IWSD Basic Financial Statements Years Ended 9/30/2021 & 2020 IMMOKALEE WATER&SEWER DISTRICT
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
TOGETHER WITH ADDITIONAL REPORTS
YEARS ENDED
SEPTEMBER 30,2021 AND 2020
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT 1-4
MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) I-VIII
BASIC FINANCIAL STATEMENTS
Statements of Net Position 5
Statements of Revenues,Expenses,and Changes in Net Position 6
Statements of Cash Flows 7
Notes to the Financial Statements 8-33
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
Schedule of Revenues,Expenses and Changes in Net Position-Budget
(Non-GAAP Budgetary Basis)and Actual with Reconciliation to GAAP
Basis-Year Ended September 30,2021 34-39
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Basic Financial Statements Performed
in Accordance with Government Auditing Standards 40-41
Independent Accountant's Report on Compliance with
Section 218.415,Florida Statutes 42
Independent Auditor's Report to Management 43-47
Management's Response to the Independent Auditor's Report to Management Exhibit 1
Florida Rules of the Auditor General-Rule 10.554(1)(i)6-8 Compliance-Unaudited Exhibit 2
TuscAN Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
"Company, PA
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Immokalee Water& Sewer District
1020 Sanitation Road
Immokalee,Florida 34142
Report on the Financial Statements
We have audited the accompanying basic financial statements of the business-type activities of
Immokalee Water& Sewer District(an independent special district)(the"District")as of and for
the years ended September 30, 2021 and 2020,and the related notes to the financial statements,
which collectively comprise the District's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America;this
includes the design, implementation,and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement,whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our 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 of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements,whether due to fraud or error. In making those risk assessments,the auditor considers
internal control relevant to the 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,
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane, Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090• Fax: (239)333-2097
Board of Commissioners
Immokalee Water& Sewer District
Page 2
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.
Opinion
In our opinion,the financial statements referred to above present fairly,in all material respects,the
respective financial position of the business-type activities of Immokalee Water&Sewer District
as of September 30,2021 and 2020, and the respective changes in financial position and cash
flows thereof, for the years then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages I-VIII 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-management's discussion and analysis (MD&A)in accordance with
auditing standards generally accepted in the United States of America,which consisted of inquiries
of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries,the basic financial statements,and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the required supplementary information-management's
discussion and analysis (MD&A)because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise Immokalee Water&Sewer District's basic financial statements. The required
supplementary information other than MD&A-budgetary comparison information- Schedule of
Revenues,Expenses and Changes in Net Position-Budget(Non-GAAP Budgetary Basis)and
Actual with Reconciliation to GAAP Basis-year ended September 30,2021 is presented for
purposes of additional analysis and is not a required part of the basic financial statements. The
required supplementary information other than MD&A-budgetary comparison information-
Board of Commissioners
Immokalee Water& Sewer District
Page 3
Schedule of Revenues,Expenses and Changes in Net Position-Budget(Non-GAAP Budgetary
Basis)and Actual with Reconciliation to GAAP Basis-year ended September 30, 2021 is the
responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves,and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion,the required supplementary
information other than MD&A budgetary comparison information-Schedule of Revenues,Expenses
and Changes in Net Position-Budget(Non-GAAP Budgetary Basis) and Actual with Reconciliation
to GAAP Basis-year ended September 30,2021 is fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the District's basic financial statements. The Exhibit 1 -Management's
Response to Independent Auditor's Report to Management and Exhibit 2-Florida Rules of the
Auditor General-Rule 10.554(1)(i)6-8 Compliance are not a required part of the basic financial
statements but are required by Government Auditing Standards and/or Rules of the Auditor General,
Section 10.554(i),respectively. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly,we do not express an opinion
or provide any assurance on it.
Other Reporting Required by Section 218.415, Florida Statutes
In accordance with Section 218.415,Florida Statutes,we have also issued a report dated March 30,
2022,on our consideration of Immokalee Water& Sewer District's compliance with provisions of
Section 218.415,Florida Statutes. The purpose of that report is to describe the scope of our testing
of compliance and the results of that testing,and to provide an opinion on compliance with the
aforementioned Statute. That report is an integral part of an audit performed in accordance with
Sections 218.39 and 218.415,Florida Statutes in considering Immokalee Water& Sewer District's
compliance with Section 218.415,Florida Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated March 30,
2022,on our consideration of the District's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws,regulations,contract and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
Board of Commissioners
Immokalee Water& Sewer District
Page 4
opinion on internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the
District's internal control over financial reporting and compliance.
/11(A1444)
Gp 01,
TUSCAN&COMPANY,P.A.
Fort Myers,Florida
March 30,2022
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
IMMOKALEE WATER& SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2021
The management of the Immokalee Water& Sewer District offers readers of our
financial statements the following narrative overview and analysis of our financial
activities for the year ended September 30, 2021.
Basic Financial Statements
Our basic financial statements are prepared using proprietary fund (enterprise fund)
accounting that uses the same basis of accounting as private-sector business enterprises.
The District is operated under one enterprise fund. Under this method of accounting, an
economic resources measurement focus and an accrual basis of accounting is used.
Revenue is recorded when earned and expenses are recorded when incurred. The basic
financial statements include a statement of net position, a statement of revenues, expenses
and changes in net position, a statement of cash flows, and a reconciliation of operating
profit (loss) to net cash provided by operating activities. These financial statements are
followed by notes to the financial statements. In addition to the basic financial
statements, this report also contains required supplementary information pertaining to
budgetary reconciliations.
The statement of net position presents information on the District's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position
of the District is improving or deteriorating.
The statement of revenues, expenses, and changes in net position reports the operating
revenues and expenses and nonoperating revenues and expenses of the District for the
fiscal year. The difference, the net income or loss, is combined with any capital grants to
determine the increase or decrease in net position for the fiscal year. The increase or
decrease, combined with the net position at the end of the previous year, total to the net
position at the end of the current fiscal year.
The statement of cash flows reports cash and cash equivalent activities for the fiscal year
resulting from operating activities, capital and related financing activities, noncapital and
related financing activities and investing activities. The net result of these activities added
to the beginning of the year cash balance, total to the cash and cash equivalent balance at
the end of the current fiscal year.
MDAI
IMMOKALEE WATER& SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2021
Condensed Financial Statement
Condensed financial information from the statements of net position and revenues,expenses and changes in net position
for the years ended September 30,2020 and 2021 are as follows:
September 30,
2020 2021
Current and other assets $ 19,162,962 $ 19,157,207
Capital assets,net 57,509,486 57,839,301
Total assets $ 76,672,448 $ 76,996,508
Current liabilities $ 3,526,538 $ 4,498,790
Long-term liabilities 31,071,201 30,187,762
Total liabilities 34,597,739 34,686,552
Net position:
Net Investment in capital assets 25,758,542 26,938,398
Restricted 3,321,903 3,247,717
Unrestricted 12,994,264 12,123,841
Total net position 42,074,709 42,309,956
Total liabilities and net position $ 76,672,448 $ 76,996,508
Operating revenue:
Water service $ 3,954,033 $ 4,096,083
Wastewater service 5,578,513 5,832,186
Meter service charges 790,679 826,307
Late fees 71,125 83,325
Reconnection/transfer fee 99,205 105,444
Miscellaneous revenue 135,117 285,718
Cross connection control fees 363,676 370,198
Total operating revenues 10,992,348 11,599,261
Operating expenses:
Water treatment and distribution expense 1,998,670 2,241,418
Wastewater treatment expense 1,851,581 1,976,012
Wastewater collection expense 801,188 940,465
Customer service and administrative expense 2,040,490 2,369,788
Maintenance 481,130 388,238
Total operating expenses,excluding depreciation 7,173,059 7,915,921
Depreciation 2,184,329 2,525,470
Total operating expenses,including depreciation 9,357,388 10,441,391
Operating profit(loss) 1,634,960 1,157,870
Net nonoperating revenue/(expense) (877,044) (1,049,507)
Profit(loss)before capital grants 757,916 108,363
Capital grants and contributions 1,160,227 126,884
Increase(Decrease)in net position 1,918,143 235,247
Beginning of year net position 40,156,566 42,074,709
End of year net position $ 42,074,709 $ 42,309,956
(Continued)
MDA II
IMMOKALEE WATER& SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2021
The information contained in the condensed financial information table is used as the
basis for the discussion presented on the following pages, surrounding the District's
activities for the fiscal year ended September 30, 2021.
Financial Highlights
• The District completed a rate study and adopted the related rate increase of 3%
per year for FY 2020-2022. Rate increases are effective on October 1, 2019,
October 1, 2020 and October 1, 2021.
• The District ended the year September 30, 2020, with a net position of
$42,074,709 of which$25,758,542 represented the net investment in capital assets
and $12,994,264 was unrestricted. The ending net position was $1,918,143 more
than the net position at the beginning of the year. This was primarily the result of
the implementation of the previous rate increases.
• The District ended the year September 30, 2021, with a net position of
$42,309,956 of which$26,938,398 represented the net investment in capital assets
and $12,123,841 was unrestricted. The ending net position was $235,247 more
than the net position at the beginning of the year. This was primarily the result of
the implementation of the rate increases.
• The District had profit before capital contributions, for the years ended September
30, 2020 and 2021 of$757,916 and$108,363, respectively.
• The District has minimized interest expense, because of utilizing low interest
bonds/loans for capital projects funded through USDA Rural Development.
These interest rates range from 2.25% to 5.125%. District projects are financed
through a combination of bonds, loans and grants with the highest grant ratio to
date being at 57% of the total project. The Series 2018 Bond had the lowest
interest rate ever received by the District at 2.25%.
• The District ended the year September 30, 2020 with cash and cash equivalents
and investments of approximately $16,971,903. However, only $12,274,927 of
this amount is available for operations, with the remainder of these assets being
restricted for specific purposes and unavailable for the District's general use.
• The District ended the year September 30, 2021 with cash and cash equivalents
and investments of approximately $16,918,945. However, only $12,266,422 of
this amount is available for operations, with the remainder of these assets being
restricted for specific purposes and unavailable for the District's general use.
• The statement of cash flows identifies the sources and uses of cash activity for the
fiscal year. For fiscal year 2020, cash and cash equivalents increased by $997,575
compared to the year ended September 30, 2019. This change resulted primarily
from the receipt of grant funds to fund the cost of a capital project. The servicing
of the District's debt (principal and interest) resulted in the spending of cash of
nearly$1,985,956.
• The statement of cash flows identifies the sources and uses of cash activity for the
fiscal year. For fiscal year 2021, cash and cash equivalents increased by $469,004
MDA III
IMMOKALEE WATER& SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2021
compared to an increase of$997,575 for the year ended September 30, 2020. This
change resulted primarily from the receipt of grant funds to fund the cost of a
capital project. The servicing of the District's debt (principal and interest) resulted
in the spending of nearly $1,971,032.
Revenue
As in previous years, the wastewater service revenues make up half or more of the
operating revenues, accounting for 51% in 2020 and 50% in 2021. Water revenue
accounted for 36% in 2020 and 35% in 2021. Meter service charges, late fee charges,
reconnection fees, and miscellaneous revenues also remained constant between the two
years. Cross connection control fees remained at 3 % in 2020 and 2021.
The District was successful in receiving an increase in the District boundaries by the
Florida Legislature, during the Spring 2005 session. This change in the boundaries is
expected to result in increased opportunities for new users, in future years. We will be
working on a revised capital improvement plan, in conjunction with the Immokalee
Master Plan,to identify the needs within the next fiscal year.
Expenses
Due to the significant investments the District has in capital assets, depreciation
continues to be one the largest operating expenses at 23-24%of total operating expenses
per year. Unlike the other expenses listed, depreciation is not a cash expense.
The first largest department, by expenses, is the administration department, which
consists of nine full time employees and one part-time employee. The related operating
expenses remained constant at 22% and 23% of total expenses in 2020 and 2021,
respectively. The largest expense, in this department, other than salaries and benefits are
engineering and legal fees.
The second highest department, by expenses, is the water treatment and distribution
department with twelve full time employees. The related operating expenses of 20% and
21% were 2020 and 2021, respectively. We are replacing meters that are under
registering, with new Neptune auto-read meters. In addition, all new residential services
are required to use the Neptune auto-read meters. This will reduce the need for additional
meter readers in the water department and will improve the efficiency and accuracy of the
meter reading process. 100% of the meters are now automated
The third largest department, by expenses, at 20% and 19% of total operating expenses is
for wastewater treatment, which remained constant between 2020 and 2021, respectively.
This department is one of the largest, with eight full time employees and one part-time
employee. One of the largest expenses, excluding salaries and benefits, in this department
MDA IV
IMMOKALEE WATER& SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2021
is electric, which accounted for over $167,000 and $200,000 in expenses in 2020 and
2021, respectively.
The next largest department by expenses is the wastewater collection department, which
consists of five full time employees. The related operating expenses were at 8% and 9%
in 2020 compared to 2021, respectively.
The smallest department is the maintenance department, which was created in fiscal year
2004 to reduce maintenance-related expenses from third-party vendors. It consists of six
full time employees. It accounts for 5% and 3% of total operating expenses in 2020 and
2021, respectively. Labor costs in this department, except for those relating to the
supervisor, are charged to the appropriate departments,based on the maintenance projects
they are working on.
Wages and benefits account for 42% and 37% of the total operating expenses in 2020 and
2021, making it the largest expense category. Depreciation expense accounts for 23%
and 24%, for 2020 and 2021, respectively.
The District continues to monitor costs. The District considers cost of living increases
during the budget cycle and provides merit increases based upon performance
evaluations. The District follows best practices for water and wastewater systems in
promoting employees who meet specified criteria for certification and licensing. The
District bids out contracts for major expenses, such as health insurance, property
insurance, residuals management and chemicals. The District has an arrangement with
Collier County Fleet Management allowing the District to access their fuel tanks, located
in Immokalee,to take advantage of bulk-usage savings.
General Fund Budgetary Highlights
Over the course of the 2021 fiscal year, the Board of Commissioners amended the
District budget. These budget amendments were done primarily to a) increase operating
revenue, and to b) increase operating expenses and capital funding primarily related to
the District's projects, and adjust designated funds.
Original to Final Budget Variance
For the fiscal year 2021 total operating revenues were increased by approximately
$158,000 more than originally budgeted, and total operating expenses, excluding
depreciation expense, were decreased by nearly $200,000.
Capital outlay—capital outlay was increased by nearly$800,000.
MDA V
IMMOKALEE WATER& SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2021
Final Budget to Actual Variance
For the fiscal year 2020 total operating revenue was approximately $152,000 more than
budgeted.
Capital Assets
The District's net capital assets as of September 30, 2020 and 2021 amounted to
$57,509,486 and $57,893,301 (net of accumulated depreciation), respectively. This
investment in capital assets includes land, construction in progress, buildings and
improvements,water and wastewater plants and systems, and machinery and equipment.
Net capital asset additions included the following for the years ended September 30:
2020 2021
Construction in progress $ 1,390,104 $ 2,449,349
Buildings and improvements - -
Water and wastewater plants and systems 589,848 330,922
Machinery and equipment 22,915 75,014
$ 2,002,867 $ 2,855,285
Construction in progress for 2020 was primarily for the clarifier project, Lift Station H and
Master Lift Station X8 and line relocation projects.
Construction in progress for 2021 was primarily for the clarifier project.
The District primarily acquires its assets with the proceeds from federal capital grants and
revenue bonds, supplemented by user fees. USDA Rural Development is the primary
source of proceeds, because they offer low interest loans for capital improvements. We
also received contributed capital in the form of new water and sewer infrastructure from
developers. New equipment purchases and a system expansion are part of the District's
capital improvement program. Capital purchases are acquired using bids, or Florida State
Contract prices.
MDA VI
IMMOKALEE WATER& SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2021
Debt
As of September 30, 2020, the District had $31,080,969 of revenue bonds outstanding. The
total amount outstanding for these categories of debt decreased, to reflect the principal
payments by the District of$901,000.
As of September 30, 2021, the District had $30,311,969 of revenue bonds outstanding. The
total amount outstanding for these categories of debt decreased, to reflect the principal
payments by the District of$769,000.
Unrestricted Net Assets
As of September 30, 2020, the District had designated $10,155,999 in unrestricted net
assets, as recommended by the auditor. The District designated $841,000 for emergencies,
$4,138,975 for operations, $464,495 for vehicle replacement, $337,557 for capital
equipment, and$4,373,972 for maintenance reserve.
As of September 30, 2021, the District had designated $10,744,661 in unrestricted net
assets, as recommended by their auditor. The District designated $941,631 for
emergencies, $3,813,925 for operations, $607,483 for vehicle replacement, $1,000,000 for
capital equipment, and$4,381,622 for maintenance reserve.
Upcoming Significant Changes or Impacts
Rate Increase: In fiscal year 2015, the District hired a rate consultant, PRMG, to determine
what rate increase was needed. The Board adopted rate increases of 3% on water and for
wastewater to go into effect on October 1, 2019, October 1,2020 and October 1, 2021.
Residential - There are several residential developments that are expected to impact the
revenues of the District during the next fiscal year.
Arrowhead PUD, which will consist of over 1,200 residential units at completion, has
completed the first phase of their water and wastewater infrastructure. The Crestview
Apartments Phase I & II (304 units) were completed and connected. The first and second
phase of approximately 125 single-family units were also completed. Building on these
homes had been delayed due to the impact of the nationwide housing market.
Habitat for Humanity continues to build homes in Immokalee. In December 2006, they
completed the infrastructure in the Independence Subdivision Phases II, with 167 homes.
Liberty PUD, with 162 single family homes has also been connected, to our system. They
have completed the work for the Faith PUD, which included an additional 175 homes; and
the Kaicasa PUD, which will consist of 280 homes.
MDA VII
IMMOKALEE WATER& SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2021
Other Residential:
The nearby Ave Maria University campus is expected to eventually impact Immokalee
with increased demand for low cost residential homes for workers. Discussions were held
in previous years with Lennar Homes regarding the possibility of 5,000 to 6,000 homes in
the Serenoa subdivision, however, that did not materialize following the nationwide slump
in housing prices. Barron Collier has since acquired that property, and they have not yet
indicated what they plan to use the property for. Collier Enterprises has withdrawn their
plans to build 400 homes near the Florida Tradeport.
Commercial
The EDC continues to market the Florida Tradeport, but has been unable to secure a key
industry for that location. Plans were previously approved for the CCAA USDA
Manufacturing Building at the airport, and that building is complete. Collier County Public
Schools completed construction on the new Bethune Education Center. Collier County
Parks completed the upgrade of their South Park Community Center. Immokalee continues
to attract economically viable businesses within its boundaries. IWSD installed water and
wastewater infrastructure to accommodate larger retail uses. Family Dollar has completed
a new building on New Market Road. IWSD continues to provide water and wastewater
services to the Seminole Tribe's casino and is working on an emergency interconnect
agreement for the residential component of the reservation. New commercial development
continues to be planned along the fringes of downtown Immokalee. Saint Matthews House
replaced their Thrift Store on Main Street. First Bank built a new facility on North 15th
Street.
IWSD continues to evaluate our wastewater operations. The District has just begun the
rehabilitation of three clarifiers.
The District continues to manufacture our own fertilizer branded "Organi Kalee" and
markets to agricultural uses.
The A/C and Undersized Water Lines Replacement project replaced and upgraded over 50
miles of water lines within Immokalee. The cost of the project was over $20,000,000 and
funded through the USDA.
Request For Information
This financial report is intended to provide an overview of the finances of the District for
those with an interest in this organization. Questions concerning any information within
this report, may be directed to the Executive Director of the District, 1020 Sanitation Road,
Immokalee, Florida 34142.
MDA VIII
IMMOKALEE WATER& SEWER DISTRICT
STATEMENTS OF NET POSITION
September 30, 2021 and 2020
2021 2020
ASSETS
CURRENT ASSETS
Cash $ 11,652,385 $ 11,138,928
Investments - CDs 614,037 1,135,999
Accounts receivable,net 735,906 641,044
Other receivables 86,052 36,956
Inventory 341,664 374,786
Prepaid expenses - 1,200
TOTAL CURRENT ASSETS 13,430,044 13,328,913
RESTRICTED ASSETS
Cash 4,652,523 4,696,976
Grant and assessment receivables 1,074,640 1,137,073
TOTAL RESTRICTED ASSETS 5,727,163 5,834,049
CAPITAL ASSETS
Capital assets not being depreciated:
Land 2,645,941 2,645,941
Construction in progress 1,820,071 964,893
Capital assets being depreciated:
Buildings and improvements 1,670,776 1,670,776
Water and wastewater plants and systems 88,725,161 86,800,068
Machinery and equipment 3,587,242 3,536,228
Less:
Accumulated depreciation (40,609,890) (38,108,420)
57,839,301 57,509,486
TOTAL ASSETS $ 76,996,508 $ 76,672,448
The accompanying notes are an integral part of this statement.
Page 5 of 47
2021 2020
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts and contracts payable $ 1,813,119 $ 840,224
Other accrued expenses 162,364 130,307
Capital lease payable, current portion 43,861 43,861
TOTAL CURRENT LIABILITIES 2,019,344 1,014,392
CURRENT LIABILITIES (Payable from Restricted Assets)
Revenue bonds payable, current portion 798,000 769,000
Loans payable- SRF, current portion 37,825 36,866
Accrued revenue bond interest 85,239 81,322
Retainage payable 46,541 178,509
Customer deposits 1,511,841 1,446,449
TOTAL CURRENT LIABILITIES
(Payable from Restricted Assets) 2,479,446 2,512,146
LONG-TERM LIABILITIES
Line of Credit(LOC) - -
Revenue bonds payable, net of current portion 29,513,969 30,311,969
Loans payable - SRF,net of current portion 387,954 426,093
Capital lease payable, net of current portion 65,793 109,654
Bond anticipation note 53,501 53,501
Accrued compensated absences 166,545 169,984
TOTAL LONG-TERM LIABILITIES 30,187,762 31,071,201
Commitments -
TOTAL LIABILITIES 34,686,552 34,597,739
NET POSITION
Net investment in capital assets 26,938,398 25,758,542
Restricted 3,247,717 3,321,903
Unrestricted 12,123,841 12,994,264
TOTAL NET POSITION 42,309,956 42,074,709
TOTAL LIABILITIES AND NET POSITION $ 76,996,508 $ 76,672,448
IMMOKALEE WATER& SEWER DISTRICT Page 6 of 47
STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN NET POSITION
Years ended September 30, 2021 and 2020
2021 2020
OPERATING REVENUES
Water service $ 4,096,083 $ 3,954,033
Wastewater service 5,832,186 5,578,513
Meter service charge 826,307 790,679
Late fees 83,325 71,125
Reconnect and transfer fees 105,444 99,205
Miscellaneous charges,fees and other income 285,718 135,117
Cross connection control fee 370,198 363,676
TOTAL OPERATING REVENUES 11,599,261 10,992,348
OPERATING EXPENSES
Water treatment and distribution 2,241,418 1,998,670
Wastewater treatment 1,976,012 1,851,581
Wastewater collection 940,465 801,188
Customer service and administrative 2,369,788 2,040,490
Maintenance 388,238 481,130
TOTAL OPERATING EXPENSES
PRIOR TO DEPRECIATION 7,915,921 7,173,059
Depreciation 2,525,470 2,184,329
TOTAL OPERATING EXPENSES 10,441,391 9,357,388
OPERATING PROFIT(LOSS) 1,157,870 1,634,960
NON-OPERATING REVENUES(EXPENSES)
Interest income 59,327 144,795
Gain(loss)on disposition of capital assets 7,200 -
Interest expense (1,124,908) (1,004,948)
Bad debt expense adjustment - (19,370)
Covid 19 expense (26,308) (33,166)
Other income 35,182 35,645
NET NON-OPERATING EXPENSES (1,049,507) (877,044)
PROFIT(LOSS)BEFORE CAPITAL
CONTRIBUTIONS 108,363 757,916
CAPITAL CONTRIBUTIONS
USDA-grants - 778,792
Customers 79,095 55,765
Developers 47,789 325,670
TOTAL CAPITAL CONTRIBUTIONS 126,884 1,160,227
INCREASE(DECREASE)IN NET POSITION 235,247 1,918,143
NET POSITION-Beginning of the year 42,074,709 40,156,566
NET POSITION-End of the year $ 42,309,956 $ 42,074,709
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT
STATEMENTS OF CASH FLOWS
Years ended September 30, 2021 and 2020
2021 2020
CASH FLOWS FROM(USED IN)OPERATING ACTIVITIES:
Cash received from customers $ 11,504,845 $ 11,107,153
Cash payments to suppliers and employees (6,880,086) (6,965,228)
NET CASH PROVIDED BY
OPERATING ACTIVITIES 4,624,759 4,141,925
CASH FLOWS FROM(USED IN)NONCAPITAL FINANCING:
Other income received 35,182 32,187
Other expenses paid(Covid 19) (26,308) (33,166)
NET CASH PROVIDED BY(USED IN)
NONCAPITAL FINANCING 8,874 (979)
CASH FLOWS FROM(USED IN)CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (2,987,253) (2,572,303)
Proceeds from sale of capital assets(gain) 7,200 -
Principal paid on revenue bonds (769,000) (901,000)
Principal paid on loans-SRF (37,180) (36,147)
Interest paid on bonds and other obligations (1,120,991) (1,004,948)
Proceeds from special assessment collections 78,283 78,420
Proceeds from bond anticipation note(BAN) - 53,501
Proceeds capital lease - -
Principal paid on capital lease (43,861) (43,861)
FEMA - 3,458
Capital contributions-USDA - 778,792
Membership/customer/developer connection fees/assessment 126,884 381,435
NET CASH PROVIDED BY(USED IN)CAPITAL
AND RELATED FINANCING ACTIVITIES (4,745,918) (3,262,653)
CASH FLOWS FROM(USED IN)
INVESTING ACTIVITIES:
Interest earned on investments 41,445 119,282
Purchase of certificate of deposit - -
Sale of certificate of deposit 539,844 -
NET CASH PROVIDED BY(USED IN)
INVESTING ACTIVITIES 581,289 119,282
NET INCREASE(DECREASE)IN
CASH AND CASH EQUIVALENTS 469,004 997,575
CASH AND CASH EQUIVALENTS-
BEGINNING OF YEAR 15,835,904 14,838,329
CASH AND CASH EQUIVALENTS-
END OF YEAR $ 16,304,908 $ 15,835,904
The accompanying notes are an integral part of this statement.
Page 7 of 47
2021 2020
RECONCILIATION OF OPERATING PROFIT TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
OPERATING PROFIT(LOSS) $ 1,157,870 $ 1,634,960
Adjustments to reconcile operating profit to
net cash provided by operating activities:
Depreciation(non cash) 2,525,470 2,184,329
Increase(decrease)in accrued compensated absences(non cash) (3,439) 20,910
(Increase)decrease in accts.receivable,net of bad debt expense (94,862) 50,411
(Increase)decrease in other receivables (49,096) (18,673)
(Increase)decrease in grant receivables (15,850) -
(Increase)decrease in inventory 33,122 (38,086)
(Increase)decrease in prepaid expenses 1,200 51,881
Increase(decrease)in accounts and contracts payable 972,895 171,889
Increase(decrease)in other accrued expenses 32,057 1,237
Increase(decrease)in customer deposits 65,392 83,067
TOTAL ADJUSTMENTS 3,466,889 2,506,965
NET CASH PROVIDED BY
OPERATING ACTIVITIES S 4,624,759 S 4,141,925
IMMOKALEE WATER& SEWER DISTRICT Page 8 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization
Immokalee Water& Sewer District (the "District")was created by Laws of Florida,
(Section) Chapter 78-494 on July 5, 1978, under the provisions of Florida Statute,
Chapter 153.53 and 189.031 for the purpose of providing water and sewer services
to Immokalee, an unincorporated area of eastern Collier County, Florida. The
District's enabling legislation was repealed,updated,reenacted, and codified by Laws
of Florida, Chapter 98-495 on May 28, 1998. On July 1, 2005,Laws of Florida,
Chapter 2005-298 amended Laws of Florida, Chapter 98-495 by expanding the
District's boundaries. On June 10, 2015, Laws of Florida, Chapter 2015-205
amended Laws of Florida, Chapter 98-495 to provide for salaries/honorariums for
elected District Board of Commissioner members up to $250 each per month.
On June 20, 2021, Laws of Florida, Chapter 2021-263 amended Laws of Florida,
Chapter 98-495 to allow Board member terms to be 4 years or until a successor is
appointed by the Governor.
The District owns, operates, maintains and regulates its water and sewer plants and
systems as an independent special district of the State of Florida. The District is
governed by a seven(7)member Board of Commissioners appointed by the
Governor of the State of Florida. The Board of Commissioners (the "Board")
administer the District, independent from any other local governing body and serve
staggered four(4)year terms.
Reporting Entity
Immokalee Water& Sewer District is financially independent of all other units of
government. It is responsible for financing its own activities and the payment of its
own debt. The Board of Commissioners (the "Board")has the responsibility to
employ management that is responsible for the day-to-day operations of the District.
The Board has absolute authority over all funds included in the entity. Immokalee
Water& Sewer District is not a component unit of any other governmental unit.
The District adheres to Statement of Governmental Accounting Standards Board
(GASB) Statement No. 14, "Financial Reporting Entity", as amended by GASB
Statement Number 39, "Determining Whether Certain Organizations Are Component
IMMOKALEE WATER& SEWER DISTRICT Page 9 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30,2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Reporting Entity, continued
Units" and GASB Statement No. 61, "The Financial Reporting Entity: Omnibus -An
Amendment of GASB Statements No. 14 and No. 34". These Statements require
the financial statements of the District(the primary government)to include its
component units, if any. A component unit is a legally separate agency for which the
primary government is financially accountable or organizations whose exclusion would
cause the financial statements to be misleading 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
District's board, impose its will on the organization, the existence of a financial
benefit/burden relationship or fiscal dependency. Based on this criteria, there are no
component units included or required to be included in the District's financial
statements.
The Immokalee Water& Sewer District adheres to the requirements of
Governmental Accounting Standards Board Statement Number 33 "Accounting and
Financial Reporting for Non-Exchange Transactions." As such, capital related grant
revenue is recorded as non-operating revenue and is reflected on the Statements of
Revenues, Expenses and Changes in Net Position.
The following is a summary of the significant accounting polices used in the
preparation of these financial statements:
The District adheres to the requirements of Governmental Accounting Standards
Board Statement Number 34, "Basic Financial Statement and Management's
Discussion and Analysis for State and Local Governments" (GASB 34). The
government-wide financial statements along with the notes to the financial statements
and the RSI, as noted below comprise the basic financial statements.
The basic financial statements of the District are comprised of the following:
-Government-wide financial statements
-Notes to the financial statements
-Required supplementary information other than MD&A
IMMOKALEE WATER& SEWER DISTRICT Page 10 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government-Wide Financial Statements
The government-wide financial statements (i.e.,the Statements of Net Position, the
Statements of Revenues, Expenses and Changes in Net Position and Statements of
Cash Flows) report information on all of the activities of the District and do not
emphasize fund types. These business-type activities comprise the primary
government. Business-type activities rely on user fees and charges to support its
activities rather than taxes and intergovernmental revenues. The purpose of the
government-wide financial statements is to allow the user to be able to determine if
the District is in a better or worse financial position than the prior year. The District
uses only one fund.
Government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange-like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets, and liabilities resulting from
nonexchange transactions are recognized in accordance with the requirements of
GASB Statement Number 33 "Accounting and Financial Reporting for Nonexchange
Transactions."
Amounts paid to acquire capital assets are capitalized as assets in the
government-wide financial statements,rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government-wide
financial statements,rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government-wide financial statements, rather than as
expenditures.
The Statements of Revenues, Expenses and Changes in Net Position demonstrates
the degree to which the direct expenses of a given function are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include: 1) charges to customers or
applicants who purchase,use or directly benefit from goods, services, or privileges
provided by a given function and 2) grants and contributions that are restricted to
meeting the operational or capital improvements of a particular function.
IMMOKALEE WATER& SEWER DISTRICT Page 11 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30,2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government-Wide Financial Statements, continued
Operating revenues are considered to be revenues generated by services performed
and/or by fees charged such as water and sewer usage, connection, inspection fees
and flow testing.
Budgetary Information
As required, the District uses only one fund to account for its activities and, therefore,
it is considered a major fund. The District has elected to report budgetary
comparison of its major fund as required supplementary information(RSI).
Fund Accounting
The District's financial practices are based upon fund accounting concepts. A fund is
defined as a fiscal and accounting entity with a self-balancing set of accounts,
recording cash and other financial resources, together with all related liabilities and net
assets (fund equity balances) and changes therein.
The accompanying financial statements reflect Business - Type Activities and are
classified as a single Proprietary Fund Type - Enterprise Fund. This fund accounts
for the cost of services provided by the District as well as the revenues earned by the
District.
Business-Type Activities-Proprietary Fund Type
Enterprise Fund-An enterprise fund is used to account for operations (1) that are
financed and operated in a manner similar to private business enterprises where the
intent of the governing body is that the costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or(2)where the governing body has
decided that periodic determination of revenues earned, expenses incurred, and/or
net income is appropriate for capital maintenance,public policy,management control,
accountability, or other purposes.
IMMOKALEE WATER& SEWER DISTRICT Page 12 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Measurement Focus
Proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, assets and liabilities associated with the
operation of these funds are included on the statements of net position. Proprietary
fund-type operating statements present increases (i.e. revenues)and decreases (i.e.
expenses) in total net position. Operating revenues and expenses result from
providing water distribution as well as wastewater collection and treatment to
members within the District's boundaries. Generally, other revenues and expenses
are treated as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the
District's policy to use restricted resources first, then unrestricted resources as they
are needed.
Basis of Accounting
The proprietary fund type is presented on the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recorded in the period earned and expenses
are recorded in the period the liability is incurred.
Budgetary Process
The District operates under a fixed budget for control purposes. The budget and
amendments, if any, are approved by the Board of Commissioners. The budget is
prepared on a Non-GAAP accrual basis, whereby items such as capital expenditures
and debt principal payments are budgeted as expenses.
The annual budget serves as the legal authorization for expenditures. Expenditures
cannot legally exceed the total amount budgeted. All budget amendments, which
change the legally adopted total appropriation, are approved by the Board.
The District follows these procedures in establishing budgetary data.
1. During the summer of each year, management submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
October 1. The operating budget includes proposed expenditures and the means
of financing them.
IMMOKALEE WATER& SEWER DISTRICT Page 13 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Budgetary Process, continued
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these financial statements, are as originally adopted
or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America, except as reflected in the
supplementary information and as noted above.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
The Board of Commissioners did amend the budget during the fiscal year ended
September 30, 2021 to decrease total budgeted net revenue by$1,736,355 and an
increase in budgeted expenses (including net non-operating revenue and expense)by
$1,736,355.
Cash
For the purpose of the Statements of Cash Flows, the District considers all highly
liquid investments, including both unrestricted and restricted, with a maturity of three
months or less,when purchased, to be a cash equivalent, in accordance with District
policy.
Accounts Receivable/Allowance for Doubtful Accounts
Receivables include user fees for water and wastewater services provided as part of
the operations by the District. The accounts receivable are recorded net of the
estimated allowance for doubtful accounts. The District operates using an allowance
and collection policy that ultimately provides for discontinuance of water service due
to nonpayment by the user. The policy also provides for application of the respective
user's security deposit upon certain criteria. Additionally, the policy requires a user
landlord to satisfy any outstanding user fees (tenant)prior to allowing services to a
future tenant for that landlord.
IMMOKALEE WATER& SEWER DISTRICT Page 14 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Inventory
Inventory consists of utility system parts and hardware supplies at year end. The
inventories are valued at cost,which approximates net realizable value. The method
used to determine the value of the inventory is the FIFO (first in-first out)method.
Capital Assets and Depreciation
Capital assets acquired by proprietary funds are reported in those funds at historical
cost or estimated historical cost if actual historical cost is not available.
Donated assets are reported at estimated fair market value at the time received.
Certain infrastructure-type fixed assets consisting of certain improvements such as
roads, curbs, gutters and lighting systems have not been capitalized, as the District
does not generally incur such expenditures. However, the systems' distribution and
collection lines and pumps are capitalized and depreciated as part of the overall
system. Assets acquired with a cost or fair value of$5,000 or more and a useful life
of 1 year or more are capitalized. Maintenance,repairs and minor renovations are
not capitalized. The acquisition of land and construction projects utilizing resources
received from Federal and State agencies are capitalized when the related
expenditure is incurred.
The capital assets are depreciated using the straight-line method of depreciation over
the following estimated useful lives:
Asset Years
Buildings/Plant and Plant Equipment 10-40
Capital Improvements, Distribution Lines 5-40
Furniture, Fixtures and Equipment 3-20
Vehicles 3-7
Restricted Assets
These monies are restricted by the applicable debt covenants and grant agreements or
as customer deposits.
IMMOKALEE WATER& SEWER DISTRICT Page 15 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Vacation Leave
Accumulated unpaid vacation pay is accrued when incurred in the proprietary fund.
The method of accrual is in accordance with Statement of Governmental Accounting
Standards Board Number 16, "Accounting for Compensated Absences" (GASB
16). This Standard provides for the measurement of accrued vacation leave 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 such as FICA and retirement benefits only.
Accrued unused vacation is accrued and paid at termination. Accrued unused sick
time is not paid at termination.
Encumbrances
Encumbrance accounting,under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because at
present it is not considered necessary to assure budgetary control or to facilitate
effective cash planning and control.
Membership (Connection) Fees
Water(connection) service installation fees are dedicated for the system expansion
and are treated as contributed capital but recognized as revenue when received(due
to the District)by the District.
Income Taxes
The District, as a governmental unit, is exempt from income taxes under current
provisions of the Internal Revenue Code and Florida State Law.
Fund Equity
Grants, entitlements or shared revenues which are externally restricted for capital
acquisition or construction are treated as contributed capital but recorded as revenue
when due to the District. Contributed or donated fixed assets are also treated as
contributed capital but recorded as revenue when due the District. Reserved retained
earnings represent those portions of fund equity legally restricted by debt covenants
for current and future debt service.
IMMOKALEE WATER& SEWER DISTRICT Page 16 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Use of Estimates
The preparation of basic financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Reclassifications
Certain amounts in the financial statements have been reclassified to conform with the
current year presentation. These reclassifications had no effect on the results of
operations or net assets.
Subsequent Events
Subsequent events have been evaluated through March 30, 2022, which is the date
the basic financial statements were available to be issued.
Application of FASB Pronouncements to Proprietary Funds
In accordance with Governmental Accounting Standards Board(GASB) Statement
No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting", the District has
elected not to apply those FASB Statements and Interpretations issued after
November 30, 1989. Only GASB pronouncements issued after this date will be
adopted by the District.
Accounting Pronouncement GASB Statement No. 42
The District adheres to Government Accounting Standards Board Statement No. 42,
"Accounting and Financial Reporting for Impairment of Capital Assets and for
Insurance Recoveries" (GASB Statement No. 42). GASB Statement No. 42
establishes accounting and financial reporting standards for impairment of capital
assets.
IMMOKALEE WATER& SEWER DISTRICT Page 17 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Accounting Pronouncement GASB Statement No. 42, continued
A capital asset is considered impaired when its service utility has declined significantly
and unexpectedly. Governments are required to evaluate prominent events or
changes in circumstances affecting capital assets to determine whether impairment of
a capital asset has occurred. Such events or changes in circumstances that may be
indicative of impairment include evidence of physical damage, enactment or approval
of laws or regulations or other changes in environmental factors,technological
changes or evidence of obsolescence, changes in the manner or duration of a capital
asset, and construction stoppage. A capital asset generally should be considered
impaired if both(a)the decline in service utility of the capital asset is large in
magnitude and(b) the event or change in circumstance is outside the normal life cycle
of the capital asset.
The District incurred no capital asset impairment activity for the years ended
September 30, 2021 and 2020.
NOTE B - CASH AND INVESTMENTS
At September 30, 2021 and 2020, cash and cash equivalents (including both
restricted and unrestricted cash and cash equivalents)were $16,304,908 and
$15,835,904 respectively, including unrestricted cash on hand of$3,400 and
$3,400,respectively.
Deposits
The District's deposit policy allows deposits to be held in demand deposits, savings
accounts, certificates of deposit, direct obligations of the U.S. Treasury, Local
Government Surplus Trust Funds, direct obligations of Federal agencies and
instrumentalities and money market accounts. All cash deposits are held in qualified
public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for
Public Deposits Act."
IMMOKALEE WATER& SEWER DISTRICT Page 18 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE B - CASH AND INVESTMENTS, CONTINUED
Deposits, continued
Insured/ Bank Carrying
Collateralized Balance Amount
September 30, 2021
Unrestricted
Depository accounts $ 2,135,484 $ 2,135,484 $ 2,115,320
Money market 9,533,665 9,533,665 9,533,665
11,669,149 11,669,149 11,648,985
Restricted
Depository accounts 1,495,355 1,495,355 1,495,355
Money market 3,157,168 3,157,168 3,157,168
4,652,523 4,652,523 4,652,523
$ 16,321,672 $ 16,321,672 $ 16,301,508
September 30, 2020
Unrestricted
Depository accounts $ 763,039 $ 763,039 $ 779,310
Money market 10,356,218 10,356,218 10,356,218
11,119,257 11,119,257 11,135,528
Restricted
Depository accounts 1,460,184 1,460,184 1,460,184
Money market 3,236,792 3,236,792 3,236,792
4,696,976 4,696,976 4,696,976
$ 15,816,233 $ 15,816,233 $ 15,832,504
Unrestricted and Restricted Deposits
The District's deposits were categorized to give an indication of the level of risk
assumed by the District at year-end. All deposits were fully insured by Federal
Depository Insurance or collateral pursuant to the Public Depository Act(Florida
Statute 280). As such, the District resolved to abide by Florida Statute 218.415(17).
IMMOKALEE WATER& SEWER DISTRICT Page 19 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE B- CASH AND INVESTMENTS, CONTINUED
Restricted Deposits
Restricted deposits are required by the District's outstanding debt agreements as well
as grant and other agreements. Restricted deposits also include customer deposits.
Restricted deposits (carrying amounts) consist of the following at September 30:
2021 2020
Construction account $ 50,805 $ 112,310
Bond sinking fund reserve 2,238,746 2,422,057
Department of Environmental Protection-
Deep Well Injection Reserve 240,216 239,737
Customer deposits 1,492,855 1,457,684
Loan debt service 114,836 29,397
Special assessment-ArrowHead 464,012 409,735
Special assessment- SR 29 51,053 26,056
$ 4,652,523 $ 4,696,976
Investments
Florida Statutes and the District's investment policy authorize investments in
certificates of deposit (CD's). Certificates of deposit whose values exceed the
amount of the Federal Depository Insurance are collateralized pursuant to the Public
Depository Security Act of the State of Florida. The District had$614,037 and
$1,135,999 (bank and book balance)invested in certificates of deposit at September
30, 2021 and 2020,respectively. The CDs carried interest rates of 2.96% at
September 30, 2021. The CDs mature on December 4,2022.
NOTE C - ACCOUNTS RECEIVABLE,NET
Accounts receivable, net, consist of the following at September 30:
2021 2020
Customer receivables (water/sewer) $ 805,649 $ 710,787
Less allowance for doubtful accounts (69,743) (69,743)
Net receivables $ 735,906 $ 641,044
IMMOKALEE WATER& SEWER DISTRICT Page 20 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE D - GRANT AND ASSESSMENT RECEIVABLES
Grant and assessment receivables consisted of the following at September 30:
2021 2020
Grant receivable $ 15,850 $ -
Special Assessments 1,058,790 1,137,073
$ 1,074,640 $ 1,137,073
The District levied a special assessment of$1,060,900 on system users benefiting
from the system improvements (ArrowHead) funded by the $4,932,000 Series 2013
Revenue Bonds during the year ended September 30, 2014. The assessment
collections are restricted to principal reduction of the Series 2013 Revenue Bonds.
The assessment was initially levied through the Collier County Tax Collector on
November 1, 2013. The assessment is a one time assessment payable in full or over
20 years by the affected system users. The special assessment had the following
activity for the years ended September 30:
2021 2020
Balance, October 1, $ 690,330 $ 743,756
Assessment levied - -
Collections (53,377) (53,426)
$ 636,953 $ 690,330
The District levied a special assessment of$496,731 on system users benefiting from
system improvements on State Road 29 during the year ended September 30, 2019.
The assessment was initially levied through the Collier County Tax Collector on
November 1, 2018. The assessment is a one time assessment payable in full or over
20 years by the affected system users. The special assessment had the following
activity for the years ended September 30:
2021 _ 2020
Balance, October 1, $ 446,743 $ 471,737
Assessment levied - -
Collections (24,906) (24,994)
$ 421,837 $ 446,743
IMMOKALEE WATER& SEWER DISTRICT Page 21 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE E - CAPITAL ASSET ACTIVITY
The following is a summary of changes in capital asset activity for the year ended
September 30, 2021:
Balance Balance
October 1 Adjustments/ September 30
2020 Additions Retirements Reclassifications 2021
Capital Assets Not
Being Depreciated:
Land $ 2,645,941 $ - $ - $ - $ 2,645,941
Construction in Progress 964,893 2,449,349 - (1,594,171) 1,820,071
Total Capital Assets Not
Being Depreciated 3,610,834 2,449,349 - (1,594,171) 4,466,012
Capital Assets
Being Depreciated:
Buildings&Improvements 1,670,776 - - - 1,670,776
Water and Wastewater
Plant and Systems 86,800,068 330,922 - 1,594,171 88,725,161
Machinery&Equipment 3,536,228 75,014 (24,000) - 3,587,242
Total Capital Assets
Being Depreciated 92,007,072 405,936 (24,000) 1,594,171 93,983,179
Less Accumulated
Depreciation:
Buildings&Improvements (923,390) (43,670) - 15,765 (951,295)
Plant and Systems (34,775,180) (2,278,386) - (925,811) (37,979,377)
Machinery&Equipment (2,409,850) (203,414) 24,000 910,046 (1,679,218)
Total Accumulated Depreciation (38,108,420) (2,525,470) 24,000 - (40,609,890)
Capital Assets,Net $ 57,509,486 $ 329,815 $ - $ - 57,839,301
Related debt (30,900,903)
Net Investment in Capital Assets $ 26,938,398
IMMOKALEE WATER& SEWER DISTRICT Page 22 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE E - CAPITAL ASSET ACTIVITY, CONTINUED
The depreciation expense for the years ended September 30, 2021 and 2020 was
$2,525,470 and$2,184,329,respectively. During the years ended September 30,
2021 and 2020, the District continued construction on its system-wide
improvements.
During the year ended September 30, 2018, the District early implemented GASB
Statement No. 89, "Accounting for Interest Cost Incurred Before the End of a
Construction Period". The implementation of the pronouncement requires the interest
cost incurred before the end of a construction period be recognized as an expense in
the period in which the cost is incurred for financial statement prepared using the
economic resources measurement focus. As a result, no interest costs were
capitalized on the project for fiscal years ended September 30, 2021 and 2020.
During the year ended September 30, 2021,the District, however, settled a dispute
related to system improvements. As such,the District agreed to settle with the
vendor plus $155,297 in interest. The District expensed this cost.
NOTE F- RETIREMENT PLANS
Plan Description and Provisions
Section 401(a) Plan
The District historically offered all its employees the opportunity to participate in an
individual government employer-sponsored defined contribution 414(h) Money
Purchase Pick-Up Retirement Plan and Trust(the "Plan"). Effective January 1, 2009,
the District restated its retirement plan. As such,the restated plan qualifies as a
401(a)Money Purchase defined contribution plan. The Plan is administered by a
third party administrator. The employer funds substantially all the administrative costs
of the Plan.
The Plan allows all employees to participate after three (3)months creditable
employment. Employees who elect to participate must contribute three(3%)percent
of their gross wages, excluding overtime compensation,up to $3,000. If the
employee desires to defer more than$3,000 they can defer those amounts into the
available IRC Section 457 Plan. The employer is required to contribute six(6%)
percent of the respective participating employees' gross wages, excluding overtime
compensation. Employer contributions into the 401(a) Plan are only required for
those participating employees who contribute three(3%) of their gross wages, as
defined. During the years ended September 30, 2021, 2020, and 2019, the District
contributed 100% of its required contributions.
IMMOKALEE WATER& SEWER DISTRICT Page 23 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE F- RETIREMENT PLANS, CONTINUED
Plan Description and Provisions, continued
Section 401(a) Plan
The District's gross contributions (employer portion)to the Plan for the years ended
September 30, 2021, 2020 and 2019 were $148,649, $157,046, and$142,584
respectively. Employee contributions to the Plan were $82,610, $78,363 and
$73,939, respectively for the years ended September 30, 2021, 2020, and 2019,
respectively. There were no forfeitures used to reduce employer contributions.
Benefits available are limited to the value of the respective employee's individual
account. Individuals direct the investment of their individual account. Benefits vest at
a rate of twenty(20%)percent per year of creditable service and vest in full after five
years of creditable service. A creditable year of service is defined as a year in which
an eligible participant completes 1,000 hours of service. Employees immediately vest
in their contributions. Normal retirement shall be considered to be attainment of age
55 and completion of five(5) creditable years of service. Employees who fail to
complete five(5) years creditable service vest in their respective accounts at twenty
(20%)percent per completed year of creditable service. The Plan requires
retirement at April 1 following the date the participant reaches age 70 1/2. The Plan
provides that forfeitures of employer contributions by non-vested terminated
employees are to be used to offset future employer contributions. Therefore,
employer contributions made to employee accounts who fail to complete the
respective year revert back to the employer. Benefits available to the employee
from the Plan are those generated from the respective employees account. The
employees account may lose principal. The District has no liability for losses, if
any, incurred by the plan. Loans to participants are permitted from the participant's
specific account. Participants should refer to the complete plan document for
specific detail of the Plan.
Section 457 Plan
Effective November 1, 2012,the District approved a resolution to establish a
Deferred Compensation Plan to be made available to all eligible District employees
pursuant to Section 457 of the Internal Revenue Code (IRC). The Plan is
administered by a third party administrator. The employer funds substantially all
administrative costs of the Plan. All contributions made to the Plan are voluntary
deductions from employees' wages, with no contributions to the Plan made by the
District. Employees are eligible to participate after 3 months employment and
attainment of age 18. Deferral amounts are limited per IRS Code Section
457(e)(15). For the year ended September 30, 2021 the deferral limit to the Plan
was $19,500. Employees are immediately vested in their salary deferral amounts.
IMMOKALEE WATER& SEWER DISTRICT Page 24 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE G- REVENUE BONDS PAYABLE
The following is a summary of the District's revenue bonds payable for the years
ended September 30:
Amount
Balances-September 30,2019 $ 31,981,969
Principal retired (901,000)
Bonds issued -
Balances-September 30,2020 31,080,969
Principal retired (769,000)
Bonds issued -
Balances-September 30,2021 $ 30,311,969
Revenue Bonds payable is comprised of the following at September 30:
2021 2020
$635,000 Series 1985,Water and Sewer Revenue
Bonds,issued May 1987,through USDA Rural
Development. Principal is payable annually beginning
September 1, 1989 through September 1,2026;interest
payable annually at the rate of 5%;collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. $ 137,969 $ 165,969
$3,750,000 Series 1989,Water and Sewer Revenue
Bonds,issued October 1991,through USDA Rural
Development. Principal is payable annually beginning
September 1, 1994 through September 1,2031;interest
payable annually at the rate of 5%;collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. 1,716,000 1,846,000
$250,000 Series 1990,Water and Sewer Revenue
Bonds,issued October 1991,through USDA Rural
Development. Principal is payable annually beginning
September 1, 1994 through September 1,2031;interest
payable annually at the rate of 5%;collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. 114,000 123,000
IMMOKALEE WATER& SEWER DISTRICT Page 25 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE G- REVENUE BONDS PAYABLE, CONTINUED
2021 2020
$4,313,200 Series 1996,Water and Sewer Revenue
Bonds,issued August 1996,through USDA Rural
Development. Principal is payable annually beginning
September 1, 1998 through September 1,2035;interest
payable annually at the rate of 5.125%;collateralized
by the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. 2,551,000 2,674,000
$802,000 Series 1998,Water and Sewer Revenue
Bonds,issued October 1998,through USDA Rural
Development. Principal is payable annually beginning
September 1,2001 through September 1,2038;interest
payable annually at the rate of 4.5%;collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. 521,000 541,000
$2,252,000 Series 2001,Water and Sewer Refunding
Bonds,issued December 2001,through USDA Rural
Development. Principal is payable annually beginning
September 1,2004 through September 1,2041;interest
payable annually at the rate of 4.5%;collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. 1,623,000 1,673,000
$3,366,200 Series 2008,Water and Sewer Revenue
Bonds,issued March 28,2008 through USDA Rural
Development. Principal is payable annually beginning
September 1,2008 through September 1,2047;interest
payable annually at the rate of 4.375%;collateralized
by the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. 2,811,000 2,869,000
IMMOKALEE WATER& SEWER DISTRICT Page 26 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE G- REVENUE BONDS PAYABLE, CONTINUED
2021 2020
$4,932,000 Series 2013,Water and Sewer Revenue
Bonds,issued March 1,2013,through USDA Rural
Development. Principal and interest are payable
annually beginning September 1,2016 through
September 1,2052;interest payable annually at the rate
of 2.5%;collateralized by the gross operating revenues
of the system and a special assessment levied on the
lands benefited by the system. 4,560,000 4,619,000
$17,134,000 Series 2018 A&B,Water and Sewer
Revenue Bonds,issued May 3,2018,through USDA
Rural Development. Interest only due September 1,
2018,then principal and interest are payable annually
beginning September 1,2019 through September 1,
2057;interest payable annually at the rate of 2.25%;
collateralized by the gross operating revenues of the
system and a special assessments levied on the lands
benefited by the system. 16,278,000 16,570,000
30,311,969 31,080,969
Less: current portion
(due in one year) (798,000) (769,000)
Long-term portion $ 29,513,969 $ 30,311,969
IMMOKALEE WATER& SEWER DISTRICT Page 27 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30,2021 and 2020
NOTE G- REVENUE BONDS PAYABLE, CONTINUED
Bond Resolutions
The bond resolutions established certain accounts and determined the order in
which certain revenues are to be deposited into those accounts. In addition, there
are various other covenants established by the official statements and District
resolutions, including such items as debt service coverage,reporting requirements,
and maintenance of facilities. Management believes that it has complied, in all
material respects, with these covenants. All required Reserve balances at
September 30, 2021 and 2020, were maintained and are reflected as restricted
deposits within these financial statements.
A summary of revenue bond debt service requirements to maturity is as follows
September 30:
Years Ending
September 30 Principal Interest Total
2022 $ 798,000 $ 928,853 $ 1,726,853
2023 828,000 899,305 1,727,305
2024 859,000 868,496 1,727,496
2025 892,000 836,410 1,728,410
2026 899,969 802,960 1,702,929
2027 - 2031 4,991,000 3,487,047 8,478,047
2032 -2036 5,527,000 2,523,983 8,050,983
2037 - 2041 4,010,000 1,775,990 5,785,990
2042 - 2046 3,901,000 1,211,328 5,112,328
2047 - 2051 3,729,000 696,556 4,425,556
2052 - 2056 3,227,000 286,148 3,513,148
2057 650,000 14,625 664,625
$ 30,311,969 $ 14,331,701 $ 44,643,670
Revenue bond debt interest expense was $957,219 and$992,500 for the years
ended September 30, 2021 and 2020, respectively. No revenue bond debt interest
expense was capitalized in either year.
IMMOKALEE WATER& SEWER DISTRICT Page 28 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30,2021 and 2020
NOTE H- LOANS PAYABLE - SRF
The following is a summary of the District's loans payable activity for the year
ended September 30:
DEP.SRF DEP.SRF
DW110120 DW110121 Total
Balance-September 30,2019 $ 278,813 $ 220,293 $ 499,106
Principal retired (20,129) (16,018) (36,147)
Balance-September 30,2020 258,684 204,275 462,959
Principal retired (20,771) (16,409) (37,180)
Balance-September 30,2021 $ 237,913 $ 187,866 $ 425,779
The loans payable - SRF activity for the year ended September 30 is as follows:
2021 2020
$419,681 loan payable representing 15%of a grant/loan payable to Florida
Department of Environmental Protection.The maximum amount of the loan is
$2,735,112,in which the FDEP has forgiven$2,324,845 of the note. The loan
also required the District to capitalize interest of$9,414 during the year
ended September 30,2011. Interest accrues at 2.71%.Principal and interest is
payable in forty(40)semi-annual payments of$13,660 in May and November
beginning November 15,2011. Final payment due May 2031.The loan is
collateralized by the gross operating revenues of the system and
assessments levied on the lands benefited by the system. $ 237,913 $ 258,684
$335,504 loan payable to Florida Department of Environmental Protection.
The loan requires forty(40)semi-annual payments of$10,637 in November
and May beginning November 15,2011.The loan required the District to
capitalize interest of$7,346 during the year ended September 30,2011. Final
payment date May 2031. Interest accrues at 2.43%. The loan is collateralized
by the gross operating revenues of the system and assessments levied on
the lands benefited by the system. 187,866 204,275
Total loans payable 425,779 462,959
Less current portion: (37,825) (36,866)
$ 387,954 $ 426,093
IMMOKALEE WATER& SEWER DISTRICT Page 29 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE H- LOANS PAYABLE - SRF, CONTINUED
Years Ending
September 30 Principal Interest Total
2022 $ 37,825 $ 10,770 $ 48,595
2023 38,810 9,785 48,595
2024 39,820 8,775 48,595
2025 40,856 7,738 48,594
2026 41,920 6,675 48,595
2027-2031 226,548 16,113 242,661
$ 425,779 $ 59,856 S 485,635
Loans payable - SRF related interest expense was $11,038 and$12,448 for the
years ended September 30, 2021 and 2020,respectively. No loan interest costs
were capitalized in either year.
NOTE I- CAPITAL LEASE
On October 31, 2018, the District entered into a sixty(60)month, 0% interest
capital lease agreement, for the lease of eight(8)vehicles, in the amount of
$219,307. Monthly payments are $3,655 plus monthly maintenance fees.
Payments began in April, 2019 with final payment due in March 2024. The lease
agreement is collateralized by the respective eight(8) vehicles.
The following is a summary of the District's capital lease payable for the years
ended September 30:
Amount
Balances-September 30,2019 $ 197,376
Proceeds -
Principal payments (43,861)
Balances-September 30,2020 153,515
Proceeds -
Principal payments (43,861)
Balances-September 30,2021 $ 109,654
The cost of capital assets under lease was $219,307 at September 30, 2021. The
accumulated depreciation was $109,653 and the current year depreciation expense
was $43,861 on those capital assets.
IMMOKALEE WATER& SEWER DISTRICT Page 30 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE I - CAPITAL LEASE, CONTINUED
A summary of capital lease debt service requirements to maturity is as follows at
September 30:
Years Ending
September 30 Principal Interest Total
2022 $ 43,861 $ - $ 43,861
2023 43,861 - 43,861
2024 21,932 - 21,932
S 109,654 $ - $ 109,654
Interest expense related to the capital lease was $0 and$0 for the years ended
September 30, 2021 and 2020, respectively.
NOTE J- LINE OF CREDIT
On October 15, 2018, the District renewed an agreement with a financial institution
to establish an uncollateralized$1 million revolving Line of Credit(LOC)to be used
for emergency situations. The LOC is available, although the District had not
borrowed any funds from the LOC for the years ended September 30, 2021 or
2020. The LOC required interest paid quarterly and principal at maturity. Interest
accrues at Prime Rate plus .50%with a floor rate of 3.75%. The LOC is due in
full on October 15, 2022. Interest rate at September 30, 2021 was 3.75%.
NOTE K- BOND ANTICIPATION NOTE
On May 4, 2020 the District entered into a Bond Anticipation Note (BAN)with a
financial institution to provide interim construction financing for improvements to
water facilities, clarifier project, in the amount of$944,000. Interest payable at
2.15% is due every six months. The BAN requires accrued interest and principal
payable every six(6)months and upon maturity. The note is collateralized by a
commitment from the USDA Rural Development Program. At September 30, 2021
and 2020, the BAN payable balance was $53,501 and$53,501, respectively.
Interest expense for the years ended September 30, 2021 and 2020 was $1,354 and
$0 and no loan interest costs were capitalized. Upon completion of the related
construction project,the BAN will be replaced by permanent financing from USDA
by the $944,000 Series 2021, Water and Sewer Revenue Bonds.
IMMOKALEE WATER& SEWER DISTRICT Page 31 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE L- ACCRUED COMPENSATED ABSENCES
Employees of the District are entitled to paid vacation based on length of service and
job classification at termination. Unused accrued sick time is not paid at termination.
Accrued compensated absences had the following activity for the year ended
September 30:
Amount
Accrued compensated absences,
September 30,2019 $ 149,074
Net Increase 20,910
Accrued compensated absences,
September 30,2020 169,984
Net Decrease (3,439)
Accrued compensated absences,
September 30,2021 $ 166,545
NOTE M-CONTINGENCIES
Litigation
The District, from time to time, is involved as a defendant or a plaintiff in certain
litigation and claims arising in the ordinary course of operations. As such, the District
maintains third party insurance coverages. In the opinion of legal counsel, the range
of potential recoveries or liabilities will not materially affect the financial position of the
District. The District intends to vigorously defend all claims unless first settled.
Potential losses, if any,may be recoverable through insurance coverages.
Federal Grants
Grant monies received by the District 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 District does not
believe that such disallowances, if any, would have a material effect on the financial
position of the District.
The operations of the District are dependent upon the condition of the District's
facilities. These facilities are currently being rehabilitated and improved substantially
through the receipt of federal funding. Loss or reduction of such funding would have
a material effect on the operations of the District.
IMMOKALEE WATER& SEWER DISTRICT Page 32 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30,2021 and 2020
NOTE N- NET POSITION(NET ASSETS)
Restricted net assets consist of the following at September 30:
2021 2020
Restricted assets $ 5,727,163 $ 5,834,049
Less:liabilities payable from restricted cash (2,479,446) (2,512,146)
$ 3,247,717 $ 3,321,903
Unrestricted net assets consist of the following at September 30:
2021 2020
Designated for emergencies $ 941,631 $ 841,000
Designated for operations 3,813,925 4,138,975
Designated for vehicle replacement 607,483 464,495
Designated for capital equipment 1,000,000 337,557
Designated for maint.reserve-wastewater 3,569,382 3,549,492
Designated for maint.reserve-water 812,240 824,480
Total Designated 10,744,661 10,155,999
Undesignated 1,379,180 2,838,265
Total unrestricted net assets $ 12,123,841 $ 12,994,264
NOTE O- RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to
and destruction of assets; errors and omissions; injuries to employees, and natural
disasters.
Insurance programs for general/professional liability, automobile, and property are
through commercial insurance. The District retains the risk of loss, on insured claims,
up to a deductible amount(ranging from 0% to 5% of total insured value depending
on the type of loss) with the risk of loss in excess of this amount transferred to the
insurance carrier. Limits of general liability are $1,000,000 per occurrence. The
District is third party insured for employee health as well as workers' compensation.
IMMOKALEE WATER& SEWER DISTRICT Page 33 of 47
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2021 and 2020
NOTE P- COMMITMENT
On July 23, 2019,the USDA obligated funds to the District for a$2,760,236
Clarifier Rehabilitation Project to be funded with a$944,000 Series 2021 Water and
Sewer Revenue bonds and a$765,000 grant. The remaining funds will be provided
by the District. The project began in June 2020 and is estimated to be completed in
August 2022. The Project is to be funded initially by the District. As of
September 30, 2021, $930,814 was expended for this project.
NOTE Q - COVID 19
In early March 2020, the World Health Organization classified the coronavirus
outbreak"COVID-19" as a global pandemic, and it,unfortunately, continues to
spread. Business continuity, including supply chains and consumer demand across a
broad range of industries and countries,have been severely impacted, as
governments and their citizens take significant and unprecedented measures to
mitigate the consequences of the pandemic. On April 1, 2020, Florida Governor,
Ron DeSantis ordered all Floridians to stay home, to lock down the State against the
Coronavirus. Certain governmental activity was cancelled and/or severely limited.
The District has adapted its operations to accommodate the current environment.
However,the full impact of the COVID-19 outbreak continues to evolve as of the
date of this report. This pandemic has adversely affected global economic activity and
greatly contributed to instability in financial markets. Management is actively
monitoring the local situation on its financial condition, liquidity, operations, donors,
industry, and workforce. Given the daily evolution of COVID-19 and the global and
local responses to curb its spread, the District is not able to estimate the future
effects of COVID-19 on its results of operation, financial condition, or liquidity for
fiscal year 2021-22.
NOTE R- SUBSEQUENT EVENT
The District submitted and the Legislature approved HB/CS 1495 on March 10,
2022. The Bill provides for and/or clarifies a variety of District rights and authority,
including defining the requirements for Board quorum.
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
IMMOKALEE WATER& SEWER DISTRICT Page 34 of 47
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS
Year ended September 30, 2021
Original Final
Budget Budget Actual Variance
OPERATING REVENUES
Water service $ 4,173,391 $ 4,096,083 $ 4,096,083 $ -
Wastewater service 5,822,484 5,832,186 5,832,186 -
Meter service charge 816,968 826,307 826,307 -
Late fees 76,109 83,325 83,325 -
Reconnect and transfer fees 105,631 105,444 105,444 -
Miscellaneous charges,fees and other income 105,609 291,563 285,718 (5,845)
Cross connection control fee 346,922 370,198 370,198 -
TOTAL OPERATING REVENUES 11,447,114 11,605,106 11,599,261 (5,845)
OPERATING EXPENSES
WATER PLANTS/DISTRIBUTION
Salaries and wages 835,078 778,781 778,781 -
Overtime 52,299 16,910 16,910 -
FICA 67,884 59,838 59,838 -
Unemployment taxes 1,940 (9) (9) -
Employer pension contribution 53,243 41,429 41,429 -
Health/life insurance 269,477 209,917 211,972 (2,055)
Workers'compensation 51,468 13,301 13,301 -
Travel and training 28,000 24,850 24,850 -
Telephone and fax 6,940 6,516 6,516 -
Electric 182,656 159,317 159,317 -
General liability insurance 29,101 20,986 20,986 -
Comprehensive auto insurance 10,346 8,685 8,685 -
Other insurance 88,389 88,725 88,725 -
Repairs and maintenance 390,006 136,073 136,073 -
Other contract services 27,475 38,713 38,713 -
Vehicle fuel 26,075 31,488 31,488 -
Vehicle maintenance 16,647 6,762 6,762 -
Vehicle Lease 6,288 284 284 -
Licenses and permits 5,596 4,125 4,125 -
Chemicals 95,020 83,971 83,971 -
Other materials 334,019 480,893 480,893 -
Tools 300 4,058 4,058 -
Laboratory fees 27,201 17,235 17,235 -
Uniforms/clothing allowance 4,200 3,957 3,957 -
Memberships/periodicals/books 4,859 2,564 2,558 6
SUB-TOTAL WATER PLANTS/DISTRIBUTION 2,614,507 2,239,369 2,241,418 (2,049)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 35 of 47
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30,2021
Original Final
Budget Budget Actual Variance
WASTEWATER PLANT
Salaries and wages 568,422 669,233 669,233 -
Overtime 18,189 17,732 17,732 -
FICA 44,876 51,819 51,819 -
Unemployment taxes 1,386 95 96 (1)
Employer pension contribution 35,197 33,689 33,689 -
Health/life insurance 159,610 138,813 148,539 (9,726)
Workers'compensation 21,118 7,377 7,377 -
Engineering services - 36,442 36,442 -
Travel and training 18,000 13,147 13,147 -
Telephone and fax 3,403 497 497 -
Electric 220,470 200,466 200,466 -
Section 8 electric 5,000 3,870 3,870 -
General liability insurance 29,101 20,986 20,986 -
Comprehensive auto insurance 4,702 3,722 3,722 -
Other insurance 84,766 83,205 83,205 -
Section 8 field maintenance 492 - - -
Repairs and maintenance 226,222 179,445 179,445 -
Section 8 repairs 19,790 470 470 -
Other contract services 14,938 94,149 94,149 -
Vehicle fuel 12,506 8,880 8,880 -
Vehicle maintenance 4,401 418 418 -
Vehicle Lease 4,630 260 260 -
Licenses and permits 4,290 5,328 5,328 -
Chemicals 108,097 90,111 90,111 -
Other materials 54,898 31,855 31,855 -
Tools 300 220 220 -
Laboratory fees 46,966 78,134 78,134 -
Residuals management 201,639 192,709 192,709 -
Uniforms/clothing allowance 3,000 1,653 1,653 -
Memberships/periodicals/books 3,124 1,560 1,560 -
SUB-TOTAL WASTEWATER PLANT 1,919,533 1,966,285 1,976,012 (9,727)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 36 of 47
SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN
NET POSITION- BUDGET (NON-GAAP BUDGETARY BASIS)AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30,2021
Original Final
Budget Budget Actual Variance
WASTEWATER COLLECTION
Salaries and wages 367,619 386,177 386,177 -
Overtime 18,099 34,022 34,022 -
FICA 29,507 31,803 31,803 -
Unemployment taxes 693 34 34 -
Employer pension contribution 23,143 22,088 22,088 -
Health/life insurance 105,897 93,822 100,860 (7,038)
Workers'compensation 23,529 4,682 4,682 -
Engineering services - 47,869 47,869 -
Travel and training 10,000 11,203 11,203 -
Telephone and fax 2,984 1,763 1,763 -
Electric 34,004 38,733 38,733 -
General liability insurance 29,101 20,985 20,985 -
Comprehensive auto insurance 6,269 4,963 4,963 -
Other insurance 2,057 2,129 2,129 -
Repairs and maintenance 86,856 196,405 147,575 48,830
Other contract services 9,744 7,497 7,497 -
Vehicle fuel 10,578 12,808 12,808 -
Vehicle maintenance 6,793 6,709 6,709 -
Vehicle Lease 15,432 804 804 -
Licenses and permits 500 103 103 -
Chemicals 13,458 20,095 20,095 -
Other materials 42,302 34,471 34,471 -
Tools 300 - - -
Uniforms/clothing allowance 1,500 1,726 1,726 -
Memberships/periodicals/books 1,735 1,366 1,366 -
SUB-TOTAL WASTEWATER COLLECTION 842,100 982,257 940,465 41,792
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 37 of 47
SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN
NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2021
Original Final
Budget Budget Actual Variance
CUSTOMER SERVICE/ADMIN
Salaries and wages 768,789 651,342 651,342 -
Overtime 6,919 473 473 -
FICA 59,342 49,306 49,306 -
Unemployment taxes 1,525 160 160 -
Employer pension contribution 46,542 34,948 34,948 -
Health/life insurance 207,621 158,785 172,326 (13,541)
Workers'compensation 3,878 570 570 -
Legal services 419,380 425,973 710,408 (284,435)
Other professional services 5,894 17,744 17,744 -
Accounting/auditing 55,923 58,850 58,850 -
Engineering services 399,000 266,059 266,059 -
Travel and training 34,000 25,254 25,254 -
Telephone and fax 6,100 4,737 4,737 -
Postage and freight 41,965 34,915 34,915 -
General liability insurance 7,278 4,478 4,478 -
Comprehensive auto insurance 758 620 620 -
Other insurance 54,007 40,008 40,008 -
Other contract services 35,979 126,590 126,590 -
Repairs and maintenance 45,621 14,200 14,200 -
Vehicle fuel 90 1,322 1,322 -
Vehicle maintenance 150 - - -
Vehicle Lease 4,116 260 260 -
Office supplies 17,880 9,439 9,439 -
Miscellaneous office expense 86,706 55,403 55,403 -
Miscellaneous bank fees 6,969 12,912 12,912 -
Miscellaneous expense - 112,868 54,624 58,244
Advertising 13,440 8,120 8,120 -
Licenses and permits 259 200 200 -
Tools 300 - - -
Uniforms/clothing allowance 2,000 2,371 2,371 -
Memberships/periodicals/books 3,471 12,149 12,149 -
SUB-TOTAL CUSTOMER SERVICE/ADMIN 2,335,902 2,130,056 2,369,788 (239,732)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 38 of 47
SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN
NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2021
Original Final
Budget Budget Actual Variance
MAINTENANCE
Salaries and wages 349,710 141,534 141,534 -
Overtime 1,749 73 73 -
FICA 26,886 10,667 10,667 -
Unemployment taxes 693 (24) (24) -
Employer pension contribution 21,088 16,495 16,495 -
Health/life insurance 113,909 98,189 117,139 (18,950)
Workers'compensation 27,277 4,105 4,105 -
Travel and training 10,000 7,993 7,993 -
Telephone and fax 2,353 1,602 1,602 -
General liability insurance 3,243 2,519 2,519 -
Comprehensive auto insurance 5,013 7,446 7,446 -
Repairs and maintenance 22,366 6,943 6,943 -
Other contract services 5,534 5,137 5,137 -
Vehicle fuel 8,413 9,476 9,477 (1)
Vehicle maintenance 19,776 9,539 9,539 -
Vehicle lease 15,744 623 623 -
Licenses and permits 5,237 - - -
Other materials 23,492 40,656 40,656 -
Tools 300 3,467 3,467 -
Uniforms/clothing allowance 1,500 1,267 1,267 -
Memberships/periodicals/books 1,736 1,580 1,580 -
SUB-TOTAL MAINTENANCE 666,019 369,287 388,238 (18,951)
DEPRECIATION
Depreciation 2,025,341 2,524,980 2,525,470 (490)
SUB-TOTAL DEPRECIATION 2,025,341 2,524,980 2,525,470 (490)
TOTAL OPERATING EXPENSES 10,403,402 10,212,234 10,441,391 (229,157)
OPERATING PROFIT $ 1,043,712 $ 1,392,872 $ 1,157,870 $ (235,002)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 39 of 47
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION-BUDGET (NON-GAAP BUDGETARY BASIS)AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2021
Original Final
Budget Budget Actual Variance
OPERATING PROFIT,
BROUGHT FORWARD $ 1,043,712 $ 1,392,872 $ 1,157,870 $ (235,002)
NON-OPERATING REVENUES(EXPENSES)
Interest income 151,893 53,725 59,327 5,602
Contributed capital-grant-FDEP/EPA - - - -
Contributed capital-grant-USDA/FHA 765,000 - - -
Contributed capital-customers 83,357 79,096 79,095 (1)
Contributed capital-developers 261,037 102,789 47,789 (55,000)
Contributed capital-Special assessments - 78,284 - (78,284)
Debt proceeds-Capital lease - - - -
Bond proceeds-USDA 944,000 - - -
Other non-operating revenue 44,785 34,631 35,182 551
Covid 19 expenses - (26,308) (26,308) -
Capital outlay (2,384,465) (3,174,318) (2,784,744) 389,574
Principal retirement-bonds (769,000) (769,000) (769,000) -
Principal retirement-SRF (36,866) (36,866) (37,180) (314)
Principal retirement-capital lease - (43,861) (43,861) -
Net Assets-brought forward 9,863,098 12,994,264 - (12,994,264)
Net Assets-carryforward (8,952,085) (9,722,897) - 9,722,897
Maintenance reserve - - - -
Interest expense (994,929) (969,611) (1,124,908) (155,297)
Bad debt expense (19,537) - - -
Gain(Loss)on disposal of assets - 7,200 7,200 -
NET NON-OPERATING
REVENUES(EXPENSES) (1,043,712) (1,392,872) (4,557,408) (3,164,536)
NET PROFIT(LOSS) $ - $ - $ (3,399,538) $ (3,399,538)
Reconciliation:
Net profit(loss)(Non-GAAP Budgetary Basis) $ (3,399,538)
Debt proceeds-BAN -
Capital outlay 2,784,744
Principal retirement-bonds 769,000
Principal retirement-SRF 37,180
Principal retirement-Capital lease 43,861
Increase in Net Position(GAAP Basis) 235,247
Net position-beginning of the year 42,074,709
Net position-end of the year $ 42,309,956
The accompanying notes are an integral part of this statement.
ADDITIONAL REPORTS
TUS(��� Affiliations
Ty� Florida Institute otCertified Public Accountants
OI�1paI1� L A American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 40 of 47
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF
BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Immokalee Water& Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States of America,the basic financial
statements of the business-type activities of Immokalee Water& Sewer District(the "District")
which comprise the statement of net position as of September 30, 2021, and the related
statements of revenues, expenses and changes in net position and cash flows for the year then
ended and the related notes to the financial statements and have issued our report thereon dated
March 30, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Immokalee Water
& Sewer District'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
opinion on the financial statements,but not for the purpose of expressing an opinion on the
effectiveness of Immokalee Water& Sewer District's internal control. Accordingly, we do not
express an opinion on the effectiveness of the Immokalee Water& Sewer District's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions,to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the basic financial statements will not be prevented or detected and
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090• Fax: (239)333-2097
Page 41 of 47
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, as defined
previously. However, material weaknesses may exist that were not identified.
We,however, noted certain other matters that we have reported in our Report to Management
dated March 30,2022.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Immokalee Water& Sewer District's
financial statements are free from material misstatement,we performed tests of its compliance with
certain provisions of laws,regulations, contracts and grants,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 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 internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly,this communication is not suitable for any other purpose.
46,14.) /194M 0#(114 •
1
TUSCAN& COMPANY, P.A.
Fort Myers, Florida
March 30, 2022
r TUSCAN Affiliations
Florida Institute of Certified Public Accountants
C ompany, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 42 of 47
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415,FLORIDA STATUTES
Board of Commissioners
Immokalee Water& Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have examined Immokalee Water& Sewer District's compliance with Section 218.415,
Florida Statutes, regarding the investment of public funds during the year ended September 30,
2021. Management is responsible for Immokalee Water& Sewer District's compliance with
those requirements. Our responsibility is to express an opinion on Immokalee Water& Sewer
District's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and,accordingly, included examining, on a test
basis, evidence about Immokalee Water& Sewer District's compliance with those requirements
and performing such other procedures as we considered necessary in the circumstances. We
believe that our examination provides a reasonable basis for our opinion. Our examination does
not provide a legal determination on Immokalee Water& Sewer District's compliance with
specified requirements.
In our opinion,Immokalee Water& Sewer District complied, in all material respects, with the
aforementioned requirements for the year ended September 30,2021.
This report is intended solely for the information and use of the Immokalee Water& Sewer
District and the Auditor General, State of Florida, and is not intended to be and should not be
used by anyone other than these specified parties.
AA..).-0/1/0 Z1444 f � ,
TUSCAN& COMPANY, P.A.
Fort Myers,Florida
March 30,2022
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane, Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090•Fax: (239)333-2097
T TU S C }� N Affiliations
1�dC�\1 Florida Institute of Certified Public Accountants
& Company,
y, A American Institute of Certified Public Accountants
t� Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 43 of 47
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
Immokalee Water& Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have audited the accompanying basic financial statements of Immokalee Water& Sewer
District(the "District") as of and for the year ended September 30, 2021 and have issued our
report thereon dated March 30, 2022.
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 of America and Chapter
10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report
on Internal Control over Financial Reporting and Compliance and Other Matters based on an
Audit of the Financial Statements Performed in Accordance with Government Auditing Standards.
Disclosures in that report,which is dated March 30, 2022, should be considered in conjunction
with this report to management.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General,which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter included the following information, which is not included in the aforementioned
auditor's report:
• Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether
or not corrective actions have been taken to address findings and recommendations
made in the preceding annual financial audit report. Prior year comments that have not
been resolved are repeated and updated below.
• Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. No such
recommendations were noted to improve financial management except as noted below.
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane,Building 55 •Fort Myers, FL 33907 •Phone: (239)333-2090•Fax: (239)333-2097
Page 44 of 47
• Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address
noncompliance with provisions of contracts or grant agreements, or abuse, that have an
effect on the financial statements that is less than material but more than inconsequential.
In connection with our audit,we did not have any such findings.
• Section 10.554(1)(i)4., Rules of the Auditor General,requires that the name or official title
and legal authority for the primary government and each component unit of the reporting
entity be disclosed in the management letter,unless disclosed in the notes to the financial
statements. The District discloses this information in the notes to the financial statements.
• Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included
as to whether or not the local government entity has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific
condition(s)met. In connection with our audit, we determined that the District did not
meet any of the conditions described in Section 218.503(1), Florida Statutes.
• Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General,we
have applied financial condition assessment procedures. It is management's responsibility
to monitor the District's financial condition, and our financial condition assessment was
based in part on representations made by management and the review of financial
information provided by same. In connection with our audit,we determined that the
District did not meet any of the criteria of a deteriorating financial condition as
described in Auditor General Rule Section 10.554(1)(i)(5).a.
• Pursuant to Section 10.544(1)(i)5.b.2., Rules of the Auditor General, if a deteriorating
financial condition(s) is noted then a statement is so required along with the conditions
causing the auditor to make such a conclusion. No such conditions were noted.
• Pursuant to Section 10.554(1)(i)5.c., Rules of the Auditor General,requires a statement
indicating a failure, if any, of a component unit special district to provide financial
information necessary to a proper reporting of the component unit within the audited
financial statements of this entity(F.S. Section 218.39(3)(b)). There are no known
component special districts required to report within these financial statements.
• Pursuant to Section 10.554(1)(i)6, Rules of the Auditor General,requires disclosure of
certain unaudited data. See Exhibit 2.
• Pursuant to Section 10.554(1)(i)7, Rules of the Auditor General, requires an independent
special district that imposes ad valorem taxes to disclose certain related unaudited data.
See Exhibit 2.
Page 45 of 47
• Section 10.554(1)8, Rules of the Auditor General, requires an independent special district
that imposes a non-ad valorem special assessment to disclose certain unaudited data. See
Exhibit 2.
• Section 10.556(10)(a), Rules of the Auditor General,requires that the scope of our audit
to determine the entity's compliance with the provisions of Section 218.415, Florida
Statutes, regarding the investment of public funds. In connection with our audit, we
determined that the District complied with Section 218.415, Florida Statutes as
reported in our Independent Accountant's Report on Compliance with Section 218.415,
Florida Statutes dated March 30, 2022, included herein.
• Section 10.557(3)(m), Rules of the Auditor General, requires a notarized affidavit,
related to impact fees, signed and sworn to be the Chief Financial Officer be included
in the audit report. No such affidavit is included as the District has not implemented any
Impact Fees.
PRIOR YEAR COMMENTS:
2018-1 Significant Adjustments to the Account Balances as of and for the Year Ended September
30, 2018 Were Required During the Audit of the Financial Statements.
The initial trial balance provided for the audit contained incorrect balances for accounts
payable,retainage payable, contributed capital, net assets and fixed asset additions.
We recommend that the District obtain or designate a qualified individual to provide
assistance to review monthly account balances and prepare month-end closing
adjustments.
Fiscal year 2019 addendum
During fiscal year ended September 30, 2019, the District contracted an accounting
professional experienced in governmental accounting to assist in the monthly and annual
closing and reconciliation process. As a result significant improvements were made,
however not all areas were addressed due to the timing of implementation. As such,
several audit adjustments were still proposed. The reconciliations and adjustments caused
the audit process to be delayed and time consuming. The District, with the assistance of
the contracted accounting professional, has proceeded to implement a systematic process
of closing and reconciling and is committed to continuing this service.
Fiscal year 2020 addendum
During fiscal year ended September 30, 2020,the District continued to experience
turnover in administrative staff. A new Executive Director was hired during the fiscal year
ended September 30, 2020 and a Finance Director was hired subsequent to year end.
Efforts are being focused to systematically review the accounting and operations of the
Page 46 of 47
District to improve the closing and reconciling process however, significant audit
adjustments were proposed due to the timing of the implementation.
Current year addendum
During the current year, the District appeared to adequately record and track construction
project draws. The grant related construction projects are required to be inititally self
funded by the District and therefore, no federal grant funds were awarded or utilized
during the current year. This comment appears to be resolved.
2020-1 Reconciliation of Account Balances Should Be Performed Routinely and Timely
During the audit, it was noted that the District was unable to provide an accounts payable
listing and fixed asset reconciliation that agreed to the balances recorded at fiscal
year-end.
We recommend that the accounting staff reconcile all account balances on a monthly
basis, ensuring that all balance sheet accounts agree to subsidiary ledgers. These
reconciliations should be performed on a monthly basis and any differences or
discrepancies investigated and corrected.
Current year addendum
During the audit, we noted that the balance sheet accounts agreed to the subsidiary
ledgers. However, there were several significant adjusting journal entries and summary of
unadjusted differences. We continue to recommend that all balance sheet accounts and
significant revenue and expense accounts be analyzed, reconciled and reviewed monthly.
2020-2 Recalculation of Billing Rates Should Be Performed
During the billing procedures performed, it was noted that eight(8) of the twenty-five
(25) commercial accounts selected for testing contained an incorrect billing rate. The
error was not discovered for several months as the District did not perform a
recalculation of billings for all customer types to verify rates. Upon discovery, the error
was corrected by the third party billing company. We recommend that the District
recalculate and test billings for all customer types upon implementation of approved rate
changes.
Current year addendum
During the billing procedures we tested twenty-five(25) accounts and found no
exceptions. This comment appears to be resolved.
Page 47 of 47
2020-3 SR 29 Special Assessment not Recorded
During the year ended September 30, 2019, the District levied special assessments on
system users benefiting from system improvements on State Road (SR)29. The
assessment was initially levied through the Collier County Tax Collector on November 1,
2018. The original assessment was not recorded as a receivable by the District at the
time. This resulted in the understatement of net position for the fiscal year ended
September 30, 2019 and, consequently, a restatement of the ending net position was
recorded for the fiscal year ended September 30, 2019 in the amount of$496,731
during the year ended September 30, 2020.
Current year addendum
During the current year audit, there were no restatements necessary. This comment
appears to be resolved.
CURRENT YEAR COMMENTS:
No financially significant comments noted.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners,management,the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
/4Ampl , * *,
TUSCAN& COMPANY, P.A.
Fort Myers, Florida
March 30, 2022
EXHIBIT 1
Immokalee Water &Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
(239) 658-3630
FAX (239) 658-3634
Irnmokalee Water & Sewer District
March 4, 2022
Sherrill F. Norman, CPA
Auditor General, State of Florida
Claude Denson Pepper Building
111 West Madison Street
Tallahassee, Florida 32399-1450
Dear Ms. Norman:
This letter is in response to the Management Letter in the Immokalee Water and Sewer District's Year
Ending September 30, 2021 audit, performed by Tuscan & Company, P.A.; which was presented to and
accepted by the Board on (Board Meeting Date).
PRIOR YEAR COMMENTS:
2018-1 See finding 2018-I and related 2019 addendum noted in the Schedule of Findings and
Questioned Costs- Federal Awards.
2020 IWSD Response: The District has determined that a full-time accounting professional is
necessary to perform balance sheet, revenue, expense, and payroll account reconciliations, as well as
executing accounts payable and accounts receivable processes. During the April 15, 2020 meeting,
the Board directed the Executive Director to initiate the hiring process of a full-time accounting
professional.
2021 IWSD Response:In 2020, the Immokalee Water&Sewer District established a new position,
Finance Director, with the responsibility of leading the financial and accounting functions for the
District. The accounting professional hired in January 2021 as the finance Director is a Certified
Public Accountant(CPA), licensed in the State of Florida, and is experienced in governmental
accounting and auditing.
The Finance Director prepared the Financial Statements for the Fiscal Year ending September 30, 2021.
During the year end preparation all account balances, including the construction project and other
payables, were verified and traced to supporting documentation. All differences were adjusted as
needed in order to correct any errors in the Trial Balance.
The Board receives accurate financial reports during its monthly public meetings.
For the current FY 2021-22, the Finance Director trained department supervisors to prepare their annual
budgets and is holding them accountable for their expenditures. The Finance Director is also
implementing other training to ensure that the department supervisors and other staff involved with
March 4, 2022
Immokalee Water and Sewer District Response to Management Letter
Audit for Year Ending September 30, 2021
Page 2
spending District funds and/or financial transactions have the knowledge and expertise to perform such
duties.
The District received a letter dated January 25, 2022 from The Florida Legislature Joint Legislative
Auditing Committee regarding comment 2018-01 being reported in three successive audit reports.
The letter required the District to provide a written explanation of the status of corrective action that
has been taken. The letter along with the District's written explanation has been attached to this
management comment letter. The response provide to the Joint Legislative Auditing Committee is
the same response as provided above (2021 IWSD Response).
2020-1 Reconciliation of Account Balances Should Be Performed Routinely and Timely
During the audit, it was noted that the District was unable to provide an accounts payable
listing and fixed asset reconciliation that agreed to the balances recorded at fiscal year-end.
We recommend that the accounting staff reconcile all account balances on a monthly basis,
ensuring that all balance sheet accounts agree to subsidiary ledgers. These reconciliations
should be performed on a monthly basis and any difference be investigated and corrected
2020 IWSD Response: The District is working to implement processes which will ensure balance
sheet accounts agree to subsidiary ledgers.
2021 IWSD Response:Procedures have been implemented to ensure all balance sheet accounts
are reconciled to the subsidiary ledgers throughout the year.
2020-2 Recalculation of Billing Rates Should be Performed
During the billing procedures performed, it was noted that eight (8) of the twenty-five (25)
commercial accounts selected for testing contained an incorrect billing rate. The error was
not discovered for several months as the District did not perform a recalculation of billings for
all customer types to verify rates. Upon discovery, the error was corrected by the third-party
billing company. We recommend that the District recalculate and test billings for al customer
types upon implementation of approved rate changes.
2020 IWSD Response: The District is currently correcting commercial customer accounts for prior
year incorrect billings. In the future, new billing rates will be tested prior to implementation.
2021 IWSD Response:In January 2022, all overpayments were credit to customer accounts or
refunded as needed. After the new bill rates for October 1, 2021 were input into the billing system, a
sample from each type of account was tested to ensure rates were being correctly applied. Sampling
and testing will be utilized for any new billing rates in the future.
March 4, 2022
Immokalee Water and Sewer District Response to Management Letter
AuditJor Year Ending September 30, 2021
Page 3
2020-3 SR 29 Special Assessment Not Recorded
During the year ending September 30, 2019, the District levied special assessments on system
users benefiting from system improvements on State Road (SR) 29. The assessment was
initially levied through the Collier County Tax Collector on November 1, 2018. The original
assessment was not recorded as a receivable by the District at the time. This resulted in the
understatement of net position for the fiscal year ending September 30, 2019, and
consequently, a restatement of the ending net position was recorded for the fiscal year
ending September 30, 2019 in the amount of$496,731 during the year ending September
30, 2020.
2020 IWSD Response:SR 29 assessments will be recorded in the correct account.
2021 IWSD Response:For the year ending September30, 2021, SR 29 assessments received and
the remaining receivables were reconciled to supporting documentation and the trial balance.
The District appreciates the efficient planning and performance of Tuscan &Company, P.A. during the
audit to obtain reasonable assurance about the District's basic financial statements as well as their
evaluation of the presentation of those statements. The District respects and values their effort, work
product, and feedback.
Sincerely,
Sarah Catala, Executive Director Brian Stewart, Finance Director
EXHIBIT 2
EXHIBIT 2 Page 1
UNAUDITED
COMPLIANCE WITH REPORTING REQUIRED BY:
Auditor General Rule 10.554(1)(i)6
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
provided in Section 218.39(3)(a),Florida Statutes, the following specific information
provided by management(with explanatory verbiage that the auditor provides no
assurance on the information):
a. The total number of district employees compensated in the last pay period of the
district's fiscal year being reported(see information required in Section
218.32(1)(e)2.a., Florida Statutes). 41
b. The total number of independent contractors to whom nonemployee
compensation was paid in the last month of the district's fiscal year being
reported(see information required in Section 218.32(1)(e)2.b., Florida
Statutes). 11
c. All compensation earned by or awarded to employees,whether paid or accrued,
regardless of contingency (see information required in Section 218.32(1)(e)2.c.,
Florida Statutes). (Total wage compensation for the fiscal year being audited)
$2,696,277
d. All compensation earned by or awarded to nonemployee independent
contractors,whether paid or accrued,regardless of contingency (see information
required in Section 218.32(1)(e)2.d., Florida Statutes). (Amounts paid that
would be reported on a Form 1099 for FYE) $432,207
e. Each construction project with a total cost of at least $65,000 approved by the
district that was scheduled to begin on or after October 1 of the fiscal year being
reported,together with the total expenditures for such project(see information
required in Section 218.32(1)(e)2.e., Florida Statutes). See Note P
f. A budget variance report based on the budget adopted under section
189.016(4), Florida Statutes, before the beginning of the fiscal year reported if
the district amends a final adopted budget under Section 189.016(6), Florida
Statutes (see information required in Section 218.32(1)(e)3., Florida Statutes).
If there were amendments then include budget variance (original budget vs.
actual at FYE). See attached pages 3 - 8.
Page 2
Auditor General Rule 10.554(1)(i)7
For an independent special district that imposes ad valorem taxes,the following
specific information provided by management(with explanatory verbiage that the
auditor provides no assurance on the information): (see information required in
Section 218.32(1)(e)4., Florida Statutes).
a. The millage rate or rates imposed by the district. N/A
b. The current year gross amount of ad valorem taxes collected by or on behalf of
the district. N/A
c. The total amount of outstanding bonds issued by the district and terms of such
bonds. See Note G
Auditor General Rule 10.554(1)(i)8
For an independent special district that imposes non-ad valorem special assessments,
the following specific information provided by management(with explanatory
verbiage that the auditor provides no assurance on the information): (see information
required in Section 218.32(1)(e)5., Florida Statutes).
a. The rate or rated of such assessment imposed by the district. Initially levied in a
prior year and collected over 20 years.
SR 29 $ 219
Arrowhead $ 47
b. The total amount of special assessments collected by or on behalf of the district.
SR 29 $24,907 total for current year
Arrowhead$53,377 total for current year
c. The total amount of outstanding bonds issued by the district and the terms of
such bonds. $30,311,969
IMMOKALEE WATER& SEWER DISTRICT Page 3
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT-UNAUDITED -
Year ended September 30, 2020
Original
Budget Actual Variance
OPERATING REVENUES
Water service $ 4,173,391 $ 4,096,083 $ (77,308)
Wastewater service 5,822,484 5,832,186 9,702
Meter service charge 816,968 826,307 9,339
Late fees 76,109 83,325 7,216
Reconnect and transfer fees 105,631 105,444 (187)
Miscellaneous charges,fees and other income 105,609 285,718 180,109
Cross connection control fee 346,922 370,198 23,276
TOTAL OPERATING REVENUES 11,447,114 11,599,261 152,147
OPERATING EXPENSES
WATER PLANTS/DISTRIBUTION
Salaries and wages 835,078 778,781 56,297
Overtime 52,299 16,910 35,389
FICA 67,884 59,838 8,046
Unemployment taxes 1,940 (9) 1,949
Employer pension contribution 53,243 41,429 11,814
Health/life insurance 269,477 211,972 57,505
Workers'compensation 51,468 13,301 38,167
Travel and training 28,000 24,850 3,150
Telephone and fax 6,940 6,516 424
Electric 182,656 159,317 23,339
General liability insurance 29,101 20,986 8,115
Comprehensive auto insurance 10,346 8,685 1,661
Other insurance 88,389 88,725 (336)
Repairs and maintenance 390,006 136,073 253,933
Other contract services 27,475 38,713 (11,238)
Vehicle fuel 26,075 31,488 (5,413)
Vehicle maintenance 16,647 6,762 9,885
Vehicle Lease 6,288 284 6,004
Licenses and permits 5,596 4,125 1,471
Chemicals 95,020 83,971 11,049
Other materials 334,019 480,893 (146,874)
Tools 300 4,058 (3,758)
Laboratory fees 27,201 17,235 9,966
Uniforms/clothing allowance 4,200 3,957 243
Memberships/periodicals/books 4,859 2,558 2,301
SUB-TOTAL WATER PLANTS/DISTRIBUTION 2,614,507 2,241,418 373,089
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 4
ORIGINAL BUDGET (NON-GAAP)vs.ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT-UNAUDITED -
Year ended September 30, 2020
Original
Budget Actual Variance
WASTEWATER PLANT
Salaries and wages 568,422 669,233 (100,811)
Overtime 18,189 17,732 457
FICA 44,876 51,819 (6,943)
Unemployment taxes 1,386 96 1,290
Employer pension contribution 35,197 33,689 1,508
Health/life insurance 159,610 148,539 11,071
Workers'compensation 21,118 7,377 13,741
Engineering services - 36,442 (36,442)
Travel and training 18,000 13,147 4,853
Telephone and fax 3,403 497 2,906
Electric 220,470 200,466 20,004
Section 8 electric 5,000 3,870 1,130
General liability insurance 29,101 20,986 8,115
Comprehensive auto insurance 4,702 3,722 980
Other insurance 84,766 83,205 1,561
Section 8 field maintenance 492 - 492
Repairs and maintenance 226,222 179,445 46,777
Section 8 repairs 19,790 470 19,320
Other contract services 14,938 94,149 (79,211)
Vehicle fuel 12,506 8,880 3,626
Vehicle maintenance 4,401 418 3,983
Vehicle Lease 4,630 260 4,370
Licenses and permits 4,290 5,328 (1,038)
Chemicals 108,097 90,111 17,986
Other materials 54,898 31,855 23,043
Tools 300 220 80
Laboratory fees 46,966 78,134 (31,168)
Residuals management 201,639 192,709 8,930
Uniforms/clothing allowance 3,000 1,653 1,347
Memberships/periodicals/books 3,124 1,560 1,564
SUB-TOTAL WASTEWATER PLANT 1,919,533 1,976,012 (56,479)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 5
ORIGINAL BUDGET (NON-GAAP)vs.ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT -UNAUDITED -
Year ended September 30, 2020
Original
Budget Actual Variance
WASTEWATER COLLECTION
Salaries and wages 367,619 386,177 (18,558)
Overtime 18,099 34,022 (15,923)
FICA 29,507 31,803 (2,296)
Unemployment taxes 693 34 659
Employer pension contribution 23,143 22,088 1,055
Health/life insurance 105,897 100,860 5,037
Workers'compensation 23,529 4,682 18,847
Engineering services - 47,869 (47,869)
Travel and training 10,000 11,203 (1,203)
Telephone and fax 2,984 1,763 1,221
Electric 34,004 38,733 (4,729)
General liability insurance 29,101 20,985 8,116
Comprehensive auto insurance 6,269 4,963 1,306
Other insurance 2,057 2,129 (72)
Repairs and maintenance 86,856 147,575 (60,719)
Other contract services 9,744 7,497 2,247
Vehicle fuel 10,578 12,808 (2,230)
Vehicle maintenance 6,793 6,709 84
Vehicle Lease 15,432 804 14,628
Licenses and permits 500 103 397
Chemicals 13,458 20,095 (6,637)
Other materials 42,302 34,471 7,831
Tools 300 - 300
Uniforms/clothing allowance 1,500 1,726 (226)
Memberships/periodicals/books 1,735 1,366 369
SUB-TOTAL WASTEWATER COLLECTION 842,100 940,465 (98,365)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 6
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT-UNAUDITED -
Year ended September 30,2020
Original
Budget Actual Variance
CUSTOMER SERVICE/ADMIN
Salaries and wages 768,789 651,342 117,447
Overtime 6,919 473 6,446
FICA 59,342 49,306 10,036
Unemployment taxes 1,525 160 1,365
Employer pension contribution 46,542 34,948 11,594
Health/life insurance 207,621 172,326 35,295
Workers'compensation 3,878 570 3,308
Legal services 419,380 710,408 (291,028)
Other professional services 5,894 17,744 (11,850)
Accounting/auditing 55,923 58,850 (2,927)
Engineering services 399,000 266,059 132,941
Travel and training 34,000 25,254 8,746
Telephone and fax 6,100 4,737 1,363
Postage and freight 41,965 34,915 7,050
General liability insurance 7,278 4,478 2,800
Comprehensive auto insurance 758 620 138
Other insurance 54,007 40,008 13,999
Other contract services 35,979 126,590 (90,611)
Repairs and maintenance 45,621 14,200 31,421
Vehicle fuel 90 1,322 (1,232)
Vehicle maintenance 150 - 150
Vehicle Lease 4,116 260 3,856
Office supplies 17,880 9,439 8,441
Miscellaneous office expense 86,706 55,403 31,303
Miscellaneous bank fees 6,969 12,912 (5,943)
Miscellaneous expense - 54,624 (54,624)
Advertising 13,440 8,120 5,320
Licenses and permits 259 200 59
Tools 300 - 300
Uniforms/clothing allowance 2,000 2,371 (371)
Memberships/periodicals/books 3,471 12,149 (8,678)
SUB-TOTAL CUSTOMER SERVICE/ADMIN 2,335,902 2,369,788 (33,886)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 7
ORIGINAL BUDGET (NON-GAAP)vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT-UNAUDITED-
Year ended September 30, 2020
Original
Budget Actual Variance
MAINTENANCE
Salaries and wages 349,710 141,534 208,176
Overtime 1,749 73 1,676
FICA 26,886 10,667 16,219
Unemployment taxes 693 (24) 717
Employer pension contribution 21,088 16,495 4,593
Health/life insurance 113,909 117,139 (3,230)
Workers'compensation 27,277 4,105 23,172
Travel and training 10,000 7,993 2,007
Telephone and fax 2,353 1,602 751
General liability insurance 3,243 2,519 724
Comprehensive auto insurance 5,013 7,446 (2,433)
Repairs and maintenance 22,366 6,943 15,423
Other contract services 5,534 5,137 397
Vehicle fuel 8,413 9,477 (1,064)
Vehicle maintenance 19,776 9,539 10,237
Vehicle lease 15,744 623 15,121
Licenses and permits 5,237 - 5,237
Other materials 23,492 40,656 (17,164)
Tools 300 3,467 (3,167)
Uniforms/clothing allowance 1,500 1,267 233
Memberships/periodicals/books 1,736 1,580 156
SUB-TOTAL MAINTENANCE 666,019 388,238 277,781
DEPRECIATION
Depreciation 2,025,341 2,525,470 (500,129)
SUB-TOTAL DEPRECIATION 2,025,341 2,525,470 (500,129)
TOTAL OPERATING EXPENSES 10,403,402 10,441,391 (37,989)
OPERATING PROFIT $ 1,043,712 $ 1,157,870 $ 114,158
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER& SEWER DISTRICT Page 8
ORIGINAL BUDGET(NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT-UNAUDITED -
Year ended September 30, 2020
Original
Budget Actual Variance
OPERATING PROFIT,
BROUGHT FORWARD $ 1,043,712 $ 1,157,870 $ 114,158
NON-OPERATING REVENUES(EXPENSES)
Interest income 151,893 59,327 (92,566)
Contributed capital-grant-FDEP/EPA - - -
Contributed capital-grant-USDA/FHA 765,000 - (765,000)
Contributed capital-customers 83,357 79,095 (4,262)
Contributed capital-developers 261,037 47,789 (213,248)
Debt proceeds-Capital lease - - -
Bond proceeds-USDA 944,000 - (944,000)
Other non-operating revenue 44,785 35,182 (9,603)
Covid 19 expenses - (26,308) (26,308)
Capital outlay (2,384,465) (2,784,744) (400,279)
Principal retirement-bonds (769,000) (769,000) -
Principal retirement-SRF (36,866) (37,180) (314)
Principal retirement:capital lease - (43,861) (43,861)
Net Assets-brought forward 9,863,098 - (9,863,098)
Net Assets-carryforward (8,952,085) - 8,952,085
Maintenance reserve - - -
Interest expense (994,929) (1,124,908) (129,979)
Bad debt expense (19,537) - 19,537
Gain(Loss)on disposal of assets - 7,200 7,200
NET NON-OPERATING
REVENUES(EXPENSES) (1,043,712) (4,557,408) (3,513,696)
NET PROFIT(LOSS) $ - $ (3,399,538) $ 3,399,538
Reconciliation:
Net profit(loss)(Non-GAAP Budgetary Basis) $ (3,399,538)
Debt proceeds-BAN -
Capital outlay 2,784,744
Principal retirement-bonds 769,000
Principal retirement-SRF 37,180
Principal retirement-Capital lease 43,861
Increase in Net Position(GAAP Basis) 235,247
Net position-beginning of the year 42,074,709
Net position-end of the year $ 42,309,956
The accompanying notes are an integral part of this statement.