IFCD District Audit FY End 09/30/2019 ` �OKAL4
Immokalee Fire Control District
E I 502 New Market Road East, lmmokalee, FL. 34142
veMari ..c Michael J. Choate, Fire Chief
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March 25, 2020
Mr. Derek Johnson, General Accounting Manager
Clerk of the Circuit Court, Finance Department
3299 Tamiami Trail East, #403
Naples, FL 34112
Dear Mr. Johnson:
Enclosed please a copy of the District's audit for the fiscal year ended 9-30-19.
Please contact me if you have any questions or would like to receive an electronic copy
of the audit.
Very truly yours,
Ade/ ,24,f.o..or,te.
BECKY BRONSDON
Chief Financial Officer
Enclosures
Administration(239)657-2111 Operations(239)657-8587 Fire Prevention(239)597-9227
Fax(239)657-9489
IMMOKALEE FIRE CONTROL DISTRICT
BASIC FINANCIAL STATEMENTS
[ ] TOGETHER WITH ADDITIONAL REPORTS
L ] YEAR ENDED
SEPTEMBER 30,2019
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TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT 1-3
MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-vii
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:
Statement of Net Position 4
Statement of Activities 5
FUND FINANCIAL STATEMENTS:
Governmental Funds:
J Balance Sheet 6
J Reconciliation of the Balance Sheet-Governmental Funds
to the Statement of Net Position 7
J Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds 8
Reconciliation of the Statement of Revenues,Expenditures and Changes
r in Fund Balance-Governmental Funds to the Statement of Activities 9
NOTES TO THE FINANCIAL STATEMENTS 10-51
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS (General and Special Revenue Funds)
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- •
General Fund-Summary Statement 52
Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual -
General Fund-Detailed Statement 53 55
Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual-
Impact Fee Fund -Summary Statement ,56
OTt IER REQUIRED SUPPLEMENTARY INFORMATION
Schedule of District Proportionate Share of the Net Pension Liability-Florida Retirement
System(FRS) Pension Plan 57
Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan 57
Schedule of District Proportionate Share of the Net Pension Liability- I lcalth Insurance
Subsidy(111S)Pension Plan 58
Schedule of District Contributions I lcalth Insurance Subsidy(111S)Pension Plan 58
r ? Notes to the Required Supplementary Information 59-60
Schedule of Changes in the Net 0131 13 Liability and Related Ratios,GASB No. 75
and Related Notes to the Schedule 61
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Basic Financial Statements
Performed in Accordance with Government Auditiiv Standards 62-63
Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes 64
Independent Auditor's Report to Management 65-67
Manapcment's Response to Independent Auditor's Report to Management Fxhibit
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(� Affiliations
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Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Company,pang, 'A ['mate Companies Precnce Section
lav D,cuum
Certified Public Accountants& Consultants
INDEPENDENT AUDITOR'S REPORT
111 Board of Commissioners
Immokalee Fire Control District
502 East New Market Road
Immokalee,Florida 34142
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of Immokalee
Fire Control District(the"District")as of and for the year ended September 30,2019,and the related notes to the
financial statements,which collectively comprise the District's basic financial statements as listed in the table of contents
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United Slates of America;this includes the design,implementation,and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement,whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial
statements of Florida Retirement System Pension Plan(FRS)or Health Insurance Subsidy Pension Plan(111S)as of and
for the year ended June 30,2019. The District is required to record its proportionate share of the FRS and 1115 liability in
the District's government-wide financial statements as of September 30,2019,and for the year then ended.Those financial
statements were audited by other auditors whose report thereon has been furnished to us,and our opinion,insofar as it
relates to the amounts included for Immokalee Fire Control District's government-wide financial statements,is based on
the report of the other auditors.We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in Government Auditiiv Standards,
® issued by the Comptroller General of the United States of America. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements arc free from material missUncmcnt
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
® statements Ile procedures selected depend on the auditor's judgment,including the assessment of the risks of material
misstatement of the financial statements,whether due to fraud or error. In making those risk assessments,the auditor
® considers internal control relevant to the District's preparation and lair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the
® effectiveness of the District's internal control. Accordingly,we express no such opinion, An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management,as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient incl appaopriale to provide a basis lir our audit opinion.
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Opinion
In out opinion,based on our audit and the report of the other auchtuts,the financial statement clia red to above pre cut
fairly,in all material respects,the respective financial position of the governmental activities.and each major find of
Immokalee Dire Control Dista icl as of September 30,2019,and the respective changes in financial position,for the peat
nom ended iii accoictttncc with accounting principles generally accepted in the I!nited Stales of America
INTEGRITY .. .. . SERVICE EXPERIENCE
111 12621 Wolf! Rust Line, Building 55 • 1+art Nlycis, I 133907 • Phone. (239) 333-2090 • Fax (239) 333-2097
Board of Commissioners
Immokalee Fire Control District
Page 2
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis on pages i-vii,Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement
System(FRS)Pension Plan,Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan,Schedule
of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan,Schedule of
District Contributions-Health Insurance Subsidy(HIS)Pension Plan,Notes to Required Supplementary Information and
Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No.75 and Related Notes to the Schedule,as
111 listed in the table of contents,be presented to supplement the basic financial statements. Such information,although not a
part of the basic financial statements,is required by the Governmental Accounting Standards Board which considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate operational,economic,or
historical context. We have applied certain limited procedures to the required supplementary information-management's
® discussion and analysis(MD&A),Schedule of the District's Proportionate Share of the Net Pension Liability-Florida
Retirement System(FRS)Pension Plan,Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan,
Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan,
Schedule of District Contributions-Health Insurance Subsidy(MIS)Pension Plan,Notes to Required Supplementary
$ Information and Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No.75 and Related Notes to the
Schedule,as listed in the table of contents,in accordance with auditing standards generally accepted in the United Slates of
America,which consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries,the basic financial statements,and other
knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any
assurance on the required supplementary information-management's discussion and analysis(MD&A), Schedule of the
a District's Proportionate Share of the Net Pension Liability-Florida Retirement System(FRS)Pension Plan,Schedule of
District Contributions-Florida Retirement System(FRS)Pension Plan,Schedule of the District's Proportionate Share of the
Net Pension Liability-l lealth Insurance Subsidy(I11S)Pension Plan,Schedule of District Contributions-1-lealth Insurance
Subsidy(MIS)Pension Plan,Notes to Required Supplementary Information and Schedule of Changes in the Net OPER
a Liability and Related Ratios,GASB No.75 and Related Notes to the Schedule,as listed in the table of contents,because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise
111 Immokalee Fire Control District's basic financial statements. The required supplementary information other than MD&A
-budgetary comparison information is presented for purposes of additional analysis and is not a required part ol'the basic
financial statements.7 he required supplementary information other than MD&A-budgetary comparison information is
the responsibility of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic 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 required supplementary information other than MD&A-
budgetary comparison information is fairly stated,in all material respects, in relation to the basic financial statements as a
e whole.
® Other!,farnuhtina
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the
District's basic financial statements. The Exhibit-Management's Response to Independent Auditor's Repoli to
■ Management is not a required part of the basic financial statements but is required by Government Amitt in' ',Latch d g.
Such information has not been subjected to the auditing procedures applied in the audit()I'the basic tmnaiieiitI statements
1111 and,accordingly,We do not expie%s an opinion or provide any as,uance on it.
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Board of Commissioners
Immokalee Fire Control District
Page 3
Other Reporting Required by Section 218.415,Florida Statutes
In accordance with Section 218.415,Florida Statutes,we have also issued a report dated February 3,2020 on our
consideration of Immokalee Fire Control District's compliance with provisions of Section 218.415,Florida Statutes. The
purpose of that report is to describe the scope of our testing of compliance and the results of that testing,and to provide
an opinion on compliance with the aforementioned Statute. That report is an integral part of an audit performed in
r accordance with Sections 218.39 and 218.415,Florida Statutes in considering Immokalee Fire Control District's compliance
with Section 218.415,Florida Statutes.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated February 3,2020 on our
consideration of the District's internal control over financial reporting and on our tests of its compliance with certain
rL. I provisions of laws,regulations,contract and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not
to provide an opinion on nternal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering Immokalee Fire Control District's
internal control over financial reporting and compliance.
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614,,atatit) 4/1
TUSCAN&COMPANY,P.A.
Fort Myers,Florida
February 3,2020
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MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
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Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2019
General Information
The Immokalee Fire Control District's (the "District") discussion and analysis is designed
to assist the reader in focusing on significant financial issues, provide an overview of the
District's financial activity, identify changes in the District's financial ability to address
the next and subsequent fiscal years challenges, identify any material deviations from
the approved budget, and identify individual fund issues and concerns.
Management's Discussion and Analysis (MD&A) is intended to serve as an introduction
to the District's basic financial statements which are composed of 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial
L I statements. It is designed to focus on the current fiscal year's activities, resulting
changes and currently known facts, and should be read in conjunction with the District's
r financial statements.
Fiscal Year Highlights
As expected, the District's financial position decreased during the fiscal year ended
September 30, 2019 by $762,509 substantially due to recording the increase in pension
costs of$418,374 and the cost of OPEB of $23,194 and the recording of the sale and
lease back of three (3) staff vehicles of$87,493.
As expected, the District's financial position decreased during the fiscal year ended
September 30, 2018 by $936,514 substantially due to recording the increase in pension
costs of$454,106 and the cost of OPEB of$35,299.
Effective September 30, 2015, the District adopted the provisions of Governmental
El Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for
Pensions (Statement No. 68). The implementation of this standard required the District
[11 to annually report its actuarially determined net pension liability in the government-wide
r , financial statements. It also requires additional disclosure in the notes related to the
financial statements.
Effective September 30, 2018, the District adopted the provisions of Governmental
Accounting Standards Board Statement No. 75 "Accounting and Financial Reporting for
Post Employment Benefits Other Than Pensions (OPEB)"(Statement No. 75). This
accounting standard requires the District to report its actuarially determined net OPEB
liability of $507,058 in the government-wide financial statements of the District as of
September 30 2018. It also required the beginning net asset balance to be restated.
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2019
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the District's finances in a manner similar to a private-sector business. The
statements combine and consolidate governmental fund short-term spendable
resources with capital assets and long-term obligations.
The statements include a Statement of Net Position and a Statement of Activities that
are designed to provide consolidated financial information about governmental activities
t of the District presented on the accrual basis of accounting.
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The Statement of Net Position presents information on all of the District's assets and
liabilities, with the difference between the two reported as net position. Over time, the
' increases or decreases to net position may serve as a useful indicator of whether the
financial position of the District is improving or deteriorating.
The government-wide financial statements can be found on pages 4 and 5 of this report
at September 30:
2018 2019
Assets:
Cash and Other Current Assets $ 6,947,553 $7,784,493
Capital Assets, Net of Depreciation 1,586,912 2,298,452
Total Assets 8,534,465 10,082,945
Deferred Outflows of Resources 2,420,267 2,021,392
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Liabilities:
E } Accounts Payable and Other Current Liabilities 54,394 39,486
E 3 Unearned Revenue-impact fees 4,993,602 5,743,342
Long Term Liabilities 5 333 528 6 516 317
Total Liabilities 10 381 524 12.299.145
Deferred Inflows of Resources 365 420 359 913
Net Position:
Net Investment in Capital Assets 1,497,055 1,464,364
Unrestricted Net Assets (Deficit) 1 289,2671 .2,019,085}
Total Net Position $ _207 78 $ 5 4 2
The Statement of Activities presents information showing how the District's net position
changed during the fiscal years The focus is on both gross and net costs of various
activities that are supported by the District's ad valorem tax and other revenues, Thus,
Immokalee Fire Control District
I Management's Discussion and Analysis
September 30, 2019
Government-wide Financial Statements (Continued)
revenues and expenses are reported in this Statement for some items that will only
result in cash flows in a future fiscal period (e.g. uncollected taxes earned). This
Statement is intended to summarize and simplify the user's analysis of the cost of
various governmental services. An increase or decrease in net position may be an
indication of whether the District's financial health is improving or deteriorating.
The following reflects the revenues, expenses and changes in financial position for the
years ended September 30:
2018 2019
Revenues:
Ad Valorem Taxes $ 3,423,086 $ 3,920,526
'- ' Interest Income 45,141 149,070
Grant Revenue 331,264 6,012
r Impact Fees 109,670 252,619
Other Revenue 265,530 74,301
Total Revenue 4,174,691 4,402,528
Expenses
Public Safety Expenses 5,111,205 5,165,037
Change in Net Position (936,514) (762,509)
Net Position — Beginning, As Originally Stated 1,412,636 207,788
Prior Period Adjustment— GASB No. 75 (268,334) -
Net Position — Beginning, As Restated 1 144,302 207 788
Net Position (Deficit)- Ending of the fiscal year $ 207 78 $ 554 721_).
Both of the financial statements distinguish the functions of the District that are
principally supported by ad valorem taxes and intergovernmental revenues. The
governmental activities of the District are for public safety.
General Revenues
During fiscal year 2019, the District received $497,440 more in ad valorem tax dollars
over the prior fiscal year due to an increase in assessable value of property within the
District. This represents a 15% increase. Other revenues, however, decreased over
the prior fiscal year due principally to the SAFER Grant ending.
. Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2019
Government-wide Financial Statements (Continued)
During fiscal year 2018, the District received $428,236 more in ad valorem tax dollars
over the prior fiscal year due to an increase in assessable value of property within the
District. This represents a 14% increase. Other revenues, however, decreased
$680,671 net over the prior fiscal year due principally to the SAFER Grant ending.
Expenses
During the fiscal year of 2019 expenses only slightly increased by $53,832 vs. the prior
r fiscal year due to increases in operating costs. Personnel related and operating costs
were up in 2019 due to pension and OPEB costs.
During the fiscal year of 2018 expenses increased by $122,751 vs. the prior fiscal year
r due to increases in costs. These costs included an increase in pension liability and
OPEB costs.
Net Position
During fiscal year 2019, net position decreased by ($762,509).
During fiscal year 2018, net position decreased by ($936,514).
Liabilities
During the year ended September 30, 2019, the District entered a capital lease of
$764,074 for a Pierce Velocity pumper truck.
[ During the year ended September 30, 2018, the District entered a capital lease of
$101,432 for staff vehicles.
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C3 Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The District uses fund
accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government wide financial statements. However, unlike
the government wide financial statements, governmental fund financial statements
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1 "1 Immokalee Fire Control District
€'y Management's Discussion and Analysis
September 30, 2019
Governmental Funds (Continued)
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focus on the short-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Both the
H governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balance provide a reconciliation to facilitate the
comparison between governmental funds and governmental activities.
The District maintains two governmental funds, the General Fund and the Special
Revenue Fund for impact fees. Each fund's activity is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances. These statements can be found on pages
6 and 8 of this report.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements and can be found
beginning on page 10 of this report.
I General Fund Budgetary Highlights
The District adopts an annual appropriated budget for each of its governmental funds.
The most significant budget variance for the year ended September 30, 2019 was due
to health insurance actual cost being less than budgeted by approximately $47,000
The actual expenditures in the General Fund were $2,054,295 less than the final
amended budget. The actual expenditures were less than budget in general due to not
i i having to use any reserves to cover expenditures.
0 The District adopts an annual appropriated budget for each of its governmental funds.
The most significant budget variance for the year ended September 30, 2018 was due
to entering the capital lease for staff vehicles. The actual expenditures in the General
Fund were $1,796,351 less than the final amended budget. The actual expenditures
were less than budget in general due to not having to use any reserves to cover
expenditures.
Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 201
Capital Assets
The following is a schedule of the District's capital assets at September 30.
Capital Assets
September 30
2018 2019
Capital Assets not being depreciated
Land $ 114,916 $ 114,916
Construction in progress 360,044 713 064
Total Capital Assets not being depreciated 474,960 827 980
G. 3 Capital Assets being depreciated:
Buildings and building improvements 455,967 455,967
l Machinery&equipment 1,194,989 1,203,816
Vehicles 2,223,423 2,845 411
Total Capital Assets being depreciated 3 874 379 4 505 194
[ 3 Less. Accumulated Depreciation 2,762,427) 3,034 722)
Capital Assets,being depreciated,net 1 111 952 1 470 472
Capital Assets,Net $ 1,586 912 $ 2,298,452
The District purchased capital assets during the year ended September 30, 2019 in the
amount of$772,901 which consisted substantially of a new pumper truck. The District
also sold and leased back three (3) staff vehicles. The District also incurred costs
related to construction planning of the new Ave Maria station in the amount of$353,020.
L During the year ended September 30, 2018, the District purchased capital assets of
$309,346 which consisted of construction in progress of$130,406 related to a new
station, $133,510 in vehicles and $45,430 in equipment.
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Long Term Liabilities
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The following is a summary of changes in long-term liabilities for the year ended
September 30:
2018 2019
Not pon,ion liability I IR.`, 3.6b0,S17 4,063,007
Not pension liability I IIS 667,117 689,001
Gomponsntod absent os 412,979 409,969
C:r.pilnl lonnon 89,85/ 834,088
Not c 1 13 liability 507 058
530 252
$ ,333,' 78 `" 0,516,31/
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Immokalee Fire Control District
Management's Discussion and Analysis
September 30, 2019
Economic Factors and Next Year's Budget Rates
The following were factors considered when next year's budget (2019-2020) was
prepared:
• The estimated property taxes increased by approximately $185,596 or 0.5% for
budgeting purposes for 2020 as compared to 2019. The millage rate stayed
consistent at 3.75 mills for the fiscal year ending September 30, 2020. The District
intends to continue to move into construction phase of the Ave Maria Fire Station
J during FY 2020.
Request for information
This financial report is designed to provide the reader an overview of the District.
Questions regarding any information provided in this report should be directed to:
Immokalee Fire Control District, 502 East New Market Road, Immokalee, Florida 34142,
attention Michael Choate, Fire Chief, telephone (239) 657-2111.
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IMMOKALEE FIRE CONTROL DISTRICT Page 4 of 67
STATEMENT OF NET POSITION
September 30,2019
Governmental
Activities
ASSETS
Current assets:
Cash and cash equivalents S 880,715
Restricted cash and cash equivalents 1,579,917
Investments 5,105,971
L Due from other governments,including restricted amount of$102,321 143,251
t Prepaid expenses 74,639
Total current assets 7,784,493
} Noncurrent assets:
J Capital assets:
Land 114,916
Construction in progress 713,064
Depreciable buildings,equipment and vehicles
(net of$3,034,722 accumulated depreciation) 1 470 472
Total noncurrent assets 2 298 452
TOTAL ASSETS 10,082,945
DEFERRED OUTFLOWS OF RESOURCES 2,021,392
LIABILITIES
Current liabilities:
Accounts payable 39,486
Accrued liabilities
LJ Unearned revenue-impact fees 5,743,342
Current portion of long-term obligations 92 542
El Total current liabilities 5,875,370
Noncurrent liabilities:
E.] Noncurrent portion of long,term obligations 6,123,775
L IOTAI LIABII II ILS 12,299,115
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DEFERRED INFLOWS OF RESOURCES 359,913
NET I'OSITION
Net+nve,tmcnl in capital assets I 164 361
Re-ti ictcd
UnrcAi tctcd(del lett) 2 019(185
TO I Al NI I POSI I ION(DEFICI I) S 551 721
I he accompanying notes arc an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 5 of 67
STATEMENT OF ACTIVITIES
Year Ended September 30, 2019
Governmental
Activities
EXPENSES
Governmental Activities
Public Safety-Fire Protection
Personnel services S 4,225,905
Operating expenses 612,244
Depreciation 326,888
` ' Interest and fiscal charges -
J TOTAL EXPENSES -GOVERNMENTAL ACTIVITIES 5,165,037
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PROGRAM REVENUES
Charges for services -
i Operating/capital grants and contributions 6,012
TOTAL PROGRAM REVENUES 6,012
NET PROGRAM EXPENSES 5,159,025
GENERAL REVENUES
Ad Valorem taxes 3,920,526
Impact fees 252,619
Interest 149,070
Loss on disposition of capital assets (87,493)
Ci Other 161,794
I DIAL Gl'NI-RAL RLVLNUI'S 4,396,516
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INCRI-ASF (DFCRFASF) IN NEI POSITION (762,509)
NET POSITION - Beginning of year 207,788
NET POSITION (DEFICIT)- End of the year w 554,72 I
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I he accompanying note~are an integral part of thiti ,,tatemcnt
IMMOKALEE FIRE CONTROL DISTRICT Page 6 of 67
BALANCE SHEET- GOVERNMENTAL FUNDS
September 30,2019
Total
General Impact Fee Governmental
Fund Fund Funds
ASSETS
Cash and cash equivalents $ 880,715 $ - $ 880,715
Restricted cash and cash equivalents - 1,579,917 1,579,917
Investments 1,009,946 4,096,025 5,105,971
Due from other governments 40,930 102,321 143,251
Due from other funds 15,889 - 15,889
[ ] Prepaid expenditures 74,639 - 74,639
TOTAL ASSETS $ 2,022,119 $ 5,778 263 $ 7,800,382
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LIABILITIES AND FUND BALANCE
LIABILITIES
-i Accounts payable $ 20,454 $ 19,032 $ 39,486
Accrued liabilities - -
Due to other funds 15,889 15,889
Unearned revenue- impact fees 5,743,342 5,743,342
TOTAL LIABILITIES 20,454 5,778,263 5,798,717
, FUND BALANCE
Nonspendable 74,639 74,639
[3 Assigned 1,927,026 - 1,927,026
Unassigned
[1 TOTAL FUND BALANCF 2,001,665 2,001,665
E3 I OI AI I IABILI I'IFS AND
r FUND BALANCE $ 2,022,1 19 $ 5,778,263 $ 7,800,382
I he accompanying notes are an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 7 of 67
RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
September 30,2019
Amount
Total fund balance for governmental funds $ 2,001,665
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in governmental activities are not financial resources
rand,therefore,are not reported in the governmental funds.
I Capital assets not being depreciated:
Land 114,916
3 Construction in progress 713,064
827,980
Governmental capital assets being depreciated:
Building,Equipment and Vehicles 4,505,194
Less accumulated depreciation 13,034,722)
1,470,472
Deferred outflows and deferred inflows related to pensions are applied to
future periods and,therefore,are not reported in the governmental funds.
Deferred outflows related to pensions 2,021,392
Deferred inflows related to pensions (359,913)
Deferred inflows related to OPEB
L 3 1,661,479
Long term liabilities arc not due and payable in the current period
L3 and,therefore, arc not reported in the funds.
Q Net pension liability I RS (4,053,007)
Net pension liability- I IIS (689,001)
1 l Capital leases (834,088)
Compensated absence,. (409,969)
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Net OPI B Iiabiity 530,252
6,516,317,
1-Iimination of interlund amounts:
Due from other funds 15,889
Due to other funds 15,889
total net position(dclic.it)of rovernmenlul activities S 1554,721►
is
L.
I he aceontpanyini, notes are an integral part of this statement
F
IMMOKALEE FIRE CONTROL DISTRICT Page 8 of 67
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE- GOVERNMENTAL FUNDS
Year Ended September 30,2019
Impact Total
General Fee Governmental
Fund Fund Funds
REVENUES
Ad Valorem taxes $ 3,920,526 $ - $ 3,920,526
Intergovernmental revenues:
Federal public safety grants-SAFER/AFG - - -
State firefighter supplemental 5,087 - 5,087
Local government grant-CDBG 925 - 925
[
1 Fees:
Inspection fees - - -
6 l Impact fees 252,619 252,619
Miscellaneous:
1, 1 Interest 35,392 113,678 149,070
Other 161,794 - 161,794
TOTAL REVENUES 4,123,724 366,297 4,490,021
EXPENDITURES
Current
Public safety
Personnel services 3,393,979 - 3,393,979
Operating expenditures 602,229 10,015 612,244
Capital outlay 769,639 356,282 1,125,921
Debt service
Principal reduction 19,843 19,843
Interest and fiscal charges - - -
TOTAL EXPENDITURES 4,785,690 366,297 5,151,987
C IFXCESS OF REVI-NUFS
OVER(UNDFR)EXPENDI I URES 661,966 661,966
I
OTHER FINANCING SOURCES(USES)
Proceeds from issuance of capital lease 764,07 I 764,07 I
Proceeds from disposition of capital assets
101 AI O fl IER FINANCING
SOURCES(USI'S) 764,071 764,074
NH CIIANGI• IN FUND 13ALANCI• 102,108 102,108
I UND 13A1 ANCI I3cginning oldie year 1,899,557 1899,557
UND 13AI ANCI I nd of the year $ ',001 665 9, S '001.665
1 he accompanying notes are an Intel'ral pai t of this statement
IMMOKALEE FIRE CONTROL DISTRICT Page 9 of 67
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE-
GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Year Ended September 30,2019
Amount
Net change(excess of revenues over(under)expenditures)
in fund balance-total governmental funds $ 102,108
The decrease(change)in net position reported for governmental activities
in the statement of activities is different because:
Governmental funds report capital outlays as expenditures.
L However, in the Statement of Activities,the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense.
Plus: Expenditures for capital assets 1,125,921
Less: proceeds from disposition of capital assets -
Less: loss on disposition of capital assets (87,493)
Less: current year depreciation (326,888)
711,540
The issuance of debt is reported as a financing source in governmental
funds and thus contributes to the change in fund balance. In the
Statement of Net Position,however, issuing debt increases long-term
liabilities and does not affect the Statement of Activities.
Similarly,repayment of principal is an expenditure in the
governmental funds but reduces the liability in the Statement of
Net Position.
Proceeds from capital leases (764,074)
[ I Repayments(principal retirement)for capital lease 19,843
(744,231)
[]
Sonic expenses reported in the Statement of Activities do not require the
use of current financial resources and,therefore,are not reported as
expenditures in the governmental funds.
Increase(decrease) in deferred outflows Pensions (398,875)
(Increase)decrease in deferred inflows Pensions 5,507
(Increase)decrease in deferred inflows OPL13
(Increase)decrease in net pension liability IRS (396,490)
(Incluse)decrease in net pension liability I IIS (21,884)
(Increase)decrease in compensated absences,net 3,010
(Increase)decrease in net OPL•'13 liability 23,194
831 926
Inctcasc(decrease) in net position of-governmental activities s 762,509
I he accompanying notes arc an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 10 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization
Immokalee Fire Control District(the "District"), is an independent special district
established on May 3, 1955 by Laws of Florida, Chapter 55-30666, as amended.
The District has the general and specific powers prescribed by Florida Statutes
Chapters 189, 633 and Chapter 191. Laws of Florida, Chapter 2000-393 codified,
j reenacted, amended and repealed its prior enabling acts. Also, as a result of Laws of
L Florida, Chapter 2000-393, the District's name was changed from Immokalee Fire
Control and Rescue District to Immokalee Fire Control District. Laws of Florida,
F ' Chapter 2001-330 amended Laws of Florida, Chapter 2000-393 and authorized the
District to levy impact fees on new construction within the District. During January
2012, the voters within the District passed a referendum increasing the District's
millage cap from 3 mills to 3.75 mills effective for the year ended September 30,
2013 and thereafter. The District was created for the purpose of providing fire
control and protection services as well as crash and rescue services for a designated
area in eastern Collier County. The District operates three (3) station houses and has
approximately 42 employees including volunteers. The District is governed by an
elected five (5) member Board of Commissioners serving staggered four(4) year
terms.
L. 1 Summary of Significant Accounting Policies
The following is a summary of the significant accounting policies used in the
preparation of these basic financial statements.
0
r Reporting Entity
1 he District adheres to Governmental Accounting Standards Board (GASB)
Statement Number 14, "Financial Reporting I.ntily" (GASB 14), as amended by
GASB Statement Number 39, "Determining Whether Certain Organi/ations Arc
Component Units" (GASI3 39)and GASB Statement Number 6!, "1 he Financial
Reporting I-ntity: Omnibus An Amendment of GASB Statements No. 14 and No.
34" (GASI3 61). 'I hese statements require the basic financial statements of the
District(the primary government) to include its component units, if any. A
component unit is a legally separate organi/ation for which the elected officials of the
primary government arc financially accountable. Based on the criteria established in
GASB Statement No. 14, as amended, there arc no component units required to be
included or included in the District's basic financial statements.
IMMOKALEE FIRE CONTROL DISTRICT Page 11 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
The basic financial statements of the District are comprised of the following:
- Government-wide financial statements
- Fund financial statements
-Notes to the financial statements
J
i 1 Government-wide Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the activities of the District and do
r ' not emphasize fund types. These governmental activities comprise the primary
government. General governmental and intergovernmental revenues support the
governmental activities. The purpose of the government-wide financial statements is
to allow the user to be able to determine if the District is in a better or worse financial
position than the prior year. The effect of all interfund activity between governmental
funds has been removed from the government-wide financial statements.
Government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting,revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange-like transactions are recognized when the exchange takes
[J place. Revenues, expenses, gains, losses, assets, and liabilities resulting from
noncxchange transactions arc recognized in accordance with the requirements of
GASB Statement Number 33, "Accounting and Financial Reporting for
Nonexchangc Transactions" (GASB 33).
r
Amounts paid to acquire capital assets are capitaliied as assets in the
government-wide financial statements,rather than reported as expenditures.
Proceeds of long-term debt arc recorded as liabilities in the government wide
financial statements,rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government arc reported as a reduction of
the related liability in the government wide financial statements, rather than as
expenditures.
IMMOKALEE FIRE CONTROL DISTRICT Page 12 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government-wide Financial Statements, continued
The Statement of Activities demonstrates the degree to which the direct expenses of
a given function are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include: 1)
charges to customers or applicants who purchase, use or directly benefit from goods,
I I services, or privileges provided by a given function and 2) grants and contributions
[ 3 that are restricted to meeting the operational or capital improvements of a particular
function. Taxes and other items not properly included among program revenues are
1 reported instead as general revenues.
Program revenues arc considered to be revenues generated by services performed
and/or by fees charged such as inspection fees. During the year ended September
30, 2019, the District contracted another lire district to perform all Fire inspections
within the Immokalee Fire Control District. As such, the contracted District was
entitled to all fire inspection fee revenues.
Capital grant revenues are grants from other governmental entities restricted for the
purchase of specific capital assets.
[ 1 Fund Financial Statements
[ 1 1 he District adheres to GASB Statement Number 54, "hand Balance Reporting and
Governmental Fund fypc Definitions" (GASB 54).
I he accounts of the District arc organiicd on the basis of funds, each of which is
considered a separate accounting entity. 1 he operations of each fund arc accounted
for with a separate set of self-balancing accounts that comprise its assets, liabilities,
Fund equity or retained earnings, revenues, and expenditures or expenses, as
appropriate. Government resources arc allocated to and accounted for in individual
funds based upon the purpose for which they arc to be spent and the means by
which spending activities are controlled.
Fund financial statements IOP the District's governmental funds arc presented after
the government-wide financial statements. I hese statements display information
about major funds individually and nonmafor lands, in aggregate, for governmental
funds.
IMMOKALEE FIRE CONTROL DISTRICT Page 13 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Governmental Funds
When both restricted and unrestricted resources are combined in a fund,
expenditures are considered to be paid first from restricted resources, as
appropriate, and then from unrestricted resources. Governmental fund financial
statements are reported using the current financial resources measurement focus and
[ 1 the modified accrual basis of accounting. Revenues are considered to be available
when they are collected within the current period or soon enough thereafter to pay
liabilities of the current period.
r �
The District's major funds are presented in separate columns on the governmental
fund financial statements. The definition of a major fund is one that meets certain
criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and
Management's Discussion and Analysis - for State and Local Governments" (GASB
34). The funds that do not meet the criteria of a major fund are considered
non-major funds and are combined into a single column on the governmental fund
financial statements.
Separate financial statements are provided for governmental funds. Major
individual governmental funds are reported in separate columns on the fund financial
L j statements.
Measurement Focus and Basis of Accounting
Li Basis of accounting refers to when revenues and expenditures, or expenses, arc
r recognized in the accounts and reported in the basic financial statements. Basis of
accounting relates to the timing of'the measurements made, regardless of the
measurement focus applied.
fhe government-wide financial statements arc reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues arc
recorded when earned and expenses arc recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes arc recogniicd as
revenues in the year for which they arc levied. Grants and similar items arc
rccogniicd as revenue as soon as all eligibility requirements have been met.
IMMOKALEE FIRE CONTROL DISTRICT Page 14 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Measurement Focus and Basis of Accounting, continued
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
6.
Revenues are recognized as soon as they are both measurable and available.
{ j Revenues are considered to be available when they are collectible within the current
period and soon enough thereafter to pay liabilities of the current period. For this
t ,
purpose, the District considers tax revenues to be available if they are collected
j within sixty days of the end of the current fiscal period.
Revenues susceptible to accrual are property taxes, interest on investments, and
intergovernmental revenues. Property taxes are recorded as revenues in the fiscal
year in which they are levied, provided they are collected in the current period or
within sixty days thereafter. Interest on invested funds is recognized when earned.
Intergovernmental revenues that are reimbursements for specific purposes or projects
are recognized when all eligibility requirements are met.
Expenditures are generally recognized under the modified accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (I)
principal and interest on the long-term debt, if any, which is recognized when due;
and (2) expenditures arc generally not divided between years by the recording of
prepaid expenditures.
0
When both restricted and unrestricted resources are available for use, it is the
r
District's policy to use restricted resources first, then unrestricted resources as they
are needed.
Separate financial statements are provided for governmental funds.
Non-current Government Assets/Liabilities
GASB 34 requires non-current governmental assets, such as land and buildings, and
non current governmental liabilities, such as notes payable and capital leases, to be
reported in the governmental activities column in the government wide Statement of
Net Position.
IMMOKALEE FIRE CONTROL DISTRICT Page 15 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Major Funds
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the District, except those required to be accounted for in the Impact Fee
Fund.
U
The Impact Fee Fund consists of fees imposed and collected by Collier County
based on new construction within the District. The fees are restricted and can only
be used for certain capital expenditures and/or the related debt associated with
growth within the District.
Budgetary Information
The District has elected to report budgetary comparison of major funds as required
supplementary information (RSI).
Investments
The District adheres to the requirements of Governmental Accounting Standards
L� Board (GASB) Statement Number 31, "Accounting and Financial Reporting for
Certain Investments and for External Investment Pools" (GASB 31), in which all
investments are reported at fair value.
Capital Assets
Capital assets, which include land, construction in progress, buildings, equipment and
machinery and vehicles arc reported in the government-wide financial statements in
the Statement of Net Position.
The District follows a capitals/ation policy which calls for capitali/ation of all fixed
assets that have a cost or donated value of'i I,000 or more and have a useful life in
excess of one year.
1
1
IMMOKALEE FIRE CONTROL DISTRICT Page 16 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Capital Assets, continued
All capital assets are valued at historical cost, or estimated historical cost if actual
historical cost is not available. Donated capital assets are valued at their estimated
fair market value on the date donated. Public domain(infrastructure) capital assets
consisting of certain improvements other than building, including curbs, gutters and
I I drainage systems, are not capitalized, as the District generally does not acquire such
L assets. No debt-related interest expense is capitalized as part of capital assets in
accordance with GASB 34.
[ j
Maintenance, repairs and minor renovations are not capitalized. The acquisition of
land and construction projects utilizing resources received from Federal and State
agencies are capitalized when the related expenditure is incurred.
Expenditures that materially increase values, change capacities, or extend useful lives
are capitalized. Upon sale or retirement, the cost is eliminated from the respective
accounts.
Expenditures for capital assets arc recorded in the fund statements as current
expenditures. However, such expenditures are not reflected as expenses in the
El government-wide statements, but rather are capitalized and depreciated.
[i Depreciable capital assets are depreciated using the straight-line method over the
following estimated useful lives:
r
Asset Years
Buildings 30
1-quipment and Machinery 3-20
Vehicles 4-10
{ IMMOKALEE FIRE CONTROL DISTRICT Page 17 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Budgets and Budgetary Accounting
is
The District has adopted an annual budget for the General Fund.
The District has also adopted an annual budget for its Special Revenue Fund, the
L Impact Fee Fund.
1 ]
The District follows these procedures in establishing budgetary data for the General
t Fund and the Impact Fee Fund:
1. During the summer of each year, the District Fire Chief submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
the upcoming October I. The operating budget includes proposed expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these financial statements, arc as originally
adopted or as amended by the Board of Commissioners.
_ � 5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America.
6. fhe level of control for appropriations is exercised at the fund level.
El 7. Appropriations lapse at year end.
the District did amend the General fund budget during the year ended September
30, 2019 in the amount 01'1;71 1,754.
1 he District did amend the Impact I'ec I and budget during the year ended
September 30, 2019 in the amount of 1728,437.
IMMOKALEE FIRE CONTROL DISTRICT Page 18 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Impact Fees/Deferred Revenue
Through an inter-local agreement,the District levies an impact fee on new
construction within the District. The intent of the fee is for growth within the District
to pay for capital improvements needed due to the growth. The fee is collected by
Collier County and is remitted to the District. The fee is refundable if not expended
[ 3 by the District within a reasonable period from the date of collection. The District,
[ therefore,records this fee as restricted cash and as deferred revenue until the date of
expenditure, at which time it is recognized as revenue and charged to capital outlay in
r 1 the fund financial statements and capital assets in the government-wide financial
statements.
Due To/From Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded
in the fund statements by funds affected in the period in which transactions are executed.
Due From Other Governments
No allowance for losses on uncollectible accounts has been recorded since the
District considers all amounts to be fully collectible.
U
Compensated Absences
The District's employees accumulate annual leave, based on the number of years of
continuous service. Upon termination of employment, employees can receive
payment of accumulated annual leave, if certain criteria arc met. The costs of sick,
r
vacation and personal leave benefits (compensated absences) arc expended in the
respective operating funds when payments are made to employees. I lowever, the
liability for all accrued sick, vacation and personal leave benefits is recorded in the
government-wide Statement of Net Position.
Encumbrances
Encumbrance accounting, under which purchase orders,contracts and othe
commitments for the expenditure of monies arc recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because, at
present, it is not necessary in order to assure effective budgetary control or to
facilitate effective cash planning and control.
IMMOKALEE FIRE CONTROL DISTRICT Page 19 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Management Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements
I I and the reported amounts of revenues and expenditures during the reporting period.
•
Actual results could differ from those estimates.
t Net Position
In the government-wide financial statements, no net position has been identified as
restricted. Restricted net position reflects those net assets that have constraints as to
their use externally imposed by creditors,through debt covenants, by grantors, or by
law.
Fund Balances
The governmental fund financial statements the District maintains may include
nonspendable, restricted, committed,assigned and unassigned fund balances.
Nonspendable fund balances are those that cannot be spent because they are either
(a) not in spendable form or(b) legally or contractually required to be maintained
LI intact. Criteria include items that arc not expected to be converted into cash, for
example prepaid expenses.
Restricted fund balance consists of amounts that can be spent only on specific
purposes stipulated by constitutional provisions or enabling legislation or externally
imposed by creditors, grantors, contributors, or laws or regulations of other
governments. 1 he District maintained no restricted fund balances at September 30,
2019.
Committed fund balance consists of amounts that represent resources whose use is
constrained by limitations the Board (highest decision making) imposes upon itself.
I hese constraints made by the I3oard remain binding unless removed in the same
manner. I he District maintained no committed fund balance at September 30,
2019.
IMMOKALEE FIRE CONTROL DISTRICT Page 20 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Fund Balances, continued
Assigned fund balance represents the portion of fund balance that reflects the
District's intended use of resources. Such intent can only be established by the
Board. The District maintained assigned fund balance totaling$1,927,026 for various
uses at September 30, 2019. The Board's minimum fund balance policy is to
I maintain not less than three (3) months budgeted expenditures in assigned fund
balance as well as other specifically assigned amounts.
r ? Unassigned fund balance is the portion of fund balance representing resources in
excess of what can properly be classified in one of the other categories.
Interfund Transactions
The District considers interfund receivables (due from other funds)and interfund
liabilities (due to other funds)to be loan transactions to and from other funds to
cover temporary(three months or less)cash needs. Transactions that constitute
reimbursements to a fund for expenditures initially made from it that are properly
applicable to another fund are recorded as expenditures in the reimbursing funds and
as reduction of expenditures in the fund that is reimbursed.
C 1 Pensions
In the government wide Statement of Net Position, liabilities arc rccogniied for the
District's proportionate share of each pension plan's net pension liability. For
purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of the Florida Retirement System (IRS) and the
Health Insurance Subsidy (ITIS) defined benefit plans and additions to deductions
from fiduciary net position have been determined on the same basis as they arc
reported by the Plans. For this purpose, benefit payments, (including refunds of
employees contributions) are recogniicd when due and payable in accordance with
the benefit terms.
I he District's retirement plans and related amounts are described in a subsequent
note.
IMMOKALEE FIRE CONTROL DISTRICT Page 21 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position reports a separate section for
deferred outflows of resources. This separate financial statement element, deferred
outflows of resources,represents a consumption of net position that applies to future
periods and so will not be recognized as an outflow of resources
(expense/expenditure)until then. The deferred amount on pensions is reported in the
government-wide Statement of Net Position. The deferred outflows of resources
r
related to pensions and OPEB are discussed in a subsequent note.
In addition to liabilities,the Statement of Net Position reports a separate section for
deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future
period and so will not be recognized as an inflow of resources (revenue) until that
time. The deferred amount on pensions and OPEB is reported only in the
government-wide Statement of Net Position. A deferred amount on pensions and
OPEB results from the difference in the expected and actual amounts of experience,
earnings, and contributions. This amount is deferred and amortised over the service
life of all employees that are provided with benefits through the plans except earnings
which are amortized over five to seven years.
Li
Subsequent Events
Subsequent events have been evaluated through February 3, 2020, which is the date
the financial statements were available to be issued.
` I
NOTE B - CASH ANI) CASH EQUIVALENTS
At September 30, 2019, cash and cash equivalents were $2,460,632, which
included unrestricted cash of$880,715 in the General Fund (including petty cash of
$100)and restricted cash of$1,579,917, which was held in the Impact l'ec Fund.
Restricted cash is comprised of impact tees which arc restricted for capital asset
acquisition and/or improvement due to growth within the District.
IMMOKALEE FIRE CONTROL DISTRICT Page 22 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE B - CASH AND CASH EQUIVALENTS,CONTINUED
Deposits
The District's deposit policy allows deposits to be held in demand deposit or money
market accounts and other investments per Florida Statutes, Chapter 218.415(17).
All District deposits were held in a financial institution designated as a qualified
depository by the State Treasurer.
L .1
[ 3 At September 30, 2019,the carrying amounts of the District's deposits were
$880,615 and $1,579,917 in the General Fund and the Impact Fee Fund,
{ 3 respectively. At September 30, 2019, bank balances were$887,467 and
f.} $1,579,917 in the General Fund and Impact Fee Fund, respectively. These deposits
were entirely insured by federal depository insurance or by collateral pursuant to the
Public Depository Security Act(Florida Statute 280) of the State of Florida.
NOTE C - INVESTMENTS
Florida Statutes and the District's investment policy authorize investments in the
Florida Fixed Income Trust(FL FIT). Specifically, the District's investment policy is
consistent with Florida Statutes, Chapter 218.415(17). At September 30, 2019, the
District's investments in the FL FIT-Cash Pool (CP) consist of the following:
Fair Value(NAV)
Li Cosi Carrying
Basis Amount
General I•und
I lorida 1 iced Income I rust
11 I.I I Cash Pool(CP) $ 1,009,946 $ 1 009,946
I oral investments-General fund $ 1,009,946 $ 1,009,946
lin act I cc kind
I Ionda I t'.ed Income Trust
11 III Cash Pool(CP) $ I (196 025 5 1,096,025
I otal investments-Impact I eel und $ 4 096 025 5 4 096 025
I he Florida I.ixed Income 1 rust (1'1 1.11) Cash Pool (CP) is an external 2a7 like
investment pool, which is self administered. I he Florida l.ixed Income [rust(I.I
I'll) Cash Pool (CP) is not categoriied as it is not evidenced by securities that exist
in physical or book entry form. I he Florida l.ixed Income I rust (1.1 1.1F) Cash Pool
are stated at a net asset value (NAV) which approximates lair value,NAV $1.00.
I hese investments are subject to the risk that the market value of an investment,
collateral protecting a deposit or securities underlying an investment will decline and
lose value.
IMMOKALEE FIRE CONTROL DISTRICT Page 23 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE C - INVESTMENTS, CONTINUED
FL FIT is not required to register(and has not registered)with the SEC; however,
the fund is an external investment pool that has historically adopted operating
procedures consistent with those required by Florida Statutes.
The District's investment in the Florida Fixed Income Trust (FL FIT) Cash Pool (CP)
' represented approximately less than 1%of the Fund's total investments.
[ 3
At September30, 2019, the Cash Pool's investments consisted of the following: 80%
with commercial paper; 10% with institutional money market deposits and mutual
r 1 funds; 5%with certificates of deposit; 3%with U. S. Treasury securities; and 2%
with governmental agency bonds.
These short-term investments are stated at fair value. Investment income is recognized
as earned and is allocated to participants of the Fund based on their equity
participation.
The District adheres to GASB Statement No. 79 and where the Fund meets the
criteria to make GASB Statement No. 31 disclosures which are required related to
its FL FIT Cash Pool investment:
�
r
`' Limitation on Participant Contributions and Withdrawals: FL FIT-Cash Pool
has no limitations or restrictions on participant withdrawals, does not charge
liquidity fees, and has not put in place a redemption gate. Fach participant has
C� the ability to withdraw 100 percent of its account balance any business day that
r ) the Investment Advisor is open for trading,the funds will settle trading date plus
one business day (T+1).
Investment Income, Unrealized Gains/Losses, and Realized Gains Losses: I I
11 f-Cash Pool follows industry practice and records security transactions on a
Made date basis. Dividend and interest income is recognized on an accrual
basis. Net investment income is distributed to participants at least monthly.
Unrealized and realized gains and losses, if any, arc distributed to participants on
a daily and monthly basis. Distributions to participants arc recorded on the
ex dividend date.
IMMOKALEE FIRE CONTROL DISTRICT Page 24 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE C - INVESTMENTS, CONTINUED
Valuation: Fair value of the investments in the FL FIT-Cash Pool is determined
on a daily basis. Fair value increases and decreases are included in the change
in unrealized gains and losses during the period. Net realized gains and losses
on sales of securities are computed based on specific identification. Mutual fund
securities are recorded at fair value as determined by using net position value as
furnished by a pricing service and the number of shares owned.
[ 1
Redemption Gates: Per the Administrator there are no redemption gates.
C.I Liquidity Fees: Per the Administrator there are no liquidity fees.
Redemption Fees: 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.
Fair Value: The carrying value of the investments held by the District
approximate fair value. Ilowever, it is the opinion of the management of Florida
Fixed Income Trust (FL FIT) it is exempt from GASB Statement No.72
financial hierarchy disclosures.
Foreign Currency Risk: Florida Fixed Income Trust (FL FIT) Cash Pool is not
exposed to foreign currency risk.
n
Securities Lending: Florida Fixed Income frust (FL FIT) Cash Pool did not
participate in securities lending program during the period October 1, 2018
r 1 through September 30, 2019.
Florida Fixed Income frust (H FIT) Cash Pool does provide separate audited
financial statements for the year ended June 30, 2019.
At September 30, 2019, the District reported Florida Fixed Income I rust (I'L Ill)
Cash Pool investments of$5,105,971. l he Florida Fixed Income I rust(I'I H I)
Cash Pool carried a credit rating of AAAf/Sl I by Standard and Poors and had a
dollar weighted average days to maturity(WAM) of 135 days at September 30,
'0 i 9. Rule 2a7 allows funds to use a constant of'$1.00 per share.
IMMOKALEE FIRE CONTROL DISTRICT Page 25 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE D - DUE TO/FROM OTHER GOVERNMENTS
Due from other governments at September 30, 2019, are as follows:
Description General Fund
Collier County Tax Collector $ 40,930
40,930
Im act Fee Fund
1 Collier County 102,321
1 $ 143 251
L•
Management of the District believes the due from other governments amounts to
be fully collectible.
NOTE E - DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2019, are as follows:
Due From Due To
Other Funds Other Funds
General Fund:
Impact Fee $ 15,889 $
Total General Fund 15,889
Li Special Revenue Fund:
Impact Fee:
General 15,889
Total Special Revenue Fund 15,889
0 Total $ 15,889 $ 15,889
Interfund receivables and payables were eliminated for presentation purposes in
the Statement of Net Position at September 30, 2019.
IMMOKALEE FIRE CONTROL DISTRICT Page 26 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE F- CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the year ended
September 30, 2019:
Balance Balance
October 1 Increases/ Decreases/ Adjustments/ September 30
2018 Additions Deletions Reclassifications 2019
Capital Assets Not
[ ] Being Depreciated:
3 Land $ 114,916 $ - $ - $ - $ 114,916
Construction in Progress 360,044 353,020 - - 713,064
[" Total Capital Assets Not
Being Depreciated 474,960 353,020 - - 827,980
Capital Assets
Being Depreciated:
Buildings 455,967 - - - 455,967
Equipment&Machinery 1,194,989 8,827 - - 1,203,816
Vehicles 2,223,423 764,074 142,086 2,845,411
Total Capital Assets
Being Depreciated 3,874,379 772,901 142,086 4,505,194
1 ess Accumulated
Depreciation:
Buildings (338,092) (11,500) - (3119,592)
Equipment&Machinery (645,047) (130,549) - (775,596)
Vehicles 1,779,288 184,839 54,593 1,909,534
I otal Accumulated Depreciation 2,762,427 326,888 54,593 3,034 722
total Capital Assets Being
Depteciatcd,Net 1,1 11,952 446,013 87,493 1,470,172
r
Capital Assets,Net $ 1,586,912 $ 799,033 $ 87,493 $ 2,298,452
Related debt 831,088
Net invi, unrnt in capital assets $ 1164,364
Depreciation expense was charged to the following functions during the year ended
September 30, 2019:
Amount
Genetal Government w 326,888
I otal Depreciation I 'pcnsc S 326,888
IMMOKALEE FIRE CONTROL DISTRICT Page 27 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE F- CAPITAL ASSETS ACTIVITY, CONTINUED
The District has capital assets held under capital leases with a total cost of$897,584 at
September 30, 2019. The capital assets held under capital lease had accumulated
depreciation of$105,008 and depreciation expense of$98,333 as of and for the year ended
September 30,2019.
J NOTE G • LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended
1 September 30, 2019:
r 1 Balance Balance Amounts
October 1 Retirements September 30 Due Within
2018 Additions Ad'ustments 2019 One Year
Net pension liability-FRS $ 3,656,517 $ 396,490 $ - $ 4,053,007 $ -
-{ Net pension liability-HIS 667,117 21,884 - 689,001
Capital leases 89,857 - (19,843) 70,014 19,843
Capital leases - 764,074 764,074 72,699
Compensated Absences 412,979 - (3,010) 409,969
Net OPER Liability 507 058 23 194 530,252 -
$ 5 333,528 $ 1205,642 $ 22,853 $ 6,516,317 $ 92,542
The following is a summary of the long-term obligations at September 30,2019:
Amount
rr 11 Net pension obligation lRS pension plan. This amount is actuarially
C J determined throup'h calculation based upon the audited financial
} statements of the Florida Retirement Plan $ 1,053,007
Net pension obligation HIS plan. I hi'.amount is actuarially determined
{ through calculation based upon the audited financial statements of the
I lorida Retirement Plan. 689,001
I he District entered into a live year$89,857 capital lease agreement. Monthly
payments are$1,654 and arc interest free.Payments began on March
20,2018 with a final payment due bebruary 20,2023.The lease
agreement is collateralized by the respective three vehicles. 70,014
Hie District entered into a eight yeti $764,074 capital lease agreement.Annual
payments arc$I04,73I including fixed interest of 4.19%. Payments began on January
7,2020 with a final payment due January 7,2027.The lease agreement is
collateralized by the respective pumper truck, 764,074
Non-current portion of compensated absences, Employees of the Distiret are
entitled to paid leave(sick,vacation and comp time)based on length of
ervice and job classification 409 969
Net OPI l3 liability determined GA'13 No.75. 530,2
Total long-term liabilities 6 516,31
CU!Tent poi ion 92 5
Noncurrent portion $ 6 123 7
IMMOKALEE FIRE CONTROL DISTRICT Page 28 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE G• LONG-TERM LIABILITIES, CONTINUED
The annual debt service requirements at September 30,2019, were as follows:
Years Ending Total Total
September 30 Princi al Interest Total
2020 $ 92,542 $ 32,032 $ 124,574
L , 2021 95,590 28,984 124,574
2022 98,766 25,809 124,575
[ ] 2023 92,716 22,500 115,216
2024 85,679 19,053 104,732
[ j Thereafter 368,795 34,998 403,793
Total capital lease 834,088 163,376 997,464
1_ .
Net pension liability-FRS 4,053,007 - 4,053,007
Net pension liability-HIS 689,001 - 689,001
Accrued compensated absences-vacation 409,969 - 409,969
Net OPEB obligation 530,252 - 530,252
Total long-term debt $ 6,516,317 $ 163,376 $ 6,679,693
Interest expense related to the capital lease payable was $0 for the year ended
September 30, 2019.
[ 1
r
IMMOKALEE FIRE CONTROL DISTRICT Page 29 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN
General Information about the Florida Retirement System
The Florida Retirement System ("FRS") was created in Chapter 121, Florida
Statutes. The FRS was created to provide a defined benefit pension plan("Pension
Plan") for participating public employees. All District employees are participants in
the Statewide Florida Retirement System (FRS) under authority of Article X, Section
14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS
was amended in 1998 to add the Deferred Retirement Option Program ("DROP")
LI under the defined benefit plan and amended in 2000 to provide an integrated defined
contribution plan alternative to the defined benefit plan for FRS members effective
July 1, 2002. This integrated defined contribution pension plan is the FRS Investment
Plan. Chapter 112, Florida Statutes, established the Retiree I-lealth Insurance
`' Subsidy(HIS) Program, a separate cost-sharing, multiple-employer defined benefit
pension plan to assist retired members of any State-administered retirement system in
paying the costs of health insurance.
Essentially all regular employees of the District are eligible to enroll as members of the
State-administered FRS. Provisions relating to the FRS are established by Chapters
121 and 122,Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238,
Florida Statutes; and Florida Retirement System Rules, Chapter 60S, Florida
Administrative Code; wherein eligibility, contributions, and benefits are defined and
[ 3 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
[ 1 the Florida Department of Management Services, Division of Retirement, and
fl consists of two cost-sharing, multiple-employer defined benefit plans (Pension and
ITIS 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 dated June 30, 2019, is
available from the Florida Department of Management Services' Website
(www.dms.my[lorida.com).
Hie District's total pension expense, $1,311,585 for the year ended September 30,
2019, is recorded in the government wide financial statements. 'I otal District actual
retirement contribution expenditures were$499,843, $489,104 and $410,600 for
the years ended September 30, 2019, 2018 and 2017, respectively. I he District
contributed 100°o of the required contributions.
IMMOKALEE FIRE CONTROL DISTRICT Page 30 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H- RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan
Plan Description. The FRS Pension Plan("Plan") is a cost-sharing, multiple-
employer defined benefit pension plan, with a Deferred Retirement Option Program
(DROP) for eligible employees. The general classes of membership are as follows:
Regular Class - Members of the FRS who do not qualify for membership in the
other classes.
[
Senior Management Service Class (SMSC)-Members in senior management
level positions.
11 Special Risk Class-Members who are employed as certified firefighters and
meet the criteria to qualify for this class.
Elected Officials - Members who are elected by the voters within the District
boundaries.
Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable
service and employees enrolled in the Plan on or after July 1, 2011, vest at eight
years of creditable service. All vested members, enrolled prior to July 1, 2011, are
eligible for normal retirement benefits at age 62 or at any age after 30 years of
service, except for those members classified as special risk who arc eligible for
El normal retirement benefits at age 55 or at any age after 25 years of service. All
members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for
normal retirement benefits at age 65 or any time after 33 years of creditable service,
except for members classified as special risk who arc eligible for normal retirement
El benefits at age 60 or at any age after 30 years of service. Members of both Plans
(Pension and IIIS) may include up to 4 years of credit for military service toward
creditable service. The Plan also includes an early retirement provision; however,
there is a benefit reduction for each year a member retires before his or her normal
retirement date. The Plan provides retirement, disability, death benefits, and annual
cost of living adjustments to eligible participants.
DROP, subject to provisions of Section 121.091, I.lorida Statutes, permits
employees eligible for normal retirement under the Plan to defer receipt of monthly
benefit payments while continuing employment with an 1.16 employer. An employee
IMMOKALEE FIRE CONTROL DISTRICT Page 31 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H - RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan, continued
t ,& may participate in DROP for a period not to exceed 60 months after electing to
r
participate. During the period of DROP participation,deferred monthly benefits are
1
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 Plan are computed on the basis of age,
and/or years of service, average final compensation, and credit service. Credit for
El 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
L" the average of the five highest fiscal years' earnings; for the members initially enrolled
on or after July 1, 2011, the average final compensation is the average of the eight
highest fiscal years'earnings. The total percentage value of the benefit received is
;.l determined by calculating the total value of all service, which is based on retirement
plan and/or the class to which the member belonged when the service credit was
earned. Members are eligible for in-line-of-duty or regular disability and survivors'
benefits. The following chart shows the percentage value of each year of service
credit earned:
Class, Initial Enrollment,and Retirement Are Years of Service °oValuc
L Regular Class and elected members initially enrolled before July I,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
r 7 Regular Class and elected members initially enrolled on or after July I,2011
Retirement tip to age 65 or up to 33 years of service 1.60
Retirement at age 66 or with 34 years of service I.63
Retirement at age 67 or with 35 years of service 1.65
Retirement at age 68 or with 36 or more years of service 1.68
Special Risk Regular
Service from December I, 1970 through September 30, 1974 2,00
L4 Sei vice on or after October I, 1974 3.00
Senior Management Service Class 2.00
11 1 Iected Officers'Class 3.00
IMMOKALEE FIRE CONTROL DISTRICT Page 32 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan, continued
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in
the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011,
the annual cost-of-living adjustment is 3 percent per year. If the member is initially
enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is
E J
an individually calculated cost-of-living adjustment. The annual cost-of-living
[ 7 adjustment is a proportion of 3 percent determined by dividing the sum of the
L , pre-July 2011 service credit by the total service credit at retirement multiplied by 3
percent. Plan members initially enrolled on or after July 1, 2011, will not have a
1 3 cost-of-living adjustment after retirement.
Contributions. The Florida Legislature establishes contribution rates for
participating employers and employees. Contribution rates during the
year ended September 30, 2019 were as follows:
Percent of Gross Salar
Class 121 Employee Em lo cr(1 I m to cr
Florida Retirement System,Regular 3.00 8.26 8.47
Florida Retirement System,Senior Management Service 3.00 24.06 25.41
Florida Retirement System,Special Risk 3.00 24.50 25 48
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 14.03 14 60
Florida Retirement System,Reemployed Retiree (2) N/A N A
I lorida Retirement System,Elected Official 3.00 48.70 48 82
Notes:
J (I) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
f employer rates,other than for DROP participants,include.06 percent for administrative costs for
t 1 the Investment Plan. Rates for 7/I 18 6 30/19.
(2) Contribution rates are dependent upon rLurennent class in which reemployed.
(3) Employer rates include 1,66 percent for the post employment health insurance subsidy. Also,
employer rates,other than for DROP participants,include.06 percent for administrative costs for
the Investment Plan. Rates for 7/1 19 6 30/20.
As defined by the Platt.
IMMOKALEE FIRE CONTROL DISTRICT Page 33 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H- RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS Pension Plan, continued
Pension Liabilities,Pension Expense, and Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the Pension Plan. At
September 30, 2019, the District reported a pension liability of$4,053,007 for its
proportionate share of the 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
L I District's proportionate share of the net pension Iiability was based on the District's
2018-19 fiscal year contributions relative to the total 2018-19 fiscal year
•
contributions of all participating members. At September 30, 2019,the District's
proportionate share was .017687900 percent, which was an increase of.005548278
percent from its proportionate share measure as of September 30, 2018.
For the year ended September 30,2018,the District recognized a pension expense
of$1,219,774. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to the pension from the following sources:
Deferred Outflows Deferred Inflows
Descri tion of Resources of Resources
Differences between expected
{._3 and actual experience $ 240,395 $ 2,515
E 3 Change of assumptions 1,040,987
Net difference between projected and
0 actual earnings on pension plan investments 224,234
Changes in proportion and differences between
F District contributions and proportionate share
of contributions 425,638 63,037
District contributions subsequent to the
measurement date 95,684
I otal $ 1,802,701 ti '89,786
IMMOKALEE FIRE CONTROL DISTRICT Page 34 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H- RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan, continued
The deferred outflows of resources related to the FRS pension, totaling$95,684,
resulting from District contributions subsequent to the measurement date, will be
recognized as a reduction on the net pension liability in the fiscal year ended
J
September 30, 2020. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the pension will be recognized in pension
[ j expense over the remaining service period of 6.4 years as follows:
[.3
Fiscal Years Ending
September 30 Amount
2020 $ 247,916
2021 247,916
2022 247,916
2023 247,918
2024 303,975
Thereafter 121,593
Total $ 1,417,234
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:
[1
Measurement date June 30, 2019
Inflation 2.60 percent
Real payroll growth 0.65 percent
Salaiy increases 3.25 percent, average, including inflation
Investment rate of return 6.90 percent, net of pension plan
investment expense, including inflation
Actuarial cost method Individual entry age
Mortality rates were based on the Generational RP-2000 with Projection Scale 1313.
I he actuarial assumptions used in the July 1, 2019, valuation were based on the
results of an actuarial experience study For the period July I, 2013 through June 30,
2018.
IMMOKALEE FIRE CONTROL DISTRICT Page 35 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
FRS Pension Plan,continued
The long-term expected rate of return on pension plan investments was not based on
historical returns, but instead is based on a forward-looking capital market economic
model. The allocation policy's description of each asset class was used to map the
target allocation to the asset classes shown below. Each asset class assumption is
based on a consistent set of underlying assumptions, and includes an adjustment for
[ the inflation assumption. The target allocation and best estimates of arithmetic and
- geometric real rates of return for each major asset class are summarized in the
following table:
1
Compound
Annual Annual
Target Arithmetic (Geometric) Standard
Asset Class Allocation 1 Return Return Deviation
Cash 1.00°0 3.3°0 3.3°0 1.2°0
Fixed income 18.00°o 4.1°o 4.1°o 3.5°0
Global equity 54.00°0 8.0°0 6.800 16.5'0
Real estate(property) 10.00°0 6.7°0 6.1°0 11.7°G
Private equity 11.00°o 11.2°0 8.4°0 25.8°0
Strategic investments 6.00°0 5.900 5.7°0 6.7°0
Total 100.00°0
Ei Assumed inflation Mean 2.60°0 1.70°0
(1)As outlined in the Plan's investment policy
0 Money-weighted Rate of Return. el he annual money weighted rate of return on
r�
the FRS Pension Plan investments for the year ended September 30, 2019 was
5.9800.
Discount Rate. l he discount rate used to measure the total pension liability
was 6.90 percent. I he Plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees.
herefore, the discount rate for calculating the total pension liability is equal to the
long term expected rate of return.
IMMOKALEE FIRE CONTROL DISTRICT Page 36 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H - RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN, CONTINUED
j FRS Pension Plan, continued
LI Sensitivity of the District's Proportionate Share of the Net Pension Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net pension liability calculated using the discount rate of
6.90 percent, as well as what the District's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1-percentage-point
[1 lower (5.90 percent) or 1-percentage-point higher(7.90 percent)than the current
E 3 rate:
I°o Current 1°0
[ 3 Decrease Discount Rate Increase
5.90°o 6.90°o 7.90°o
District's proportionate share of
the net FRS pension liability $10,530,117 $ 4,053,007 $ 2,384,442
Pension Plan Fiduciary Net Position. Detailed information about pension plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Systems Comprehensive Annual Financial Report (FRS CAFR)
dated June 30, 2019.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Li Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
El P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877 377-1737
http://www.dms.m)(lorida.com workforcc_operations retirement publications
Payables to the Pension Plan. At September 30, 2019, the District reported a
r payable of$0 l'or the outstanding amount of contributions in the pension plan required
for the year ended September 30, 2019.
IMMOKALEE FIRE CONTROL DISTRICT Page 37 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H- RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN,CONTINUED
Health Insurance Subsidy (HIS) Plan
Plan Description. The Health Insurance Subsidy Plan("HIS Plan")is a cost-sharing,
multiple-employer defined benefit pension plan established under Section 112.363,
Florida Statutes. The benefit is a monthly payment to assist retirees of
State-administered retirement systems in paying their health insurance costs and is
administered by the Division of Retirement within the Florida Department of
[ j Management Services.
Benefits Provided. For the year ended September 30,2019, eligible retirees
[ j and beneficiaries received a monthly HIS payment equal to the number of years of
creditable service completed at the time of retirement multiplied by$5. The
payments are at least $30 but not more than $150 per month,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 can include Medicare.
Contributions. The I IIS Plan is funded by required contributions from FRS
participating employers as set by the Florida Legislature. Employer contributions are
a percentage of gross compensation for all active FRS members. For the year ended
September 30, 2019, the contribution rate ranged between 1.66 percent and 1.66
Li percent of payroll pursuant to Section 112.363, Florida Statutes. The District
contributed 100 percent of its statutorily required contributions for the current and
[1 preceding three years. 111S Plan contributions are deposited in a separate trust fund
from which HIS payments are authoriicd. IIIS Plan benefits arc not guaranteed and
arc subject to annual legislative appropriation. In the event the legislative
r ' appropriation or available funds fail to provide full subsidy benefits to all participants,
benefits may be reduced or cancelled.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the HIS Plan. At September
30, 2019, the District reported a 1 IIS liability of$689,001 for its proportionate share
of the net ILLS Plan's net pension liability. I he net pension liability was measured as
of.lune 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
District's proportionate share of the net 111S liability was based on the District's
IMMOKALEE FIRE CONTROL DISTRICT Page 38 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H - RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN,CONTINUED
Health Insurance Subsidy (HIS) Plan,continued
2018-19 fiscal year contributions relative to the total 2018-19 fiscal year
contributions of all participating members. At September 30,2019,the District's
proportionate share was .006157845 percent,which was a decrease of.000145162
percent from its proportionate share measured as of September 30, 2018.
{ For the fiscal year ended September 30, 2019,the District recognized HIS expense
of$91,811. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
Descri tion of Resources of Resources
Differences between expected
and actual experience $ 8,369 $ 844
Change of assumptions 79,780 56,313
Net difference between projected and actual
earnings on HIS pension plan investments 445 -
Changes in proportion and differences between
District HIS contributions and proportionate
share of HIS contributions 121,725 12,970
District contributions subsequent to the
measurement date 8,369 -
E Total $ 218,688 $ 70,127
The deferred outflows of resources related to IIIS, totaling $8,369, resulting from
District contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the year ended September 30, 2020. Other
amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognircd in pension expense over the
remaining service period of 7.1 years as follows:
1'i cal Years 1.ndin
Se tember 30 Amount
2020 $ 22,651
021 22,651
2022 22,651
023 22,652
0 I 22,5 10
1 hercallci 27,017
I ot,i I + 110,19
IMMOKALEE FIRE CONTROL DISTRICT Page 39 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H- RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN, CONTINUED
Health Insurance Subsidy (HIS)Plan, continued
Actuarial Assumptions. The total pension liability in the July 1, 2017, actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.60 percent
Real Payroll Growth 0.65 percent
Salary Increases 3.25 percent, average, including inflation
Municipal Bond Rate 3.50 percent
r Annual Cost Method Individual entry age
Mortality rates were based on the Generational RP-2000 with Projected Scale BB.
Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has
been completed for the Plan.
Discount Rate. The discount rate used to measure the total IIIS liability was
3.50 percent. In general, the discount rate for calculating the total IIIS 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 IIIS
J 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
J municipal bond rate selected by the plan sponsor. The Bond Buyer General
[ 1 Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal
bond index.
r
Sensitivity of the District's Proportionate Share of the Net HIS Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net IIIS liability calculated using the discount rate of
3.50 percent, as well as what the District's proportionate share attic net I llS
liability would be if it were calculated using a discount rate that is 1 percentage-point
lower(2.50 percent)or 1 percentage-point higher (4.50 percent) than the current
rate:
jou Cwrcnt 1"u
Decrease Discount Rate Inci ease
2.50"" 3.50"u 1.50°"
District'~propoitionate share of
the net I IIS liability $ 786,530 $ 689,001 $ 607,771
IMMOKALEE FIRE CONTROL DISTRICT Page 40 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H - RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED
Health Insurance Subsidy (HIS) Plan, continued
Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's
fiduciary net position is available in the separately issued FRS Pension Plan and
Other State Administered Comprehensive Annual Financial Report(FRS CAFR)
dated June 30, 2019.
El The FRS CAFR and actuarial reports may also be obtained by contacting the
E Division of Retirement at:
Department of Management Services
E Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce_operations/retirement/publications
Payables to the Pension Plan. At September 30, 2019, the District reported a
payable of$0 for the outstanding amount of contributions to the ITIS plan required
for the fiscal year ended September 30, 2019.
E �
FRS- Defined Contribution Pension Plan
Me 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 1 RS defined benefit plan. District
employees participating in DROP arc not eligible to participate in the Investment
Plan. hmploycr and employee contributions, including amounts contributed to
individual member's accounts, arc 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 arc established and may be amended by the
Florida i egislature. 1 he Investment Plan is funded with the same employer and
employee contribution rates that are based on salary and membership class(Regular
Class, Plected County Officers, etc.), as the 1.16 defined benefit plan. Contributions
IMMOKALEE FIRE CONTROL DISTRICT Page 41 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE H - RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS -Defined Contribution Pension Plan, continued
are directed to individual member accounts, and the individual members allocate
contributions and account balances among various approved investment choices.
Costs of administering the plan, including FRS Financial Guidance Program, are
funded through an employer contribution of 0.06 percent of payroll and by forfeited
benefits of plan members. Allocations to the investment member's accounts during
1 .1 the 2017-18 fiscal year were as follows:
3 Percent of Gross Sala,
Class(2) Em lo.cc Em,loser<1 Em;lo',cr(3
Florida Retirement System,Regular 3.00 8.26 8.47
Florida Retirement System,Senior Management Service 3.00 24.06 25.41
Florida Retirement System,Special Risk 3 00 24.50 25.48
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 14 03 14.60
Florida Retirement System,Reemployed Retiree (2) N A N A
Florida Retirement System,Elected Official 3.00 48 70 48.82
111 Notes:
(I) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates,other than for DROP participants,include.06 percent for administrative costs for
the Investment Plan. Rates for 7/I/18 630/19.
(2) Contribution rates arc dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates,other than for DROP participants,include.06 percent for administrative costs for
the Investment Plan. Rates for 7 119 6 30/20.
111
As defined by the Plan.
13
For all membership classes, employees arc 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 Pian, the member
must have the years of service required for I RS Pension Plan vesting(including the
• service credit represented by the transferred funds) to be vested for these funds and
the earnings on the funds. Nonvcstcd employer contributions are placed in a
suspense account for up to 5 years. If the employee returns to 1 RS covered
employment within the 5-year period, the employee will regain control over their
account. lithe employee does not return within the 5 year period, the employee will
forfeit the accumulated account balance. For the fiscal year ended September 30,
2019, the information for the amount of forfeitures was unavailable from the SI3A;
however, management believes that these amounts, if any, would be immaterial to
the District.
IMMOKALEE FIRE CONTROL DISTRICT Page 42 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2019
NOTE H- RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED
FRS-Defined Contribution Pension Plan, continued
After termination and applying to receive benefits, the member may rollover vested
funds to another qualified plan, structure a periodic payment under the Investment
Plan, receive a lump-sum distribution, leave the funds invested for future distribution,
or any combination of these options. Disability coverage is provided; the member
may either transfer the account balance to the FRS Pension Plan when approved for
[ I 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.
[ i
The District's Investment Plan pension expense totaled $213,130 for the fiscal year
ended September 30, 2019.
Payables to the Investment Plan. At September 30, 2018,the District reported a
payable of$0 for the outstanding amount of contributions to the Plan required for the
fiscal year ended September 30, 2019.
Effective January 2019, the District began offering a 457(b) Deferred Compensation
Plan to all employees which allows for salary deferrals with no employer
contributions.
Li
NOTE 1 - PROPERTY TAXES
Property taxes are levied after formal adoption of the District's budget and become
due and payable on November 1 of each year and arc delinquent on April 1 of the
r following year. Discounts on property taxes arc allowed for payments made prior to
the April I delinquent date. Tax certificates arc sold to the public for the full amount
of any unpaid taxes and must be sold not later than June 1 of each year. the billing,
collection, and related recordkceping of all property taxes is performed for the
District by the Collier County Tax Collector. No accrual for the property tax levy
becoming due in November 2019 is included in the accompanying financial
statements, since such taxes arc collected to finance expenditures of the subsequent
period.
Procedures for collecting delinquent taxes, including applicable tax certificate sales
and tax deed sales, arc provided for by Florida Statutes. I he enforceable lien date is
approximately two years after taxes become delinquent and occurs only upon request
IMMOKALEE FIRE CONTROL DISTRICT Page 43 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE I- PROPERTY TAXES, CONTINUED
of a holder of a delinquent tax certificate. As of September 30, 2019, $40,930 was
due from the Collier County Tax Collector for ad valorem taxes and excess fees.
Important dates in the property tax cycle are as follows:
Assessment roll certified July 1
Millage resolution approved No later than 93 days following
certification of assessment roll
r t Beginning of fiscal year for which
taxes have been levied October 1
r
Taxes due and payable (levy date) November 1 with various discount
provisions through March 31
Property taxes payable-
maximum discount (4 percent) 30 days after levy date
Due date March 31
Taxes become delinquent(lien date) April 1
Tax certificates sold by the Collier
County Tax Collector Prior to June 1
For the year ended September 30, 2019,the Board of Commissioners of the District
1 levied ad valorem taxes at a millage rate of$3.75 per$1,000 (3.75 mills) of the 2018
net taxable value of real property located within the District.
C NOTE.I - IMPACT FEE FUND ACTIVITY
r ' During the year ended September 30, 2019, the Impact Fee Fund had the
following activity:
Amount
Unearned revenue, October 1, 2018 $ 4,993,602
Impact Ice receipts* 1,002,359
Interest income 113,678
I ransfcr In from General Fund -
Commissions (admin fee) - paid to Collier County (10,015)
Capital outlay 356,282
Unearned revenue, September 30, '019 $ 5,743,342
* Includes $102,321 clue from Collier County.
{CC. #
t�..
E.I IMMOKALEE FIRE CONTROL DISTRICT Page 44 of 67
[";;J NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE K- RISK MANAGEMENT
The District is exposed to various risks of loss related to torts;theft of, damage to,
and destruction of assets; errors and omissions; injuries to employees; and natural
disasters.
Insurance programs for general/professional liability, automobile and property are
covered by commercial insurance. The District retains the risk of loss up to a
El deductible amount(ranging from $0 to $2,500)with the risk of loss in excess of this
amount transferred to the insurance carrier with limits of liability of$1,000,000 per
Lj occurrence and$10,000,000 in the aggregate. The District is third party insured
for employee health, dental and vision as well as workers' compensation.
NOTE L- FUND BALANCE ALLOCATIONS
Fund balance was allocated for the following purposes at September 30, 2019:
Nons endable Fund Balance Amount
General Fund
Prepaid expenditures $ 74,639
Total Nonspendable Fund Balance-General Fund $ 74,639
s
3 Assi'med Fund Balance Amount
General Fund
[3 Assigned for fiscal year startup(90 day operations) $ 1,100,000
Disaster reserves 457,53 I
l.lect reserves 369,495
rl Total Assigned Fund Balance General Fund $ 1,927,026
{
NOTE M -POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB)
Plan Description
fhc District's defined contribution OPEB Plan provides the opportunity to obtain
health insurance, pharmacy, dental and vision benefits to its retired employees and
their dependents. The year ended September 30, 2019 was the District's transition
year and as such, the District implemented GASB No. 75 "Accounting and Financial
Reporting for Postemployment Benefits Other 1 han Pensions". GAS13 No. 75
IMMOKALEE FIRE CONTROL DISTRICT Page 45 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Plan Description, continued
requires the District record its actuarially determined total OPEB liability as well as
the restatement of the District's beginning net position balance for the year ended
September 30, 2018.
All retired full-time employees are eligible for OPEB benefits if actively employed by
the District immediately before retirement. As of September 30, 2019,there were
retirees eligible to receive benefits. At September 30, 2019 there were thirty two
(32) active District employees and one (1) inactive. The benefits are provided both
El with contractual or labor agreements. The benefits may require contribution from the
retirees, depending on certain specified criteria and, in particular, length of creditable
employment. The minimum retirement age is 62. The minimum years of service
requirement is 10 years.
.r The retiree's premiums for these benefits totaled $7,151 during the year ended
September 30,2019, of which the District paid $7,151.
Funding Policy
The District's OPEB benefits arc unfunded. The retiree is eligible for benefits under
E.1 the District's health and pharmacy plan, but is obligated to reimburse the District for
[1 100 of the cost of the retiree's health coverage. As such, the District has no
ultimate obligation For the retiree's health insurance premium. The District acts as
agent for the retiree on a pay-as-you go basis and recognises expenditures at the
time the premiums are due. The District does, however, incur the cost of premium
rate being increased on its active employees due to providing coverage to its retirees.
1-he District has not determined if a separate trust fund or equivalent arrangement will
be established into which the District would make contributions to advance-fund the
obligation. iherefore, no separate financial statement is issued. All required
disclosures are presented herein. I he Plan's measurement date was September 30,
2019
n
IMMOKALEE FIRE CONTROL DISTRICT Page 46 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Funding Policy, continued
The retiree pays 100%of the retiree health only coverage for Administration and
55%for high risk less the FRS health insurance subsidy(HIS) reimbursement amount
} until age 65. The retiree may purchase dependent coverage through the District. At
age 65 the retiree then must move to Medicare but may continue to purchase dental
and vision coverage through the District. The District finances the benefits on a
L 3 pay-as-you-go basis and recognizes expenditures at the time the premiums are due.
[. The District subsidizes the premium rates paid by retirees by allowing them to
participate at blended premium rates for both active and retired employees. These
rates provide an implicit subsidy for retirees because, on an actuarial basis, retiree
claims are expected to result in higher costs to the plan on average than those of
active employees.
The projection of future benefit payments for an ongoing plan involves estimates of
the value of reported amounts and assumptions about the probability of occurrence of
events far into the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding the funded
status of the plan and the annual required contributions of the employer arc subject to
L.] continual revision as actual results are compared with past expectations and new
estimates arc made about the future. The schedule of funding progress presents
multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
r1
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes arc based on the substantive
plan (the plan as understood by the employer and plan members) and include types
of benefits provided at the time of each valuation and the historical pattern of sharing
of benefit costs between the employer and plan members to that point. I he methods
and assumptions used include techniques that arc designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of'assets,
consistent with the long term perspective of the calculations.
IMMOKALEE FIRE CONTROL DISTRICT Page 47 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE M -POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Actuarial Methods and Assumptions, continued
At September 30, 2019,the District's Net OPEB Liability of$530,252 was
measured as of September 30, 3019, and was determined by an actuarial valuation
as of that date using the alternate measurement method. The following actuarial
assumptions and other inputs were applied to all periods included in the
[ measurement:
L
' The following simplifying assumptions were made:
r
Mortality-Life expectancies were based on RP2000 Mortality Tables for Males and
Females projected 10 years.
Annual healthcare cost trend using the Society of Actuaries Long-Run Medical Cost
Trend Model baseline assumptions with an initial rate of 4.6% per year trending to
4.70%by 2028.
Turnover-Non-group-specific age-based turnover data from GASB Statement 45
were used as the basis for assigning active members a probability of remaining
employed until the assumed retirement age and for developing an expected future
working lifetime assumption for purposes of allocating to periods the present value
of total benefits paid.
[ 3 Amortization Period: Rolling 20 year amortization
[ ] Amortisation Method: level percentage of payroll
1 he discount rate was 4.23% (for 2018)(2.8°o for 2017)and was based on the 20
Year Municipal Bond Rate with AA/Aa or higher.
r
Entry age normal cost method was used.
Salary Increases 2.50°o
Discount Rate 4.23°o
I he I'RS salary scale was used
Participation percentage: 50°0
I lie actuarial assumptions used in the September 30, 2019 valuation were based on
results of an actuarial experience study performed for the FRS Retirement Plan
I he rationales for selecting each of the assumptions used in the financial accountin '
valuation and for the assumptions changes Summarised above arc to best reflect the
current market conditions and recent plan experience.
IMMOKALEE FIRE CONTROL DISTRICT Page 48 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Changes in the Net OPEB Liability
Amount
Balance at September 30,2018 $ 507,058
, Changes for the Year:
[
Service Cost 29,274
Interest Cost on Total OPEB Liability 16,639
Change in Benefit Terms
Difference Between Expected and Actual Experience 85,904
Changes in Assumptions (75,615)
Benefit Payments 33,008
Net Changes 23,194
Balance at September 30,2019 $ 530,252
The following presents the net OPEB liability of the District as well as what the
District's net OPEB liability would be if it were calculated using a discount rate that
is I percent higher or 1 percent lower than the current discount rate.
100 Decrease Current Rate 1°0 Increase
I 3.23°0 4.23°° 5.23°°
[1 Net OPEB Liability $ 603,491 $ 530,252 $ 467,328
Mc following presents the net OPFB liability of the District as well as what the
District's net OPFB liability would be if it were calculated using hcalthcarc trend
rates that arc 1 percent higher or 1 percent lower than the current hcalthcarc trend
rate.
Decrease I rend Rate I Increase
0 6 6°. 3.0 7.6°. 4 0 8 6".
Net ON-B Liability $ I 18,0 I 1 $ 530,252 $ 631,187
IMMOKALEE FIRE CONTROL DISTRICT Page 49 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Changes in the Net OPEB Liability, continued
For the year ended September 30,2019,the District recognized OPEB expense
of$23,194. At September 30, 2019,the District reported deferred outflows of
resources and deferred inflows of resources related to OPEB from the following sources:
L
1 1 Deferred Deferred
Outflows of Inflows of
j Resources* Resources*
f 1 Differences Between Expected and
L
Actual Experience $ - $ -
Changes in Assumptions - -
Net difference between projected
and actual earnings -
° Employer contribution subsequent
to measurement date -
';, Total S - -
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended September 30: Amount*
2019 $
2020
r3 2021
2022
2023 -
l otal Thereafter
$
*Per GASB No. 75 paragraph 43(a)since the District used the alternative measurement
method the effects of assumptions are rceogniiccl immediately. As such, since the Plan
holds no assets their deferred inflows outflows arc icro.
IMMOKALEE FIRE CONTROL DISTRICT Page 50 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE N- DEFICIT UNRESTRICTED NET POSITION (NET ASSETS)
During the year ended September 30, 2019, the District's unrestricted net position
(net assets)balance was again a deficit and totaled $(2,019,085), due substantially to
recording the current year actuarially determined net pension liability of$4,742,008
and the net OPEB liability of$530,252. As a result,the District's total net position
became a deficit at September 30, 2019 in the amount of$554,721. The District's
L total available fund balance at September 30, 2019 remains approximately equal to
five(5)months of actual expenditures. However, the Board has previously assigned
$1,927,026 of the $2,001,665 available fund balance for specific purposes.
[ )
During the year ended September 30, 2018,the District's unrestricted net position
(net assets)balance was again a deficit and totaled $(1,289,267), due substantially to
recording the current year actuarially determined net pension liability of$4,323,634
and the net OPEB liability of$507,058. The District's total available fund balance at
September 30, 2018 remains approximately equal to five(5) months of actual
expenditures. However, the Board has previously assigned $1,842,867 of the
$1,899,557 available fund balance for specific purposes.
During the year ended September 30, 2017,the District's unrestricted net position
(net assets) balance was again a deficit and totaled$(669,338), due substantially to
recording the current year actuarially determined net pension liability of$4,045,107.
The District's total available fund balance at September 30, 2017 remains
[3 approximately equal to five (5) months of actual expenditures. Ilowever, the Board
has previously assigned $1,455,453 of the$1,656,297 available fund balance for
specific purposes.
During the year ended September 30, 2016, the District's unrestricted net position
(net assets) balance was again a deficit and totaled $(157,053), due substantially to
recording the current year actuarially determined net pension liability of$2,991,948.
Ile District's total available fund balance at September 30, 2016 remains
approximately equal to six (6) months of actual expenditures. Ilowever, the Board
has assigned $1,340,382 of the $1,705,121 available fund balance for specific
purposes.
During the year ended September 30, 2015, the District's unrestricted net position
(net assets) balance became a deficit and totaled $(58,458), clue substantially to
recording the current year actuarially determined net pension liability of$1,226,192.
I he District's total available fund balance at September 30, 2015 remains
approximately equal to four (4) months of actual expenditures. I lowever, the 13oarcl
assigned $I,057,074 of the$1,472,132 available fund balance for specilied
purposes.
IMMOKALEE FIRE CONTROL DISTRICT Page 51 of 67
NOTES TO THE FINANCIAL STATEMENTS
September 30,2019
NOTE O - COMMITMENTS
In September 2018, the District entered into an agreement with Collier County(the
"County") with the intention of constructing a multi-purpose Public Safety Complex
(PSC) in the Town of Ave Maria. The County is in possession of four acres of land,
three of which are known as demised premises. The demised premises are intended
to be developed into the PSC. This PSC will be utilized for fire, sheriff, and
` emergency medical services. In connection to the cost of constructing the PSC,
[ j Immokalee Fire Control District paid $121,000 to the County for the land as the
District intends to own the PSC. In doing so,the County agreed to pay the District
[ annual rent in the amount of$4,033 over the course of 30 years. The District is
[ j responsible for all costs associated with the construction of the building, including
surveying, permitting, architect fees, consultant fees,and other professional services
relating to the construction of the PSC.
NOTE P- LEASED VEHICLES
Effective October 1, 2018, the District sold three(3) staff vehicles then leased back
the three (3)vehicles under a thirty six (36) month operating lease agreement with a
monthly payment of$1,566. The minimum annual lease payments are as follows:
Years Ending
September 30 Amount
E 3 2020 $ 18,792
1 2021 18,792
$ 37,584
C]
r 1 Lease expense for the year ended September 30, 2019 was $22,383.
NOTE Q - SUBSEQUENT EVENTS
In January 2020, the District entered into a contract in the amount of$10,044,830
for the construction of a multi purpose Public Safety Complex (Station 32) to be
located in Ave Maria, 1 lorida. I he District intends to fund the project through use of
impact fees and a loan. I he contract is contingent upon the District's ability to obtain
a loan in the amount of sixty percent on the construction contract amount.
itr t:
1.
REQUIRED SUPPLEMENTARY
L J INFORMATION
r ) OTHER THAN MD&A
t
Ci
C7
0
r
IMMOKALEE FIRE CONTROL DISTRICT Page 52 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE -BUDGET AND ACTUAL- GENERAL FUND-
SUMMARY STATEMENT
Year Ended September 30,2019
General Fund
Variance
Original Final Favorable
Budget Bud et Actual Unfavorable
REVENUES
Ad Valorem taxes $ 3,831,780 $ 3,920,479 $ 3,920,526 $ 47
aIntergovernmental revenues:
Federal public safety grant-SAFER/AFG 65,000 65,000 - (65,000)
II State firefighter supplemental 3,840 3,840 5,087 1,247
Local government grant-CDGB 259,000 925 925
® Inspection fees - - -
Public safely services -
Miscellaneous.
Ill Interest 9,000 25,000 35,392 10,392
Other 74,960 161,110 161,794 684
IN Reserves brought forward 1,884,651 1,899,557 1,899,557
TOTAL REVENUES 6128,231 6075,911 4,123,724 (1,952,187
a
EXPENDITURES
IRCurrent
Public safety
® Personnel services 3,693 619 3 445,059 3 393 979 51,080
Operating expenditures 640,718 597,131 602,229 (5,098)
Capital outlay 292,500 786,074 769.639 16,435
INDebt service
Principal reduction 55,092 42,226 19,843 22,383
aInterest and fiscal charges
Assigned-90 day reserve 1.007 X953 1100,000 - 1,100,000
a Assigned-Fleet Reserves 369 495369,495
111 Assigned-Accrued Liabilities 438 349 - -
Assigned-Disaster Reserves 500 000 - 500,000
aAssigned-800 Radio Reserves -
Assigned-GASI3 reserve -
■ Reserves-unassigned
TOTAL EXPENDITURES 6 128 231 6 839 985 1 785 690 2 054 295
• EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 7611171 661 966 102 108
III OILIER FINANCING SOURCES(USES)
Proceeds from capital leases 764,074 761 074
® Proceeds from disposition of capital assets
10 rALO'IHER FINANCING SOURCES(USES) 764(171 761 074
® NET CHANGE IN FUND 13ALANCE $ t, 102 108 4 102 108
a FUN))ISA LANCE-Beginning 1899,557
FUND IIA LANCE-Eliding S ____2,00 l 665
I he accompanylll)a notes Ute an 113(C)'l[II pita a this statement
IMMOKALEE FIRE CONTROL DISTRICT Page 53 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL - GENERAL FUND
DETAILED STATEMENT
Year Ended September 30,2019
General Fund
Var ance
' Ong nal Final Favorable
Bud et Bud et Actual (Unfavorable
REVENUES
Ad Valorem taxes $ 3,831,780 $ 3,920,479 $ 3,920,526 $ 47
Intergovernmental revenues: -
Federal public safety grants-SAFER/MG 65,000 65,000 - (65,000)
L j State firefighter supplemental 3,840 3,840 5,087 1,247
Local government grants-CDGB 259 000 925 925 -
IInspection fees - -
Publtc safety services - - -
EC i Miscellaneous:
t Interest income 9,000 25,000 35 392 10,392
r 't Seminole contract 50,000 -
L -1 PILT farm workers village - 6,150 6 150 -
Donations 100 100 500 400
User fees-rent 3,459 3,459 5,818 2 359
Other income 21 401 151,401 149 326 2 075
174 Subtotal 4,243,580 4,176,354 4,123,724 (52,630)
Reserves brought forward 1884,651 1899 557 1 899 557
f'
TOTAL REVENUES 6 128,231 6,075,911 4,123,724 1,952,187
EXPENDITURES
PERSONNEL SERVICES
Salaries
Firefighters&administrative 1868,551 1,785,000 1,781 291 3,709
EMT incentive pay 4 005 (4:005)
Overtime pay 293,715 218,715 217,665 1,050
Iloliday pay 52 000 52,00(1 50,81 1 1 189
LI."} Vacation&sick sell back pay 22 000 28,000 38.947 (10 947)
Separation pay
13 Payroll taxes
Social Security 171,074 165,60(1 157,945 7 655
l3cnclits
0 Retirement 525,535 510,000 499,843 10 157
Group insurance 656.770 581,770 535.071 16 699
I ' Workers compensation 103,971 103 971 108,401 (4,127)
Unemployment
S(J13"1'Ol'AL-PERSONNEL SERVICES 3 693 619 3,445 059 3 393,979 51 080
OPI RA PING
Contracted Services
Physicals 1 000 1,000 22,000 (21,000)
Bank service charges -
I coal fees 6 000 20.000 32,077 (12.077)
Properly appraiser lees 25,000 25,000 27,746 (2,716)
lax collection Ices 78 186 78 186 79,457 (971)
Contracted services 47 575 57,575 58,177 (602)
Generators
Pest control 1,125 1125 976 149
Subtotal Contracted service~ 159 186 183 186 220 433 17 247
r
I he accompanying notes arc an integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 54 of 67
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL- GENERAL FUND
DETAILED STATEMENT-CONTINUED
Year Ended September 30,2019
General Fund
Variance
Original Final Favorable
Bud et Bud et Actual (Unfavorable
OPERATING,CONTINUED
Operating
Education and training 30,000 30,000 15,449 14,551
Travel 9,000 9,000 15,222 (6,222)
L i Communications-telephone 22,000 22,000 18,062 3,938
Postage 500 500 651 (151)
I Utilities 22,840 22,840 20,713 2,127
Explorer program - - - -
Li Liability insurance 60 270 60 270 46 317 13 953
Subtotal-Operating 144,610 144,610 116,414 28,196
Maintenance
Vehicle 122,587 70,000 72,188 (2,188)
Equipment-firefighter and rescue 13,000 13,000 11,836 1 164
Office equipment - - 271 (271)
Equipment lease 22,383 (22,383)
Communications-radio - - -
Building 45,450 45,450 38,036 7,414
Bunker gear 1,000 1,000 760 240
Cascade system - 1,465 1,465
Subtotal-Maintenance 182,037 129,450 146 939 17,489
Legal advertising 3,350 3,350 3,183 167
Supplies
r - Office 3,960 3,9(10 2.236 1,724
Shipping 3,000 3,000 350 2,650
I•irefghler rescue 20,500 20,500 20,425 75
a
St.dion-,janitorial 9,000 9.000 5,107 3,893
Iraining -
N fuel and oil 60,000 45,000 36.116 8,884
Uniforms 20,000 20,000 15,300 4,700
■ I'imployce - - -
Physical fitness equipment 500 500 500
® Inter-departmental - -
Computer software and training 12,000 12.000 13,783 (1,783)
IS
Miscellaneous 2 000 2,000 4 738 (2,738)
Bunker gent 10 000 10,000
1,516 8,484
I ire prevention -
O Comnnutication(radio) - 1.863 (1,863)
Communication(phone) - -
. Station-non janitorial 2,276 (2,276)
Public education 1,000 1,000 821 179
N I urniturc 1,000 1,000 969 31
Computer equipment 1575 1,575 4.683 (3,108)
II Fire Inspection -
Operating - -
Minor equipment 4,500 4,500 170 4,380
N Tires&batteries -
he accompanying notes are all integral part of this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 55 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL- GENERAL FUND
DETAILED STATEMENT- CONTINUED
Year Ended September 30,2019
General Fund
Variance
Original Final Favorable
Bud et Bud et Actual (Unfavorable
Books and dues 2,500 2,500 4,957 (2 457
Subtotal-Supplies 151,535 136,535 115 260 21 275
SUBTOTAL-OPERATING EXPENDITURES 640,718 597,131 602,229 (5,098
[ i
Capital Outlay
{ 22 Land 259,000 10,000 - 10,000
1. J Firefighter rescue equipment 10,000 5.000 3,362 1,638
Communication equipment 10,000 -
1 1 Building -
500 (500)
Vehicles 764,074 764,074 -
Bunker gear 11 500 5,000 - 5,000
Furniture-Office 1,703 (1,703)
71 Station equipment - -
Computer equipment 2,000 2,000 - 2 000
SUBTOTAL CAP!!AL OUTLAY 292,500 786,074 769,639 16,435
Debt service
Principal retirement 55,092 42,226 19,843 22,383
, Interest charges and fiscal -
SUBTOTAL-DEBT SERVICE 55 092 42 226 19 843 22 383
El
Assigned-90 day OPS 1.007 953 1100,000 1 100,000
Ell Assigned-Fleet Reserves 369,495 369.495
Assigned-Accrued Liabilities 438:349
Assigned-Disaster Reserves 500,000 500.000
Assigned-800 Radio Reserves
Assigned-GASI3 Reserves
Reserves-Unassigned
fl TOTAL EXPENDITURES 6 128 231 6 839,985 4 785 690 2 054 295
- EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 761 071 661 966 102 108
E' O11IER FINANCING SOURCES(USES)
Proceeds from capital leases 761 071 764 071
E' Proceeds lions disposition of capital assets
I OTAL OTHER FINANCING SOURCES(USES) 761(1 I 761 071
El
NET CHANGE IN FUND 13ALANCE $ li 102 108 ti, 102 108
El
I,UNI)BALANCE-BEGINNING: 1899
El
I,t NI)BALANCE-ENDING \ 2 001 665
I he accompam ina' notes are an integral pal t 01 this statement.
IMMOKALEE FIRE CONTROL DISTRICT Page 56 of 67
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE- BUDGET AND ACTUAL-IMPACT FEE FUND
SUMMARY STATEMENT
Year Ended September 30,2019
Impact Fee Fund
Variance
Original Final Favorable
Bud et Bud et Actual (Unfavorable
REVENUES
J Ad Valorem taxes $ - $ - $ - $ -
Impact fees 787,359 900,000 252,619 (647,381)
Intergovernmental revenue-grants - - - -
[ 3 Miscellaneous:
C Interest 21,000 95,000 113,678 18,678
1 1 Other - - -
Cash brought forward 4,451,806 4,993,602 - 4,993,602
TOTAL REVENUES 5,260,165 5,988,602 366,297 5,622,305
EXPENDITURES
Current
Public safety
Personnel services - - - -
Operating expenditures 62,000 13,500 10,015 3,485
Capital outlay 4,000,000 150,000 356,282 (206,282)
Debt service
Principal reduction - -
1 Interest and fiscal charges -
�7 Cash carried forward 1,198,165 5,825,102 5,825,102
TO I AL I XPI-NDI I'URI'S 5,260,165 5,988,602 366,297 5 622,305
EXCESS OF REVENUES
r 1 OVER EXPENDITURES
O HHIE R FINANCING SOURCES(USES)
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES(USES)
NET CHANGE IN FUND BALANCE $ $ $
1'UNI) BALANCE-Beginning
NUM)BALANCI, Ending
I he accompanying notes arc an integral part of this statement.
Page 57 of 67
2015 2014
0.006183105% 0.006001750%
$ 798,631 $ 366,195
$ 1298,578 $ 1,199,275
7 61.50% 30 53%
{{ 7
92.00% 96 09%
2015 2014
236175 $ 209.820
1 236 175 209 820
$ - $
111 $ 1,298,578 $ 1,199.275
18 19"° 1 7 50°o
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Page 58 of 67
2015 2014
0.004192421% 0.004035317%
$ 427,561 $ 377,312
$ 1,298,578 $ 1,199,275
32.93% 31.46%
J 0 50% 0.99%
1
2015 2014
f b 19237 $ 14244
19,237 14 244
E3 $ 1,298,578 $ 1 199 275
0
I48°o 119°o
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IMMOKALEE FIRE CONTROL DISTRICT Page 59 of 67
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30,2019
Changes of Assumptions
Actuarial assumptions for both cost-sharing defined benefit plans are reviewed
annually by the Florida Retirement System Actuarial Assumptions Conference. The
I,] FRS Pension Plan has a valuation performed annually. The HIS Program has a
valuation performed biennially that is updated for GASB reporting in the year a
valuation is not performed. The most recent experience study for the FRS Pension
Plan was completed in 2019 for the period July 1,2013, through June 30, 2018.
Because the HIS Program is funded on a pay-as-you-go basis,no experience study
[ has been completed for that program. The actuarial assumptions that determined the
[ 1 total pension liability for the HIS Program were based on certain results of the most
recent experience study for the FRS Pension Plan.
rj
The total pension liability for each cost-sharing defined benefit plan was determined
using the individual entry age actuarial cost method. Inflation increases for both plans
is assumed at 2.60%. Payroll growth, including inflation, for both plans is assumed at
3.25%. Both the discount rate and the long-term expected rate of return used for
FRS Pension Plan investments was reduced from 7.00% to 6.90%. The Plan's
fiduciary net position was projected to be available to make all projected future
benefit payments of current active and inactive employees. Therefore, the discount
rate for calculating the total pension liability is equal to the long-term expected rate of
return.
Because the I IIS Program uses a pay-as-you-go funding structure, a municipal bond
rate was decreased from 3.87°0 to 3.50°0 and was used to determine the total pension
L liability for the program (Bond Buyer General Obligation 20-Bond Municipal Bond
Index). Mortality assumptions for both plans were based on the Generational
RP-2000 with Projection Scale BB tables.
r
Florida Retirement System Pension Plan
I here were changes in actuarial assumptions. As of June 30,2019, the inflation rate
assumption remained at 2.6 percent, the real payroll growth assumption was 0.65
percent, and the overall payroll growth rate assumption remained at 3.25 percent.
I he long term expected rate of return was reduced from 7.00 percent to 6.90
percent.
I lcalth Insurance Subsidy Pension Plan
I he municipal rate used to determine total pension liability decreased from 3.87
percent to 3.50 percent.
IMMOKALEE FIRE CONTROL DISTRICT Page 60 of 67
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2019
( Pension Expense and Deferred Outflows/Inflows of Resources
In accordance with GASB 68, paragraphs 54 and 71, changes in the net pension
liability are recognized in pension expense in the current measurement period, except
as indicated below. For each of the following, a portion is recognized in pension
expense in the current reporting period, and the balance is amortized as deferred
outflows or deferred inflows of resources using a systematic and rational method over
a closed period,as defined below:
• Differences between expected and actual experience with regard to economic
and demographic factors-amortized over the average expected remaining
service life of all employees that are provided with pensions through the
pension plan (active and inactive employees)
• Changes of assumptions or other inputs-amortized over the average
expected remaining service life of all employees that are provided with
pensions through the pension plan (active and inactive employees)
• Changes in proportion and differences between contributions and
proportionate share of contributions - amortized over the average expected
remaining service life of all employees that are provided with pensions through
the pension plan (active and inactive employees)
3 • Differences between expected and actual earnings on pension plan investments
-amortized over five years
I'mploycr contributions to the pension plans from employers arc not included in
collective pension expense. I lowever, employee contributions arc used to reduce
pension expense.
I he average expected remaining service life of all employees provided with pensions
through the pension plans at June 30, 2019, remained at 6.4 years for I.RS and 7.2
years for ITIS.
IMMOKALEE FIRE CONTROL DISTRICT Page 61 of 67
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS GASB 75
Changes in Employer's Net OPEB Liability and Related Ratios as of September 30:
Net OPEB Liability 2019 2018
Service Cost $ 29,274 $ 31,359
Interest Cost on Total OPEB Liability 16,639 13,731
Changes in Benefit Terms - -
Differences Between Expected and Actual Experience 85,904 116,389
Changes in Assumptions (75,615) (100,573)
Benefit Payments (33,008) (25,607)
r Net Change in net OPEB Liability 23,194 35,299
Net OPEB Liability-Beginning of Year 507,058 471,759
} Net OPEB Liability-End of Year $ 530,252 $ 507,058
[
1 1 NOTE: Information for FY 2017 and earlier is not available.
Plan Fiduciary Net Position as of September 30:
2019 2018
Contributions-Employer $ 33,008 $ 25,607
Net Investment Income - -
Benefit Payments (33,008) (25,607)
Administrative Expense
Net Change in Fiduciary Net Position
Fiduciary Net Position-Beginning of Year
Fiduciary Net Position-End of Year $ $
Net OPEB Liability $ 530,252 $ 507,058
.l Fiduciary Net Position as a°0 of Net OPEB Liability 0.00°0 0.00°0
[Ti Covered-Employee Payroll
Net OPEB Liability as a°o of Payroll
0
* Because this OPEB plan does not depend on salary, no information is provided.
fl
NOTE: Information for FY 2017 and earlier is not available.
Notes to the Schedule:
Benefit Changes None
Changes of Assumptions The discount tate was chan:'ed as hollows
9 30 17 .80
9 30 18 4. 3°0
9 30 19 f. '3°0
Population covered by Plan: 32 active I retired
Plan has no specific trust established $0 assigned fot OP1 B
E]
Li ADDIIONAL REPORTS
[]
Li
n
D
[]
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k
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Affiliations
S cA
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
ScCompany, PA Pi sate Companies Practice Section
las Dis
'. Certified Public Accountants&Consultants
Page 62 of 67
r
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF BASIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
[.3
Board of Commissioners
Immokalee Fire Control District
502 last New Market Road
Immokalee, Florida 34142
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America, the basic financial
statements of the governmental activities and each major fund of Immokalee Fire Control District
(the "District")as of and for the year ended September 30, 2019 and the related notes to the
financial statements which collectively comprise the District's basic financial statements as listed in
the table of contents and have issued our report thereon dated February 3,2020.
Li
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements,we considered the District's
internal control over financial reporting (internal control) to determine the audit procedures that arc
appropriate in the circumstances for the purpose of expressin' our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control. Accordingly, we do not express an opinion on the effectiveness of the District's
internal control.
A deficiency in internal control exists when the design or operation of a control docs not allow
13 management or employees, in the normal course of performin(' their assigned functions. to prevent
or detect and correct misstatements on a timely basis.
II
a
INTEGRITY Y SERVICE ........ . EXPERIENCEk
■ 1262.1 World Pia,a I ant' IlinIduih SS • Fort Myers. H 33007 • Phone. (239) 333 2090 • Fax. (239) 333 2097
Page 63 of 67
A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the Immokalee Fire Control
District's basic financial statements will not be prevented or detected and corrected on a timely
basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness,yet important enough to merit attention by those
charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
J 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 as
defined previously. However, material weaknesses may exist that were not identified.
[ ]
r Compliance and Other Matters
As part of obtaining reasonable assurance about whether Immokalee Fire Control District's basic
financial statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which
could have a direct and material effect on the determination of basic financial statement amounts.
I-Iowever, 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
Auditin Standards.
The District's Response to Findings
[ ] The District's response to the findings identified in our audit is described in the accompanying
Management's Response to Independent Auditor's Report to Management. "I he District's
response was not subjected to the auditing procedures applied in the audit of the financial
0 statements and, accordingly, we express no opinion on it.
I 1
Purpose of This Report
"I he 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
District's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
76:44A41-444) 1:44/ ) • A .
I USCAN & COMPANY, P.A.
fort Myers, 1'lorida
l'ebruary 3, 2020
Affiliations
j' ,[ ' S i(A AN Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Company, PA Private Companies Practice Section
_ fax Dw.v..,
r3 Certified Public Accountants&Consultants
Page 64 of 67
U
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415,FLORIDA STATUTES
Board of Commissioners
I. 3 Immokalee Fire Control District
502 1;ast New Market Road
Inunokalee, Florida 34142
We have examined Immokalee Fire Control District's compliance with Section 218.415, Florida
Statutes, regarding the investment of public funds during the year ended September 30, 2019.
Management is responsible for Immokalee Fire Control District's compliance with those
requirements. Our responsibility is to express an opinion on Immokalee Fire Control District's
compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a test
basis, evidence about Immokalee Fire Control District's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our examination provides a reasonable basis for our opinion. Our examination does not
provide a legal determination on Immokalee Fire Control District's compliance with specified
In requirements.
In our opinion, Immokalee Fire Control District complied, in all material respects. with the
aforementioned requirements for the year ended September 30, 2019.
1 his report is intended solely for the information and use of Immokalee Fire Control District and
the Auditor General, State of Florida, and is not intended to be and should not be used by anyone
other than these specified parties.
7:AlAt‘4t) 41Aiiip it,„vt, ?* 4.
I USCAN & x OMPANY, P.A.
Fort Myers I'lorida
l ebruary 3, 20 0
ej
INTEGRITY SERVICE EXPERIENCE®
12621 World P1 1irr I •1nt . Budding 55 • l ort Myers, FL 33907 • Phone: (239) 333 2090 • I ax; C391333 ^_097
1.3
Affiliations
]1 '1[J Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
& Company, PA Pn,ate Compamex Practice Sectron
Tax Divrsron
Ei Certified Public Accountants&Consultants
Page 65 of 67
a
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
L 3 Immokalee Fire Control District
502 East New Market Road
Immokalee, Florida 34142
f We have audited the accompanying basic financial statements of Immokalee Fire Control District
(the "District") as of and for the year ended September 30, 2019 and have issued our report
thereon dated February 3, 2020.
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 Auditin
Standards, issued by the Comptroller General of the United States of America and Chapter
10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's
Report on Internal Control over Financial Reporting and Compliance and Other Matters based on
an audit of the financial statements performed in accordance with Government Auditing Standards
and Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which arc dated
Ei February 3, 2020, should be considered in conjunction with this report to management.
cI
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
0 General, which governs the conduct of local governmental entity audits performed in the State of
r , Florida. This letter includes the following information,which is not included in the aforementioned
auditor's reports:
• Section 10.554(1)(i)l., 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 leport Prior year
comments appear to have been resolved.
® • Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. Such
® recommendations were noted to improve financial nlana'ement.
a
® INTEGRITY i,ERVICE .. EXPERIENCE
12621 World flora Lane, Building 55 • Fort Myers, FL 33907 •,Phone: (239) 333 2090 • Fax: (2239) 333 209'
Page 66 of 67
• Section 10.554(1)(i)3.,Rules of the Auditor General, requires that we address
noncompliance with provisions of contracts or grant agreements, or abuse,that have an
effect on the financial statements that is less than material but more than inconsequential.
in connection with our audit, we did not have any such findings.
• Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official
title and legal authority for the primary government and each component unit of the
reporting entity be disclosed in the management letter, unless disclosed in the notes to
the financial statements. The District discloses this information in the notes to the
financial statements.
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be
included as to whether or not the local government entity has met one or more of the
conditions described in Section 218.503(1), Florida Statutes, and identification of the
specific condition(s) met. In connection with our audit, we determined that the District
did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
• Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7),Rules of the Auditor General,we
have applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by same.
• Pursuant to Section 10.554(1)(i)5b.2, Rules of the Auditor General, if a deteriorating
financial condition(s) is noted then a statement is so required along with the conditions
causing the auditor to make such a conclusion. No such conditions were noted.
[] • Pursuant to Section 10.554(1)(i)5.c., Rules of the Auditor General, requires a
statement indicating a failure, if any, of a component unit Special District to provide
financial information necessary to a proper reporting of the component unit within the
r l audited financial statements of this District (F.S. Section 218.39(3)(b)). hhcrc arc no
known component special districts required to report within these financial statements.
• Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our
audit to determine the District's compliance with the provisions of Section 218.415,
l lorida Statutes, regarding the investment of public funds. In connection with our audit,
we determined that the District complied with Section 218.415, l•lorida Statutes as
reported in our independent Accountant's Report on Compliance with Section
218.415, Florida Statutes dated February 3, 2020, included herein.
Page 67 of 67
PRIOR YEAR COMMENTS:
Prior year comments appear to have been resolved and have been removed.
CURRENT YEAR COMMENTS:
No financially significant comments noted.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
[ require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners,management, the Auditor General of the State of Florida and other federal and
t } state agencies. This report is not intended to be and should not be used by anyone other than
i t these specified parties.
4401() (1'1"41 $9-1
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
February 3, 2020
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F '? Immokalee Fire Control District
E E 502 New Market Road East, Immokalee, FL. 34142
Ave Maria Michael J. Choate, Fire Chief
March 20, 2020
Auditor General's Office
Local Government Audits/342
Claude Pepper Building, Room 401
111 West Madison Street
Tallahassee, FL 32399-1450
In connection with the audit for the fiscal year ended 9-30-19 we are pleased to report
r all prior year comments have been resolved and removed, and there are no current
year comments.
The District continues to refine and enhance financial reporting and compliance
functions, and internal controls, policies and procedures. Close communication with our
auditing firm, Tuscan & Co , PA is maintained to ensure we continue to operate in a
manner that assures financial compliance The Board of Fire Commissioners and
management staff are committed to avoiding future possible comments and we maintain
our assurance that future audits will reflect the actions we have taken.
Sincerely
IMMOKALEE FIRE CONTROL DISTRICT
Li
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F
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Administration(239)657-2111 Operations(239)657-8587 fir. Prevention(239)597-9227
Fax(239)657-9489