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Backup Documents 04/12/2022 Item #13ACollier County, Florida Presentation of the 2021 Audit Results to the Board of County Commissioners April 12, 2022 WEALTH ADVISORY I OUTSOURCING I AUDIT, TAX, AND CONSULTING Investment advisory services are offered through Clifton LarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor 13.A.1 Services Performed • Audit of the County's Comprehensive Annual Financial Report for the year ended September 30, 2021, in accordance with Government Auditing Standards • Examination of compliance with applicable Florida Statutes for investments and E911 operations Create Opportunities U- a U r N O N co co r N 0 N N O N C O r O C d N O U U 0 m E a Packet Pg. 574 13.A.1 Independent Auditors' Report Report on Internal Control Over Financial Reporting and On Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (Yellow Book Report) Independent Accountants' Report nn Compliance with specific Florida Statutes as required by Chapter 10.550 Rules of the Auditor General Management Letter as required by Chapter 10.550 Rules of the Auditor General Governance Communication Letter 1WCreate Opportunities 2 U- a U r N O N W co 00 N Packet Pg. 575 13.A.1 Results of Procedures Auditors' Opinion on Financial Statements Unmodified opinion Emphasis of Matter Paragraph Implementation of GAS 84 — Fiduciary Activities —Our opinion was not modified as a result of this matter Independent Auditors' Report on Internal Control No reportable comments of findings Management Letter No reportable comments or findings New reporting included for the County's special districts Independent Accountants' Report Unmodified attestation opinion on compliance Single Audit — In progress Federal OMB delayed and extended for 2021 ' Create Opportunities 2 U_ a U N O N co 00 r N Packet Pg. 576 13.A.1 Required Communications to Governance Scope and timing of audit proceeded as planned Significant accounting policies In accordance with generally accepted accounting principles and consistent with industry practices and standards No difficulties encountered in performing the audit Management was very cooperative, helpful, and professional during the audit process — THANK YOU! Create Opportunities 2 U- a U r N O N W CO CO r N Packet Pg. 577 13.A.1 Thank you again to everyone involved in the audit! LL �a U r N � O N tD O O N N r O N N O N C O r R r C d N N L U U O m c m E t U a r r Q Packet Pg. 578 13.A.2 Clifton LarsonAllen LLP . CLAconnect.com Honorable Board of County Commissioners Collier County, Florida We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County) as of and for the year ended September 30, 2021, and have issued our report thereon dated March 7, 2022. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and Chapter 10.550, Rules of the Auditor General, as well as certain information related to the planned scope and timing of our audit. Professional standards also require that we communicate to you the following information related to our audit. Significant audit findings Qualitative aspects of accounting practices Accounting policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the County are described in Note 1 to the financial statements. As described in Note 19, the County changed accounting policies related to agency funds by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities, in 2021. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the statement of changes in fiduciary net position. We noted no transactions entered into by the County during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: • Management's estimate of the allowance for doubtful accounts for the governmental funds and proprietary funds is based on an analysis of the collectability of these accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimates of claims payable associated with the risk management self- insurance, medical benefits self-insurance, and workers' compensation self-insurance are based on actuarial valuations. We evaluated the key factors and assumptions used to develop these estimates of claims in determining that they are reasonable in relation to the financial statements taken as a whole. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International LL a U V_ N O N W 00 00 N Packet Pg. 579 13.A.2 Honorable Board of County Commissioners Collier County, Florida Management's estimate of the other postemployment benefits (OPEB) liability is based on computations performed by outside specialists, including actuarial computations and assumptions that were relied upon to determine the OPEB liability. We evaluated the key factors and assumptions used to develop the OPEB liability in determining that it is reasonable in relation to the financial statements as a whole. Management's estimate of the net pension liability is based on computations performed by outside specialists, including actuarial computations and assumptions that were relied upon. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole. a U • Management's estimate of the liability for post closure costs relating to portions of the Naples o and Immokalee landfill sites are based on an engineering estimate of unit cost and post closure N acreage applicable to the County. We evaluated the key factors and assumptions used to 00 develop the estimate for the post closure liability in determining that it is reasonable in relation to 00 the financial statements taken as a whole. Financial statement disclosures Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: • The disclosure of cash and investments in Note 2 to the financial statements, which addresses the various risk categories required by Governmental Accounting Standards Board Statement (GASBS) No. 40, Deposit and Investment Risk Disclosures, and the Fair Value Measurements required by GASBS No. 72, Fair Value Measurements and Application. • The disclosure of defined benefit pension plans in Note 9 to the financial statements is significant because it discloses the County's funding of the pension plans. This note is significant to the County and the employees who participate in the plans. The disclosure provides the funding information of the plans along with other relevant information. • The disclosure of claims liability in Note 13 to the financial statements, which discloses the estimate of self-insurance and health self-insurance claims payable. • The disclosure of OPEB in Note 15 to the financial statements, which describes the County's OPEB plan, the annual OPEB costs, and the net OPEB obligation at September 30, 2021. The financial statement disclosures are neutral, consistent, and clear. Difficulties encountered in performing the audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Uncorrected misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management did not identify, and we did not notify them of any uncorrected financial statement misstatements. Packet Pg. 580 13.A.2 Honorable Board of County Commissioners Collier County, Florida Corrected misstatements Management did not identify and we did not notify them of any financial statement misstatements detected as a result of audit procedures. Disagreements with management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. No such disagreements arose during our audit. Management representations We have requested certain representations from management that are included in the management representation letter dated March 7, 2022. Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the County's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the County's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement. Audits of group financial statements We noted no matters related to the group audit that we consider to be significant to the responsibilities of those charged with governance of the group. Other information in documents containing audited financial statements With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management's responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. U- a U N 0 N t0 00 00 Packet Pg. 581 13.A.2 Honorable Board of County Commissioners Collier County, Florida With respect to the combining and individual fund statements and other supplemental information (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated March 7, 2022. a U The introductory and statistical sections accompanying the financial statements, which is the N CD responsibility of management, was prepared for purposes of additional analysis and is not a required N part of the financial statements. Such information was not subjected to the auditing procedures applied in the audit of the financial statements, and, accordingly, we did not express an opinion or provide any o assurance on it. Our auditors' opinion, the audited financial statements, and the notes to financial statements should only be used in their entirety. Inclusion of the audited financial statements in a document you prepare, such as an annual report, should be done only with our prior approval and review of the document. This communication is intended solely for the information and use of the Board of County Commissioners of Collier County, Florida and management and is not intended to be, and should not be, used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida March 7, 2022 Packet Pg. 582 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 X PREHENSIVE A ANNUAL FINANCIAL P 0 RT .00 The Collier County Parks & Recreation Department proudly provides a world -class system of parks, natural resources and recreational opportunities to the residents of Collier County. Photos presented in this report are courtesy of the Collier County Parks & Recreation Department ,00? COW, COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2021 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS PENNY TAYLOR CHAIRMAN - DISTRICT 4 WILLIAM L. MCDANIEL, JR. VICE-CHAIRMAN - DISTRICT 5 RICK LOCASTRO - DISTRICT 1 ANDY SOLIS, ESQ. - DISTRICT 2 BURT SAUNDERS, ESQ. - DISTRICT 3 COUNTY MANAGER MARK R. ISACKSON COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER CHIEF FINANCIAL OFFICER CRYSTAL K. KINZEL DIRECTOR OF FINANCE AND ACCOUNTING DEREK M. JOHNSSEN, CPA Prepared by the Office of the Clerk of the Circuit Court and Comptroller, Finance and Accounting Department COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 INTRODUCTORY SECTION TransmittalLetter......................................................................................................................................................................... i Certificateof Achievement......................................................................................................................................................... vi OrganizationalChart.................................................................................................................................................................viii FINANCIAL SECTION IndependentAuditors' Report..................................................................................................................................................... 1 Management's Discussion and Analysis (Unaudited).................................................................................................................. 4 Basic Financial Statements Statementof Net Position..................................................................................................................................................... 16 Statementof Activities.......................................................................................................................................................... 18 Balance Sheet — Governmental Funds.................................................................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................ 21 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ............................................. 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Net Activities............................................................................................................................... 23 General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis).................................................................................................................................................................. 24 Bayshore Gateway Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).......................................................................................................... 27 Immokalee Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis)................................................................................................................. 28 Grants and Shared Revenue - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget andActual (Budgetary Basis)................................................................................................................................................ 29 Statement of Net Position — Proprietary Funds..................................................................................................................... 30 Statement of Revenues, Expenses and Changes in Fund Net Position — Proprietary Funds .................................................. 32 Statement of Cash Flows — Proprietary Funds...................................................................................................................... 33 Statement of Fiduciary Net Position — Custodial Funds........................................................................................................ 35 Statement of Changes in Fiduciary Net Position - Custodial Funds....................................................................................... 36 Notesto the Financial Statements........................................................................................................................................ 37 Required Supplementary Information....................................................................................................................................... 84 Combining and Individual Fund Financial Statements and Other Supplemental Information................................................... 87 Nonmajor Governmental Funds CombiningBalance Sheet..................................................................................................................................................... 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................................. 100 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) ........... 108 Nonmajor Enterprise Funds Combining Statement of Net Position................................................................................................................................. 136 Combining Statement of Revenues, Expenses and Changes in Fund Net Position.............................................................. 137 Combining Statement of Cash Flows.................................................................................................................................. 138 COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Financial Statements and Other Supplemental Information (Continued) Internal Service Funds Combining Statement of Net Position................................................................................................................................. 140 Combining Statement of Revenues, Expenses and Changes in Net Position....................................................................... 141 Combining Statement of Cash Flows.................................................................................................................................. 142 Fiduciary Funds Combining Statement of Fiduciary Net Position - Custodial Funds..................................................................................... 146 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds................................................................... 147 Component Units Combining Statement of Net Position................................................................................................................................. 150 Combining Statement of Activities...................................................................................................................................... 151 Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill.............................................154 STATISTICAL SECTION NetPosition by Component..................................................................................................................................................... 158 Changein Net Position............................................................................................................................................................ 160 Governmental Activities Tax Revenues by Source.................................................................................................................... 162 Fund Balances of Governmental Funds................................................................................................................................... 163 Changes in Fund Balances of Governmental Funds................................................................................................................. 164 Assessed Value and Estimated Actual Value of Taxable Property........................................................................................... 166 Property Tax Rates — All Direct and Overlapping Governments................................................................................................ 168 PrincipalTaxpayers County-Wide............................................................................................................................................. 169 Property Tax Levies and Collections........................................................................................................................................ 170 Ratiosof Outstanding Debt by Type......................................................................................................................................... 171 Direct, Overlapping and Underlapping Governmental Activities Debt....................................................................................... 172 Pledged -Revenue Coverage..................................................................................................................................................... 173 Demographic and Economic Statistics.................................................................................................................................... 174 PrincipalEmployers................................................................................................................................................................. 175 Budgeted Full -Time Equivalent County Employees by Function............................................................................................... 176 OperatingIndicators by Function............................................................................................................................................. 177 Capital Asset Statistics by Function......................................................................................................................................... 178 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ • w Aar �j " 10, R x4P� o y i rrt e .F c+. awl b Introductory Section 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Crystal K. Kinzel Collier County Clerk of the Circuit Court and Comptroller 3315 Tamiarni Trail East, Suite 102 Naples, Florida 34112-5324 March 22, 2022 To the Citizens and Members of the Board of County Commissioners, Collier County, Florida: It is with pleasure that we present to you, the citizens of Collier County and members of the Board of County Commissioners, the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2021. This report was prepared by the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller as part of the Clerk's legally prescribed duties. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the information presented herein is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of County operations. The Clerk of the Circuit Court and Comptroller's Finance and Accounting Department, as well as County management, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements and maintaining accountability of assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. Chapter 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counties in the State. State law requires the County to submit a complete set of financial statements within forty-five days after the issuance of the audit report (but no later than nine months after the fiscal year end) presented in accordance with accounting principles generally accepted in the United States. For the fiscal year ended September 30, 2021, the independent auditor, Clifton LarsonAllen LLP, issued an unmodified ("clean") opinion on the financial statements. Their report is included in the Financial Section of this report. In addition to meeting the requirements set forth in State statutes, the audit was also designed to meet the requirements of the Government Auditing Standards, the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the Rules of the Auditor General, Chapter 10.550 Local Governmental Entity Audits. Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and the two should be read in concert. Collier County's MD&A can be found in the Financial Section immediately following the independent auditors' report. PROFILE OF THE GOVERNMENT Collier County is a Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and comprises five members elected in the five different Commission districts of the County. The Board of County Commissioners appoints a county manager to carry out policies and oversee the county's day to day Phone- (239) 252-2646 Fax- (239) 252-2755 Website- www.CollierClerk.com Email- CollierClerk(@collierclerk.com operations. In addition to the County Commissioners, voters elect the following five constitutional officers on a Countywide basis: the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The County provides its citizens with a wide range of services that include tax assessment and collections, law enforcement, emergency management, fire and emergency medical services, animal services, library, museum and cultural services, parks and recreation operations, road maintenance and construction, economic development and social and human services. Additionally, the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, a landfill gas to energy facility, three airports, a transit system and an amateur sports complex. The fiscal year for county government begins October 1 and ends September 30. Budgets are prepared annually and formal budgetary integration is employed as a management control throughout the year. The level of budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is established at the departmental level for personal services, operating expenditures and non -project related capital outlay separately. Debt service and transfers are controlled at the fund level and capital projects and grants are controlled at the individual project or grant level. The Board of County Commissioners conducts budget workshops during June of each year and a proposed budget is released in July. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to State statute. Two public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state's second largest county, is on the southwest coast of Florida, directly west of Miami. With a 2021 population of 389,754 (a 20.4 percent increase over the last ten years), Collier County is one of the fastest growing counties in the state over the last ten years. The resident population includes Unincorporated County (pop. 349,128) and three municipalities: the Cities of Naples (pop. 22,206), Marco Island (pop. 17,995) and Everglades (pop. 425). The County's economic base is concentrated in tourism, agriculture, fishing, construction, ranching and forestry with a growing services economy and an active technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. The County's manufacturing base grew from 289 establishments in 2008 to 342 in 2021, led by companies providing products varying from surgical and medical instruments, kitchen cabinets and countertops to aircraft engines and parts. Recently, the area has become particularly attractive to logistical and warehousing service providers, with a 1 million square foot distribution center breaking ground in July of 2021. Sports tourism is a growing segment of Collier's economy. The Minto United States Open Pickleball Championship continues to expand and generally attracts national and international participation. The Paradise Coast Sports Complex is a multipurpose entertainment facility situated near 1-75 and Collier Boulevard. At completion, the Complex will contain twenty-one multipurpose fields, an outdoor fitness center, a food truck pavilion and a championship stadium. The first phase of the facility opened in October of 2020 and final completion is expected in 2022. The Complex is designed to attract national tournaments, while at the same time providing additional fields needed for local field play for sports such as soccer and baseball. To further promote economic growth, diversify the economy and encourage high -wage job creation, the Board of County Commissioners has created Economic Innovation Zones. The Ave Maria Innovation Zone, the Interchange Activity Center No. 9 Innovation Zone and the Golden Gate City Economic Development Zone were created to provide specific geographic areas a dedicated source of economic development funding through tax increment revenues. Flexible zoning overlays that will allow for reduced developmental timeframes for qualified target industry uses within the Zones are in process. Taxable property market valuation for fiscal year 2021 totaled $110.3 billion, a very high $282,972 per capita. The County's millage for General Fund operations in fiscal year 2021 remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Unemployment levels in recent years approximate, or are slightly below, the statewide average. The 2021 annual County unemployment rate stood at 3.6%, while the statewide average is 4.3%. Income levels are high, with a per capita personal income of $104,723. LONG TERM FINANCIAL PLANNING Each Florida local government must prepare a comprehensive plan for managing growth, providing vital services and protecting the environment. In Collier, several annual processes take place which influence long range planning and the development of the budget. Each year the County performs a three-year budget projection of primary ad valorem supported funds (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior to developing budget policy. In addition, there are several annual long range planning processes such as the Capital Improvement Element (CIE), the Annual Update and Inventory Report (AUIR), the Long Range Transportation Plan, the Water and Wastewater Master Plans, the Master Mobility Plan and concurrency planning. The County is required to prepare and present to the Board of County Commissioners an Annual Update and Inventory Report (AUIR) and adopt a five-year Capital Improvement Element (CIE). Both of these processes focus on the schedule of capital improvements for the County. The AUIR is an annual status report on public facilities and the CIE is a planning document that identifies public facilities that will be required during the next five or more years. The Capital Improvement Element is the foundation of Collier County's annual Capital Improvement Program (CIP). The amount planned for CIP projects in fiscal years 2022-2026 is $1.4 billion. Included in the County's current CIP for fiscal years 2022-2026 are approximately $442.5 million in water and wastewater projects, $455.0 million in transportation projects, $174.8 million in stormwater projects and $41.5 million in government facilities projects. In addition, parks and recreation projects of approximately $67.9 million are planned, as well as $58.3 million for tourist development funded projects, $25.2 million in solid waste projects, $62.1 million in public safety projects, $70.8 million in human services projects and miscellaneous projects totaling $11.4 million. Approximately $209.6 million of the fiscal year 2022 — 2026 Capital Improvement Program is currently planned to be funded by bond or loan proceeds and $219.3 million is planned to be funded by the infrastructure sales tax. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as a funding source in the following year, maintaining General Fund budgeted reserves between 8% and 16% of operating expenditures and Unincorporated Area General Fund budgeted reserves of between 3% and 8% of operating expenditures. Additional policies include the assessment of impact fees at such levels as allowed by law and supported by studies, prioritizing gas taxes for payment of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds and the establishment of a long term capital reserve funded in annual amounts of up to $5 million to protect the County's general governmental infrastructure. For enterprise operations such as the Water and Sewer District and Solid and Hazardous Waste Management, that do not receive support from general government sources, budgeted reserves are targeted to a range of forty-five to ninety days of operating expenditures. Debt administration policies include the limitation of the debt repayment period to the useful life of the underlying assets and the establishment of a 5% benchmark for net present value savings generated by refinancing. Lesser net present value savings may be considered on a case -by -case basis. Consistent with Collier County's Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized debt will be refinanced. In addition, the debt policy establishes a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13%. The Clerk of the Circuit Court's Finance and Accounting Department monitors the daily cash needs of the County and invests the County's funds in accordance with the Collier County Investment Policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund (Florida PRIME), other intergovernmental pools, U.S. Treasury securities, U.S. agency securities, commercial paper, corporate bonds and bankers' acceptances. The par weighted average maturity of the total managed portfolio, to first call or maturity, was 1.08 years as of September 30, 2021. The total return for fiscal year 2021 was .09%, a reflection of extremely low interest rates and unrealized losses due to changes in fair value of long term investments as of September 30, 2021. Investment income of $6.4 million was realized during fiscal year 2021. Changes in the fair value of investments are recorded as part of interest income when presented in the financial statements. MAJOR INITIATIVES While the County is currently focused on many initiatives, some of the most significant include the following: - Development of the Golden Gate Golf Course property, workforce and first responder housing and mental health initiatives - Construction of the Heritage Bay governmental facilities campus - Upgrades to Information Technology infrastructure and the County's various management, financial and accounting software - Completion of the construction, and operation, of the Big Corkscrew Regional Park and the Paradise Coast Sports Complex - Public safety capital projects including a new evidence facility for the Sheriff - The extension of Vanderbilt Beach Road, Randall curve improvements and bridge rehabilitation and replacement - Enhancements in storm -water capital infrastructure and maintenance service levels - Construction of utility infrastructure in the County Water and Sewer District's northeast service area - Design the expansion of water and wastewater treatment in the Golden Gate service area GFOA Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past thirty-five years, from fiscal year 1986 to 2020. We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. W Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2020. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the last thirty-five consecutive years. The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court and Comptroller for its annual budget for the fiscal year beginning October 1, 2020. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. The Clerk's Office has received this award for the last nineteen consecutive years. ACKNOWLEDGEMENTS The preparation and publication of this Comprehensive Annual Financial Report represents a significant effort by the Finance and Accounting Department as well as numerous County personnel who contribute to its production. In particular, we would like to express our appreciation to Edith Manuel, Finance Manager, Suzanne Boothby, Grants Manager, Leslie Miller, Operations Manager and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to Clifton LarsonAllen, the Board of County Commissioners, the Constitutional Officers, the County Manager, Deputy County Managers, Department Heads and the Division Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Derek M. Johnssen, Director of Finance and Accounting, at 239.252.7863. Respectfully, G7S�.Y`�e2 Crystal K. Kinzel Clerk of the Circuit Court and Comptroller D.2__ Derek M. Johnssen, CPA Deputy Clerk, Director of Finance and Accounting Kelly Jones, CGFO Deputy Clerk, Assistant Director of Finance and Accounting u Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2020. This was the thirty-fifth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. w Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Collier County Clerk of the Circuit Court Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2020 � i t Executive Director/CEO Kevin Rambosk Sheriff 252-4434 Ed Finn, Director Corporate Financial & Management Services Phone 252-8383 Bureau of Emergency Services Communications, Government & Public Affairs Corporate Business Operations Emergency Medical Services Fleet Management Human Resources Information Technology Procurement Services Risk Management Co er County CITIZENS Abe Skinner Board of County Commissioners Phone Crystal K. Kinzel Property Appraiser 252-8141 252-8097 Rick LoCastro Clerk of Courts 252-2646 Judicial William L. McDaniel,Jr. 4 Courts & Judges Rob Stoneburner Burt Saunders Jennifer Edwards 252-8800 Tax Collector Andy Solis Supervisor of Elections 252-8171 Penny Taylor 252-8450 Jeff Klatzkow Mark Isackson Andrew Dickman County Attorney County Manager Chief Hearing Examiner Phone 252.8400 Phone 252.8383 Phone 252-4446 Sean Callahan Amy Patterson Deputy County Manager Deputy County Manager Phone 252-8383 Phone 252-8383 Public Services Department Growth Management Department Growth Management Department Public Utilities Department Daniel Rodriguez James French Trinity Scott G. George Yilmaz Department Head Deputy Department Head Deputy Department Head Department Head Phone 252-8468 Phone 252-2400 Phone 252-2192 Phone 252-2540 Domestic Animal Services Building Plan Review & Inspection Capital Project Planning, Impact Facilities Management Community and Human Services Code Enforcement Fees & Program Management Operation Support Health Development Review Operations Support Engineering & Project Library Operations & Regulatory Road Maintenance Management Museum Management Transportation Engineering Solid & Hazardous Waste Operations and Veterans Services Zoning Public Transit & Neighborhood Wastewater Parks & Recreation Enhancement Water University Extension Services I a 1 0 ILWMA ff a 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Clifton nect. Arn LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business - type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida, (County) as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International Honorable Board of County Commissioners Collier County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison schedules for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Change in Accounting Principle As discussed in Note 1 to the financial statements, in 2021 the County adopted GASB Statement No. 84, Fiduciary Activities. As a result of the implementation of this standard, the County reported a restatement of beginning fiduciary net position for the change in accounting principle (see Note 19). Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis (MD&A) on pages 4 — 13, the schedules of the County's proportionate share of the net pension liability and of County contributions on page 84, and the schedules of other postemployment benefits total OPEB liability and related ratios for the retiree health plans on page 86 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The combining and individual nonmajor fund financial statements and other supplemental information, and the introductory and statistical sections, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and other supplemental information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2 Honorable Board of County Commissioners Collier County, Florida Other Matters (Continued) Other Information (Continued) The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 7, 2022, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida March 7, 2022 MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the County's financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30, 2021. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i-vi of this report. Financial Highlights • Collier County's assets and deferred outflows exceeded its liabilities and deferred inflows as of September 30, 2021 by $3,238,609,539. Of this amount, $284,121,166 represents unrestricted net position and may be used to meet future County obligations. Unrestricted net position increased by $92,150,091 from the previous year. • The County's total net position increased by $296,297,046 when compared to fiscal year 2020, with a $233,724,640 increase from governmental activities and a $62,572,406 increase resulting from business -type activities. • As of September 30, 2021, Collier County's governmental fund financial statements showed combined ending fund balances of $990,656,234, an increase of $211,833,586 over the previous fiscal year. Of the total combined ending governmental fund balance, $117,115,903 is reported as unassigned. • The General Fund reported an unassigned fund balance of $117,115,903 at September 30, 2021, an increase in unassigned General Fund balance of $12,817,278 when compared to September 30, 2020. • The County's proportionate share of the Florida Retirement System's defined pension benefit and health insurance subsidy net pension liabilities was $141,933,600 as of September 30, 2021, a decrease of $284,836,434 from the previous year. • Total bonded debt, notes, outstanding loans, leases and financed purchase obligations owed by Collier County increased by $217,204,627 during fiscal year 2021, with an increase in governmental activities debt of $74,145,816 and an increase in business -type activities debt of $143,058,811. Additional information on debt activity can be found in Note 7 to the financial statements beginning on page 56. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County's basic financial statements. Collier County's basic financial statements include government -wide and fund financial statements, as well as notes to the basic financial statements. Government -Wide Financial Statements Government -wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 19 of this report. The Statement of Net Position shows the financial position of Collier County as of September 30, 2021. The statement shows the County's assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the difference being reported as net position. Changes in net position are useful indicators of financial condition. The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal period. All changes in net position are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or certain unused leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business -type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business -type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds Governmental funds, presented on pages 20 to 28, account for substantially the same functions as governmental activities reported under the government -wide Statement of Net Position and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government's nearterm financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government -wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County's statements include five major funds, the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies, Grants and Shared Revenue Fund and the Infrastructure Sales Tax fund. There are many smaller governmental funds under Collier County management and they are aggregated in a total column named "other governmental funds". Combining statements for these other governmental funds have been presented elsewhere in this report. Collier County adopts an annual budget as described in Note 1 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with this budget. Budgetary comparison schedules for the Infrastructure Sales Tax capital project major fund and non -major governmental fund required to adopt an annual budget is presented in the combining statements presented elsewhere in this report. Proprietary funds Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on pages 30 to 34 of this report. Enterprise funds report, with more detail, the same functions presented as business -type activities in the government -wide financial statements for water and sewer, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund, the Solid Waste Disposal Fund and the Emergency Medical Services Fund are presented individually as major funds. Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker's compensation insurance, property and casualty insurance, fleet operations and information technology. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government. These funds are not presented in the government -wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds begin on page 35 of this report. All of the County's fiduciary funds are custodial funds. Custodial funds are used to report amounts that the government has custody of, but does not have control over the use of the funds. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government -wide and fund financial statements. The notes appear on pages 37 to 81 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 89. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net position for enterprise funds. Also included are combining financial statements for internal service and custodial funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical section of this report. The Statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. Government -Wide Financial Analysis As noted earlier, net position may serve overtime as a useful indicator of a government's financial position. Assets and deferred outflows exceeded liabilities and deferred inflows by $3,238,609,539 as of the fiscal year ending September 30, 2021 for Collier County. Positive balances were reported in all categories of net position in the governmental and business -type activities for fiscal year 2021. Collier County's net position at September 30, 2021 increased by $92,150,091 for unrestricted net position and increased $110,183,021 for restricted net position. Restricted net position consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to meet the County's ongoing obligations. Increases in restricted net position were mainly due to a $69,670,321 increase in restricted net position related to Infrastructure Sales Tax capital projects and a $14,013,160 increase in restricted net position related to tourist development. The increase in unrestricted net position was mainly the County's proportionate share of the increase in overall financial position of the Florida Retirement System (FRS) Pension Plan. This increase was due primarily to investment returns in the FRS Pension Plan. Collier County's investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 69.3% of net position as of September 30, 2021, compared to 73.0% as of September 30, 2020. During fiscal year 2021, the County's net investment in capital assets increased by $93,963,934, but decreased as a proportion of total net position due to the overall increase in combined restricted and unrestricted net position discussed above. Capital assets provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets. The following are Collier County's net position and changes in net position for the fiscal years ended September 30, 2020 and 2021, shown in condensed form: Collier County's Schedule of Net Position (in millions) Total Business -type Percentage Governmental Activities Activities Total Change 2021 2020 2021 2020 2021 2020 2020-2021 Current and other assets $ 1,211.9 $ 953.7 $ 545.6 $ 393.4 $ 1,757.5 $ 1,347.1 30.5% Capital assets, net 1,752.9 1,676.8 1,058.3 1,013.1 2,811.2 2,689.9 4.5% Total assets 2,964.8 2,630.5 1,603.9 1,406.5 4,568.7 4,037.0 13.2% Deferred outflows of resources 83.1 125.5 16.5 23.9 99.6 149.4 (33.3) % Long-term liabilities 575.5 738.7 393.0 297.8 968.5 1,036.5 (6.6)% Current liabilities 180.3 134.9 50.9 53.5 231.2 188.4 22.7% Total liabilities 755.8 873.6 443.9 351.3 1,199.7 1,224.9 (2.1)% Deferred inflows of resources 191.8 15.8 38.2 3.4 230.0 19.2 1,097.9% Net position: Net investment in capital assets 1,396.9 1,331.2 846.3 818.1 2,243.2 2,149.3 4.4% Restricted 660.5 559.1 50.8 42.0 711.3 601.1 18.3 % Unrestricted (deficit) 42.9 (23.7) 241.2 215.6 284.1 191.9 48.0 % Total net position $ 2,100.3 $ 1,866.6 $ 1,138.3 $ 1,075.7 $ 3,238.6 $ 2,942.3 10.1 Collier County's Schedule of Changes in Net Position (in millions) Total Percentage Governmental Activities Business -type Activities Total Change 2021 2020 2021 2020 2021 2020 2020-2021 Revenues Program revenues: Fines, fees and charges for services $ 83.1 $ 72.7 $ 249.6 $ 235.6 $ 332.7 $ 308.3 7.9% Operating grants and contributions 98.7 34.0 26.4 11.5 125.1 45.5 174.9 io Capital grants and contributions 50.3 47.4 43.0 42.1 93.3 89.5 4.2% General revenues: Property taxes 400.6 376.1 - - 400.6 376.1 6.5% Other taxes and shared revenues 234.5 192.9 - - 234.5 192.9 21.6% Interest income 1.6 14.3 0.4 5.9 2.0 20.2 (90.1)°i Miscellaneous 18.4 11.5 1.5 0.9 19.9 12.4 60.5% Total revenues 887.2 748.9 320.9 296.0 1,208.1 1,044.9 15.6% Expenses General government 129.8 136.0 - - 129.8 136.0 (4.6)i Public safety 237.4 266.7 237.4 266.7 (11.0)i Physical environment 23.2 23.9 23.2 23.9 (2.9)% Transportation 88.7 90.0 88.7 90.0 (1.4)i Economic environment 14.4 10.2 14.4 10.2 41.2% Human services 77.2 20.9 77.2 20.9 269.4% Culture and recreation 59.3 56.9 59.3 56.9 4.2% Interest on long-term debt 14.6 12.3 - - 14.6 12.3 18.7% Water and sewer - - 166.0 155.4 166.0 155.4 6.8°i Solid waste 51.9 49.1 51.9 49.1 5.7% Emergency medical services 27.8 33.8 27.8 33.8 (17.8) i Airport authority 7.8 6.2 7.8 6.2 25.8°i Mass transit - 13.7 13.7 13.7 13.7 0.0% Total expenses 644.6 616.9 267.2 258.2 911.8 875.1 4.2% Increase in net position before net transfers 242.6 132.0 53.7 37.8 296.3 169.8 74.5% Transfers, net (8.9) (15.0) 8.9 15.0 - - 0.0 Change in net position 233.7 117.0 62.6 52.8 296.3 169.8 74.5% Net position - beginning 1,866.6 1,749.6 1,075.7 1,022.9 2,942.3 2,772.5 6.1 io Net position - ending $ 2,100.3 $ 1,866.6 $ 1,138.3 $ 1,075.7 $ 3,238.6 $ 2,942.3 10.1 % Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically by function. General revenues, such as property taxes, must be used to the extent that the fees, fines, grants and contributions do not cover the cost of the governmental function. Public safety is the largest category of expenses followed by general government. Revenues and Expenses Governmental Activities Fiscal Year 2021 250 200 tA C 150 O 100 50 0 , , 1♦ ■ cc�e�♦ ya♦e�� °��ep♦ �e CP Q� i�°� ems♦ •�°ee ��°� �`a�yQ°�a • G �J`t°,��` �a yet t`a e4�ea c,°�°�,` ,2,� ♦♦ lea 0 Revenues 0 Expenses Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by infrastructure sales tax. intrastructure sales tax'. Miscellaneous revenue: 5.1 Tourist Taxes: 4.1 % Sales Taxes: 6.2% Gas Taxes: 2.6% Capital Grants and Contributions: 5.6% Operating Grants Contributions: 11 Revenue by Type Governmental Activities Fiscal Year 2021 Property Taxes: 44.9% Fines, Fees and Charges for Services: 9.3% N. Revenues and expenses are shown by business -type activity. The Water and Sewer system is the largest business -type activity followed by the Solid Waste system. Revenues and Expenses Business -type Activities Fiscal Year 2021 250 200 r_ 150 c 0 100 50 0 . ■ Water and Sewer Solid Waste Emergency Medical Airport Authority Mass Transit Services Revenues 0 Expenses Revenues for business -type activities are shown graphically by type. The largest type of revenue is fines, fees and charges for services followed by capital grants and contributions. Revenue by Type Business -type Activities Fiscal Year 2021 Other Income: 0.6% Capital Grants and Contributions: 13.4% Operating Grants and Contributions: 8.2% Fines, Fees and Charges for Services: 77.8% 0j Governmental Activities The current year increase in the net position of governmental activities amounted to $233,724,640, an increase of 12.5% when compared to the previous year's net position. The previous fiscal years' increase in net position was 6.7%. The current years' increase is mainly due to the following: • Overall, revenues related to governmental activities increased by 18.5%, or $138,417,816 while expenses increased by 4.5%, or $27,815,665. • Governmental activities revenues increased primarily due to the 1 % Local Government Sales Tax. Effective January 1, 2019, the tax generated $99,588,370 in revenue during fiscal year 2021. Also contributing to the increase was an increase in total ad valorem taxes collected in fiscal year 2021, when compared to fiscal year 2020, of $24,466,613. The increase in ad valorem revenues was due to a 6.1 % increase in county wide taxable value. • Public safety expenses decreased by $29,301,477 largely due to decrease in costs related to the COVID-19 pandemic, versus fiscal year 2020, and pension costs. The focus of Collier County in the 2020 fiscal year was response to the COVID-19 pandemic, while the 2021 fiscal year shifted the focus to recovery. As such, economic environment expenses increased by $10,071,799 or 98.9% and human services expenses increased by $56,309,484 or 269.3% primarily due to COVID-19 related expenses and community assistance programs such as rental and mortgage assistance, small business assistance and food bank support. • Interest expense increased 18.5% over fiscal year 2020, primarily due to interest and closing costs related to the Series 2020A and 2020B Special Obligation Bonds. These issuances are discussed in more detail in the notes to these financial statements. Business -type Activities The increase in net position related to business -type activities amounted to $62,572,406 in the aggregate, representing a 5.8% increase over the previous year's net position. The previous fiscal year's increase in net position was 5.2%. The current year's increase is mainly due to the following: • Collier County Water and Sewer District (District) saw an increase of $37,448,992 in net position. The increase in the District's net position is largely due to a 2.9% user fee rate increase that went into effect October 1, 2020 and $34,493,156 of water and sewer capital grants and contributions, the majority of which is related to developer infrastructure contributions. • Solid Waste Disposal experienced an increase of $9,464,511 in net position. This increase is primarily due to a 2.9% rate increase, $1,155,581 in operating grants and contributions and $1,344,998 in insurance reimbursements related to reimbursements for Hurricane Irma. • Emergency Medical Services saw an increase of $8,401,400 in net position. This increase primarily due to the decrease in personal services as a result in the decrease in the allocated pension plan expense of $7,734,734. Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Permanent Funds, Debt Service Funds and Capital Project Funds. As of September 30, 2021, Collier County governmental funds reported combined fund balances of $990,656,234, an increase of $212,726,886 when compared to prior year combined fund balances. The governmental funds had non -spendable fund balances of $9,407,504 consisting of inventory, prepaid items, notes receivable, endowments and advances to other funds. The restricted fund balance was $722,877,680 and consists of monies whose expenditure is externally constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $258,371,050 in fund balance, $44,582,017 is classified as committed, $96,673,130 is recorded as assigned and $117,115,903 is recorded as unassigned. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2021: The General Fund is the primary operating fund of Collier County. At September 30, 2021, total fund balance in the General Fund was $132,761,951, of which $117,115,903 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 27.8%. The total fund balance increased by $12,933,195 or 10.8% , compared to the September 30, 2020 total fund balance. The General Fund's total fund balance increased due to increased Ad Valorem Tax collections of $19,577,047. This increase was directly related to a 6.1 % increase in county wide taxable value. The increase in revenue was offset by a $5.3 million increase in the Sheriff's personal services due to step raises given and retirement payouts. 10 • The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle community. During fiscal year 2021, the Bayshore Gateway Community Redevelopment Agency collected $2,348,500 in tax increment revenues. In addition, the agency received $638,963 in miscellaneous revenues for rents and net proceeds from sale of land inventory and earned $6,188 in interest income. Operating expenditures of $1,520,181, mainly consisting of personal services and improvements to the water lines and fire hydrants within the district. In addition, capital expenditures of $2,716,244 were made for land and a parking lot. • The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2021, the Immokalee Community Redevelopment Agency collected #REF! in tax increment revenues. Operating expenditures of $409,775, mainly personal services and general operating expenditures, were associated with the Immokalee Community Redevelopment Agency. In addition, capital expenditures of $875,607 were made for bus shelters and sidewalk projects in the district. In addition, debt service expenditures of $35,166 were made for leased office space. • The Grants and Shared Revenue fund was established to account for the revenues received from federal, state and local grants. The Grants and Shared Revenue fund saw an increase in intergovernmental revenue of $62,877,965 and an increase in human services expenditures of $56,426,796 primarily as a result of state and local grants related to the COVID-19 pandemic for community assistance. Grant funded capital outlay included $1,635,367 for stormwater improvements and $140,810 in vehicles and equipment. • The Infrastructure Sales Tax fund was established to account for the proceeds of the 1 % Infrastructure Sales Tax. The tax was effective as of January 1, 2019 and fiscal year 2021 collections were $99,588,370. The Infrastructure Sales Tax Fund earned interest revenue of $121,201 and capital outlay totaled $28,642,763. Capital outlay included $15,452,233 for the Big Corkscrew Island Regional Park, $2,601,618 for various air conditioning improvements, $2,711,985 for road and bridge projects, $5,317,011 for the Sheriff's Forensics Building and other jail improvements, $1,155,510 for building automation and energy management system improvements, $293,124 for hurricane resiliency projects, $975,540 in electrical system upgrades for the main campus, $68,657 for the Emergency Operations Center garage enclosure and $67,085 for the new Emergency Medical Services Station in Golden Gate Estates. Proprietary Funds Proprietary fund statements provide the same information as the business -type activities in the government -wide financial statements, but in greater detail, and on a fund basis for enterprise funds. At September 30, 2021, total net position amounted to $1,141,034,869 for enterprise funds, as compared to $1,077,516,482, as of September 30, 2020, an increase of $63,518,387. Net position changes as a result of operations, non -operating revenues and expenses, capital contributions and grants and donations. For fiscal year 2021, the County Water and Sewer fund's activities represent the largest share of the increase in the business -type net position. For the year ended September 30, 2021, the Collier County Water and Sewer District (District) reported capital grants and contributions of $34,493,156, which consists of water and sewer impact fees of $16,273,483, $18,180,218 in developer infrastructure contributions and other capital contributions of $39,455. Net Operating Income/(Loss) 2021 2020 County Water and Sewer $ 11,192,448 $ 13,721,643 Solid Waste Disposal 7,401,517 4,869,424 Emergency Medical Services (13,574,387) (20,735,848) Non -major enterprise funds (12,854,780) (13,924,783) Total $ (7,835,202) $ (16,069,564) The Collier County Water and Sewer District's net operating income decreased by $2,529,195, or 18.4%, when compared to fiscal year 2020. The decrease in net operating income was primarily the result of a 2.9% rate increase effective October 2020, offset by a 5.3% increase in total operating expenses, including depreciation and amortization. Personal services expenses decreased due to a reduction of $3,744,503 in pension expense, and operating expenses increased by $11,692,838 mostly due to increases in utility parts and temporary labor costs. County Water and Sewer payments in lieu of taxes paid to the General Fund of $8,934,700 were reclassified from operating expense to transfers out for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Solid Waste Disposal fund's net operating income increased by $2,532,093, or 52.0%, when compared to fiscal year 2020. The increase in net operating income was primarily the result of a 2.9% increase in tipping rate offset by a 5.4% increase in total operating expenses, including depreciation and amortization. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $414,800 were reclassified from operating expense to transfers out for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. 11 The Emergency Medical Services fund's net operating loss decreased by $7,161,461, or 34.5%, when compared to fiscal year 2020. The decrease in net operating loss was mainly brought by the decrease in personal services as a result of a reduction in the allocated pension plan expense of $7,734,734. Capital Assets Collier County's financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County's investment in capital assets for the governmental and business -type activities amounted to $2,811,206,727, net of accumulated depreciation. This investment in capital assets includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year net of accumulated depreciation increased by $121,273,006, when compared to the previous year. There was an increase in the governmental activities capital assets of $76,119,764, or 4.5%, while the business -type activities capital assets increased by $45,153,242, or 4.5%. The major capital asset activities during the current and previous fiscal years are as follows: • Capitalization as construction in process of $87,628,218 in governmental activity costs including $23,176,558 related to the construction of the Paradise Coast Sports Complex, $17,136,658 for the Big Corkscrew Island Regional Park, $10,026,784 for the acquisition of the HHH Ranch and $5,614,205 for Thomasson Drive Beautification. The remaining $31,674,013 is related to $5,607,657 in other transportation projects, $1,814,404 in beach renourishment, $11,056,106 in public safety projects, $6,709,406 in stormwater projects and $6,486,438 in other capital projects. • The business -type activities capitalized $91,185,571 of construction in process during fiscal year 2021 including $7,668,990 for a new EMS helicopter, $15,230,694 for the Marco Airport Terminal renovations, $2,100,084 for the Immokalee Runway improvements, $27,278,616 in master pump and force main system improvements, $18,073,530 for Vanderbilt Drive Utility improvements, $8,354,524 for improvements to the Naples Park Basin, and $12,124,418 in other County Water and Sewer projects. The remaining $354,715 was for various Mass Transit projects. • Developer donated water and wastewater infrastructure in fiscal year 2021 amounted to $18,180,218 and $16,625,111 in fiscal year 2020. Subdivisions are required to meet County standards when installing water and wastewater services. Once completed and inspected, these assets are donated to and accepted by the County. • Collier County acquired $39,481,138 of land and non -depreciable assets in fiscal year 2021, compared to $5,831,649 for fiscal year 2020. Fiscal year 2021 land purchases were primarily related to the acquisition of the Camp Keais property and various transportation projects. Additional information regarding Collier County's capital assets can be found in Note 6 beginning on page 55 of this report. Debt Administration At September 30, 2021, Collier County had total bonded debt, notes, loans, leases and financed purchase obligations of $809,595,785, an increase of $217,204,627 from the previous year. The following table illustrates the balances of all bonds, notes, loans, capital leases and financed purchase obligations for the fiscal years ended September 30, 2021 and 2020: Outstanding Debt 2021 2020 Limited General Obligation Bonds $ - $ 1,060,000 Revenue Bonds 607,311,269 348,349,213 Direct Placement Loans Payable 143,698,000 160,773,962 Commercial Paper and Notes Payable 50,429,848 74,010,065 Leases 8,128,231 8,063,564 Financed purchase obligations 28,437 134,354 Total $ 809,595,785 $ 592,391,158 Collier County's Special Obligation Revenue Bonds carry ratings of Aa1, AAA and AA by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The Series 2017 and 2019 Special Obligation Refunding Revenue Notes (Bank Term Loans) were issued as direct placements with commercial banks and therefore carry an implied rating of Aa1, AAA and AA by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The County's Series 2012 Gas Tax Revenue Bonds carry ratings of A2, A+ and AA- by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The Series 2014 Gas Tax Revenue Bond (Bank Term Loan) was issued as a direct placement with a commercial bank and therefore carries an implied rating of A2, A+ and AA- by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. Collier County's Tourist Development Tax Revenue Bonds carry ratings of Aa3 and AA+ by Moody's and Fitch Ratings, Inc., respectively. Collier County's Water and Sewer Revenue Bonds carry ratings of Aaa and AAA, respectively, by Moody's and Fitch Ratings, Inc. The Series 2015 and 2018 County Water and Sewer Revenue 12 Bonds were issued as direct placements with commercial banks and, as such, carry an implied rating of Aaa and AAA by Moody's and Fitch Ratings, Inc., respectively. The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County's long-term debt can be found in Note 7 beginning on page 56 of this report. General Fund Budgetary Highlights During the 2021 fiscal year, the General Fund expenditure appropriations increased by $4,287,977. Significant variances between the original budget and the final amended budget are listed below: • $767,900 decrease in Other general administration operating to provide funding for land acquisition and to transfer funds to the County Manager's Office for retirement payouts. • $673,900 increase in the Clerk of the Circuit Court personal services due to an increase in staff to process client and subrecipient grant assistance from COVID-19 grant funds as well as a reorganization of the Inspector General's office. • $930,100 increase in the Clerk of the Circuit Court operating for office furniture and data processing equipment. • $457,008 increase in Public Services personal services due to a reorganization. • $719,000 increase in Sheriff's personal services related to special detail duties. • $761,820 increase in Economic Development operating due to re -budgeting of lapsed appropriations from the previous fiscal year and to provide impact fee assistance for the new Immokalee Career Path Learning Lab. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2021. Tax revenues were under budget by $11,674,776 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4.0%to 1.0%, depending on the date of payment. The Economic Development operating was $1,173,643 under budget due to delays in various projects due to the pandemic. The Economic Development Department re -budgeted these funds in fiscal year 2022. Park operations were $1,633,222 under budget in large part due to the delay of opening the new Big Corkscrew Regional Park, cost savings while the water park was closed for renovations and lower than expected maintenance costs at the Golden Gate Golf Course property. The Parks Department has re -budgeted $780,947 of those funds in fiscal year 2022 to finish acquiring new equipment and supplies for the new park. Economic Factors and Year 2022 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2022 budget: • A 3.0% increase in countywide taxable property values. • Millage neutral General Fund tax rate. • A $1,000 per employee general wage adjustment. • Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff). During fiscal year 2021, the General Fund unassigned fund balance increased by $12,817,278 to $117,115,903. As of January 31, 2022, $102,203,636 of the fiscal year 2021 unassigned fund balance has been appropriated as carryforward for fiscal year 2022, with $65,403,725 budgeted in reserves. Contact Information This financial report is intended to give the user a general overview of Collier County Government's finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court and Comptroller Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112-5746 Our office may also be contacted via the internet at www.colliercierk.com. 13 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ i1X?`K.Y3 .'.T p-� i' "t• f � 4�_ TIh4 � �:.yl :•11: ii 4,S sR zc AhL m - p:r- i a.q i n Fins :1[3711[0 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION September 30, 2021 ASSETS Current assets: Cash and investments Cash with fiscal agent Trade receivables, net Special assessments receivable Interest receivable Due from other governments Lease receivable Internal balances Deposits Inventory Prepaid costs Restricted assets: Cash and investments Trade receivables, net Lease receivable Notes receivable Interest receivable Due from other governments Deposits Inventory Inventory for resale Prepaid costs Total current assets Noncurrent assets: Restricted assets: Cash and investments Lease receivable Notes receivable Impact fee receivable Special assessments receivable Lease receivable Notes receivable Capital assets: Land and non -depreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources The notes to the financial statements are an integral part of this statement. Primary Government Governmental Business -type Component Activities Activities Total Units $ 347,630,238 $ 280,119,201 $ 627,749,439 $ 387,083 10,678,128 - 10,678,128 - 1,070,912 17,667,540 18,738,452 1,405 86,778 88,183 441,263 595,607 1,036,870 17,971,395 5,469,528 23,440,923 228,194 219,841 448,035 4,639,166 (4,639,166) - 20,118 2,000 22,118 1,437,907 7,478,097 8,916,004 3,037,158 77,679 3,114,837 106,189,204 13,621,627 119,810,831 2,127,995 - 2,127,995 562 562 54,612 - 54,612 845,316 23,287 868,603 25,021,422 6,825,302 31,846,724 1,875 - 1,875 894,059 894,059 3,923,733 3,923,733 3,091 - 3,091 - 526,217,753 327,547,321 853,765,074 387,083 670,725,388 216,873,175 887,598,563 19,097 - 19,097 244,036 244,036 6,602,193 - 6,602,193 - 49,620 49,620 6,571,821 1,172,672 7,744,493 1,492,849 - 1,492,849 619,120,069 169,379,539 788,499,608 1,133,805,148 888,901,971 2,022,707,119 2,438,580,601 1,276,376,977 3,714,957,578 - 2,964,798,354 1,603,924,298 4,568,722,652 387,083 9,207,197 2,502,980 11,710,177 9,071,489 212,265 9,283,754 64,822,516 13,849,284 78,671,800 $ 83,101,202 $ 16,564,529 $ 99,665,731 $ 16 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION (continued) September 30, 2021 Primary Government Governmental Business -type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable $ 19,408,863 $ 15,809,416 $ 35,218,279 $ Wages payable 7,524,457 2,955,712 10,480,169 Retainage payable 561,464 2,379,541 2,941,005 Due to other governments 3,295,280 56,327 3,351,607 Self-insurance claims payable 8,724,652 - 8,724,652 Compensated absences 12,027,963 2,544,545 14,572,508 Financed purchase obligation 28,437 - 28,437 Notes payable - 5,918,250 5,918,250 Unearned revenue 132,653 68,980 201,633 Total OPEB liability 1,676,578 147,887 1,824,465 Net pension liability 369,393 76,986 446,379 Landfill post -closure liability - 53,162 53,162 Interest payable 6,605,243 - 6,605,243 Leases payable 877,023 95,448 972,471 Bonds and loans payable 27,753,000 6,762,000 34,515,000 Liabilities payable from restricted assets: Accounts payable 21,435,818 4,403,672 25,839,490 Wages payable 2,104,753 - 2,104,753 Retainage payable 6,811,908 2,271,743 9,083,651 Refundable deposits 6,725,435 142,692 6,868,127 Interest payable - 2,673,326 2,673,326 Due to other governments 5,415,504 115,560 5,531,064 Unearned revenue 48,874,410 98,171 48,972,581 Notes payable - 2,042,598 2,042,598 Bonds and loans payable - 2,254,000 2,254,000 Total current liabilities 180,352,834 50,870,016 231,222,850 Noncurrent liabilities: Self-insurance claims payable 2,219,757 - 2,219,757 Compensated absences 22,898,715 636,137 23,534,852 Leases payable 6,548,375 607,385 7,155,760 Landfill post -closure liability - 1,573,710 1,573,710 Total OPEB liability 33,152,979 2,693,429 35,846,408 Net pension liability 116,996,840 24,490,381 141,487,221 Notes payable - 42,469,000 42,469,000 Bonds and loans payable, net 393,684,629 320,555,640 714,240,269 Total noncurrent liabilities 575,501,295 393,025,682 968,526,977 Total liabilities 755,854,129 443,895,698 1,199,749,827 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 6,446,111 1,326,468 7,772,579 Deferred inflows of resources related to OPEB 1,196,687 248,234 1,444,921 Deferred inflows of resources related to pensions 184,116,574 36,694,943 220,811,517 Total deferred inflows of resources 191,759,372 38,269,645 230,029,017 NET POSITION Net investment in capital assets 1,396,961,998 846,257,322 2,243,219,320 Restricted for: Growth related capital expansion 173,077,925 23,302,654 196,380,579 Transportation capital projects 53,187,427 - 53,187,427 Community development 42,148,812 42,148,812 Tourist development 102,873,491 102,873,491 Conservation Collier 26,306,541 26,306,541 Community redevelopment 11,337,073 11,337,073 Infrastructure sales tax capital projects 196,877,780 - 196,877,780 Grants 15,094,920 4,700,944 19,795,864 Debt service 6,013,148 22,523,245 28,536,393 Court programs 16,831,676 - 16,831,676 Public safety 6,801,780 6,801,780 Nonexpendable purposes - other 5,522,800 5,522,800 Special revenues - other 4,368,837 - 4,368,837 Renewal and replacement - 300,000 300,000 Unrestricted 42,881,847 241,239,319 284,121,166 387,083 Total net position S 2,100,286,055 S 1,138,323,484 S 3,238,609,539 S 387,083 17 COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2021 FUNCTIONS/PROGRAMS Primary Government: Governmental Activities: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Interest and fiscal charges Total governmental activities Business -type Activities: Water and sewer Solid waste Emergency medical services Airport authority Mass transit Total business -type activities Total primary government Component Units: Industrial Development Authority Health Facilities Authority Housing Finance Authority Educational Facilities Authority Total component units The notes to the financial statements are an integral part of this statement. Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions $ 129,810,111 $ 40,237,055 $ 1,654,866 $ 3,841,376 237,434,594 29,790,277 3,112,645 4,512,900 23,201,132 1,394,793 8,843,030 1,913,278 88,678,747 1,896,777 6,316,104 27,154,326 14,379,364 1,527,876 10,723,108 40,810 77,218,243 643,638 67,875,715 - 59,347,688 7,617,146 182,179 12,848,390 14,601,388 - - - 644,671,267 83,107,562 98,707,647 50,311,080 166,034,701 168,016,889 2,576,939 34,462,062 51,89 5,861 59,078,126 1,155,581 50,000 27,781,858 14,205,951 17,386,521 - 7,805,046 7,241,681 81,727 5,912,022 13,638,048 1,086,264 5,193,113 2,549,917 267,155,514 249,628,911 26,393,881 42,974,001 $ 911,826,781 $ 332,736,473 $ 125,101,528 $ 93,285,081 $ 7,690 $ 61,500 $ 25 $ 4,884 - 25 4,690 120,000 25 5,392 - 25 $ 22,656 $ 181,500 $ 100 $ General revenues: Property taxes Gas taxes Sales tax Tourist taxes Communications services tax Infrastructure sales tax State revenue sharing Othertaxes Interest income Miscellaneous Transfers, net Total general revenues and transfers Change in net position Net position - beginning Net position - ending 18 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -type Component Activities Activities Total Units $ (84,076,814) $ $ (84,076,814) $ (200,018,772) (200,018,772) (11,050,031) (11,050,031) (53,311,540) (53,311,540) (2,087,570) (2,087,570) (8,698,890) (8,698,890) (38,699,973) (38,699,973) (14,601,388) (14,601,388) (412,544,978) (412,544,978) 39,021,189 39,021,189 8,387,846 8,387,846 3,810,614 3,810,614 5,430,384 5,430,384 (4,808,754) (4,808,754) 51,841,279 51,841,279 $ (412,544,978) $ 51,841,279 $ (360,703,699) $ 53,835 (4,859) 115,335 (5,367) $ 158,944 $ 400,607,034 $ $ 400,607,034 $ 22,919,742 22,919,742 55,732,311 55,732,311 36,192,117 36,192,117 3,860,657 3,860,657 99,588,370 99,588,370 13,775,595 13,775,595 2,428,077 2,428,077 1,638,888 393,795 2,032,683 18,407,054 1,457,105 19,864,159 (8,880,227) 8,880,227 - 646,269,618 10,731,127 657,000,745 - 233,724,640 62,572,406 296,297,046 158,944 1,866,561,415 1,075,751,078 2,942,312,493 228,139 $ 2,100,286,055 $ 1,138,323,484 $ 3,238,609,539 $ 387, 883 19 COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2021 Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Infrastructure Governmental Governmental Fund Agency Agency Revenue Sales Tax Funds Funds ASSETS Cash and investments $ 144,534,201 $ 6,251,545 $ 1,457,615 $ 61,781,502 $ 182,512,816 $ 648,236,614 $ 1,044,774,293 Cash with fiscal agent - - - - - 10,678,128 10,678,128 Receivables: Interest 180,085 7,865 1,742 61,027 192,373 733,648 1,176,740 Trade, net 226,135 - - 13,254 - 2,222,024 2,461,413 Notes 1,492,849 - 298,648 1,791,497 Impact fee - 6,602,193 6,602,193 Special assessments - 1,405 1,405 Lease 445,552 - - 6,374,122 6,819,674 Due from other funds 4,686,446 554,600 87,925 9,466,625 14,795,596 Due from other governments 8,449,185 13,355 - 3,615,707 16,082,637 14,813,363 42,974,247 Deposits 20,118 - 625 - - 1,250 21,993 Inventory for resale - 3,694,000 - 229,733 3,923,733 Inventory 772,780 - 1,093,901 1,866,681 Advances to other funds 500,962 19,460,080 19,961,042 Prepaid costs 18,121 - - 6,091 24,212 Total assets $ 161,326,434 $ 10,521,365 $ 1,459,982 $ 65,559,415 $ 198,787,826 $ 720,217,825 $ 1,157,872,847 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 13,387,539 $ 103,410 $ 5,772 $ 2,128,964 $ 3,136,789 $ 20,489,021 $ 39,251,495 Wages payable 6,091,365 16,181 8,938 165,380 - 2,979,084 9,260,948 Due to other funds 3,945,447 319,882 68,817 1,423,483 10,428,581 16,186,210 Due to other governments 3,085,410 - 227 1,630,250 3,969,813 8,685,700 Unearned revenues 4,286 - - 48,789,378 89,857 48,883,521 Refundable deposits 1,623,340 1,500 - 5,100,595 6,725,435 Retainage payable - 42,586 - 85,920 1,910,046 5,334,820 7,373,372 Advances from other funds - - 88,901 - - 17,710,226 17,799,127 Total liabilities 28,137,387 483,559 172,655 54,223,375 5,046,835 66,101,997 154,165,808 Deferred inflows of resources: Unavailable revenue 2,500 - - - - 6,602,194 6,604,694 Related to leases 424,596 6,021,515 6,446,111 Total deferred inflows of resources 427,096 12,623,709 13,050,805 Fund balances: Nonspendable 2,784,712 - - - - 6,622,792 9,407,504 Restricted 580,524 10,037,806 1,287,327 11,336,040 193,740,991 505,894,992 722,877,680 Committed - - - - - 44,582,017 44,582,017 Assigned 12,280,812 84,392,318 96,673,130 Unassigned 117,115,903 - 117,115,903 Total fund balances 132,761,951 10,037,806 1,287,327 11,336,040 193,740,991 641,492,119 990,656,234 Total liabilities, deferred inflows of resources and fund balances $ 161,326,434 $ 10,521,365 $ 1,459,982 $ 65,559,415 $ 198,787,826 $ 720,217,825 $ 1,157,872,847 The notes to the financial statements are an integral part of this statement 20 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2021 Differences in amounts reported for governmental activities in the statement of net position on pages 16-17: Fund balances - total governmental funds $ 990,656,234 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land and other non -depreciable assets S 524,086,375 Construction in progress 94,184,755 Depreciable assets, net of $1,186,273,214 in accumulated depreciation 1,114,343,686 1,732,614,816 Certain revenues will be collected after year-end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred inflows in the funds. 6,604,694 Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net position. Balances at September 30, 2021 are: Accrued interest on bonds $ (6,605,243) Bonds, loans and notes payable (394,712,000) Financed purchase obligations (28,437) Lease obligations (7,415,266) Compensated absences (34,326,791) Total OPEB liability (34,495,752) Pension liability (114,631,647) Unamortized premium (26,725,629) (618,940,765) Unamortized deferred charges on refunding 9,207,197 OPEB deferred outflows 9,044,421 Pension deferred outflows 63,441,710 OPEB deferred inflows (1,166,076) Pension deferred inflows (180,598,443) Internal service funds are used by the County to charge self-insurance, fleet management, motor pool capital recovery and information technology services to individual funds. The assets, deferred outflows, liabilities and deferred inflows of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position is: 89,422,267 Total net position - governmental activities $ 2,100,286,055 The notes to the financial statements are an integral part of this statement 21 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Fiscal Year Ended September 30, 2021 Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Infrastructure Governmental Governmental Fund Agency Agency Revenue Sales Tax Funds Funds Revenues: Taxes $ 336,470,724 $ 2,348,500 1,334 $ $ 99,588,370 $ 117,978,047 $ 556,386,975 Licenses, permits and impact fees 388,820 - - 79,079,005 79,467,825 Intergovernmental 71,504,172 722,572 - 78,284,407 23,719,281 174,230,432 Charges for services 15,958,531 487,070 608,730 65,682 21,450,066 38,570,079 Fines and forfeitures 578,961 - - - 1,988,212 2,567,173 Interest income 631,077 6,188 1,523 18,585 121,201 796,490 1,575,064 Special assessments - - - - - 5,609,938 5,609,938 Miscellaneous 8,213,343 638,963 - 111,591 - 2,886,721 11,850,618 Total revenues 433,745,628 4,203,293 611,587 78,480,265 99,709,571 253,507,760 870,258,104 Expenditures: Current: General government 80,381,511 801,691 28,545,662 109,728,864 Public safety 193,802,036 820,308 32,032,503 226,654,847 Physical environment 758,771 1,281,921 19,009,001 21,049,693 Transportation 243,616 684,850 52,860,117 53,788,583 Economic environment 1,752,853 1,520,181 409,775 6,881,129 3,260,698 13,824,636 Human services 13,498,007 - - 63,285,623 407,052 77,190,682 Culture and recreation 18,052,787 - 631,417 30,808,837 49,493,041 Debt service Principal 773,120 34,978 43,914 30,231,629 31,083,641 Interest 78,211 188 120 13,072,218 13,150,737 Fiscal charges - - - - 1,084,533 1,084,533 Capital outlay 28,377,497 2,716,244 875,607 2,685,814 28,642,763 101,046,325 164,344,250 Total expenditures 337,718,409 4,236,425 1,320,548 77,116,787 28,642,763 312,358,575 761,393,507 Excess (deficit) of revenues over (under) expenditures 96,027,219 (33,132) (708,961) 1,363,478 71,066,808 (58,850,815) 108,864,597 Other financing sources (uses): Bondsissued Payment to current refunding escrow Premium on bonds issued Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances 271,054 73,042 - 221,988 - 95 1,056,911 - - - 47,206,761 529,603 87,503 47,146,993 (131,850,738) (3,125,300) (127,900) (46,000,000) (83,094,024) (2,595,697) 32,645 1,147,088 12,933,195 (2,628,829) (676,316) 2,510,566 99,175,000 99,175,000 (10,000,000) (10,000,000) 16,925,397 16,925,397 2,313,620 2,657,716 115,423 337,506 3,099,660 4,156,571 141,530,851 236,501,711 (65,680,974) (246,784,912) - 187,478,977 102,968,989 71,066,808 128,628,162 211,833,586 Fund balances at beginning of year 119,828,756 12,666,635 1,070,343 8,825,474 122,674,183 512,863,957 777,929,348 Fund balances at end of year $ 132, 661,951 $ 10, 337,806 $ 994,027 $ 11, 336,040 $ 193,740,991 $ 641, 992,119 $ 989, 662,934 The notes to the financial statements are an integral part of this statement. 22 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2021 Differences in amounts reported for governmental activities in the statement of activities on pages 18-19: Net change in fund balances - total governmental funds Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is allocated over their estimate useful lives and reported as depreciation and amortization expense. Capital outlay Depreciation and amortization expense Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net position in the statement of net position. Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. In the statement of net position, the gain or loss on the sale of capital assets is reported. However, in the governmental funds the proceeds from the sale of capital assets increase financial resources. The change in net position differs from the change in fund balances by the net book value of assets disposed. The statement of net position records the loss on termination of lease payable obligations as a reduction of net position. However, this is not recorded in the governmental funds as there is no flow of current financial resources Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. Debt proceeds provide current financial resources for governemntal funds, but issuing debt increases liabilities in the statement of net position. Repayment of principal on long-term debt is an expenditure in governmental funds, but a reduction of long-term liabilities in the statement of net position. Bond proceeds Bond, loan and note principal payments Payment to current refunding escrow Premium on bonds issued Lease proceeds Payments on lease obligations Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. $ 212,726,886 $ 164,344,250 (86,658,757) 77,685,493 801,740 2,440,560 (2,811,082) 1,265,311 453,411 $ (99,175,000) 29,837,218 10,000,000 (16,925,397) (2,657,716) 1,246,423 (77,674,472) Compensated absences $ (2,609,554) OPEB expense (1,331,211) Pension expense 21,996,675 Accrued interest on bonds and loans (1,348,440) Amortization of bond insurance premium (3,114) Amortization of deferred charges on refunding (1,274,546) Amortization of premium 2,260,160 17,689,970 The net revenues of internal service funds are reported with governmental activities. Change in net position - governmental activities The notes to the financial statements are an integral part of this statement. 1,146,823 $ 233,724,640 23 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2021 Original Final Budget Budget Actual Variance Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Miscellaneous Total revenues Expenditures: Current: General government Board of County Commissioners personal services Board of County Commissioners operating County manager administrative personal services County manager administrative operating Corporate planning and improvement personal services Corporate planning and improvement operating Corporate planning and improvement capital outlay Budget and management personal services Budget and management operating Budget and management capital outlay Administrative services personal services Administrative services operating Administrative services capital outlay Human resources administration personal services Human resources administration operating Human resources administration capital outlay Clerk of the Circuit Court personal services Clerk of the Circuit Court operating Clerk of the Circuit Court capital outlay Property Appraiser personal services Property Appraiser operating Property Appraiser capital outlay Tax Collector personal services Tax Collector operating Tax Collector capital outlay County attorney personal services County attorney operating County attorney capital outlay Circuit court operating County court operating State Attorney operating Public Defender operating Other general administrative personal services Other general administrative operating Facilities management personal services Facilities management operating Facilities management capital outlay Sheriff personal services Sheriff operating $ 348,145,500 $ 348,145,500 $ 336,470,724 $ (11,674,776) 381,300 381,300 388,820 7,520 49,701,000 49,701,000 71,504,172 21,803,172 10,528,385 12,962,219 15,958,531 2,996,312 417,300 417,300 578,961 161,661 2,326,300 2,326,300 1,231,300 (1,095,000) 15,314,300 15,314,300 16,643,143 1,328,843 426,814,085 429,247,919 442,775,651 13,527,732 1,228,000 1,238,900 1,234,039 4,861 122,800 125,800 68,051 57,749 1,072,600 1,427,600 1,403,135 24,465 63,100 83,100 48,476 34,624 1,123,900 1,128,900 1,074,797 54,103 109,900 115,100 79,784 35,316 5,200 - - - 736,900 736,900 718,555 18,345 71,600 71,600 48,293 23,307 1,500 1,500 - 1,500 3,292,900 3,296,886 3,170,198 126,688 403,500 485,200 354,430 130,770 20,000 - - - 1,798,300 1,798,300 1,649,531 148,769 657,100 751,236 572,271 178,965 2,000 2,000 - 2,000 8,949,200 9,623,100 9,596,063 27,037 2,934,500 3,864,600 3,761,590 103,010 506,800 536,800 537,043 (243) 6,810,211 6,820,545 6,600,049 220,496 2,126,774 2,126,774 1,627,499 499,275 35,000 35,000 42,475 (7,475) 12,687,363 12,535,156 12,170,964 364,192 3,984,699 3,565,976 3,593,762 (27,786) 8,832,446 9,403,376 9,403,376 - 2,452,500 2,452,500 2,251,238 201,262 361,100 682,668 262,447 420,221 10,200 10,200 - 10,200 40,300 40,300 35,101 5,199 27,000 27,000 15,262 11,738 420,200 438,200 426,782 11,418 308,900 378,900 362,969 15,931 200,000 266,200 197,580 68,620 11,351,700 10,583,800 10,217,860 365,940 5,799,800 5,896,600 5,883,741 12,859 9,903,100 9,861,560 9,035,068 826,492 43,000 15,950 15,950 - 4,401,500 4,401,500 4,841,677 (440,177) 179,000 179,000 89,840 89,160 (continued) 24 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2021 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 2,502,600 2,547,600 2,497,875 49,725 Supervisor of Elections operating 1,742,900 1,641,150 1,559,171 81,979 Supervisor of Elections capital outlay 15,000 71,750 99,084 (27,334) Public services operations personal services 978,600 1,435,608 1,390,558 45,050 Public services operations operating 143,800 215,781 162,453 53,328 Real property management personal services 701,500 731,500 727,665 3,835 Real property management operating 110,800 69,800 53,107 16,693 Total general government 99,269,793 101,721,916 97,879,809 3,842,107 Public safety Sheriff personal services 163,265,400 163,984,400 153,074,559 10,909,841 Sheriff operating 36,280,600 36,461,600 37,306,596 (844,996) Sheriff capital outlay 6,427,100 6,427,100 15,940,795 (9,513,695) Emergency management administration personal services 1,099,600 1,099,600 1,054,511 45,089 Emergency management administration operating 883,000 915,930 706,415 209,515 Emergency management administration capital outlay - 11,000 10,995 5 Helicopter operations operating 43,900 43,900 43,580 320 Medical examiner services operating 1,873,000 1,877,000 1,876,011 989 Total public safety 209,872,600 210,820,530 210,013,462 807,068 Physical environment Conservation and resource management personal services 644,400 627,384 593,577 33,807 Conservation and resource management operating 138,200 160,686 140,234 20,452 Conservation and resource management capital outlay 38,500 62,275 11,607 50,668 Immokalee cemetery operating 28,200 28,200 24,960 3,240 Total physical environment 849,300 878,545 770,378 108,167 Transportation Alternative transportation modes personal services 282,000 226,719 223,471 3,248 Alternative transportation modes operating 22,400 22,400 20,145 2,255 Total transportation 304,400 249,119 243,616 5,503 Economic environment Veterans services personal services 310,500 281,500 250,747 30,753 Veterans services operating 81,400 81,400 63,949 17,451 Veterans services capital outlay 2,600 2,600 - 2,600 Economic development personal services 251,700 272,559 189,766 82,793 Economic development operating 1,864,700 2,626,520 1,452,877 1,173,643 Economic development capital outlay - 32,955 (32,955) Total economic environment 2,510,900 3,264,579 1,990,294 1,274,285 Human services Health Care Responsibility Act operating 46,160 46,160 - 46,160 Domestic animal services personal services 2,393,000 2,353,000 2,315,252 37,748 Domestic animal services operating 1,131,800 1,373,719 1,258,316 115,403 Domestic animal services capital outlay 5,700 - - - Health department operating 1,858,400 1,858,400 1,690,740 167,660 Mental health operating 3,059,500 3,059,500 3,059,500 - Client assistance personal services 1,214,300 1,214,300 1,040,161 174,139 Client assistance operating 3,787,540 3,785,754 3,717,181 68,573 Client assistance capital outlay 7,600 - - - (continued) 25 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2021 Public services division office personal services Public services division office operating Public services division office capital outlay Total human services Culture and recreation Library administration personal services Library administration operating Park operations personal services Park operations operating Park operations capital outlay Parks maintenance personal service Parks maintenance operating Total culture and recreation Total expenditures Excess of revenues over expenditures Other financing sources (uses): Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Original Final Budget Budget Actual Variance 280,600 379,600 373,275 6,325 23,400 26,900 21,447 5,453 1,500 - - - 13,809,500 14,097,333 13,475,872 621,461 5,812,900 5,517,029 5,162,253 354,776 2,348,500 2,478,500 2,172,196 306,304 5,190,400 4,501,745 3,809,880 691,865 4,463,700 4,754,190 3,120,968 1,633,222 - 179,040 149,342 29,698 1,643,300 1,716,300 1,713,683 2,617 2,193,400 2,377,844 2,047,859 329,985 21,652,200 21,524,648 18,176,181 3,348,467 348,268,693 352,556,670 342,549,612 10,007,058 78,545,392 76,691,249 100,226,039 23,534,790 271,054 271,054 150,638 150,638 - - 145,733 145,733 15,193,600 49,278,658 47,396,861 (1,881,797) (104,045,892) (140,756,351) (131,850,738) 8,905,613 (88,852,292) (91,477,693) (83,886,452) 7,591,241 (10,306,900) (14,786,444) 16,339,587 31,126,031 89,955,600 92,399,811 92,399,811 $ 79,648,700 $ 77,613,367 $ 108,739,398 $ 31,126,031 Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Miscellaneous revenue related to indirect cost Change in inventory General government expenditures related to indirect cost Property Appraiser general government refunds to other governments not budgeted Public safety expenditures for multi -period projects not budgeted Public safety capital outlay funded by outside sources not budgeted Insurance proceeds related to Sheriff assets not budgeted Proceeds from sale of Sheriff assets not budgeted Advances budgeted as transfers Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. $ 16,339,587 (600,223) (8,429,800) (227,006) 8,429,800 (1,237,716) (1,151,347) (982,528) 911,178 71,350 (190,100) $ 12,933,195 26 COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2021 Revenues: Taxes Intergovernmental Charges for services Interest income Miscellaneous Total revenues Expenditures: Economic environment Personal services Operating Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 2,348,500 $ 2,348,500 $ 2,348,500 $ - 358,560 722,572 364,012 - 300,000 487,070 187,070 40,000 40,000 29,214 (10,786) 6,397,900 6,397,900 638,963 (5,758,937) 8,786,400 9,444,960 4,226,319 (5,218,641) 446,200 446,200 410,725 35,475 706,400 3,206,915 1,109,456 2,097,459 1,401,500 7,710,360 2,716,244 4,994,116 2,554,100 11,363,475 4,236,425 7,127,050 6,232,300 (1,918,515) (10,106) 1,908,409 5,759,400 9,119,700 3,729,603 (5,390,097) (9,555,800) (12,586,100) (6,325,300) 6,260,800 (3,796,400) (3,466,400) (2,595,697) 870,703 2,435,900 (5,384,915) (2,605,803) 2,779,112 436,500 5,706,815 5,706,815 $ 2, 772,400 $ 321,900 $ 3,101,012 $ 2,779,112 $ (2,605,803) (23,026) $ (2,628,8291 27 COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2021 Revenues: Taxes Licenses, permits and impact fees Charges for services Interest income Total revenues Expenditures: Economic environment Personal services Operating Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Leases Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Advances budgeted as transfers Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 893,300 $ 893,300 $ 893,300 $ - - 1,334 1,334 - 675,365 608,730 (66,635) 12,000 12,000 6,814 (5,186) 905,300 1,580,665 1,510,178 (70,487) 194,700 211,600 207,644 3,956 397,600 763,200 202,131 561,069 35,200 35,200 35,166 34 3,500 2,001,010 875,607 1,125,403 631,000 3,011,010 1,320,548 1,690,462 274,300 (1,430,345) 189,630 1,619,975 - - 73,042 73,042 185,000 1,864,645 320,769 (1,543,876) (257,900) (1,842,866) (391,166) 1,451,700 (72,900) 21,779 2,645 (19,134) 201,400 (1,408,566) 192,275 1,600,841 898,500 1,509,166 1,509,166 - $ 1, 999,900 $ 100,600 $ 1,701,441 $ 1,600,841 $ 192,275 (5,291) 30,000 $ 216,984 28 COLLIER COUNTY, FLORIDA GRANTS AND SHARED REVENUE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2021 Revenues: Intergovernmental Charges for services Interest income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Unbudgeted funds Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $728,100 $217,221,492 $77,515,420 $(139,706,072) - 552,863 65,682 (487,181) 40,700 68,921 147,099 78,178 - 269,643 111,591 (158,052) 768,800 218,112,919 77,839,792 (140,273,127) 11,500 1,806,714 801,691 1,005,023 688,800 831,826 316,054 515,772 312,600 2,722,577 1,281,921 1,440,656 - 859,850 684,850 175,000 - 116,867,341 7,099,256 109,768,085 756,600 102,532,903 94,285,623 8,247,280 100 1,975,399 631,417 1,343,982 4,500 4,500 4,437 63 - 32,068,613 2,280,513 29,788,100 1,774,100 259,669,723 107,385,762 152,283,961 (1,005,300) (41,556,804) (29,545,970) 12,010,834 - 4 95 91 1,133,000 53,601,374 47,241,993 (6,359,381) 95,000 15,171,354 (15,095,000) (30,266,354) 1,228,000 68,772,732 32,147,088 (36,625,644) 222,700 27,215,928 2,601,118 (24,614,810) 328,000 5,406,780 5,406,780 $550,700 $32,622,708 $8,007,898 $(24,614,810) $2,601,118 (128,514) 37,962 $2,510,566 29 ASSETS Current assets: Cash and investments Receivables: Trade, net Special assessments Interest Leases Due from other funds Due from other governments Deposits Inventory Prepaid costs Restricted assets: Cash and investments Interest receivable Due from other governments Total current assets Noncurrent assets: Restricted assets: Cash and investments Receivables: Special assessments Leases Capital assets: Land and nondepreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2021 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds $ 217,377,731 $ 34,210,570 $ 20,450,805 $ 8,080,095 $ 280,119,201 $ 79,770,537 14,225,243 1,046,323 2,296,216 99,758 17,667,540 737,494 86,778 - - - 86,778 - 402,483 158,560 25,486 9,078 595,607 109,839 26,147 - - 193,694 219,841 - 425 232,973 - 12,120 245,518 1,216,480 3,425,514 1,296,427 742,692 4,895 5,469,528 18,570 2,000 - - - 2,000 - 6,297,266 1,095,140 85,691 7,478,097 465,285 77,679 - - 77,679 3,016,037 12,901,422 98,171 156,752 465,282 13,621,627 - 23,038 - 249 - 23,287 - - 6,825,302 6,825,302 - 254,845,726 37,043,024 24,767,340 15,775,915 332,432,005 85,334,242 216,873,175 216,873,175 49,620 49,620 784,120 - 388,552 1,172,672 - 139,183,515 18,857,985 11,338,039 169,379,539 848,939 787,155,501 27,438,639 13,265,023 61,042,808 888,901,971 19,461,462 1,144,045,931 46,296,624 13,265,023 72,769,399 1,276,376,977 20,310,401 1,398,891,657 83,339,648 38,032,363 88,545,314 1,608,808,982 105,644,643 2,502,980 - - - 2,502,980 - 129,675 11,200 65,845 5,545 212,265 27,068 6,164,882 573,783 6,854,770 255,849 13,849,284 1,380,806 $ 8,797,537 $ 584,983 $ 6,920,615 $ 261,394 $ 16,564,529 $ 1,407,874 (Continued) 30 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2021 Business -type Activities Enterprise Funds Governmental Activities - County Emergency Internal Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds LIABILITIES Current liabilities: Accounts payable $ 11,391,064 $ 3,203,460 $ 656,806 $ 558,086 $ 15,809,416 $ 1,593,186 Wages payable 1,618,679 153,014 1,113,763 70,256 2,955,712 368,262 Retainage payable 2,361,928 17,613 - - 2,379,541 - Due to other funds 8,218 - 3,166 - 11,384 60,000 Due to other governments 31,678 422 2,214 22,013 56,327 25,084 Unearned revenues 47,163 - - 21,817 68,980 123,542 Self-insurance claims payable - - - - - 8,724,652 Compensated absences 1,946,301 180,944 326,595 90,705 2,544,545 479,910 Total OPEB liability 89,559 8,688 45,297 4,343 147,887 17,375 Net pension liability 48,891 4,829 21,133 2,133 76,986 9,432 Landfill post -closure liability - 53,162 - - 53,162 - Notes payable 5,918,250 - - 5,918,250 - Lease payable 66,559 28,889 95,448 3,234 Bonds and loans payable 6,762,000 - 6,762,000 - Liabilities payable from restricted assets: Accounts payable 2,172,307 2,109 2,229,256 4,403,672 Retainage payable 1,881,953 - 389,790 2,271,743 Due to other governments - 115,560 115,560 Refundable deposits 132,766 - 9,926 142,692 Unearned revenue - 98,171 - 98,171 Interest payable 2,673,326 - 2,673,326 Notes payable 2,042,598 2,042,598 Bonds and loans payable 2,254,000 - 2,254,000 - Total current liabilities 41,447,240 3,720,303 2,199,972 3,513,885 50,881,400 11,404,677 Noncurrent liabilities: Self-insurance claims payable - - - - - 2,219,757 Advance from other funds 51,022 - - 2,110,893 2,161,915 - Compensated absences 486,575 45,236 81,649 22,677 636,137 119,977 Lease payable 224,831 - 382,554 - 607,385 6,898 Total OPEB liability 1,631,126 158,215 824,980 79,108 2,693,429 316,430 Net pension liability 13,260,544 1,279,051 9,383,603 567,183 24,490,381 2,725,154 Landfill post closure liability - 1,573,710 - - 1,573,710 - Notes payable 42,469,000 - 42,469,000 Bonds and loans payable net 320,555,640 - 320,555,640 - Total noncurrent liabilities 378,678,738 3,056,212 10,672,786 2,779,861 395,187,597 5,388,216 Total liabilities 420,125,978 6,776,515 12,872,758 6,293,746 446,068,997 16,792,893 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 764,512 - - 561,956 1,326,468 - Deferred inflows of resources related to OPEB 150,446 13,937 76,896 6,955 248,234 30,611 Deferred inflows of resources related to pensions 15,165,501 1,389,264 19,519,145 621,033 36,694,943 3,518,131 Total deferred inflows of resources 16,080,459 1,403,201 19,596,041 1,189,944 38,269,645 3,548,742 NET POSITION Net investment in capital assets 717,871,805 45,606,209 12,853,580 70,691,851 847,023,445 20,300,268 Restricted for grants and other purposes - - 154,892 4,546,052 4,700,944 - Restricted for growth related capital expansion 23,302,654 - - 23,302,654 Restricted for renewal and replacement 300,000 300,000 Restricted for debt service 22,523,245 - - 22,523,245 - Unrestricted 207,485,053 30,138,706 (524,293) 6,085,115 243,184,581 66,410,614 Total net position $ 971,482, 557 $ 75,744,915 $ 12,484,179 $ 81,323,018 1,141,034,869 $ 86,710,882 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds (2,711,385) Net position of Business -type Activities $ 1,138,323,484 The notes to the financial statements are an integral part of this statement. 31 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2021 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating revenues: Charges for services $ 167,468,393 $ 58,500,481 $ 14,149,779 $ 8,201,301 $ 248,319,954 $ 114,142,814 Miscellaneous 548,496 577,645 56,172 198,477 1,380,790 64,068 Total operating revenues 168,016,889 59,078,126 14,205,951 8,399,778 249,700,744 114,206,882 Operating expenses: Personal services 36,185,929 3,590,259 19,742,095 1,569,962 61,088,245 8,105,000 General and administrative 70,726,652 46,170,892 5,348,263 15,621,035 137,866,842 26,381,760 Insurance claims paid - - - - - 77,373,881 Depreciation and amortization 49,911,860 1,915,458 2,689,980 4,063,561 58,580,859 4,014,619 Total operating expenses 156,824,441 51,676,609 27,780,338 21,254,558 257,535,946 115,875,260 Operating income (loss) 11,192,448 7,401,517 (13,574,387) (12,854,780) (7,835,202) (1,668,378) Non -operating revenues (expenses): Operating grants and contributions 2,576,939 1,155,581 17,386,521 5,274,840 26,393,881 3,959 Interest income 302,706 43,635 25,947 21,507 393,795 63,824 Insurance reimbursement 79,482 1,344,998 8,915 23,710 1,457,105 2,410,307 Interest expense (8,458,928) (12,836) (8,108) (5,958) (8,485,830) (178) Gain (loss) on disposal of capital assets (2,642,466) 24,578 16,514 (92,594) (2,693,968) 357,061 Total non -operating revenues (expenses) (8,142,267) 2,555,956 17,429,789 5,221,505 17,064,983 2,834,973 Income (loss) before contributions and transfers 3,050,181 9,957,473 3,855,402 (7,633,275) 9,229,781 1,166,595 Capital grants and contributions 34,493,156 50,000 - 8,489,149 43,032,305 7,347 Transfers in 10,146,066 547,200 4,553,798 7,362,610 22,609,674 503,500 Transfers out (10,240,411) (1,090,162) (7,800) (15,000) (11,353,373) (1,476,600) Total transfers and contributions 34,398,811 (492,962) 4,545,998 15,836,759 54,288,606 (965,753) Change in net position 37,448,992 9,464,511 8,401,400 8,203,484 63,518,387 200,842 Net position - beginning 934,033,765 66,280,404 4,082,779 73,119,534 86,510,040 Net position - ending $ 971,482, 557 $ 75,744,915 $ 12,484,179 $ 81,323,018 $ 86,710,882 Consolidation adjustment for internal service fund activities related to enterprise funds (945,981) Change in net position of Business -type Activities $ 62,572,406 The notes to the financial statements are an integral part of this statement 32 Cash flows from operating activities: Cash received for services Cash received from other funds for services Cash received from employees for services Cash received from refundable deposits Cash received from retirees for services Cash payments on behalf of retirees Cash payments for goods and services Cash payments for self insurance claims Cash payments to employees Cash payments for interfund services Cash payments from refundable deposits Cash payments on refundable deposits Net cash provided by (used for) operating activities Cash flows from non -capital financing activities: Cash received from operating grants Cash transfers from other funds Cash transfers to other funds Net cash provided by (used for) non -capital financing activities Cash flows from capital and related financing activities: System development charges Special assessment collections Receipts from insurance reimbursements Proceeds from bond issued Proceeds from disposal of capital assets Proceeds from capital grants Proceeds from leasing activities Payments for capital acquisitions Principal payments on direct placement loans and notes Principal payments on leases and financed purchase obligations Interest and fiscal agent fees paid Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and investments COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2021 Business -type Activities Er Emergency County Water Solid Waste Medical and Sewer Disposal Services $ 167,977,122 $ 59,140,427 $ 13,689,115 $ 113,000 570,737 (59,434,910) (44,824,167) (1,559,511) (36,500,282) (3,633,871) (24,211,273) (12,881,192) (1,300,057) (3,820,671) (102,000) (596,279) Funds Governmental Activities - Other Internal Funds Total Service Funds 8,384,362 $ 249,191,026 $ - - - 103,709,340 - 7,704,320 683,737 - - 1,901,385 - (1,216,913) (12,240,689) (118,059,277) (25,631,018) - (77,539,667) (1,597,146) (65,942,572) (8,345,539) (3,462,066) (21,463,986) (1,281,013) 50 50 - (698,279) 59,171,738 9,356,790 (15,902,340) (8,915,489) 43,710,699 (699,105) - 114,653 16,402,279 4,399,344 20,916,276 - 17,263,084 20,814,502 4,553,798 8,504,139 51,135,523 503,500 (10,307,924) (28,081,743) (7,800) (106,767) (38,504,234) (1,476,600) 6,955,160 (7,152,588) 20,948,277 12,796,716 33,547,565 (973,100) 16,273,483 16,273,483 76,034 76,034 - 79,482 1,344,998 8,915 23,710 1,457,105 3,310,307 159,417,819 - - - 159,417,819 - 200,193 70,903 40,254 142,507 453,857 361,861 375,000 50,000 - 7,817,438 8,242,438 - 15,082 - 187,813 202,895 (69,466,110) (7,625,194) (6,188,924) (7,875,000) (91,155,228) (2,163,756) (15,688,962) (15,688,962) (77,012) (107,035) (184,047) (3,184) (7,645,212) (8,108) (7,653,320) (178) 83,559,797 (6,159,293) (6,254,898) 296,468 71,442,074 1,505,050 155,057 40,613 23,429 17,457 236,556 61,869 155,057 40,613 23,429 17,457 236,556 61,869 149,841,752 (3,914,478) (1,185,532) 4,195,152 148,936,894 (105,286) Cash and investments, October 1, 2020 297,310,576 38,223,219 21,793,089 4,350,225 361,677,109 79,875,823 Cash and investments, September 30, 2021 $ 447,152,328 $ 34, 008,741 $ 20, 007,557 $ 8, 445,377 $ 510, 114,003 $ 79, 770,537 Current cash and investments $ 217,377,731 $ 34,210,570 $ 20,450,805 $ 8,080,095 $ 280,119,201 $ 79,770,537 Current cash and investments -restricted 12,901,422 98,171 156,752 465,282 13,621,627 - Noncurrent cash and investments -restricted 216,873,175 - - - 216,873,175 - Cash and investments, September 30, 2021 $ 447,152,328 $ 34,308,741 $ 20,607,557 $ 8,545,377 $ 510,614,003 $ 79,770,537 (Continued) 33 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2021 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating income (loss) $ 11,192,448 $ 7,401,517 $ (13,574,387) $ (12,854,780) $ (7,835,202) $ (1,668,378) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Inventory Prepaid costs Accounts payable Retainage payable Wages payable Due to other funds Due to other governments Compensated absences Refundable deposits Unearned revenue Self-insurance claims payable Total OPEB liability Deferred outflows of resources related to OPEB Deferred inflows of resources related to OPEB Net pension liability Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions Deferred inflows of resources related to leases Landfill post closure liability Total adjustments Net cash provided by (used for) operating activities Non -cash investing, capital and financing activities: 49,911,860 1,915,458 2,689,980 4,063,561 58,580,859 4,014,619 (348,825) 60,822 (670,792) (9,415) (968,210) (457,695) 157,961 34,812 - 192,773 (709,680) 200,502 204 88,982 - 289,688 21,635 (105,028) - (42,150) 23,608 (123,570) (96,757) (1,495) - - - (1,495) (1,708,673) (1,856,423) 46,668 78,513 90,170 (1,641,072) (31,571) 363,806 - - - 363,806 - 111,214 (1,571) 130,388 7,419 247,450 36,356 (33,652) (4,800) 3,166 - (35,286) 60,000 31,676 422 (3,308) 232 29,022 19,895 3,348 9,445 (523,573) 8,437 (502,343) 12,974 11,000 - 50 11,050 - - (25,542) (6,233) (31,775) 328,869 - - - (230,830) 1,050 (11,549) 46,961 (1,719) 34,743 (19,044) (37,739) 3,304 17,230 1,653 (15,552) 6,608 76,746 7,444 38,816 3,722 126,728 14,888 34,067 (1,567,616) (26,949,829) (734,581) (29,217,959) (4,212,517) (17,286,411) 217,236 3,985,510 107,129 (12,976,536) 594,479 2,464,879 1,299,695 18,782,153 580,756 23,127,483 3,325,717 14,280,754 - - (195,498) 14,085,256 - - (29,159) - (29,159) - 47,979,290 1,955,273 (2,327,953) 3,939,291 51,545,901 969,273 $ 59,171,738 $ 9,356,790 $ (15,902,340) $ (8,915,489) $ 43,710,699 $ (699,105) Change in fair value of investments $ (1,118,306) $ Developer infrastructure contributions 18,180,218 Contributed capital assets 31,094 Change in capital related grant receivable (375,000) Change in special assessment receivable (67,673) Bond underwriters discount net from bond proceeds 579,471 Capital related accounts payable 6,743,246 Capital related retainage 3,674,674 The notes to the financial statements are an integral part of this statement. (137,178) $ (83,042) $ (25,256) $ (1,363,782) $ (239,441) - 18,180,218 - 470,879 501,973 7,347 200,832 (174,168) - - (67,673) - - 579,471 - 672,802 1,299,206 8,715,254 10,132 17,613 389,790 4,082,077 - 34 COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS September 30, 2021 Custodial Funds ASSETS Cash and investments $ 39,239,345 Trade receivable, net 25,930 Total assets $ 39,265,275 LIABILITIES Due to other governments $ 12,570,847 Due to individuals 94,943 Total liabilities $ 12,665,790 FIDUCIARY NET POSITION Restricted for individuals and governments $ 26,599,485 The notes to the financial statements are an integral part of this statement. 35 COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Fiscal Year Ended September 30, 2021 Custodial Funds ADDITIONS: Contributions for individuals $ 38,309,381 Fees collected for other governments 754,019,093 Miscellaneous 140,683 Total additions 792,469,157 DEDUCTIONS: Beneficiary payments to individuals 28,078,817 Payment of fees to other governments 753,891,979 Payments to other entities 63,683 Total deductions 782,034,479 Net increase in fiduciary net position 10,434,678 Fiduciary net position - beginning of year, as restated 16,164,807 Fiduciary net position - end of year $ 26,599,485 The notes to the financial statements are an integral part of this statement. 36 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Collier County, Florida (County) have been prepared in accordance with accounting principles generally accepted in the United States of America for governmental entities (GAAP). The more significant of the County's accounting policies are described below. THE REPORTING ENTITY Entity status for financial reporting purposes is governed by Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended. The GASB is the standard setting body for the establishment of GAAP in governmental entities. Determination of the financial reporting entity of the County is founded upon the objective of accountability. These financial statements include the County government (the primary government) and two types of legally separate component units (blended and discrete). Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board and impose its will on the organization or there is a potential specific financial benefit/burden relationship. Financial accountability also exists if an organization is fiscally dependent and there is a potential specific financial benefit/burden relationship. The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court and Comptroller, the Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court and Comptroller. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes, the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex-officio. These entities are legally separate, however the County has the financial and operational responsibility for these component units. In accordance with GASB Statement No. 14, as amended, these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District (District) - The District was established by Chapter 88-499, Laws of Florida, as amended by Chapter 03-353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Collier County Community Redevelopment Agency (CRA)_ The CRA was established by Resolution 2000-82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas. These two redevelopment areas are geographically separate and distinct. Collier County Airport Authority - The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010-10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization (MPO) - The MPO was created in 1981 by Collier County Resolution 81-222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenues fund. The County's discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units' Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB Statement No. 14, as amended, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. Collier County Housing Finance Authority - The Authority was formed in 1980 by Collier County Ordinance 80-66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Health Facilities Authority -The Authority was established in 1979 by Collier County Ordinance 79-95 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". 37 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Collier County Industrial Development Authority -The Authority was created in 1978 by Collier County Resolution 78-94, rescinded and replaced by Resolution 79-34, to facilitate the financing of projects that promote economic growth and increase opportunities for employment in the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Educational Facilities Authority - The Authority was created in 1999 by Collier County Resolution 99-17 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller. Administrative Offices Collier Water and Sewer District Collier County Airport Authority 3339 East Tamiami Trail, Suite #302 2005 Mainsail Drive, Suite #1 Naples, Florida 34112 Naples, Florida 34114 Collier County Metropolitan Planning Organization Immokalee Community Redevelopment Agency 2885 South Horseshoe Drive 750 South 5th Street Naples, Florida 34104 Immokalee, Florida 34142 Bayshore Gateway Community Redevelopment Agency Collier County Health Facilities Authority 3299 Tamiami Trail East, Bldg. F Suite #103 Collier County Housing Finance Authority Naples, Florida 34112 Collier County Industrial Development Authority Collier County Educational Facilities Authority 725 High Pines Drive Naples, Florida 34103 GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government -wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business -type activities of Collier County. The government -wide financial statements consist of a Statement of Net Position and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business -type activities. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements with the exception of interfund services provided and used. The internal service activity has also been eliminated from the government -wide financial statements. Aggregate internal service fund activity is reported in full as a single column in the proprietary fund financial statements. Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Position reports all financial and capital resources of Collier County's governmental and business -type activities. Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources, and is shown in three categories: net investment in capital assets; restricted net position and unrestricted net position. The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree the particular program has been self-supporting. Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly identifiable to a particular function. The effect of indirect expense allocations has been eliminated in the government -wide financial statements. Depreciation expense for capital assets that can specifically be identified with a function is recorded as a direct expense of that function. Depreciation for capital assets that serve all functions is recorded as a direct expense of the general government function on the government -wide Statement of Activities. All interest on general long term debt is considered indirect and is reported separately in the government -wide Statement of Activities. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. The fund financial statements follow the government -wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are reconciliations explaining the differences between the governmental fund presentation and the government -wide presentation. 38 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund — the General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County's consolidated General Fund. Bayshore/Gateway and Immokalee Community Redevelopment Area Special Revenue Funds — the Redevelopment funds are used to account forthe receipt and expenditure of tax increment revenues generated by the Bays hore/G ateway and Immokalee Community Redevelopment Areas. Grants and Shared Revenue Special Revenue Fund — the Grants and Shared Revenue fund is used to account for the receipt and expenditure of federal, state and local grants. Infrastructure Sales Tax Capital Project Fund — the Infrastructure Sales Tax fund is used to account for the receipt and expenditure of an additional one -cent sales surtax approved by the voters. The following are reported as major enterprise funds: County Water and Sewer Fund — the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County's unincorporated area. Solid Waste Disposal Fund — the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Emergency Medical Services Fund — the Emergency Medical Services fund is used to account for the provision of emergency ambulance and paramedical services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Funds — Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Permanent Fund — Permanent funds are used to account for resources that were legally restricted to the extent that only earnings and not principal may be spent. Collier County operates a permanent fund to defray costs associated with the maintenance and management of conservation land. Debt Service Funds — Debt service funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for principal and interest related to long-term obligations. Capital Project Funds — Capital project funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. Enterprise Funds — Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds — Internal service funds are used to account for the provision of goods and services by one department to other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently reports the following Internal Service Funds: Self -Insurance, Sheriff's Self -Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology. Fiduciary Funds - Custodial Funds — Fiduciary funds - custodial funds are used to account for assets held by Collier County as an agent for individuals, private organizations and other governments. Custodial funds are custodial in nature. Custodial funds are accounted for using the accrual basis of accounting. The Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain custodial funds. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. The government -wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues) and 39 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) decreases (i.e., expenses) in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are recognized in the period incurred. Grant and similar revenues are recognized when eligibility requirements are met. Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. Generally, revenues are considered available when they are collected within the current period or within 60 days after the end of the fiscal year. Grant revenues are an exception and are considered available when eligibility requirements are met. Primary revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues. Property taxes are discussed later in Note 1. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include accrued compensated absences, pension, other postemployment benefits and principal and interest on long-term debt. When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses, and then unrestricted as needed. When using the unrestricted resources, committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1. Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2. Within eighty days of the certification of value, but not earlierthan sixty-five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled -back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3. Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4. A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5. The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6. The County Manager approves intradepartmental budget changes within the same fund of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as a matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7. Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board departments except for the custodial funds. The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts operates as a fee officer, and as such, prepares its non -court budget in accordance with Section 218.35, Florida Statutes. 40 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the Board. The Clerk of Court's budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission. Budgets are adopted for all governmental departments except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non -budgeted revenues and expenditures and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. For further information regarding encumbrances, refer to Note 17 on page 78. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. CASH AND INVESTMENTS Florida Statutes Section 218.415 establishes guidelines for Florida local government investment policies. The County's current investment policy, as amended, was adopted December 9, 2014 by Resolution 2014-260 and is consistent with the requirements of that statute. This investment policy authorized the following investments: 1. U.S. Treasury and Government Guaranteed — U.S. Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S. Government; 2. Federal Agency/Government Sponsored Enterprise — Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise; 3. Corporates — U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic corporation, financial institution, non-profit or other entity; 4. Municipals — Obligations, including both taxable and tax-exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory; 5. Agency Mortgage Backed Securities — Mortgage backed securities, backed by residential, multi -family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass-throughs, collateralized mortgage obligations and real estate mortgage investment conduits; 6. Non -Negotiable Certificates of Deposit - Non-negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 7. Depository Bank Account — Negotiated Order of Withdrawal accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 8. Commercial Paper — U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation, company, financial institution, trust or other entity, including both unsecured debt and asset backed programs; 9. Repurchase Agreements — Repurchase agreements must be governed by written agreement, counterparty must be a Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank. Acceptable underlying securities must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or U.S. Agency backed mortgage related securities with an aggregate current market value of at least 102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential; 10. Money Market Funds — Shares in open end and no load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange Commission Rule 2a-7; 11. Fixed -Income Mutual Funds — Shares in open end and no load fixed income mutual funds whose underlying investments would be permitted for purchase under the investment policy and all its restriction; 41 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 12. Local Government Investment Pools — State, local government or privately sponsored investment pools that are authorized pursuant to state law; 13. The Florida Local Government Surplus Funds Trust Funds (Florida Prime). The County maintains a cash and investment pool that is available for use by all funds. Investment income is allocated to individual funds based upon their average daily balance in the cash and investment pool. Each fund's individual equity in the County's cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time without notice or penalty. The statement of cash flows for the proprietary funds also uses this methodology. Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service. Investments in the Local Government Investment Pools (FL PALM and FLCLASS) and the Local Government Surplus Funds Trust Fund (Florida PRIME) are stated at fair value. The County categorizes its fair value measurements within the fair value hierarchy established in GASB Statement No. 72, Fair Value Measurements and Application. Florida Public Assets for Liquidity Management's FL PALM Portfolio Board of Trustees has determined that it will manage the FL PALM Portfolio in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants requirements, as applicable, for continued use of amortized cost. Therefore, the fair value of the County's position in the pool is the same as the value of the pool shares. Throughout the year, and as of September 30, 2021, FL PALM Portfolio contained certain floating and adjustable rate securities. These investments represented 34.0% of the FL PALM Portfolio's investments as of September 30, 2021. In addition, and in accordance with GASB 79, the County should disclose the presence of any limitations or restrictions on withdrawals in notes to the financial statements. The FL PALM portfolio Board of Trustees (Trustees) can suspend the right of withdrawal or postpone the date of payment if the Trustees determine that there is an emergency that makes the sale of a Portfolio's securities or determination of its net asset value not reasonably practical. Florida Cooperative Liquid Assets Securities System (FLCLASS) follows Financial Accounting Standards Board (FASB) Accounting Standards Topic (ASC) 820 Fair Value Measurement and Disclosure for financial reporting purposes. ASC 820 defines fair value, establishes a single framework for measuring fair value, and requires disclosures about fair value measurement. FLCLASS does not meet all of the specific criteria outlined in GASB 79 for measurement at amortized cost. FLCLASS measures its investments at fair value in accordance with paragraph 41 of GASB 79 and paragraph 11 of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as amended, and therefore a participant's investment in FLCLASS is not required to be categorized within the fair value hierarchy for purposes of paragraph 81a(2) of GASB 72. Throughout the year, and as of September 30, 2021, FLCLASS Daily Liquidity Pool and FLCLASS Enhanced Cash Pool contained certain floating and adjustable rate securities. These investments represented 29.0% and 7.9%, respectively, of the FLCLASS Daily Liquidity Pool and Enhanced Cash Pool as of September 30, 2021. Florida PRIME, administered by the State Board of Administration (SBA) is considered a qualifying external investment pool that meets all of the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the County's position in the pool is the same as the value of the pool shares. The Florida PRIME investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2021, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 9.6% of Florida PRIME's portfolio at September 30, 2021. In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, as a participant in a qualifying external investment pool, the County should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool's authority to impose liquidity fees or redemption gates) in notes to the financial statements. With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days" With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. 42 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) As of September 30, 2021, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally all receivables outstanding in excess of one year, except for Emergency Medical Services receivable, which uses an estimated uncollectible percentage. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first -in, first -out method. Inventory in the governmental funds consists of supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non -spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government -wide and proprietary fund financial statements are reported as an expense when consumed. Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell. The value of these properties includes the original purchase price plus the cost of any rehabilitation. Inventory held for resale of $3,923,733 is classified as restricted, which indicates that they do not constitute available resources. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the governmental or business -type activities columns in the government -wide financial statements. Capital assets are reported at cost where historical records are available and at estimated fair value in the absence of historical cost records. Capital contributions are recorded at acquisition value on the date donated. The County capitalizes expenditures with a cost of $5,000 or more and with a useful life in excess of one year. Betterments and major improvements which significantly increase value, change capacity or extend useful lives are also capitalized. Expenditures for maintenance and repairs are charged to operating expenses. The cost of capital assets retired or sold, together with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is credited or charged to earnings in the government -wide financial statements and proprietary fund financial statements. Depreciation is calculated using the straight-line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Estimated Useful Life Buildings 20-45 years Infrastructure 3-30 years Improvements other than buildings 4-45 years Machinery and equipment 3-20 years FINANCED PURCHASE OBLIGATIONS In the government -wide financial statements and proprietary fund financial statements, financed purchase obligations and the related cost of assets acquired are reflected in the Statement of Net Position. For financed purchase obligations originating in governmental funds, an expenditure for the asset and an offsetting other financial source are reflected in the fund financial statements in the year of inception. LEASES The County is a lessee for noncancellable leases of land, building, office space and equipment. The County recognizes a lease liability and an intangible right -to -use lease asset (lease asset) in the government -wide and proprietary fund financial statements. At the commencement of a lease, the County initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the term of the lease. Key estimates and judgments related to leases include how the County determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. 43 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The County uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are comprised of fixed payments and any purchase option price that the County is reasonably certain to exercise. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options are only included in the lease term if the lease is reasonably certain to be extended. The County monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Leased assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position. Payments due under the lease contracts include fixed payments plus, for many of the County's leases, variable payments. For office space leases that include variable payments, those payments include the County's proportionate share of property taxes, insurance, and common area maintenance. For office equipment leases for which the County has elected not to separate lease and non -lease components, maintenance services are provided by the lessor at a fixed cost and are included in the fixed lease payments. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including in -substance fixed payments), less any lease incentives receivable. • Amounts expected to be payable by the County under residual value guarantees. • The exercise price of a purchase option if it is reasonably certain the option will be executed. • Payments of penalties for terminating the lease, if the lease term reflects the County exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. Extension and termination options are included in a number of property and equipment leases across the County. These are used to maximize operational flexibility in terms of managing the assets used in the County's operations. The majority of extension and termination options held are exercisable only by the County and not by the respective lessor. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, the lessee's incremental borrowing rate is used. The incremental borrowing rate is the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right -of -use asset in a similar economic environment with similar terms, security and conditions. Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are initially measured using the index or rate as of the commencement of the lease term. The County is a lessor for noncancellable leases of land, building, office space and equipment. The County recognizes a lease receivable and a deferred inflow of resources in the government -wide, proprietary fund and governmental fund financial statements. At the commencement of a lease, the County initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the term of the lease. Key estimates and judgments include how the County determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The County uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is comprised of fixed payments from the lessee. The County monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 44 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred outflows of resources reported in the County's statement of net position represent changes in actuarial assumptions, the net difference between projected and actual earnings on investments, changes in the proportion and differences between the County's contributions and proportionate share of contributions and the County's contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. In addition, deferred outflows related to the difference between expected and actual economic experience relating to the Florida Retirement System Pension and the Other Post Employment Benefits Plan were reported. These amounts will be recognized as increases in pension expense and OPEB expense in future years. The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of resources reported in the County's statement of net position represent the difference between expected and actual economic experience, changes in actuarial assumptions, net difference between projected and actual earnings on investments, and changes in the proportion and differences between the County's contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan, the Retiree Health Insurance Subsidy Program and the Other Post Employment Benefits Plan. These amounts will be recognized as reductions in pension expense and OPEB expense in future years. The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee agreements and leases, as deferred inflows. BOND PREMIUMS, LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums and bond insurance costs for the governmental activities and the business -type activities are deferred and amortized over the term of the bonds using the straight-line method which approximates the effective interest method. Bond premiums are presented as an increase to the face amount of bonds payable, while bond insurance costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets. Pursuant to GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. The gain or loss is amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized in the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are also reported as other financing sources. Issuance costs, including bond insurance costs, whether or not they have been paid from debt proceeds are reported as debt service expenditures. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2021 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1 st delinquent date as follows: November - 4%, December - 3%, January - 2%, and February -1 %. Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1 st of each year. No accrual for the property tax levy becoming due in November 2021 is included in the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. 45 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Key dates in the property tax cycle for the fiscal year ended September 30, 2021 are as follows: Property Tax Cycle Assessment roll compiled Assessment roll certified Millage resolution approved Beginning of fiscal year for tax levy Taxes due and payable (levy date) Collection dates Due date Delinquent (lien date) Tax certificates sold ACCOUNTING ESTIMATES Date January 1, 2020 July 1, 2020 Within 35 days of the certification of the assessment roll October 1, 2020 November 1, 2020 By November 30: 4% discount By December 31: 3% discount By January 31: 2% discount By February 29: 1 % discount March 31, 2021 April 1, 2021 Prior to June 1, 2021 The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED REVENUE In instances where assets have been received by the County for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Unearned revenues of the County as of September 30, 2021 are gift certificates issued and prepayments on accounts. ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. It is the Board of County Commissioners' policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all employees. The Sheriff's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 2,000 hours, and up to 500 hours of unused vacation time. Both the Clerk of the Circuit Court and Comptroller's and Tax Collector's policies allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government -wide financial statements and the proprietary fund financials. A liability is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are considered due and payable as of year end. PENSIONS In the government -wide and proprietary funds statements of net position, liabilities are recognized for the County's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS's and HIS's fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 46 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) OTHER POST EMPLOYMENT BENEFITS (OPEB) In the government -wide and proprietary funds statements of net position, liabilities are recognized for the County's total OPEB liability as determined by an actuarial review of the healthcare coverage purchased by retirees to continue participation in the County's self -insured health plan. The County is responsible for covering the excess of retiree claims over premium payments made by retirees to the County, which creates an other post employment benefit. OPEB expense is recognized immediately for changes in the OPEB liability resulting from current year service cost, interest on the total OPEB liability and changes of benefit terms or actuarial assumptions. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS For the year ended September 30, 2021, the financial statements include the impact of the adoption of GASB Statement No. 84, Fiduciary Activities. The primary objective of this statement is to enhance the consistency and comparability of fiduciary activity reporting by state and local governments. This statement establishes criteria for identifying fiduciary activities and a reporting model to improve the usefulness of fiduciary activity information for assessing the accountability of governments in their role as a fiduciary. For additional information, please see Note 19 on page 81. 47 NOTE 2 — CASH AND INVESTMENTS As of September 30, 2021, the County had the following cash, cash equivalents and investments: Investment Final Maturities Fair Value First Call Date Call Frequency Rating Cash on hand N/A $ 86,350 N/A N/A N/A Demand deposits N/A 120,565,759 N/A N/A N/A Cash with fiscal agent N/A 10,678,128 N/A N/A N/A Money market / CD N/A 570,690 N/A N/A N/A State Board of Administration Pool: Florida PRIME N/A 393,987,398 N/A N/A AAAm Other Intergovernmental Pools: FLCLASS N/A 110,415,080 N/A N/A AAAm FL PALM N/A 60,190,973 N/A N/A AAAm US Treasury Note 10/15/21 25,026,925 none N/A AA+ US Treasury Note 12/31/21 476,853 none N/A AA+ US Treasury Note 12/31/21 50,194,950 none N/A AA+ US Treasury Note 12/31/21 50,194,950 none N/A AA+ US Treasury Note 02/28/22 503,515 none N/A AA+ US Treasury Note 04/15/22 505,900 none N/A AA+ US Treasury Note 05/15/22 506,405 none N/A AA+ US Treasury Note 06/30/22 400,124 none N/A AA+ US Treasury Note 08/31/22 325,075 none N/A AA+ Federal Farm Credit Bank 03/03/23 9,930,015 none N/A AA+ Federal Home Loan Mortgage Corp. 06/01/23 27,198,784 12/01/21 quarterly AA+ US Treasury Note 06/15/23 500,115 none N/A AA+ Bank of America Corp Note 06/21/23 24,706,062 12/21/21 quarterly AA+ Federal Home Loan Mortgage Corp. 11/02/23 24,999,225 11/02/21 annual AA+ Federal Home Loan Mortgage Corp. 11/13/23 24,986,690 05/13/22 semi-annual AA+ Federal Home Loan Mortgage Corp. 11/24/23 24,987,638 11/24/21 quarterly AA+ Federal Farm Credit Bank 11/30/23 549,879 none N/A AA+ CitiGroup Global Markets 01/29/24 24,766,333 01/29/22 quarterly AA+ Federal Home Loan Bank 01/29/24 16,938,553 07/29/21 quarterly AA+ Federal Home Loan Bank 01/29/25 23,244,382 07/29/21 quarterly AA+ Bank of America Corp Note 02/16/24 27,880,693 02/16/22 quarterly AA+ Federal Home Loan Bank 03/12/24 24,998,974 04/12/21 monthly AA+ US Treasury Note 03/15/24 24,911,125 none N/A AA+ Federal Farm Credit Bank 03/28/24 498,470 none N/A AA+ Farmer Mac 04/01/24 9,983,367 none N/A AA+ US Treasury Note 04/15/24 24,968,750 none N/A AA+ Federal Home Loan Bank 05/24/24 24,948,237 02/24/21 continuously AA+ US Treasury Note 07/15/24 24,927,725 none N/A AA+ US Treasury Note 08/15/24 49,813,010 none N/A AA+ Federal Farm Credit Bank 10/15/24 497,890 none N/A AA+ Federal Home Loan Bank 11/26/24 24,964,261 11/26/21 quarterly AA+ Federal National Mortgage Assoc. 12/16/24 24,919,199 06/16/21 quarterly AA+ Federal Home Loan Bank 12/30/24 24,970,478 09/30/21 quarterly AA+ Federal Farm Credit Bank 01/13/25 392,136 none N/A AA+ Federal Home Loan Bank 01/15/25 496,690 none N/A AA+ Federal Farm Credit Bank 02/04/25 246,633 none N/A AA+ Federal Farm Credit Bank 02/10/25 498,065 none N/A AA+ Federal Home Loan Bank 02/26/25 24,979,211 11/26/21 quarterly AA+ Federal Home Loan Bank 03/28/25 498,750 none N/A AA+ Federal Farm Credit Bank 05/06/25 24,956,670 05/06/22 continuously AA+ Federal Home Loan Bank 08/27/25 25,014,397 09/27/21 monthly AA+ Federal Farm Credit Bank 09/16/25 495,455 none N/A AA+ Federal Home Loan Bank Step 09/30/25 23,949,408 12/30/21 quarterly AA+ Federal Home Loan Mortgage Corp. 11/25/25 494,830 none N/A AA+ Federal Home Loan Mortgage Corp. 12/01/25 24,818,104 12/01/21 quarterly AA+ Federal National Mortgage Assoc. 12/10/25 24,791,877 06/10/21 quarterly AA+ Federal Home Loan Mortgage Corp. 12/17/25 24,810,856 12/17/21 quarterly AA+ Federal Home Loan Mortgage Corp. 01/07/26 350,836 none N/A AA+ Federal Home Loan Bank 01/29/26 247,068 none N/A AA+ Federal Home Loan Bank Step 01/29/26 247,510 none N/A AA+ Federal Home Loan Bank Step 02/18/26 494,800 none N/A AA+ Federal Home Loan Bank 02/26/26 495,325 none N/A AA+ Federal Home Loan Bank Step 03/17/26 24,951,931 06/17/21 quarterly AA+ Federal Home Loan Bank Step 03/23/26 498,210 none N/A AA+ Federal Home Loan Bank Step 04/28/26 24,977,121 07/28/21 quarterly AA+ Federal Home Loan Bank Step 06/16/26 24,902,195 09/16/21 quarterly AA+ Federal Home Loan Mortgage Corp. 06/23/26 495,565 none N/A AA+ Federal Home Loan Bank Step 06/24/26 24,894,067 09/24/21 quarterly AA+ Federal Home Loan Bank Step 06/30/26 24,934,175 09/30/21 quarterly AA+ Federal Home Loan Mortgage Corp. 07/30/26 123,948 none N/A AA+ Federal Farm Credit Bank 08/03/26 99,111 none N/A AA+ Federal Farm Credit Bank 09/01/26 494,615 none N/A AA+ Federal Farm Credit Bank 09/01/26 24,833,147 09/01/22 continuously AA+ Federal Home Loan Bank 09/16/26 14,956,995 09/16/22 quarterly AA+ Federal Home Loan Bank 09/30/26 24,917,675 12/30/21 quarterly AA+ $ 1,685,076,306 * Standard and Poor's rating 48 NOTE 2 — CASH AND INVESTMENTS The County maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is displayed on the balance sheet under the heading of Cash and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County's investment policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (Florida PRIME), other Local Government Investment Pools rated AAAm/Aaa-mf, S1 or equivalent, local direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers' acceptances rated "AA" or higher, prime commercial paper rated "A-1" and "P-1", tax-exempt obligations rated "AA" or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County's master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. Florida PRIME is an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. As of September 30, 2021, the County had $393,987,398 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool. All of these funds are held in the Florida PRIME pool. Florida PRIME is rated "AAAm" by Standard & Poor's Global Ratings Services. Florida Cooperative Liquid Assets Securities System (FLCLASS) is an intergovernmental investment pool established pursuant to the Florida Interlocal Cooperation Act of 1969, as amended, (Section 163.01, Florida Statutes) and is an authorized investment under Section 218.415, Florida Statutes. FLCLASS is supervised by a board of trustees comprised of eligible participants of the FLCLASS program. As of September 30, 2021, the County had $110,415,080 invested in FLCLASS. Of this amount, $20,389,909 was invested in the FL CLASS Daily Liquidity Fund and $90,025,171 was invested in the FL CLASS Enhanced Cash Pool. The FLCLASS Daily Liquidity Pool is rated "AAAm" by Standard and Poor's Global Ratings Services and the FLCLASS Enhanced Cash Pool is rated "AAAf/S1" by Fitch Ratings. Florida Public Assets for Liquidity Management (FL PALM) is a common law trust organized under the authority of the Florida Interlocal Cooperation Act of 1969, as amended, (Section 163.01, Florida Statutes) and Section 218.415 of the Florida Statutes. FL PALM was created on October 22, 2010 by contract among its participating governmental units and is governed by trustees. The fund is an investment opportunity for State school districts, political subdivisions of the State or instrumentalities of political subdivisions of the State. As of September 30, 2021, the County had $60,190,973 invested in FL PALM. Of this amount, $4,190,973 was invested in the FL PALM Portfolio and $56,000,000 was invested in the FL PALM Term Pool. The FL PALM Portfolio is rated "AAAm" by Standard and Poor's Global Ratings Services. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public Deposits Act". Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range from 25% to 150% depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. As of September 30, 2021, the County had demand deposits of $120,565,759. All balances in excess of the Federal Depository Insurance Corporation (FDIC) insurance for these demand deposits are fully collateralized by the multiple financial institutions' collateral pool in accordance with Florida Statutes Section 280. The discretely presented component unit demand deposits of $387,083 are secured by the FDIC as individual entity balances do not exceed $250,000. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The County's investment policy requires execution of a third -party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the County's name. 49 NOTE 2 — CASH AND INVESTMENTS (Continued) CREDIT RISK The County's investment policy establishes limitations on portfolio composition in order to control the concentration of credit risk. The following maximum limits per sector, are established by policy: Sector U.S. Treasury U.S. Agencies Corporates Certificates of Deposit Repurchase Agreements Commercial Paper State Investment Pools INTEREST RATE RISK Investment Policy Limit 100% 80% - Maximum 40% per issuer 25% 30% 20% 25% 50% Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. The weighted average days to maturity (WAM) of Florida PRIME on September 30, 2021, was 49 days. The weighted average life (WAL) of Florida PRIME at September 30, 2021, was 64 days. The weighted average days to maturity (WAM) of the FL PALM Portfolio was 53 days, while the weighted average life (WAL) was 80 days. The weighted average days to maturity (WAM) of the FLCLASS Liquidity Pool on September 30, 2021, was 47 days, while the weighted average life (WAL) was 84 days. The weighted average days to maturity (WAM) of the FLCLASS Enhanced Cash Pool at September 30, 2021 was 177 days, while the weighted average life (WAL) was 192 days. Next interest rate reset dates for floating rate securities are used in the calculation of the respective weighted average days to maturity. The portion of the County's cash and investments invested in U.S. Government Agencies is detailed as follows, at September 30, 2021: Issuer % of Portfolio Federal Home Loan Bank 22.64% Federal Farm Credit Bank 3.77% Federal Home Loan Mortgage Corporation 9.10% Federal National Mortgage Association Federal Agricultural Mortgage Corporation Total U.S. Government Agencies Reconciliation of cash and investments to the basic financial statements: Primary government: Cash and investments Cash with Fiscal Agent Restricted cash and investments - current Restricted cash and investments - noncurrent Custodial funds: Cash and investments Total 2.95% 0.59% 39.05% 627,749,439 10,678,128 119,810,831 887,598,563 39,239,345 $ 1,685,076,306 50 NOTE 2 — CASH AND INVESTMENTS (Continued) FAIR VALUE MEASUREMENTS GASB Statement No. 72, Fair Value Measurements and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GASB Statement No. 72 are described as follows: Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the County has the ability to access. Level 2 — Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs, if any, reflect the County's own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the County's own data. The County has the following recurring fair value measurements as of September 30, 2021: US Treasury Notes and Bills classified as Level 1 of the fair value hierarchy were valued using prices quoted in active markets for those securities. As of September 30, 2021, the fair value of the County's US Treasury Notes and Bills was $253,255,422. US Agency obligations and corporate notes classified as Level 2 of the fair value hierarchy were valued using quoted prices for similar assets in active markets for those securities. As of September 30, 2001, the fair value of the County's US Agency obligations was $657,973,419 and the fair value of its corporate note was $77,353,088. NOTE 3 — TRADE RECEIVABLES Trade receivables for Governmental and Business -type Activities are net of an allowance for doubtful accounts as follows Less Allowance Trade for Doubtful Net Trade Receivables Accounts Receivables General Fund $ 716,115 $ 489,980 $ 226,135 Grants and Shared Revenue 13,254 - 13,254 Nonmajor Governmental Funds 2,623,120 401,096 2,222,024 Total receivables reported in Governmental Funds 3,352,489 891,076 2,461,413 Total receivables reported in Internal Service Funds Total Governmental Activities trade receivables County Water and Sewer Solid Waste Disposal Emergency Medical Services Nonmajor Enterprise Funds Total Business -type Activities trade receivables 737,494 737,494 $ 4,089,983 $ 891,076 $ 3,198,907 $ 14,321,327 $ 96,084 $ 14,225,243 1,064,124 17,801 1,046,323 23,658,678 21,362,462 2,296,216 116,050 16,292 99,758 $ 39,160,179 $ 21,492,639 $ 17,667,540 The County has multi and single-family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI), Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program (SHIP) in addition to some affordable housing impact fee programs. If the homeowners remain in their homes for the full term of the agreement, the loan or deferred impact fee is forgiven. If the property is transferred or sold before the end of the agreement, the proceeds from the repayment including interest, if any, are then repaid and returned to the appropriate program. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. 51 NOTE 4 - LEASE RECEIVABLES The County leases land, building, office space and equipment to third parties. As of September 30, 2021, the County's lease receivables were valued at $8,212,187 and the deferred inflow of resources associated with these leases that will be recognized as revenue over the term of the leases was $7,772,579. The lease receivables for Governmental and Business -type Activities at September 30, 2021 were as follows: GOVERNMENTAL ACTIVITIES Land leases - annual lease payments totaling $87,957 plus interest at a rate of 2.29%, due dates ranging from January 20, 2022 to March 13, 2048. $5,510,218 Building and office space leases - annual lease payments totaling $55,691 plus interest at a rate ranging from 2.29%- 2.31%, due dates ranging from October 1, 2021 to January 1, 2029. 506,113 Equipment leases - annual lease payments totaling $73,668 plus interest at a rate of 2.29%, due dates ranging from December 19, 2021 to May 21, 2030. 803,343 Total Governmental Activities Lease Receivables $6,819,674 BUSINESS -TYPE ACTIVITIES Land leases - annual lease payments totaling $15,081 plus interest at a rate ranging from 0.15%to 2.29%, due dates ranging from October 1, 2021 to August 26, 2041. $810,267 Building and office space leases - annual lease payments totaling $187,813 plus interest at a rate of 2.29%, due dates ranging from October 1, 2021 to August 1, 2028. 582,246 Total Business -type Activities Lease Receivables $1,392,513 The payments for the lease receivables are expected to be received in the subsequent years as follows: Fiscal Year Governmental Activities Principal Interest 2022 $228,756 $151,267 2023 256,260 145,713 2024 274,758 140,066 2025 291,850 133,230 2026 311,528 126,384 2027-2031 1,510,376 522,756 2032-2036 1,370,208 372,898 2037-2041 1,749,000 189,254 2042-2046 590,768 56,946 2047-2051 236,170 5,600 Business -like Activities Principal Interest $219,841 $29,059 104,947 25,365 80,308 23,622 83,783 21,697 85,702 19,778 281,389 74,516 225,710 50,770 310,833 20,943 $6,819,674 $1,844,114 $1,392,513 $265,750 52 NOTE 4 - LEASE RECEIVABLES (Continued) The County has two leasing agreements which qualify to be treated as regulated in accordance with the requirements of GASB 87. The County leases land and a building to third parties under these agreements. The land lease is for twenty one years with an option to extend for nine years and annual lease payments of $2,448. The building lease is for ten years and monthly lease payments of $1,753. The County recognized $23,200 in lease revenue during the current fiscal year related to these leases. As of September 30, 2021, the remaining nominal amount of revenue that will be recognized as revenue over the lease term associated with these leases amounts to $102,922 which is expected to be received for each of the subsequent five years and in five-year increments thereafter as stated below: Ficral Vaar 2022 2023 2024 2025 2026 2027-2031 2032-2036 2037-2041 2042-2046 2047-2051 NOTE 5 — INTERFUND PAYABLES AND RECEIVABLES ADVANCES Business -type Activities $23,491 18,230 2,448 2,448 2,448 12,240 12,240 12,240 12,240 4,896 Advances were made to funds for the purposes of capital acquisitions and improvements. Reimbursements will take place over the next several years as funds are available. Advances to and advances from other funds at September 30, 2021 were as follows: Governmental Activities: General Fund Immokalee Community Redevelopment Agency Other governmental funds: Unincorporated Area MSTD Community Development Improvement Districts Fire Control Districts Tourist Development Amateur Sports Complex Other Capital Projects Total Governmental Activities Business -type Activities: County Water and Sewer Other business -type funds: Airport Authority Total Business -type Activities Total Advances Advance To Advance From $ 500,962 $ 88,901 139,923 2,120,157 - - 232,862 - 268,100 17,200,000 - 17,200,000 9,264 19,961,042 17,799,127 51,022 2,110,893 2,161,915 $ 19,961,042 $ 19,961,042 53 NOTE 5 - INTERFUND PAYABLES AND RECEIVABLES (Continued) DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. Due from and due to other funds at September 30, 2021 were as follows: Due From Due To Governmental Activities: General Fund $ 4,686,446 $ 3,945,447 Bayshore Gateway Community Redevelopment Agency 554,600 319,882 Immokalee Community Redevelopment Agency - 68,817 Grants and Shared Revenues 87,925 1,423,483 Other Governmental Funds: Road Districts 531,016 23,040 Unincorporated Area MSTD 823,269 245 Community Development 1,752 - Water Management and Pollution Control 27,240 Pelican Bay Special Revenue 110,142 - Improvement Districts 42,314 557,215 Fire Control Districts 11,608 - Lighting Districts 6,637 - 911 Enhancement Fee - 95,888 Tourist Development 2,017,211 39,703 800 MHz IRCP Fund 22,559 - State Court Administration 65,427 - Conservation Collier 1 21,116 Court Information Technology 103,666 - Court Services - 358,193 Court Facilities 73,849 - Other Public Safety Revenue Funds 12,018 99,013 Other Special Revenue Funds 21,764 - Pepper Ranch Conservation Bank 21,116 Forest Lakes Limited General Obligation Bonds 4,358 - Special Obligation Revenue Bonds - 9,045,000 County -Wide Capital Improvement 8,077 170,515 Parks Improvements 8,275 - County Wide Library 248,300 Correctional Facilities Impact Fee 804,800 Emergency Medical Services Impact Fee 127,100 Water Management 585,697 Pelican Bay Capital 21,437 Parks Impact Fee 1,524,500 Road Construction 233,544 Government Facilities Impact Fee 1,701,000 Law Enforcement Impact Fee 307,800 - Other Capital Projects 148 18,653 Total other governmental funds 9,466,625 10,428,581 Business -type Activities: County Water and Sewer $ 425 $ 8,218 Solid Waste 232,973 - Emergency Medical Services - 3,166 Other Nonmajor Business -type Funds: Collier Area Transit 12,120 - Internal Service Funds 1,216,480 60,000 Total All Funds $ 16,257,594 $ 16,257,594 54 NOTE 6 — CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2021 is as follows: October 1, Transfers and September 30, 2020 Additions Deductions Reclassifications 2021 Governmental Activities: Capital assets not depreciated: Land and other non -depreciable assets $ 473,415,268 $ 38,535,009 $ (443,522) $ 12,579,620 $ 524,086,375 Construction in progress 82,353,087 101,324,290 (1,015,465) (87,628,218) 95,033,694 Total capital assets not depreciated 555,768,355 139,859,299 (1,458,987) (75,048,598) 619,120,069 Capital assets depreciated: Buildings Infrastructure Improvements other than buildings Machinery and equipment Right -to -use leased land Right -to -use leased buildings Right -to -use leased equipment Total capital assets depreciated Less accumulated depreciation: Buildings Infrastructure Improvements other than buildings Machinery and equipment Right -to -use leased land Right -to -use leased buildings Right -to -use leased equipment Total accumulated depreciation Total depreciable capital assets, net Total Governmental Activities capital assets, net Business -type Activities: Capital assets not depreciated: Land and other non -depreciable assets Construction in progress Total capital assets not depreciated Capital assets depreciated: Buildings Improvements other than buildings Machinery and equipment Right -to -use leased buildings Right -to -use leased equipment Total capital assets depreciated Less accumulated depreciation: Buildings Improvements other than buildings Machinery and equipment Right -to -use leased buildings Right -to -use leased equipment Total accumulated depreciation Total depreciable capital assets, net Total Business -type Activities capital assets, net 479,446,517 1,127,674 (110,720) 26,894,678 507,358,149 1,190,805,581 313,516 (5,800) 12,739,299 1,203,852,596 334,266,912 2,253,641 (724,302) 34,066,636 369,862,887 263,957,995 20,949,272 (23,404,989) 4,090,077 265,592,355 454,273 16,123 (19,544) - 450,852 4,145,357 73,042 (1,776,166) 2,442,233 3,648,115 2,568,551 (374,972) - 5,841,694 2,276,724,750 27,301,819 (26,416,493) 77,790,690 2,355,400,766 233,970,722 15,582,697 (110,720) 249,442,699 518,927,017 38,204,700 (5,800) 557,125,917 216,057,076 10,575,238 (614,076) - 226,018,238 185,551,860 24,930,042 (23,364,206) 294,185 187,411,881 45,891 46,216 (19,544) - 72,563 662,979 586,549 (863,162) 386,366 472,107 747,937 (82,090) - 1,137,954 1,155,687,652 90,673,379 (25,059,598) 294,185 1,221,595,618 1,121,037,098 (63,371,560) (1,356,895) 77,496,505 1,133,805,148 $ 1,676,805,453 $ 76,487,739 $ (2,815,882) $ 2,447,907 $ 1,752,925,217 $ 34,429,530 $ 946,129 $ (14,149) $ (2,452,441) $ 32,909,069 144,469,979 83,623,154 (437,092) (91,185,571) 136,470,470 178,899,509 84,569,283 (451,241) (93,638,012) 169,379,539 168,183,096 - (1,225) 10,651,121 178,832,992 1,329,492, 567 18,416,416 72, 556,831 1,420,465,814 89,730,178 3,742,814 (3,520,372) 7,687,968 97,640,588 751,507 - (24,529) - 726,978 158,456 - 158,456 1,588,315,804 22,159,230 (3,546,126) 90,895,920 1,697,824,828 103,130,220 4,977,094 (1,225) 108,106,089 596,160,855 44,329,629 640,490,484 54,684,841 9,161,622 (3,425,108) (294,185) 60,127,170 80,513 79,243 (24,529) 135,227 30,616 33,271 63,887 754,087,045 58,580,859 (3,450,862) (294,185) 808,922,857 834,228,759 (36,421,629) (95,264) 91,190,105 888,901,971 $ 1,013,128,268 $ 48,147, 554 $ (546,505) $ (2,447,907) $ 1,058,281,510 55 NOTE 6 - CAPITAL ASSETS (Continued) Schedule of depreciation and amortization for fiscal year 2021: General Government $ 8,023,138 Public Safety 22,965,126 Physical Environment 6,964,579 Transportation 36,595,305 Economic Environment 791,741 Human Services 307,690 Culture and Recreation 11,011,178 Subtotal 86,658,757 Internal Service Funds 4,014,622 Total Governmental Activities $ 90,673,379 Water and Sewer $ 49,911,860 Solid Waste 1,915,458 EMS 2,689,980 Airport Authority 1,907,088 Mass Transit 2,156,473 Total Business -type Activities $ 58,580,859 NOTE 7 - LONG-TERM DEBT SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations for the year ended September 30, 2021: Governmental Activities: Limited General Obligation Bonds Revenue Bonds Payable Premiums on Bonds Payable Direct Placement Loans and Notes Financed Purchase Obligations Leases Payable Self -Insurance Claims Compensated Absences Total Business -type Activities: Revenue Bonds Payable Premiums on Bonds Payable Direct Placement Loans and Notes Notes Payable Financed Purchase Obligations Leases Payable Landfill Closure Liability Compensated Absences Total 000's Omitted October 1, Premium September Due within 2020 Additions Reductions Amortized 30, 2021 one year $ 1,060 $ - $ (1,060) $ $ - $ 197,765 99,175 (13,810) 283,130 16,910 12,060 16,926 (2,260) 26,726 - 136,549 - (24,967) 111,582 10,843 56 - (28) 28 28 7,255 2,658 (2,488) 7,425 877 10,364 78,168 (77,588) 10,944 8,725 32,304 12,780 (10,157) - 34,927 12,028 $ 397,413 $ 009,707 $ (130,098) $ (2, 660) $ 774,762 $ 49,411 $ 124,290 $ 128,900 $ $ - $ 253,190 $ 2,055 14,234 31,097 (1,065) 44,266 - 98,165 - (15,689) 82,476 14,852 70 - 70 70 79 (79) - - 808 (105) 703 95 1,656 - (29) 1,627 53 3,683 1,492 (1,994) - 3,181 2,545 $ 242,985 $ 661,489 $ (17,896) $ (1,065) $ 385,513 $ 19,670 56 NOTE 7 — LONG-TERM DEBT (Continued) DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2021 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds, due in annual installments of $2,700,000 to $6,605,000 through June 1, 2023; interest at 3.00% to 5.00% and collateralized by a pledge on the combined gas tax proceeds. Bonds were issued for purposes of advance refunding the County's 2003 Gas Tax Revenue Bonds. $ 7,375,000 $24,620,000 2010B Special Obligation Refunding Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding the County's 2002 Capital Improvement Revenue Bonds. 2,630,000 $92,295,000 2011 Special Obligation Refunding Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding a portion of the County's 2003 and 2005 Capital Improvement and Refunding Revenue Bonds. 39,360,000 $73,805,000 2013 Special Obligation Refunding Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding all of the County's remaining 2003 and 2005 Capital Improvement and Refunding Revenue Bonds. 73,805,000 $62,965,000 2018 Tourist Development Tax Revenue Bonds, due in annual installments of $1,030,000 to $3,605,000 through October 1, 2048; interest at 4.00% to 5.00% and collateralized by a pledge on tourist development tax revenues. Bonds were issued for purposes of financing the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. 60,785,000 $75,100,000 2020A Special Obligation Revenue Bonds, due in annual installments of $165,000 to $6,045,000 through October 1, 2045; interest at 4.00% to 5.00% and collateralized by a pledge on legally available non - ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of providing funding for the acquisition, construction and equipping of various capital improvements and refunding a commercial paper loan. 75,100,000 $24,075,000 2020B Taxable Special Obligation Revenue Bonds, due in annual installments of $2,275,000 to $2,920,000 through October 1, 2029; interest at 2.00% and collateralized by a pledge on legally available non - ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of financing the purchase of certain real property. 24,075,000 Total Governmental Activities Revenue Bonds $ 283,130,000 57 NOTE 7 — LONG-TERM DEBT (Continued) Governmental Activities Direct Placement Loans and Notes Payable $89,780,000 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds. Loan was issued to advance refund a portion of the County's 2005 Gas Tax Revenue Bonds. $ 42,945,000 $43,713,000 2017 Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $113,000 to $3,724,000 through July 1, 2034; interest at 3.09% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to advance refund a portion of the County's 2010 Special Obligation Revenue Bonds. 40,577,000 $28,060,000 2019 Taxable Special Obligation Taxable Revenue Note (Bank Term Loan) due in annual installments of $1,555,000 to $5,165,000 through October 1, 2029; interest at 2.74% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to acquire the real property known as the Golden Gate Golf Course. 28,060,000 Total Governmental Activities Direct Placement Loans and Notes Payable $ 111,582,000 Total Governmental Activities Obligations 394,712,000 Unamortized Bond Premium 26,725,629 Governmental Activities Obligations, Net 421,437,629 Less Current Portion of Governmental Activities Obligations (27,753,000) Long -Term Portion of Governmental Activities Obligations, Net $ 393,684,629 BUSINESS -TYPE ACTIVITIES Business -type Activities Revenue Bonds $48,105,000 2016 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $5,035,000 to $7,090,000 through July 1, 2036; interest at 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of currently refunding all of the District's remaining 2006 Water and Sewer Revenue Bonds. $ 48,105,000 $76,185,000 2019 Collier County Water and Sewer Revenue Bonds due in annual installments of $4,385,000 to $14,160,000 through July 1, 2039; interest at 3.00% to 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements within the Collier County Water and Sewer District. 76,185,000 $128,900,000 2021 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,055,000 to $11,300,000 through July 1, 2046; interest at 4.00% to 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of financing the acquisition, construction and equipping of various water and wastewater improvements within the Collier County Water and Sewer District. 128,900,000 Total Business -type Activities Revenue Bonds $ 253,190,000 58 NOTE 7 — LONG-TERM DEBT (Continued) Business -type Activities Direct Placement Loans and Notes Payable $17,687,000 2015 Collier County Water and Sewer Refunding Revenue Bond (Bank Term Loan) due in annual installments of $2,533,000 to $4,561,000 through July 1, 2022; interest at 1.75% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to advance refund a portion of the District's 2006 Water and Sewer Revenue Bonds. $ 4,561,000 $35,965,000 2018 Collier County Water and Sewer Revenue Bond (Bank Term Loan) due in annual installments of $1,560,000 to $3,945,000 through July 1, 2029; interest at 2.41 % and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to finance the acquisition of water and wastewater utility facilities within the Golden Gate Community. 27,555,000 $89,982,000 2016 County Water and Sewer District Refunding Revenue Note with Synovus Financial Corporation, due in monthly installments of $2,881,000 to $9,574,000 through July 1, 2029; interest at 1.80% and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. Loan was issued to currently refund all of the District's State Revolving Fund Loans. 50,360,000 Total Business -type Activities Direct Placement Loans and Notes Payable $ 82,476,000 Business -type Activities Note Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits. Non -interest bearing agreement. $ 69,848 Total Business -type Activities Note Payable $ 69,848 Total Business -type Activities Obligations $ 335,735,848 Unamortized Bond Premium $ 44,265,640 Business -type Activities Obligations, Net $ 380,001,488 Less Current Portion of Business -type Activities Obligations Payable from Unrestricted Assets $ (12,680,250) Less Current Portion of Business -type Activities Obligations Payable from Restricted Assets (4,296,598) Long -Term Portion of Business -type Activities Obligations, Net $ 363,024,640 59 NOTE 7 — LONG-TERM DEBT (Continued) SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY The total annual debt service requirements to maturity of long-term debt, excluding compensated absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows: Governmental Activities Fiscal Year Revenue Bonds Direct Placement Loans and Notes Payable Totals Principal Interest Principal Interest 2022 $ 16,910,000 $ 10,885,881 $ 10,843,000 $ 3,023,292 $ 41,662,173 2023 15,130,000 10,196,882 13,300,000 2,721,153 41,348,035 2024 11,865,000 9,580,156 17,966,000 2,381,044 41,792,200 2025 12,380,000 9,135,181 18,336,000 1,932,527 41,783,708 2026 13,545,000 8,702,350 4,474,000 1,483,982 28,205,332 2027-31 58,490,000 37,210,473 35,825,000 4,293,044 135,818,517 2032-36 66,375,000 24,566,463 10,838,000 676,617 102,456,080 2037-41 35,205,000 14,276,900 - - 49,481,900 2042-46 42,830,000 6,497,000 49,327,000 2047-51 10,400,000 635,000 11,035,000 Total $ 283,130,000 $ 131,686,286 $ 111,582,000 $ 16,511,659 $ 542,909,945 Business -type Activities Fiscal Direct Placement Loans Year Revenue Bonds and Notes Payable Notes Payable Totals Principal Interest Principal Interest Principal Interest 2022 $ 2,055,000 $ 10,214,806 $ 14,852,000 $ 1,650,373 $ 69,848 $ $ 28,842,027 2023 2,105,000 10,502,681 11,539,000 1,370,677 - 25,517,358 2024 2,210,000 10,397,431 11,763,000 1,141,595 25,512,026 2025 2,320,000 10,286,931 11,429,000 907,993 24,943,924 2026 2,435,000 10,170,931 10,103,000 679,884 23,388,815 2027-31 39,010,000 47,913,656 22,790,000 890,774 110,604,430 2032-36 75,985,000 34,157,246 - - 110,142,246 2037-41 74,750,000 17,734,500 92,484,500 2042-46 52,320,000 6,442,400 - - - 58,762,400 Total $253,190,000 $157,820,582 $ 82,476,000 $ 6,641,296 $ 69,848 $ $500,197,726 CURRENT YEAR FINANCING ACTIVITIES On November 3, 2020, Collier County issued the Series 2020A Special Obligation Revenue Bonds and the Series 2020B Taxable Special Obligation Revenue Bonds in the respective par amounts of $75,100,000 and $24,075,000. The Series 2020A bonds were issued for various stormwater and aquatic facility improvements as well as to refinance an outstanding commercial paper loan. The Series 2020B bonds were issued for purposes of acquiring certain real property. The final maturity of the Series 2020A bonds is October 1, 2045, with interest rates from 4.00% to 5.00%. The final maturity of the Series 2020B bonds is October 1, 2029, with an interest rate fixed at 2.00%. On July 27, 2021, the Board of County Commissioners of Collier County, Florida and ex-officio as the governing Board of the Collier County Water -Sewer District (District) issued the Series 2021 Water and Sewer Revenue Bonds in the par amount of $128,900,000. These bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements related to Golden Gate City and surrounding areas, the northeast service area and the utilities' portion of the planned Government Operations Business Park. The Series 2021 bonds were issued on a parity with the District's outstanding Water and Sewer Refunding Revenue Bond, Series 2015, Water and Sewer Refunding Revenue Bond, Series 2016, Water and Sewer Revenue Bond, Series 2018 and Water and Sewer Revenue Bond, Series 2019. The final maturity of the Series 2021 bonds is July 1, 2046, with interest rates from 4.00%to 5.00% NOTE 7 — LONG-TERM DEBT (Continued) RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2010B, 2011, 2013, 2020A and 2020B Special Obligation Refunding Revenue Bonds and Series 2017 and 2019 Special Obligation Refunding Revenue Notes, the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment if necessary, from non -ad valorem revenues amounts sufficient to pay principal and interest on the combined Special Obligation Bonds and Notes. The total non -ad valorem revenue collections pledged to payment of the Special Obligation Bonds and Notes for the fiscal year ended September 30, 2021 was $137,768,005. According to County resolutions authorizing the issuance of the Series 2012 Gas Tax Revenue Refunding Bonds and Series 2014 Gas Tax Refunding Revenue Bond, the issues are payable from and secured by liens on gas tax revenues. Total pledged gas tax revenue collections for the fiscal year ended September 30, 2021 were $22,919,743. According to County resolutions authorizing the issuance of the Series 2018 Tourist Development Tax Revenue Bonds, the issues are payable from and secured by a lien on tourist development tax revenues. Total tourist development tax revenues for the fiscal year ended September 30, 2021 were $36,192,118. The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating expenses, to repay $285,306,000 in Series 2015, 2016, 2018, 2019 and 2021 senior lien revenue bonds and direct placement loans. Proceeds from the bonds and loans were used for the expansion of the District's water and sewer systems as well as the refinancing of bonds issued for purposes of rehabilitation or expansion of the District's water and sewer systems. Principal and interest are payable through July 1, 2046, solely from the net revenues and certain other fees and charges derived from operation of the County's Water and Sewer District (District). The pledge of net revenues by the District from the operation of the system does not constitute a lien upon the system or any other property of the County. The resolutions authorizing the revenue bonds include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions, which together with system development fees (impact fees) and special assessment proceeds (if applicable) received shall be at least 125% of the annual debt service requirements for the bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on the bonds. Fiscal year 2021 pledged revenues, net of operating expenses (excluding depreciation and amortization), were $64,014,693, and $80,288,176 when system development fees were included. Principal and interest paid on the bonds during fiscal year 2021 totaled $12,565,757, providing coverage of 509% and 639%, respectively. In addition, bond covenants require a renewal and replacement amount equal to $300,000 in the District funds. The District was in compliance with these covenants for the year ended September 30, 2021. In addition, the District has a note outstanding in the amount of $50,360,000 with Synovus Financial Corporation. This note is collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and system development fees. The lien is subordinate in all respects to the liens placed upon pledged revenues established by bonded and direct placement loan indebtedness. The District's note was in compliance with these covenants for the year ended September 30, 2021. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. FINANCED PURCHASE OBLIGATIONS Financed purchase obligations at September 30, 2021 amounted to $28,437. These obligations, which are collateralized by equipment and vehicles, have total annual installments of $29,702 including interest of 4.45% and mature through 2022. As of year-end, equipment acquired through financed purchase in the governmental activities had a historical cost of $240,498 and accumulated depreciation of $228,473. M NOTE 7 — LONG-TERM DEBT (Continued) Future payments of financed purchase obligations as of September 30, 2021 were as follows: Governmental Activities 2022 $ 29,702 Total payments 29,702 Less amount representing interest (1,265) Present value of financed purchase payments $ 28,437 LEASES PAYABLE The County is a lessee for noncancellable leases of land, building, office space and equipment. At September 30, 2021, the County's lease payable of $8,128,231 was composed of the following: GOVERNMENTAL ACTIVITIES Leases with options to purchase equipment - annual payments totaling $66,101 plus interest at rates ranging from 0.32%to 11.75%, due dates ranging from October 1, 2021 to February 1, 2023. $85,164 Land leases - annual payments totaling $38,896 plus interest at rates ranging from 1.51 % to 2.40%, due dates ranging from October 1, 2021 to July 1, 2051. 378,771 Building and office space leases - annual payments totaling $195,320 plus interest at rates ranging from 0.17% to 2.11%, due dates ranging from October 1, 2021 to December 11, 2039. 2,174,140 Equipment and vehicle leases - annual payments totaling $576,290 plus interest at rates ranging from 0.14% to 1.93%, due dates ranging from October 1, 2021 to September 1, 2033. 4,787,323 Total Governmental Activities Leases Payable $7,425,398 BUSINESS -TYPE ACTIVITIES Lease with option to purchase equipment - annual payments totaling $5,575 plus interest at a rate of 1.51 %, due dates ranging from October 1, 2021 to September 1, 2023. Building and office space leases - annual payments totaling $62,504 plus interest at rates ranging from 1.56% to 1.93%, due dates ranging from October 1, 2021 to September 1, 2034. Equipment leases - annual payments totaling $27,369 plus interest at rates ranging from 0.24% to 1.55%, due dates ranging from October 1, 2021 to October 1, 2024. Total Business -type Activities Leases Payable $11,234 606,781 84,818 $702,833 62 NOTE 7 - LONG-TERM DEBT (Continued) The future principal and interest lease payments as of September 30, 2021, were as follows: Governmental Activities Business -type Activities Fiscal year Principal Interest Principal Interest 2022 $ 877,023 $ 96,375 $ 95,448 $ 11,552 2023 780,677 85,119 97,704 9,949 2024 675,543 76,689 94,708 8,371 2025 533,064 68,639 71,630 6,939 2026 461,197 62,161 71,706 5,723 2027-2031 2,293,640 220,581 175,482 17,090 2032-2036 1,358,934 86,222 96,155 2,445 2037-2041 442,627 15,266 - - 2042-2046 1,276 224 - 2047-2051 1,417 83 - Total $ 7,425,398 $ 711,359 $ 702,833 $ 62,069 NOTE 8 - CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi -family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuing authority, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2021, the outstanding principal amount payable on all component unit conduit debt was $630,406,651 and is made up of the following: Industrial development revenue bonds $ 284,254,344 Housing finance revenue bonds 83,961,859 Health facilities revenue bonds 196,313,242 Educational facilities revenue bonds 65,877,206 Total $ 630,406,651 NOTE 9 - DEFINED BENEFIT PENSION PLANS BACKGROUND The Florida Retirement System (FRS) Pension Plan was created by Chapter 121, Florida Statutes, effective December 1, 1970. The FRS is a qualified retirement plan under Section 401(a), Internal Revenue Code, created to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits are defined and described in detail. Such provisions may be amended at any time by the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs. M NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' web site (www. dms.myflorida.com). The County's pension expense totaled $6,933,515 for both the FRS Pension Plan and HIS Plan for the year ended September 30, 2021. FLORIDA RETIREMENT SYSTEM PENSION PLAN PLAN DESCRIPTION The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class — Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class — Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) — Members in senior management level positions. Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of - living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. 64 NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) The following chart shows the percentage value for each year of service credit earned: Class, Initial Enrollment and Retirement Age/Years of Service: % Value (per year of service) Regular Class members initially enrolled before July 1, 2011 Retirement up to age 62 or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68 Regular Class members initially enrolled on or after July 1, 2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68 Elected County Officers' Class 3.00 Senior Management Service Class 2.00 Special Risk Class Service from December 1, 1970 through September 30, 1974 2.00 Service on and after October 1, 1974 3.00 As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. CONTRIBUTIONS The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer contribution rates by job class for the periods from October 1, 2020 through June 30, 2021 and from July 1, 2021 through September 30, 2021, respectively, were as follows: Regular employees — 10.00% and 10.82%; Special Risk — Regular-24.45% and 25.89%; County Elected Officials — 49.18% and 51.42%1- Senior Management Services — 27.29% and 29.01 %; and DROP participants — 16.98% and 18.34%. The County's contributions to the FRS Plan were $30,034,061 for the year ended September 30, 2021. PENSION COSTS At September 30, 2021, the County reported a liability of $58,187,652 for its proportionate share of the FRS Plan's net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2021. The County's proportion of the net pension liability was based on the County's contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2020, through June 30, 2021, relative to the total employer contributions received from all of FRS's participating employers. At June 30, 2021, the County's proportion was 0.770303%, which was a decrease of 0.024639% from its proportion measured as of June 30, 2020. M NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) For the year ended September 30, 2021, the County recognized pension expense of $139,132 for its proportionate share of FRS's pension expense. In addition, the County reported its proportionate share of FRS's deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date Total Deferred Deferred Outflows of Inflows of Resources Resources $ 9,973,457 $ 39,814,876 203,002,090 6,750,144 12,656,898 8,431,859 $ 64,970,336 $ 215,658,988 Deferred outflows of resources related to pensions of $8,431,859, resulting from County contributions to the FRS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as a decrease in pension expense as follows: Year Ending September 30 Amount 2022 $ (27,554,347) 2023 (32,706,101) 2024 (43,283,893) 2025 (54,961,322) 2026 (614,848) ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.25%, including inflation Investment Rate of Return 6.80%, Net of Pension Plan investment expense Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018. The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward -looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) The target allocation, as outlined in the FRS Plan's investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Annual Arithmetic Return Compound Annual (Geometric) Return Standard Deviation Cash 1.0% 2.1 % 2.1 % 1.1 % Fixed income 20.0% 3.8% 3.7% 3.3% Global equity 54.2% 8.2% 6.7% 17.8% Real estate (property) 10.3% 7.1 % 6.2% 13.8% Private equity 10.8% 11.7% 8.5% 26.4% Strategic investments 3.7% 5.7% 5.4°% 8.4% Totals 100.0% Assumed Inflation - Mean 2.4% 1.2% DISCOUNT RATE The discount rate used to measure the total pension liability for the FRS Plan in fiscal year 2021 was 6.80% which was the same rate as in fiscal year 2020. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Descri FRS Plan Discount Rate County's Proportionate Share of the FRS Plan Net Pension Liability PENSION PLAN FIDUCIARY NET POSITION 1 % Decrease in Current Discount 1 % Increase in Discount Rate Rate Discount Rate 5.80% 6.80% 7.80% 260,219,076 $ 58,187,652 $ (110,687,967) Detailed information about the FRS Plan's fiduciary net position is available in a separately -issued FRS Pension Plan and Other State -Administered Systems Annual Comprehensive Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. RETIREE HEALTH INSURANCE SUBSIDY PROGRAM PLAN DESCRIPTION The Retiree Health Insurance Subsidy Program (HIS Plan) is a non -qualified, cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. BENEFITS PROVIDED For the fiscal year ended June 30, 2021, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. M NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) CONTRIBUTIONS The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. The FRS contribution rates include a 1.66% HIS Plan subsidy for the periods October 1, 2020 through June 30, 2021 and from July 1, 2021 through September 30, 2021, pursuant to Section 112.363, Florida Statutes. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County's contributions to the HIS Plan were $4,008,775 for the year ended September 30, 2021. PENSION COSTS At September 30, 2021, the County reported a liability of $83,745,948 for its proportionate share of the HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2021. The County's proportion of the net pension liability was based on the County's contributions received during the measurement period for employer payroll paid dates from July 1, 2020, through June 30, 2021, relative to the total employer contributions received from all participating employers. At June 30, 2021, the County's proportion was 0.682721 %, which was a decrease of 0.009243% from its proportion measured as of June 30, 2020. For the year ended September 30, 2021, the County recognized pension expense of $6,794,383 for its proportionate share of HIS's pension expense. In addition, the County reported its proportionate share of HIS's deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on HIS Program Investments Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date Total Deferred Outflows of Resources $ 2,802,351 6,580,556 87,302 3,172,251 1,059,004 Deferred Inflows of Resources $ 35,077 3,450,546 1,666,906 $ 13,701,464 $ 5,152,529 Deferred outflows of resources related to pensions of $1,059,004, resulting from County contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ending September 30 2022 2023 2024 2025 2026 Thereafter ACTUARIAL ASSUMPTIONS Amount 2,271,731 1,066,907 1,402,161 1,424,986 1,074,360 249,786 The total pension liability in the July 1, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.25%, including inflation Municipal Bond Rate 2.16% Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018 .: NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) DISCOUNT RATE The discount rate used to measure the total pension liability for HIS plan has decreased from 2.21 % in fiscal year 2020 to 2.16% in fiscal year 2021. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current 1 % Increase in Description Discount Rate Discount Rate Discount Rate HIS Plan Discount Rate 1.61% 2.16% 3.16 County's Proportionate Share of the HIS Plan Net Pension Liability $ 96,818,428 $ 83,745,948 $ 73,035,974 PENSION PLAN FIDUCIARY NET POSITION Detailed information about the HIS Plan's fiduciary's net position is available in a separately -issued FRS Pension Plan and Other State -Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.mytlorida.com. SUMMARY The aggregate amount of net pension liability, related deferred outflows of resources and deferred inflows of resources and pension expense for the County's defined benefit pension plans are summarized below: FRS Plan HIS Plan Total Net pension liability $ 58,187,652 $ 83,745,948 $ 141,933,600 Deferred outflows of resources related to pensions 64,970,336 13,701,464 78,671,800 Deferred inflows of resources related to pensions 215,658,988 5,152,529 220,811,517 Pension expense 139,132 6,794,383 6,933,515 NOTE 10 — DEFINED CONTRIBUTION PLAN The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of .06% of payroll from July 1, 2020 to June 30, 2021 and .06% of payroll from July 1, 2021 to June 30, 2022 in addition to forfeited benefits of plan members. The County's Investment Plan pension expense totaled $5,400,770 for the year ended September 30, 2021. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended At NOTE 10 — DEFINED CONTRIBUTION PLAN (Continued) June 30, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. NOTE 11 —TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to the fund that statute or budget requires they be expended from, (2) move receipts restricted to debt service to the debt service fund as payments become due and (3) use unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations. Transfers for the year ended September 30, 2021 were as follows: Transfers from Fund Transfers to Fund Governmental Activities: General Fund Grants and Shared Revenue Nonmajor Governmental Funds County Water and Sewer Emergency Medical Services Nonmajor Business -type Internal Service Funds Bayshore Gateway Community Redevelopment Agency General Fund Nonmajor Governmental Funds Immokalee Community Redevelopment Agency General Fund Bayshore Gateway Community Redevelopment Agency Grants and Shared Revenues General Fund Nonmajor Governmental Funds County Water and Sewer Nonmajor Governmental Funds General Fund Bayshore Gateway Community Redevelopment Agency Immokalee Community Redevelopment Agency Grants and Shared Revenue Nonmajor Governmental Funds County Water and Sewer Business -type Activities: County Water and Sewer General Fund Grants and Shared Revenue Nonmajor Governmental Funds Solid Waste Disposal Internal Service Funds Solid Waste Disposal General Fund County Water and Sewer Internal Service Funds Emergency Medical Services Internal Service Funds Nonmajor Business -type Nonmajor Governmental Funds Internal Service Funds General Fund Nonmajor Governmental Funds Total Transfers Amount 45,380,429 74,337,253 548 4,553,798 7,362,610 216,100 53,800 3,071,500 53,800 74,100 31,000,000 5,000,000 10,000,000 4,870,006 455,503 87,503 1,756,264 58,488,598 23,100 9,190,011 10,300 218,500 547,200 274,400 962,544 122,418 5,200 7,800 15,000 1,076,600 400,000 $ 259,614,885 70 NOTE 12 — NET POSITION/FUND BALANCE CLASSIFICATION Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and is categorized as follows: Net investment in capital assets: Total capital assets, net of debt issued and deferred amounts on refundings related to the acquisition of these assets and net of depreciation is reported separately in the net position section. Restricted for growth related capital expansion: Impact fees are restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated bythe former levy of one quarter mill of ad valorem revenues restricted for the maintenance and management of environmentally sensitive land. Restricted for community redevelopment: Tax increment revenues generated in the redevelopment areas are restricted for redevelopment purposes. Restricted for grants: State and federal government grant monies restricted for grant related purposes. Restricted for infrastructure sales tax capital projects: Infrastructure sales tax proceeds are restricted for infrastructural capital improvements. Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long-term debt. Restricted for court programs: Balances are restricted for court programs Restricted for public safety: Balances are restricted for public safety programs. Restricted for nonexpendable purposes — other: Balances are restricted in conjunction with the maintenance and management of certain conservation lands for mitigation purposes. Restricted for special revenues — other: Balances are restricted for specific uses associated with the revenue collected. Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of County Water and Sewer District Bonds for use in funding the cost of additions, replacement or major repair of District capital assets. Unrestricted: Balances are not restricted for specific purposes. Governmental funds report fund balances as either spendable or non -spendable as follows: Non -spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of advances, loans and notes receivable. Spendable fund balance: Restricted fund balance — Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors; or imposed by law through constitutional provisions or enabling legislation. Committed fund balance — Amounts that can be spent only for specific purposes determined by the County's highest decision making authority, the Board of County Commissioners, via ordinance. Commitments may be modified or removed by the Board of County Commissioners only by amending the ordinance that created the original commitment. Assigned fund balance — Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners, but that are neither restricted nor committed to the specific purpose. Unassigned fund balance — Unassigned fund balance is the residual classification for the County's general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless prohibited by law, grant agreements or other contractual arrangement. Further, when committed fund balance is available the County will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. 71 NOTE 12 — NET POSITION/FUND BALANCE CLASSIFICATION (Continued) A detailed schedule of fund balances at September 30, 2021 is as follows Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Infrastructure Governmental Governmental Fund Agency Agency Revenue Sales Tax Funds Funds Nonspendable: Endowments $ - $ $ $ $ $ 5,522,800 $ 5,522,800 Inventory 772,780 1,093,901 1,866,681 Advances to other funds 500,962 - 500,962 Notes 1,492,849 - 1,492,849 Prepaid costs 18,121 6,091 24,212 Total nonspendable fund balance 2,784,712 6,622,792 9,407,504 Restricted for: Community redevelopment $ $ 10,037,806 $ 1,287,327 $ $ $ $ 11,325,133 Federal and state grants 580,524 - - 11,336,040 - 2,591,234 14,507,798 Infrastructure sales tax capital projects - - 193,740,991 - 193,740,991 Bond covenants or debt service - 6,013,148 6,013,148 Transportation growth related capital 105,948,230 105,948,230 Parks growth related capital expansion 44,002,393 44,002,393 Parks and recreation 17,599,229 17,599,229 Transportation capital projects 55,915,038 55,915,038 Community development 42,118,531 42,118,531 Transportation operations 2,447,372 2,447,372 Tourist development 108,109,896 108,109,896 Conservation Collier 26,306,541 26,306,541 Emergency 911 3,415,900 3,415,900 Law Enforcement 9,269,528 9,269,528 General government facilities 4,064,063 4,064,063 Water management 58,550,543 58,550,543 Libraries 1,117,289 1,117,289 Court functions 9,659,550 9,659,550 Public records modernization 7,172,126 7,172,126 Other purposes 1,594,381 1,594,381 Total restricted fund balance 580,524 10,037,806 1,287,327 11,336,040 193,740,991 505,894,992 722,877,680 Committed for: Special districts 34,016,126 34,016,126 Natural resource management 4,644,574 4,644,574 Utility regulation 1,229,869 1,229,869 Other purposes 4,691,448 4,691,448 Total committed fund balance 44,582,017 44,582,017 Assigned for: Parks and recreation 14,300,750 14,300,750 General building & improvements 36,392,095 36,392,095 Water management - 21,146,290 21,146,290 Subsequent year budget 9,429,200 - 9,429,200 Other purposes 2,851,612 12,553,183 15,404,795 Total assigned fund balance 12,280,812 84,392,318 96,673,130 Unassigned: 117,115,903 - 117,115,903 Total Fund Balances $ 132, 661,951 $ 10,037,806 $ 1,287,327 $ 11, 336,040 $ 193, 440,991 $ 641,492,119 $ 990,656,234 72 NOTE 13 — RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self-insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self-insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self-insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self-insurance fund and for all other covered risks of loss. Claim Type Property and casualty claims Auto liability claims Employee health claims Workers' compensation claims County's Coverage $50,000 - $500,000 ($250,000 named storm deductible; 3% deductible of reported values per damaged building; subject to $5,000,000 deductible cap) $300,000 $1,000,000 $500,000 Excess Carrier's Coverage 50,000 - $75,000,000 $300,001 - $5,000,000 $1,000,001 - Unlimited $500,001 - Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2021 the operating departments were charged $47,894,348 for workers' compensation, health and property and casualty self-insurance programs. The claims loss reserve for workers' compensation, health and property and casualty of $7,708,409 reported at September 30, 2021 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were discounted at 3.5%. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $5,488,652 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self -Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self -Insurance Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff's Self -Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self-insurance fund providing coverage for the first $500,000 of every claim. Re -insurance is provided through a third party insurer for all claims exceeding $500,000 up to $15,000,000. Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self -insured risks are reported in the basic financial statements of the Statewide Florida Sheriff's Self -Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. The Sheriff has also established a self -funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In 2021, there was one covered individual who had higher deductible amounts because of a history of high claims. This individual had a deductible of $1,185,000. Specific claim excess coverage for this individual was for claims exceeding $1,185,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The claims loss reserve for health of $3,236,000 reported at September 30, 2021 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is recorded as a current liability. 73 NOTE 13 — RISK MANAGEMENT (Continued) CHANGES IN SELF-INSURANCE CLAIMS PAYABLE Changes in the self-insurance claims payable for fiscal years 2020 and 2021 were as follows for the County and Sheriff self- insurance programs: Balance at September 30, 2019 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2020 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2021 NOTE 14 — LANDFILL LIABILITY Property and Group Workers' Casualty Health Compensation Total $ 2,736,191 $ 7,715,000 $ 1,418,527 $ 11,869,718 2,377,081 65,023,781 43,687 67,444,549 (3,103,445) (65,398,781) (447,684) (68,949,910) 2,009,827 7,340,000 1,014,530 10,364,357 2,271,313 75,263,626 632,799 78,167,738 (2,978,144) (74,070,626) (538,916) (77,587,686) $ 1,302, 996 $ 8,533,000 $ 1,108,413 $ 10,944,409 On May 1, 1995, the County entered into a landfill operating agreement with a third party for the privatization of the County's landfill operations. Under the contract, the third party is responsible for the daily operations, capital improvements, closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County's estimated liability in connection with the landfills is included in the proprietary funds statement of net position. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost. NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS COUNTY'S PLAN DESCRIPTION AND BENEFITS PROVIDED The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan (County's OPEB Plan) and can amend the benefits provisions. The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. The Sheriff also provides post employment healthcare benefits under as separate plan. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group rate as for active employees. The Board of County Commissioners and the Tax Collector also subsidize the cost of the post employment healthcare for qualifying retirees and each has the authority to amend benefit provisions. The Board of County Commissioners offers a subsidy for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the Board, be at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan. A subsidy is currently provided to 18 retirees. The Tax Collector offers a subsidy of 100% the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement for employees hired prior to June 1, 2015. A subsidy is currently provided to 2 retirees. The County's OPEB Plan is currently being funded on a pay as you go basis. No trust fund has been established for the plan. The plan does not issue a separate financial report. 74 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) PARTICIPANT DATA As of September 30, 2021, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 49 Active employees 2,433 Total employees 2,482 TOTAL OPEB LIABILITY The County's total OPEB liability of $9,500,959 was measured as of September 30, 2021 and was determined by an actuarial valuation as of October 1, 2021. The following table shows the changes in the County's total OPEB liability for the year ended September 30, 2021. Total OPEB Liability Balance, as of October 1, 2020 $ 9,817,087 Changes: Service cost 609,931 Interest on total OPEB liability 162,236 Changes in assumptions or other inputs (513,843) Benefit payments (574,452) Net changes (316,128) Balance, as of September 30, 2021 $ 9, 000,959 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the County's total OPEB liability, as well as what the County's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current 1 % Increase in Description Discount Rate Discount Rate Discount Rate OPEB Plan Discount Rate 0.50% 1.50% 2.50% Total OPEB Liability $ 10,272,180 $ 9,500,959 $ 8,799,005 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the County's total OPEB liability, as well as what the County's total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1 % Decrease in 1 % Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 4.00% 5.00% 6.00% Total OPEB Liability $ 8,547,113 $ 9,500,959 $ 10,614,283 75 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2021, the County's OPEB expense was $880,973. In addition, the County reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ - $ 823,755 Changes in assumptions 763,744 60,162 $ 763,744 $ 883,917 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be amortized over 4.6 years and will be recognized as follows: Year Ending September 30 2022 2023 2024 2025 Thereafter ACTUARIAL METHODS AND ASSUMPTIONS Deferred Outflows of Deferred Inflows Resources of Resources 282,180 $ 283,712 282,180 235,884 150,267 159,575 39,393 127,998 9,724 76,748 Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 1.5% (Based on the 20 year AA municipal bond rate) 5% 3% None Mortality rates were based on the Pri-2012 Mortality Fully Generational tables using Projection Scale MP-2021. Since the most recent valuation, the following changes have been made: The discount rate was changed from 1.6% to 1.5%. The mortality assumption has been updated from Pri-2012 Mortality Fully Generational using Projection Scale MP-2020 to Pri-2012 Mortality Fully Generational using Projection Scale MP-2021. SHERIFF'S PLAN DESCRIPTION AND BENEFITS PROVIDED The Sheriff provides post employment healthcare benefits for retirees through a single employer defined benefit plan (Sheriff's OPEB Plan) and can amend the benefit provisions. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. 76 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) Prior to 2010, the Sheriff subsidized approximately 26% of the cost for both single and family healthcare for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. Approximately 22% of retirees receive the subsidy. The Sheriff's OPEB Plan is currently being funded on a pay as you go basis. No trust fund has been established for the plan. The plan does not issue a separate financial report. PARTICIPANT DATA As of September 30, 2021, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 141 Active employees 1,150 Total employees 1,291 TOTAL OPEB LIABILITY The Sheriff's total OPEB liability of $28,169,914 was measured as of September 30, 2021 and was determined by an actuarial valuation as of October 1, 2020. The following table shows the changes in the Sheriff's total OPEB liability for the year ended September 30, 2021. Total OPEB Liability Balance, as of October 1, 2020 $ 27,920,433 Changes Service cost 777,037 Interest on total OPEB liability 448,520 Differences between expected and actual experience 451 Changes in assumptions or other inputs 353,427 Benefit payments (1,329,954) Net changes 249,481 Balance, as of September 30, 2021 $ 28,169,914 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current Discount 1 % Increase in Description Discount Rate Rate Discount Rate OPEB Plan Discount Rate 0.50% 1.50% 2.50% Total OPEB Liability $ 30,800,891 $ 28,169,914 $ 25,840,363 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1 % Decrease in 1 % Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 4.00% 5.00% 6.00% Total OPEB Liability $ 25,637,156 $ 28,169,914 $ 31,082,145 77 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2021, the Sheriff's OPEB expense was $2,574,820. In addition, the Sheriff reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ 5,735,347 $ 38,168 Changes in assumptions 2,784,663 522,836 $ 8,520,010 $ 561,004 Amounts reported as deferred inflows and outflows of resources related to OPEB will be amortized over 7.07 years: Year Ending September 30 2022 2023 2024 2025 2026 Thereafter ACTUARIAL METHODS AND ASSUMPTIONS Deferred Deferred Outflows of Inflows of Resources Resources $ 1,536,775 $ 136,740 1,536,775 136,740 1,536,775 136,740 1,536,775 129,469 1,299,645 21,315 1,073,265 0 Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Entry Age Actuarial The actuarial assumptions are: Discount rate 1.5% (Based on the 20 year AA municipal bond rate) Healthcare cost trend rate 5% Salary increase None New employees None Mortality rates were based on the Pri-2012 Mortality Fully Generational tables using Projection Scale MP-2020 Since the most recent valuation, the following changes have been made: The discount rate was changed from 1.6% to 1.5%. The healthcare cost trend rate was changed from 6% to 5% The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2019 to Pri-2012 Mortality Fully Generational using Projection Scale MP-2020. 78 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) SUMMARY The aggregate amount of total OPEB liability, related deferred outflows of resources and deferred inflows of resources and OPEB expense for the County's postemployment benefits plans are summarized below: County's Sheriff's OPEB Plan OPEB Plan Total Total OPEB liability $ 9,500,959 $ 28,169,914 $ 37,670,873 Deferred outflows of resources related to OPEB 763,744 8,520,010 9,283,754 Deferred inflows of resources related to OPEB 883,917 561,004 1,444,921 OPEB expense 880,973 2,574,820 3,455,793 NOTE 16 — SIGNIFICANT CONTINGENCIES LITIGATION The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as disclosed here, will not materially affect the financial position of the County. STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. HURRICANE IRMA On September 10, 2017, Category 3 Hurricane Irma made landfall in Collier County. Statewide, an estimated 6.5 million Floridians were ordered to evacuate, mostly those living on barrier islands or in coastal areas, in mobile or sub -standard homes and in low lying or flood prone areas. Mandatory evacuations were ordered for portions of Collier County. The primary impacts of Hurricane Irma were widespread power outages and debris, coastal flooding and beach erosion. The County has spent approximately $108.7 million on recovery efforts and has budgeted an additional $1.6 million in the 2022 fiscal year. In 2021, the County recognized $3.8 million in insurance proceeds and $10 million in revenue from the Federal Emergency Management Agency (FEMA). The County continues to expect reimbursements from FEMA. NOTE 17 — SIGNIFICANT COMMITMENTS Collier County has active construction projects as of September 30, 2021. The projects include road construction, governmental facilities and utilities improvements. At year end, the County's significant commitments with contractors include the following: Governmental Activities: Grants and Shared Revenue Infrastructure Sales Tax Other Governmental Funds Business -type Activities: Water and Sewer Solid Waste Disposal Other Enterprise Funds Total Category Culture and Recreation Transportation Culture and Recreation General Government Physical Environment Transportation Culture and Recreation Utilities Solid Waste Airports Construction Commitments 363,704 30,698,271 9,462,882 749,900 8,058,502 12,779,994 38,000,337 66,008,272 1,536,269 732,596 $ 168,390,727 79 NOTE 17 — SIGNIFICANT COMMITMENTS (Continued) Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods or services have been ordered but not received. Encumbrance commitments do not include construction contracts, as they are included as contract commitments. Collier County had the following significant individual encumbrances as of September 30, 2021: Governmental Activities: Bayshore Gateway Community Redevelopment Agency Grants and Shared Revenue Infrastructure Sales Tax Other Governmental Funds Business -type Activities: Water and Sewer Other Enterprise Funds Internal Service Funds Total NOTE 18 — SUBSEQUENT EVENTS Encumbrance Category Commitments Economic Environment $ 600,000 Physical Environment 631,625 Transportation 1,108,363 Economic Environment 9,689,319 Public Safety 905,513 Physical Environment 3,355,892 Public Safety 600,000 Physical Environment 2,558,451 Transportation 3,945,658 Economic Environment 500,000 Culture and Recreation 679,430 Utilities 2,929,635 Airport Authority 4,275,111 Collier Area Transit 3,237,845 Motor Pool Capital Recovery 504,836 $ 35,521,678 As of the date of this report, Collier County expects to issue the Series 2022A Special Obligation Refunding Revenue Bond (Bank Term Loan) in the par amount of $32,920,000. The proceeds of the Series 2022A Bond will be used to refund all of the outstanding Special Obligation Refunding Revenue Bonds, Series 2011. The final maturity of the Series 2022A Bond is October 1, 2029, with a fixed interest rate of 1.43%. The refunding achieved a net present value savings of 5.42% on the refunded bonds and an aggregate debt service savings of $1,864,171. The Series 2022A Special Obligation Revenue Bond was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Bonds. The refunded Series 2011 Special Obligation Refunding Revenue Bonds have a redemption date of March 15, 2022. As of the date of this report, Collier County expects to enter into a forward refunding agreement to issue the Series 2022B Special Obligation Refunding Revenue Bond (Bank Term Loan) in the par amount of $75,365,000. The proceeds of the Series 2022B Bond will be used to refund all of the outstanding Special Obligation Refunding Revenue Bonds, Series 2013. The final maturity of the Series 2022B Bond is October 1, 2035, with an interest rate of 1.85%. The refunding achieved a net present value savings of 14.47% on the refunded bonds and an aggregate debt service savings of $12,104,059. The Series 2022B Special Obligation Revenue Bond was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Bonds. The refunded Series 2013 Special Obligation Refunding Revenue Bonds have a redemption date of October 1, 2022. During fiscal year 2020, the World Health Organization declared the spread of Coronavirus Disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses and communities. Specific to Collier County, COVID-19 may impact various parts of its 2022 operations and financial results including, but not limited to, revenue sources, costs for emergency preparedness and increases in costs for materials and supplies for daily operations. Management believes that Collier County is taking appropriate actions to mitigate the negative impact. In June 2021, Collier County was awarded $74.8 million in Coronavirus State and Local Fiscal Recovery Funds from the American Rescue Plan Act of 2021. However, the full impact of COVID-19 and the related Federal assistance is unknown and cannot be reasonably estimated at this time. NOTE 19 — CHANGE IN ACCOUNTING PRINCIPLE During the year ended September 30, 2021, the County adopted GASB Statement No. 84, Fiduciary Activities. The goal of this statement is to improve financial reporting by establishing specific criteria for identifying activities that should be reported as fiduciary activities. This change requires the restatement of the September 30, 2020 fiduciary net position of the fiduciary funds as follows: Custodial Funds Fiduciary Net Position, September 30, 2020, as Previously Reported Cumulative Effect of Application of GASB 84 16,164,807 Fiduciary Net Position, September 30, 2020, as Restated $ 16,164,807 The Deposit Agency fund and the Pine Ridge and Naples Production Park Agency fund balances at September 30, 2020 did not meet the criteria for fiduciary activities. In fiscal year 2021, the assets and liabilities for these funds were moved to the General Fund and the Improvement Districts respectively. �-Jk 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ jifeL nary atior COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2021 2020 2019 2018 County's Proportion of the Net Pension Liability 0.770303194% 0.794941674% 0.797837050% 0.804668214% County's Proportionate Share of the Net Pension Liability $ 58,187,652 $ 344,539,437 $ 274,763,972 $ 242,370,237 County's Covered Payroll * $ 241,529,826 $ 234,174,659 $ 228,455,160 $ 225,786,565 County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 24.09% 147.13% 120.27% 107.34% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 96.40% 78.85°i 82.61 % 84.26% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date, restated for periods 2014 to 2017 pursuant to GASB No. 82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2021 2020 2019 2018 Contractually Required Contribution $ 30,034,061 $ 27,741,964 $ 25,202,730 $ 23,401,059 Contributions in Relation to the Contractually Required Contribution (30,034,061) (27,741,964) (25,202,730) (23,401,059) Contribution Deficiency (Excess) $ - $ - $ - $ - County's Covered Payroll - Fiscal Year * $ 241,604,760 $ 240,018,783 $ 230,500,331 $ 226,283,207 Contributions as a Percentage of Covered Payroll 12.43 i 11.56 i 10.93 i 10.34 i * Covered Payroll - Fiscal Year consists of pensionable wages calculated forthe respective fiscal year, restated for periods 2014 to 2017 pursuantto GASB No. 82, Pension Issues. SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2021 2020 2019 2018 County's Proportion of the Net Pension Liability 0.682720614°i 0.673478223°i 0.683003525°i 0.690065185°i County's Proportionate Share of the Net Pension Liability $ 83,745,948 $ 82,230,597 $ 76,421,260 $ 73,037,274 County's Covered Payroll * $ 241,529,826 $ 234,174,659 $ 228,455,160 $ 225,786,565 County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 34.67% 35.12% 33.45% 32.35% Plan Fiduciary Net Position as a Percentage of the totalPension Liability 3.56% 3.00 i 2.63 i 2.15% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2021 2020 2019 2018 Contractually Required Contribution $ 4,008,775 $ 3,982,772 $ 3,792,652 $ 3,750,438 Contributions in Relation to the Contractually Required Contribution (4,008,775) (3,982,772) (3,792,652) (3,750,438) Contribution Deficiency (Excess) $ - $ - $ - $ - County's Covered Payroll - Fiscal Year * $ 241,604,760 $ 240,018,783 $ 230,500,331 $ 226,283,207 Contributions as a Percentage of Covered Payroll 1.66% 1.66% 1.65% 1.66% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. Note: Information is required to be presented for 10years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. 84 2017 2016 2015 2014 0.796720676 % 0.772938545% 0.736106708 % 0.703655077% $ 235,664,630 $ 195,167,590 $ 95,078,054 $ 42,933,306 $ 212,195,163 $ 199,870,915 $ 195,154,275 $ 184,577,284 111.06 % 97.65 % 48.72 % 23.26 % 83.89% 84.88% 92.00% 96.09% 2017 2016 2015 2014 $ 20,299,090 $ 20,563,824 $ 17,830,147 $ 17,287,796 (20,299,090) (20,563,824) (17,830,147) (17,287,796) $ 216,521,253 $ 206,179,415 $ 193,543,352 $ 185,505,694 9.38% 9.97% 9.21 % 9.32% 2017 2016 2015 2014 0.665383863% 0.645620406 % 0.642983194% 0.621385755% $ 71,145,914 $ 75,244,385 $ 65,574,171 $ 58,101,084 $ 212,195,163 $ 199,870,915 $ 195,154,275 $ 184,577,284 33.53 % 37.65 % 33.60 % 31.48 % 1.64% 0.97% 0.50% 0.99% 2017 2016 2015 2014 $ 3,593,353 $ 3,415,537 $ 2,614,704 $ 2,131,155 (3,593,353) (3,415,537) (2,614,704) (2,131,155) $ 216,521,253 $ 206,179,415 $ 193,543,352 $ 185,505,694 1.66% 1.66% 1.35% 1.15% COLLIER COUNTY, FLORIDA SCHEDULE OF CHANGES IN THE COLLIER COUNTY TOTAL OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years 2021 2020 2019 2018 2017 Board of County Commissioners and Constitutional Officers Total OPEB liability Service Cost $ 609,931 $ 609,998 $ 438,933 $ 491,865 $ 464,531 Interest 162,236 190,846 287,048 252,345 248,849 Changes of benefit terms - - - - - Differences between expected and actual experience (588,396) (1,190) - (8,258) Changes of assumptions or other inputs 74,553 322,360 387,596 (221,309) Benefit payments (574,452) (474,429) (674,797) (625,275) (589,882) Net change in total OPEB liability (316,128) 647,585 438,780 (102,374) 115,240 Total OPEB liability, beginning 9,817,087 9,169,502 8,730,722 8,833,096 8,717,856 Total OPEB liability, ending $ 9,500,959 $ 9,817,087 $ 9,169,502 $ 8,730,722 $ 8,833,096 Covered -employee payroll $141,768,412 $135,688,734 $132,769,448 $123,441,030 $121,574,778 Total OPEB liability as a percentage of covered employee payroll 6.70 io 7.24% 6.91 % 7.07 is 7.27% Notes to the Schedule Changes in Assumptions: Change in the discount rate of 1.6% as of September 30, 2020 to 1.5% as of September 30, 2021. The mortality assumption has been updated from Pri-2012 Mortality Fully Generational using Projection Scale MP-2020 to Pri-2012 Mortality Fully Generational using Projection Scale MP-2021. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. 2021 2020 2019 2018 2017 Sheriff Total OPEB liability Service Cost $ 777,037 $ 555,065 $ 485,365 $ 520,082 $ 491,420 Interest 448,520 435,838 631,825 503,525 502,621 Changes of benefit terms - - - - - Differences between expected and actual experience 451 5,292,054 - 2,048,462 (83,607) Changes of assumptions or other inputs 353,427 949,878 2,250,569 (898,977) Benefit payments (1,329,954) (1,098,451) (1,074,207) (941,061) (871,353) Net change in total OPEB liability 249,481 6,134,384 2,293,552 1,232,031 39,081 Total OPEB liability, beginning 27,920,433 21,786,049 19,492,497 18,260,466 18,221,385 Total OPEB liability, ending $ 28,169,914 $ 27, 220,433 $ 21,7 66,049 $ 19,4 22,497 $ 18,2 00,466 Covered -employee payroll $ 87,324,387 $ 83,944,157 $ 81,378,975 $ 80,473,682 $ 91,192,818 Total OPEB liability as a percentage of covered employee payroll 32.26% 33.26% 26.77% 24.22% 20.02% Notes to the Schedule Changes in Assumptions: Change in the discount rate of 1.6% as of September 30, 2020 to 1.5% as of September 30, 2021 The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2019 to Pri-2012 Mortality Fully Generational Projection Scale MP-2020. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. 86 F•• A rpr,MMX71-. -�; -C ll• M99 hz i t Combining & Individual Fund Financial Statements & Other Supplemental Information 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds ROAD DISTRICTS — To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT — To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT — To account for building permit and development fees to support licensing, permitting and inspection services. WATER MANAGEMENT AND POLLUTION CONTROL — To account for taxes levied County -wide to provide water resource management and water pollution control. PELICAN BAY — To account for taxes levied in the Pelican Bay development to provide water resource management and beautification services. STORMWATER UTILITY — To account for the accumulation of resources and expenditures related to the management of facilities and services for drainage and flood protection County -wide. IMPROVEMENT DISTRICTS — To account for taxes levied within municipal service taxing districts to provide for specified improvements and/or the maintenance of such improvements. FIRE CONTROL DISTRICTS — To account for taxes levied within municipal service taxing districts for fire prevention and control. LIGHTING DISTRICTS — To account for taxes levied within municipal service taxing district for street lighting. 911 ENHANCEMENT FEE — To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. TOURIST DEVELOPMENT — To account for the 5% tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP — To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND — To account for moving traffic violation surcharges received to fund the County's intergovernmental radio communications program. STATE COURT ADMINISTRATION — To account for County monies used to fund the operation of the court system. CONFISCATED PROPERTY — To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS — To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE — To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER — To account for the acquisition and management of environmentally sensitive lands. COURT INFORMATION TECHNOLOGY — To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES — To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION — To account for fund accumulation to meet the educational goals of the Collier County OF/IFAS extension. COURT FACILITIES FEE — To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING — To account for fees to be used to provide for affordable housing related projects. ECONOMIC AND INNOVATION ZONE — To account for the accumulation of resources for economic development in accordance with an approved tax increment financing plan. OTHER COURT SPECIAL REVENUE FUNDS — To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for modernization. OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS — To account for the accumulation of resources for the Sheriff's Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate welfare, crime prevention and training programs. OTHER SPECIAL REVENUE FUNDS — To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Adoption Awareness Teen Court Animal Control Public Library Law Library Freedom Memorial County Drug Abuse Permanent Funds Euclid and Lakeland Assessment Legal Aid Society Law Enforcement Training Domestic Violence Juvenile Assessment Center Driver Education Crime Prevention RESOURCE RECOVERY PARK ENDOWMENT — To account for the permanent endowment established for the benefit of the County's land conservation program. PEPPER RANCH CONSERVATION BANK — To account for the permanent endowment established for the benefit of establishing and maintaining a panther habitat land conservation bank. Debt Service Funds POOLED COMMERCIAL PAPER PROGRAM — To account for the accumulation of resources and payment of interest and principal on variable rate debt incurred for the acquisition of land for the County's amateur sports park. GAS TAX REFUNDING REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2012 Gas Tax Refunding Revenue Bonds and Series 2014 Gas Tax Refunding Revenue Bond (bank term loan) incurred in the refinancing of Gas Tax Revenue Bonds. COMMUNITY REDEVELOPMENT TAXABLE NOTE — To account for the accumulation of resources and payment of interest and principal on taxable long-term debt incurred for the acquisition of land in the Bayshore Gateway Community Redevelopment Agency. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2007 Forest Lakes Limited General Obligation Bonds debt incurred to finance the cost of certain roadway lighting, drainage and restoration in the Forest Lakes Municipal Services Taxing Unit. SPECIAL OBLIGATION REFUNDING REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2010, 2010B, 2011 and 2013 Special Obligation Refunding Revenue Bonds and the Series 2017 Special Obligation Refunding Revenue Note (bank term loan) incurred in the refinancing of variable rate commercial paper loans and revenue bonds. Also used to account for the accumulation of resources and payment of interest and principal on the Series 2019 Taxable Special Obligation Revenue Note (bank term loan) used to purchase the Golden Gate Golf Course. TOURIST DEVELOPMENT TAX REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2018 Tourist Development Tax Revenue Bonds incurred to pay the cost of the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. Capital Project Funds COUNTY -WIDE CAPITAL IMPROVEMENTS — To account for capital projects, designated by the Board of County Commissioners, to be funded by a County -wide one third mil levy. PARKS IMPROVEMENTS — To account for the expenditure of funds raised specifically for improvements to parks. Projects include land acquisition, design, construction and equipping of certain Community Park sites in the unincorporated areas of the County. Primary funding is ad valorem taxes. COUNTY -WIDE LIBRARY IMPACT FEES — To account for the receipt and expenditure of library impact fees collected from all qualifying new construction. These impact fees must be used for acquisition of County -wide library facilities. .E CORRECTIONAL FACILITIES IMPACT FEES — To account for the receipt and expenditure of correctional facilities impact fees collected from all qualifying new construction. These impact fees must be used for the acquisition/construction of correctional facilities. EMERGENCY MEDICAL SERVICES IMPACT FEES — To account for the receipt and expenditure of emergency medical service impact fees collected from all qualifying new construction. These impact fees must be used for acquisition/construction of emergency service facilities. WATER MANAGEMENT — To account for the receipt and expenditure of funds raised specifically for water management purposes. Primary funding is ad valorem taxes. PELICAN BAY CAPITAL IMPROVEMENTS — To account for the receipt and expenditure of funds raised specifically for water management purposes and the restoration of the Clam Bay estuary in the Pelican Bay Development. Primary funding is a special assessment. PARKS IMPACT DISTRICTS — To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities. ROAD IMPACT DISTRICTS — To account for the receipt and expenditure of road impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of roads. ROAD CONSTRUCTION — To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to, right- of-way acquisition, design and construction of various transportation improvements. GOVERNMENT FACILITIES IMPACT FEES — To account for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition and construction of government facilities. LAW ENFORCEMENT IMPACT FEES — To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition and construction of law enforcement related facilities. ALL TERRAIN VEHICLE PARK — To account for the receipt and expenditure of funds for the creation of an All Terrain Vehicle park. AMATEUR SPORTS COMPLEX — To account for major capital expenditures related to the new Amateur Sports Complex. OTHER CAPITAL PROJECTS — To account for major capital expenditures financed from resources other than proceeds from the issuance of long-term debt and the one third mil levy. 91 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2021 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Pelican Stormwater Districts Area MSTD Development Control Bay Utility ASSETS Cash and investments $ 2,685,305 $ 16,586,170 $ 47,366,475 $ 1,853,282 $ 3,308,761 $ 2,241,681 Cash with fiscal agent - - - - - - Receivables: Interest 5,431 24,929 47,997 2,414 4,750 3,710 Trade, net 23,929 23,589 2,959 - 56,772 - Notes - - - - Impact fee Special assessments - - Leases 19,659 5,841,724 - - - Due from other funds 531,016 823,269 1,752 27,240 110,142 Due from other governments 82,949 936,939 639,329 22,743 8 Deposits - - - - - Inventory for resale - - - - Inventory 894,059 28,940 - 105,627 65,275 Advances to other funds - 139,923 2,120,157 - - Prepaid costs - - 381 - Total assets $ 4,242,348 $ 24,405,483 $ 50,179,050 $ 2,011,306 $ 3,480,433 $ 2,310,666 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 257,487 $ 1,176,339 $ 521,927 $ 29,602 $ 110,984 $ 435,488 Wages payable 601,100 670,668 853,343 79,002 87,317 97,525 Due to other funds 23,040 245 - - - - Due to other governments 4 3,701 2,773,831 Unearned revenues - 4,825 - Refundable deposits 22,978 3,911,037 Retainage payable - - Advances from other funds - - - - - - Total liabilities 881,631 1,878,756 8,060,138 108,604 198,301 533,013 Deferred inflows of resources: Unavailable revenue - - - - - - Related to leases 19,286 5,516,167 Total deferred inflows of resources 19,286 5,516,167 - Fund balances: Nonspendable 894,059 28,940 381 105,627 65,275 Restricted 2,447,372 - 42,118,531 - - - Committed - 16,981,620 - 1,797,075 3,282,132 - Assigned - - - - - 1,712,378 Total fund balances 3,341,431 17,010,560 42,118,912 1,902,702 3,282,132 1,777,653 Total liabilities, deferred inflows of resources and fund balances $ 4,242,348 $ 24,405,483 $ 5 1179,050 $ 2,011,306 $ 3,480,433 $ 2,310,666 See accompanying independent auditors' report 92 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership IRCP Fund Administration $ 18,087,175 $ 502,171 $ 635,014 $ 2,055,268 $ 83,247,960 $ 2,295,957 $ 256,528 $ 333,672 21,492 1,376 874 2,606 94,223 2,277 432 605 - - - - 1,985,521 7,424 - - - 298,648 - - - - 512,739 - 42,314 11,608 6,637 2,017,211 22,559 65,427 - - - 8,024 - - 17,200,000 - 2,710 - 3,000 $ 18,150,981 $ 515,155 $ 642,525 $ 2,057,874 $ 104,555,649 $ 2,604,306 $ 792,258 $ 402,704 $ 326,361 $ $ 43,236 $ 140,215 $ 1,517,590 $ 1,156 $ 31,741 $ 3,619 13,839 - - 138,345 8,088 6,349 94,544 557,215 95,888 39,703 - - - 30 - 1,547 3,828 1,017,771 - 249,374 31,880 232,862 268,100 - - - - - - 2,397,452 268,100 43,236 236,103 1,729,065 13,072 38,090 98,163 486,062 486,062 - 2,710 - 3,000 - - - 1,821,771 102,823,874 2,591,234 - - 15,753,529 247,055 599,289 - - - 268,106 301,541 15,753,529 247,055 599,289 1,821,771 102,826,584 2,591,234 268,106 304,541 $ 18,150,981 $ 515,155 $ 642,525 $ 2,057,874 $ 1 , 44555,649 $ 2,604,306 $ 792,258 $ 402,704 93 ASSETS Cash and investments Cash with fiscal agent Receivables: Interest Trade, net Notes Impact fee Special assessments Leases Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs Total assets Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds Total liabilities Deferred inflows of resources: Unavailable revenue Related to leases Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2021 Special Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services $ 519,345 $ 740,635 $ 1,209,118 $ 26,133,165 $ 1,654,576 $ 1,510,101 601 800 1,299 30,090 1,829 - - 26,922 - - - 1 103,666 - 3,489 80 - 31,514 229,733 $ 519,946 $ 971, 668 $ 1,240,828 $ 26,163,336 $ 1,760,071 $ 1,541,615 $ $ $ - $ 40,241 $ 30,112 $ 9,210 10,959 19,173 5,534 250,928 - 21,116 - 358,193 10 166,373 838,252 - - 85,032 44,949 - 44,949 10,959 80,540 202,019 1,541,615 519,946 926,219 - 26,082,796 1,558,052 - - 1,229,869 - - 519,946 926,219 1,229,869 26,082,796 1,558,052 - $ 519,946 $ 971, 668 $ 1,240,828 $ 26,163,336 $ 1,760,071 $ 1,541,615 94 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Special Revenue Revenue Extension Fee Housing Zones Funds Revenue Funds Funds Funds $ 42,220 $ 8,018,678 $ 849,912 $ 3,278,059 $ 7,208,079 $ 4,277,398 $ 1,559,923 $ 238,456,628 58 8,971 988 3,734 1,564 1,904 264,954 - - - - 44,908 - 2,172,024 - 298,648 - - - 6,374,122 73,849 12,018 21,764 3,870,473 - - 332 1,725,407 229,733 1,093,901 19,460,080 6,091 $ 42,278 $ 8,101,498 $ 850,900 $ 3,281,793 $ 7,208,079 $ 4,335,888 $ 1,583,923 $ 273,952,061 $ $ $ 6,264 $ $ 634 $ 7,776 $ 23,130 $ 4,713,112 4,628 35,319 - 2,423 2,979,084 - - 99,013 - 1,194,413 - 116 3,787,692 - 89,857 4,996,735 281,254 500,962 10,892 35,953 106,789 25,669 18,543,109 6,021,515 6,021,515 - - - - - 1,099,992 42,278 8,101,498 - - 7,172,126 4,229,099 242,553 200,677,349 - - 840,008 3,281,793 - - - 44,582,017 - - - - - - 1,315,701 3,028,079 42,278 8,101,498 840,008 3,281,793 7,172,126 4,229,099 1,558,254 249,387,437 $ 42,278 $ 8,101,498 $ 850,900 $ 3,281,793 $ 7,208,079 $ 4,335,888 $ 1,583,923 $ 273,952,061 95 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2021 Permanent Funds Debt Service Funds Forest Lakes Resource Pepper Pooled Limited Recovery Ranch Total Commercial Gas Tax Community General Park Conservation Permanent Paper Refunding Redevelopment Obligation Endowment Bank Funds Program Revenue Bonds Taxable Note Bonds ASSETS Cash and investments $ 1,805,007 $ 3,915,095 $ 5,720,102 $ 16,551 $ 941,017 $ $ 33,638 Cash with fiscal agent - - - - - - Receivables: Interest 2,050 4,459 6,509 19 789 51 Trade, net - - - - - - Notes Impact fee Special assessments Leases - - - Due from other funds 21,116 21,116 - 4,358 Due from other governments - - 334,228 - Deposits - Inventory for resale Inventory Advances to other funds Prepaid costs - - - - - Total assets $ 1, 007,057 $ 3, 440,670 $ 5, 447,727 $ 16,570 $ 1,276,034 $ $ 38,047 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ $ $ $ $ $ $ Wages payable Due to other funds Due to other governments 512 670 1,182 Unearned revenues - - - Refundable deposits Retainage payable Advances from other funds - - - Total liabilities 512 670 1,182 Deferred inflows of resources: Unavailable revenue - - - Related to leases Total deferred inflows of resources - - - Fund balances: Nonspendable 1,582,800 3,940,000 5,522,800 Restricted 223,745 - 223,745 16,570 1,276,034 38,047 Committed - - - - - Assigned - - - - - - Total fund balances 1,806,545 3,940,000 5,746,545 16,570 1,276,034 38,047 Total liabilities, deferred inflows of resources and fund balances $ 1, 007,057 $ 3, 440,670 $ 5, 447,727 $ 16,570 $ 1,276,034 $ $ 38,047 See accompanying independent auditors' report Debt Service Funds Capital Project Funds Tourist Special Development Total Emergency Obligation Tax Debt County -Wide Count -Wide Correctional Medical Refunding Revenue Service Capital Parks Library Facilities Services Revenue Bonds Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ 89,135 $ 2,955,409 $ 4,035,750 $ 34,715,227 $ 30,181,812 $ 842,546 $ 1,317,280 $ 1,456,012 10,678,128 - 10,678,128 - - - - - 1,463 3,362 5,684 35,380 35,502 1,073 2,323 1,862 - - - - 50,000 - - - 213,229 135,242 71,824 4,358 8,077 8,275 248,300 804,800 127,100 334,228 2,731,728 130,766 25,370 32,684 9,155 $ 10,768,726 $ 2,958,771 $ 15,058,148 $ 37,490,412 $ 30,406,355 $ 1,330,518 $ 2,292,329 $ 1,665,953 $ $ $ $ 746,863 $ 1,575,742 $ $ $ 9,045,000 9,045,000 170,515 - - 180,939 114,347 9,045,000 9,045,000 1,098,317 1,690,089 213,229 135,242 71,824 213,229 135,242 71,824 1,723,726 2,958,771 6,013,148 17,599,229 1,117,289 2,157,087 1,594,129 - - 36,392,095 11,117,037 - - - 1,723,726 2,958,771 6,013,148 36,392,095 28,716,266 1,117,289 2,157,087 1,594,129 $ 10,768,726 $ 2,958,771 $ 15,058,148 $ 37,490,412 $ 30,406,355 $ 1,330,518 $ 2,292,329 $ 1,665,953 97 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2021 Capital Project Funds Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees ASSETS Cash and investments $ 66,038,130 $ 7,298,064 $ 42,546,469 $ 107,501,831 $ 55,301,985 $ 2,298,252 Cash with fiscal agent - - - - - - Receivables: Interest 77,380 8,474 48,618 123,513 62,797 4,602 Trade, net - - - - - - Notes - - - Impact fee 1,592,976 4,122,368 315,359 Special assessments - - - Leases - - - Due from other funds 585,697 21,437 1,524,500 - 233,544 1,701,000 Due from other governments 5,471,896 184,961 205,080 550,666 3,330,435 60,209 Deposits - - 1,250 - - - Inventory for resale - Inventory Advances to other funds - Prepaid costs - - - - - Total assets $ 72,173,103 $ 7,512,936 $ 45,918,893 $ 112,298,378 $ 58,928,761 $ 4,379,422 Liabilities, Deferred Inflows of Resources And Fund Balances Liabilities Accounts payable $ 1,105,650 $ 279,241 $ 186,271 $ 1,792,283 $ 2,718,244 $ Wages payable - - - - - Due to other funds Due to other governments Unearned revenues - - Refundable deposits - - - 22,500 81,360 Retainage payable 297,671 19,022 137,253 412,996 214,119 Advances from other funds - - - - Total liabilities 1,403,321 298,263 323,524 2,227,779 3,013,723 Deferred inflows of resources: Unavailable revenue - - 1,592,976 4,122,369 - 315,359 Related to leases - - - Total deferred inflows of resources 1,592,976 4,122,369 315,359 Fund balances: Nonspendable - - - - Restricted 58,550,543 44,002,393 105,948,230 55,915,038 4,064,063 Committed - - - - - Assigned 12,219,239 7,214,673 - - - - Total fund balances 70,769,782 7,214,673 44,002,393 105,948,230 55,915,038 4,064,063 Total liabilities, deferred inflows of resources and fund balances $ 72,173,103 $ 7,512,936 $ 45,918,893 $ 112,298,378 $ 58,928,761 $ 4,379,422 See accompanying independent auditors' report 98 Capital Project Funds Total Total Law All Terrain Amateur Other Capital Nonmajor Enforcement Vehicle Sports Capital Project Governmental Impact Fees Park Complex Projects Funds Funds $ 2,341,794 $ 3,180,100 $ 33,649,229 $ 11,355,403 $ 400,024,134 $ 648,236,614 - - - - - 10,678,128 2,784 3,613 35,734 12,846 456,501 733,648 - - - - 50,000 2,222,024 - - 298,648 151,195 - 6,602,193 6,602,193 - 1,405 1,405 1,405 - - - 6,374,122 307,800 148 5,570,678 9,466,625 - 20,778 12,753,728 14,813,363 - 1,250 1,250 - 229,733 1,093,901 19,460,080 - - - - - 6,091 $ 2,803,573 $ 3,183,713 $ 33,684,963 $ 11,390,580 $ 425,459,889 $ 720,217,825 $ $ $ 7,340,783 $ 30,832 $ 15,775,909 $ 20,489,021 - - - 2,979,084 18,653 189,168 10,428,581 - 180,939 3,969,813 - 89,857 - 103,860 5,100,595 3,858,158 - 5,053,566 5,334,820 17,200,000 9,264 17,209,264 17,710,226 28,398,941 58,749 38,512,706 66,101,997 151,195 6,602,194 6,602,194 - - 6,021,515 151,195 6,602,194 12,623,709 - - - - 6,622,792 2,652,378 5,286,022 94,349 298,980,750 505,894,992 - - - - - 44,582,017 3,183,713 - 11,237,482 81,364,239 84,392,318 2,652,378 3,183,713 5,286,022 11,331,831 380,344,989 641,492,119 $ 2,803,573 $ 3,183,713 $ 33,684,963 $ 11,390,580 $ 425,459,889 $ 720,217,825 • o COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 IRevenue Funds Water Management Road Unincorporated Community and Pollution Pelican Stormwater Districts Area MSTD Development Control Bay Utility Revenues: Taxes $ $ 52,004,292 $ - $ 2,800,500 $ 632,247 $ Licenses, permits and impact fees 55,995 31,756,441 - - Intergovernmental 2,045,980 141,872 - - 8 62,500 Charges for services 285,696 2,424,418 3,937,389 322,914 - - Fines and forfeitures - 341,293 - - - - Interest income 4,716 167,800 43,739 2,734 6,609 3,279 Special assessments - - - - 4,075,210 - Miscellaneous 42,764 295,669 60,243 - 60,922 3,530 Total revenues 2,379,156 55,431,339 35,797,812 3,126,148 4,774,996 69,309 Expenditures: Current: General government 6,175,622 8,405,910 Public safety 4,325,750 20,055,331 - - - Physical environment - 588,731 1,356,596 2,654,316 1,095,621 7,285,936 Transportation 22,501,259 12,951,162 360,745 - 3,125,209 - Economic environment - 101,800 - - Human services - Culture and recreation - 12,566,594 - Debt service Principal 158 7,792 12,987 Interest 142 56 190 Fiscal charges - - - - - - Capital outlay 191,416 150,929 85,666 27,502 292,274 214,652 Total expenditures 22,692,975 36,868,436 30,264,248 2,681,818 4,526,281 7,500,588 Excess (deficit) of revenues over (under) expenditures (20,313,819) 18,562,903 5,533,564 444,330 248,715 (7,431,279) Other financing sources (uses): Bondsissued Payment to current refunding escrow Premium on bonds issued Leases - - - Sale of capital assets 33 - 2,207 97,650 - Insurance proceeds 249,310 979,660 - - 701 215 Transfers in 21,092,906 1,782,650 934,702 68,588 144,230 7,506,000 Transfers out (1,229,604) (17,814,220) (337,400) (302,067) (2,184,159) (20,000) Total other financing sources (uses) 20,112,645 (15,051,910) 599,509 (233,479) (1,941,578) 7,486,215 Net change in fund balances (201,174) 3,510,993 6,133,073 210,851 (1,692,863) 54,936 Fund balances at beginning of year 3,542,605 13,499,567 35,985,839 1,691,851 4,974,995 1,722,717 Fund balances at end of year $ 3,341,431 $ 17,010,560 $ 42,118,912 $ 1,902,702 $ 3,282,132 $ 1,777,653 See accompanying independent auditors' report 100 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership IRCP Fund Administration $ 5,207,394 $ 1,380,883 $ 853,302 $ $ 36,192,118 $ $ $ 113,027 1,930,322 1,919,936 3,083,684 126,858 - 1,046,852 - 350,290 156,740 - - - - - - - 549,261 20,909 1,405 919 2,377 84,452 1,935 12,386 438 42,820 - 9,659 89,993 139,209 562,028 109,919 11,515 5,511,008 1,382,288 863,880 2,022,692 39,382,567 3,647,647 472,595 717,954 - - - 1,274,594 - 1,921,403 1,977,500 - 1,052,469 1,492,863 611,479 - - - 1,578,359 - - 1,046,477 718,945 - - - - 2,807,903 884,197 15,324,339 - 27,224 346,250 1,200 2,478 54,082 4,018,683 - - - 3,059,111 - 2,360,646 - 6,562,036 1,951,105 718,945 1,977,500 19,961,809 2,807,903 3,813,447 2,767,457 (1,051,028) (568,817) 144,935 45,192 19,420,758 839,744 (3,340,852) (2,049,503) - - 2,313,620 3,400 1,050 - 60,396 - - 1,415 - - 697,981 576,600 6,586 3,234,000 817,100 2,409,700 (764,448) (41,575) (24,450) (7,790,654) - (244,600) (2,671) 535,025 (17,864) - (4,554,189) - 3,130,720 2,165,100 (1,053,699) (33,792) 127,071 45,192 14,866,569 839,744 (210,132) 115,597 16,807,228 280,847 472,218 1,776,579 87,960,015 1,751,490 478,238 188,944 $ 15,753,529 $ 247,055 $ 599,289 $ 1,821,771 $ 102,826,584 $ 2,591,234 $ 268,106 $ 304,541 101 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services Revenues: Taxes $ $ $ 101,762 $ 170 $ $ Licenses, permits and impact fees - - Intergovernmental - - - 314,839 Charges for services 100,000 747,778 1,492,300 7,085,844 Fines and forfeitures - - - - Interest income 468 683 11155 26,665 1,173 11,409 Special assessments - - - - - Miscellaneous - 700 - 72,789 - - Total revenues 468 1,383 202,917 847,402 1,493,473 7,412,092 Expenditures: Current: General government - - - - 952,125 7,412,092 Public safety 6,500 - - 11,800 - Physical environment - 253,760 811,647 - Transportation - - Economic environment - Human services 42,515 Culture and recreation - Debt service Principal Interest Fiscal charges - - Capital outlay - 67,087 10,263 - Total expenditures 6,500 - 253,760 878,734 1,016,703 7,412,092 Excess (deficit) of revenues over (under) expenditures (6,032) 1,383 (50,843) (31,332) 476,770 - Other financing sources (uses): Bondsissued - - Payment to current refunding escrow Premium on bonds issued Leases - Sale of capital assets 1,575 Insurance proceeds - - Transfers in - 1 Transfers out (1) (3,001,300) - Total other financing sources (uses) (1) (3,001,299) 1,575 Net change in fund balances (6,032) 1,382 (50,843) (3,032,631) 478,345 Fund balances at beginning of year 525,978 924,837 1,280,712 29,115,427 1,079,707 Fund balances at end of year $ 519,9 66 $ 926,219 $ 1,229,869 $ 26,082,796 $ 1,558,052 $ See accompanying independent auditors' report 102 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Special Revenue Revenue Extension Fee Housing Zone Funds Revenue Funds Funds Funds $ $ $ $ 1,942,900 $ $ $ - $ 101,115,568 - 45,660 31,858,096 331 9,612,499 320,000 1,886,667 836,734 271,722 21,392,202 966,715 - - - 86,944 43,999 1,988,212 64 7,221 571 2,540 12,337 1,297 1,404 420,685 - - - - - - - 4,075,210 537,432 2,039,192 64 973,936 320,571 1,945,440 1,899,004 924,975 900,548 172,501,664 146,111 373,870 - 148,833 24,889,157 - - - 524,923 141,800 31,510,339 23,944 - - 16,260,389 - - - 40,703,797 221,158 129,837 3,260,698 - - 346,636 389,151 22,094 28,797,224 394,411 58,148 4,367 10,482,596 23,944 146,111 221,158 129,837 373,870 524,923 663,730 156,745,910 (23,880) 827,825 99,413 1,815,603 1,525,134 400,052 236,818 15,755,754 2,313,620 105,915 - - 1,291,697 223,400 243,900 39,738,344 - - (33,754,478) - 223,400 - - - 243,900 9,695,098 (23,880) 827,825 322,813 1,815,603 1,525,134 400,052 480,718 25,450,852 66,158 7,273,673 517,195 1,466,190 5,646,992 3,829,047 1,077,536 223,936,585 $ 42,278 $ 8,101,498 $ 840,008 $ 3,281,793 $ 7,172,126 $ 4,229,099 $ 1,558,254 $ 249,387,437 103 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Permanent Funds Debt Service Funds Pooled Resource Pepper Ranch Total Commercial Gas Tax Community Forest Lakes Recovery Park Conservation Permanent Paper Refunding Redevelopment Limited General Endowment Bank Funds Program Revenue Bonds Taxable Note Obligation Bonds Revenues: Taxes $ $ $ $ $ $ $ 556,374 Licenses, permits and impact fees - Intergovernmental 2,033,421 Charges for services 7,875 7,875 - Fines and forfeitures - - - - Interest income 1,775 3,492 5,267 27 1,176 474 445 Special assessments - - - - - - - Miscellaneous - 41,200 41,200 - - - - Total revenues 9,650 44,692 54,342 27 2,034,597 474 556,819 Expenditures: Current: General government - - - - - - - Public safety - - - Physical environment 26,770 72,057 98,827 Transportation - - - Economic environment Human services Culture and recreation - - - - Debt service Principal 1,100,000 11,515,000 3,291,218 1,060,000 Interest 12,362 1,801,953 28,921 22,525 Fiscal charges 805 1,610 - 3,571 Capital outlay - - - - Total expenditures 26,770 72,057 98,827 1,113,167 13,318,563 3,320,139 1,086,096 Excess (deficit) of revenues over (under) expenditures (17,120) (27,365) (44,485) (1,113,140) (11,283,966) (3,319,665) (529,277) Other financing sources (uses): Bonds issued 10,000,000 Payment to current refunding escrow (10,000,000) Premium on bonds issued Leases Sale of capital assets Insurance proceeds - - - - Transfers in 3,001,300 3,001,300 965,000 11,465,000 3,071,500 54,358 Transfers out - - - - (318,703) (93,587) Total other financing sources (uses) 3,001,300 3,001,300 965,000 11,465,000 2,752,797 (39,229) Net change in fund balances (17,120) 2,973,935 2,956,815 (148,140) 181,034 (566,868) (568,506) Fund balances at beginning of year 1,823,665 966,065 2,789,730 164,710 1,095,000 566,868 606,553 Fund balances at end of year $ 1,806,545 $ 3,940,000 $ 5,746,545 $ 66,570 $ 1, 776,034 $ - $ 38,047 See accompanying independent auditors' report 104 Debt Service Funds Capital Project Funds Special Tourist Total Emergency Obligation Development Debt County -Wide Count -Wide Correctional Medical Refunding Tax Service Capital Parks Library Facilities Services Revenue Bonds Revenue Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ $ $ 556,374 $ - $ - $ - $ - $ - - 584,603 1,075,336 1,820,697 517,098 2,033,421 598,210 3,584 - - - 1,357 1,141 4,620 29,743 23,503 1,207 1,424 1,791 - - - 78,498 70,000 - - 45 1,357 1,141 2,594,415 706,451 681,690 1,076,543 1,822,121 518,934 3,632,069 - - 460,800 4,330 49,120 35,563 - - 17,901 - - 1,521 1,610,733 336 11,841,000 1,030,000 29,837,218 8,457,559 2,690,750 13,014,070 1,076,097 2,450 1,084,533 - - - - - - 24,510,038 4,803,838 - - 97,345 21,374,656 3,723,200 43,935,821 28,657,892 6,414,571 336 4,330 146,465 (21,373,299) (3,722,059) (41,341,406) (27,951,441) (5,732,881) 1,076,207 1,817,791 372,469 841,195 10,841,195 24,075,000 16,064,701 - (10,000,000) - - 259,203 259,203 925,000 3,935,299 - 1,000 - - - 619,856 81,146 14,174 20,004,100 3,722,800 39,282,758 24,637,100 6,910,051 - - - (412,290) (3,931,998) (34,244) (1,060,900) (1,822,000) (442,900) 21,104,498 3,722,800 39,970,866 46,324,958 26,957,953 (1,060,900) (1,822,000) (428,726) (268,801) 741 (1,370,540) 18,373,517 21,225,072 15,307 (4,209) (56,257) 1,992,527 2,958,030 7,383,688 18,018,578 7,491,194 1,101,982 2,161,296 1,650,386 $ 1,723,726 $ 2,958,771 $ 6,013,148 $ 36,392,095 $ 28,716,266 $ 1,117,289 $ 2,157,087 $ 1,594,129 105 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Capital Project Funds Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Principal Interest Fiscal charges Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Payment to current refunding escrow Premium on bonds issued Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year See accompanying independent auditors' report Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees $ $ $ - $ - $ 16,292,025 $ 11,611,094 26,361,112 - 3,206,011 5,471,897 3,469 - 1,382,720 4,594,297 - - - - 47,989 50,670 5,770 39,700 114,858 54,636 3,659 - 1,534,728 - - - - 16 649,368 - 5,522,583 1,543,967 11,650,794 27,858,690 21,638,315 3,209,670 934 2,236,820 377,402 - - - - 514,950 11,641,370 128,661 5,431,708 829,315 3,310,014 29,315,743 7,064,054 - 7,668,528 1,206,717 3,438,675 29,830,693 18,705,424 934 (2,145,945) 337,250 8,212,119 (1,972,003) 2,932,891 3,208,736 48,194,104 11,805,895 - 8,504 - 4 - 689,212 - 403,575 - 7,994,000 2,603,237 11,817,301 2,192,100 (1,548,354) (64,794) (3,713,100) (11,465,005) (5,575,800) 66,445,645 3,227,655 (3,704,596) 755,871 (3,383,696) 64,299,700 3,564,905 4,507,523 (1,972,003) 3,688,762 (174,960) 6,470,082 3,649,768 39,494,870 107,920,233 52,226,276 4,239,023 $ 70,769, 882 $ 7,214,673 $ 44, 002,393 $ 105, 448,230 $ 55,915,038 $ 4,064,063 106 Capital Project Funds Total Total Law All Terrain Amateur Other Capital Nonmajor Enforcement Vehicle Sports Capital Project Governmental Impact Fees Park Complex Projects Funds Funds $ $ $ $ 14,080 $ 16,306,105 $ 117,978,047 2,006,245 38,713 47,220,909 79,079,005 - 19,184 12,073,361 23,719,281 2,000 49,989 21,450,066 - - - 1,988,212 2,415 3,102 22,992 10,448 365,918 796,490 - - - - 1,534,728 5,609,938 - - - 8,402 806,329 2,886,721 2,008,660 3,102 22,992 92,827 78,357,339 253,507,760 - 23,502 3,656,505 28,545,662 6,314 1,600 522,164 32,032,503 - - 2,649,785 19,009,001 12,156,320 52,860,117 - 3,260,698 17,901 407,052 850 183,330 86,182 2,011,613 30,808,837 30,231,629 13,072,218 - - - 1,084,533 15,075,475 126,199 90,563,729 101,046,325 6,314 850 15,258,805 237,483 111,578,017 312,358,575 2,002,346 2,252 (15,235,813) (144,656) (33,220,678) (58,850,815) 88,333,805 99,175,000 - (10,000,000) 16,666,194 16,925, 397 - 2,313,620 9,508 115,423 1,807,963 3,099,660 3,140,186 214,474 59,508,449 141,530,851 (1,831,300) - (23,811) (31,514,206) (65,680,974) (1,831,300) - 3,140,186 190,663 134,811,713 187,478,977 171,046 2,252 (12,095,627) 46,007 101,591,035 128,628,162 2,481,332 3,181,461 17,381,649 11,285,824 278,753,954 512,863,957 $ 2, 552,378 $ 3,183,713 $ 5,286,022 $ 11,331,831 $ 380,344,989 $ 641,492,119 107 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Infrastructure Sales Tax Road Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 86,591,800 $ 99,588,370 $ 12,996,570 $ $ $ 1,951,500 2,045,980 94,480 217,700 285,696 67,996 1,000,000 624,359 (375,641) 50,000 17,475 (32,525) - - 38,900 42,764 3,864 87,591,800 100,212,729 12,620,929 2,258,100 2,391,915 133,815 23,626,873 22,438,077 1,188,796 - - - 300 300 - 142,685,279 28,642,763 114,042,516 299,792 191,416 108,376 142,685,279 28,642,763 114,042,516 23,926,965 22,629,793 1,297,172 (55,093,479) 71,569,966 126,663,445 (21,668,865) (20,237,878) 1,430,987 (913,824) (913,824) (56,007,303) - 33 33 139,400 249,310 109,910 - 21,092,900 21,092,906 6 913,824 (1,229,600) (1,229,604) (4) 913,824 20,002,700 20,112,645 109,945 71,569,966 127,577,269 (1,666,165) (125,233) 1,540,932 125,595,330 125,595,330 - 1,864,765 1,864,765 - $ 69,588,027 $ 197,165,296 $ 127,577,269 $ 198,600 $ 1,739,532 $ 1,540,932 Reconciliation: Net change in fund balance, budgetary basis $ 71,569,966 $ (125,233) Change in fair value of investments (503,158) (12,759) Change in inventory (63,182) Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ 71,066,808 $ (201,174) See accompanying independent auditors' report 108 Unincorporated Area MSTD (Budgetary Basis) Budget Actual Variance $ 53,898,700 $ 52,004,292 $ (1,894,408) 34,300 55,995 21,695 - 141,872 141,872 2,899,900 2,424,418 (475,482) 212,000 341,293 129,293 450,000 255,593 (194,407) 255,100 295,669 40,569 57,750,000 55,519,132 (2,230,868) 7,730,151 6,175,622 1,554,529 4,766,586 4,325,750 440,836 875,200 588,731 286,469 16,862,714 12,947,255 3,915,459 115,300 101,800 13,500 13,706,790 12,566,594 1,140,196 8,000 7,848 152 1,399,285 150,929 1,248,356 45,464,026 36,864,529 8,599,497 Community Development (Budgetary Basis) Budget Actual Variance 21,263,700 31,756,441 10,492,741 2,785,100 3,937,389 1,152,289 480,000 89,070 (390,930) 50,200 60,243 10,043 24,579,000 35,843,143 11,264,143 9,832,450 8,405,910 1,426,540 24,510,768 20,055,331 4,455,437 1,426,200 1,356,596 69,604 363,700 360,745 2,955 632,058 85,666 546,392 36,765,176 30,264,248 6,500,928 12,285,974 18,654,603 6,368,629 (12,186,176) 5,578,895 17,765,071 50,000 979,660 929,660 12,261,200 2,007,875 (10,253,325) (28,686,086) (17,814,220) 10,871,866 (16,374,886) (14,826,685) 1,548,201 (4,088,912) 3,827,918 7,916,830 10,538,158 10,538,158 - $ 6,449,246 $ 14,366,076 $ 7,916,830 $ 3,827,918 (87,793) (3,907) (225,225) 100 2,207 2,107 300 - (300) 1,063,000 1,063,002 2 (3,921,458) (1,514,140) 2,407,318 (2,858,058) (448,931) 2,409,127 (15,044,234) 5,129,964 20,174,198 31,564,334 31,564,334 - $ 16,520,100 $ 36,694,298 $ 20,174,198 $ 5,129,964 (45,331) 1,048,440 109 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Water Management and Pollution Control Pelican Bay (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 2,896,100 $ 2,800,500 $ (95,600) $ 656,400 $ 632,247 $ (24,153) Licenses, permits and impact fees - - - - - Intergovernmental - - - 8 8 Charges for services 275,000 322,914 47,914 - - Fines and forfeitures - - - - - Interest income 16,800 10,565 (6,235) 42,100 23,893 (18,207) Special assessments - - 4,224,600 4,075,210 (149,390) Miscellaneous - - 60,922 60,922 Total revenues 3,187,900 3,133,979 (53,921) 4,923,100 4,792,280 (130,820) Expenditures: Current: General government - - - - Public safety - - - - - - Physical environment 3,226,926 2,644,154 582,772 1,291,700 1,095,621 196,079 Transportation - - 3,526,200 3,125,209 400,991 Economic environment - - - - Human services Culture and recreation - - - Debt service - - - 13,500 13,177 323 Capital outlay 99,600 27,502 72,098 299,200 292,274 6,926 Total expenditures 3,326,526 2,671,656 654,870 5,130,600 4,526,281 604,319 Excess (deficit) of revenues over (under) expenditures (138,626) 462,323 600,949 (207,500) 265,999 473,499 Other financing sources (uses): Bondsissued - - - - Payment to current refunding escrow Premiums on bonds issued Loansissued - - Sale of capital assets 97,650 97,650 Insurance proceeds - - - - 701 701 Transfers in 43,300 68,588 25,288 34,100 144,230 110,130 Transfers out (313,300) (302,067) 11,233 (2,327,600) (2,184,159) 143,441 Total other financing sources (uses) (270,000) (233,479) 36,521 (2,293,500) (1,941,578) 351,922 Net change in fund balances (408,626) 228,844 637,470 (2,501,000) (1,675,579) 825,421 Fund balances at beginning of year 1,295,026 1,295,026 - 4,443,800 4,443,800 - Fund balances at end of year $ 886,400 $ 1,523,870 $ 637,470 $ 1,942,800 $ 2,768,221 $ 825,421 Reconciliation: Net change in fund balance, budgetary basis $ 228,844 $ (1,675,579) Change in fair value of investments (7,831) (17,284) Change in inventory (10,162) Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 210,851 $ (1,692,863) See accompanying independent auditors' report 110 Stormwater Utility Improvement Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ $ $ $ 5,390,100 $ 5,207,394 $ (182,706) 62,500 62,500 - 113,027 113,027 - - 212,100 126,858 (85,242) 10,000 14,050 4,050 131,700 87,244 (44,456) - 3,530 3,530 - 42,820 42,820 72,500 80,080 7,580 5,733,900 5,577,343 (156,557) 8,135,779 7,316,097 819,682 5,210,091 611,479 4,598,612 - - - 1,858,118 1,046,477 811,641 1,141,690 884,197 257,493 - - - 2,000 1,200 800 267,582 214,652 52,930 11,123,724 4,018,683 7,105,041 8,403,361 7,530,749 872,612 19,335,623 6,562,036 12,773,587 (8,330,861) (7,450,669) 880,192 (13,601,723) (984,693) 12,617,030 - - 3,400 3,400 - 215 215 - 60,396 60,396 7,506,000 7,506,000 - 2,921,200 2,238,690 (682,510) (20,000) (20,000) - (2,768,725) (2,631,057) 137,668 7,486,000 7,486,215 215 152,475 (328,571) (481,046) (844,861) 35,546 880,407 (13,449,248) (1,313,264) 12,135,984 1,019,861 1,019,861 - 17,626,112 17,626,112 - $ 775,000 $ 1,055,407 $ 880,407 $ 4, 776,864 $ 16, 112,848 $ 12,135,984 $ 35,546 $ (1,313,264) (10,771) (66,335) 30,161 - - 325,900 111 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Fire Control Districts Lighting Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 1,423,700 $ 1,380,883 $ (42,817) $ 884,000 $ 853,302 $ (30,698) 1,000 5,447 4,447 4,300 3,636 (664) 1,200 - (1,200) - 9,659 9,659 1,425,900 1,386,330 (39,570) 888,300 866,597 (21,703) 2,077, 900 1,921,403 156,497 850,800 718,945 131,855 30,000 29,702 298 2,107,900 1,951,105 156,795 850,800 718,945 131,855 (682,000) (564,775) 117,225 37,500 147,652 110,152 576,700 576,600 (100) 6,586 6,586 (47,100) (41,575) 5,525 (30,700) (24,450) 6,250 529,600 535,025 5,425 (30,700) (17,864) 12,836 (152,400) (29,750) 122,650 6,800 129,788 122,988 498,800 498,800 - 429,300 429,300 - $ 346,400 $ 469,050 $ 122,650 $ 436,100 $ 559,088 $ 122,988 $ (29,750) $ 129,788 (4,042) (2,717) 112 911 Enhancement Fee Tourist Development (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ $ $ $ 24,972,100 $ 36,192,118 $ 11,220,018 1,800,000 1,930,322 130,322 - 1,919,936 1,919,936 - - - 24,000 1,046,852 1,022,852 25,900 10,493 (15,407) 742,000 369,057 (372,943) 89,993 89,993 2,700 139,209 136,509 1,825,900 2,030,808 204,908 25,740,800 39,667,172 13,926,372 2,063,100 1,977,500 85,600 - - - - - - 3,682,116 1,578,359 2,103,757 17,819,261 15,324,339 2,494,922 39,600 - 39,600 18,743,263 3,059,111 15,684,152 2,102,700 1,977,500 125,200 40,244,640 19,961,809 20,282,831 (276,800) 53,308 330,108 (14,503,840) 19,705,363 34,209,203 1,050 1,050 - 1,415 1,415 6,052,800 6,052,800 - (27,863,011) (27,809,454) 53,557 (21,810,211) (21,754,189) 56,022 (276,800) 53,308 (330,108) (36,314,051) (2,048,826) 34,265,225 1,639,700 1,639,700 - 78,392,972 78,392,972 - $ 1,362,900 $ 1,693,008 $ (330,108) $ 42,078,921 $ 76,344,146 $ 34,265,225 $ 53,308 $ (2,048,826) (8,116) (284,605) 17,200,000 113 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 State Housing Initiativeship Partnership 800 MHZ IRCP Fund (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental 4,650,828 3,083,684 (1,567,144) Charges for services - - 348,500 350,290 1,790 Fines and forfeitures - - - - - Interest income 184,051 8,557 (175,494) 1,000 13,923 12,923 Special assessments - - - - - Miscellaneous 1,793,244 562,028 (1,231,216) 143,300 109,919 (33,381) Total revenues 6,628,123 3,654,269 (2,973,854) 492,800 474,132 (18,668) Expenditures: Current: General government - - - - - Public safety 1,171,074 1,052,469 118,605 Physical environment - - - - Transportation - - Economic environment 6,662,449 2,807,903 3,854,546 Human services - - - Culture and recreation - - - Debt service - - 401,000 400,332 668 Capital outlay 5,000 - 5,000 47,026 47,026 - Total expenditures 6,667,449 2,807,903 3,859,546 1,619,100 1,499,827 119,273 Excess (deficit) of revenues over (under) expenditures (39,326) 846,366 885,692 (1,126,300) (1,025,695) 100,605 Other financing sources (uses): Bondsissued - - - Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Payment to refunding bond escrow - - Transfers in 817,100 817,100 Transfers out - - Total other financing sources (uses) - 817,100 817,100 - Net change in fund balances (39,326) 846,366 885,692 (309,200) (208,595) 100,605 Fund balances at beginning of year 39,326 39,326 - 547,400 547,400 - Fund balances at end of year $ - $ 885,692 $ 885,692 $ 338,200 $ 338,805 $ 000,605 Reconciliation: Net change in fund balance, budgetary basis $ 846,366 $ (208,595) Change in fair value of investments (6,622) (1,537) Change in inventory Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ 839, 444 $ (210,132) See accompanying independent auditors' report 114 State Court Administration Confiscated Property (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 145,000 156,740 11,740 646,000 549,261 (96,739) - - 1,000 1,977 977 2,400 2,247 (153) 11,515 11,515 - - - 792,000 719,493 (72,507) 2,400 2,247 (153) 1,287,000 1,274,594 12,406 - - - 1,680,100 1,492,863 187,237 461,500 6,500 455,000 6,000 - 6,000 - - - 2,973,100 2,767,457 205,643 461,500 6,500 455,000 (2,181,100) (2,047,964) 133,136 (459,100) (4,253) 454,847 2,409,700 2,409,700 (244,600) (244,600) 2,165,100 2,165,100 - - (16,000) 117,136 133,136 (459,100) (4,253) 454,847 20,600 20,600 - 545,000 545,000 - $ 4,600 $ 337,736 $ 333,136 $ 85,900 $ 440,747 $ 554,847 $ 117,136 $ (4,253) (1,539) (1,779) 1 55,597 $ $ (6,032) 115 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 GAC Land Sales, Roads and Canals Utility Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ 80,000 $ 101,762 $ 21,762 Licenses, permits and impact fees - - - Intergovernmental - - Charges for services 100,000 100,000 Fines and forfeitures - - Interest income 9,000 3,037 (5,963) 10,000 5,067 (4,933) Special assessments - - - - - Miscellaneous - 700 700 - Total revenues 9,000 3,737 (5,263) 190,000 206,829 16,829 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report 326,900 253,760 73,140 326,900 253,760 73,140 9,000 3,737 (5,263) (136,900) (46,931) 89,969 9,000 3,736 (5,264) (136,900) (46,931) 89,969 699,500 699,500 1,230,500 1,230,500 - $ 708,500 $ 703,236 $ (5,264) $ 1,093,600 $ 1,183,569 $ 89,969 $ 3,736 $ (46,931) (2,354) (3,912) 116 Conservation Collier Court Information Technology (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ $ 170 $ 170 $ $ $ 747,778 747,778 750,000 1,492,300 742,300 602,300 115,967 (486,333) 4,200 5,942 1,742 28,200 72,789 44,589 - - - 630,500 936,704 306,204 754,200 1,498,242 744,042 - - - 1,184,600 952,125 232,475 - - - 27,500 11,800 15,700 1,040,062 811,647 228,415 - - - 58,900 42,515 16,385 253,180 67,087 186,093 71,000 10,263 60,737 1,293,242 878,734 414,508 1,342,000 1,016,703 325,297 (662,742) 57,970 720,712 (587,800) 481,539 1,069,339 1,575 1,575 335,300 335,301 1 (3,346,600) (3,336,600) 10,000 - - (3,011,300) (3,001,299) 10,001 1,575 1,575 (3,674,042) (2,943,329) 730,713 (587,800) 483,114 1,070,914 29,273,342 29,273,342 - 744,800 744,800 - $ 25,5 99,300 $ 26, 330,013 $ 330,713 $ 557,000 $ 1, 227,914 $ 1,070,914 $ (2,943,329) $ 483,114 (89,302) (4,769) 117 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report University Extension Court Services (Budgetary Basis) Budget Actual Variance Budget Actual Variance 449,522 314,839 (134,683) - 5,915,791 7,085,844 1,170,053 10,000 (10,000) 43,100 11,409 (31,691) 253 253 6,408,413 7,412,092 1,003,679 10,000 253 (9,747) 6,408,413 6,108,783 299,630 - - 36,900 23,944 12,956 6,408,413 6,108,783 299,630 36,900 23,944 12,956 - 1,303,309 1,303,309 (26,900) (23,691) 3,209 (10,000) 10,000 - (10,000) 10,000 1,303,309 1,303,309 (36,900) (23,691) 13,209 - - 66,800 66,800 - $ $ 1,303,309 $ 1,303,309 $ 29,900 $ 43,109 $ 13,209 $ 1,303,309 $ (23,691) - (189) (1,303,309) $ $ (23,880) 118 Court Facilities Fee Affordable Housing (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - - - 320,000 320,000 810,000 966,715 156,715 - - 65,000 32,936 (32,064) 2,975 2,975 875,000 999,651 124,651 322,975 322,975 4,750, 520 146,111 4,604,409 688,751 221,158 467,593 1,238,358 - 1,238,358 1,300 - 1,300 5,988,878 146,111 5,842,767 690,051 221,158 468,893 (5,113,878) 853,540 5,967,418 (690,051) 101,817 791,868 223,400 223,400 223,400 223,400 (5,113,878) 853,540 5,967,418 (466,651) 325,217 791,868 7,136,342 7,136,342 - 466,651 466,651 - $ 2,022,464 $ 7,989,882 $ 5,967,418 $ - $ 791,868 $ 791,868 $ 853,540 $ 325,217 (25,715) (2,404) 119 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Economic and Innovation Zones (Budgetary Basis) Other Court Special Revenue Funds Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ (1) $ (1) $ - $ Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report 10,259 10,259 10,258 10,258 10,258 10,258 10,258 10,258 $ $ 10,258 $ 10,258 $ $ $ $ 10,258 (10,258) 120 Other Public Safety Revenue Funds Other Special Revenue Funds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance (765,367) (765,367) 4,546 4,546 5,257 5,257 (760,821) (760,821) 5,257 5,257 (440,825) 440,825 (440,825) 440,825 - (319,996) (319,996) 5,257 5,257 (319,996) (319,996) 5,257 5,257 $ $ (319,996) $ (319,996) $ $ 5,257 $ 5,257 $ (319,996) $ 5,257 (4,546) (5,257) 324,541 $ (1) $ 121 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Resource Recovery Park Endowment Pepper Ranch Conservation Bank (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services 8,200 7,875 (325) Fines and forfeitures - - - Interest income 40,000 7,838 (32,162) 78,800 6,993 (71,807) Special assessments - - - - - Miscellaneous - - 24,200 41,200 17,000 Total revenues 48,200 15,713 (32,487) 103,000 48,193 (54,807) Expenditures: Current: General government - - - - Public safety - - - - - - Physical environment 51,000 26,770 24,230 97,473 72,057 25,416 Transportation - - - - - - Economic environment Human services Culture and recreation Debt service Capital outlay - - - - - - Total expenditures 51,000 26,770 24,230 97,473 72,057 25,416 Excess (deficit) of revenues over (under) expenditures (2,800) (11,057) (8,257) 5,527 (23,864) (29,391) Other financing sources (uses): Bondsissued - Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds - - Transfers in 3,001,300 3,001,300 Transfers out - - Total other financing sources (uses) 3,001,300 3,001,300 Net change in fund balances (2,800) (11,057) (8,257) 3,006,827 2,977,436 (29,391) Fund balances at beginning of year 1,808,700 1,808,700 938,373 938,373 - Fund balances at end of year $ 1,805,900 $ 1,797,643 $ (8,257) $ 3,945,200 $ 3,915,809 $ (29,391) Reconciliation: Net change in fund balance, budgetary basis $ (11,057) $ 2,977,436 Change in fair value of investments (6,063) (3,501) Change in inventory Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ (17,120) $ 2, 773,935 See accompanying independent auditors' report 122 Pooled Commercial Paper Program Gas Tax Refunding Revenue Bonds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 1,800,000 2,033,421 233,421 110 110 1,000 1,259 259 110 110 1,801,000 2,034,680 233,680 1,133,500 1,113,167 20,333 13,334,000 13,318,563 15,437 1,133,500 1,113,167 20,333 13,334,000 13,318,563 15,437 (1,133,500) (1,113,057) 20,443 (11,533,000) (11,283,883) 249,117 10,000,000 10,000,000 - - (10,000,000) (10,000,000) 1,119,000 965,000 (154,000) 11,465,000 11,465,000 1,119,000 965,000 (154,000) 11,465,000 11,465,000 - (14,500) (148,057) (133,557) (68,000) 181,117 249,117 14,500 14,500 1,011,700 1,011,700 - $ $ (133,557) $ (133,557) $ 943,700 $ 1, 992,817 $ 249,117 $ (148,057) $ 181,117 (83) (83) $ 181,034 $ (148,140) 123 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Community Redevelopment Taxable Note Forest Lakes Limited General (Budgetary Basis) Obligation Bonds (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ 577,300 $ 556,374 $ (20,926) Licenses, permits and impact fees - - Intergovernmental Charges for services Fines and forfeitures - - - Interest income 474 474 2,000 1,027 (973) Special assessments - - - - - Miscellaneous - - - Total revenues 474 474 579,300 557,401 (21,899) Expenditures: Current: General government - - - - Public safety Physical environment Transportation Economic environment Human services Culture and recreation - - - - - Debt service 3,464,000 3,320,139 143,861 1,087,900 1,086,096 1,804 Capital outlay - - - - - - Total expenditures 3,464,000 3,320,139 143,861 1,087,900 1,086,096 1,804 Excess (deficit) of revenues over (under) expenditures (3,464,000) (3,319,665) 144,335 (508,600) (528,695) (20,095) Other financing sources (uses): Bondsissued - Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds - - - - - Transfers in 3,253,000 3,071,500 (181,500) 50,000 54,358 4,358 Transfers out (330,000) (318,703) 11,297 (93,200) (93,587) (387) Total other financing sources (uses) 2,923,000 2,752,797 (170,203) (43,200) (39,229) 3,971 Net change in fund balances (541,000) (566,868) (25,868) (551,800) (567,924) (16,124) Fund balances at beginning of year 561,000 561,000 - 596,100 596,100 - Fund balances at end of year $ 20,000 $ (5,868) $ (25,868) $ 44,300 $ 28,176 $ (16,124) Reconciliation: Net change in fund balance, budgetary basis $ (566,868) $ (567,924) Change in fair value of investments (582) Change in inventory - Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ (566,868) $ (568,506) See accompanying independent auditors' report 124 Special Obligation Refunding Revenue Bonds Tourist Development Tax Revenue Bonds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 20,100 5,529 (14,571) 5,000 7,997 2,997 20,100 5,529 (14,571) 5,000 7,997 2,997 21,446,700 21,374,656 72,044 3,737,800 3,723,200 14,600 21,446,700 21,374,656 72,044 3,737,800 3,723,200 14,600 (21,426,600) (21,369,127) 57,473 (3,732,800) (3,715,203) 17,597 841,195 841,195 - 260,400 259,203 (1,197) 840,000 - (840,000) 20,004,100 20,004,100 3,722,800 3,722,800 21,104,500 21,104,498 (840,000) 3,722,800 3,722,800 - (322,100) (264,629) (782,527) (10,000) 7,597 17,597 1,865,300 1,865,300 2,918,300 2,918,300 - $ 1,5 33,200 $ 1, 000,671 $ (782,527) $ 2,908,300 $ 2, 225,897 $ 17,597 $ (264,629) $ 7,597 (4,172) (6,856) 125 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 County -Wide Capital Improvements Parks Improvements (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ - $ Licenses, permits and impact fees 590,000 584,603 (5,397) Intergovernmental 2,267,600 598,210 (1,669,390) 200,000 3,584 (196,416) Charges for services - - - - Fines and forfeitures - - - - - Interest income 189,300 138,730 (50,570) 93,000 119,662 26,662 Special assessments - - - - - - Miscellaneous 22,495 78,498 56,003 - 70,000 70,000 Total revenues 2,479,395 815,438 (1,663,957) 883,000 777,849 (105,151) Expenditures: Current: General government 8,313,396 3,632,069 4,681,327 - - Public safety 4,144,147 460,800 3,683,347 Physical environment 64,024 35,563 28,461 Transportation - - - Economic environment - - - Human services 27,419 17,901 9,518 - - - Culture and recreation 16,577 1,521 15,056 4,003,955 1,610,733 2,393,222 Debt service - - - - - - Capital outlay 37,448,961 24,510,038 12,938,923 19,877,152 4,803,838 15,073,314 Total expenditures 50,014,524 28,657,892 21,356,632 23,881,107 6,414,571 17,466,536 Excess (deficit) of revenues over (under) expenditures (47,535,129) (27,842,454) 19,692,675 (22,998,107) (5,636,722) 17,361,385 Other financing sources (uses): Bonds issued 24,075,000 24,075,000 - 16,064,701 16,064,701 Payment to current refunding escrow - - - - Premiums on bonds issued 925,000 925,000 3,935,299 3,935,299 Loans issued - - 20,000,000 - (20,000,000) Sale of capital assets - - - 1,000 1,000 Insurance proceeds 638,525 619,856 (18,669) - 81,146 81,146 Transfers in 27,963,600 24,637,100 (3,326,500) 6,910,051 6,910,051 - Transfers out (2,937,975) (3,931,998) (994,023) (66,932) (34,244) 32,688 Total other financing sources (uses) 50,664,150 46,324,958 (4,339,192) 26,843,119 26,957,953 114,834 Net change in fund balances 3,129,021 18,482,504 15,353,483 3,845,012 21,321,231 17,476,219 Fund balances at beginning of year 12,369,485 12,369,485 - 6,930,056 6,930,056 - Fund balances at end of year $ 15,498,506 $ 3 8851,989 $ 15, 553,483 $ 10, 775,068 $ 28, 551,287 $ 17,476,219 Reconciliation: Net change in fund balance, budgetary basis $ 18,482,504 $ 21,321,231 Change in fair value of investments (108,987) (96,159) Change in inventory Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 18,373,517 $ 21,225,072 See accompanying independent auditors' report 126 County -Wide Library Impact Fees Correctional Facilities Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 775,000 1,075,336 300,336 1,350,000 1,820,697 470,697 11,000 4,267 (6,733) 12,000 7,097 (4,903) 786,000 1,079,603 293,603 1,362,000 1,827,794 465,794 89,158 89,158 336 88,822 138,147 4,330 133,817 336 88,822 138,147 4,330 133,817 696,842 1,079,267 382,425 1,223,853 1,823,464 599,611 (1,060,900) (1,060,900) (1,822,000) (1,822,000) (1,060,900) (1,060,900) - (1,822,000) (1,822,000) - (364,058) 18,367 382,425 (598,147) 1,464 599,611 898,158 898,158 - 2,159,947 2,159,947 - $ 334,100 $ 116,525 $ 382,425 $ 1,561,800 $ 2, 661,411 $ 599,611 $ 18,367 $ 1,464 (3,060) (5,673) $ 55,307 $ (4,209) 127 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Emergency Medical Services Impact Fees Water Management (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ - $ $ $ $ Licenses, permits and impact fees 375,000 517,098 142,098 Intergovernmental - - - 5,471,897 5,471,897 Charges for services - - Fines and forfeitures - - - - Interest income 20,000 7,207 (12,793) 95,000 262,379 167,379 Special assessments - - - - - - Miscellaneous - 45 45 - 16 16 Total revenues 395,000 524,350 129,350 95,000 5,734,292 5,639,292 Expenditures: Current: General government - - - - - - Public safety 136,724 49,120 87,604 - - - Physical environment - - - 4,317,868 2,236,820 2,081,048 Transportation - - Economic environment - Human services Culture and recreation Debt service - - - - - - Capital outlay 229,998 97,345 132,653 29,864,354 5,431,708 24,432,646 Total expenditures 366,722 146,465 220,257 34,182,222 7,668,528 26,513,694 Excess (deficit) of revenues over (under) expenditures 28,278 377,885 349,607 (34,087,222) (1,934,236) 32,152,986 Other financing sources (uses): Bonds issued - - - 48,194,104 48,194,104 Payment to current refunding escrow - - Premiums on bonds issued 11,805,895 11,805,895 Loans issued 60,000,000 - (60,000,000) Sale of capital assets - Insurance proceeds 14,174 14,174 - - Transfers in - - 19,311,800 7,994,000 (11,317,800) Transfers out (442,900) (442,900) - (1,797,050) (1,548,354) 248,696 Total other financing sources (uses) (442,900) (428,726) 14,174 77,514,750 66,445,645 (11,069,105) Net change in fund balances (414,622) (50,841) 363,781 43,427,528 64,511,409 21,083,881 Fund balances at beginning of year 1,496,922 1,496,922 - 6,184,018 6,184,018 - Fund balances at end of year $ 1,082,300 $ 1,446,081 $ 363,781 $ 49,611,546 $ 70,695,427 $ 21,083,881 Reconciliation: Net change in fund balance, budgetary basis $ (50,841) $ 64,511,409 Change in fair value of investments (5,416) (211,709) Change in inventory Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ (56,257) $ 64,299,700 See accompanying independent auditors' report 128 Pelican Bay Capital Improvements Parks Impact Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - - 8,475,000 11,611,094 3,136,094 3,469 3,469 - - - 13,400 28,161 14,761 512,000 176,865 (335,135) 1,597,200 1,534,728 (62,472) - - - - 70,000 - (70,000) 1,610,600 1,566,358 (44,242) 9,057,000 11,787,959 2,730,959 1,568,276 377,402 1,190,874 265,303 128,661 136,642 5,122,812 829,315 4,293,497 40,518,421 3,310,014 37,208,407 6,691,088 1,206,717 5,484,371 40,783,724 3,438,675 37,345,049 (5,080,488) 359,641 5,440,129 (31,726,724) 8,349,284 40,076,008 - - - 8,504 8,504 529,212 689,212 160,000 - - 2,581,800 2,603,237 21,437 (113,900) (64,794) 49,106 (3,713,100) (3,713,100) - 2,997,112 3,227,655 230,543 (3,713,100) (3,704,596) 8,504 (2,083,376) 3,587,296 5,670,672 (35,439,824) 4,644,688 40,084,512 3,511,110 3,511,110 - 39,660,324 39,660,324 - $ 1,4 77,734 $ 7, 998,406 $ 5, 770,672 $ 4, 220,500 $ 44, 005,012 $ 40, 884,512 $ 3,587,296 $ 4,644,688 (22,391) (137,165) 129 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Road Impact Districts Road Construction (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 16,267,400 $ 16,292,025 $ 24,625 15,460,000 26,361,112 10,901,112 - - - 1,382,720 1,382,720 - 4,732,600 4,594,297 (138,303) - - 17,518 47,989 30,471 1,270,000 486,426 (783,574) 975,000 242,836 (732,164) - - 655,862 649,368 (6,494) 18,112,720 28,230,258 10,117,538 22,648,380 21,826,515 (821,865) 1,832,201 514,950 1,317,251 11,711,647 11,641,370 70,277 79,178,843 29,315,743 49,863,100 47,368,218 7,064,054 40,304,164 81,011,044 29,830,693 51,180,351 59,079,865 18,705,424 40,374,441 (62,898,324) (1,600,435) 61,297,889 (36,431,485) 3,121,091 39,552,576 - 403,575 403,575 - 11,817,300 11,817,301 1 (9,400,000) 9,400,000 (27,165,973) (11,465,005) 15,700,968 (9,400,000) 9,400,000 (15,348,673) 755,871 16,104,544 (72,298,324) (1,600,435) 70,697,889 (51,780,158) 3,876,962 55,657,120 102,238,427 102,238,427 - 54,291,448 54,291,448 - $ 29,940,103 $ 100,637,992 $ 70,697,889 $ 2,511,290 $ 58,168,410 $ 55,657,120 $ (1,600,435) $ 3,876,962 (371,568) (188,200) 130 Government Facilities Impact Fees Law Enforcement Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 2,500,000 3,206,011 706,011 1,400,000 2,006,245 606,245 35,000 16,353 (18,647) 20,000 10,576 (9,424) 2,535,000 3,222,364 687,364 1,420,000 2,016,821 596,821 98,166 934 97,232 144,898 6,314 138,584 98,166 934 97,232 144,898 6,314 138,584 2,436,834 3,221,430 784,596 1,275,102 2,010,507 735,405 4 4 2,192,100 2,192,100 (5,575,800) (5,575,800) - (1,831,300) (1,831,300) (3,383,700) (3,383,696) 4 (1,831,300) (1,831,300) - (946,866) (162,266) 784,600 (556,198) 179,207 735,405 4,103,066 4,103,066 - 1,855,498 1,855,498 - $ 3,156,200 $ 3,940,800 $ 784,600 $ 1,299,300 $ 2,034,705 $ 735,405 $ (162,266) $ 179,207 (12,694) (8,161) $ (174, 6601 $ 171,046 131 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2021 All Terrain Vehicle Park Amateur Sports Complex (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income 30,000 13,748 (16,252) 950,000 108,995 (841,005) Special assessments - - - - Miscellaneous - Total revenues 30,000 13,748 (16,252) 950,000 108,995 (841,005) Expenditures: Current: General government - - - - Public safety Physical environment Transportation Economic environment Human services - - - - - - Culture and recreation 70,420 850 69,570 185,000 183,330 1,670 Debt service - - - - - - Capital outlay - - - 56,541,628 15,075,475 41,466,153 Total expenditures 70,420 850 69,570 56,726,628 15,258,805 41,467,823 Excess (deficit) of revenues over (under) expenditures (40,420) 12,898 53,318 (55,776,628) (15,149,810) 40,626,818 Other financing sources (uses): Bondsissued - - - Payment to current refunding escrow Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds - - Transfers in 29,340,185 3,140,186 (26,199,999) Transfers out - - Total other financing sources (uses) 29,340,185 3,140,186 (26,199,999) Net change in fund balances (40,420) 12,898 53,318 (26,436,443) (12,009,624) 14,426,819 Fund balances at beginning of year 3,144,120 3,144,120 - 26,483,943 26,483,943 - Fund balances at end of year $ 3, 003,700 $ 3, 557,018 $ 53,318 $ 47,500 $ 14, 774,319 $ 14, 226,819 Reconciliation: Net change in fund balance, budgetary basis $ 12,898 $ (12,009,624) Change in fair value of investments (10,646) (86,003) Change in inventory Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ 2,252 $ (12,095,627) See accompanying independent auditors' report 132 Other Capital Projects (Budgetary Basis) Budget Actual Variance $ 14,700 $ 14,080 $ (620) 8,000 38,713 30,713 - 19,184 19,184 2,000 2,000 33,400 48,177 14,777 8,402 8,402 56,100 130,556 74,456 69,114 23,502 45,612 158,417 1,600 156,817 574,483 86,182 488,301 10,187,691 126,199 10,061,492 10,989,705 237,483 10,752,222 (10,933,605) (106,927) 10,826,678 214,326 214,474 148 (91,823) (23,811) 68,012 122,503 190,663 68,160 (10,811,102) 83,736 10,894,838 11,203,802 11,203,802 - $ 392,700 $ 11,287,538 $ 10,894,838 $ 83,736 (37,729) $ 46,007 133 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ NONMAJOR ENTERPRISE FUNDS AIRPORT AUTHORITY - To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT - To account for the provision of public transportation throughout the County. 135 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS September 30, 2021 ASSETS Current assets: Cash and investments Receivables: Trade, net Interest Leases Due from other funds Due from other governments Inventory Restricted assets: Cash and investments Due from other governments Total current assets Noncurrent assets: Receivables: Leases Capital assets: Land and nondepreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Wages payable Due to other governments Unearned revenues Compensated absences Total OPEB liability Net pension liability Liabilities payable from restricted assets: Accounts payable Retainage payable Due to other governments Refundable deposits Total current liabilities Noncurrent liabilities: Advances from other funds Compensated absences Total OPEB liability Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases Deferred inflows of resources related to OPEB Deferred inflows of resources related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for grants and other purposes Unrestricted Total net position See accompanying independent auditors' report Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds $ 6,747,751 $ 1,332,344 $ 8,080,095 84,243 15,515 99,758 7,250 1,828 9,078 193,694 - 193,694 - 12,120 12,120 4,895 - 4,895 85,691 85,691 217,372 247,910 465,282 3,445,224 3,380,078 6,825,302 10,786,120 4,989,795 15,775,915 388,552 - 388,552 5,085,846 6,252,193 11,338,039 43,148,779 17,894,029 61,042,808 48,623,177 24,146,222 72,769,399 59,409,297 29,136,017 88,545,314 3,931 1,614 5,545 180,296 75,553 255,849 184,227 77,167 261,394 144,284 413,802 558,086 49,592 20,664 70,256 5,269 16,744 22,013 21,817 - 21,817 64,530 26,175 90,705 3,309 1,034 4,343 1,572 561 2,133 1,419,162 810,094 2,229,256 389,790 - 389,790 - 115,560 115,560 9,826 100 9,926 2,109,151 1,404,734 3,513,885 2,110,893 - 2,110,893 16,133 6,544 22,677 60,273 18,835 79,108 410,757 156,426 567,183 2,598,056 181,805 2,779,861 4,707,207 1,586,539 6,293,746 561,956 - 561,956 5,148 1,807 6,955 432,161 188,872 621,033 999,265 190,679 1,189,944 46,548,479 24,143,372 70,691,851 1,843,818 2,702,234 4,546,052 5,494,755 590,360 6,085,115 $ 53,8 77,052 $ 27,435,966 $ 81.323,018 136 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For The Fiscal Year Ended September 30, 2021 Operating revenues: Charges for services Miscellaneous Total operating revenues Operating expenses: Personal services Operating Depreciation Total operating expenditures Operating loss Non -operating revenues: Operating grants and contributions Interest income Insurance reimbursement Interest expense Gain on disposal of capital assets Total non -operating revenues Loss before contributions and transfers Capital grants and contributions Transfers in Transfers out Total transfers and contributions Changes in net position Net position - beginning Net position - ending See accompanying independent auditors' report Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds $ 7,298,942 $ 902,359 $ 8,201,301 14,572 183,905 198,477 7,313,514 1,086,264 8,399,778 1,119,018 450,944 1,569,962 4,648,863 10,972,172 15,621,035 1,907,088 2,156,473 4,063,561 7,674,969 13,579,589 21,254,558 (361,455) (12,493,325) (12,854,780) 81,727 5,193,113 5,274,840 19,844 1,663 21,507 23,710 - 23,710 (5,958) - (5,958) (100,127) 7,533 (92,594) 19,196 5,202,309 5,221,505 (342,259) (7,291,016) (7,633,275) 5,912,022 2,577,127 8,489,149 1,426,500 5,936,110 7,362,610 (15,000) - (15,000) 7,323,522 8,513,237 15,836,759 6,981,263 1,222,221 8,203,484 46,905,789 26,213,745 73,119,534 $ 53,887,052 $ 27, 335,966 $ 81.323.018 137 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For The Fiscal Year Ended September 30, 2021 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Cash flows from operating activities: Cash received for services $ 7,305,223 $ 1,079,139 $ 8,384,362 Cash payments for goods and services (4,092,758) (8,147,931) (12,240,689) Cash payments to employees (1,132,204) (464,942) (1,597,146) Cash received from refundable deposits 50 50 Cash payments for interfund services (594,177) (2,867,889) (3,462,066) Net cash provided by (used for) operating activities 1,486,084 (10,401,573) (8,915,489) Cash flows from non -capital financing activities: Cash received from operating grants 27,291 4,372,053 4,399,344 Cash transfers from other funds 2,483,241 6,020,898 8,504,139 Cash transfers to other funds (23,300) (83,467) (106,767) Net cash provided by non -capital financing activities 2,487,232 10,309,484 12,796,716 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 23,710 - 23,710 Proceeds from disposal of capital assets 35,600 106,907 142,507 Proceeds from capital grants 4,934,235 2,883,203 7,817,438 Proceeds from leasing activities 187,813 - 187,813 Payments for capital acquisitions (6,361,239) (1,513,761) (7,875,000) Net cash provided by (used for) capital and related financing activities (1,179,881) 1,476,349 296,468 Cash flows from investing activities: Interest on investments 16,605 852 17,457 Net cash provided by investing activities 16,605 852 17,457 Net increase in cash and investments 2,810,040 1,385,112 4,195,152 Cash and investments, October 1, 2020 4,155,083 195,142 4,350,225 Cash and investments, September 30, 2021 $ 6,9 55,123 $ 1, 880,254 $ 8, 445,377 Cash and investments $ 6,747,751 $ 1,332,344 $ 8,080,095 Cash and investments - restricted 217,372 247,910 465,282 Cash and investments, September 30, 2021 $ 6,965,123 $ 1, 880,254 $ 8, 445,377 Operating loss $ (361,455) $ (12,493,325) $ (12,854,780) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation expense 1,907,088 2,156,473 4,063,561 Net changes in assets and liabilities: Trade receivable (2,040) (7,375) (9,415) Inventory 23,608 23,608 Accounts payable 133,818 (43,648) 90,170 Wages payable 5,655 1,764 7,419 Due to other governments (18) 250 232 Compensated absences 12,189 (3,752) 8,437 Refundable deposits - 50 50 Unearned revenue (6,233) - (6,233) Total OPEB liability 2,746 (4,465) (1,719) Deferred outflows of resources related to OPEB 1,259 394 1,653 Deferred inflows of resources related to OPEB 2,836 886 3,722 Net pension liability (518,059) (216,522) (734,581) Deferred outflows of resources related to pensions 77,443 29,686 107,129 Deferred inflows of resources related to pensions 402,745 178,011 580,756 Deferred inflows of resources related to leases (195,498) - (195,498) Total adjustments 1,847,539 2,091,752 3,939,291 Net cash provided by (used for) operating activities $ 1,486,084 S (10,401,573) $ (8,915,489) Non -cash investing, capital and financing activities: Change in fair value of investments $ (19,573) $ (5,683) $ (25,256) Contributed capital assets - 470,879 470,879 Change in capital related grant receivable 977,787 (776,955) 200,832 Capital related accounts payable 1,296,356 2,850 1,299,206 Capital related retainage payable 389,790 - 389,790 See accompanying independent auditors' report 138 INTERNAL SERVICE FUNDS SELF-INSURANCE — To account for the self-insurance costs of providing coverage for property, general and vehicle liability. To account for the provisions of health benefits to Board and participating constitutional officer employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. SHERIFF'S SELF-INSURANCE — To account for the provisions of health benefits to Sheriff employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. FLEET MANAGEMENT — To account for fuel, oil, lubricants, repairs and maintenance of County vehicles and the use of certain County owned vehicles by County employees. MOTOR POOL CAPITAL RECOVERY — To account for the accumulation of resources for the replacement of vehicles and heavy equipment for County governmental activities. INFORMATION TECHNOLOGY — To account for the costs of operating the County data processing facility and telephone communication system. 139 ASSETS Current assets: Cash and investments Receivables: Trade, net Interest Due from other funds Due from other governments Inventory Prepaid costs Total current assets Noncurrent assets: Capital assets: Land and nondepriciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Self-insurance claims payable Compensated absences Lease payable Total OPEB liability Net pension liability Total current liabilities Noncurrent liabilities: Self-insurance claims payable Compensated absences Lease payable Total OPEB liability Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB Deferred inflows of resources related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS September 30, 2021 Sheriffs Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total $ 43,473,006 $ 14,382,313 $ 2,107,056 $ 15,349,388 $ 4,458,774 $ 79,770,537 443,712 293,782 - - - 737,494 58,379 25,703 1,937 17,417 6,403 109,839 16,480 1,200,000 - - - 1,216,480 - - 14,868 3,702 18,570 - 465,285 - 465,285 2,383,443 - - 632,594 3,016,037 46,375,020 15,901,798 2,589,146 15,366,805 5,101,473 85,334,242 - - - 848,939 848,939 258,933 8,336,751 8,646,393 2,219,385 19,461,462 258,933 8,336,751 8,646,393 3,068,324 20,310,401 46,633,953 15,901,798 10,925,897 24,013,198 8,169,797 105,644,643 4,452 8,094 312 14,210 27,068 233,612 383,713 14,033 749,448 1,380,806 238,064 391,807 14,345 763,658 1,407,874 906,301 391,897 - 294,988 1,593,186 57,665 108,253 4,253 198,091 368,262 60,000 - - - 60,000 4,630 20,454 25,084 19,250 104,292 - 123,542 5,488,652 3,236,000 - 8,724,652 86,823 - 144,478 8,407 240,202 479,910 3,234 - - - 3,234 2,690 5,584 207 8,894 17,375 1,459 - 2,920 112 4,941 9,432 6,630,704 3,340,292 673,586 12,979 747,116 11,404,677 2,219,757 - - - 2,219,757 21,706 36,119 2,102 60,050 119,977 6,898 - - - 6,898 48,971 101,710 3,767 161,982 316,430 439,109 805,431 30,346 1,450,268 2,725,154 2,736,441 943,260 36,215 1,672,300 5,388,216 9,367,145 3,340,292 1,616,846 49,194 2,419,416 16,792,893 4,833 9,766 356 15,656 30,611 606,091 953,801 34,440 1,923,799 3,518,131 610,924 963,567 34,796 1,939,455 3,548,742 248,801 - 8,336,751 8,646,393 3,068,324 20,300,269 36,645,147 12,561,506 400,540 15,297,160 1,506,260 66,410,613 $ 36,893,948 $ 12,561,506 $ 8,737,291 $ 23,943,553 $ 4,574,584 $ 86,710,882 140 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2021 Sheriffs Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating revenues: Charges for services $ 55,929,601 $ 32,577,051 $ 9,517,067 $ 4,694,245 $ 11,424,850 $ 114,142,814 Miscellaneous 47,746 - 16,092 - 230 64,068 Total operating revenues 55,977,347 32,577,051 9,533,159 4,694,245 11,425,080 114,206,882 Operating expenses: Personal services 1,246,837 - 2,421,987 93,340 4,342,836 8,105,000 General and administrative 10,684,638 2,734,650 6,474,549 6,110 6,481,813 26,381,760 Insurance claims paid 47,284,659 30,089,222 - - - 77,373,881 Depreciation and amortization 51,951 - 618,785 2,423,439 920,444 4,014,619 Total operating expenditures 59,268,085 32,823,872 9,515,321 2,522,889 11,745,093 115,875,260 Operating income (loss) (3,290,738) (246,821) 17,838 2,171,356 (320,013) (1,668,378) Non -operating revenues: Operating grants and contributions - 362 - 3,597 3,959 Interest income 49,045 (5,408) 1,456 12,956 5,775 63,824 Insurance reimbursement 2,366,748 366 43,193 - 2,410,307 Interest expense (178) - - - (178) Gain on disposal of capital assets 22,575 333,250 1,236 357,061 Total non -operating revenues 2,415,615 (5,408) 24,759 389,399 10,608 2,834,973 Income before contributions and transfers (875,123) (252,229) 42,597 2,560,755 (309,405) 1,166,595 Capital grants and contributions 7,347 - - 7,347 Transfers in - 257,600 245,900 503,500 Transfers out (1,076,600) - (400,000) (1,476,600) Total transfers and contributions (1,076,600) - 7,347 257,600 (154,100) (965,753) Changes in net position (1,951,723) (252,229) 49,944 2,818,355 (463,505) 200,842 Net position - beginning 38,845,671 12,813,735 8,687,347 21,125,198 5,038,089 86,510,040 Net position - ending $ 36,893, 448 $ 12,561,506 $ 8,737,291 $ 23,943,553 $ 4,574,584 $ 86,710,882 See accompanying independent auditors' report 141 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2021 Sheriff's Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Cash flows from operating activities: Cash received from other funds for services $ 47,841,720 $ 30,500,000 $ 9,248,295 $ 4,694,245 $ 11,425,080 $ 103,709,340 Cash received from employees for services 7,397,821 - 306,499 - - 7,704,320 Cash received from retirees for services 532,828 1,368,557 - 1,901,385 Cash payments on behalf of retirees (1,216,913) - (1,216,913) Cash payments for goods and services (9,278,925) (2,729,528) (6,086,306) (610) (7,535,649) (25,631,018) Cash payments for self insurance claims (47,284,660) (30,255,007) - - (77,539,667) Cash payments to employees (1,350,468) (2,502,831) (93,296) (4,398,944) (8,345,539) Cash payments for interfund services (790,359) (318,856) (5,500) (166,298) (1,281,013) Net cash provided by (used for) operating activities (4,148,956) (1,115,978) 646,801 4,594,839 (675,811) (699,105) Cash flows from non -capital financing activities: Cash transfers from other funds 257,600 245,900 503,500 Cash transfers to other funds (1,076,600) - (400,000) (1,476,600) Net cash provided by (used for) non -capital financing activities (1,076,600) 257,600 (154,100) (973,100) Cash flows from capital and related financing activities: Receipts from insurance reimbursements 3,266,748 366 43,193 - 3,310,307 Proceeds from disposal of capital assets - 22,575 338,050 1,236 361,861 Payments for capital acquisitions (32,355) (223,693) (831,282) (1,076,426) (2,163,756) Principal payments on leases (3,184) (3,184) Interest and fiscal agent fees paid (178) (178) Net cash provided by (used for) capital and related financing activities 3,231,031 (200,752) (450,039) (1,075,190) 1,505,050 Cash flows from investing activities: Interest on investments 39,010 8,350 862 7,450 6,197 61,869 Net cash provided by investing activities 39,010 8,350 862 7,450 6,197 61,869 Net increase in cash and investments (1,955,515) (1,107,628) 446,911 4,409,850 (1,898,904) (105,286) Cash and investments, October 1, 2020 45,428,521 15,489,941 1,660,145 10,939,538 6,357,678 79,875,823 Cash and investments, September 30, 2021 $ 43,473,006 $ 14,382,313 $ 2,107,056 $ 15,349,388 $ 4,458,774 $ 79,770,537 (Continued) 142 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2021 Sheriff's Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating income (loss) $ (3,290,738) $ (246,821) $ 17,838 $ 2,171,356 $ (320,013) $ (1,668,378) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization expense 51,951 - 618,785 2,423,439 920,444 4,014,619 Net changes in assets and liabilities: Trade receivable (429,420) (28,275) - - - (457,695) Due from other funds (14,480) (700,000) 4,800 (709,680) Due from other governments 21,635 21,635 Inventory (96,757) (96,757) Prepaid costs (1,321,008) - (387,665) (1,708,673) Accounts payable 660,008 140,890 (832,469) (31,571) Wages payable (721) 7,356 414 29,307 36,356 Due to other funds 60,000 - - - 60,000 Due to other governments (559) 20,454 - - 19,895 Compensated absences (16,208) 13,556 3,315 12,311 12,974 Unearned revenue (6,131) 335,000 - - 328,869 Self-insurance claims payable 245,052 (475,882) - - (230,830) Total OPEB liability (5,119) (2,211) (82) (11,632) (19,044) Deferred outflows of resources related to OPEB 1,022 2,124 79 3,383 6,608 Deferred inflows of resources related to OPEB 2,304 4,786 177 7,621 14,888 Net pension liability (771,551) (1,174,551) (42,489) (2,223,926) (4,212,517) Deferred outflows of resources related to pensions 113,045 173,010 6,384 302,040 594,479 Deferred inflows of resources related to pensions 573,597 895,086 32,246 1,824,788 3,325,717 Total adjustments (858,218) (869,157) 628,963 2,423,483 (355,798) 969,273 Net cash provided (used) by operating activities $ (4,148,956) $ (1,115,978) $ 646,801 $ 4, 994,839 $ (675,811) $ (699,105) Non -cash investing, capital and financing activities: Change in fair value of investments $ (168,227) $ $ (5,627) $ (46,759) $ (18,828) $ (239,441) Contributed capital assets 7,347 7,347 Capital related accounts payable 10,132 10,132 See accompanying independent auditors' report 143 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ FIDUCIARY FUNDS CLERK OF COURTS CUSTODIAL FUND -To account for monies held in Trust by the Clerk of the Circuit Court prior to disbursement. SHERIFF CUSTODIAL FUND - To account for monies held in a custodial capacity by the Sheriff. TAX COLLECTOR CUSTODIAL FUND - To account for assets held by the Tax Collector prior to legal disbursement. 145 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS September 30, 2021 Clerk Tax of Courts Sheriff Collector Custodial Fund Custodial Fund Custodial Fund Total ASSETS Cash and investments $ 33,428,877 $ 595,658 $ 5,214,810 $ 39,239,345 Trade receivable, net - 5,165 20,765 25,930 Total assets $ 33,428,877 $ 600,823 $ 5,235,575 $ 39,265,275 LIABILITIES Due to other governments $ 7,383,291 $ 41,550 $ 5,146,006 $ 12,570,847 Due to individuals - 5,374 89,569 94,943 Total liabilities $ 7,383,291 $ 46,924 $ 5,235,575 $ 12,665,790 FIDUCIARY NET POSITION Restricted for individuals and governments $ 26,045,586 $ 553,899 $ - $ 26,599,485 See accompanying independent auditors' report 146 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS For The Fiscal Year Ended September 30, 2021 Clerk Tax of Courts Sheriff Collector Custodial Fund Custodial Fund Custodial Fund Total ADDITIONS: Contributions for individuals $ 34,880,183 $ 3,429,198 $ - $ 38,309,381 Fees collected for other governments 1,827,943 198,452 751,992,698 754,019,093 Miscellaneous - 10,439 130,244 140,683 Total additions 36,708,126 3,638,089 752,122,942 792,469,157 DEDUCTIONS: Beneficiary payments to individuals 24,646,701 3,432,116 - 28,078,817 Payment of fees to other governments 1,633,899 135,138 752,122,942 753,891,979 Payments to other entities - 63,683 - 63,683 Total deductions 26,280,600 3,630,937 752,122,942 782,034,479 Net increase in fiduciary net position 10,427,526 7,152 - 10,434,678 Fiduciary net position - beginning of year, as restated 15,618,060 546,747 16,164,807 Fiduciary net position - end of year $ 26,045,586 $ 553,899 $ $ 26,599,485 147 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ COMPONENT UNITS COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY - The authority was established for the purpose of facilitating projects that promote economic growth and opportunities for employment in Collier County. COLLIER COUNTY HEALTH FACILITIES AUTHORITY - The authority was established for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. COLLIER COUNTY HOUSING FINANCE AUTHORITY - The authority was established for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY - The authority was established for the purpose of assisting institutions of higher education in the construction, financing and refinancing of projects. 149 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS September 30, 2021 Industrial Health Housing Educational Development Facilities Finance Facilities Authority Authority Authority Authority Total ASSETS Cash and investments $ 131,388 $ 16,968 $ 234,045 $ 4,682 $ 387,083 Total assets $ 131,388 $ 16,968 $ 234,045 $ 4,682 $ 387,083 NET POSITION Net position - unrestricted $ 131,388 $ 16,968 $ 234,045 $ 4,682 $ 387,083 Total Net Position $ 131,388 $ 16,968 $ 234,045 $ 4,682 $ 387,083 See accompanying independent auditors' report 150 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS For The Fiscal Year Ended September 30, 2021 Revenues Fees, Fines and Operating Grants Functions/Programs Expenses Charges for Services and Contributions Industrial Development Authority $ 7,690 $ 61,500 $ Health Facilities Authority 4,884 - Housing Finance Authority 4,690 120,000 Educational Facilities Authority 5,392 - Total $ 22,656 $ 181,500 $ See accompanying independent auditors' report General revenues: Interest income Total general revenues Change in net position Net position - beginning Net position - ending Net (Expense) Revenue and Changes in Net Position Governmental Activities 25 $ 53,835 25 (4,859) 25 115,335 25 (5,367) 00 $ 158,944 158,944 228,139 $ 387,083 151 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ OTHER SUPPLEMENTAL INFORMATION Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. 153 COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL For The Fiscal Year Ended September 30, 2021 Amount Amount Received Expended in the in the 2021 2021 Source Fiscal Year Fiscal Year British Petroleum: Gulf Seafood and Tourism Promotional Fund $ $ Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2021 fiscal year. 154 ` 1. 400, A i a ■ l lb1 ■ twig I "r[• i 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non -accounting data. These schedules reflect social and economic data, and financial trends of Collier County, Florida. FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government's financial perfomance and wellbeing have changed over time. NetPosition by Component....................................................................................................................................... 158 Changein Net Position............................................................................................................................................... 160 Governmental Activities Tax Revenues by Source.................................................................................................. 162 Fund Balances of Governmental Funds.................................................................................................................... 163 Changes in Fund Balances of Governmental Funds...............................................................................................164 REVENUE CAPACITY These schedules contain trend information to help the reader assess the County's most significant local revenue source, Property Tax. Assessed Value and Estimated Actual Value of Taxable Property.......................................................................166 Property Tax Rates — All Direct and Overlapping Governments............................................................................168 PrincipalTaxpayers County-Wide.............................................................................................................................. 169 Property Tax Levies and Collections......................................................................................................................... 170 DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Ratios of Outstanding Debt by Type.......................................................................................................................... 171 LegalDebt Margin Information.................................................................................................................................. 172 Direct, Overlapping and Underlapping Governmental Activities Debt...................................................................172 Pledged -Revenue Coverage....................................................................................................................................... 173 DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place. Demographic and Economic Statistics.................................................................................................................... 174 PrincipalEmployers..................................................................................................................................................... 175 OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Budgeted Full -Time Equivalent County Employees by Function...........................................................................176 Operating Indicators by Function.............................................................................................................................. 177 Capital Asset Statistics by Function......................................................................................................................... 178 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 157 COLLIER COUNTY, FLORIDA NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2021 2020 2019 2018 2017 2016 Governmental Activities: Net investment in capital assets $ 1,396,962 $ 1,331,163 $ 1,302,980 $ 1,287,184 $ 1,257,685 $ 1,225,520 Restricted 660,442 559,050 478,719 362,045 336,922 327,968 Unrestricted 42,882 (23,652) (32,158) (29,328) (24,011) 2,478 Total governmental activities net position $ 2,100,286 $ 1,866,561 $ 1,749,541 $ 1,619,901 $ 1,570,596 $ 1,555,966 Business -type Activities: Net investment in capital assets $ 846,257 $ 818,092 $ 777,814 $ 763,259 $ 741,912 $ 723,000 Restricted 50,827 42,036 39,371 31,982 32,619 35,760 Unrestricted 241,239 215,623 205,756 143,198 168,602 169,287 Total business -type activities net position $ 1,138,323 $ 1,075,751 $ 1,022,941 $ 938,439 $ 943,133 $ 928,047 Primary Government: Net investment in capital assets $ 2,243,219 $ 2,149,255 $ 2,080,794 $ 2,050,443 $ 1,999,597 $ 1,948,520 Restricted 711,269 601,086 518,090 394,027 369,541 363,728 Unrestricted 284,121 191,971 173,598 113,870 144,591 171,765 Total primary government net position $ 3,238,609 $ 2,942,312 $ 2,772,482 $ 2,558,340 $ 2,513,729 $ 2,484,013 158 Fiscal Year 2015 2014 2013 2012 $ 1,217,176 $ 1,207,751 $ 1,198,971 $ 1,187,298 298,360 223,526 221,501 226,934 13,109 169,633 152,790 147,188 $ 1,528,645 $ 1,600,910 $ 1,573,262 $ 1,561,420 $ 714,239 $ 705,065 $ 668,160 $ 650,684 31,511 29,749 34,379 34,199 165,128 185,420 196,050 194,389 $ 910,878 $ 920,234 $ 898,589 $ 879,272 $ 1,931,415 $ 1,912,816 $ 1,867,131 $ 1,837,982 329,871 253,275 255,880 261,133 178,237 355,053 348,840 341,577 $ 2,439,523 $ 2,521,144 $ 2,471,851 $ 2,440,692 159 CHANGE IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2021 2020 2019 2018 2017 2016 Expenses Governmental activities: General government $ 129,810 $ 135,978 $ 134,018 $ 126,920 $ 108,388 $ 104,188 Public safety 237,435 266,736 254,341 223,177 225,360 205,347 Transportation 88,679 89,954 88,200 83,386 75,589 70,560 Culture and recreation 59,348 56,900 59,401 58,042 51,889 49,526 Other activities 114,798 54,967 52,500 64,822 41,899 48,256 Interest on long-term debt 14,601 12,321 13,223 9,736 11,294 12,077 Total governmental activities expenses $ 644,671 $ 616,856 $ 601,683 $ 566,083 $ 514,419 $ 489,954 Business -type activities: Water and Sewer $ 166,035 $ 155,368 $ 153,602 $ 144,113 $ 144,850 $ 130,792 Solid Waste 51,896 49,158 47,529 106,823 43,664 39,271 Emergency Medical Services 27,782 33,761 34,871 32,275 28,644 26,529 Airport Authority 7,805 6,168 6,361 5,533 4,905 4,402 Mass Transit 13,638 13,716 13,090 12,680 11,354 11,333 Total business -type activities expenses 267,156 258,171 255,453 301,424 233,417 212,327 Total primary government expenses S 111.827 $ 775.027 $ 557.136 S 667.507 $ 447.836 $ 002,281 Program Revenues Governmental activities: Charges for services: General government $ 40,237 $ 39,204 $ 39,981 $ 37,703 $ 33,377 $ 35,184 Public safety 29,790 25,037 26,137 28,040 24,240 25,276 Transportation 1,897 1,425 1,206 2,111 2,024 4,880 Culture and recreation 7,617 5,055 7,808 7,886 8,192 8,393 Other activities 3,566 1,959 1,862 2,235 1,467 1,230 Operating Grants and Contributions 98,708 34,025 30,313 29,549 26,539 26,387 Capital Grants and Contributions 50,311 47,343 56,268 47,645 38,124 36,818 Total governmental activities program revenues 232,126 154,048 163,575 155,169 133,963 138,168 Business -type activities: Charges for services: Water and Sewer $ 168,017 $ 162,702 $ 155,839 $ 145,757 $ 135,045 $ 123,856 Solid Waste 59,078 53,885 51,928 50,449 45,209 41,918 Emergency Medical Services 14,206 13,069 13,854 12,836 11,812 13,161 Airport Authority 7,242 4,959 4,639 3,951 3,734 3,073 Mass Transit 1,086 978 1,203 1,129 1,267 1,225 Operating Grants and Contributions 26,394 11,548 46,592 16,426 5,025 4,435 Capital Grants and Contributions 42,974 42,099 37,888 38,670 26,993 25,367 Total business -type activities program revenues 318,997 289,240 311,943 269,218 229,085 213,035 Total primary government program revenues 551,123 443,288 475,518 424,387 363,048 351,203 Net (expense)/revenue: Governmental activities (412,545) (462,808) (438,108) (410,914) (380,456) (351,786) Business -type activities 51,841 31,069 56,490 (32,206) (4,332) 708 Total primary government net expense $ (360,704) S (431,739) $ (381,618) $ (443,120) $ (384,788) $ (351,078) General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property taxes $ 400,607 $ 376,140 $ 356,099 $ 337,447 $ 312,633 $ 281,136 Gas taxes 22,920 21,005 24,485 22,749 21,799 20,478 Sales taxes 55,732 45,228 49,550 44,093 41,799 40,659 Infrastructure sales tax 99,588 81,735 60,787 - - - Tourist taxes 36,192 26,062 31,653 27,962 21,961 21,838 Other taxes 6,289 6,438 7,140 6,914 7,478 7,280 State revenue sharing 13,776 12,343 13,194 12,564 11,602 11,100 Interest income 1,639 14,336 24,113 6,857 3,574 4,891 Miscellaneous 18,407 11,523 17,594 18,121 9,714 5,976 Transfers, net (8,880) (15,020) (16,837) (16,487) (14,793) (14,250) Total governmental activities $ 646,270 S 579,790 S 567,778 S 460.220 $ 415.767 $ 379,108 Business -type Activities: Interest income $ 394 $ 5,870 $ 9,699 $ 2,602 $ 1,379 $ 2,011 Miscellaneous 1,457 851 1,476 8,423 126 200 Transfers, net 8,880 15,020 16,837 16,487 14,793 14,250 Total business -type activities 10,731 21,741 28,012 27,512 16,298 16,461 Total primary government S 557.001 S 001.531 S 995,790 S 887.732 S 332.065 S 995.569 Change in Net Position Governmental activities $ 233,725 $ 116,982 $ 129,670 $ 49,306 $ 35,311 $ 27,322 Business -type activities 62,572 52,810 84,502 (4,694) 11,966 17,169 Total primary government S 296,297 S 169,792 S 214,172 S 44,612 $ 47,277 S 44,491 160 Fiscal Year 2015 2014 2013 2012 $ 93,644 $ 92,176 $ 95,941 $ 94,227 174,874 177,267 171,210 165,782 70,296 71,623 69,275 73,000 45,117 41,630 41,453 42,507 45,621 39,171 43,067 51,057 12,912 12,674 16,129 16,412 $ 442,464 $ 434,541 $ 437,075 $ 442,985 $ 122,858 $ 112,643 $ 114,041 $ 102,642 36,411 33,787 32,760 29,618 24,094 23,208 21,545 21,792 4,771 3,764 4,439 4,601 10,416 10,306 10,111 9,925 198,550 183,708 182,896 168,578 $ 641,014 $ 618,249 $ 619,971 $ 611,563 $ 34,240 $ 34,662 $ 36,080 $ 31,388 25,227 21,765 19,735 16,743 1,094 959 1,045 880 8,685 7,943 8,416 9,126 4,237 2,661 3,667 4,941 35,521 31,444 20,921 22,892 29,986 28,945 28,280 20,279 138,990 128,379 118,144 106,249 $ 116,645 $ 107,924 $ 109,176 $ 103,042 39,121 35,368 34,585 34,275 12,327 9,922 10,335 10,249 3,350 2,589 3,021 2,805 1,719 1,641 1,450 1,360 5,142 3,077 3,914 2,948 21,165 30,662 24,953 17,818 199,469 191,183 187,434 172,497 338,459 319,562 305,578 278,746 (303,474) (306,162) (318,931) (336,736) 919 7,475 4,538 3,919 S (302,5551 $(298.687) S (314,393) S (332.817) $ 259,779 $ 244,404 $ 249,352 $ 248,232 19,547 18,556 18,229 18,525 38,573 35,786 32,168 29,713 21,188 19,137 16,183 14,898 7,322 7,840 9,403 9,997 10,589 9,657 8,792 8,233 5,069 2,599 1,496 2,430 17,510 13,333 9,063 7,397 (14,192) (13,185) (13,912) (14,447) $ 365,385 $ 338,127 $ 330,774 $ 324,978 $ 2,209 $ 1,301 $ 712 $ 1,106 94 68 154 82 14,192 13,184 13,912 14,447 16,495 14,553 14,778 15,635 S 381,880 S 352,680 S 345.552 S 340,613 $ 61,911 $ 31,965 $ 11,843 $ (11,758) 17,414 22,028 19,316 19,554 S 79,325 S 53,993 $ 31.159 $ 7,796 161 GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Property Gas Sales Infrastructure Tourist Year Tax Tax Tax Sales Tax Tax 2012 $ 248,232 $ 18,525 $ 29,713 $ $ 14,898 $ 2013 249,352 18,229 32,168 16,183 2014 244,404 18,556 35,786 19,137 2015 259,779 19,547 38,573 21,188 2016 281,136 20,478 40,659 21,838 2017 312,633 21,799 41,799 21,961 2018 337,447 22,749 44,093 27,962 2019 356,099 24,485 49,550 60,787 31,653 2020 376,140 21,005 45,228 81,735 26,062 2021 400,607 22,920 55,732 99,588 36,192 Other Taxes Total 9,997 $ 321,365 9,403 325,335 7,840 325,723 7,322 346,409 7,280 371,391 7,478 405,670 6,914 439,165 7,140 529,714 6,438 556,608 6,289 621,328 162 COLLIER COUNTY, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 General fund Nonspendable $ 2,785 $ 2,779 $ 2,383 $ 2,645 $ 3,386 $ 3,675 $ 3,546 $ 19,843 $ 15,744 $ 12,914 Restricted 580 1,087 461 306 2,440 264 345 125 96 110 Assigned 12,281 11,664 1,115 1,736 1,598 1,674 1,299 850 813 952 Unassigned 117,116 104,299 103,707 77,342 54,805 53,961 55,002 57,781 56,497 57,091 Total general fund $ 132,762 $ 1 99,829 $ 1 77,666 $ 82,029 $ 22,229 $ 59,574 $ 00,192 $ 88,599 $ 33,150 $ 11,067 All other governmental funds Nonspendable $ 6,623 $ 3,490 $ 2,887 $ 8,135 $ 2,385 $ 3,055 $ 3,112 $ 53,544 $ 46,049 $ 42,238 Restricted 722,297 560,480 522,311 354,514 328,447 324,334 293,281 242,981 223,700 209,352 Committed 44,582 41,517 40,355 34,788 32,759 26,069 25,663 27,349 29,810 47,406 Assigned 84,392 52,613 31,977 21,129 33,822 28,644 30,800 28,391 36,364 38,533 Unassigned - - - (246) - (89) (514) (62,085) (55,212) (48,944) Total all other governmental funds $ 857,894 $ 658,100 $ 597,530 $ 418,320 $ 397,413 $ 382,013 $ 352,342 $ 290,180 $ 280,711 $ 288,585 163 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest Redemption of debt Payment to refunding bond escrow Other fiscal charges Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Payment to current refunding escrow Premiums on bonds issued Notes issued Payment to refunding escrow Leases Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year 2021 2020 2019 2018 2017 2016 $ 556,387 $ 503,593 $ 471,127 $ 386,814 $ 355,885 $ 322,915 79,468 68,989 78,182 75,102 59,217 61,033 174,230 96,684 100,191 92,206 86,656 83,949 38,570 34,959 37,255 36,981 34,008 38,362 2,567 2,334 2,491 2,375 2,263 2,708 1,575 13,178 22,046 6,133 3,233 4,440 5,610 5,619 7,452 4,789 4,350 3,746 11,851 6,799 5,566 4,527 8,705 6,600 870,258 732,155 724,310 608,927 554,317 523,753 109,729 108,008 103,445 101,198 89,193 84,599 226,655 219,808 213,829 198,097 197,762 177,375 21,050 20,986 23,728 31,994 12,465 15,283 53,788 53,316 45,245 45,904 41,003 36,011 13,824 9,395 8,378 9,942 8,199 11,061 77,191 20,242 17,005 15,849 15,058 14,038 49,493 46,246 48,793 47,671 42,889 40,886 31,084 26,507 23,127 21,864 21,439 20,743 13,151 12,731 11,521 10,165 11,908 12,713 - - - - 5,588 - 1,084 21 801 128 48 19 164,344 129,056 107,881 82,871 80,495 67,198 761,393 646,316 603,753 565,683 526,047 479,926 108,865 85,839 120,557 43,244 28,270 43,827 99,175 62,965 (10,000) - 16,925 3,238 - - - 5,293 - - (44,525) - 2,658 358 - - - - 28,060 55,713 - - 337 712 376 1,065 155 306 4,157 2,104 6,416 3,762 339 796 236,502 144,991 140,633 114,358 117,833 121,654 (246,785) (161,271) (157,399) (132,910) (133,834) (137,530) 102,969 (13,106) 84,289 (2,537) (10,214) (14,774) $ 211,834 $ 72,733 $ 004,847 $ 40,707 $ 18,056 $ 29,053 7.59 % 7.59 6.99% 6.63% 7.48% 8.11% 164 Fiscal Year 2015 2014 2013 2012 $ 300,341 $ 282,315 $ 285,765 $ 284,124 51,319 40,631 35,168 30,436 92,818 89,392 83,667 79,402 37,172 35,149 32,435 30,739 2,866 3,252 3,712 4,205 4,606 2,393 1,406 2,197 3,132 2,922 2,924 3,035 16,063 11,553 4,833 4,664 508,317 467,607 449,910 438,802 78,147 73,739 75,725 73,812 167,788 163,169 153,566 151,858 16,157 11,276 13,790 22,870 36,992 38,789 37,170 42,176 9,159 9,265 14,436 14,393 13,151 12,367 12,254 10,988 37,523 34,114 33,744 34,253 20,039 18,510 25,125 31,602 13,555 14,177 17,565 18,149 - 2,086 132 - 21 173 2,165 1,082 62,186 63,613 61,278 49,406 454,718 441,278 446,950 450,589 53,599 26,329 2,960 (11,787) 89,780 73,805 131,525 2,082 17,192 - (89,622) (73,747) (150,550) 1,915 236 595 314 233 313 379 316 300 270 196,026 97,854 90,637 91,524 (208,760) (110,052) (102,061) (103,738) (9,845) (11,410) (8,751) (13,228) $ 43,754 $ 14,919 $ (5,791) $ (25,015) 8.56% 8.66% 11.07% 12.40% 165 COLLIER COUNTY, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Year Government Ended Residential Commercial Institutional and Industrial September 30 Property Property Other Property Property 2012 $ 55,452,450 $ 3,793,589 $ 4,339,737 $ 633,463 2013 55,738,290 3,785,006 4,337,007 609,058 2014 57,656,527 3,912,768 4,523,093 629,143 2015 61,457,718 4,082,445 4,692,490 651,646 2016 66,559,709 4,377,974 5,067,190 682,762 2017 73,334,846 4,681,110 5,252,880 763,216 2018 79,459,537 5,047,802 5,438,701 841,128 2019 83,819,751 5,360,190 5,681,034 923,980 2020 87,951,024 6,001,743 5,936,391 1,073,086 2021 93,113,447 6,691,606 6,257,252 1,195,303 Agricultural Property Personal Property $ 252,730 $ 2,253,274 261,964 2,240,098 266,888 2,200,895 268,161 2,186,145 282,725 2,353,841 282,376 2,342,953 280,507 2,448,008 283,625 2,534,892 282,370 2,619,748 276,441 2,755,010 Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year. (1) The basis of assessed value required by the state is 100% of actual value including tax exemptions. Source: Property Appraiser Recapitulation Report 166 Centrally Assessed Property Less: Tax Exempt Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value Assessed Value as a Percentage of Actual Value(') $ 187 $ 8,513,638 $ 58,211,792 4.4149 $ 66,725,430 100% 184 8,473,811 58,497,796 4.4126 66,971,607 100% 152 8,539,822 60,649,644 4.1592 69,189,466 100% 195 8,741,753 64,597,047 4.1582 73,338,800 100% 134 9,235,508 70,088,827 4.1572 79,324,335 100% 211 9,537,260 77,120,332 4.2029 86,657,592 100% 246 9,905,942 83,609,987 4.1851 93,515,929 100% 244 10,317,449 88,286,267 4.1827 98,603,716 100 232 10,676,611 93,187,983 4.1876 103,864,594 100% 221 11,121,148 99,168,132 4.1906 110,289,280 100% 167 COLLIER COUNTY, FLORIDA PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (unaudited) Collier County Other Special Debt Capital Fiscal General Revenue Service Project Collier County Independent Year Fund Funds Funds Funds Total School District Districts Total 2012 3.5645 0.7627 0.0877 0.0000 4.4149 5.5270 1.2202 11.1621 2013 3.5645 0.7555 0.0926 0.0000 4.4126 5.5760 1.2395 11.2281 2014 3.5645 0.5873 0.0074 0.0000 4.1592 5.6900 1.2228 11.0720 2015 3.5645 0.5860 0.0077 0.0000 4.1582 5.5800 1.1853 10.9235 2016 3.5645 0.5856 0.0071 0.0000 4.1572 5.4800 1.1331 10.7703 2017 3.5645 0.6323 0.0061 0.0000 4.2029 5.2450 1.1138 10.5617 2018 3.5645 0.6145 0.0061 0.0000 4.1851 5.1220 1.2375 10.5446 2019 3.5645 0.6122 0.0060 0.0000 4.1827 5.0490 1.2331 10.4648 2020 3.5645 0.6172 0.0059 0.0000 4.1876 5.0830 1.2272 10.4978 2021 3.5645 0.6202 0.0058 0.0001 4.1906 5.0160 1.2262 10.4328 Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year. Sources: Property Appraiser Recapitulation Report Collier County Adopted Budget 168 COLLIER COUNTY, FLORIDA PRINCIPAL TAXPAYERS COUNTY -WIDE 2021 TAX ROLL (unaudited) 2021 Property Taxes Owner/Taxpayer Levied HHR Naples, LLC $ 1,705,222 Marco Hotel, LLC 1,652,947 The Moorings, Inc. 1,452,058 PR Mercato, LLP 1,307,545 Res Florida 1250 Holdings, LLC 1,116,690 Continental 422 Fund, LLC 798,671 IPXI MF Inspria Investors, LLC 747,149 CC -Naples, Inc. 705,920 Legacy Naples, LLC 692,452 Westbury Props, Inc. 685,365 Florida Power & Light Company - City National Bank of Miami Century Link Lee County Electric Co -Op, Inc. Naples HMA, Inc. Wal-Mart Stores East, LP Coastland Center, LLC Collier HMA, Inc. - Total $ 10,864,019 Total Property Taxes Levied - County -Wide $ 1,125,875,026 Amounts for taxpayers with similar names have not been combined. Sources: Property Appraiser's taxpayer listing in order of taxes levied. Property Appraiser Recapitulation Report. Rank 1 2 3 4 5 6 7 8 9 10 2012 Percent of Total Taxes Levied Property Taxes Levied Rank Percent of Total Taxes Levied 0.15% $ 1,461,259 2 0.21 % 0.15% - 0.00% 0.13% - 0.00% 0.11 % 689,525 8 0.10% 0.10% - 0.00% 0.07 % 0.00% 0.07% 0.00% 0.06 % 0.00% 0.06 % 0.00% 0.06% - 0.00% 0.00% 2,569,278 1 0.37% 0.00% 941,776 3 0.14% 0.00% 888,421 4 0.13% 0.00% 881,968 5 0.13% 0.00% 723,779 6 0.10% 0.00% 697,905 7 0.10% 0.00% 672,473 9 0.10% 0.00% 667,824 10 0.10% 0.96% $ 10,194,208 1.48% $ 694,918,682 169 COLLIER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Year Total County Tax Collected within the Total County Tax Ended Levy for Fiscal Year of the Levy Levy Cost September 30 Population (') Fiscal Year Amount Percentage of Levy Per Person 2012 323,785 $ 257,189 $ 247,749 96.1 % $ 794 2013 329,849 258,650 248,648 96.3 % 784 2014 339,642 252,323 243,084 96.5% 743 2015 348,777 268,604 259,121 96.5% 770 2016 353,936 291,369 281,114 96.4% 823 2017 360,846 324,123 312,507 96.4% 898 2018 368,534 349,928 337,361 96.4% 950 2019 376,086 369,258 356,075 96.4% 982 2020 383,166 390,115 376,086 96.4% 1,018 2021 389,754 415,562 400,531 96.4% 1,106 Property taxes levied apply only to General, Special Revenue, Debt Service Funds and Capital Projects Funds Property tax levies are based on assessed values as of January 1 st and become due and payable on November 1 st of each year. A four percent discount is allowed if the taxes are paid by November 30, with the discount declining by one percent each month thereafter. Accordingly, taxes collected are not 100 percent of the amount levied. Taxes become delinquent on April 1 st of each year and tax certificates for the unpaid taxes must be sold no later than June 1 st of each year. Property taxes receivable and a corresponding reserve for uncollectible property taxes are not included in the financial statements as there are no significant delinquent taxes as of September 30, 2021. Sources: (1) www.colliergov.net/your-government/divisions-a-e/comprehensive-planning/population-and-demographics (2) Property Appraiser Recapitulation Report 170 COLLIER COUNTY, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities Business-tvoe Activities Direct Limited Direct Placement General Placement Other Loans Loans and Other Loans Total Percentage Fiscal Obligation Revenue Loans and and Leases Revenue Notes Payable and Leases Primary of Personal Per Year Bonds(') BondsM Notes Payable (3) Bonds') (4) (3) Government Income(2) Capita(2) 2012 $ 9,994 $ 390,585 $ 10,224 $ 412 $ 132,013 $ 6,970 $ 92,613 $ 642,811 3.31% $ 1,988 2013 4,664 373,371 7,923 323 83,498 23,067 111,827 604,673 3.01 % 1,832 2014 4,223 277,885 96,861 230 78,470 17,100 114,235 589,004 2.67% 1,732 2015 3,369 259,563 95,116 1,519 60,976 28,714 105,549 554,806 2.26% 1,592 2016 2,941 246,135 87,360 937 59,954 24,727 96,954 519,008 2.01 % 1,463 2017 2,499 232,147 79,227 316 59,351 108,278 931 482,749 1.57% 1,336 2018 2,037 175,975 102,930 236 58,748 129,141 587 469,654 1.51% 1,342 2019 1,560 226,896 145,952 153 139,382 113,576 239 627,758 1.79% 1,670 2020 1,063 209,822 136,549 7,311 138,524 98,165 957 592,391 1.55% 1,547 2021 - 309,856 111,582 7,425 297,456 82,476 703 809,498 1.67% 1,749 (1) Amounts include the unamortized premium. (2) See the Schedule of Demographic and Economic Statistics for personal income and population data (3) Collier County adopted GASB Statement No. 87, Leases in the 2020 fiscal year. (4) Does not include private development note payable 171 COLLIER COUNTY, FLORIDA LEGAL DEBT MARGIN INFORMATION As Of September 30, 2021 (unaudited) The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. DIRECT, OVERLAPPING AND UNDERLYING DEBT As of September 30, 2021 (unaudited) Estimated Estimated Percentage Share of Debt Applicable Based Overlapping Outstanding on Population(-) Debt Direct Debt: Governmental Activities Gas Tax Revenue Bonds (1) $ 8,097,178 100.00% $ 8,097,178 Special Obligation Revenue Bonds (1,3) 239,924,938 100.00% 239,924,938 Tourist Development Tax Revenue Bonds (1) 61,833,513 100.00°i 61,833,513 Direct Placement Loans and Notes Payable (3) 111,582,000 100.00% 111,582,000 Leases (3) 7,425,398 100.00% 7,425,398 Total Governmental Activities Direct Debt 428,863,027 428,863,027 Overlapping Debt: N/A 0.00 i Underlying Debt: City of Naples (4) 2,883,166 5.58 i 160,881 City of Marco Island (5) 17,349,444 4.52°i 784,195 City of Everglades (6) - 0.00 i - Subtotal, Underlying Debt 20,232,610 10.10 i 945,076 Total Direct, Overlapping and Underlying Debt $ 449,095,637 $ 429,808,103 (1) Amounts include the unamortized premium. (2) Population numbers obtained from www.worldpopulationreview.com/states/cities/florida (3) Totals consist of more than one issuance. (4) Governmental activities debt outstanding amount obtained from the City of Naples. (5) Governmental activities debt outstanding amount obtained from the City of Marco Island. (6) Governmental activities debt outstanding amount obtained from the City of Everglades. 172 Governmental Activities: COLLIER COUNTY, FLORIDA PLEDGED -REVENUE COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Gas Tax Bonds and Direct Placement Loans Fiscal Year Gas Tax Collections Debt Service Principal Interest Coverage(') 2012 $ 18,525 $ 7,505 $ 7,077 1.27 2013 18,229 7,855 6,453 1.27 2014 18,556 8,040 4,018 1.54 2015 19,547 9,440 3,697 1.49 2016 20,478 9,900 3,242 1.56 2017 21,799 10,195 2,939 1.66 2018 22,749 10,510 2,737 1.72 2019 22,709 10,830 2,542 1.70 2020 21,005 11,170 2,178 1.57 2021 22,920 11,515 1,802 1.72 Business -type Activities: Special Obligation Bonds and Direct Placement Loans(") Legally Available Non -Ad Valorem Debt Service Collections(2) Principal Interest CoverageM $ 82,866 $ 4,265 $ 4,265 9.71 86,640 9,695 7,249 5.11 91,043 9,145 9,674 4.84 102,375 8,885 9,426 5.59 107,268 9,280 9,020 5.86 108,577 9,705 8,591 5.93 118,725 10,258 7,012 6.87 125,162 10,865 7,191 6.93 124,638 11,362 7,244 6.70 129,594 11,841 7,689 6.64 Fiscal Year Water/ Sewer Charges and Otheri*i Water and Sewer Revenue Bonds and Direct Placement Loans Less: Net Operating Available Debt Service Expenses(5) Revenue Principal Interest CoverageM 2012 $ 104,164 $ 58,155 $ 46,009 $ 5,189 $ 6,494 3.94 2013 105,682 68,916 36,766 5,422 6,268 3.15 2014 109,514 69,710 39,804 5,967 3,986 4.00 2015 118,066 74,344 43,722 6,073 3,639 4.50 2016 125,456 84,474 40,982 3,986 2,841 6.00 2017 136,064 97,904 38,160 3,902 2,818 5.68 2018 155,847 90,507 65,340 5,528 3,050 7.62 2019 163,653 98,281 65,372 6,261 4,091 6.31 2020 169,444 100,866 68,578 6,384 6,189 5.45 2021 170,927 106,913 64,014 6,500 6,066 5.09 (') Gas Tax Collections divided by annual total debt service requirements for the respective fiscal year. (2)The revenues that comprise the legally available non -ad valorem revenues are defined by bond documents; these revenues include Sales Tax and certain impact fees and averaged over two fiscal years. (3) Legally Available Non -Ad Valorem Collections divided by annual total debt service requirements for the respective fiscal year. (4) Operating revenues plus other income; certain interest income, gain on disposal of assets, capital grants and contributions and transfers in are not included. MTotal operating expenses, excluding depreciation and amortization; loss on disposal of assets, interest expense and transfers out are not included. 173 COLLIER COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years (unaudited) Per Capita Fiscal Personal Personal Median School Unemployment Year Population(') Income(z) Income Age(') Enrollment() Rate(5) 2012 323,785 $ 19,446,631,000 $ 60,060 46.9 43,238 9.3% 2013 329,849 20,075,468,000 60,863 47.1 43,789 7.2% 2014 339,642 22,033,344,000 64,872 47.4 44,415 6.3% 2015 348,777 24,571,667,000 70,451 47.5 45,228 5.2% 2016 353,936 25,763,656,000 72,792 47.9 47,289 4.9% 2017 360,846 30,708,249,000 85,101 48.5 49,394 3.6% 2018 368,534 32,749,753,000 88,865 49.7 47,934 3.3% 2019 376,086 35,080,466,000 93,278 50.3 48,441 3.2% 2020 383,166 38,252,405,000 99,832 50.8 47,048 5.7% 2021 389,754 40,816,238,000 104,723 50.8 48,838 3.6% Sources: (1) colliercountyfl.gov/government/growth-management/divisions/planning-and-zoning-division/comprehensive-planning-section (2) fred.stlouisfed.org/series/P112021 (3) fred.stlouisfed.org/series/801002001E012021 (4) collierschools.com/Page/349 (5) floridajobs.org 174 COLLIER COUNTY, FLORIDA PRINCIPAL EMPLOYERS (unaudited) Employer Employees 2021 Rank Percent of Total County Employment Employees 2012 Rank Percent of Total County Employment Collier County Public Schools 5,785 1 3.89% 5,451 1 5.16% NCH Healthcare System 4,315 2 2.90% 3,007 2 2.85% Publix Supermarkets 3,041 3 2.04% 2,214 3 2.10% Arthex, Inc. 2,856 4 1.92% Collier County Government (excl. Sheriff) 2,477 5 1.66°i 2,184 4 2.07°i Collier County Sheriffs Office 1,440 6 0.97% 1,387 6 1.31 i Ritz Carlton Hotel 1,100 7 0.74% Seminole Casino - Immokalee 900 8 0.60% JW Marriott- Marco Island 862 9 0.58% 743 7 0.70% City of Naples 488 10 0.33% Other employers 125,590 84.37% 90,599 85.81 i Totals 148,854 100.00% 105,585 100.00% Sources: Southwest Florida Economic Development Alliance Collier County Public Schools NCH Healthcare System Publix Corporate Office Arthrex, Inc. 175 Function: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Water and Sewer Solid Waste Emergency Medical Services Airport Authority Collier Area Transit Total COLLIER COUNTY, FLORIDA BUDGETED FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1) Last Ten Fiscal Years (unaudited) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 1,374 1,366 1,342 1,299 1,351 1,262 1,217 1,216 1,203 1,222 1,111 1,100 1,080 1,089 1,112 1,124 1,096 1,072 1,061 1,061 94 90 80 73 73 70 69 67 67 69 233 235 228 224 219 211 192 187 187 199 26 27 31 30 29 26 27 28 26 28 70 61 58 58 58 56 56 53 51 50 370 340 347 337 324 304 298 294 289 293 434 438 436 414 410 384 342 340 342 344 45 44 45 43 31 28 27 28 29 27 202 202 202 199 194 193 193 172 172 172 15 15 15 15 15 15 14 14 16 16 5 5 5 5 4 4 3 3 3 3 3,979 3,923 3,869 3,786 3,820 3,677 3,534 3,474 3,446 3,484 (') Includes the Board of County Commissioners and the Constitutional Officers 176 COLLIER COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Function: Police: Physical arrests 6,519 6,227 9,072 9,266 8,269 9,359 9,347 11,277 11,277 11,297 Parking violations 362 333 817 894 1068 867 931 964 1,182 1,175 Traffic violations 24,674 22,370 26,773 17,157 15,473 14,462 16,355 19,868 22,211 19,237 Fire: Fires reported ** ** ** ** ** 31 82 37 52 46 Emergency responses (exclude fires) ** ** ** ** ** 839 1,093 1,080 1,024 764 Number of calls answered 886 680 870 804 795 870 1,175 1,117 1,076 810 Transportation: Collier Area Transit ridership 649,391 723,423 913,569 944,931 996,687 1,082,519 1,177,029 1,181,530 1,361,294 1,207,866 Street resurfacing (lane miles) 42 34 43 40 38 34 34 80 78 142 Culture and recreation: Beach parking stickers issued 144,254 131,645 146,500 143,500 149,490 139,828 134,051 181,878 122,415 114,778 Library circulation 2,554,082 2,080,277 2,471,878 2,253,555 2,193,351 2,349,418 2,302,017 2,578,588 2,578,589 2,768,648 Water: New connections 2,864 2,031 2,297 2,776 1,951 2,023 2,204 1,878 1,417 1189 Wastewater: Average daily sewage treatment 21,343 21,015 18,853 18,030 18,555 17,864 17,090 17,150 16,954 15,834 (millions of gallons) ** -Due to the consolidation of Fire Districts, this information is no longer being tracked. Sources: Police -Collier County Sheriff's Department Fire -Collier County Bureau of Emergency Services, Greater Naples Fire District Transportation -Collier County Alternative Transportation, Road and Bridge Culture and Recreation -Collier County Parks and Recreation, Public Library Water -Collier County Utility Billing Wastewater -Collier County Wastewater 177 COLLIER COUNTY, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Function: Public Safety: Police stations 7 7 7 7 7 7 7 7 7 7 Patrol units 273 273 272 272 270 274 276 276 275 275 Fire: Fire stations 4 4 4 4 4 4 4 4 3 3 Highways and streets: Streets* (miles) 1,167 1,172 1,169 1,166 1,161 1,159 1,149 1,151 1,184 1,184 Streetlights 5,378 5,364 4,635 5,083 5,074 5,182 4,958 4,958 4,868 4,781 Traffic signals 381 377 377 377 374 365 360 370 353 297 Culture and recreation: Parks acreage 1,561 1,560 1,521 1,521 1,521 1,521 1,521 1,521 1,521 1,520 Parks 66 66 61 61 61 61 61 61 61 61 Swimming pools 9 9 9 9 8 8 8 8 8 8 Tennis courts 40 40 45 45 45 45 45 45 45 45 Community centers 9 9 9 9 9 9 9 8 8 8 Libraries 10 10 10 10 10 10 10 10 10 10 Number of volumes in libraries 653,726 659,112 663,811 593,378 557,188 567,248 605,408 683,237 692,229 673,131 Water: Number of customers 81,339 75,837 73,854 71,614 66,010 61,830 59,443 57,548 55,878 54,190 Water mains (miles) 1,191 1,166 1,149 1,132 1067 1015 986 925 888 888 Maximum daily capacity (per million gallons) 32,726 33,658 32,113 30,956 32,243 33,877 31,376 30,460 30,120 29,988 Wastewater: Sanitary sewers (miles) 1,201 1,186 1,181 1,156 1,085 1,021 1,028 1,030 1,081 1,116 Primary and secondary drainage facilities 325 325 322 312 289 294 306 306 305 305 Sources: Police -Collier County Sheriff's Department Fire -Collier County Bureau of Emergency Services Highway and Streets -Collier County Traffic Operations, Transportation Engineering, Road and Bridge Culture and Recreation -Collier County Public Library, Parks and Recreation Water -Collier County Water, Utility Billing Wastewater -Collier County Stormwater, Wastewater 178 OPF Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated March 7, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International Honorable Board of County Commissioners Collier County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Clifton LarsonAllen LLP Naples, Florida March 7, 2022 2 Clifton LarsonAllen LLP PAW CLAconnect.com MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, (County) as of and for the fiscal year ended September 30, 2021, and have issued our report thereon dated March 7, 2022. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 7, 2022, should be considered in conjunction with this management letter. Prior Audit Findings 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 financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information is included in the notes to the basic financial statements. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International Honorable Board of County Commissioners Collier County, Florida Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the County met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the County. It is management's responsibility to monitor the County's financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Specific Information (For a dependent special district or an independent special district, or a local government entity that includes the information of a dependent special district) As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Airport Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 16. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 21. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $1,119,018. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $185,558. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: See Appendix A. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $24,448,101. Honorable Board of County Commissioners Collier County, Florida As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Community Redevelopment Agency reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 5. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $618,369. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $7,140. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: See Appendix A. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $3,964,976. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Educational Facilities Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $5,000. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $0. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Health Facilities Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. Honorable Board of County Commissioners Collier County, Florida c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $4,500. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $0. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Housing Finance Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $4,500. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $0. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Industrial Development Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $7,500. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. 4 Honorable Board of County Commissioners Collier County, Florida A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $0. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Water -Sewer District reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 433. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 126. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $36,185,929. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $940,134. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: See Appendix A. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $358,656,806. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida March 7, 2022 Appendix A Listing of Special District Construction Projects September 30, 2021 Special District Name of Project Total Expenditures Collier County Airport Authority Everglades Airport Runway Rehabilitation $ 277,900 Collier County Community Redevelopment Agency Bayshore Parking Lot $ 445,314 Bayshore Fire Suppression $ 651,721 Collier County Water -Sewer District Wellfield generator project $ 166,394 Wellfield electrical upgrades $ 258,647 Well abandonment/closure $ 9,788 Pelican Bay IQ maintenance and storage building $ 129,189 South County Regional Treatment Plant guard house $ 24,825 North County Regional Water Treatment Plant overhead crane system $ 51,108 Naples Park public utility renewal $ 160,989 North County Water Reclamation facility odor control improvements $ 106,515 North County Water Reclamation facility deep injection well rehabilitaiton $ 247,515 North County Water Reclamation storm water swale repair $ 1,388,063 Above ground storage tanks $ 195,421 Pump station rehabilitation $ 335,612 Transmission water main improvements $ 318,834 Water quality montoring panels $ 59,689 Sourth County Regional Water Treatment Plant field trailer site $ 14,733 Carica field trailer site $ 17,501 North County Regional Water Treatment Plant chemical feed controller upgrades $ 17,443 North County Regional Water Treatment Plant chemical bulk tank replacement $ 68,021 Wastewater force main extension $ 39,885 6 Clifton LarsonAllen LLP PAW CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida's (County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds and Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2021. Management of the County is responsible for the County's compliance with the specified requirements. Our responsibility is to express an opinion on the County's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the County's compliance with specified requirements. In our opinion, the County complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds and Section 365.172(10) and 365.173(2) (d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2021. This report is intended solely for the information and use of the County and the Auditor General, state of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 7, 2022 A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal year ended September 30, 2021. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2021 Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes $ 400,050,661 Governmental Impact Fees 46,653,551 Half Cent Sales Tax 55,732,311 Developmental Fees 34,563,449 State Revenue Sharing 13,775,595 5th Cent Local Option Gas Tax 6,252,189 6th Cent Local Option Gas Tax 8,295,677 Constitutional Gas Tax 4,594,297 Seventh Cent Gas Tax 2,033,421 Ninth Cent Gas Tax 1,744,158 Parks and Recreation Fees 5,775,771 Tourist Development Tax 36,192,117 Court Facilities Fees 966,715 Communications Services Tax 3,860,657 Total bondable revenues $ 620,490,569 Fiscal 2021 governmental debt service requirements: Series 2012 Gas Tax Bonds Principal: $ 3,445,000 Interest: 429,650 Series 2014 Gas Tax Bonds Principal: 8,070,000 Interest: 1,372,304 Series 2010E Special Obligation Bonds Principal: 2,530,000 Interest: 182,100 Series 2011 Special Obligation Bonds Principal: 6,805,000 Interest: 1,844,881 Series 2013 Special Obligation Bonds Principal: - Interest: 2,846,975 Series 2017 Special Obligation Bond Principal: 2,506,000 Interest: 1,331,265 Series 2019 Special Obligation Bond Principal: - Interest: 768,844 Series 2020A Special Obligation Bonds Principal: - Interest: 1,285,544 Series 2020E Special Obligation Bonds Principal: - Interest: 197,950 Series 2018 Tourist Development Tax Bonds Principal: 1,030,000 Interest: 2,690,750 Commercial Paper Program Principal: - Interest: 12,362 Total fiscal 2021 governmental debt service requirements $ 37,348,625 Governmental debt ratio of fiscal year 2021 debt service requirements to total bondable revenues (13.0% maximum allowed by County policy) 6.0% Notes: Debt service is based upon current amortization tables forth e fiscal year indicated. Debt prepayments, if any, are not included as debt service requirements TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2021 Collier County Water and Sewer District: Total Sales Revenues $ 163,709,984 Miscellaneous Revenues 4,306,905 Total Operating Revenues 168,016,889 Non -Operating Revenues 2,910,385 Gross Revenues 170,927,274 Less: Operation and Maintenance Expense (excluding Depreciation and Amortization) 106,912,581 Net Revenues Available for Debt Service (1) $ 64,014,693 Total Fiscal Year 2021 Debt Service on Bonds (2) $ 12,565,757 Net Revenues Debt Service Coverage on Bonded Debt (100% Required) - (1/2) 509% Other Pledged Funds: System Development Fees (Impact Fees) $ 16,273,483 Total Pledged Funds Available for Debt Service (3) $ 80,288,176 Total Fiscal Year 2021 Debt Service on Bonds (4) $ 12,565,757 Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) - (3/4) 639% Total Pledged Funds Available for Debt Service After Payment of Bonds (5) $ 67,722,419 Total Fiscal Year 2021 Debt Service on Subordinated Indebtedness (6) $ 10,260,882 Calculated Coverage on Subordinated Indebtedness - (5/6) 660% Total Pledged Funds Available for System Purposes $ 57,461,537 Notes: Coverage calculations utilitize definitions of Gross Revenues, Net Revenues, System Development Fees and Pledged Funds established in Resolution CWS 85-5, as Amended and Restated. `, Summary Debt Statement for Fiscal Year 2021 General Governmental Debt: While the Florida State Constitution and the Florida Statutes set no legal debt limit at the local level, prudent fiscal management requires a self-imposed level of restraint. Collier County's Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this threshold. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County's Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio decreased by .5% for the fiscal year ended September 30, 2021, to 6.0% (see Table 1), or less than half of the allowable ratio. This decrease is mainly reflective of increases in ad valorem collections, as well as half cent sales tax and tourist development tax revenues. These revenue increases were offset by a 2.4% increase in debt service related to the newly issued Series 2020 A and B Special Obligation Revenue Bonds. Overall governmental revenues, even with the lingering effects of the COVID-19 pandemic, increased by 11.0% over fiscal year 2020. This increase was largely related to a 6.5% increase in ad valorem collections. Aggressive debt restructuring over the last ten years, coupled with the growth of general governmental revenues, produced several consecutive years of decreases in the general governmental debt ratio. The trend in the governmental debt ratio is shown in the table below: Comparison of Governmental Debt Ratio to Maximum Allowable Governmental Debt Ratio Collier County, Florida (FY14 - FY21) 14.00% 12.00% 10.00% 8.1% 8.00%7.0% 6.00% 4.00% 2.00% 0.00% 13.0% 6.5% 6.5% 6.0% 6.0% 6.0% FY-2014 FY-2015 FY-2016 FY-2017 FY-2018 FY-2019 FY-2020 FY-2021 Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 3 Summary of Existing and Newly Issued General Government Debt Existing General Government Debt The following table lists outstanding General Governmental Debt as of September 30, 2021: Issue Amount Interest Rates Final Maturity Purpose Series 2010B Special $2,630,000 4.00% - 5.00% October 1, 2021 Advance refund Series 2002 Obligation Refunding Capital Improvement Revenue Revenue Bonds Bonds. Series 2011 Special $39,360,000 3.00% - 5.00% October 1, 2029 Advance refund portions of the Obligation Refunding Series 2003 and 2005 Capital Revenue Bonds Improvement and Refunding Revenue Bonds. Series 2013 Special $73,805,000 3.50% - 4.00% October 1, 2035 Advance refund remaining Obligation Refunding portions of the Series 2003 and Revenue Bonds 2005 Capital Improvement and Refunding Revenue Bonds. Series 2017 Special $40,577,000 3.09% July 1, 2034 Advance refund a portion of the Obligation Refunding Series 2010 Special Obligation Revenue Note (Term Loan) Revenue Bonds. Series 2019 Special $28,060,000 2.74% October 1, 2029 Fund the purchase of the Golden Obligation Revenue Note Gate Golf Course. (Taxable Term Loan) Series 2020A Special $75,100,000 4.00% - 5.00% October 1, 2045 Fund stormwater capital Obligation Revenue Bonds improvements, parks capital improvements and refinance loan related to sports complex land purchase. Series 2020B Special $24,075,000 2.00% October 1, 2029 Fund the purchase of the HHH Obligation Revenue Bonds Ranch and the Camp Keais (Taxable) property. Series 2012 Gas Tax $7,375,000 3.00% - 5.00% June 1, 2023 Advance refund Series 2003 Gas Refunding Revenue Bonds Tax Revenue Bonds. Series 2014 Gas Tax $42,945,000 2.33% June 1, 2025 Advance refund a portion of the Refunding Revenue Bond Series 2005 Gas Tax Revenue (Term Loan) Bonds. Series 2018 Tourist $60,785,000 4.00% - 5.00% October 1, 2048 Fund the construction and Development Tax Revenue equipping of a regional Bonds tournament caliber amateur sports complex. New General Government Debt On November 3, 2020, Collier County issued the Series 2020A Special Obligation Revenue Bonds in the par amount of $75,100,000. The proceeds of the Series 2020A Bonds will be used to finance the acquisition, construction and equipping of various stormwater capital improvements, aquatic and other park related improvements, refinance prior indebtedness related to land purchased for the Paradise Coast Sports Complex and pay issuance costs. The final maturity of the Series 2020A Bonds is October 1, 2045. The bonds are due on installments of $165,000 to $6,045,000 and bear coupon rates of 4.00% and 5.00%, depending upon the maturity. The Series 2020A Special Obligation Revenue Bonds were issued as a competitive public offering, secured by the County's covenant to budget and appropriate in its annual budget, by amendment, if necessary, from non -ad valorem revenues. On November 3, 2020, Collier County also issued the Series 2020B Taxable Special Obligation Revenue Bonds in the par amount of $24,075,000. The proceeds of the Series 2020B Bonds will be used to purchase real property, consisting of 967 acres know as the Hussey property, approximately three miles east of Collier Boulevard and directly north of Alligator Alley, and approximately 1,046 acres known as the Camp Keais property located southeast of the intersection of Camp Keais Road and Oil Well Road east of Ave Maria Boulevard and pay issuance costs. The bonds were issued as taxable so that the County has flexibility in determining the future uses of the respective properties. The final maturity of the Series 2020B Bonds is October 1, 2029. The bonds are due on installments of $2,275,000 to $2,920,000 and bear coupon rates of 2.00%. The Series 2020B Taxable Special Obligation Revenue Bonds were issued as a competitive public offering, secured by the County's covenant to budget and appropriate in its annual budget, by amendment, if necessary, from non -ad valorem revenues. Collier County Governmental Bonded Debt Ratings Table: Current Ratings (as of 3/14/2022) Fitch Moody's Standard & Poor's Gas Tax Revenue Bonds AA- A2 A+ Special Obligation Bonds AA Aal AAA Tourist Development Tax Bonds* AA+ Aa3 - * Standard & Poor's does not currently rate the Tourist Development Tax Bonds. A rating of AA by Fitch Ratings denotes the expectations of very low default risk and indicates very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. Fitch also uses intermediate +/- modifiers for each AA category. A Moody's Investors Service rating of Aa is indicative of a high quality investment grade instrument with very low credit risk, whereas an A rating indicative of an upper -medium grade instrument subject to low credit risk. Moody's uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. Moody's also maintains an Issuer Credit Rating of Aaa for Collier County which indicates excellent overall credit worthiness. An obligation rated AAA has the highest rating assigned by Standard and Poor's Global Ratings. The obligor's capacity to meet its financial commitments on the obligation is extremely strong. An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher -rated categories. However, the obligor's capacity to meet its financial commitments on the obligation is still strong. Standard and Poor's Global Ratings also uses intermediate +/- modifiers for each category to indicate relative standing within the major rating categories. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District's debt are set by bond covenants. Net revenues, defined as operating revenues plus specific non -operating revenues less operating expenses, excluding depreciation, must cover senior lien bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover senior lien bonded debt service at 125%. Net revenue coverage on senior lien bonded debt was 509% and total pledged funds coverage on senior lien bonded debt was 639% for FY-2021, down from 545% and 675%, respectively, for FY-2020. Bonded debt coverages for FY-2021 decreased primarily due to a 6.0% increase in in operations and maintenance costs and a 5.7% decrease in non -operating revenues. Operating expenses increased due to higher costs for emergency repairs and utility and electrical parts used in the maintenance of the system. Non -operating revenues decreased mainly due to decreased interest earnings when compared to FY-2020. The District's calculated coverage on subordinated debt, all in the form of a bank loan with Synovus Bank, also decreased from 705% to 660% (see Table 2). The total pledged funds coverage required by the subordinated loan agreement is equivalent to 115% of total subordinated debt service in each fiscal year, after payment of bonded senior lien debt service. User rates for potable water, wastewater and irrigation water, as well as miscellaneous revenues, offset system operating, maintenance, debt service and capital costs. In July of 2018 the District's governing board adopted rate increases of 2.8% effective October 1, 2018, 2.9% effective October 1, 2019 and 2.9% effective October 1, 2020, for fiscal years 2019, 2020 and 2021, respectively. The District's current focus is the optimization of resources, risk -based prioritization of capital projects and infrastructure expansion in Golden Gate City and the northeast service area to serve future residents and businesses. Existing Enterprise Debt The following table lists outstanding Enterprise Debt as of September 30, 2021: Issue Amount Interest Rates Final Maturity Purpose Series 2015 Water and Sewer $4,561,000 1.75% July 1, 2022 Advance refund a portion of the Refunding Revenue Bond Series 2006 Water and Sewer (Bank Term Loan) Revenue Bonds. Series 2016 Water and Sewer $48,105,000 5.00% July 1, 2036 Refund remaining portion of the Refunding Revenue Bonds Series 2006 Water and Sewer Revenue Bonds. Series 2016 Water and Sewer $50,360,000 1.80% July 1, 2029 Refund all outstanding State Refunding Revenue Note Revolving Fund Loans. (Subordinated) Series 2018 Water and Sewer $27,555,000 2.41% July 1, 2029 Fund the purchase of water and Revenue Bond (Bank Term wastewater facilities within the Loan) Golden Gate Community. Series 2019 Water and Sewer $76,185,000 3.00% - 5.00% July 1, 2039 Fund utility improvements in the Revenue Bonds northeast area of the District. Series 2021 Water and Sewer $128,900,000 4.00% - 5.00% July 1, 2046 Fund utility improvements in Revenue Bonds Golden Gate City, the Governmental Operations Business Park and the northeast area of the District. New Enterprise Debt On July 27, 2021, the Board of County Commissioners of Collier County, Florida and ex-officio as the governing Board of the Collier County Water -Sewer District (District) issued the Series 2021 Water and Sewer Revenue Bonds in the par amount of $128,900,000. These bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements related to Golden Gate City and surrounding areas, the northeast service area and the utilities' portion of the planned Government Operations Business Park. The Series 2021 bonds were issued on a parity with the District's outstanding Water and Sewer Refunding Revenue Bond, Series 2015, Water and Sewer Refunding Revenue Bonds, Series 2016, Water and Sewer Revenue Bond, Series 2018 and Water and Sewer Revenue Bonds, Series 2019. The final maturity of the Series 2021 bonds is July 1, 2046, with interest rates from 4.00% to 5.00%. Collier County Enterprise Debt Ratings Table: Current Ratings (as of 3/14/2022) Fitch Moody's Standard & Poor's* Water and Sewer Revenue Bonds AAA Aaa - * Standard & Poor's does not currently rate County Water and Sewer Revenue Bonds. A rating of AAA by Fitch Ratings denotes the lowest expectation of default risk. A rating of AAA is only assigned in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. A Moody's Investors Service rating of Aaa is indicative of an investment grade instrument of the highest quality, with minimum credit risk. 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Suppler Year Ended Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Statements and Other Reports Year Ended September 30, 2021 Contents IndependentAuditors' Report..........................................................................................................1 Financial Statements Balance Sheet — Governmental Funds........................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — GovernmentalFunds................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual— General Fund.............................................................................................................6 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Court Services Fund..................................................................................................7 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Other Special Revenue Fund.....................................................................................8 Statement of Fiduciary Net Position — Custodial Funds.............................................................9 Statement of Changes in Fiduciary Net Position — Custodial Funds........................................10 Notes to Financial Statements................................................................................................... I I Supplementary Information Combining Statement of Fiduciary Net Position — All Custodial Funds..................................26 Combining Statement of Changes in Fiduciary Net Position — All Custodial Funds ...............27 Clifton LarsonAllen LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements, as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. �nternat�ona� g g Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Clerk as of September 30, 2021, and the respective changes in financial position and budgetary comparisons for the General Fund, Court Services Fund and Other Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund and the aggregate remaining fund information only for that portion of the major funds and the aggregate remaining fund information of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2021, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. During fiscal year ended September 30, 2021, the Clerk adopted GASB Statement No. 84, Fiduciary Activities. As a result of the implementation of this standard, the Clerk reported a restatement of beginning fiduciary net position for the change in accounting principal (see Note 12). Our auditors' opinion was not modified with respect to this restatement. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk's basic financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. OA Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2022, on our consideration of the Clerk's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Clerk's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 31, 2022 Collier County, Florida Clerk of the Circuit Court and Comptroller Balance Sheet — Governmental Funds September 30, 2021 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents $ 2,544,031 $ 1,510,101 $ 7,208,079 $ 11,262,211 Accounts receivable, net 7,358 - - 7,358 Due from Collier County, Florida Board of County Commissioners 4,302 - - 4,302 Due from other governments 9,305 31,514 - 40,819 Total assets $ 2,564,996 $ 1,541,615 $ 7.208,079 $ 11,314,690 Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities $ 1,022,291 $ 260,138 $ 35,953 $ 1,318,382 Due to Collier County, Florida Board of County Coirniussioners 630,361 358,193 - 988,554 Due to other governments - 838,252 - 838,252 Deferred revenue - 85,032 - 85,032 Deposits 912,344 - - 912,344 Total liabilities 2,564,996 1,541,615 35,953 4,142,564 Fund balance: Restricted - - 7,172,126 7,172,126 Total fund balance - - 7,172,126 7,172,126 Total liabilities and fund balance $ 2,564,996 $ 1,541,615 $ 7,208,079 $ 11,314,690 See accompanying Notes to Financial Statements. 4 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2021 Revenues: Intergovernmental Charges for services Miscellaneous Interest income Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess fees to State of Florida Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balance Fund balances — beginning of year Fund balances — end of year Other Total Court Special Governmental General Services Revenue Funds $ 178,140 $ 314,839 $ - $ 492,979 5,160,955 7,085,844 1,886,667 14,133,466 50 - - 50 29,256 11,409 12,337 53,002 5,368,401 7,412,092 1,899,004 14,679,497 9,596,063 5,589,259 373,870 15,559,192 3,137,437 519,524 - 3,656,961 537,043 - - 537,043 35,816 - - 35,816 477 - - 477 13,306,836 6,108,783 373,870 19,789,489 (7,938,435) 1,303,309 1,525,134 (5,109,992) 2,896 - - 2,896 8,565,900 - - 8,565,900 (1,303,309) - (1,303,309) (630,361) - - (630,361) 7,938,435 (1,303,309) - 6,635,126 1,525,134 1,525,134 51646,992 5,646,992 7,172,126 $ 7,172,126 See accompanying Notes to Financial Statements. 5 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual General Fund Year Ended September 30, 2021 Revenues: Intergovernmental Charges for services Miscellaneous Interest income Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Debt Service Principal Debt Service Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Comrrvssioners appropriations Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Comm ssioners Total other financing sources (uses) Net change in fund balance Fund balance — beginning of year Fund balance — end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ - $ - $ 178,140 $ 178,140 3,138,700 4,772,700 5,160,955 388,255 - - 50 50 72,000 72,000 29,256 (42,744) 3,210,700 4,844,700 5,368,401 523,701 8,949,200 9,623,100 9,596,063 27,037 2,320,600 3,250,700 3,137,437 113,263 506,800 536,800 537,043 (243) - - 35,816 (35,816) - - 477 (477) 11,776,600 13,410,600 13,306, 836 103,764 (8,565,900) (8,565,900) (7,938,435) 627,465 - - 2,896 2,896 8,565,900 8,565,900 8,565,900 - - (630,361) (630,361) 8,565,900 8,565,900 7,938,435 (627,465) See accompanying Notes to Financial Statements. 6 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Court Services Fund Year Ended September 30, 2021 Revenues: Intergovernmental Charges for services Interest income Total revenues Expenditures: General government: Personal services Operating expenditures Total expenditures Excess of revenues over expenditures Other financing uses: Transfers out: Distribution of excess fees to State of Florida Total other financing uses Net change in fund balance Fund balance — beginning of year Fund balance — end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 435,309 $ 467,005 $ 314,839 $ (152,166) 5,941,104 5,915,791 7,085,844 1,170,053 32,000 43,100 11,409 (31,691) 6,408,413 6,425,896 7,412,092 986,196 6,003,413 5,760,696 5,589,259 171,437 405,000 665,200 519,524 145,676 6,408,413 6,425,896 6,108,783 317,113 - - 1,303,309 1,303,309 (1,303,309) (1,303,309) - (1,303,309) (1,303,309) See accompanying Notes to Financial Statements. 7 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Other Special Revenue Fund Year Ended September 30, 2021 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 1,120,000 $ 1,120,000 $ 1,886,667 $ 766,667 Interest income 57,000 57,000 12,337 (44,663) Total revenues 1,177,000 1,177,000 1,899,004 722,004 Expenditures: General government: Personal services 1,379,700 1,577,700 373,870 1,203,830 Operating expenditures 1,690,500 1,696,500 - 1,696,500 Capital outlay - 634,200 - 634,200 Total expenditures 3,070,200 3,908,400 373,870 3,534,530 Net change in fund balance (1,893,200) (2,731,400) 1,525,134 4,256,534 Fund balance — beginning of year 4,053,626 5,250,315 5,646,992 396,677 Fund balance — end of year $ 2,160,426 $ 2,518,915 $ 7,172,126 $ 4,653,211 See accompanying Notes to Financial Statements. 8 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Fiduciary Net Position Custodial Funds September 30, 2021 Assets Cash and cash equivalents $ 33,428,877 Total assets $ 33,428,877 Liabilities Due to other governments $ 7,383,291 Total liabilities 7,383,291 Fiduciary Net Position Restricted for: Individuals, organizations, and other governments 26,045,586 Total fiduciary net position 26,045,586 Total liabilities and fiduciary net position $ 33,428,877 See accompanying Notes to Financial Statements. 9 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended September 30, 2021 Additions Fees/Fines collected for other governments $ 1,827,943 Registry and other deposits collected 34,880,183 Total additions $ 36,708,126 Deductions Fees/Fines disbursed to other governments $ 1,633,899 Registry and other deposits disbursed 24,646,701 Total deductions 26,280,600 Change in fiduciary net position 10,427,526 Fiduciary net position - beginning of year (as restated) 15,618,060 Fiduciary net position - end of year $ 26,045,586 See accompanying Notes to Financial Statements. 10 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Flofida. The Clerk's Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and custodial funds of the Clerk's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk's general fund. Court -related operations are funded by the collection of fines, fees, costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 11 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund —The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund — The court services fund is a special revenue fund established to account for court -related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund — The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office; and revenues mandated by Section 28.24(12)(e) and Section 28.37(5), Florida Statutes, to be used exclusively for funding court -related technology needs. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk's activities are classified as court -related and non -court -related. The Clerk's general fund activity, which is classified as non -court -related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. 12 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds — Custodial Funds — Custodial funds are used to account for assets held by the Clerk in a fiduciary capacity or as an agent for individuals, private organizations, and other governments. Custodial funds are accounted for using the accrual basis of accounting. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk's funds, but rather is reported in the basic financial statements of Collier County, Florida. 13 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Prepaid Expenses The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non -spendable fund balances at the Clerk as of September 30, 2021. Spendable fund balances are classified based on a hierarchy of the Clerk's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk's fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. 14 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund -Type Definitions (continued) When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk's annual budget. The Clerk prepares and approves the budget for the Clerk's non -court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court -related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ending September 30, 2021, the Clerk had sufficient revenues to meet expenditures. 15 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 2. Budgetary Process (continued) The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk's fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 3. Cash and Cash Equivalents At September 30, 2021, the carrying value of the Clerk's cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A $ 9,100 N/A Demand deposits N/A 44,681,988 N/A Total cash and cash equivalents $ 44,691,088 The Clerk maintains a cash pool for the deposits of all governmental and custodial funds. Each fund type's portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. 16 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2021 are reported as $11,262,211 and $33,428,877 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2021, the Clerk's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Clerk's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter -local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk's funds is based on maintaining 24-hour liquidity. All Clerks funds are held in local banks or short-term investment instruments. 17 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 4. Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of $29,256 is reported in the general fund for the year ended September 30, 2021, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, Transfer- September 30, 2020 Additions Deductions out 2021 Capital assets depreciated: Machinery and equipment $ 6,917,443 $ 534,147 $ (198,404) $ 378,600 $ 7,631,786 Less accumulated depreciation (5,872,904) (486,568) 198,404 (378,600) (6,539,668) Total capital assets depreciated Total capital assets, net 1,044,539 47,579 - - 1,092,118 $ 1,044,539 $ 47,579 $ - $ - $ 1,092,118 During the year ended September 30, 2021, capital assets totaling $378,600 were transferred to another department of Collier County, Florida. IR Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 6. Long -Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2020 Additions Deletions 2021 Accrued compensated absences $ 2,089,231 $ 869,386 $ (1,035,372) $ 1,923,245 Of these liabilities, $884,693 is expected to be paid during the fiscal year ending September 30, 2022. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. The Clerk leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Clerk's leases can be found in the Collier County comprehensive annual financial report or County -wide financial statements. Leases entered into by the Clerk are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2021, the Clerk entered into leases in the amount of $2,896. During the year ended September 30, 2021, the Clerk's payments of principal on leases totaled $35,816. 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a 19 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 7. Pension Plans (continued) Background (continued) cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State - administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at 20 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 7. Pension Plans (continued) Plan Description (continued) age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre - July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. 21 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 7. Pension Plans (continued) Benefits Provided (continued) Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2021, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State - administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the 22 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 7. Pension Plans (continued) FRS Investment Plan (continued Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after I year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk's contributions made to the plans during the years ended September 30, 2021, 2020, and 2019 were $1,323,776, $1,138,484, and $1,009,015, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the Collier County comprehensive annual financial report or County -wide financial statements. 23 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 8. Related Party Transactions The Board provided funding for the Clerk in the amount of $8,565,900. The Supervisor of Elections provided funding in the amount of a $50,000 fee for financial services performed by the Clerk. At September 30, 2021, the Clerk had a payable due to the Board of $988,554, comprised as follows: Distribution of excess fees $ 630,361 Amounts due for various court fees 358,193 Total due to Board of County Commissioners 9. Risk Management $ 988,554 Collier County, Florida (County) is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2021, the Clerk was charged $2,572,693 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers' compensation and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3 % wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 24 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2021 10. Other Postemployment Healthcare Benefits (OPEB) Plan In accordance with Section 112.0801, Florida Statutes, the Clerk participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a "party in interest" in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2021, the Clerk was involved in approximately 120,907 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in 226 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are 5 active actions for foreclosure of property in which the Clerk has been a named defendant. In the opinion of the Clerk and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk. The Clerk's Office carries insurance to protect against loss. 12. Change in Accounting Principle During the year ended September 30, 2021, the Clerk implemented GASB Statement No. 84, Fiduciary Activities. The goal of the statement is to improve financial reporting by establishing specific criteria for identifying activities that should be reported as fiduciary activities. The implementation of the pronouncement required the restatement of the September 30, 2020 fiduciary net position of the custodial funds. Custodial Funds Fiduciary net position, as previously reported $ - Change in accounting principle 15,618,060 Fiduciary net position, as restated $ 15,618,060 25 Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statement of Fiduciary Net Position Custodial Funds September 30, 2021 As s ets Cash and cash equivalents Total assets Liabilities Due to other governments Total liabilities Fiduciary Net Position Restricted for: Individuals, organizations, and other governments Total fiduciary net position Total liabilities and fiduciary net position Jury and Clerk's Court Ordinary Total Agency Registry Witness Custodial Funds $ 9,013,277 $ 24,396,847 $ 18,753 $ 33,428,877 $ 9,013,277 $ 24,396,847 $ 18,753 $ 33,428,877 $ 7,383,291 $ - $ - $ 7,383,291 7,383,291 - - 7,383,291 1,629,986 24,396,847 18,753 26,045,586 1,629,986 24,396,847 18,753 26,045,586 $ 9,013,277 $ 24,396,847 $ 18,753 $ 33,428,877 26 Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended September 30, 2021 Additions Fees/Fines collected for other governments Registry and other deposits collected Total additions Deductions Fees/Fines disbursed to other governments Registry and other deposits disbursed Total deductions Change in fiduciary net position Fiduciary net position - beginning of year (as restated) Fiduciary net position - end of year Jury and Clerk's Court Ordinary Total Agency Registry Witness Custodial Funds $ 1,827,943 $ - $ - $ 1,827,943 - 34,880,183 - 34,880,183 $ 1,827,943 $ 34,880,183 $ - $ 36,708,126 $ 1,633,899 $ - $ - $ 1,633,899 - 24,638,066 8,635 24,646,701 1,633,899 24,638,066 8,635 26,280,600 194,044 10,242,117 (8,635) 10,427,526 1,435,942 14,154,730 27,388 15,618,060 $ 1,629,986 $ 24,396,847 $ 18,753 $ 26,045,586 27 eir Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements, and have issued our report thereon dated January 31, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. n rnemherof CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 28 International g g Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. LLB CliftonLarsonAllen LLP Naples, Florida January 31, 2022 29 Clifton LarsonAllen LLP . CLAconnect.com MANAGEMENT LETTER Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk), as of and for the fiscal year ended September 30, 2021, and have issued our report thereon dated January 31, 2022. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 31, 2022, should be considered in conjunction with this management letter. Prior Audit Findings 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 report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. n member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 30 �nternat�ona� g g Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be, and should not be used by anyone other than these specified parties. G?���.txL�u a�ld c LLB CliftonLarsonAllen LLP Naples, Florida January 31, 2022 31 Clifton LarsonAllen LLP . CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court and Comptroller's (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets, during the year ended September 30, 2021. Management of the Clerk is responsible for the Clerk's compliance with the specified requirements. Our responsibility is to express an opinion on the Clerk's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Clerk complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Clerk complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk's compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets during the year ended September 30, 2021. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 31, 2022 A rnemberof CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 32 Interratlonal g g Collier County, Florida Property Appraiser Financial Suppler Year Ended Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2021 Contents IndependentAuditors' Report ..........................................................................................................1 Financial Statements Balance Sheet — General Fund......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance— General Fund.............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget (Non-GAAP) and Actual — General Fund....................................................5 Notesto Financial Statements.......................................................................................................6 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................21 ManagementLetter........................................................................................................................23 Independent Accountants' Report ..................................................................................................25 0 Honorable Abe Skinner Property Appraiser Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Property Appraiser's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International Honorable Abe Skinner Property Appraiser Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Property Appraiser as of September 30, 2021, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of the general fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2021, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2021 on our consideration of the Property Appraiser's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control over financial reporting and compliance. �a,�� � LLB CliftonLarsonAllen LLP Naples, Florida December 22, 2021 2 Collier County, Florida Property Appraiser Balance Sheet — General Fund September 30, 2021 Assets Cash and cash equivalents Total assets Liabilities and fund balance Liabilities: Accounts payable and accrued expenses Due to Collier County, Florida Board of County Commissioners Due to other taxing districts Total liabilities Fund balance Total liabilities and fund balance See accompanying Notes to Financial Statements. $ 1,875,425 $ 1, 775,425 $ 147,782 489,425 1,238,218 1,875,425 $ 1,875,425 3 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2021 Revenues: Commissions and fees $ 10,013,074 Miscellaneous 7,251 Total revenues 10,020,325 Expenditures: General government: Personal services 6,600,049 Operating 1,540,462 Capital outlay 42,475 Debt service - principal 66,216 Debt service - interest 6,886 Total expenditures 8,256,088 Excess of revenues over expenditures 1,764,237 Other financing uses: Proceeds from lease 22,475 Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (489,425) Distribution of excess fees and commissions to other governmental agencies (1,297,287) Total other financing uses (1,764,237) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year $ - See accompanying Notes to Financial Statements. 0 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2021 Revenues: Commissions and fees Interest revenue Miscellaneous Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service - principal Debt service - interest Total expenditures Excess of revenues over expenditures Other financing uses: Proceeds from lease Distribution of excess fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions and fees to other governmental agencies Total other financing uses Net change in fund balance Fund balance, beginning of year Fund balance, end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 8,763,885 $ 8,774,219 $ 8,774,218 $ (1) - - 7,251 7,251 8,763,885 8,774,219 8,781,469 7,250 6,810,211 6,820,545 6,600,049 220,496 1,918,674 1,918,674 1,539,322 379,352 35,000 35,000 42,475 (7,475) - - 66,216 (66,216) - - 6,886 (6,886) 8,763,885 8,774,219 8,254,948 519,271 - - 526,521 526,521 See accompanying Notes to Financial Statements. - - 22,475 22,475 - - (489,425) (489,425) (59,571) (59,571) (526,521) (526,521) 5 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser's total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser's office. The Property Appraiser's financial statements include only the funds of the Property Appraiser's office. For financial reporting purposes, the Property Appraiser is deemed to be part of the primary government of the County, and, therefore, is included as such in the County's Annual Comprehensive Financial Report (ACF 12). There are no component units included in the Property Appraiser's financial statements. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the County's Annual Comprehensive Financial Report (ACF 12). These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 0 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds' present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser's only governmental fund is the general fund. The general fund is used to account for the general operations of the Property Appraiser. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the "susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental fund of the Property Appraiser. 7 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Refund of "Excess Fees" Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as another financing use -transfer out in the accompanying financial statements. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave and up to 200 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser's annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser's total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. The Property Appraiser's budget is prepared under a budgetary basis of accounting that differs from generally accepted accounting principles (GAAP). Certain revenues received from non -ad valorem commissions, expenditures of such revenue, and other financing uses related to non -ad valorem revenue are not recognized under the budgetary basis of accounting; however, these items have been recognized under GAAP. 0 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 2. Budgetary Process (continued) A reconciliation of revenues, expenditures, and other financing uses on a budgetary basis to a GAAP is as follows: Total revenues - budgetary basis $ 8,781,469 Revenues not budgeted: Non -ad valorem commissions are not budgeted 1,238,856 Non -ad valorem interest is not budgeted - Total revenues - GAAP basis $10,020,325 Total expenditures - budgetary basis $ 8,254,948 Expenditures not budgeted: Non -ad valorem related expenditures are not budgeted 1,140 Total expenditures - GAAP basis $ 8,256,088 Total other financing uses - budgetary basis $ (526,521) Other financing uses not budgeted: Distribution of non -ad valorem excess fees are not budgeted (1,237,716) Total other financing uses - GAAP basis $ (1,764,237) 3. Cash At September 30, 2021, the carrying value of the Property Appraiser's cash was as follows: Cash on hand Demand deposits Total cash Carrying Type Value $ 125 1,875,300 $ 1,875,425 10 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 3. Cash (continued) Custodial Credit Risk At September 30, 2021, the Property Appraiser's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Property Appraiser's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 11 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2021: October 1, September 30, 2020 Additions Deductions 2021 Improvements other than buildings $ 15,332 $ - $ - $ 15,332 Machinery and equipment 1,586,914 20,000 (114,471) 1,492,443 Total capital assets 1,602,246 20,000 (114,471) 1,507,775 Less: accumulated depreciation (1,443,020) (78,514) 114,471 (1,407,063) Total capital assets, net $ 159,226 $ (58,514) $ - $ 100,712 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2020 Increase Decrease 2021 Accrued compensated absences $ 577,683 $ 389,359 $ (434,780) $ 532,262 12 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 5. Long -Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2021, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. A annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 13 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. 14 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 15 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2021, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. 16 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 17 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) rnwrih"tin» c The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser's employer contributions to the plan for the years ended September 30, 2021, 2020, and 2019, were $650,648, $573,446, and $512,315, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County's annual comprehensive financial report or County -wide financial statements. 7.Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Property Appraiser participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 8. Transactions with the Board of County Commissioners During the fiscal year ended September 30, 2021, the Board paid fees to the Property Appraiser that amounted to $7,822,139. At September 30, 2021, the Property Appraiser had a payable due to the Board as follows: Distribution of excess commissions and fees $ 489,425 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property, and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County's self-insurance program. During the year ended September 30, 2021, the Property Appraiser was charged $1,247,243 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers' compensation and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser. 19 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2021 10. Commitments and Contingencies (continued) Leases The Property Appraiser leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Property Appraiser's leases can be found in the Collier County annual comprehensive financial report or County -wide financial statements. Leases entered by the Property Appraiser are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2021, the Property Appraiser entered into one lease in the amount of $22,475. During the year ended September 30, 2021, the Property Appraiser's payments of principal on leases totaled $66,216. 20 0 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Property Appraiser's basic financial statements, and have issued our report thereon dated December 22, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International 21 Honorable Abe Skinner Property Appraiser Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. LLB Clifton LarsonAllen LLP Naples, Florida December 22, 2021 22 0 Honorable Abe Skinner Property Appraiser Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser) as of and for the year ended September 30, 2021, and have issued our report thereon dated December 22, 2021. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated December 22, 2021 should be considered in conjunction with this management letter. Prior Audit Findings 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 report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The Property Appraiser is a separately elected county official established pursuant to the Constitution of the State of Florida. There are no component units related to the Property Appraiser. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International 23 Honorable Abe Skinner Property Appraiser Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. ��Qx,�i..l� LLB CliftonLarsonAllen LLP Naples, Florida December 22, 2021 24 0 Honorable Abe Skinner Property Appraiser Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT We have examined the Collier County Property Appraiser, Collier County, Florida's (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. Management of the Property Appraiser is responsible for the Property Appraiser's compliance with the specified requirements. Our responsibility is to express an opinion on the Property Appraiser's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Property Appraiser complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Property Appraiser complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser's compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. i CliftonLarsonAllen LLP Naples, Florida December 22, 2021 A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International 25 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Collier County, Florida Sheriff Financial CtatamPnte and Suppler Year Ended Contents Independent Auditors' Report ..........................................................................................................1 Financial Statements Balance Sheet — Governmental Funds.............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances — GovernmentalFunds.....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget (Non-GAAP) and Actual — General Fund........................................................................6 Statement of Net Position — Internal Service Fund..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position InternalService Fund....................................................................................................................8 Statement of Cash Flows — Internal Service Fund...........................................................................9 Statement of Fiduciary Net Position — Fiduciary Funds................................................................10 Statement of Changes in Fiduciary Net Position — Fiduciary Funds.............................................11 Notes to Financial Statements........................................................................................................12 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios...............................................37 Combining Financial Information — Supplementary Information Combining Statement of Fiduciary Net Position — Custodial Funds.............................................3 8 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds ...........................39 Contents (continued) Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards.................................................................................................40 ManagementLetter........................................................................................................................42 Independent Accountants' Report ..................................................................................................45 Independent Accountants' Report on Applying Agreed -Upon Procedures...................................46 0 Honorable Kevin Rambosk Sheriff Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Sheriff's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. A member of CLA is an independent member of Nexia International, a leading, global network of independent 1 Nexia International accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. Honorable Kevin Rambosk Sheriff Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Sheriff as of September 30, 2021, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2021, and the changes in its financial position, or, where applicable, its cash flows for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. During fiscal year ended September 30, 2021, the Sheriff adopted GASB Statement No. 84, Fiduciary Activities. As a result of the implementation of this standard, the Sheriff reported a restatement of beginning fiduciary net position for the change in accounting principle (see Note 1). Our auditors' opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Changes in Total OPEB Liability and Related Ratios, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or 2 Honorable Kevin Rambosk Sheriff historical context. Our opinion on the basic financial statements is not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff's financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 26, 2022 on our consideration of the Sheriff s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Sheriffs internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida February 26, 2022 Assets Cash and cash equivalents Accounts receivable Other receivable Due from other funds Due from other governments Due from Collier County, Florida Board of County Commissioners Total assets Liabilities and fund balances Liabilities: Accounts payable Accrued expenses Due to other funds Due to Collier County, Florida Board of County Commissioners Due to other governments Unearned revenue Total liabilities Fund balances: Restricted Total liabilities and fund balances Collier County, Florida Sheriff Balance Sheet - Governmental Funds September 30, 2021 Grant Other Non -Major Special Prisoner Special Revenue General Revenue Fund Welfare Funds Total $ 12,661,812 $ 1,583,722 $ 2,894,784 $ - $ 17,140,318 72,492 - - - 72,492 25,690 - 16,168 11 41,869 430,642 - 28,729 - 459,371 21,516 415,128 - - 436,644 - 16,862 - 465,205 482,067 $ 13,212,152 $ 2,015,712 $ 2,939,681 $ 465,216 $ 18,632,761 $ 3,770,881 $ 3,058 $ 8,259 $ 133,455 $ 3,915,653 8,146,747 7,181 146 6,131 8,160,205 1,200,000 - 92,191 325,630 1,617,821 90,273 - - - 90,273 4,251 57,656 - - 61,907 13,212,152 67,895 100,596 465,216 13,845,859 - 1,947,817 2,839,085 - 4,786,902 $ 13,212,152 $ 21015,712 $ 2,939,681 $ 465,216 $ 18,632,761 See accompanying Notes to Financial Statements 4 Collier County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended September 30, 2021 Grant Other Non -Major Special Prisoner Special Revenue General Revenue Fund Welfare Funds Total Revenues: Grant revenue $ 128,078 $ 987,114 $ — $ — $ 1,115,192 Charges for services 1,037,078 — 765,366 — 1,802,444 Other revenue — — — — — Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Public safety: Personal services Operating expenditures Capital outlay Debt service - principal Debt service - interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds from leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Collier County, Florida Board of County Commissioners Transfers out: Collier County, Florida Board of County Commissioners Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balances Fund balances — beginning of year Fund balances — end of year 1,165,156 987,114 765,366 — 2,917,636 4,841,677 — — — 4,841,677 89,840 — — — 89,840 153,074,559 385,290 292,010 578,808 154,330,667 33,814,744 341,884 148,815 1,489,290 35,794,733 17,013,669 182,381 — 222,920 17,418,970 131,341 39,483 — — 170,824 3,318 114 — — 3,432 208,969,148 949,152 440,825 2,291,018 212,650,143 (207,803,992) 37,962 324,541 (2,291,018) (209,732,507) 202,222 — — — 202,222 206,622,700 — — — 206,622,700 32,151,347 — — 2,291,018 34,442,365 (31,128,078) — — — (31,128,078) (44,199) — — — (44,199) 207,803,992 — — 2,291,018 210,095,010 — 37,962 324,541 — 362,503 — 1,909,855 2,514,544 — 4,424,399 $ — $ 1,947,817 $ 2,839,085 $ — $ 4,786,902 See accompanying Notes to Financial Statements 5 Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balance — Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2021 Revenues: Charges for services Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Public safety: Personal services Operating expenditures Capital outlay Debt service - principal Debt service - interest Total expenditures Excess of expenditures over revenues Other financing sources: Transfers in: Proceeds from Leases Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources Net change in fund balance Fund balance — beginning of year Fund balance — end of year Budget Original Final Actual Variance With Budget Positive (Negative) $ $ 900,000 $ 1,037,078 $ 137,078 — 900,000 1,037,078 137,078 4,401,500 4,401,500 4,841,677 (440,177) 179,000 179,000 89,840 89,160 163,265,400 163,984,400 153,074,559 10,909, 841 32,349,700 32,530,700 33,814,744 (1,284,044) 6,427,100 6,427,100 15,862,322 (9,435,222) 131,341 (131,341) — — 3,318 (3,318) 206,622,700 207,522,700 207,817,801 (295,101) (206,622,700) (206,622,700) (206,780,723) (158,023) — — 202,222 202,222 206,622,700 206,622,700 206,622,700 — (44,199) (44,199) 206,622,700 206,622,700 206,780,723 158,023 Total revenues - budgetary basis $ 1,037,078 Revenues not budgeted: Revenues for disaster cost reimbursements that are not budgeted 128,078 Total revenues - GAAP basis Total expenditures - budgetary basis $ 207,817,801 Expenditures not budgeted: Expenditures for multi -period projects that are not budgeted 1,151,347 Total expenditure - GAAP basis $ 208,969,148 Total other financing sources - budgetary basis $ 206,780,723 Transfers in from Collier County Florida Board of County Commissioners (non -appropriations) 32,151,347 Transfers out to Collier County, Florida Board of County Commissioners (31,128,078) Total other financing sources (uses) - GAAP basis $ 207,803,992 See accompanying Notes to Financial Statements 6 Collier County, Florida Sheriff Statement of Net Position — Internal Service Fund September 30, 2021 Assets: Cash and cash equivalents $ 2,377,852 Investments 12,004,461 Due from stop loss 293,779 Due from other 3 Due from other funds 1,200,000 Interest receivable 25,703 Total assets 15,901,798 Liabilities: Claims payable — Self insurance claims payable 3,236,000 Unearned revenue 104,292 Total liabilities 3,340,292 Net position: Unrestricted 12,561,506 Total net position $ 12,561,506 See accompanying Notes to Financial Statements 7 Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position — Internal Service Fund Year Ended September 30, 2021 Operating revenues: Charges for services $ 32,571,928 Interest 5,123 Total operating revenues 32,577,051 Operating expenses: Claims and claims expenses 30,089,222 Reinsurance premiums 2,034,623 Administrative and other expenses 700,027 Total operating expenses 32,823,872 Operating income (246,821) Nonoperating revenues: Interest income, net of management fees 105,458 Realized gain on sale of investments (2,633) Decrease in fair value of investments (108,233) Total nonoperating revenues (5,408) Change in net position (252,229) Net position — beginning of year 12,813,735 Net position — end of year $ 12,561,506 See accompanying Notes to Financial Statements 8 Collier County, Florida Sheriff Statement of Cash Flows — Internal Service Fund Year Ended September 30, 2021 Operating activities Cash payments for claims and claims related services Cash payments for reinsurance premiums Cash payments for administrative services and supplies Cash received from other funds for services Cash received from retirees for services Net cash used by operating activities Investing activities Interest earnings, net of management fees Purchase of securities Proceeds from sales of securities Net cash used by investing activities Net decrease in cash, cash equivalents, and investments Cash, cash equivalents, and investments — beginning of year Cash, cash equivalents, and investments — end of year Reconciliation of operating income to net cash provided by operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Due from stop loss Decrease in due from other funds Increase in self-insurance claims payable Increase in claims payable Increase in unearned revenue Net cash used by operating activities $ (30,255,007) (2,034,623) (694,905) 30,500,000 1,368,557 (1,115,978) 105,458 (8,018,560) 7,413,102 (500,000) (1,615,978) 3,993,830 $ 2,377,852 $ (246,821) (28,275) (700,000) (3,839) (472,043) 335,000 $ (1,115,978) See accompanying Notes to Financial Statements 9 Collier County, Florida Sheriff Statement of Fiduciary Net Position — Fiduciary Funds September 30, 2021 Assets: Cash and cash equivalents Due from individuals and businesses Total assets Liabilities: Due to other funds Due to other Total liabilities Net Position: Restricted for individuals and businesses Private Purpose Trust Fund $ 270,226 $ 270,226 Custodial Funds $ 325,432 5,165 $ 330,597 $ 41,550 5,374 46,924 $ 270,226 $ 283,673 See accompanying Notes to Financial Statements 10 Collier County, Florida Sheriff Statement of Changes in Fiduciary Net Position — Fiduciary Funds Year Ended September 30, 2021 Additions: Contributions: Individuals Fees collected for Other Governments Miscellaneous Total additions Deductions: Beneficiary Payments to Individuals Payment of Fees to Other Governments Payments to Other Entities Total deductions Net Increase (Decrease) in Fiduciary Net Position Fiduciary Net Position - Beginning of Year, as restated Fiduciary Net Position - End of Year See accompanying Notes to Financial Statements Private Purpose Custodial Funds Trust Fund $ 500,999 $ 2,928,199 — 198,452 — 10,439 $ 500,999 $ 3,137,090 503,685 $ 2,928,431 — 135,138 63,683 $ 3,127,252 $ (2,686) $ 9,838 272,912 273,835 $ 270,226 $ 283,673 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff's budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County's corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and custodial funds of the Sheriff's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government -wide financial statements and related disclosures, including management's discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2021 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No.34, Basic Financial Statements — and Management's Discussion and Analysis —for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Annual Comprehensive Financial Report. 12 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated general fund balance is carried forward. The fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Sheriff considers revenues to be available if they are collected within 60 days after year-end with the exception of grants, which have a period of availability of one year. Grants are recognized as revenue as soon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Substantially all of the Sheriff's funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, money must be expended on the specific purpose or project before any amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures incurred. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the "susceptible to accrual" criteria are met. Other revenue is recognized as earned and becomes measurable and available to pay liabilities of the current period. 13 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has three major governmental funds: General Fund — The general fund is used to account for the general operations of the Sheriff and includes all transactions which are not accounted for in another fund. Grant Special Revenue Fund — This fund is used to account for the proceeds of federal and state grant revenues that are legally restricted to specified purposes. It also includes funds donated to the Collier County Sheriff's Office. Donated funds are used in accordance with how each donor designates the use of funds. The majority of donated funds are usually designated for youth programs, however, funds have also been donated for officer safety, use by specific districts/substations for community activities, or other programs/activities in the community. Prisoner Welfare Fund — This fund is used to account for the proceeds of inmate -related services and is legally restricted to specified purposes, which benefit the inmate population. The Sheriff also has the following non -major funds: Reported as Other Non -major Special Revenue Funds Confiscated Trust Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are generally used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. Civil Citation — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. 14 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Education Trust Fund— This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911— This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Domestic Violence Training Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 938.08. Funds are used to defray of incarcerating persons sentenced under Florida Statute 741.283 and to provide additional training to law enforcement personnel in combating domestic violence. Federal Equitable Sharing Fund — The revenue from this fund is the result of joint investigations with federal agencies that result in the equitable sharing of the net proceeds of the forfeiture. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. Fiduciary Funds Fiduciary Funds — Private -Purpose Trust Fund — This fund is used to account for assets held by the Sheriff as an agent for individuals participating the Sheriff's flexible -spending plan. This fund is accounted for using the accrual basis of accounting. Fiduciary Funds — Custodial Funds — These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Custodial funds are custodial in nature. Custodial funds are accounted for using the accrual basis of accounting. For Fiscal Year Ending September 30, 2021, the Collier County Sheriff's Office adopted GASB 84 Fiduciary Activities reporting standards. During this implementation, the financial statements were restated which created a beginning fiduciary net position as of October 1, 2020 in the amounts of $272,912 in the Private -Purpose Trust Fund and $273,835 in the Custodial Funds. 15 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 Proprietary Fund Internal Service Fund — This fund is used to account for the health and dental insurance services provided to departments and retirees of the Sheriff on a cost -reimbursement basis. Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis 1. Summary of Significant Accounting Policies (continued) of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Sheriff invests funds throughout the year with Florida PRIME, an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. Florida PRIME is considered a qualifying external investment pool that meets all the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the Sheriff's position in the pool is the same as the value of the pool shares. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2021, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 4.4% of Florida PRIME's portfolio at September 30, 2021. In accordance with GASB Statement No. 79, as a participant in a qualifying external investment pool, the Sheriff should disclose the presence of any limitations or restrictions on withdrawals such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool's authority to impose liquidity fees or redemption gates in the notes to the financial statements. With regards to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing 16 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 Committee, the Investment Advisory Council, and the Participant Local Government Advisory council. The Trustees shall convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue any such measures 1. Summary of Significant Accounting Policies (continued) before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days." With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. At September 30, 2021, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 2,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. 17 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. 1. Summary of Significant Accounting Policies (continued) Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non -spendable fund balances as of September 30, 2021. Spendable fund balances are classified based on a hierarchy of the Sheriff's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned, and unassigned. The Sheriff's fund balances for the Grant Special Revenue Fund, and Prisoner Welfare Fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund and Prisoner Welfare Fund are constrained for specific purposes that are externally imposed by donors, grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reports as restricted fund balances. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Sheriff's annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the proceeds from leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare fund does not have a legally adopted budget. MV Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 19 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 3. Cash, Cash Equivalents and Investments At September 30, 2021, the carrying value of the Sheriff's cash, cash equivalents, and investments was as follows: Credit Type Maturity Carrying Value Rating Cash on hand N/A $ 21,931 N/A Demand deposits N/A 19,292,806 N/A Local government surplus funds trust fund: Florida Prime (SBA) N/A 799,089 Aaa Total cash and cash equivalents $ 20,113,826 Money Market N/A 78,690 Not rated Federal Home Loan Bank 1/15/2025 4969690 AA+ Federal Home Loan Bank STEP 1/29/2026 2479510 AA+ Federal Home Loan Bank 1/29/2026 2479068 AA+ Federal Home Loan Bank 2/26/2026 4959325 AA+ Federal Home Loan Bank STEP 2/18/2026 4949800 AA+ Federal Home Loan Bank STEP 3/23/2026 498,210 AA+ Federal Home Loan Bank 3/28/2025 498,750 AA+ Federal Farm Credit Bank 8/3/2026 99,111 AA+ Federal Farm Credit Bank 9/16/2025 495,455 AA+ Federal Farm Credit Bank 9/l/2026 494,615 AA+ Federal Farm Credit Bank 3/28/2024 498,470 AA+ Federal Farm Credit Bank 10/15/2024 497,890 AA+ Federal Farm Credit Bank 11/30/2023 549,879 AA+ Federal Farm Credit Bank 1/13/2025 392,136 AA+ Federal Farm Credit Bank 2/4/2025 246,631 AA+ Federal Farm Credit Bank 2/10/2025 498,065 AA+ Federal Home Loan Mortgage Corp. 7/30/2026 123,950 Aaa Federal Home Loan Mortgage Corp. 6/23/2026 495,565 Aaa Federal Home Loan Mortgage Corp. 1/7/2026 350,836 Aaa Federal Home Loan Mortgage Assn. 11/25/2025 494,830 AA+ Certificate of Deposit 4/4/2022 246,000 Not Rated Certificate of Deposit 4/4/2022 246,000 Not Rated Treasury Note 4/15/2022 505,900 AA+ Treasury Note 5/15/2022 506,405 AA+ Treasury Note 2/28/2022 503,515 AA+ Treasury Note 12/31/2021 476,853 AA+ Treasury Note 6/15/2023 500,115 AA+ Treasury Note 6/30/2022 400,124 AA+ Treasury Note 8/31/2022 325,075 AA+ Total Investments 12,004,463 Total cash, cash equivalents and investments $ 32,118,289 *Credit ratings are Standard & Poor ratings except for FHLMC and Florida Prime which are Moody ratings. 20 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 3. Cash, Cash Equivalents and Investments (continued) The total cash, cash equivalent and investments balances at September 30, 2021, were as follows: General fund Grant special revenue fund Prisoner welfare fund Internal service fund Custodial funds Custodial Credit Risk $ 12,661,812 1,583,722 2,894,784 14,382,313 595,658 $ 32,118,289 At September 30, 2021, the Sheriff's demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Employer Benefits Trust (FSEBT) and are administered by FSEBT. FSEBT's policy requires execution of a third - party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff's name. Credit Risk The Sheriff's policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff's Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest -bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the U.S. Treasury. 21 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 3. Cash, Cash Equivalents and Investments (continued) Credit Risk (continued) Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2021, the Sheriff had $799,089 invested in Florida PRIME. Florida PRIME is rated "Aaa" by Moody's Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Concentration of Credit Risk The Sheriff's investments are included in the internal service fund which is used to account for the Sheriff's self -insured health plan. FSEBT administers the investments for the Sheriff's self -insured health plan and has an investment policy that allows for the investment of funds that exceed one month's required funding by more than $100,000. Investments can be made in government securities. The Sheriff's portfolio managed by FSEBT includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits that are not managed by FSEBT and are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff's portfolio invested in FSEBT is detailed as follows, at September 30, 2021: Money Market Treasury Note Certificate of Deposit Federal Home Loan Mortgage Corp. Federal Home Loan Mortgage Assn. Federal Home Loan Bank Federal Farm Credit Bank Total % of Portfolio 1% 27% 4% 8% 4% 25% 31% 100% 22 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 3. Cash, Cash Equivalents and Investments (continued) Fair Value Measurements The Sheriff categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Sheriff has the following recurring fair value measurements as of September 30, 2021: • U.S. Treasury Notes classified as level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. • U.S. Agency obligations classified as level 2 of the fair value hierarchy are valued using quoted prices for similar assets in active markets. 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at acquisition value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. 23 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 4. Capital Assets (continued) The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: Governmental Activities Capital assets not depreciated: Construction in Progress Total capital assets not depreciated Capital assets depreciated : Machinery and equipment Total capital assets depreciated Less accumulated depreciation: Machinery and equipment Total Accumulated depreciation Total Depreciable capital assets, net Total Governmental Activities capital assets, net 5. Long -Term Liabilities October 1, Deductions/ September 30, 2020 Additions Reclassifications 2021 $ 2,434,481 $ 2,195,401 $ (2,260,658) $ 2,369,224 2,434,481 2,195,401 (2,260,658) 2,369,224 102,390,957 17,385,262 (7,542,083) 112,234,136 102,390,957 17,385,262 (7,542,083) 112,234,136 (65,073,350) (13,018,985) 7,542,083 (70,550,252) (65,073,350) (13,018,985) 7,542,083 (70,550,252) 37,317,607 4,366,277 41,683,884 $ 39,752,088 $ 6,561,678 $ (2,260,658) $ 44,053,108 The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2020 Additions Reclassifications 2021 Compensated Absences $21,837,448 $4,561,192 ($3,806,720) $ 22,591,920 Of these liabilities, approximately $1,050,000 is expected to be paid during the fiscal year ending September 30, 2022. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 24 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 5. Long -Term Liabilities continued The Sheriff leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Sheriff's leases can be found in the Collier County Annual Comprehensive Financial Report or County -wide financial statements. Leases entered into by the Sheriff are included as other financing sources and capital outlay expenditures in the Statement of Revenues, Expenditures, and Changes in Fund Balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the Statement of Revenues, Expenditures, and Changes in Fund Balance as they are incurred. During the year ended September 30, 2021, the Sheriff entered into leases in the amount of $202,222. During the year ended September 30, 2021, the Sheriff's principal and interest payments on leases totaled $174,256. 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2021, were as follows: General Fund Prisoner Welfare Fund Internal Service Fund Other non -major special revenue funds Custodial funds Total Due From Due To $ 430,642 28,729 1,200,000 $ 1,659,371 $ 1,200,000 92,191 325,630 41,550 $ 1,659,371 Interfund receivables and payables generally represent recurring activities between funds. 25 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 7. Related Party Transactions The Board provided funding for the Sheriff for the year of $206,622,700. At September 30, 2021, the Sheriff had a payable due to the Board of $90,273 comprised of the following: General fund: Distributions of excess appropriations $ 44,199 Distribution of interest collected 10,851 Miscellaneous payables 35,223 Total $ 90,273 Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $482,067 at September 30, 2021. 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 26 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 8. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSC) — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. • Renewed Membership Class —Members who retired from July 1, 1991 through June 30, 2010, and are reemployed in a regularly established position with a covered employer, upon vesting again, are eligible for an additional retirement benefit based on service as a renewed member. Retirees of the FRS Investment Plan who are employed on or after July 1, 2017 are eligible for renewed membership in the Investment Plan. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while 27 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 8. Pension Plans (continued) Plan Description (continued) continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in - line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. WV Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 8. Pension Plans (continued) Benefits Provided (continued) Retiree Health Insurance Subsidy Prozram Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2021, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. 29 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 8. Pension Plans (continued) Benefits Provided (continued) As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 30 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 8. Pension Plans (continued) Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff's contributions made to the plans during the years ended September 30, 2021, 2020, and 2019 were $20,409,973, $19,677,937, and $18,763,457, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's annual comprehensive financial report. 31 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). The liability, expense, deferred outflows of resources and deferred inflows of resources for OPEB, calculated in accordance with GASB Statement No. 75, are reported in the financial statements of the County. Plan Description The Sheriff administers a single -employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for retirees who have six years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 26% for both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 22% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. Participant Data At September 30, 2021, the Sheriff's plan participation consisted of: Active employees 1,150 Inactive employees or beneficiaries currently receiving benefit payments 141 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay -as -you go basis. No trust or custodial fund has been established for the plan. 32 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 9. Other Postemployment Benefits (continued) Total OPEB Liability The Sheriff's OPEB liability of $28,169,914 was measured as of September 30, 2021, and was determined by an actuarial valuation as of October 1, 2020. The following table shows the changes in the Sheriff's total OPEB liability for the year ended September 30, 2021. Total OPEB Liability Balance, as of October 1, 2020 $ 27,920,433 Changes: Service cost 777,037 Interest 448,520 Differences between expected and actual experience 451 Changes in assumptions or other inputs 353,427 Benefit payments (1,329,954) Net changes 249,481 Balance, as of September 30, 2021 $ 28,169,914 The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Total OPEB Liability 1% Decrease Discount Rate 1% Increase 0.50% 1.50% 2.50% $ 30,800,891 $ 28,169,914 $ 25,840,363 The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 % point lower (4% decreasing to 3%) or 1% point higher (6% decreasing to 5%) than the current healthcare cost trend rates: Healthcare rate sensitivity 1% Decrease Discount Rate 1% Increase (4% decreasing (5% decreasing (6% decreasing to 3%) to 4%) to 5%) Total OPEB Liability $ 25,637,156 $ 28,169,914 $ 31,082,145 33 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 9. Other Postemployment Benefits (continued) Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2021, the Sheriff's OPEB expense was $2,574,820. In addition the Sheriff reported deferred outflow of resources and deferred inflow of resources from the following sources: Description Differences between expected and actual experience Changes in assumptions Total Deferred Deferred Outflows of Inflows of Resources Resources $ 5,735,347 2,784,663 $ 8,520,010 $ 38,168 522,836 $ 561,004 Amounts reported as deferred inflows of resources and deferred outflows of resources as an increase/decrease to OPEB expense will be recognized as follows: Year beginning October 1 2021 2022 2023 2024 2025 Thereafter Actuarial Methods and Assumptions Deferred Outflows Deferred Inflows of Resources of Resources $ 1,536,775 $ 136,740 1,536,775 136,740 1,536,775 136,740 1,536,775 129,469 1,299,645 21,315 1,073,265 — Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. 34 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 9. Other Postemployment Benefits (continued) Actuarial Methods and Assumptions (continued) Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 1.5% (Based on 20 year AA municipal bond rate) 5% None None Mortality rates were based on the Pri-2012 Mortality Fully Generational tables using Projection Scale MP-2020. The following changes have been made since the prior year valuation: • The discount rate was changed from 1.6% to 1.5% • The healthcare cost trend rate was changed from 6% to 5% • The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2019 to Pri-2012 Mortality Fully Generational using Projection Scale MP-2020. 35 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 10. Self -Insurance Program The Sheriff's Office participates in the Statewide Florida Sheriff's Self -Insurance Fund (the Fund) for its professional liability insurance. The Fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers' compensation coverage. The Florida Sheriffs Workers' Compensation Self Insurance Program is a self-insurance program providing coverage for the first $1,000,000 of every claim. Reinsurance is purchased by the Program to cover claims exceeding $1,000,000 (or $500,000 or $350,000 where applicable, based upon occurrence year of claim) up to $18,000,000. Reinsurance coverage up to $20,000,000 for any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third -party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self -insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self -funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In FY21 there was one covered individual who had a higher deductible amount because of a history of high claims. This individual had a deductible of $1,185,000. Specific claim excess coverage for this individual is for claims exceeding $1,185,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriff's Office uses a Third -Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 202121 and 2020 are as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2020 $2,946,000 $26,017,032 ($26,062,032) $2,901,000 2021 $2,901,000 $30,590,007 ($30,255,007) $3,236,000 36 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2021 11. Commitments and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. Purchase Commitment On May 17, 2021, the Sheriff signed a Letter of Intent with Florida Bullet, Inc. to purchase several rounds of ammunition for $284,858.50 obligating the Sheriff to purchase this ammunition. Delivery of this ammunition is scheduled for January — March 2022. Payment is to be made within 30 days of delivery. On July 19, 2021, the Sheriff signed a Letter of Intent with Life Proof Boats by IMS to purchase a 31WC120-PRO Police Boat for $348,945.55 obligating the Sheriff to purchase this boat. Delivery of this boat is scheduled for June 2022. Payment is to be made within 30 days of delivery. 37 Collier County, Florida Sheriff Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios Total OPEB Liability Service cost Interest Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments Net change in total OPEB Liability Total OPEB Liability, beginning Total OPEB Liability, ending Covered -employee payroll Total OPEB Liability as a percentage of covered -employee payroll Notes to Schedule September 30, 2021 2021 2020 2019 2018 2017 $ 777,037 $ 555,065 $ 485,365 $ 520,082 $ 491,420 448,520 435,838 631,825 503,525 502,621 451 5,292,054 — 2,048,462 (83,607) 353,427 949,878 2,250,569 (898,977) — (1,329,954) (1,098,451) (1,074,207) (941,061) (871,353) 249,481 6,134,384 2,293,552 1,232,031 39,081 27,920,433 21,786,049 19,492,497 18,260,466 18,221,385 $ 28,169,914 $ 27,920,433 $ 21,786,049 $ 19,492,497 $ 18,260,466 $ 87,324,387 $ 85,054,216 $ 82,604,011 $ 80,473,682 $ 79,806,491 32.26% 32.83% 26.37% 24.22% 22.88% Changes in Assumptions: Change in the discount rate of 1.6% as of September 30, 2020 to 1.5% as of September 30, 2021. The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2019 to Pri-2012 Mortality Fully Generational Projection Scale MP-2020. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is completed, the County will present information for only those years for which information is available. Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position — Custodial Funds September 30, 2021 Total Civil Evidence Inmate Custodial Custodial Fund Custodial Fund Custodial Fund Explorers Funds Assets: Cash and cash equivalents $ 30,618 $ 203,521 $ 66,366 $ 24,927 $ 325,432 Due from individuals and businesses — — 5,165 5,165 Total assets $ 30,618 $ 203,521 $ 71,531 $ 24,927 $ 330,597 Liabilities: Due to other funds $ — $ — $ 41,550 $ — $ 41,550 Due to Other — — 5,374 — 5,374 Total liabilities — — 46,924 — 46,924 Fiduciary Net Position Restricted for individuals and businesses $ 30,618 $ 203,521 $ 24,607 $ 24,927 $ 283,673 39 Collier County, Florida Sheriff Combining Statement of Changes in Fiduciary Net Position - Custodial Funds Additions: Contributions: Individuals Fees collected for Other Governments Miscellaneous Total additions Deductions: Beneficiary Payments to Individuals Payment of Fees to Other Governments Payments to Other Entities Total deductions Year Ended September 30, 2021 Civil Evidence Inmate Custodial Fund Custodial Fund Custodial Fund Explorers Total Custodial Funds $ - $ - $ 2,920,527 $ 7,672 $ 2,928,199 198,452 - - - 198,452 - 10,439 - - 10,439 $ 198,452 $ 10,439 $ 2,920,527 $ 7,672 $ 3,137,090 $ - $ 11,632 $ 2,916,799 $ - $ 2,928,431 135,138 - - - 135,138 59,863 3,820 63,683 $ 195,001 $ 11,632 $ 2,916,799 $ 3,820 $ 3,127,252 Net Increase (Decrease) in Fiduciary Net Position $ 3,451 $ (1,193) $ 3,728 $ 3,852 $ 9,838 Fiduciary Net Position - Beginning of Year, as restated 27,167 204,714 20,879 21,075 273,835 Fiduciary Net Position - End of Year $ 30,618 $ 203,521 $ 24,607 $ 24,927 $ 283,673 M 0 Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Sheriff's basic financial statements, and have issued our report thereon dated February 26, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff's internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff s internal control. Accordingly, we do not express an opinion on the effectiveness of Sheriffs internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A member of CLA is an independent member of Nexia International, a leading, global network of independent 41 Nexia International accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. Honorable Kevin Rambosk Sheriff Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. �,�� LL- CliftonLarsonAllen LLP Naples, Florida February 26, 2022 42 0 Honorable Kevin Rambosk Sheriff Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2021, and have issued our report thereon dated February 26, 2022. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and our Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 26, 2022, should be considered in conjunction with this management letter. Prior Audit Findings 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 report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. A member of CLA is an independent member of Nexia International, a leading, global network of independent 43 Nexia International accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. Honorable Kevin Rambosk Sheriff Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(l)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. LLB CliftonLarsonAllen LLP Naples, Florida February 26, 2022 Clifton LarsonAllen LLP . CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff s (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. Management of the Sheriff is responsible for the Sheriff s compliance with the specified requirements. Our responsibility is to express an opinion on the Sheriff s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Sheriff complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Sheriff complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriffs compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 26, 2022 A member of CLA is an independent member of Nexia International, a leading, global network of independent 45 Nexia International accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 0 Honorable Kevin Rambosk Sheriff Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT We have performed the procedures enumerated below on the Collier County, Florida Sheriff's (Sheriff) policies and procedures as defined by the Sheriff over its investigative funds for the year ended September 30, 2021. The Sheriff is responsible for those policies and procedures. The Sheriff has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of policies and procedures as defined by the Sheriff over its investigative funds. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures and the associated findings are as follows: 1. We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2021 (the population sampled included transactions from October 1, 2020 through September 30, 2021), and performed the following procedures with respect to the Sheriff's policies and procedures over investigative funds: 2. We obtained the "Disbursement for Investigation" form and observed the form was properly completed and authorized by appropriate personnel. No exceptions were noted. 3. We obtained the "Purchase of Evidence/Information Voucher" and observed the form was properly completed to reflect the expenses incurred within the investigation procedures, the investigative expenditures were properly supported, and the use of funds was for authorized purposes. No exceptions were noted. 4. We observed the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed the amount deposited agreed to the amount returned per the "Receipt for Funds Received" form detail. No exceptions were noted. We were engaged by the Collier County, Florida Sheriff (Sheriff) to perform this agreed -upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Sheriffs policies and procedures over the investigative funds. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. A member of CLA is an independent member of Nexia International, a leading, global network of independent Nexia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International Honorable Kevin Rambosk Page 2 We are required to be independent of Collier County Sheriff (Sheriff) and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed -upon procedures engagement. This report is intended solely for the information and use of the Sheriff and the management of the Sheriff and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 16, 2021 EVA Collier County, Florida Supervisor of Elections Financial Statements and Supple Year Ended Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2021 Contents IndependentAuditors' Report ..........................................................................................................1 Financial Statements Balance Sheet — Governmental Funds.............................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balances — GovernmentalFunds.....................................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual— General Fund..................................................................................................................5 Notes to Financial Statements..........................................................................................................6 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards..............................................20 ManagementLetter........................................................................................................................22 Independent Accountants' Report ..................................................................................................24 0 Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Supervisor's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. ,,be, of NexiaCLA is an independent member of Nexia International, a leading, global network of independent ia International accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 1 Honorable Jennifer J. Edwards Supervisor of Elections Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2021, and the respective changes in financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2021, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated February 15, 2022 on our consideration of the Supervisor's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Supervisor's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisor's internal control over financial reporting and compliance. LLB CliftonLarsonAllen LLP Naples, Florida February 15, 2022 2 Collier County, Florida Supervisor of Elections Balance Sheet — Governmental Funds September 30, 2021 Grant Special General Revenue Total Assets Cash and cash equivalents $ 261,539 $ - $ 261,539 Accounts receivable 836 - 836 Total assets $ 262,375 $ - $ 262,375 Liabilities and fund balance Liabilities: Accounts payable $ 39,902 $ - $ 39,902 Accrued liabilities 63,094 - 63,094 Due to Collier County, Florida Board of County Commissioners 159,379 - 159,379 Total liabilities 262,375 - 262,375 Fund balances: Restricted - - - Total fund balances - - - Total liabilities and fund balances $ 262,375 $ - $ 262,375 See accompanying Notes to Financial Statements 3 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds Year Ended September 30, 2021 Revenues: Intergovernmental Interest Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of expenditures over revenues Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations: Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net chanize in fund balances Fund balances — beginning of the year Fund balances — end of the year See accompanying Notes to Financial Statements Grant Special General Revenue Total $ - $ 113,008 $ 113,008 - 13 13 - 113,021 113,021 2,497,875 3,553 2,501,428 1,479,427 109,516 1,588,943 99,084 - 99,084 2,731 - 2,731 213 - 213 4,079,330 113,069 4,192,399 (4,079,330) (48) (4,079,378) 27,338 - 27,338 4,168,500 - 4,168,500 (116,508) - (116,508) 4,079,330 - 4,079,330 - (48) (48) - 48 48 0 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual General Fund Year Ended September 30, 2021 Revenues Expenditures: General government: Personal services Operating Capital outlay Debt Service Principal Debt Service Interest Total expenditures Deficiency of expenditures over revenues Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations: Collier County, Florida Board of County Commissioners Total other financing sources Net change in fund balance Fund balance — beginning of the year Fund balance — end of the year See accompanying Notes to Financial Statements Variance With Final Budget Budget Positive Original Final Actual (Negative) 2,502,600 2,547,600 2,497,875 49,725 1,650,900 1,549,150 1,479,427 69,723 15,000 71,750 99,084 (27,334) - - 2,731 (2,731) - - 213 (213) 4,168,500 4,168,500 4,079,330 89,170 (4,168,500) (4,168,500) (4,079,330) 89,170 - - 27,338 27,338 4,168,500 4,168,500 4,168,500 - - - (116,508) (116,508) 4,168,500 4,168,500 4,079,330 (89,170) 5 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections' budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor's office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Supervisor is considered to be financially accountable. The general operations of the Supervisor are funded by appropriations from the Collier County, Florida Board of County Commissioners (Board), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Supervisor's general fund. The special revenue fund of the Supervisor is not budgeted and is governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 0 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds: General Fund — The general fund is used to account for the general operations of the Supervisor and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund — The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements. 7 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unrnatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund -Type Definitions (continued) Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non -spendable fund balances as of September 30, 2021. Spendable fund balances are classified based on a hierarchy of the Supervisor's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor's fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements and have been presented in the fund financial statements in accordance with GASB Statement No. 54. 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor's annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor's total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor does not budget for the grant special revenue fund as it is funded by state grants and is governed by those documents. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. E Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 3. Cash and Cash Equivalents At September 30, 2021, the carrying value of the Supervisor's cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand Demand deposits Total cash and cash equivalents Custodial Credit Risk 200 N/A 261,339 N/A $ 261,539 At September 30, 2021, the Supervisor's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. 10 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 3. Cash and Cash Equivalents (continued) Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Supervisor and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2020 Additions Deductions 2021 Machinery and equipment $ 1,044,573 $ 71,746 $ (68,878) $ 1,047,441 Less accumulated depreciation (651,424) (143,112) 68,878 (725,658) Machinery and equipment, net $ 393,149 $ (71,366) $ - $ 321,783 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2020 Additions Deductions 2021 Accrued Compensated Absences $ 214,678 $ 124,610 $ (119,849) $ 219,439 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 5. Long -Term Liabilities (continued) Of these liabilities, approximately $120,691 is expected to be paid during the fiscal year ending September 30, 2022, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. The Supervisor leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Supervisor's leases can be found in the Collier County comprehensive annual financial report or County -wide financial statements. Leases entered into by the Supervisor are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2021, the Supervisor entered into a lease in the amount of $27,338. During the year ended September 30, 2021, the Supervisor's payments of principal on leases totaled $2,731. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. 12 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Background (continued) Essentially all regular employees of the Supervisor are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class — Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class — Members who hold specified elective offices in local government. Senior Management Service Class (SMSQ — Members in senior management level positions. Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. 13 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 14 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in - line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 15 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2021, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Supervisor employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. 16 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Supervisor. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump - sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor's contributions made to the plans during the years ended September 30, 2021, 2020, and 2019, were $181,001, $154,299, and $137,524 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report. 17 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 7. Related -Party Transactions For the year ended September 30, 2021, the Board provided funding for the Supervisor that amounted to $4,168,500. At September 30, 2021, the Supervisor had a payable due to the Board of $159,380 comprised as follows: Distribution of excess appropriations $ 116,508 Distribution of interest earnings 1,404 Amounts due for various services 41,467 Total due to Board of County Commissioners $ 159,379 8. Risk Management Collier County, Florida (County) is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self - insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County's self-insurance program. During the year ended September 30, 2021, the Supervisor was charged $358,423 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers' compensation and has purchased excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $300,000 per claim for general liability, public official errors and omissions, automobile liability, and crime coverage and has purchased excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2021 8. Risk Management (continued) The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $1,000,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Supervisor participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor's grants. Transfers were not required for the year ending September 30, 2021. 19 0 Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Supervisor's basic financial statements, and have issued our report thereon dated February 15, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor's internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. ,,be, of NexiaCLA is an independent member of Nexia International, a leading, global network of independent ia International accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 20 Honorable Jennifer J. Edwards Supervisor of Elections Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida February 15, 2022 21 0 Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements Clifton LarsonAllen LLP CLAconnect.com MANAGEMENT LETTER We have audited the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the fiscal year ended September 30, 2021 and have issued our report thereon dated February 15, 2022. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 15, 2022, should be considered in conjunction with this management letter. Prior Audit Findings 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 report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. ,,be, of NexiaCLA is an independent member of Nexia International, a leading, global network of independent ia International accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 22 Honorable Jennifer J. Edwards Supervisor of Elections Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. LLB CliftonLarsonAllen LLP Naples, Florida February 15, 2022 23 Clifton LarsonAllen LLP . CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined the Collier County, Florida Supervisor of Elections' (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2021. Management of the Supervisor is responsible for the Supervisor's compliance with the specified requirements. Our responsibility is to express an opinion on the Supervisor's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Supervisor complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Supervisor complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor's compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 15, 2022 ,,be, of NexiaCLA is an independent member of Nexia International, a leading, global network of independent ia International accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. 24 Collier County, Florida Tax Collector Financial Statements and Suppler Year Ended Collier County, Florida Tax Collector Financial Statements and Other Reports Year Ended September 30, 2021 Contents IndependentAuditors' Report ..........................................................................................................1 Financial Statements Balance Sheet — General Fund......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance— General Fund.............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — General Fund.............................................................................5 Statement of Fiduciary Net Position — Custodial Fund.................................................................6 Statement of Changes in Fiduciary Net Position — Custodial Fund..............................................7 Notesto Financial Statements.......................................................................................................8 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................25 ManagementLetter........................................................................................................................27 Independent Accountants' Report ..................................................................................................29 0 Honorable Rob Stoneburner Tax Collector Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Tax Collector, Collier County, Florida (Tax Collector), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Tax Collector's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. A me CLA is an independent member of Nexia International, a leading, global network of independent Nexia ia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International g g Honorable Rob Stoneburner Tax Collector Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2021, and the respective changes in financial position for the year then ended and the budgetary comparison for the general fund thereof for the year ended September 30, 2021, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2021, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 8, 2022 on our consideration of the Tax Collector's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Tax Collector's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida February 8, 2022 2 Collier County, Florida Tax Collector Balance Sheet — General Fund Year Ended September 30, 2021 Assets Cash and cash equivalents Accounts receivable Due from Collier County, Florida Board of County Commssioners Prepaid rent Prepaid expense Security deposit Total assets Liabilities and fund balance Liabilities: Accounts payable Due to Collier County, Florida Board of County Commissioners Due to other governmental agencies Other current liabilities Total liabilities Fund balance Total liabilities and fund balance See accompanying Notes to Financial Statements. $ 11,002,007 36 481 16,024 2,097 14,868 $ 11,035,513 $ 825,962 8,519,964 1,100,490 589,097 11,035,513 $ 11,035,513 3 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2021 Revenues: Commissions and fees $ 26,107,763 Miscellaneous 5,224,266 Total revenues 31,332,029 Expenditures: General government: Personal services 12,170,963 Operating 2,025,204 Capital outlay 9,403,376 Debt Service - Principal 216,859 Debt Service - Interest 39,461 Total expenditures 23,855,863 Excess of revenues over expenditures 7,476,166 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (6,375,976) Distribution of excess commissions and fees to other governmental agencies (1,100,190) Total other financing uses (7,476,166) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year $ - See accompanying Notes to Financial Statements. 0 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual General Fund Year Ended September 30, 2021 Revenues: Commissions and fees Miscellaneous Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt Service - Principal Debt Service - Interest Total expenditures Balance of revenues over expenditures Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions and fees to other governmental agencies Total other financing uses Net change in fund balance Fund balance, beginning of year Fund balance, end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 25,423,200 $ 25,423,200 $ 26,107,763 $ 684,563 5,239,800 5,239,800 5,224,266 (15,534) 30,663,000 30,663,000 31,332,029 669,029 12687,363 12,535,156 12,170,963 364,193 2:804,265 2,385,542 2,025,204 360,338 8,832,446 9,403,376 9,403,376 - - - 216,859 (216,859) - - 39,461 (39,461) 24,324,074 24,324,074 23,855,863 468,211 See accompanying Notes to Financial Statements. 6,338,926 6,338,926 7,476,166 1,137,240 (5,406,092) (5,406,092) (6,375,976) (969,884) (932,834) (932,834) (1,100,190) (167,356) (6,338,926) (6,338,926) (7,476,166) (1,137,240) 5 Collier County, Florida Tax Collector Statement of Fiduciary Net Position Custodial Fund September 30, 2021 Assets Cash and cash equivalents Accounts receivable Total assets Liabilities Due to other governmental agencies Due to individuals and businesses Total liabilities Fiduciary Net Position See accompanying Notes to Financial Statements. $ 5,096,654 20,284 5,116,938 5,027,369 89,569 5,116,938 0 Collier County, Florida Tax Collector Statement of Changes in Fiduciary Net Position Custodial Fund September 30, 2021 Additions Tax Collections for Other Governments License and Fee Collections for Other Governments Miscellaneous Total Additions Deductions Payments of Tax to Other Governments Payments of Licenses and Fees to Other Governments Total Deductions Change in Fiduciary Net Position Fiduciary Net Position - Beginning of Year Fiduciary Net Position - End of Year See accompanying Notes to Financial Statements. $ 710,680,245 41,312,453 130,244 752,122,942 k 710,680,245 41,442,697 752,122,942 7 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector's operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector's office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector's financial statements include only the funds of the Tax Collector's office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Tax Collector. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. n. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheets. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector's only governmental fund is the general fund. The general fund is used to account for the general operations of the Tax Collector and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Tax Collector's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the "susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. 0 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Custodial funds — Fiduciary funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Custodial funds are accounted for using the accrual basis of accounting. Refund of "Excess Fees" Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use -transfer out in the accompanying financial statements. Compensated Absences All full-time, non-exempt employees of the Tax Collector are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave. Exempt employees do not accrue sick time, however, many of them have a balance that will remain until they terminate employment, and vacation accrual is the same for both classes of employees. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. 10 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Florida Statutes, Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. Chapter 197, Florida Statutes, governs property tax collections as follows: Current Taxes All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1 % for payment in February. Unpaid Taxes — Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. The Tax Collector must receive payment before the certificates are delivered. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tax Deeds Two years after the purchase of a tax certificate the owner may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. 11 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these financial statements requires management of the Tax Collector to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. New Accounting Standard During the year ended September 20, 2021, the Collier County Tax Collector implemented GASB Statement No. 84, "Fiduciary Activities". The goal of the statement is to improve financial reporting by establishing specific criteria for identifying activities that should be reported as fiduciary activities. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The requirements of GASB 84 are effective for reporting periods beginning after December 15, 2019. A statement of fiduciary net position and a statement of changes in fiduciary net position are required to be presented for these activities. This Statement describes four fiduciary funds that should be reported: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private -purpose trust funds, and (4) custodial funds (formerly agency funds). The implementation of the pronouncement did not require the restatement of the September 30, 2020 net position of the custodial funds. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector's annual budget. The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector's total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. 12 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 2. Budgetary Process (continued) Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 3. Cash At September 30, 2021, the carrying value of the Tax Collector's cash was as follows: Cash on hand Demand deposits 2021 Carrying Value $ 29,640 16,069,021 Total cash and cash equivalents $ 16,098,661 Such amounts are reported as $11,002,007 and $5,096,654 for 2021 in the general and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2021, the Tax Collector's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. 13 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 3. Cash (continued) Credit Risk The Tax Collector's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Tax Collector are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. 14 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2021: Capital assets not depreciated: Construction in progress Total assets not depreciated Infrastructure Improvements other than buildings Machinery and equipment Total capital assets Less accumulated depreciation: Total capital assets, net October 1, Deletions/ September 30, 2020 Additions Reclassifications 2021 $ 791,908 $ 9,403,376 $ (187,728) $ 10,007,556 791,908 9,403,376 (187,728) 10,007,556 21,988 - - 105,093 - - 1,886,435 - (69,823) 2,805,424 9,403,376 (257,551) 21,988 105,093 1,816,612 11,951,249 (1,722,128) (107,311) 69,823 (1,759,616) $ 1,083,296 $ 9,296,065 $ (187,728) $ 10,191,633 During the fiscal year ended September 30, 2021, costs related to completed leasehold improvements totaling $187,728 were transferred to Collier County, Florida. 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2020 Increase Decrease 2021 Accrued compensated absences $ 1,363,632 $ 681,581 $ (789,780) $ 1,255,433 Of these liabilities, approximately $868,000 is expected to be paid during the fiscal year ending September 30, 2022, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. 15 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Tax Collector are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 16 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. 17 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2021, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. 19 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) FRS Investment Plan (continued) As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. 20 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 6. Pension Plans (continued) FRS Investment Plan (continued) After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector's contributions made to the plans during the years ended September 30, 2021, 2020, and 2019 were $992,718, $843,840, and $768,338, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report or County -wide financial statements. 7.Other Postemployment Benefits (OPEB) In accordance with Section 112.0801, Florida Statutes, the Tax Collector participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 21 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 8. Related Party Transactions During the fiscal year ended September 30, 2021, the Board paid commissions and fees to the Tax Collector that amounted to $18,998,458. At September 30, 2021, the Tax Collector had a payable due to the Board of $8,519,964 comprised as follows: Distribution of unused commissions and fees Tax and fee collections due to the Board Total 9. Risk Management 2021 $ 6,375,976 2,143,988 $ 8,519,964 Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. The Tax Collector participates in the County's self-insurance program. During the year ended September 30, 2021 the Tax Collector was charged $3,182,343 by the County for participation in the risk management program. 22 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 9. Risk Management (continued) The County retains the first $500,000 per claim for workers' compensation and has purchased excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $300,000 per claim for general liability, public official errors and omissions, automobile liability and crime coverage and has purchased excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $1,000,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Collier County Tax Collector leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 - Leases. Detailed information about the Collier County Tax Collector's leases can be found in the Collier County Annual Comprehensive Financial Report or County -wide financial statements. Leases entered into by the Collier County Tax Collector are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. 23 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2021 10. Commitments and Contingencies (continued) Leases (continued) During the year ended September 30, 2021, the Collier County Tax Collector did not enter into any new leases. During the year ended September 30, 2021, the Collier County Tax Collector's payments on leases totaled $216,859. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector. 24 0 Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Rob Stoneburner Tax Collector Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Tax Collector, Collier County, Florida (Tax Collector), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Tax Collector's basic financial statements, and have issued our report thereon dated February 8, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector's internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A me CLA is an independent member of Nexia International, a leading, global network of independent Nexia ia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International g g 25 Honorable Rob Stoneburner Tax Collector Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Tax Collector's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. LLB CliftonLarsonAllen LLP Naples, Florida February 8, 2022 26 0 Honorable Rob Stoneburner Tax Collector Collier County, Florida Report on the Financial Statements Clifton LarsonAllen LLP CLAconnect.com MANAGEMENT LETTER We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector) as of and for the year ended September 30, 2021, and have issued our report thereon dated February 8, 2022. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated DATE should be considered in conjunction with this management letter. Prior Audit Findings 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 report. There were no such findings reported in the prior audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. A me CLA is an independent member of Nexia International, a leading, global network of independent Nexia ia accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. International g g 27 Honorable Rob Stoneburner Tax Collector Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. i CliftonLarsonAllen LLP Naples, Florida February 8, 2022 OPF Honorable Rob Stoneburner Tax Collector Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT We have examined the Collier County Tax Collector, Collier County, Florida's (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. Management of the Tax Collector is responsible for the Tax Collector's compliance with the specified requirements. Our responsibility is to express an opinion on the Tax Collector's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Tax Collector complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Tax Collector complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector's compliance with specified requirements. In our opinion, the Tax Collector complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. GAG cL�x��Llm,�. LLB CliftonLarsonAllen LLP Naples, Florida February 8, 2022 A me CLA is an independent member of Nexia International, a leading, global network of independent Nexia ia accounting and consulting firms. see nexia.com/member-firm-disclaimer for details. International g g 29 f0 4 4 {j .f 3 n� F- 3