benefits (OPEB) Plan In accordance with Section 112.0801, Florida Statutes, the Clerk participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a “party in interest” in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2019, the Clerk was involved in approximately 115,416 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in 226 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are 20 active actions for foreclosure of property in which the Clerk has been a named defendant. The Clerk is named as a party in a lawsuit regarding records retention. The Clerk is disputing the claim and expects a favorable outcome. In the opinion of the Clerk of the Circuit Court and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk of the Circuit Court. The Clerk’s Office carries insurance to protect against loss. 24 Collier County, Florida Clerk of the Circuit Court Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2019 Jury and Clerk’s Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents $ 3,292,433 $ 15,535,796 $ 14,444 $ 18,842,673 Total assets $ 3,292,433 $ 15,535,796 $ 14,444 $ 18,842,673 Liabilities Due to Collier County, Florida Board of County Commissioners $ 302,311 $ -$ -$ 302,311 Due to other governments 895,103 -14,444 909,547 Deposits 2,095,019 15,535,796 -17,630,815 Total liabilities $ 3,292,433 $ 15,535,796 $ 14,444 $ 18,842,673 25 CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Crystal K. Kinzel Clerk of the Circuit Court Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements, and have issued our report thereon dated December 27, 2019. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 26 Honorable Crystal K. Kinzel Clerk of the Circuit Court Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida December 27, 2019 27 CliftonlarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Crystal K. Kinzel Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the fiscal year ended September 30, 2019 and have issued our report thereon dated December 27, 2019. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated December 27, 2019, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. 28 Honorable Crystal K. Kinzel Clerk of the Circuit Court Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be, and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 27, 2019 29 @ Amemberof Nexia International CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court’s (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets, during the year ended September 30, 2019. Management of the Clerk is responsible for the Clerk’s compliance with the specified requirements. Our responsibility is to express an opinion on the Clerk’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Clerk complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Clerk complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk’s compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets during the year ended September 30, 2019. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 27, 2019 30 Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2019 CLAconnect.com WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2019 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – General Fund ......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Non-GAAP) and Actual – General Fund ....................................................5 Notes to Financial Statements.......................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................20 Management Letter ........................................................................................................................22 Independent Accountants’ Report ..................................................................................................26 A member of Nexia International CliftonlarsonAllen LL P CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 Honorable Abe Skinner Property Appraiser Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Property Appraiser as of September 30, 2019, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2019, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2019 on our consideration of the Property Appraiser’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida December 17, 2019 2 Collier County, Florida Property Appraiser Balance Sheet – General Fund September 30, 2019 Assets Cash and cash equivalents $ 1,514,281 Total assets $ 1,514,281 Liabilities and fund balance Liabilities: Accounts payable and accrued expenses $ 76,498 Due to Collier County, Florida Board of County Commissioners 471,124 Due to other taxing districts 966,659 Total liabilities 1,514,281 Fund balance - Total liabilities and fund balance $ 1,514,281 See accompanying Notes to Financial Statements. 3 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2019 Revenues: Commissions and fees Interest Miscellaneous Total revenues $ 8,866,135 582 10,427 8,877,144 Expenditures: General government: Personal services Operating Capital outlay Total expenditures Excess of revenues over expenditures 5,768,197 1,571,761 99,403 7,439,361 1,437,783 Other financing uses: Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners Distribution of excess fees and commissions to other governmental agencies Total other financing uses (471,124) (966,659) (1,437,783) Net change in fund balance Fund balance, beginning of year Fund balance, end of year $ - - - See accompanying Notes to Financial Statements. 4 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2019 Variance With Revenues: Budget Original Final Actual Final Budget Positive (Negative) Commissions and fees Interest revenue $ 7,797,089 $ - 7,799,352 - $ 7,799,352 341 $ - 341 Miscellaneous Total revenues - 7,797,089 - 7,799,352 10,427 7,810,120 10,427 10,768 Expenditures: General government: Personal services Operating Capital outlay Total expenditures 6,045,049 1,727,040 25,000 7,797,089 6,047,312 1,727,040 25,000 7,799,352 5,768,197 1,505,932 7,516 7,281,645 279,115 221,108 17,484 517,707 Excess of revenues over expenditures --528,475 528,475 Other financing uses: Distribution of excess fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions --(471,124) (471,124) and fees to other governmental agencies Total other financing uses - - - - (57,351) (528,475) (57,351) (528,475) Net change in fund balance Fund balance, beginning of year Fund balance, end of year $ - - -$ - - -$ - - -$ - - - See accompanying Notes to Financial Statements. 5 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser’s total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser’s office. The Property Appraiser’s financial statements include only the funds of the Property Appraiser’s office. There are no separate legal entities (component units) for which the Property Appraiser is considered to be financially accountable. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 6 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser’s only governmental fund is the general fund. The general fund is used to account for the general operations of the Property Appraiser and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser’s revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the “susceptible to accrual” criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. 7 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use-transfer out in the accompanying financial statements. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave and up to 200 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. 8 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser’s annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser’s total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. The Property Appraiser’s budget is prepared under a budgetary basis of accounting that differs from generally accepted accounting principles (GAAP). Certain revenues received from non-ad valorem commissions, expenditures of such revenue, and other financing uses related to non-ad valorem revenue are not recognized under the budgetary basis of accounting; however, these items have been recognized under GAAP. 9 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 2. Budgetary Process (continued) A reconciliation of revenues, expenditures, and other financing uses on a budgetary basis to a GAAP is as follows: Total revenues - budgetary basis Revenues not budgeted: Non-ad valorem commissions are not budgeted Non-ad valorem interest is not budgeted Total revenues - GAAP basis Total expenditures - budgetary basis Expenditures not budgeted: Non-ad valorem related expenditures are not budgeted Total expenditures - GAAP basis Total other financing uses - budgetary basis Other financing uses not budgeted: Distribution of non-ad valorem excess fees are not budgeted Total other financing uses - GAAP basis 3. Cash $ 7,810,120 1,066,783 241 $ 8,877,144 $ 7,281,645 157,716 $ 7,439,361 $ (528,475) (909,308) $ (1,437,783) At September 30, 2019, the carrying value of the Property Appraiser’s cash was as follows: Carrying Type Value Cash on hand Demand deposits Total cash $ 125 1,514,156 $ 1,514,281 10 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 3. Cash (continued) Custodial Credit Risk At September 30, 2019, the Property Appraiser’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Property Appraiser’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 11 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2019: October 1, September 30, 2018 Additions Deductions 2019 Improvements other than buildings Machinery and equipment Total capital assets $ 15,332 1,559,442 1,574,774 $ - 99,403 99,403 $ - (103,507) (103,507) $ 15,332 1,555,338 1,570,670 Less: accumulated depreciation (1,380,520) (77,138) 103,507 (1,354,151) Total capital assets, net $ 194,254 $ 22,265 $ -$ 216,519 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2018 Increase Decrease 2019 Accrued compensated absences $ 350,947 $ 308,251 $ (303,100) $ 356,098 12 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 5. Long-Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2020, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). 13 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. 14 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. 15 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. 16 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2019, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 17 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) Contributions The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser’s employer contributions to the plan for the years ended September 30, 2019, 2018, and 2017, were $512,315, $472,786, and $409,812, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Property Appraiser participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 8. Related Party Transactions During the fiscal year ended September 30, 2019, the Board paid fees to the Property Appraiser that amounted to $6,952,956. At September 30, 2019, the Property Appraiser had a payable due to the Board as follows: Distribution of excess commissions and fees $ 471,124 18 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2019 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County’s self-insurance program. During the year ended September 30, 2019, the Property Appraiser was charged $1,081,213 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third-party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser. 19 @ Amemberof Nexia International CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements, and have issued our report thereon dated December 17, 2019. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 20 Honorable Abe Skinner Property Appraiser Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida December 17, 2019 21 A member of Nexia International CliftonlarsonA llen LLP CLAconnect.com MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser) as of and for the year ended September 30, 2019, and have issued our report thereon dated December 17, 2019. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated December 17, 2019 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of significant findings and recommendations made in the preceding financial audit report are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to financial statements. 22 Honorable Abe Skinner Property Appraiser Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we made recommendations as listed in the following schedule of findings and response. The Property Appraiser’s response to the finding identified in our audit is described in the accompanying schedule of findings and response. The Property Appraiser’s response was not subjected to auditing procedures applied in the audit and, accordingly, we express no opinion on the response. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 17, 2019 23 Collier County, Florida Property Appraiser Schedule of Findings and Responses September 30, 2019 2019-001 Allocation of non-ad valorem excess fees Criteria: The allocation of non-ad valorem excess fees remitted to the non-ad valorem assessment districts should be based on the percentage of non-ad valorem fees collected from each district as compared to the total non-ad valorem assessments fees collected. Condition: During the audit, we noted that the allocation of non-ad valorem excess fees calculated for each of the non-ad valorem assessment districts was incorrect. Cause: An incorrect tax roll recapitulation was used to determine the allocation of excess fees. Effect: This error resulted in the non-ad valorem assessment districts receiving an incorrect amount of excess fees. Recommendation: We recommend that the calculation be thoroughly reviewed prior to the journal entry being made and the credit given to the non-ad valorem assessment districts. Management’s response: The allocation of the non-ad valorem excess fees will be corrected for next year’s billing using the appropriate percentages. 24 Collier County, Florida Property Appraiser Appendix A September 30, 2019 Prior Year Findings Finding Number Current Year Status Current Year 2017-2018 2016-2017 Cleared Partially Cleared Not Cleared Financial Reporting Material Weakness N/A 2018-001 N/A X Allocation of non-ad valorem excess fees Management Letter 2019-001 2018-002 N/A X 25 A member of Nexia International CliftonlarsonA llen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida We have examined the Collier County Property Appraiser, Collier County, Florida’s (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2019. Management of the Property Appraiser is responsible for the Property Appraiser’s compliance with the specified requirements. Our responsibility is to express an opinion on the Property Appraiser’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Property Appraiser complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Property Appraiser complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser’s compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2019. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 17, 2019 26 Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2019 CLAconnect.com WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING THIS PAGE INTENTIONALLY LEFT BLANK Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2019 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget (Non-GAAP) and Actual – General Fund ........................................................................6 Statement of Net Position – Internal Service Fund ..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund ....................................................................................................................8 Statement of Cash Flows – Internal Service Fund ...........................................................................9 Statement of Fiduciary Net Position – Agency Funds ...................................................................10 Notes to Financial Statements........................................................................................................11 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios ...............................................37 Combining Financial Information Combining Statement of Fiduciary Net Position – Agency Funds ................................................38 Statement of Changes in Assets and Liabilities – Agency Funds ..................................................39 Honorable Kevin Rambosk Sheriff Contents (continued) Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards.................................................................................................40 Management Letter ........................................................................................................................42 Independent Accountants’ Report ..................................................................................................44 Independent Accountants’ Report on Applying Agreed-Upon Procedures ...................................45 @ Amemberof Nexia International CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Sheriff’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Honorable Kevin Rambosk Sheriff Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Sheriff as of September 30, 2019, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2019, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Changes in Total OPEB Liability and Related Ratios, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. 2 Honorable Kevin Rambosk Sheriff Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff’s financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 11, 2020 on our consideration of the Sheriff’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Sheriff’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida February 11, 2020 3 Collier County, Florida Sheriff Balance Sheet –Governmental Funds Year Ended September 30, 2019 Grant Other Non-Major Special Prisoner Federal Equitable Special Revenue General Revenue Fund Welfare Sharing Funds Total Assets Cash and cash equivalents Accounts receivable Other receivable Due from other funds Due from other governments Due from Collier County, Florida Board of County Commissioners Total assets $ $ 13,486,940 94,641 3,410 246,593 24,319 10,284 13,866,187 $ $ 1,060,500 – – – 116,865 77,882 1,255,247 $ $ 2,314,966 – 11,813 62,665 – – 2,389,444 $ $ 643,040 – – 1,076 – – 644,116 $ $ – – – – – 238,484 238,484 $ $ 17,505,446 94,641 15,223 310,334 141,184 326,650 18,393,478 Liabilities and fund balances Liabilities: Accounts payable Accrued expenses Due to other funds Due to Collier County, Florida Board of County Commissioners Unearned revenue Total liabilities $ 1,455,911 10,900,425 1,001,076 508,775 – 13,866,187 $ 2,500 – – – 68,824 71,324 $ 6,224 – 46,436 – – 52,660 $ 5,016 – 5,030 – – 10,046 $ 56,286 – 182,198 – – 238,484 $ 1,525,937 10,900,425 1,234,740 508,775 68,824 14,238,701 Fund balances: Restricted Total liabilities and fund balances $ – 13,866,187 $ 1,183,923 1,255,247 $ 2,336,784 2,389,444 $ 634,070 644,116 $ – 238,484 $ 4,154,777 18,393,478 See accompanying Notes to Financial Statements. 4 Collier County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances– Governmental Funds Year Ended September 30, 2019 Grant Other Non-Major Special Prisoner Federal Equitable Special Revenue General Revenue Fund Welfare Sharing Funds Total Revenues: Grant revenue $ 108,752 $ 1,180,023 $ – $ – $ – $ 1,288,775 Charges for services 1,480,830 – 750,809 – – 2,231,639 Other revenue – – – 9,107 – 9,107 Total revenues 1,589,582 1,180,023 750,809 9,107 – 3,529,521 Expenditures: General government: Personal services 4,585,485 – – – – 4,585,485 Operating expenditures 66,157 – – – – 66,157 Capital outlay – – – – – – Public safety: – Personal services 144,630,143 442,755 276,610 – 612,675 145,962,183 Operating expenditures 28,217,673 301,883 136,698 57,196 1,741,750 30,455,200 Capital outlay 11,457,709 158,509 275,319 – 32,216 11,923,753 Debt Service - principal 58,210 – – – – 58,210 Debt Service - interest 4,975 – – – – 4,975 Total expenditures 189,020,352 903,147 688,627 57,196 2,386,641 193,055,963 Excess (deficiency) of revenues over (under) expenditures (187,430,770) 276,876 62,182 (48,089) (2,386,641) (189,526,442) Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 187,203,400 – – – – 187,203,400 Collier County, Florida Board of County Commissioners 719,875 – – – 2,386,641 3,106,516 Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (492,505) – – – – (492,505) Total other financing sources 187,430,770 – – – 2,386,641 189,817,411 Net change in fund balances – 276,876 62,182 (48,089) – 290,969 Fund balances – beginning of year – 907,047 2,274,602 682,159 – 3,863,808 Fund balances – end of year $ – $ 1,183,923 $ 2,336,784 $ 634,070 $ – $ 4,154,777 See accompanying Notes to Financial Statements. 5 Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2019 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Grant Revenue $ – $ – $ 108,752 $ 108,752 Charges for services – 1,589,400 1,480,830 (108,570) Total revenues – 1,589,400 1,589,582 182 Expenditures: General government: Personal services 4,260,100 4,260,100 4,585,485 (325,385) Operating expenditures 167,500 167,500 66,157 101,343 Capital outlay – – – – Public safety: Personal services 148,173,700 149,655,600 144,630,143 5,025,457 Operating expenditures 26,759,400 26,866,900 28,217,673 (1,350,773) Capital outlay 7,842,700 7,842,700 10,801,019 (2,958,319) Total expenditures 187,203,400 188,792,800 188,300,477 492,323 Excess of expenditures over revenues (187,203,400) (187,203,400) (186,710,895) 492,505 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 187,203,400 187,203,400 187,203,400 – Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners – – (492,505) (492,505) Total other financing sources (uses) 187,203,400 187,203,400 186,710,895 (492,505) Net change in fund balance – – – – Fund balance – beginning of year – – – – Fund balance – end of year $ – $ – $ – $ – Total expenditures - budgetary basis $ 188,300,477 Expenditures not budgeted: Expenditures for multi-period projects that are not budgeted 719,875 Total expenditure - GAAP basis $ 189,020,352 Total other financing sources (uses) - budgetary basis $ 186,710,895 Transfers in from Collier County Florida Board of County Commissioners (non-appropriations) 719,875 Total other financing sources (uses) - GAAP basis $ 187,430,770 See accompanying Notes to Financial Statements. 6 Collier County, Florida Sheriff Statement of Net Position – Internal Service Fund September 30, 2019 Assets: Cash and cash equivalents $ 4,080,631 Investments 8,350,238 Due from stop loss 156,551 Due from other 867 Due from other funds 1,000,000 Interest receivable 42,511 Total assets 13,630,798 Liabilities: Self insurance claims payable 2,946,000 Deferred revenue 93,401 Total liabilities 3,039,401 Net position: Unrestricted 10,591,397 Total net position $ 10,591,397 See accompanying Notes to Financial Statements. 7 Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund Year Ended September 30, 2019 Operating revenues: Charges for services Charges for services Total operating revenues $ 30,735,415 20,001 30,755,416 Operating expenses: Claims and claims expenses Reinsurance premiums Administrative and other expenses Total operating expenses Operating income 26,081,340 1,401,480 607,211 28,090,031 2,665,385 Nonoperating revenues: Interest income, net of management fees Realized gain on sale of investments Decrease in fair value of investments Total nonoperating revenues 137,178 16,165 113,671 267,014 Change in net position Net position – beginning of year Net position – end of year $ 2,932,399 7,658,998 10,591,397 See accompanying Notes to Financial Statements. 8 Collier County, Florida Sheriff Statement of Cash Flows – Internal Service Fund Year Ended September 30, 2019 Operating activities Cash payments for claims and claims related services $ (26,173,483) Cash payments for reinsurance premiums (1,401,480) Cash payments for administrative services and supplies (588,210) Cash received from other funds for services 29,000,000 Cash received from retirees for services 1,239,579 Net cash provided by operating activities 2,076,406 Investing activities Interest earnings, net of management fees 116,286 Purchase of securities (4,301,286) Proceeds from sales of securities 4,185,000 Net cash used by investing activities – Net increase in cash, cash equivalents, and investments 2,076,406 Cash, cash equivalents, and investments – beginning of year 2,004,225 Cash, cash equivalents, and investments – end of year $ 4,080,631 Reconciliation of operating income to net cash provided by operating activities Operating income $ 2,665,385 Adjustments to reconcile operating income to net cash provided by operating activities: Increase in other receivables (160,785) Increase in due to/from other funds (500,000) Increase in self-insurance claims payable 9,806 Increase in deferred revenue 62,000 Net cash provided by operating activities $ 2,076,406 See accompanying Notes to Financial Statements. 9 Collier County, Florida Sheriff Statement of Fiduciary Net Position – Agency Funds September 30, 2019 Assets: Cash and cash equivalents Due from individuals and businesses Total assets $ $ 613,876 9,646 623,522 Liabilities: Due to other funds Due to Collier County, Florida Board of County Commissioners Due to individuals and businesses Total liabilities $ $ 75,594 19,534 528,394 623,522 See accompanying Notes to Financial Statements. 10 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff’s budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County’s corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and agency funds of the Sheriff’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and related disclosures, including management’s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2019 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive Annual Financial Report. 11 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated general fund balance is carried forward. The fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Sheriff considers revenues to be available if they are collected within 60 days after year-end with the exception of grants, which have a period of availability of one year. Grants are recognized as revenue as soon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Substantially all of the Sheriff’s funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, money must be expended on the specific purpose or project before any amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures incurred. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the “susceptible to accrual” criteria are met. Other revenue is recognized as earned and becomes measurable and available to pay liabilities of the current period. 12 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has four major governmental funds: General Fund – The general fund is used to account for the general operations of the Sheriff and includes all transactions which are not accounted for in another fund. Grant Special Revenue Fund – This fund is used to account for the proceeds of federal and state grant revenues that are legally restricted to specified purposes. It also includes funds donated to the Collier County Sheriff’s Office. Donated funds are used in accordance with how each donor designates the use of funds. The majority of donated funds are usually designated for youth programs, however, funds have also been donated for officer safety, use by specific districts/substations for community activities, or other programs/activities in the community. Prisoner Welfare Fund – This fund is used to account for the proceeds of inmate-related services and is legally restricted to specified purposes, which benefit the inmate population. Federal Equitable Sharing Fund – The revenue from this fund is the result of joint investigations with federal agencies that result in the equitable sharing of the net proceeds of the forfeiture. The Sheriff also has the following non-major funds: Reported as Other Non-major Special Revenue Funds Confiscated Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are generally used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. 13 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Civil Citation – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. Education Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911 – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Domestic Violence Training Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 938.08. Funds are used to defray of incarcerating persons sentenced under Florida Statute 741.283 and to provide additional training to law enforcement personnel in combating domestic violence. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. Fiduciary Funds Fiduciary Funds – Agency Funds – These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Proprietary Fund Internal Service Fund – This fund is used to account for the health and dental insurance services provided to departments and retirees of the Sheriff on a cost-reimbursement basis. Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. 14 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Sheriff invests funds throughout the year with Florida PRIME, an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. Florida PRIME is considered a qualifying external investment pool that meets all the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the Sheriff’s position in the pool is the same as the value of the pool shares. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2019, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 36.5% of Florida PRIME’s portfolio at September 30, 2019. In accordance with GASB Statement No. 79, as a participant in a qualifying external investment pool, the Sheriff should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool’s authority to impose liquidity fees or redemption gates in the notes to the financial statements. With regards to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory council. The Trustees shall convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” 15 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments (continued) With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. At September 30, 2019, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 2,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. 16 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non-spendable fund balances as of September 30, 2019. Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned, and unassigned. The Sheriff’s fund balances for the Grant Special Revenue Fund, Prisoner Welfare Fund, and Federal Equitable Sharing Fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund, Prisoner Welfare Fund, and the Federal Equitable Sharing Fund are constrained for specific purposes that are externally imposed by donors, grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reports as restricted fund balances. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Sheriff’s annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the proceeds from capital leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare and federal equitable sharing funds do not have legally adopted budgets. 17 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 2. Budgetary Process (continued) The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. This space intentionally left blank 18 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 3. Cash, Cash Equivalents and Investments At September 30, 2019, the carrying value of the Sheriff’s cash, cash equivalents, and investments was as follows: Credit Type Maturity Carrying Value Rating * Cash on hand N/A $ 27,144 N/A Demand deposits N/A 21,384,313 N/A Local government surplus funds trust fund: Florida Prime N/A 788,495 AAAm Total cash and cash equivalents 22,199,952 Money Market N/A 115,066 Not rated Federal Farm Credit Bank 4/12/2023 250,005 AA+ Federal Home Loan Bank 5/13/2021 498,125 AA+ Federal Home Loan Bank 9/27/2021 248,908 AA+ Federal Home Loan Bank 11/25/2022 500,305 AA+ Federal Home Loan Bank 10/19/2020 499,970 AA+ Federal Home Loan Bank 12/13/2019 499,380 AA+ Federal Farm Credit Bank 11/16/2021 248,800 AA+ Federal Farm Credit Bank 8/16/2021 148,977 AA+ Federal Farm Credit Bank 3/2/2020 349,552 AA+ Federal Farm Credit Bank 2/20/2020 500,015 AA+ Federal Home Loan - FREDDIE MAC 5/25/2021 549,681 AA+ Federal Home Loan Mortgage Corp. 9/29/2020 250,105 AA+ Federal National Mortgage Association - FANNIE MAE 2/5/2020 495,137 AA+ Certificate of Deposit 4/4/2022 246,000 Not rated Certificate of Deposit 4/4/2022 246,000 Not rated Treasury Note 10/31/2020 249,835 AA+ Treasury Note 5/31/2020 502,010 AA+ Treasury Note 10/31/2019 249,877 AA+ Treasury Note 9/30/2020 497,815 AA+ Treasury Note 9/30/2020 224,017 AA+ Treasury Note 11/15/2020 504,490 AA+ Treasury Note 8/31/2020 476,169 AA+ Total Investments 8,350,239 Total cash, cash equivalents and investments $ 30,550,191 *Credit ratings are Moody ratings except for Florida Prime which is a Standard & Poor rating. 19 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 3. Cash, Cash Equivalents and Investments (continued) The total cash, cash equivalent and investments balances at September 30, 2019, were as follows: General fund $ 13,486,940 Grant special revenue fund 1,060,500 Prisoner welfare fund 2,314,966 Federal equitable sharing fund 643,040 Other non-major special revenue funds 0 Internal service fund 12,430,869 Agency funds 613,876 $ 30,550,191 Custodial Credit Risk At September 30, 2019, the Sheriff’s demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Multiple Employers Trust (FSMET) and are administered by Hunt Insurance Group. FMSET’s policy requires execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff’s name. Credit Risk The Sheriff’s policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff’s Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the U.S. Treasury. 20 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 3. Cash, Cash Equivalents and Investments (continued) Credit Risk (continued) Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2019, the Sheriff had $788,495 invested in Florida PRIME. Florida PRIME is rated “AAAm” by Standard & Poor’s Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Concentration of Credit Risk The Sheriff’s investments are included in the internal service fund which is used to account for the Sheriff’s self-insured health plan. FSMET administers the investments for the Sheriff’s self-insured health plan and has an investment policy that allows for the investment of funds that exceed one month’s required funding by more than $100,000. Investments can be made in government securities. The Sheriff’s portfolio managed by FSMET includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits that are not managed by FSMET and are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff’s portfolio invested in FSMET is detailed as follows, at September 30, 2019: % of Portfolio Money Market 1% Treasury Note 32% Certificate of Deposit 6% Federal Home Loan Mortgage Corp. 3% Federal Home Loan - FREDDIE MAC 7% Federal National Mortgage Association - FANNIE MAE 6% Federal Farm Credit Bank 15% Federal Home Loan Bank 30% Total 100% 21 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 3. Cash, Cash Equivalents and Investments (continued) Fair Value Measurements The Sheriff categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Sheriff has the following recurring fair value measurements as of September 30, 2019:  U.S. Treasury Notes classified as level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities.  U.S. Agency obligations classified as level 2 of the fair value hierarchy are valued using quoted prices for similar assets in active markets. 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at acquisition value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. 22 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 4. Capital Assets (continued) The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: Governmental Activities Capital assets not depreciated: Construction in Progress Total capital assets not depreciated October 1, 2018 $ 3,932,356 3,932,356 Additions $ 434,810 434,810 Deductions/ Reclassifications $ (2,436,847) (2,436,847) September 30, 2019 $ 1,930,319 1,930,319 Capital assets depreciated : Machinery and equipment Total capital assets depreciated Less accumulated depreciation: Machinery and equipment Total Accumulated depreciation Total Depreciable capital assets, net 82,808,319 82,808,319 (56,839,577) (56,839,577) 25,968,742 12,446,819 12,446,819 (8,154,418) (8,154,418) 4,292,401 (3,606,696) (3,606,696) 6,031,559 6,031,559 2,424,863 91,648,442 91,648,442 (58,962,436) (58,962,436) 32,686,006 Total Governmental Activities capital assets, net $ 29,901,098 $ 4,727,211 $ (11,984) $ 34,616,325 5. Long-Term Liabilities The Sheriff has entered into certain capital lease agreements under which the related equipment will become the property of the Sheriff’s Office when all terms of the lease agreements are met. Stated Present Value of Remaining Interest Payments as of September Rate 30, 2019 Governmental fund activities: Telephone system 4.82% $ 71,544 Total Capital Lease Obligations $ 71,544 23 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 5. Long-Term Liabilities (continued) Equipment and related accumulated depreciation under capital leases is as follows: Governmental Activities Equipment $ 276,128 Less: accumulated depreciated (246,054) Less: disposal – Net Value $ 30,074 As of September 30, 2019, capital lease annual amortization are as follows: Year ending September 30: Governmental Activities 2020 63,185 2021 10,531 Total minimum lease payments 73,716 Less: amount representing interest (2,172) Present value of remain payments $ 71,544 The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2018 Additions Reclassifications 2019 Capital lease agreements $ 129,754 $ – $ (58,210) $ 71,544 Compensated Absences 19,475,708 2,306,233 (1,286,768) $ 20,495,173 Total $ 19,605,462 $ 2,306,233 $ (1,344,978) $ 20,566,717 Of these liabilities, approximately $1,013,000 is expected to be paid during the fiscal year ending September 30, 2020. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 24 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2019, were as follows: Due From Due To General Fund $ 246,593 $ 1,001,076 Prisoner Welfare Fund 62,665 46,436 Internal Service Fund 1,000,000 – Federal Equitable Sharing 1,076 5,030 Other non-major special revenue funds – 182,198 Agency Funds – 75,594 Total $ 1,310,334 $ 1,310,334 Interfund receivables and payables generally represent recurring activities between funds. 7. Related Party Transactions The Board provided funding for the Sheriff for the year of $187,203,400. At September 30, 2019, the Sheriff had a payable due to the Board of $528,309 comprised of the following: General fund: Distributions of excess appropriations $ 470,009 Distribution of interest collected 14,981 FEMA DAC PAAP 22,496 Miscellaneous payables 1,289 Agency fund 19,534 Total $ 528,309 Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $326,650 at September 30, 2019. Agency Funds The Sheriff’s Office administers funds for the Collier County Sheriff’s Office Explorers Program. The program is funded by donations from employees through payroll deduction and donations from outside organizations. The program is designed for students to explore the opportunity to learn about and interact with law enforcement and to help stimulate further interest in the possibility of a law enforcement career. 25 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government. 26 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 8. Pension Plans (continued) Florida Retirement System Pension Plan (continued)  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class.  Renewed Membership Class –Members who retired from July 1, 1991 through June 30, 2010, and are reemployed in a regularly established position with a covered employer, upon vesting again, are eligible for an additional retirement benefit based on service as a renewed member. Retirees of the FRS Investment Plan who are employed on or after July 1, 2017 are eligible for renewed membership in the Investment Plan. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 27 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 8. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in- line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 28 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. 29 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 8. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2019, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff’s contributions made to the plans during the years ended September 30, 2019, 2018, and 2017 were $18,763,457, $17,500,632, and $16,967,099, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. 30 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). The liability, expense, deferred outflows of resources and deferred inflows of resources for OPEB, calculated in accordance with GASB Statement No. 75, are reported in the financial statements of the County. Plan Description The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for retirees who have six years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 29% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff’s employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff’s health insurance plan at the same group rate as for active employees. Participant Data At September 30, 2019, the Sheriff’s plan participation consisted of: Active employees 1,122 Inactive employees or beneficiaries currently receiving benefit payments 125 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay-as-you go basis. No trust or agency fund has been established for the plan. 31 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 9. Other Postemployment Benefits (continued) Total OPEB Liability The Sheriff’s OPEB liability of $21,786,049 was measured as of September 30, 2019, and was determined by an actuarial valuation as of October 1, 2018. The following table shows the changes in the Sheriff’s total OPEB liability for the year ended September 30, 2019. Total OPEB Liability Balance, as of October 1, 2018 $ 19,492,497 Changes: Service cost 485,365 Interest 631,825 Differences between expected and actual experience Changes in assumptions or other inputs 2,250,569 Employer contributions (1,074,207) Net changes 2,293,552 Balance, as of September 30, 2019 $ 21,786,049 The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff’s total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (1.0%) (2.0%) (3.0%) Total OPEB Liability $ 23,864,077 $ 21,786,049 $ 19,950,680 The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% point lower (5% decreasing to 4.0%) or 1% point higher (7% decreasing to 6%) than the current healthcare cost trend rates: Healthcare rate sensitivity 1% Decrease Discount Rate 1% Increase (5% decreasing (6% decreasing (7% decreasing to 4%) to 5%) to 6%) Total OPEB Liability $ 19,982,313 $ 21,786,049 $ 23,951,848 32 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 9. Other Postemployment Benefits (continued) Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2019, the Sheriff’s OPEB expense was $1,266,149. In addition the Sheriff reported deferred outflow of resources and deferred inflow of resources from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences between expected and actual experience $ 1,762,763 $ 60,888 Changes in assumptions $ 2,250,569 $ 773,597 Net difference between projected and actual earnings on OPEB plan investments Total $ 4,013,332 $ 834,485 Amounts reported as deferred inflows and outflows of resources are being amortized over periods of 7.17 and 7.09 years and will be recognized as follows: Deferred Outflows Deferred Inflows of Resources of Resources $ 603,128 $ 136,740 $ 603,128 $ 136,740 $ 603,128 $ 136,740 $ 603,128 $ 136,740 $ 603,128 $ 136,740 $ 997,692 $ 150,784 Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. 33 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 9. Other Postemployment Benefits (continued) Actuarial Methods and Assumptions (continued) Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Entry Age Actuarial The actuarial assumptions are: Discount rate 2.0% (Based on 20 year AA municipal bond rate) Healthcare cost trend rate 6% decreasing to 5% in 2021 and thereafter Salary increase None New employees None Mortality rates were based on the RP-2014 Mortality Fully Generational tables using Projection Scale MP-2017. The following changes have been made since the prior year valuation:  The discount rate was changed from 3.25% to 2.0% 34 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 10. Self-Insurance Program The Sheriff’s Office participates in the Statewide Florida Sheriff’s Self-Insurance Fund (the Fund) for its professional liability insurance. The Fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers’ compensation coverage. The Florida Sheriffs Workers’ Compensation Self Insurance Program is a self-insurance program providing coverage for the first $500,000 of every claim. Reinsurance is purchased by the Program to cover claims exceeding $500,000 (or $350,000 where applicable) up to $15,000,000. Reinsurance coverage up to $20,000,000 any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third-party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self-funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In FY19 there were two covered individuals who had higher deductible amounts because of a history of high claims. Both individuals had deductibles of $350,000. Specific claim excess coverage for these individuals was for claims exceeding $350,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriff’s Office uses a Third-Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2019 and 2018 are as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2018 $2,660,000 $24,067,975 ($23,843,975) $2,884,000 2019 $2,884,000 $26,143,340 ($26,081,340) $2,946,000 35 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2019 11. Commitments and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. 36 Collier County, Florida Sheriff Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios September 30, 2019 2019 2018 2017 Total OPEB Liability Service cost $ 485,365 $ 520,082 $ 491,420 Interest 631,825 503,525 502,621 Differences between expected and actual experience – 2,048,462 (83,607) Changes in assumptions or other inputs 2,250,569 (898,977) – Employer contributions (1,074,207) (941,061) (871,353) Net change in total OPEB Liability 2,293,552 1,232,031 39,081 Total OPEB Liability, beginning 19,492,497 18,260,466 18,221,385 Total OPEB Liability, ending $ 21,786,049 $ 19,492,497 $ 18,260,466 Covered-employee payroll $ 81,378,975 $ 80,473,682 $ 91,192,818 Total OPEB Liability as a percentage of covered-employee payroll 26.77% 24.22% 20.02% Notes to Schedule Changes in Assumptions: Change in the discount rate of 3.25% as of September 30, 2018 to 2.0% as of September 30, 2019. There are no assets held in a trust for payment of OPEB benefits. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is completed, the County will present information for only those years for which information is available. 37 Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position – Agency Funds September 30, 2019 Assets: Cash and cash equivalents Due from individuals and businesses Total assets Civil Trust $ 33,354 – $ 33,354 Evidence Trust $ 201,353 – $ 201,353 Flexible Spending $ 222,372 – $ 222,372 Inmate Trust $ 137,617 9,646 $ 147,263 Explorers $ 19,180 – $ 19,180 $ $ Total Agency Funds 613,876 9,646 623,522 Liabilities: Due to other funds Due to Collier County, Florida Board of County Commissioners Due to individuals and businesses Total liabilities $ – 9,735 23,619 $ 33,354 $ – – 201,353 $ 201,353 $ – – 222,372 $ 222,372 $ 75,594 9,799 61,870 $ 147,263 $ – – 19,180 $ 19,180 $ $ 75,594 19,534 528,394 623,522 38 Collier County, Florida Sheriff Statement of Changes in Assets and Liabilities – Agency Funds September 30, 2019 October 1, September 30, 2017 Additions Deletions 2018 Assets: Cash and cash equivalents $ 634,937 $ 613,876 $ (634,937) $ 613,876 Due from individuals and businesses 26,778 9,646 (26,778) 9,646 Total assets $ 661,715 $ 623,522 $ (661,715) $ 623,522 Liabilities:. Due to other funds $ 73,239 $ 75,594 $ (73,239) $ 75,594 Due to Collier County, Florida Board of County Commissioners 20,777 19,534 (20,777) 19,534 Due to individuals and businesses 567,699 528,394 (567,699) 528,394 Total liabilities $ 661,715 $ 623,522 $ (661,715) $ 623,522 39 @ Amemberof Nexia International CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements, and have issued our report thereon dated February 11, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff’s internal control. Accordingly, we do not express an opinion on the effectiveness of Sheriff’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 40 Honorable Kevin Rambosk Sheriff Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida February 11, 2020 41 @ Amemberof Nexia lnternatlonal CliftonlarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2019 and have issued our report thereon dated February 11, 2020. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and our Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 11, 2020, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. 42 Honorable Kevin Rambosk Sheriff Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 11, 2020 43 @ Amemberof Nexia International CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff’s (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2019. Management of the Sheriff is responsible for the Sheriff’s compliance with the specified requirements. Our responsibility is to express an opinion on the Sheriff's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Sheriff complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Sheriff complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriff’s compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2019. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 11, 2020 44 @ Amemberof Nexia lnternatlonal CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES Honorable Kevin Rambosk Sheriff Collier County, Florida We have performed the procedures enumerated below, which were agreed to by management of the Collier County, Florida Sheriff (Sheriff) on the Sheriff’s policies and procedures as defined by the Sheriff over its investigative funds for the year ended September 30, 2019. The Sheriff’s management is responsible for the Sheriff’s compliance with those procedures and policies. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are summarized as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2019 (the population sampled included transactions from October 1, 2018 through September 30, 2019), and performed the following procedures with respect to the Sheriff’s policies and procedures over investigative funds: 1. We obtained the “Disbursement for Investigation” form and observed the form was properly completed and authorized by appropriate personnel. No exceptions were noted. 2. We obtained the “Purchase of Evidence/Information Voucher” and observed the form was properly completed to reflect the expenses incurred within the investigation procedures, the investigative expenditures were properly supported, and the use of funds was for authorized purposes. No exceptions were noted. 3. We observed the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed the amount deposited agreed to the amount returned per the “Receipt for Funds Received” form detail. No exceptions were noted. 45 Honorable Kevin Rambosk Sheriff This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the policies and procedures as defined by the Sheriff over its investigative funds. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the management of the Sheriff and is not intended to be, and should not be, used by anyone other than this specified party. CliftonLarsonAllen LLP Naples, Florida February 11, 2020 46 Collier County, FloridaSupervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2019 CLAconnect.com WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2019 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual – General Fund ..................................................................................................................5 Notes to Financial Statements..........................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards..............................................20 Management Letter ........................................................................................................................22 Independent Accountants’ Report ..................................................................................................24 @ Amemberof Nexia International CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Honorable Jennifer J. Edwards Supervisor of Elections Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2019, and the respective changes in financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2019, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 27, 2020 on our consideration of the Supervisor’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Supervisor’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisor’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 27, 2020 2 Collier County, Florida Supervisor of Elections Balance Sheet – Governmental Funds September 30, 2019 Assets Cash and cash equivalents Accounts receivable Due from other funds Total assets General $ 229,731 242 - $ 229,973 Grant Special Revenue $ 39,444 - 53 $ 39,497 $ $ Total 269,175 242 53 269,470 Liabilities and fund balance Liabilities: Accounts payable Accrued liabilities Due to other funds Due to Collier County, Florida Board of County Commissioners Total liabilities $ 15,238 102,306 53 112,376 229,973 $ - - - - - $ 15,238 102,306 53 112,376 229,973 Fund balances: Restricted Total fund balances Total liabilities and fund balances - - $ 229,973 39,497 39,497 $ 39,497 $ 39,497 39,497 269,470 See accompanying Notes to Financial Statements 3 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2019 Grant Special General Revenue Revenues: Intergovernmental $ -$ 103,163 Interest -775 Total revenues -103,938 Expenditures: General government: Personal services 2,118,703 - Operating 1,562,405 201,162 Capital outlay 107,337 127,286 Total expenditures 3,788,445 328,448 Excess (deficiency) of expenditures over revenues (3,788,445) (224,510) Other financing sources (uses): Transfers in: General Fund -5,119 Collier County, Florida Board of County Commissioners appropriations 3,893,000 - Transfers out: Special revenue fund (5,119) - Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (99,436) - Total other financing sources (uses) 3,788,445 5,119 Net change in fund balances -(219,391) Fund balances – beginning of the year -258,888 Fund balances – end of the year $ -$ 39,497 Total $ 103,163 775 103,938 2,118,703 1,763,567 234,623 4,116,893 (4,012,955) 5,119 3,893,000 (5,119) (99,436) 3,793,564 (219,391) 258,888 $ 39,497 See accompanying Notes to Financial Statements 4 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2019 Variance With Final Budget Budget Original Final Actual Positive (Negative) Revenues $ -$ -$ -$ - Expenditures: General government: Personal services 2,351,800 2,212,800 2,118,703 94,097 Operating 1,493,200 1,567,742 1,562,405 5,337 Capital outlay 48,000 107,339 107,337 2 Total expenditures 3,893,000 3,887,881 3,788,445 99,436 Excess (deficiency)of expenditures over revenues (3,893,000) (3,887,881) (3,788,445) 99,436 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 3,893,000 3,893,000 3,893,000 - Transfers out: Special Revenue Fund -(5,119) (5,119) - Distribution of excess appropriations: Collier County, Florida Board of County Commissioners --(99,436) (99,436) Total other financing sources (uses) 3,893,000 3,887,881 3,788,445 (99,436) Net change in fund balance ---- Fund balance – beginning of the year ---- Fund balance – end of the year $ -$ -$ -$ - See accompanying Notes to Financial Statements 5 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections’ budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor’s office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Supervisor is considered to be financially accountable. The general operations of the Supervisor are funded by appropriations from the Collier County, Florida Board of County Commissioners (Board), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Supervisor’s general fund. The special revenue fund of the Supervisor is not budgeted and is governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. 6 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds: General Fund – The general fund is used to account for the general operations of the Supervisor, and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund – The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. 7 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. 8 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non-spendable fund balances as of September 30, 2019. Spendable fund balances are classified based on a hierarchy of the Supervisor’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor’s fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements, and have been presented in the fund financial statements in accordance with GASB Statement No. 54. 9 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor’s annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor’s total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-e n d . Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor does not budget for the grant special revenue fund as it is funded by state grants and is governed by those documents. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 3. Cash and Cash Equivalents At September 30, 2019, the carrying value of the Supervisor’s cash and cash equivalents was as follows: Type Carrying Value Credit Rating Cash on hand Demand deposits $ 200 268,975 N/A N/A Total cash and cash equivalents $ 269,175 10 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 3. Cash and Cash Equivalents (continued) Custodial Credit Risk At September 30, 2019, the Supervisor’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. 11 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the general fund of the Supervisor and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2018 Additions Deductions 2019 Machinery and equipment $ 694,389 $ 234,623 $ (65,468) $ 863,544 Less accumulated depreciation (532,419) (93,193) 63,248 (562,364) Machinery and equipment, net $ 161,970 $ 141,430 $ (2,220) $ 301,180 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2018 Additions Deductions 2019 Accrued Compensated Absences $ 206,436 $ 115,445 $ (116,146) $ 205,735 Of these liabilities, approximately $119,326 is expected to be paid during the fiscal year ending September 30, 2020, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. 12 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost- sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Supervisor are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. 13 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 14 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 15 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Supervisor employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. 16 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2019, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Supervisor. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor’s contributions made to the plans during the years ended September 30, 2019, 2018 and 2017, were $137,154 $130,124 and $115,546 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. 17 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 7. Related-Party Transactions For the year ended September 30, 2019, the Board provided funding for the Supervisor that amounted to $3,893,000. At September 30, 2019, the Supervisor had a payable due to the Board of $102,306 comprised as follows: Distribution of excess appropriations $ 99,436 Distribution of interest earnings 12,419 Amounts due for various services 521 Total due to Board of County Commissioners $ 112,376 8. Risk Management Collier County, Florida (County) is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self- insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County’s self-insurance program. During the year ended September 30, 2019, the Supervisor was charged $274,246 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third-party carriers in any of the last three years. 18 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2019 8. Risk Management (continued) The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Supervisor participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor’s grants. Transfers were required in the amount of $5,119 for the year ending September 30, 2019. 19 @ Amemberof Nexia lntematlOnal CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements, and have issued our report thereon dated January 27, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 20 Honorable Jennifer J. Edwards Supervisor of Elections Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 27, 2020 21 CliftonlarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the fiscal year ended September 30, 2019 and have issued our report thereon dated January 27, 2020. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 27, 2020, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. 22 Honorable Jennifer J. Edwards Supervisor of Elections Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 27, 2020 23 @ Amemberof Nexia International CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined the Collier County, Florida Supervisor of Elections’ (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2019. Management of the Supervisor is responsible for the Supervisor’s compliance with the specified requirements. Our responsibility is to express an opinion on the Supervisor’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Supervisor complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Supervisor complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor’s compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2019. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 27, 2020 24 Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Years Ended September 30, 2019 and 2018 CLAconnect.com WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING Collier County, Florida Tax Collector Financial Statements and Other Reports Years Ended September 30, 2019 and 2018 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheets – General Fund ....................................................................................................3 Statements of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – General Fund .............................................................................5 Statements of Fiduciary Net Position – Agency Funds ................................................................6 Notes to Financial Statements.......................................................................................................7 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................24 Management Letter ........................................................................................................................26 Independent Accountants’ Report ..................................................................................................28 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the years ended September 30, 2019 and 2018, and the related notes to the financial statements, which collectively comprise the Tax Collector’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Honorable Larry H. Ray Tax Collector Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2019 and 2018, and the respective changes in financial position for the years then ended and the budgetary comparison for the general fund thereof for the year ended September 30, 2019, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2019 and 2018, and the changes in its financial position for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2019 on our consideration of the Tax Collector’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Tax Collector’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida December 17, 2019 2 Collier County, Florida Tax Collector Balance Sheets – General Fund September 30, 2019 2018 Assets Cash and cash equivalents $ 10,159,562 $ 9,349,681 Due from other funds 89,524 100,594 Prepaid rent 40,116 29,608 Prepaid expense 10,301 3,606 Security deposit 14,868 4,628 Total assets $ 10,314,371 $ 9,488,117 Liabilities and fund balance Liabilities: Accounts payable $ 12,085 $ 154,028 Due to Collier County, Florida Board of County Commissioners 8,781,057 8,175,198 Due to other governmental agencies 1,521,229 1,138,651 Other current liabilities -20,240 Total liabilities 10,314,371 9,488,117 Fund balance -- Total liabilities and fund balance $ 10,314,371 $ 9,488,117 See accompanying Notes to Financial Statements. 3 Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2019 2018 Revenues: Commissions and fees $ 23,579,549 $ 22,625,793 Miscellaneous 384,789 249,076 Total revenues 23,964,338 22,874,869 Expenditures: General government: Personal services 10,975,231 10,684,424 Operating 2,323,299 2,252,976 Capital outlay 363,522 623,620 Total expenditures 13,662,052 13,561,020 Excess of revenues over expenditures 10,302,286 9,313,849 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (8,781,057) (8,175,198) Distribution of excess commissions and fees to other governmental agencies (1,521,229) (1,138,651) Total other financing uses (10,302,286) (9,313,849) Net change in fund balance -- Fund balance, beginning of year -- Fund balance, end of year $ -$ - See accompanying Notes to Financial Statements. 4 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual General Fund Year Ended September 30, 2019 Variance With Final Budget Budget Positive Revenues: Original Final Actual (Negative) Commissions and fees Miscellaneous Total revenues $ 23,377,620 233,500 23,611,120 $ 23,377,620 233,500 23,611,120 $23,579,549 384,789 23,964,338 $ 201,929 151,289 353,218 Expenditures: General government: Personal services Operating Capital outlay Total expenditures 11,788,152 2,743,210 424,247 14,955,609 11,788,152 2,743,210 424,247 14,955,609 10,975,231 2,323,299 363,522 13,662,052 812,921 419,911 60,725 1,293,557 Balance of revenues over expenditures 8,655,511 8,655,511 10,302,286 1,646,775 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions (7,377,444) (7,377,444) (8,781,057) (1,403,613) and fees to other governmental agencies Total other financing uses (1,278,067) (8,655,511) (1,278,067) (8,655,511) (1,521,229) (10,302,286) (243,162) (1,646,775) Net change in fund balance Fund balance, beginning of year Fund balance, end of year $ - - -$ - - -$ - - -$ - - - See accompanying Notes to Financial Statements. 5 Collier County, Florida Tax Collector Statements of Fiduciary Net Position Agency Funds Assets Cash and cash equivalents Accounts receivable Total assets Liabilities Due to other funds Due to Collier County, Florida Board of County Commissioners Due to other governmental agencies Due to individuals and businesses Total liabilities September 30, 2019 2018 $ $ 6,835,471 29,549 6,865,020 $ $ 6,354,628 32,959 6,387,587 $ 89,524 $ 100,594 $ 1,315,817 5,276,092 183,587 6,865,020 $ 1,139,571 5,077,456 69,966 6,387,587 See accompanying Notes to Financial Statements. 6 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector’s operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector’s office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector’s financial statements include only the funds of the Tax Collector’s office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Tax Collector. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 7 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheets. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector’s only governmental fund is the general fund. The general fund is used to account for the general operations of the Tax Collector and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Tax Collector’s revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the “susceptible to accrual” criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. 8 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Agency funds – Fiduciary funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use-transfer out in the accompanying financial statements. Compensated Absences All full-time employees of the Tax Collector are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. 9 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Florida Statutes, Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. Chapter 197, Florida Statutes, governs property tax collections as follows: Current Taxes All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1% for payment in February. Unpaid Taxes – Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. The Tax Collector must receive payment before the certificates are delivered. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tax Deeds Two years after the purchase of a tax certificate the owner may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. 10 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these financial statements requires management of the Tax Collector to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector’s annual budget. The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector’s total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 11 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 3. Cash At September 30, 2019 and 2018, the carrying value of the Tax Collector’s cash was as follows: 2019 2018 Type Carrying Value Carrying Value Cash on hand Demand deposits Total cash and cash equivalents $ 33,639 16,961,394 $ 16,995,033 $ 35,897 15,668,412 $ 15,704,309 Such amounts are reported as $10,159,562 and $6,835,471 for 2019 and $9,349,681 and $6,354,628 for 2018 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2019, the Tax Collector’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Tax Collector’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. 12 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 3. Cash (continued) Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Tax Collector are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2019: October 1, Deletions/ September 30, 2018 Additions Reclassifications 2019 Capital assets not depreciated: Construction in progress $ 240,774 $ 168,295 $ (390,869) $ 18,200 Total assets not depreciated 240,774 168,295 (390,869) 18,200 Infrastructure 11,735 --11,735 Improvements other than buildings 109,084 -(3,991) 105,093 Machinery and equipment 1,899,188 195,227 (182,060) 1,912,355 Total capital assets 2,260,781 363,522 (576,920) 2,047,383 Less accumulated depreciation: (1,784,344) (98,019) 186,051 (1,696,312) Total capital assets, net $ 476,437 $ 265,503 $ (390,869) $ 351,071 13 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2018: October 1, Deletions/ September 30, 2017 Additions Reclassifications 2018 Capital assets not depreciated: Construction in progress $ 1,698,143 $ 566,454 $ (2,023,823) $ 240,774 Total assets not depreciated 1,698,143 566,454 (2,023,823) 240,774 Infrastructure 11,735 --11,735 Improvements other than buildings 109,084 --109,084 Machinery and equipment 1,884,111 57,166 (42,089) 1,899,188 Total capital assets 3,703,073 623,620 (2,065,912) 2,260,781 Less accumulated depreciation: (1,713,395) (106,287) 35,338 (1,784,344) Total capital assets, net $ 1,989,678 $ 517,333 $ (2,030,574) $ 476,437 During the fiscal years ended September 30, 2019 and 2018, costs related to completed leasehold improvements totaling $390,869 and $2,023,823, respectively, were transferred to Collier County, Florida. 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2018 Increase Decrease 2019 Accrued compensated absences $ 1,151,014 $ 689,596 $ (562,470) $ 1,278,140 October 1, September 30, 2017 Increase Decrease 2018 Accrued compensated absences $ 1,232,879 $ 633,595 $ (715,460) $ 1,151,014 14 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 5. Long-Term Liabilities (Continued) Of these liabilities, approximately $724,100 is expected to be paid during the fiscal year ending September 30, 2020, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Tax Collector are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). 15 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. 16 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. 17 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. 18 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 6. Pension Plans (continued) FRS Investment Plan (continued) As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2019, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. 19 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 6. Pension Plans (continued) After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector’s contributions made to the plans during the years ended September 30, 2019, 2018, and 2017 were $768,338, $716,867, and $655,667, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Benefits (OPEB) In accordance with Section 112.0801, Florida Statutes, the Tax Collector participates with Collier County in offering retiring employees the opportunity to continue participation in the County’s health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 20 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 8. Related Party Transactions During the fiscal years ended September 30, 2019 and 2018, the Board paid commissions and fees to the Tax Collector that amounted to $17,128,612 and $16,465,146, respectively. At September 30, 2019 and 2018, the Tax Collector had a payable due to the Board of $10,096,874 and $9,314,769, respectively, comprised as follows: 2019 2018 Distribution of unused commissions and fees $ 8,781,057 $ 8,175,198 Agency funds due to the Board 1,315,817 1,139,571 Total $ 10,096,874 $ 9,314,769 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Tax Collector participates in the County’s self-insurance program. During the years ended September 30, 2019 and 2018, the Tax Collector was charged $3,068,241 and $2,938,265, respectively, by the County for participation in the risk management program. 21 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 9. Risk Management (continued) The County provides coverage for up to $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third-party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector has noncancelable operating leases for certain office facilities that were utilized solely by the Tax Collector for fiscal year 2019. One of the current leases will expire in February of 2020 and be replaced by a new lease with a 10-year initial term and includes options for two 5-year renewals with an annual escalation clause of 2.5% annually. A second lease agreement expires July 31, 2021 with no existing renewal terms at this time. 22 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2019 and 2018 10. Commitments and Contingencies (continued) Leases (continued) The following is a schedule of future minimum lease payments under the operating leases: Fiscal year ending September 30: 2020 $ 284,045 2021 242,887 2022 98,490 2023 100,952 2024 103,483 Rental expense for all operating leases in the aggregate was $359,344 and $352,553 for the years ended September 30, 2019 and 2018, respectively. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2019 or 2018. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector. 23 @ Amemberof Nexia International CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Larry H. Ray Tax Collector Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the Tax Collector’s basic financial statements, and have issued our report thereon dated December 17, 2019. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 24 Honorable Larry H. Ray Tax Collector Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Tax Collector’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida December 17, 2019 25 @ Amemberof Nexia International CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector) as of and for the year ended September 30, 2019, and have issued our report thereon dated December 17, 2019. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated December 17, 2019 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. 26 Honorable Larry H. Ray Tax Collector Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 17, 2019 27 @ Amemberof Nexia International CliftonlarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Larry H. Ray Tax Collector Collier County, Florida We have examined the Collier County Tax Collector, Collier County, Florida’s (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2019. Management of the Tax Collector is responsible for the Tax Collector’s compliance with the specified requirements. Our responsibility is to express an opinion on the Tax Collector’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Tax Collector complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Tax Collector complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector’s compliance with specified requirements. In our opinion, the Tax Collector complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2019. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 17, 2019 28 THIS PAGE INTENTIONALLY LEFT BLANK WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTINGInvestment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC‐registered investment advisor©2019 CliftonLarsonAllen LLPCollier County, FloridaPresentation to the Board of County CommissionersMarch 10, 2020 ©2019 CliftonLarsonAllen LLPCreate OpportunitiesPresentation Agenda2• Audit and Attestation Services Performed•Reports to be Delivered•Results of Procedures• Required Communications• Conclusion ©2019 CliftonLarsonAllen LLPCreate OpportunitiesAudit and Attestation Services Performed• Financial statement audit for the year ended September 30, 2019, in accordance with Government Audit Standards• Limited procedures applied to Required Supplementary InformationFinancial Statements•Federal Single Audit in accordance with the Uniform GuidanceFederal ComplianceFederal Compliance• State Single Audit in accordance with Section 215.97, Florida Statutesand Chapter 10.550, Rules of the Auditor General•Examination of compliance with applicable Florida Statutes for investments and E911State ComplianceState Compliance3 ©2019 CliftonLarsonAllen LLPCreate OpportunitiesReports to be DeliveredIndependent Auditors’ Report Independent Auditors’ Report on Internal Control Over Financial Reporting and On Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (Yellow Book Report)Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General of the State of Florida(Single Audit Report)4 ©2019 CliftonLarsonAllen LLPCreate OpportunitiesReports to be Delivered (continued)Management letter as required by Chapter 10.550 Rules of the Auditor GeneralIndependent Accountants’ Report on Compliance with specific Florida Statutes as required by Chapter 10.550 Rules of the Auditor GeneralIndependent Accountants’ Report on Compliance with specific Florida Statutes as required by Chapter 10.550 Rules of the Auditor GeneralCommunication to Governance5 ©2019 CliftonLarsonAllen LLPCreate OpportunitiesResults of ProceduresIndependent Auditors’ Report•Unmodified OpinionIndependent Auditors’ Report on Internal Control•No Material Weaknesses reportedSingle Audit Report ‐Federal Program and State Projects•Unmodified Opinion on Compliance, however Other Matters disclosed•Significant Deficiency in Internal Control over Compliance reported Management Letter•No suggestions for improvementIndependent Accountants’ Report•Unmodified attestation opinion on compliance6 ©2019 CliftonLarsonAllen LLPCreate OpportunitiesRequired Communication to GovernanceSignificant estimates within the financial statements•Self‐insurance claims liability•Pension liability•Postemployment benefits other than pension liability•Allowance for doubtful accounts –EMS•Depreciation•Landfill postclosure liabilityNo difficulties encountered in dealing with managementNo disagreements with management7 ©2019 CliftonLarsonAllen LLPWEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTINGInvestment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC‐registered investment advisor8ConclusionWe appreciate everyone’s cooperation throughout the audit. ©2019 CliftonLarsonAllen LLPCLAconnect.comMartin A. Redovan, CPAPrincipalMartin.Redovan@CLAconnect.comChristopher Kessler, CPAPrincipalChris.Kessler@CLAconnect.com9