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Agenda 05/09/2023 Item #13A (ACFR - The Annual Comprehensive Financial Report)13.A 05/09/2023 EXECUTIVE SUMMARY Presentation of the Annual Comprehensive Financial Report for the fiscal year ended September 30, 2022 and authorization to file the related State of Florida Annual Local Government Financial Report with the Department of Financial Services. OBJECTIVE: Presentation of the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended September 30, 2022 and authorization to file the related State of Florida Annual Local Government Financial Report (AFR with the Department of Financial Services. CONSIDERATIONS: The Clerk of the Circuit Court serving as Ex-Officio Clerk to the Board of County Commissioners is responsible for coordination of the annual independent audit along with the production of the Annual Comprehensive Financial. In this role, the Clerk is pleased to present to the Board the ACFR for the fiscal year ended September 30, 2022, which includes the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for the fiscal year ended September 30, 2021. The ACFR represents a significant effort by both the Finance and Accounting Department and County staff. We would like to express our sincere appreciation to the Board, the Constitutional Officers and their staff, the County Manager, the County Attorney, the Department Heads, Division Directors and County staff for their assistance. We would like to also thank the County's external auditors, CliftonLarsonAllen LLP and their staff for a successful year-end audit. The ACFR package delivered to the Board includes an unmodified annual audit opinion for fiscal year 2022, grant related Single Audit Reports and an unaudited report on debt for fiscal year 2022. The unaudited report on debt is required by the County's Debt Management Policy. Also included as an exhibit, the Annual Financial Report is due within 45 days of completion of the audit report but no later than 9 months after the end of the fiscal year. This report documents the revenues and expenditures for a given fiscal year in accordance with the State of Florida Uniform Accounting System. A brief presentation on the overall audit will be given by CliftonLarsonAllen staff. GROWTH MANAGEMENT IMPACT: There is no growth management impact. FISCAL IMPACT: There is no fiscal impact to this executive summary. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues and requires majority vote for acceptance of the report. -JAK RECOMMENDATION: That the Collier County Board of County Commissioners accepts the Comprehensive Annual Financial Report for fiscal year 2022 and authorizes the filing of the State of Florida Annual Local Government Financial Report with the Department of Financial Services. Prepared By: Derek M. Johnssen, Director of Finance and Accounting Clerk of the Circuit Court and Comptroller ATTACHMENT(S) 1. Annual Financial Report for Collier, 2022 (PDF) 2. [Linked] 2022 Collier County ACFR (PDF) Packet Pg. 32 13.A 05/09/2023 COLLIER COUNTY Board of County Commissioners Item Number: 13.A Doc ID: 25399 Item Summary: *** This item to be heard at 11 AM. *** Presentation of the Annual Comprehensive Financial Report for the fiscal year ended September 30, 2022 and authorization to file the related State of Florida Annual Local Government Financial Report with the Department of Financial Services. (Derek Johnssen, Clerk's Office Director of Finance and Accounting) Meeting Date: 05/09/2023 Prepared by: Title: Finance Manager — Clerk of the Circuit Court Name: Kelly Jones 05/01/2023 11:49 AM Submitted by: Title: Assistant Finance Director — Clerk of the Circuit Court Name: Derek Johnssen 05/01/2023 11:49 AM Approved By: Review: Clerk of the Circuit Court Derek Johnssen Additional Reviewer Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Office of Management and Budget Christopher Johnson Additional Reviewer County Manager's Office Geoffrey Willig Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 05/02/2023 10:45 AM Completed 05/02/2023 10:48 AM Completed 05/02/2023 11:32 AM Completed 05/02/2023 12:59 PM Completed 05/03/2023 11:56 AM 05/09/2023 9:00 AM Packet Pg. 33 N N O N N O 0 Q fSf U C c LL N 3 c C Q Q LO O C1 N muuV ZZOZ : 66 00 00 N N y u �o to z y di U O NZ) ZZOZ `a8l1103 ic H Wo H kn � o zkn o� O N p O N za•� � �a •gyp �-. o Q M �l o c. oao� a� °N° 0 Q o d j:podeM leloueul=l lenu ,�; O O Wiz` z 0 ❑ °° ❑ � N W o U N W. a ct o � � U •� O O+ � N � N � x � // :4ugwLjoe}}d C� N r O $ V] $, wa � � W a C,3� U •o a C SJ. � U � � y x � o U Cd O U O y Q O M E L x N N N N LL U LL ca 0 C 0 0 a) C 0 Y N D m le13ueul=l anlsuayaidwo3 lenuuV ZZOZ : 66£5Z) ZZOZ `aalllo3 jol:podeN leloueul=l lenuuv :4uauay3e 4V LO Q M rl 00 00 N O 7 V/ V1 00 1() �O 00 M M �D M �D 1/) IO N 7 00 r Vi rl O� �D rl Vi rl O l� 00 OC ri M V1 Ol O1 IA I'O 0` d l� ry. 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U O � a bA O � N � � r•+ O O ern a,°Aw o Q N za.o14 O O c rUU�c3 W O L X N N O N N O U LL LL N ca O C 0 w N C 0 : E2 N D s le13ueul=l anlsuayaidwo3 lenuuV ZZOZ : 66£5Z) ZZOZ `aalllo3 jol:podeN leloueul=l lenuuv :4uauay3e 4V N O M � N 0 U �D N 00 00 O M � � O O NCO rn l��OpMOONO U OC O � 0 ros ��+ � tO• Q O C IA 4 � > Q. p dQ�?Qwa:wwU C1 N p k 69 N00 69 O _ 00 0 M Go; V en N � os 4 N Q N O73 ~ C O y > Q. dQaQwwwa Y Y Y �a+ M �+ 0 Y 99999999 U N FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 «. f &-a 17 1^5 �' ANNUAL r.z PREHENSIVE FINANCIAL REPORT ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2022 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS WILLIAM L. MCDANIEL, JR., CHAIRMAN - DISTRICT 5 RICK LOCASTRO, VICE-CHAIRMAN- DISTRICT 1 ANDY SOLIS, ESQ. - DISTRICT 2 BURT SAUNDERS, ESQ. - DISTRICT 3 PENNY TAYLOR - DISTRICT 4 COUNTY MANAGER AMY PATTERSON COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER CRYSTAL K. KINZEL DIRECTOR OF FINANCE AND ACCOUNTING DEREK M. JOHNSSEN, CPA Prepared by the Office of the Clerk of the Circuit Court and Comptroller, Finance and Accounting Department COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2022 INTRODUCTORY SECTION TransmittalLetter......................................................................................................................................................................... i Certificateof Achievement......................................................................................................................................................... vi FINANCIAL SECTION IndependentAuditors' Report..................................................................................................................................................... 1 Management's Discussion and Analysis (Unaudited).................................................................................................................. 4 Basic Financial Statements Statementof Net Position..................................................................................................................................................... 16 Statementof Activities.......................................................................................................................................................... 18 Balance Sheet — Governmental Funds.................................................................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................ 21 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ............................................. 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Net Activities............................................................................................................................... 23 General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis).................................................................................................................................................................. 24 Bayshore Gateway Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).......................................................................................................... 27 Immokalee Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis)................................................................................................................. 28 Grants and Shared Revenue - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget andActual (Budgetary Basis)................................................................................................................................................ 29 Statement of Net Position — Proprietary Funds..................................................................................................................... 30 Statement of Revenues, Expenses and Changes in Fund Net Position — Proprietary Funds .................................................. 32 Statement of Cash Flows — Proprietary Funds...................................................................................................................... 33 Statement of Fiduciary Net Position...................................................................................................................................... 35 Statement of Changes in Fiduciary Net Position................................................................................................................... 36 Notes to the Financial Statements........................................................................................................................................ 37 Required Supplementary Information Schedule of the County's Proportionate Share of the Net Pension Liability - Florida Retirement System Pension Plan......... 84 Schedule of County Contributions - Florida Retirement System Pension Plan....................................................................... 84 Schedule of the County's Proportionate Share of the Net Pension Liability - Retiree Health Insurance Subsidy Program ..... 84 Schedule of County Contributions - Retiree Health Insurance Subsidy Program................................................................... 84 Schedule of Changes in the Collier County Total OPEB Liability and Related Ratios - Board of County Commissioners and Constitutional Officers.......................................................................................................................... 86 Schedule of Changes in the Collier County Total OPEB Liability and Related Ratios - Sheriff ................................................ 86 Combining and Individual Fund Financial Statements and Other Supplemental Information................................................... 89 Nonmajor Governmental Funds CombiningBalance Sheet..................................................................................................................................................... 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................................. 102 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) ........... 110 COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2022 FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Financial Statements and Other Supplemental Information (Continued) Nonmajor Enterprise Funds Combining Statement of Net Position................................................................................................................................. 138 Combining Statement of Revenues, Expenses and Changes in Fund Net Position.............................................................. 139 Combining Statement of Cash Flows.................................................................................................................................. 140 Internal Service Funds Combining Statement of Net Position................................................................................................................................. 142 Combining Statement of Revenues, Expenses and Changes in Net Position....................................................................... 143 Combining Statement of Cash Flows.................................................................................................................................. 144 Fiduciary Funds Combining Statement of Fiduciary Net Position - Custodial Funds..................................................................................... 148 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds................................................................... 149 Component Units Combining Statement of Net Position................................................................................................................................. 152 Combining Statement of Activities...................................................................................................................................... 153 Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ............................................. 156 STATISTICAL SECTION NetPosition by Component..................................................................................................................................................... 160 Changein Net Position............................................................................................................................................................ 162 Governmental Activities Tax Revenues by Source.................................................................................................................... 164 Fund Balances of Governmental Funds................................................................................................................................... 165 Changes in Fund Balances of Governmental Funds................................................................................................................. 166 Assessed Value and Estimated Actual Value of Taxable Property........................................................................................... 168 Property Tax Rates — All Direct and Overlapping Governments................................................................................................ 170 PrincipalTaxpayers County-Wide............................................................................................................................................. 171 Property Tax Levies and Collections........................................................................................................................................ 172 Ratiosof Outstanding Debt by Type......................................................................................................................................... 173 Direct, Overlapping and Underlapping Governmental Activities Debt....................................................................................... 174 Pledged -Revenue Coverage..................................................................................................................................................... 175 Demographicand Economic Statistics.................................................................................................................................... 176 PrincipalEmployers................................................................................................................................................................. 177 Budgeted Full -Time Equivalent County Employees by Function............................................................................................... 178 OperatingIndicators by Function............................................................................................................................................. 179 Capital Asset Statistics by Function......................................................................................................................................... 180 COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2022 SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Independent Auditors' Report on Internal Control Over Financial Reporting and Compliance .................................................. 183 Independent Auditors' Report on Compliance for Each Major Federal Program and State Project ........................................... 185 Schedule of Expenditures of Federal Awards and State Financial Assistance......................................................................... 188 Notes to the Schedule of Expenditures of Federal Awards....................................................................................................... 194 Schedule of Findings and Questioned Costs............................................................................................................................ 195 4- r 41 �r Introductory Section 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ Crystal K. Kinzel Collier County Clerk of the Circuit Court and Comptroller 3315 Tamiami Trail East, Suite 102 Naples, Florida 34112-5324 May 9, 2023 To the Citizens and Members of the Board of County Commissioners, Collier County, Florida: It is with pleasure that we present to you, the citizens of Collier County and members of the Board of County Commissioners, the Annual Comprehensive Financial Report for the fiscal year ended September 30, 2022. This report was prepared by the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller as part of the Clerk's legally prescribed duties. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the information presented herein is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of County operations. The Clerk of the Circuit Court and Comptroller's Finance and Accounting Department, as well as County management, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements and maintaining accountability of assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. Chapter 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counties in the State. State law requires the County to submit a complete set of financial statements within forty-five days after the issuance of the audit report (but no later than nine months after the fiscal year end) presented in accordance with accounting principles generally accepted in the United States. For the fiscal year ended September 30, 2022, the independent auditor, Clifton LarsonAllen LLP, issued an unmodified ("clean") opinion on the financial statements. Their report is included in the Financial Section of this report. In addition to meeting the requirements set forth in State statutes, the audit was also designed to meet the requirements of the Government Auditing Standards, the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the Rules of the Auditor General, Chapter 10.550 Local Governmental Entity Audits. Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and the two should be read in concert. Collier County's MD&A can be found in the Financial Section immediately following the independent auditors' report. PROFILE OF THE GOVERNMENT Collier County is a Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and comprises five members elected in the five different Commission districts of the County. The Board of County Commissioners appoints a county manager to carry out policies and oversee the county's day to day operations. In addition to the County Com m 6sioners, voters elect the following five constitutional officers on Phone- (239) 252-2646 Fax- (239) 252-2755 Website- www.CollierClerk.com Email- CollierClerk@collierclerk.com a Countywide basis: the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The County provides its citizens with a wide range of services that include tax assessment and collections, law enforcement, emergency management, fire and emergency medical services, animal services, library, museum and cultural services, parks and recreation operations, road maintenance and construction, economic development and social and human services. Additionally, the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, a landfill gas to energy facility, three airports, a transit system and an amateur sports complex. The fiscal year for county government begins October 1 and ends September 30. Budgets are prepared annually and formal budgetary integration is employed as a management control throughout the year. The level of budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is established at the departmental level for personal services, operating expenditures and non -project related capital outlay separately. Debt service and transfers are controlled at the fund level and capital projects and grants are controlled at the individual project or grant level. All governmental funds adopted annual budgets for fiscal year 2022, except for the Forest Lakes Limited General Obligation Bonds debt service fund that is due to be closed out in the next fiscal year. The Board of County Commissioners conducts budget workshops during June of each year and a proposed budget is released in July. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to State statute. Two public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state's second largest county, is on the southwest coast of Florida, directly west of Miami. With a 2022 population of 390,912 (a 17.2 percent increase over the last ten years), Collier County is one of the fastest growing counties in the state over the last ten years. The resident population includes Unincorporated County (pop. 355,134) and three municipalities: the Cities of Naples (pop. 19,283), Marco Island (pop. 16,112) and Everglades (pop. 383). The County's economic base is a diverse mix concentrated in tourism, agriculture, fishing, construction, ranching and forestry with a growing services economy and an active technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. The County's manufacturing base grew from 289 establishments in 2008 to 376 in 2022, led by companies providing products varying from surgical and medical instruments, kitchen cabinets and countertops to aircraft engines and parts. Recently, the area has become particularly attractive to logistical and warehousing service providers, with Amazon and Uline opening new distribution centers. Sports tourism is a growing segment of Collier's economy. The Minto United States Open Pickleball Championship continues to expand and generally attracts national and international participation. The Paradise Coast Sports Complex is a multipurpose entertainment facility situated near 1-75 and Collier Boulevard. At completion, the Complex will contain twenty-one multipurpose fields, an outdoor fitness center, a food truck pavilion and a championship stadium. The first phase of the facility opened in October of 2020 and final completion is expected in 2023. The Complex is designed to attract national tournaments, while at the same time providing additional fields needed for local field play for sports such as soccer and baseball. To further promote economic growth, diversify the economy and encourage high -wage job creation, the Board of County Commissioners has created Economic Innovation Zones. The Ave Maria Innovation Zone, the Interchange Activity Center No. 9 Innovation Zone and the Golden Gate City Economic Development Zone were created to provide specific geographic areas a dedicated source of economic development funding through tax increment revenues. Flexible zoning overlays that will allow for reduced developmental timeframes for qualified target industry uses within the Zones are in process. Taxable property market valuation for fiscal year 2022 totaled $116.3 billion, a very high $297,514 per capita. The County's millage for General Fund operations in fiscal year 2022 remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Unemployment levels in recent years approximate, or are slightly below, the statewide average. The 2022 annual County unemployment rate stood at 2.8%, which is equal to the statewide average. Income levels are high, with a per capita personal income of $116,496. LONG TERM FINANCIAL PLANNING Each Florida local government must prepare a comprehensive plan for managing growth, providing vital services and protecting the environment. In Collier, several annual processes take place which influence long range planning and the development of the budget. Each year the County performs a three-year budget projection of primary ad valorem supported funds (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior to developing budget policy. In addition, there are several annual long range planning processes such as the Capital Improvement Element (CIE), the Annual Update and Inventory Report (AUIR), the Long Range Transportation Plan, the Water and Wastewater Master Plans, the Master Mobility Plan and concurrency planning. The County is required to prepare and present to the Board of County Commissioners an Annual Update and Inventory Report (AUIR) and adopt a five-year Capital Improvement Element (CIE). Both of these processes focus on the schedule of capital improvements for the County. The AUIR is an annual status report on public facilities and the CIE is a planning document that identifies public facilities that will be required during the next five or more years. The Capital Improvement Element is the foundation of Collier County's annual Capital Improvement Program (CIP). The amount planned for CIP projects in fiscal years 2023-2027 is $1.6 billion. Included in the County's current CIP for fiscal years 2023-2027 are approximately $550.8 million in water and wastewater projects, $477.4 million in transportation projects, $220.6 million in stormwater projects and $79.4 million in government facilities projects. In addition, parks and recreation projects of approximately $69.8 million are planned, as well as $60.5 million for tourist development funded projects, $25.5 million in solid waste projects, $55.8 million in public safety projects, $45.0 million in human services projects and miscellaneous projects totaling $9.5 million. Approximately $487.4 million of the fiscal year 2023-2027 Capital Improvement Program is currently planned to be funded by bond or loan proceeds and $469.1 million is planned to be funded by water and wastewater user fees. The remainder will be funded by a mixture of infrastructure sales tax, impact fees, gas taxes and tourist taxes. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as a funding source in the following year, maintaining General Fund budgeted reserves between 8% and 16% of operating revenues and Unincorporated Area General Fund budgeted reserves of at least 2.5% of operating expenditures. Additional policies include the assessment of impact fees at such levels as allowed by law and supported by studies, prioritizing gas taxes for payment of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds and Loan, and the establishment of a long term capital reserve funded in annual amounts of up to $5 million to protect the County's general governmental infrastructure. For enterprise operations such as the Water and Sewer District and Solid and Hazardous Waste Management, that do not receive support from general government sources, budgeted reserves are targeted to a range of forty-five to ninety days of operating expenditures. Debt administration policies include the limitation of the debt repayment period to the useful life of the underlying assets and the establishment of a 5% benchmark for net present value savings generated by refinancing. Lesser net present value savings may be considered on a case -by -case basis. Consistent with Collier County's Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized debt will be refinanced. In addition, the debt policy establishes a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13%. The Clerk of the Circuit Court and Comptroller's Finance and Accounting Department monitors the daily cash needs of the County and invests the County's funds in accordance with the Collier County Investment Policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund (Florida PRIME), other intergovernmental pools, U.S. Treasury securities, U.S. agency securities, commercial paper, corporate bonds and bankers' acceptances. The par weighted average maturity of the total managed portfolio, to first call or maturity, was 1.43 years as of September 30, 2022. The total return for fiscal year 2022 was (4.35%), the result of a 3.00% increase in the Federal Funds Rate during FY-22 and unrealized losses due to changes in fair value of long term investments as of September 30, 2022. Investment income of $12.0 million was realized during fiscal year 2022. Changes in the fair value of investments are recorded as part of interest earnings when presented in the financial statements. MAJOR INITIATIVES While the County is currently focused on many initiatives, some of the most significant include the following: - Development of the Golden Gate Golf Course property, workforce and first responder housing and mental health initiatives - Upgrades to Information Technology infrastructure and the County's various management, financial and accounting software - Completion of the construction, and operation, of the Big Corkscrew Regional Park and the Paradise Coast Sports Complex - Public safety capital projects including a new evidence facility for the Sheriff - The extension of Vanderbilt Beach Road, Randall curve improvements and bridge rehabilitation and replacement - Enhancements in storm -water capital infrastructure and maintenance service levels - Construction of utility infrastructure in the County Water and Sewer District's northeast service area - Design the expansion of water and wastewater treatment facilities in the Golden Gate Utility service area AWARDS GFOA Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2021. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report whose contents conform to program standards. The Annual Comprehensive Financial Report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past thirty-six years, from fiscal year 1986 to 2021 We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. W Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2021. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the last thirty-six consecutive years. The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court and Comptroller for its annual budget for the fiscal year beginning October 1, 2021. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. The Clerk's Office has received this award for the last twenty consecutive years. ACKNOWLEDGEMENTS The preparation and publication of this Annual Comprehensive Financial Report represents a significant effort by the Finance and Accounting Department as well as numerous County personnel who contribute to its production. In particular, we would like to express our appreciation to Suzanne Boothby, Grants Manager, Leslie Miller, Operations Manager and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to Clifton LarsonAllen, the Board of County Commissioners, the Constitutional Officers, the County Manager, Deputy County Managers, Department Heads and the Division Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Derek M. Johnssen, Director of Finance and Accounting, at 239.252.7863. Respectfully, f ! 1 Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Derek M. Johnssen, CPA Deputy Clerk, Director of Finance and Accounting Kelly Jones, CGFO Deputy Clerk, Assistant Director of Finance and Accounting v Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its annual comprehensive financial report for the fiscal year ended September 30, 2021. This was the thirty-fifth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. 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LCI1 c s �r- 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ PAW CliftonLarsonAllen LLP CLAconnect.conn Honorable Board of County Commissioners Collier County, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business - type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (the County), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County, as of September 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof , and the respective budgetary comparison schedules for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Board of County Commissioners Collier County, Florida Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 County's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the schedules of the County's proportionate share of the net pension liability and of County contributions, and the schedules of other postemployment benefits total OPEB liability and related ratios for the retiree health plans be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Honorable Board of County Commissioners Collier County, Florida Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The combining and individual nonmajor fund financial statements, and schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Rules of the Auditor General for Local Governmental Entity Audits are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining and individual nonmajor fund financial statements, and schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Rules of the Auditor General for Local Governmental Entity Audits are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 21, 2023, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering County's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida April 21, 2023 3 MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the County's financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30, 2022. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i-vi of this report. Financial Highlights • Collier County's assets and deferred outflows exceeded its liabilities and deferred inflows as of September 30, 2022 by $3,539,600,799. Of this amount, $328,030,984 represents unrestricted net position and may be used to meet future County obligations. Unrestricted net position increased by $43,909,818 from the previous year. • The County's total net position increased by $300,991,260 when compared to fiscal year 2021, with a $279,657,133 increase from governmental activities and a $21,334,127 increase resulting from business -type activities. • As of September 30, 2022, Collier County's governmental fund financial statements showed combined ending fund balances of $1,140,467,504, an increase of $149,811,270 over the previous fiscal year. Of the total combined ending governmental fund balance, $112,913,036 is reported as unassigned. • The General Fund reported an unassigned fund balance of $114,549,101 at September 30, 2022, a decrease in unassigned General Fund balance of $2,566,802 when compared to September 30, 2021. • The County's proportionate share of the Florida Retirement System's defined pension benefit and health insurance subsidy net pension liabilities was $365,560,649 as of September 30, 2022, an increase of $223,627,049 from the previous year. • Total bonded debt, notes, outstanding loans, leases and financed purchase obligations owed by Collier County decreased by $52,028,189 during fiscal year 2022, with a decrease in governmental activities debt of $32,923,693 and a decrease in business -type activities debt of $19,104,496. Additional information on debt activity can be found in Note 7 to the financial statements beginning on page 56. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County's basic financial statements. Collier County's basic financial statements include government -wide and fund financial statements, as well as notes to the basic financial statements. Government -Wide Financial Statements Government -wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 19 of this report. The Statement of Net Position shows the financial position of Collier County as of September 30, 2022. The statement shows the County's assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the difference being reported as net position. Changes in net position are useful indicators of financial condition. The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal period. All changes in net position are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or certain unused leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business -type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business -type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds Governmental funds, presented on pages 20 to 29, account for substantially the same functions as governmental activities reported under the government -wide Statement of Net Position and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government's nearterm financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government -wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County's statements include five major funds, the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies, Grants and Shared Revenue Fund and the Infrastructure Sales Tax fund. There are many smaller governmental funds under Collier County management and they are aggregated in a total column named "other governmental funds". Combining statements for these other governmental funds have been presented elsewhere in this report. Collier County adopts an annual budget as described in Note 1 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with this budget. Budgetary comparison schedules for the Infrastructure Sales Tax capital project major fund and non -major governmental funds required to adopt an annual budget are presented in the combining statements presented elsewhere in this report. Proprietary funds Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on pages 30 to 34 of this report. Enterprise funds report, with more detail, the same functions presented as business -type activities in the government -wide financial statements for water and sewer, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund, the Solid Waste Disposal Fund and the Emergency Medical Services Fund are presented individually as major funds. Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker's compensation insurance, property and casualty insurance, fleet operations and information technology. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government. These funds are not presented in the government -wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds begin on page 35 of this report. The County uses a private purpose trust fund for the Sheriff's employee flexible spending account. The County also uses custodial funds to report amounts that the government has custody of, but does not have control over the use of the funds. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government -wide and fund financial statements. The notes appear on pages 37 to 81 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 91. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net position for enterprise funds. Also included are combining financial statements for internal service and custodial funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical section of this report. The Statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. Government -Wide Financial Analysis As noted earlier, net position may serve overtime as a useful indicator of a government's financial position. Assets and deferred outflows exceed liabilities and deferred inflows by $3,539,600,799 as of the fiscal year ending September 30, 2022 for Collier County. Positive balances were reported in all categories of net position in the governmental and business -type activities for fiscal year 2022. Collier County's net position at September 30, 2022 increased by $43,909,818 for unrestricted net position and increased $120,062,069 for restricted net position. Restricted net position consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to meet the County's ongoing obligations. Increases in restricted net position were mainly due to a $83,996,505 increase in restricted net position related to Infrastructure Sales Tax capital projects and a $20,896,223 increase in restricted net position related to Conservation Collier. The increase in unrestricted net position was mainly due to the increases in property tax and sales tax revenues, along with $10 million in revenue recovery from the Coronavirus State and Local Fiscal Recovery Funds from the American Rescue Plan Act of 2021. Collier County's investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 67.2% of net position as of September 30, 2022, compared to 69.3% as of September 30, 2021. During fiscal year 2022, the County's net investment in capital assets increased by $137,019,373, but decreased as a proportion of total net position due to the overall increase in combined restricted and unrestricted net position discussed above. Capital assets provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets. The following are Collier County's net position and changes in net position for the fiscal years ended September 30, 2021 and 2022, shown in condensed form: Current and other assets Capital assets, net Total assets Deferred outflows of resources Long-term liabilities Current liabilities Total liabilities Deferred inflows of resources Net position: Net investment in capital assets Restricted Unrestricted Total net position Collier County's Schedule of Net Position (in millions) Total Business -type Percentage Governmental Activities Activities Total Change 2022 2021 2022 2021 2022 2021 2021-2022 $ 1,377.4 $ 1,211.9 $ 532.9 $ 545.6 $ 1,910.3 $ 1,757.5 8.7% 1,856.7 1,752.9 1,076.5 1,058.3 2,933.2 2,811.2 4.3% 3,234.1 2,964.8 1,609.4 1,603.9 4,843.5 4,568.7 6.0% 101.4 83.1 20.9 16.5 122.3 99.6 22.8% 729.1 192.6 575.5 180.3 418.9 45.9 393.0 50.9 1,148.0 238.5 968.5 231.2 18.5% 3.29/o 921.7 755.8 464.8 443.9 1,386.5 1,199.7 15.69/6 33.9 191.8 5.8 38.2 39.7 230.0 (82.7)% 1,509.2 1,396.9 871.0 846.3 2,380.2 2,243.2 6.1% 782.8 660.5 48.5 50.8 831.3 711.3 16.9% 87.9 42.9 240.2 241.2 328.1 284.1 15.59/o $ 2,379.9 $ 2,100.3 $ 1,159.7 $ 1,138.3 $ 3,539.6 $ 3,238.6 9.3% 101 Collier County's Schedule of Changes in Net Position (in millions) Total Percentage Governmental Activities Business -type Activities Total Change 2022 2021 2022 2021 2022 2021 2021-2022 Revenues Program revenues: Fines, fees and charges for services $ 88.0 $ 83.1 $ 266.9 $ 249.6 $ 354.9 $ 332.7 6.7% Operating grants and contributions 79.2 98.7 8.2 26.4 87.4 125.1 (30.1) i, Capital grants and contributions 132.7 50.3 48.2 43.0 180.9 93.3 93.9% General revenues: Property taxes 447.9 400.6 - - 447.9 400.6 11.8% Other taxes and shared revenues 281.5 234.5 - 281.5 234.5 20.0% Interest earnings (55.9) 1.6 (22.9) 0.4 (78.8) 2.0 (4,040.0)% Miscellaneous 7.9 18.4 0.2 1.5 8.1 19.9 (59.3)% Total revenues 981.3 887.2 300.6 320.9 1,281.9 1,208.1 6.1% Expenses General government 139.0 129.8 - - 139.0 129.8 7.1% Public safety 274.3 237.4 274.3 237.4 15.5% Physical environment 30.3 23.2 30.3 23.2 30.6% Transportation 94.1 88.7 94.1 88.7 6.1% Economic environment 41.4 14.4 41.4 14.4 187.5% Human services 25.3 77.2 25.3 77.2 (67.2)% Culture and recreation 70.8 59.3 70.8 59.3 19.4% Interest on long-term debt 10.8 14.6 - - 10.8 14.6 (26.0)% Water and sewer - - 175.8 166.0 175.8 166.0 5.9% Solid waste 51.1 51.9 51.1 51.9 (1.5)% Emergency medical services 41.6 27.8 41.6 27.8 49.6% Airport authority 11.6 7.8 11.6 7.8 48.7% Mass transit - - 14.8 13.7 14.8 13.7 8.0% Total expenses 686.0 644.6 294.9 267.2 980.9 911.8 7.6% Increase in net position before net transfers 295.3 242.6 5.7 53.7 301.0 296.3 1.6% Transfers, net (15.7) (8.9) 15.7 8.9 - - 0.0% Change in net position 279.6 233.7 21.4 62.6 301.0 296.3 1.6% Net position - beginning 2,100.3 1,866.6 1,138.3 1,075.7 3,238.6 2,942.3 10.1 % Net position - ending $ 2,379.9 $ 2,100.3 $ 1,159.7 $ 1,138.3 $ 3,539.6 $ 3,238.6 9.3% Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically by function. General revenues, such as property taxes, must be used to the extent that the fees, fines, grants and contributions do not cover the cost of the governmental function. Public safety is the largest category of expenses followed by general government. Pursuant to generally accepted accounting principles unrealized losses on investments are included with investment earnings. Due to the increase in interest rates seen during fiscal year 2022, interest earnings are negative in the financial statements. Negative interest earnings amounts are not included in the below tables. Revenues and Expenses Governmental Activities Fiscal Year 2022 300 200 c 0 100 0 11 11 In General Public Safety Physical Government Environment 11 so _■ ■ 1 Transportation Economic Human Culture and Environment Services Recreation Revenues 0 Expenses Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by infrastructure sales tax. Revenue by Type Governmental Activities Fiscal Year 2022 Infrastructure sales tax: 11.6% Miscellaneous revenue: 3.10/, Tourist Taxes: 4.6% Sales Taxes: 6.3% Gas Taxes: 2.3% Capital Grants and Contributions: 12.8% Operating Grants and Contributions: 7.6% Property Taxes: 43.2% Fines, Fees and Charges for Services: 8.5% N. Revenues and expenses are shown by business -type activity. The Water and Sewer system is the largest business -type activity followed by the Solid Waste system. Pursuant to generally accepted accounting principles unrealized losses on investments are included with investment earnings. Due to the increase in interest rates seen during fiscal year 2022, interest earnings are negative in the financial statements. Negative interest earnings amounts are not included in the below tables. Revenues and Expenses Business -type Activities Fiscal Year 2022 250 200 c 150 0 100 50 0 Water and Sewer Solid Waste Emergency Medical Airport Authority Mass Transit Services Revenues 0 Expenses Revenues for business -type activities are shown graphically by type. The largest type of revenue is fines, fees and charges for services followed by capital grants and contributions. Revenue by Type Business -type Activities Fiscal Year 2022 Other Income: 0.1% Capital Grants and Contributions: 14.9% Operating Grants and Contributions: 2.5% lb Fines, Fees and Charges for Services: 82.5% 0j Governmental Activities The current year increase in the net position of governmental activities amounted to $279,657,133, an increase of 13.3% when compared to the previous year's net position. The previous fiscal years' increase in net position was 12.5%. The current years' increase is mainly due to the following: Overall, revenues related to governmental activities increased by 10.6%, or $94,036,024 while expenses increased by 6.4%, or $41,270,008. Governmental activities revenues increased primarily due to the 1 % Infrastructure Sales Tax. Effective January 1, 2019, the tax generated $120,375,618 in revenue during fiscal year 2022. Also contributing to the increase was an increase in total ad valorem taxes collected in fiscal year 2022, when compared to fiscal year 2021, of $47,293,578. The increase in ad valorem revenues was due to a 5.5% increase in county wide taxable value and the re-establishment of a county wide millage of .25 mills for Conservation Collier. In addition, sales tax increased $9,310,665 and tourist taxes increased $11,278,368 as the County continues to see an increase in visitors after the pandemic. The County also received $69,475,500 in capital contributions as a result of stormwater management permanent easement donations. • Interest earnings decreased as a result of the fair value impact on investments of five Federal Reserve rate increases totaling 3% during fiscal year 2022. • Public safety expenses increased by $36,809,713 largely due to an increase in personal services as a result of a pay plan increase in the current fiscal year as well as an increase in pension costs. In addition, economic environment expenses increased by $27,007,742 or 187.8% and human services expenses decreased by $51,904,386 or 67.2% as the County transitioned from the COVID-19 related grant programs to the American Rescue Plan grant programs. • Interest expense decreased 25.9% over fiscal year 2021, primarily due to the refinancing of the Series 2011 and 2013 Special Obligation Refunding Revenue Bonds by the Series 2022A and 2022B Revenue Notes (bank term loans). These issues are discussed in more detail in the notes to these financial statements. Business -type Activities The increase in net position related to business -type activities amounted to $21,334,127 in the aggregate, representing a 1.9% increase over the previous year's net position. The previous fiscal year's increase in net position was 5.8%. The current year's increase is mainly due to the following: • The Collier County Water and Sewer District (District) saw an increase of $8,544,278 in net position. The increase in the District's net position is largely due to a 2.9% user fee rate increase that went into effect October 1, 2021 and $38,490,241 of water and sewer capital grants and contributions, the majority of which is related to developer water and wastewater infrastructure contributions. • Solid Waste Disposal experienced an increase of $7,274,161 in net position. This increase is primarily due to a 3.2% rate increase, offset by a $1,049,150 reduction in operating grants and contributions and a $1,344,998 reduction in insurance reimbursements as Hurricane Irma reimbursements are closing out. • Emergency Medical Services saw a decrease of $1,006,183 in net position. This decrease is primarily due to the increase in personal services related to a pay plan adjustment and an increase in the allocated pension plan expense of $6,832,136. Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Permanent Funds, Debt Service Funds and Capital Project Funds. As of September 30, 2022, Collier County governmental funds reported combined fund balances of $1,140,467,504, an increase of $149,811,270 when compared to prior year combined fund balances. The governmental funds had non -spendable fund balances of $10,804,056 consisting of inventory, prepaid items, notes receivable, endowments and advances to other funds. The restricted fund balance was $822,594,485 and consists of monies whose expenditure is externally constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $307,068,963 in fund balance, $48,431,870 is classified as committed, $145,724,057 is recorded as assigned and $112,913,036 is recorded as unassigned. 10 The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2022: • The General Fund is the primary operating fund of Collier County. At September 30, 2022, total fund balance in the General Fund was $153,799,935, of which $114,549,101 was unassigned. Asa percentage of total general fund expenditures and net transfers, the unassigned portion is 25.4%. The total fund balance increased by $21,037,984 or 15.8%, compared to the September 30, 2021 total fund balance. The General Fund's total fund balance increased due to increased Ad Valorem Tax collections of $18,203,537. This increase was directly related to a 5.5% increase in county wide taxable value. There was also a $23.5 million increase in intergovernmental revenue as a result of an additional $8.9 million in half cent sales tax and State revenue sharing and $10 million in revenue recovery from the Coronavirus State and Local Fiscal Recovery Funds under the American Rescue Plan Act of 2021. The increases in revenue were offset by a $16.3 million increase in the Sheriff's personal services due to pay plan adjustments. • The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle community. During fiscal year 2022, the Bayshore Gateway Community Redevelopment Agency collected $2,683,300 in tax increment revenues. In addition, the Agency received $30,000 in charges for services related to the water line and fire hydrant project and ($361,902) in interest earnings. Operating expenditures of $1,063,823, mainly consisting of personal services and planning consulting services within the district. In addition, capital expenditures of $27,921 were made for stormwater, fencing and parking lot improvements. • The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2022, the Immokalee Community Redevelopment Agency collected $1,007,000 in tax increment revenues. In addition, the Agency received $67,636 in charges for services related to the sidewalk project and ($84,147) in interest earnings. Operating expenditures of $410,970, mainly personal services and general operating expenditures, were associated with the Immokalee Community Redevelopment Agency. In addition, debt service expenditures of $36,221 were made for leased office space. • The Grants and Shared Revenue fund was established to account for the revenues received from federal, state and local grants. The Grants and Shared Revenue fund saw a decrease in intergovernmental revenue of $32,942,222 and an increase in economic environment expenditures of $29,421,178 and a decrease in human services expenditures of $58,305,416 in fiscal year 2022, primarily as a result of state and local grants shifting from COVID-19 response and related community assistance to economic recovery and housing assistance. Grant funded capital outlay included $1,454,308 for road improvements, $942,678 in traffic operations network upgrades and $260,267 in vehicles and equipment. • The Infrastructure Sales Tax fund was established to account for the proceeds of the 1 % Infrastructure Sales Tax. The tax was effective as of January 1, 2019 and fiscal year 2022 collections were $120,375,618. The Infrastructure Sales Tax Fund had interest earnings of ($9,756,993) and capital outlay totaled $31,656,065. Capital outlay included $6,978,779 for the Big Corkscrew Island Regional Park, $632,905 for various air conditioning improvements, $15,130,718 for road and bridge projects, $362,220 for the Sheriff's Forensics Building and other jail improvements, $950,526 for building automation and energy management system improvements, $1,179,247 for hurricane resiliency projects, $1,046,739 for the new chiller plant, $346,961 for the new mental health facility, $33,509 for the Emergency Operations Center garage enclosure and $349,111 for the new Emergency Medical Services Station in Golden Gate Estates. Proprietary Funds Proprietary fund statements provide the same information as the business -type activities in the government -wide financial statements, but in greater detail, and on a fund basis for enterprise funds. At September 30, 2022, total net position amounted to $1,161,930,947 for enterprise funds, as compared to $1,141,034,869, as of September 30, 2021, an increase of $20,896,078. Net position changes as a result of operations, non -operating revenues and expenses, capital contributions and grants and donations. For fiscal year 2022, the County Water and Sewer fund's activities represent the largest share of the increase in the business -type net position. For the year ended September 30, 2022, the Collier County Water and Sewer District (District) reported capital grants and contributions of $38,490,241, which consists of water and sewer impact fees of $19,814,420, $18,426,432 in developer infrastructure contributions and other capital contributions of $249,389. Emergency Medical Services reported charges for services of $18,445,230 in 2022. Personal services expenditures increased from $19,742,095 in fiscal year 2021 to $32,617,400 in fiscal year 2022 due to an increase in the pay plan along with an increase in pension costs. For fiscal year 2022, Emergency Medical Services relied on a $21,369,500 transfer from the General Fund to supplement the user charges to provide emergency medical services to the County. 11 Net Operating Income/(Loss) 2022 2021 County Water and Sewer $ 12,998,887 $ 11,192,448 Solid Waste Disposal 9,269,912 7,401,517 Emergency Medical Services (22,997,903) (13,574,387) Non -major enterprise funds (14,616,257) (12,854,780) Total $ (15,345,361) $ (7,835,202) The Collier County Water and Sewer District's net operating income increased by $1,806,439, or 16.1 %, when compared to fiscal year 2021. The increase in net operating income was primarily the result of a 2.9% rate increase effective October 2021, offset by a 4.7% increase in total operating expenses, including depreciation and amortization. Personal services expenses increased due to a pay plan increase as well as an increase of $921,563 for pension expense. General and administrative expenses increased by $2,053,440 as a result of increasing electricity rates and the cost of chemicals used in water production and wastewater treatment. County Water and Sewer payments in lieu of taxes paid to the General Fund of $9,731,800 were reclassified from operating expense to transfers out for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Solid Waste Disposal fund's net operating income increased by $1,868,395, or 25.2%, when compared to fiscal year 2021. The increase in net operating income was primarily the result of a 3.3% increase in tipping rate offset by a 1.2% decrease in total operating expenses, including depreciation and amortization. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $427,500 were reclassified from operating expense to transfers out for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Emergency Medical Services fund's net operating loss increased by $9,423,516, or 69.4%, when compared to fiscal year 2021. The increase in net operating loss was mainly brought by the increase in personal services related to a pay plan adjustment and an increase in the allocated pension plan expense of $6,832,136. Capital Assets Collier County's financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County's investment in capital assets for the governmental and business -type activities amounted to $2,933,264,748, net of accumulated depreciation. This investment in capital assets includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year net of accumulated depreciation increased by $122,058,021, when compared to the previous year. There was an increase in the governmental activities capital assets of $103,827,980, or 5.9%, while the business -type activities capital assets increased by $18,230,041, or 1.7%. The major capital asset activities during the current and previous fiscal years are as follows: • Capitalization from construction in process of $66,155,126 in governmental activity costs including $12,515,500 related to the construction of the Heritage Bay Government Building, $18,129,732 for Big Island Corkscrew Regional Park, and $7,188,803 in beach renourishment. The remaining $28,321,091 is related to $4,773,229 in other transportation projects, $9,077,958 in park facilities, $3,297,727 in public safety projects, $5,887,998 in stormwater projects and $5,284,179 in other capital projects. • The business -type activities capitalized $45,692,071 of construction in process during fiscal year 2022 including $8,513,111 for improvements to the Naples Park Basin, $9,261,994 for runway improvements and other airport projects, $15,713,252 in water line improvements in the 1-75/County Road 951 area, $1,368,490 in master pump and force main system improvements, $9,695,912 in other County Water and Sewer projects and $600,621 for Solid Waste projects. The remaining $538,691 was for various Mass Transit projects. • Developer donated water and wastewater infrastructure in fiscal year 2022 amounted to $18,426,432 and $18,180,218 in fiscal year 2021. Subdivisions are required to meet County standards when installing water and wastewater services. Once completed and inspected, these assets are donated to and accepted by the County. • Collier County acquired $82,708,568 of land and non -depreciable assets in fiscal year 2022, compared to $39,481,138 for fiscal year 2021. Fiscal year 2022 land acquisitions were primarily related to the acceptance of $69.6 million in stormwater permanent easements from the Florida Department of Transportation. Additional information regarding Collier County's capital assets can be found in Note 6 beginning on page 55 of this report. 12 Debt Administration At September 30, 2022, Collier County had total bonded debt, notes, loans, leases and financed purchase obligations of $757,567,596, a decrease of $52,028,189 from the previous year. The following table illustrates the balances of all bonds, notes, loans, capital leases and financed purchase obligations for the fiscal years ended September 30, 2022 and 2021: Outstanding Debt 2022 2021 Revenue Bonds $ 471,978,619 $ 607,311,269 Direct Placement Loans Payable 234,133,732 143,698,000 Commercial Paper and Notes Payable 43,538,848 50,429,848 Leases 7,916,397 8,128,231 Financed purchase obligations - 28,437 Total outstanding debt $ 757,567,596 $ 809,595,785 Collier County's Special Obligation Revenue Bonds carry ratings of Aaa, AAA and AA+ by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The Series 2017, 2019, 2022A and 2022B Special Obligation Refunding Revenue Notes (Bank Term Loans) were issued as direct placements with commercial banks and therefore carry an implied rating of Aaa, AAA and AA+ by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The County's Series 2012 Gas Tax Refunding Revenue Bonds carry ratings of A2, A+ and AA- by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The Series 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) was issued as a direct placement with a commercial bank and therefore carries an implied rating of A2, A+ and AA- by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. Collier County's Tourist Development Tax Revenue Bonds carry ratings of Aa3 and AA+ by Moody's and Fitch Ratings, Inc., respectively. Collier County's Senior Lien Water and Sewer Revenue Bonds carry ratings of Aaa and AAA, respectively, by Moody's and Fitch Ratings, Inc. The Series 2018 County Water and Sewer Revenue Bond was issued as a direct placement with a commercial bank and, as such, carries an implied rating of Aaa and AAA by Moody's and Fitch Ratings, Inc., respectively. The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County's long-term debt can be found in Note 7 beginning on page 56 of this report. General Fund Budgetary Highlights During the 2022 fiscal year, the General Fund expenditure appropriations increased by $11,363,194. Significant variances between the original budget and the final amended budget are listed below: • $706,006 increase in Facilities Management operating expenditures due to increases in contract rates. • $6,306,999 increase in Sheriff personal services for a pay plan adjustment put in place in the fourth quarter of 2022. • $1,025,502 increase in Economic Development operating due to re -budgeting of lapsed appropriations from the previous fiscal year primarily to provide impact fee assistance for the new Immokalee Career Path Learning Lab. • $566,681 in Parks Operations operating due to re -budgeting of lapsed appropriations from the previous fiscal year primarily for equipment that was ordered prior to the end of the 2021 fiscal year, but was not received until 2022. • $643,386 in Parks Maintenance operating due to an increase in the cost of supplies as well as an increased focus on park maintenance in the 2022 fiscal year. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2022. Tax revenues were under budget by $13,943,239 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4.0% to 1.0%, depending on the date of payment. Other general administrative operating was under budget $3,269,684 due to anticipated projects being put on hold as County Management evaluates priorities for the current fiscal year. Sheriff personal services was $7,047,629 under budget and the capital outlay was $3,682,748 over budget for the 2022 fiscal year. The Sheriff was under budget in personal services due to many vacant positions during the year and was over budget in capital outlay as a result of outfitting their new helicopter with additional equipment. The Economic Development operating was $1,489,844 under budget due to delays in various projects due to the pandemic. The Economic Development Department re -budgeted the majority of these funds in fiscal year 2023. Mental health operating under budget $1,105,123 due to a reduction in required contributions to mental health service providers. Park operations were $1,096,079 under budget in large part due to the Big Corkscrew Regional Park not being fully operational and lower than expected maintenance costs at the Golden Gate Golf Course property. 13 Economic Factors and Year 2023 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2023 budget: • A 3.5% increase in countywide taxable property values. • Millage neutral General Fund tax rate. • Implement the second phase of the compensation and pay plan adjustments with a budget allocation of $10 million for the County Manager's Agency. • Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff). During fiscal year 2022, the General Fund unassigned fund balance decreased by $2,566,802 to $114,549,101. As of January 6, 2023, $102,814,199 of the fiscal year 2022 unassigned fund balance has been appropriated as carryforward for fiscal year 2023, with $57,027,100 budgeted in reserves. On September 28, 2022, Hurricane Ian made landfall just north of Collier County as a category 4 storm. The County currently estimates a $125.2 million financial impact including $65.0 million for debris removal and $25.0 million for an emergency berm along the County beaches to provide future storm surge protection. The majority of these costs are expected to be reimbursed by the Federal Emergency Management and insurances. Contact Information This financial report is intended to give the user a general overview of Collier County Government's finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court and Comptroller Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112-5746 Our office may also be contacted via the internet at www.colliercierk.com. 14 r Basic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION September 30, 2022 ASSETS Current assets: Cash and investments Trade receivables, net Special assessments receivable Interest receivable Due from other governments Lease receivable Internal balances Deposits Inventory Prepaid costs Restricted assets: Cash and investments Trade receivables, net Lease receivable Notes receivable Interest receivable Due from other governments Deposits Inventory Inventory for resale Total current assets Noncurrent assets: Restricted assets: Cash and investments Lease receivable Notes receivable Impact fee receivable Lease receivable Notes receivable Capital assets: Land and non -depreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources The notes to the financial statements are an integral part of this statement. Primary Government Governmental Business -type Component Activities Activities Total Units $ 408,715,507 $ 274,476,372 $ 683,191,879 $ 475,561 1,911,071 22,294,660 24,205,731 - 1,405 87,835 89,240 503,681 702,220 1,205,901 12,968,621 5,383,132 18,351,753 290,532 127,944 418,476 3,710,246 (3,710,246) - 20,118 1,694,097 1,714,215 1,828,623 8,528,051 10,356,674 3,309,465 129,121 3,438, 586 116,211,150 13,170,328 129,381,478 1,889,674 - 1,889,674 575 575 53,979 - 53,979 1,039,758 25,309 1,065,067 31,386,677 4,172,976 35,559,653 1,875 - 1,875 1,170,909 1,170,909 3,888,793 - 3,888,793 - 588,902,659 327,081,799 915,984,458 475,561 773,201,163 203,242,761 976,443,924 18,523 - 18,523 189,428 189,428 7,271,455 - 7,271,455 6,352,493 2,543,570 8,896,063 1,492,848 - 1,492,848 728,843,471 178,125,687 906,969,158 1,127,909,726 898,385,864 2,026,295,590 2,645,279,107 1,282,297,882 3,927,576,989 - 3,234,181,766 1,609,379,681 4,843,561,447 475,561 3,953,670 2,158,123 6,111,793 18,041, 067 132,467 18,173, 534 79,410, 517 18,626,051 98,036,568 $ 101,405,254 $ 20,916,641 $ 122,321,895 $ 16 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION (continued) September 30, 2022 Primary Government Governmental Business -type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable $ 17,236,314 $ 13,667,643 $ 30,903,957 $ Wages payable 11,167,913 3,730,446 14,898,359 Retainage payable 523,426 1,955,578 2,479,004 Due to other governments 5,901,834 15,443 5,917,277 Self-insurance claims payable 9,472,974 - 9,472,974 Compensated absences 12,677,286 3,273,833 15,951,119 Unearned revenue 150,171 62,746 212,917 Net pension liability 60,829 12,884 73,713 Landfill post -closure liability - 39,413 39,413 Leases payable 877,073 97,703 974,776 Bonds, loans and notes payable 30,235,000 10,233,000 40,468,000 Liabilities payable from restricted assets: Accounts payable 22,228,897 3,532,959 25,761,856 Wages payable 2,609,856 - 2,609,856 Retainage payable 7,563,227 2,455,335 10,018,562 Refundable deposits 6,146,046 198,092 6,344,138 Interest payable 4,697,173 2,968,340 7,665,513 Due to other governments 4,320,431 117,960 4,438,391 Unearned revenue 56,738,625 85,542 56,824,167 Bonds, loans and notes payable - 3,480,848 3,480,848 Total current liabilities 192,607,075 45,927,765 238,534,840 Noncurrent liabilities: Self-insurance claims payable 2,410,072 - 2,410,072 Compensated absences 23,917,334 818,458 24,735,792 Leases payable 6,431,940 509,681 6,941,621 Landfill post -closure liability - 1,348,017 1,348,017 Total OPEB liability 38,988,799 2,381,033 41,369,832 Net pension liability 298,939,089 66,547,847 365,486,936 Bonds, loans and notes payable 358,423,758 347,278,593 705,702,351 Total noncurrent liabilities 729,110,992 418,883,629 1,147,994,621 Total liabilities 921,718,067 464,811,394 1,386,529,461 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 6,127,367 2,580,067 8,707,434 Deferred inflows of resources related to OPEB 7,440,926 616,853 8,057,779 Deferred inflows of resources related to pensions 20,357,472 2,630,397 22,987,869 Total deferred inflows of resources 33,925,765 5,827,317 39,753,082 NET POSITION Net investment in capital assets 1,509,272,394 870,966,299 2,380,238,693 Restricted for: Growth related capital expansion 177,223,597 21,172,753 198,396,350 Transportation capital projects 46,318,237 - 46,318,237 Community development 40,168,716 40,168,716 Tourist development 124,277,153 124,277,153 Conservation Collier 47,202,764 47,202,764 Community redevelopment 13,250,085 13,250,085 Infrastructure sales tax capital projects 283,111,965 - 283,111,965 Grants 14,168,365 4,617,873 18,786,238 Debt service 1,169,310 22,420,366 23,589,676 Court programs 18,790,047 - 18,790,047 Public safety 6,527,807 6,527,807 Nonexpendable purposes - other 5,522,800 5,522,800 Special revenues - other 5,089,284 - 5,089,284 Renewal and replacement - 300,000 300,000 Unrestricted 87,850,664 240,180,320 328,030,984 475,561 Total net position $ 2,379,943,188 $ 1,159,657,611 $ 3,539,600 799 $ 475,561 17 COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2022 FUNCTIONS/PROGRAMS Primary Government: Governmental Activities: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Interest and fiscal charges Total governmental activities Business -type Activities: Water and sewer Solid waste Emergency medical services Airport authority Mass transit Total business -type activities Total primary government Component Units: Industrial Development Authority Health Facilities Authority Housing Finance Authority Educational Facilities Authority Total component units The notes to the financial statements are an integral part of this statement. Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions $ 138,960,771 $ 46,132,921 $ 1,427,618 $ 5,706,065 274,244,307 28,899,566 14,678,465 5,325,922 30,338,183 560,776 4,101,756 72,434,949 94,079,401 1,700,283 5,526,452 33,871,700 41,387,106 160,213 40,483,525 8,940 25,313,857 536,038 12,405,639 - 70,800,140 10,014,985 622,664 15,354,903 10,817,510 - - - 685,941,275 88,004,782 79,246,119 132,702,479 175,793,660 177,259,852 - 38,247,663 51,071,233 60,340,180 106,431 - 41,625,852 18,490,663 1,711,537 - 11,612,361 9,633,191 76,424 5,616,470 14,765,813 1,140,274 6,277,688 4,332,756 294,868,919 266,864,160 8,172,080 48,196,889 $ 980,810,194 $ 354,868,942 $ 87,418,199 $ 180,899,368 $ 7,675 $ - $ $ 4,687 41,250 8,125 60,500 1,189 8,273 $ 21,676 $ 110,023 $ $ General revenues: Property taxes Gas taxes Sales tax Touristtaxes Communications services tax Infrastructure sales tax State revenue sharing Othertaxes Interest earnings Miscellaneous Transfers, net Total general revenues and transfers Change in net position Net position - beginning Net position - ending 18 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -type Component Activities Activities Total Units $ (85,694,167) $ $ (85,694,167) $ (225,340,354) (225,340,354) 46,759,298 46,759,298 (52,980,966) (52,980,966) (734,428) (734,428) (12,372,180) (12,372,180) (44,807,588) (44,807,588) (10,817,510) (10,817,510) (385,987,895) (385,987,895) 39,713,855 39,713,855 9,375,378 9,375,378 (21,423,652) (21,423,652) 3,713,724 3,713,724 (3,015,095) (3,015,095) 28,364,210 28,364,210 $ (385,987,895) $ 28,364,210 $ (357,623,685) $ (7,675) 36,563 52,375 $ 88,347 $ 447,900,612 $ $ 447,900,612 $ 24,195,878 24,195,878 65,042,976 65,042,976 47,470,485 47,470,485 4,037,536 4,037,536 120,375,618 120,375,618 17,758,152 17,758,152 2,621,516 2,621,516 (55,942,580) (22,904,691) (78,847,271) - 7,898,585 160,858 8,059,443 131 (15,713,750) 15,713,750 - - 665,645,028 (7,030,083) 658,614,945 131 279,657,133 21,334,127 300,991,260 88,478 2,100,286,055 1,138,323,484 3,238,609,539 387,083 $ 2,379,943,188 $ 1,159,657,611 $ 3,539,600,799 $ 475, 661 19 COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2022 Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Infrastructure Governmental Governmental Fund Agency Agency Revenue Sales Tax Funds Funds ASSETS Cash and investments $ 168,876,979 $ 7,823,709 $ 1,807,931 $ 65,201,995 $ 264,997,024 $704,556,761 $ 1,213,264,399 Receivables: Interest 185,251 9,891 2,276 82,713 299,217 853,733 1,433,081 Trade, net 515,179 - - 1,743 - 2,078,887 2,595,809 Notes 1,492,848 - 243,407 1,736,255 Impact fee - 7,271,455 7,271,455 Special assessments - 1,405 1,405 Lease 405,564 - 6,256,559 6,662,123 Due from other funds 1,019,111 - 343,598 54,276 4,199,150 5,616,135 Due from other governments 8,905,388 13,355 4,870,914 17,761,448 12,706,609 44,257,714 Deposits 20,118 - 625 - - 1,250 21,993 Inventory for resale - 3,694,000 - 194,793 3,888,793 Inventory 894,057 - 1,470,752 2,364,809 Advances to other funds 268,100 18,882,818 19,150,918 Prepaid costs 1,155,499 - - - 1,155,499 Total assets $ 183, 338,094 $ 11,540,955 $ 1,810,832 $ 70,500,963 $ 283, 111,965 $758, 117,579 $ 1,309,420,388 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 10,963,405 $ 61,113 $ 3,973 $ 4,242,845 $ 8,170,734 $ 14,255,706 $ 37,697,776 Wages payable 9,464,876 25,282 11,107 218,666 - 3,636,524 13,356,455 Due to other funds 2,882,930 - - 1,635,002 1,261,718 5,779,650 Due to other governments 4,935,614 227 121,030 5,126,117 10,182,988 Unearned revenues 10 - 56,390,628 350,748 56,741,386 Refundable deposits 1,310,910 - 4,835,136 6,146,046 Retainage payable - 108,961 2,237,680 5,740,012 8,086,653 Advances from other funds - - - 17,550,493 17,550,493 Total liabilities 29,557,745 86,395 15,307 62,717,132 10,408,414 52,756,454 155,541,447 Deferred inflows of resources: Unavailable revenue 2,500 - - 10,115 - 7,271,455 7,284,070 Related to leases 377,914 - 5,749,453 6,127,367 Total deferred inflows of resources 380,414 10,115 13,020,908 13,411,437 Fund balances: Nonspendable 3,810,504 - - - 6,993,552 10,804,056 Restricted 196,863 11,454,560 1,795,525 7,773,716 272,703,551 528,670,270 822,594,485 Committed - - - - - 48,431,870 48,431,870 Assigned 35,243,467 110,480,590 145,724,057 Unassigned 114,549,101 (1,636,065) 112,913,036 Total fund balances 153,799,935 11,454,560 1,795,525 7,773,716 272,703,551 692,940,217 1,140,467,504 Total liabilities, deferred inflows of resources and fund balances $ 183, 338,094 $ 11,540,955 $ 1,810,832 $ 70,500,963 $ 283, 111,965 $758, 117,579 $ 1,309,420,388 The notes to the financial statements are an integral part of this statement. 20 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2022 Differences in amounts reported for governmental activities in the statement of net position on pages 16-17: Fund balances - total governmental funds $ 1,140,467,504 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land and other non -depreciable assets $ 606,346,878 Construction in progress 122,496,593 Depreciable assets, net of $1,268,135,508 in accumulated depreciation 1,108,259,016 Certain revenues will be collected after year-end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred inflows in the funds. Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net position. Balances at September 30, 2022 are: Accrued interest on bonds, loans and notes payable Bonds, loans and notes payable Lease obligations Compensated absences Total OPEB liability Pension liability Unamortized premiums Unamortized discount Unamortized deferred charges on refunding OPEB related deferred outflows Pension related deferred outflows OPEB related deferred inflows Pension related deferred inflows $ (4,697,173) (370,364,000) (7,302,114) (36,017,987) (38,712,737) (293,078,638) (18,480,026) 185,268 1,837,102,487 7,284,070 (768,467,407) 3,953,670 18,023,252 77,807,801 (7,367,577) (20,072,617) Internal service funds are used by the County to charge self-insurance, fleet management, motor pool capital recovery and information technology services to individual funds. The assets, deferred outflows, liabilities and deferred inflows of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position at September 30, 2022 is: 91,212,005 Total net position - governmental activities The notes to the financial statements are an integral part of this statement. $ 2,379,943,188 21 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Fiscal Year Ended September 30, 2022 Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Infrastructure Governmental Governmental Fund Agency Agency Revenue Sales Tax Funds Funds Revenues: Taxes $ 354,674,261 $ 2,683,300 $ 1,007,000 $ $ 120,375,618 $ 159,057,897 $ 637,798,076 Licenses, permits and impact fees 249,987 - - - 86,827,525 87,077,512 Intergovernmental 94,960,562 - - 45,342,185 19,569,797 159,872,544 Charges for services 23,086,015 30,000 67,636 297,273 21,105,420 44,586,344 Fines and forfeitures 316,004 - - - 2,181,586 2,497,590 Interest earnings (8,067,924) (361,902) (84,147) (2,627,533) (9,756,993) (30,957,799) (51,856,298) Special assessments - - 15,227,972 15,227,972 Miscellaneous 920,972 - - 90,051 5,443,453 6,454,476 Total revenues 466,139,877 2,351,398 990,489 43,101,976 110,618,625 278,455,851 901,658,216 Expenditures: Current: General government 85,982,255 - - 693,501 - 31,555,676 118,231,432 Public safety 212,082,343 1,497,854 34,119,672 247,699,869 Physical environment 816,110 803,625 24,127,486 25,747,221 Transportation 384,369 182,240 58,705,778 59,272,387 Economic environment 1,191,548 1,063,823 410,970 36,302,307 1,889,106 40,857,754 Human services 12,459,628 - - 4,980,207 7,768,068 25,207,903 Culture and recreation 21,001,761 - 760,968 34,710,580 56,473,309 Debt service Principal 479,592 36,140 39,538 28,205,714 28,760,984 Interest 53,400 81 59 13,465,696 13,519,236 Fiscal charges - - - - 170,974 170,974 Capital outlay 19,418,854 27,921 - 3,691,649 31,656,065 73,041,513 127,836,002 Total expenditures 353,869,860 1,091,744 447,191 48,951,948 31,656,065 307,760,263 743,777,071 Excess (deficit) of revenues over (under) expenditures 112,270,017 1,259,654 543,298 (5,849,972) 78,962,560 (29,304,412) 157,881,145 Other financing sources (uses): Refunding loans issued - - - - 108,425,000 108,425,000 Loans issued 1,000,000 1,000,000 Discount on refunding loans issued (188,900) (188,900) Payment to refunding escrow (108,043,685) (108,043,685) Leases 273,585 - 591,380 864,965 Sale of capital assets 4,289,172 109 372,432 4,661,713 Insurance proceeds 203,542 - - - 638,467 842,009 Transfers in 22,902,031 210,900 92,800 2,307,139 159,690,030 185,202,900 Transfers out (118,900,363) (53,800) (127,900) (19,600) (81,732,214) (200,833,877) Total other financing sources (uses) (91,232,033) 157,100 (35,100) 2,287,648 80,752,510 (8,069,875) Net change in fund balances 21,037,984 1,416,754 508,198 (3,562,324) 78,962,560 51,448,098 149,811,270 Fund balances at beginning of year 132,761,951 10,037,806 1,287,327 11,336,040 193,740,991 641,492,119 990,656,234 Fund balances at end of year $ 153,799,935 $ 11,454,560 $ 1,795,525 $ 7,773,716 $ 272,703,551 $ 692,940,217 $1,140,467,504 The notes to the financial statements are an integral part of this statement 22 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2022 Differences in amounts reported for governmental activities in the statement of activities on pages 18-19: Net change in fund balances - total governmental funds Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is allocated over their estimate useful lives and reported as depreciation and amortization expense. Capital outlay Depreciation and amortization expense Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net position in the statement of net position. Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. In the statement of net position, the gain or loss on the sale of capital assets is reported. However, in the governmental funds the proceeds from the sale of capital assets increase financial resources. The change in net position differs from the change in fund balances by the net book value of capital assets disposed. Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. Debt proceeds provide current financial resources for governmental funds, but issuing debt increases liabilities in the statement of net position. Repayment of principal on long-term debt is an expenditure in governmental funds, but a reduction of long-term liabilities in the statement of net position. Loan proceeds Bond, loan and note principal payments Payment to refunding escrow Discount on refunding loans issued Lease proceeds Payments on lease obligations Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. $ 149,811,270 $ 127,836,002 (93,037,096) 34,798,906 72,884,427 (269,273) (2,927,819) 679,376 $ (109,425,000) 27,753,000 108,043,685 188,900 (864,965) 1,007,984 26,703,604 Compensated absences $ (1,691,196) OPEB expense (1,439,655) Pension expense (3,555,074) Accrued interest on bonds, loans and notes payable 1,908,070 Amortization of deferred charges on refunding (738,102) Amortization of premiums 1,706,494 Amortization of discount (3,633) (3,813,096) The net revenues of internal service funds are reported with governmental activities. Change in net position - governmental activities The notes to the financial statements are an integral part of this statement. 1,789,738 $ 279,657,133 23 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2022 Original Final Budget Budget Actual Variance Revenues: Taxes $ 368,617,500 $ 368,617,500 $ 354,674,261 $ (13,943,239) Licenses, permits and impact fees 363,400 363,400 249,987 (113,413) Intergovernmental 54,199,000 54,199,000 94,960,562 40,761,562 Charges for services 24,625,760 26,419,433 23,086,015 (3,333,418) Fines and forfeitures 422,100 422,100 316,004 (106,096) Interest earnings 949,300 1,024,300 1,591,994 567,694 Miscellaneous 9,407,700 9,438,235 9,397,772 (40,463) Total revenues 458,584,760 460,483,968 484,276,595 23,792,627 Expenditures: Current: General government Board of County Commissioners personal services 1,270,400 1,301,100 1,294,786 6,314 Board of County Commissioners operating 118,800 118,800 87,566 31,234 County manager administrative personal services 1,378,800 1,378,800 1,251,496 127,304 County manager administrative operating 103,400 103,400 49,593 53,807 Corporate planning and improvement personal services 552,200 577,200 563,133 14,067 Corporate planning and improvement operating 40,500 40,500 20,132 20,368 Budget and management personal services 740,200 782,200 737,613 44,587 Budget and management operating 73,900 86,197 67,245 18,952 Administrative services personal services 3,562,200 3,466,200 3,364,037 102,163 Administrative services operating 463,500 592,797 473,892 118,905 Human resources administration personal services 1,788,600 1,744,000 1,651,624 92,376 Human resources administration operating 697,300 779,054 563,708 215,346 Clerk of the Circuit Court personal services 10,402,400 10,696,900 10,677,617 19,283 Clerk of the Circuit Court operating 3,394,400 3,791,400 3,752,408 38,992 Clerk of the Circuit Court capital outlay 270,800 23,000 77,338 (54,338) Property Appraiser personal services 7,130,437 7,133,755 6,548,185 585,570 Property Appraiser operating 2,226,563 2,223,245 2,139,296 83,949 Property Appraiser capital outlay 35,000 35,000 20,920 14,080 Tax Collector personal services 14,156,457 14,156,456 13,550,521 605,935 Tax Collector operating 3,961,248 3,961,248 4,275,318 (314,070) Tax Collector capital outlay 3,280,100 3,280,100 2,647,705 632,395 County attorney personal services 2,500,200 2,500,200 2,419,983 80,217 County attorney operating 342,200 638,513 175,526 462,987 County attorney capital outlay 10,000 11,389 - 11,389 Circuit court operating 40,300 41,930 11,903 30,027 County court operating 27,000 33,694 11,806 21,888 State Attorney operating 422,300 451,300 437,096 14,204 Public Defender operating 309,400 309,400 309,400 - Other general administrative personal services 200,000 89,600 18,380 71,220 Other general administrative operating 12,980,300 13,077,142 9,807,458 3,269,684 Facilities management personal services 6,884,500 6,904,500 6,692,981 211,519 Facilities management operating 9,462,700 10,168,706 9,919,312 249,394 Facilities management capital outlay 135,000 303,000 218,720 84,280 Sheriff personal services 4,634,500 4,787,500 5,082,544 (295,044) Sheriff operating 192,100 192,100 170,787 21,313 (continued) 24 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2022 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 2,564,800 2,634,800 2,617,041 17,759 Supervisor of Elections operating 1,792,000 1,757,000 1,728,482 28,518 Supervisor of Elections capital outlay 35,000 - 572 (572) Public services operations personal services 1,969,500 1,829,202 1,805,104 24,098 Public services operations operating 102,300 167,172 140,312 26,860 Public services operations operating 2,600 2,600 - 2,600 Real property management personal services 748,800 748,800 743,082 5,718 Real property management operating 104,800 104,300 57,203 47,097 Total general government 101,107,505 103,024,200 96,181,825 6,842,375 Public safety Sheriff personal services 170,091,200 176,398,199 169,350,570 7,047,629 Sheriff operating 39,110,600 39,200,600 38,819,664 380,936 Sheriff capital outlay 5,183,600 5,183,600 8,866,348 (3,682,748) Emergency management administration personal services 1,218,700 1,218,700 1,181,559 37,141 Emergency management administration operating 890,900 910,824 779,807 131,017 Emergency management administration capital outlay - 30,375 25,080 5,295 Helicopter operations operating 45,600 45,600 44,770 830 Medical examiner services operating 1,902,600 1,906,600 1,905,973 627 Total public safety 218,443,200 224,894,498 220,973,771 3,920,727 Physical environment Conservation and resource management personal services 690,600 690,600 684,542 6,058 Conservation and resource management operating 129,300 159,840 109,133 50,707 Immokalee cemetery operating 29,000 60,036 22,435 37,601 Total physical environment 848,900 910,476 816,110 94,366 Transportation Alternative transportation modes personal services 188,700 378,198 364,658 13,540 Alternative transportation modes operating 22,700 22,700 19,711 2,989 Total transportation 211,400 400,898 384,369 16,529 Economic environment Veterans services personal services 315,800 296,800 296,089 711 Veterans services operating 60,100 51,060 47,045 4,015 Economic development personal services 253,900 273,926 203,956 69,970 Economic development operating 1,108,800 2,134,302 644,458 1,489,844 Total economic environment 1,738,600 2,756,088 1,191,548 1,564,540 Human services Health Care Responsibility Act operating 46,200 46,200 - 46,200 Domestic animal services personal services 2,424,400 2,314,400 2,314,022 378 Domestic animal services operating 1,095,100 1,444,565 1,342,867 101,698 Health department operating 1,862,500 1,862,500 1,845,018 17,482 Mental health operating 3,059,500 3,010,500 1,905,377 1,105,123 Client assistance personal services 1,221,500 1,236,000 1,170,378 65,622 Client assistance operating 3,792,000 3,794,402 3,495,009 299,393 (continued) 25 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2022 Public services division office personal services Public services division office operating Total human services Culture and recreation Library administration personal services Library administration operating Parks operations personal services Parks operations operating Parks operations capital outlay Parks maintenance personal service Parks maintenance operating Total culture and recreation Debt service Total expenditures Excess of revenues over expenditures Other financing sources (uses): Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Original Final Budget Budget Actual Variance 345,600 326,400 322,461 3,939 32,500 32,500 20,805 11,695 13, 879,300 14, 067,467 12,415,937 1,651, 530 5,814,300 5,488,300 5,422,209 66,091 2,178,700 2,188,331 2,055,910 132,421 4,397,200 4,574,000 4,531,989 42,011 4,436,200 5,002,881 3,906,802 1,096,079 - 30,974 30,974 - 1,791,800 2,228,800 2,226,990 1,810 2,646,900 3,290,286 3,046,807 243,479 21,265,100 22,803,572 21,221,681 1,581,891 534,600 534,600 532,992 1,608 358,028,605 369,391,799 353,718,233 15,673,566 100,556,155 91,092,169 130,558,362 39,466,193 - - 273,585 273,585 30,000 30,000 3,777,123 3,747,123 - - 33,433 33,433 9,907,245 11,087,845 23,587,831 12,499,986 (119,922,600) (121,491,111) (119,349,363) 2,141,748 (109,985,355) (110,373,266) (91,677,391) 18,695,875 (9,429,200) (19,281,097) 38,880,971 58,162,068 98,771,500 102,203,636 132,761,951 30,558,315 $ 89,342,300 $ 82,922,539 $ 171,642,922 $ 88,720,383 Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Miscellaneous revenue related to indirect cost Change in inventory General government expenditures related to indirect cost Property Appraiser general government refunds to other governments not budgeted Public safety expenditures for multi -period projects not budgeted Public safety capital outlay funded by outside sources not budgeted Insurance proceeds related to Sheriff assets not budgeted Proceeds from sale of Sheriff assets not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. $ 38,880,971 (9,659,918) (8,476,800) 121,277 8,476,800 (1,218,507) (6,849,039) (682,158) 170,109 512,049 449,000 (449,000) (236,800) $ 21,037,984 26 COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2022 Revenues: Taxes Charges for services Interest earnings Total revenues Expenditures: Economic environment Personal services Operating Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Interfund transfers in Interfund transfers out Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 2,683,300 $ 2,683,300 $ 2,683,300 $ - - 30,000 30,000 44,600 44,600 55,176 10,576 2,727,900 2,727,900 2,768,476 40,576 453,800 453,800 407,802 45,998 798,100 3,132,547 656,021 2,476,526 1,485,500 7,198,485 27,921 7,170,564 2,737,400 10,784,832 1,091,744 9,693,088 (9,500) (8,056,932) 1,676,732 9,733,664 2,482,600 3,548,500 1,928,000 (1,620,500) (1,770,900) (2,836,800) (1,770,900) 1,065,900 711,700 711,700 157,100 (554,600) 702,200 (7,345,232) 1,833,832 9,179,064 (600,000) 7,347,432 10,037,806 2,690,374 $ 102,200 $ 2,200 $ 11,871,638 $ 11,869,438 $ 1,833,832 (417,078) (1,717,100) 1,717,100 $ 1,416,754 27 COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2022 Revenues: Taxes Charges for services Interest earnings Total revenues Expenditures: Economic environment Personal services Operating Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Interfund transfers in Interfund transfers out Advances budgeted as transfers Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 1,007,000 $ 1,007,000 $ 1,007,000 $ - 250,000 67,636 (182,364) 12,600 12,600 12,805 205 1,019,600 1,269,600 1,087,441 (182,159) 195,200 214,300 213,180 1,120 372,200 1,001,298 197,790 803,508 36,300 36,300 36,221 79 158,600 1,606,600 - 1,606,600 762,300 2,858,498 447,191 2,411,307 257,300 (1,588,898) 640,250 2,229,148 190,400 554,700 190,400 (364,300) (315,500) (679,800) (314,401) 365,399 (125,100) (125,100) (124,001) 1,099 132,200 (1,713,998) 516,249 2,230,247 (101,300) 1,714,598 1,287,327 (427,271) $ 30,900 $ 600 $ 1,803,576 $ 1,802,976 $ 516,249 (96,952) (97,600) 97,600 88,901 $ 508,198 28 COLLIER COUNTY, FLORIDA GRANTS AND SHARED REVENUE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2022 Revenues: Intergovernmental Charges for services Interest earnings Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Total expenditures Deficit of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Unbudgeted funds Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 3,000 $ 162,762,436 $ 43,492,116 $ (119,270,320) - 4,525,879 297,273 (4,228,606) 34,600 41,481 417,028 375,547 - 390,181 90,051 (300,130) 37,600 167,719,977 44,296,468 (123,423,509) 8,900 2,458,724 693,501 1,765,223 698,200 815,696 117,496 698,200 323,100 3,642,212 803,625 2,838,587 - 582,241 182,240 400,001 - 115,077,020 36,388,026 78,688,994 790,100 12,334,653 4,980,207 7,354,446 100 4,587,440 760,968 3,826,472 23,600 56,106,143 3,564,795 52,541,348 1,844,000 195,604,129 47,490,858 148,113,271 (1,806,400) (27,884,152) (3,194,390) 24,689,762 - 4 109 105 1,134,000 21,517,739 2,307,139 (19,210,600) (114,600) (162,700) (19,600) 143,100 1,019,400 21,355,043 2,287,648 (19,067,395) (787,000) (6,529,109) (906,742) 5,622,367 964,100 8,804,602 11,336,040 2,531,438 $ 777,100 $ 2,275,493 $ 10,429,298 $ 8,153,805 $ (906,742) (3,044,561) 388,979 $ (3,562,3241 29 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2022 Business -type Activities Enterprise Funds overnmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services unds otal Service Funds ASSETS Current assets: Cash and investments $ 204,922,011 $ 38,332,364 $ 21,344,223 $ 9,877,774 $ 274,476,372 $ 84,863,421 Receivables: Trade, net 16,559,357 1,181,866 4,534,963 18,474 22,294,660 1,204,936 Special assessments 7,835 - - - 87,835 - Interest 490,253 170,967 27,332 13,668 702,220 110,358 Leases 4,504 - - 103,440 127,944 - Due from other funds 36 176,790 - 28,497 205,723 - Due from other governments 133,263 1,165,234 1,082,683 1,952 5,383,132 97,584 Deposits 694,097 - - - 1,694,097 - Inventory 7,311,164 1,031,294 185,593 8,528,051 634,723 Prepaid costs 29,121 - - 129,121 2,153,966 Restricted assets: Cash and investments 2,164,001 85,542 208,476 712,309 13,170,328 - Interest receivable 25,057 - 252 - 25,309 Due from other governments - - 4,172,976 4,172,976 - Total current assets 46,541,099 41,112,763 28,229,223 15,114,683 330,997,768 89,064,988 Noncurrent assets: Restricted assets: Cash and investments 03,242,761 - - - 203,242,761 - Receivables: Leases 59,617 - 1,783,953 2,543,570 Capital assets: Land and nondepreciable capital assets 46,755,036 22,747,852 8,622,799 178,125,687 - Depreciable capital assets, net 791,292,388 26,412,380 12,416,820 68,264,276 898,385,864 19,650,710 Total noncurrent assets 142,049,802 49,160,232 12,416,820 78,671,028 1,282,297,882 19,650,710 Total assets 388,590,901 90,272,995 40,646,043 93,785,711 1,613,295,650 108,715,698 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 158,123 - - - 2,158,123 - Deferred outflows of resources related to OPEB 80,409 6,227 42,831 3,000 132,467 17,815 Deferred outflows of resources related to pensions 7,685,132 705,510 9,907,341 328,068 18,626,051 1,602,716 Total deferred outflows of resources $ 9,923,664 $ 711,737 $ 9,950,172 $ 331,068 $ 20,916,641 $ 1,620,531 (Continued) 30 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2022 Business -type Activities Enterprise Funds overnmental Activities - County Emergency Internal Water Solid Waste Medical Other Service and Sewer Disposal Services unds otal Funds LIABILITIES Current liabilities: Accounts payable $ 9,082,105 $ 2,897,721 $ 733,990 $ 953,827 $ 13,667,643 $ 1,767,435 Wages payable 1,934,717 192,168 1,511,454 92,107 3,730,446 421,314 Retainage payable 1,814,897 140,681 - - 1,955,578 - Due to other funds 128 - 34,080 - 42,208 - Due to other governments 7 1,901 760 12,705 15,443 39,277 Unearned revenues 7,163 - - 15,583 62,746 147,410 Self-insurance claims payable - - - - - 9,472,974 Compensated absences 202,841 187,724 767,238 116,030 3,273,833 461,307 Net pension liability 7,894 797 3,783 410 12,884 1,464 Landfill post -closure liability - 39,413 - - 39,413 - Lease payable 68,256 - 29,447 97,703 3,284 Bonds, loans and notes payable 10,233,000 - - 10,233,000 - Liabilities payable from restricted assets: Accounts payable 3,098,180 434,779 3,532,959 Retainage payable 2,428,467 26,868 2,455,335 Due to other governments 117,960 117,960 Refundable deposits 88,166 - 9,926 198,092 Unearned revenue - 85,542 - 85,542 Interest payable 2,968,340 - 2,968,340 Bonds, loans and notes payable 3,480,848 - 3,480,848 - Total current liabilities 7,563,079 3,545,947 3,080,752 1,780,195 45,969,973 12,314,465 Noncurrent liabilities: Self-insurance claims payable - - - - - 2,410,072 Advance from other funds - - 1,600,425 1,600,425 - Compensated absences 50,710 46,931 191,809 29,008 818,458 115,326 Lease payable 156,574 - 353,107 - 509,681 3,615 Total OPEB liability 1,470,029 148,383 686,704 75,917 2,381,033 276,062 Net pension liability 28,859,128 2,688,961 33,728,113 1,271,645 66,547,847 5,919,816 Landfill post closure liability - 1,348,017 - - 1,348,017 - Bonds, loans and notes payable 347,278,593 - - - 347,278,593 - Total noncurrent liabilities 78,315,034 4,232,292 34,959,733 2,976,995 420,484,054 8,724,891 Total liabilities 15,878,113 7,778,239 38,040,485 4,757,190 466,454,027 21,039,356 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 722,440 - - 1,857,627 2,580,067 - Deferred inflows of resources related to OPEB 378,028 36,909 183,208 18,708 616,853 73,349 Deferred inflows of resources related to pensions 508,949 150,508 894,526 76,414 2,630,397 284,855 Total deferred inflows of resources 2,609,417 187,417 1,077,734 1,952,749 5,827,317 358,204 NET POSITION Net investment in capital assets 33,852,593 48,451,347 12,034,266 76,628,093 870,966,299 19,608,443 Restricted for grants and other purposes - 208,728 4,409,145 4,617,873 - Restricted for growth related capital expansion 21,172,753 - - 21,172,753 Restricted for renewal and replacement 300,000 300,000 Restricted for debt service 22,420,366 - - 22,420,366 - Unrestricted 202,281,323 34,567,729 (764,998) 6,369,602 242,453,656 69,330,226 Total net position $ 980,027,035 $ 83,019,076 $ 11,477,996 $ 87,406,840 1,161,930,947 $ 88,938,669 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds 2,273,336) Net position of Business -type Activities $ 1,159,657,611 The notes to the financial statements are an integral part of this statement. 31 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2022 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating revenues: Charges for services $ 176,896,115 $ 59,859,405 $ 18,445,230 $ 10,672,446 $ 265,873,196 $ 121,866,892 Miscellaneous 363,737 480,775 55,433 170,242 1,070,187 1,107,210 Total operating revenues 177,259,852 60,340,180 18,500,663 10,842,688 266,943,383 122,974,102 Operating expenses: Personal services 40,611,552 3,866,180 32,617,400 1,921,479 79,016,611 8,156,111 General and administrative 72,780,092 45,512,724 6,248,383 18,995,670 143,536,869 29,200,835 Insurance claims paid - - - - - 76,163,532 Depreciation and amortization 50,869,321 1,691,364 2,632,783 4,541,796 59,735,264 3,743,467 Total operating expenses 164,260,965 51,070,268 41,498,566 25,458,945 282,288,744 117,263,945 Operating income (loss) 12,998,887 9,269,912 (22,997,903) (14,616,257) (15,345,361) 5,710,157 Non -operating revenues (expenses): Operating grants and contributions - 106,431 1,701,537 6,354,112 8,162,080 - Interest earnings (19,468,888) (1,993,400) (1,009,393) (433,010) (22,904,691) (4,086,282) Insurance reimbursement 152,956 4,797 3,105 160,858 616,023 Interest expense (10,407,203) (7,561) (12,632) (10,427,396) (129) Loss on disposal of capital assets (1,528,944) (3,966) (59,360) (998,558) (2,590,828) (270,501) Total non -operating revenues (expenses) (31,252,079) (1,890,935) 630,020 4,913,017 (27,599,977) (3,740,889) Income (loss) before contributions and transfers (18,253,192) 7,378,977 (22,367,883) (9,703,240) (42,945,338) 1,969,268 Capital grants and contributions 38,490,241 - - 9,971,198 48,461,439 7,519 Transfers in 21,436 496,500 21,369,500 5,951,764 27,839,200 741,200 Transfers out (11,714,207) (601,316) (7,800) (135,900) (12,459,223) (490,200) Total transfers and contributions 26,797,470 (104,816) 21,361,700 15,787,062 63,841,416 258,519 Change in net position 8,544,278 7,274,161 (1,006,183) 6,083,822 20,896,078 2,227,787 Net position - beginning 971,482,757 75,744,915 12,484,179 81,323,018 86,710,882 Net position - ending $ 980,027, 335 $ 83,019,076 $ 11,477,996 $ 87,406,840 $ 88,938,669 Consolidation adjustment for internal service fund activities related to enterprise funds 438,049 Change in net position of Business -type Activities $ 21,334,127 The notes to the financial statements are an integral part of this statement. 32 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2022 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Cash flows from operating activities: Cash received for services $ 175,005,624 $ 60,154,050 $ 16,981,816 $ 10,919,046 $ 263,060,536 $ - Cash received from other funds for services - - - - - 114,233,313 Cash received from other governments for services 413,289 Cash received from employees for services - - - 7,484,925 Cash received from refundable deposits 158,600 516,389 674,989 - Cash received from retirees for services - - - 2,212,078 Cash payments on behalf of retirees (1,489,636) Cash payments for goods and services (60,972,852) (43,575,673) (1,815,491) (15,486,590) (121,850,606) (27,235,560) Cash payments for self insurance claims (73,850,143) Cash payments to employees (39,567,862) (3,773,731) (29,042,269) (1,775,307) (74,159,169) (8,400,557) Cash payments for interfund services (14,122,704) (2,138,192) (4,298,639) (4,155,038) (24,714,573) (1,728,706) Cash payments from refundable deposits (103,200) (529,018) (632,218) - Net cash provided by (used for) operating activities 60,397,606 10,653,825 (18,174,583) (10,497,889) 42,378,959 11,639,003 Cash flows from non -capital financing activities: Cash received from operating grants 229,942 106,431 644,860 6,411,385 7,392,618 - Cash transfers from other funds 21,425 9,324,000 21,369,500 5,291,325 36,006,250 741,200 Cash transfers to other funds (11,765,387) (9,428,816) (7,800) - (21,202,003) (490,200) Net cash provided by (used for) non -capital financing activities (11,514,020) 1,615 22,006,560 11,702,710 22,196,865 251,000 Cash flows from capital and related financing activities: System development charges 19,814,421 - - - 19,814,421 - Special assessment collections 55,374 - - 55,374 - Receipts from insurance reimbursements 126,332 - 4,797 3,105 134,234 604,434 Proceeds from disposal of capital assets 156,556 411 48,379 3,243 208,589 116,786 Proceeds from capital grants - - - 12,521,668 12,521,668 - Proceeds from leasing activities 20,156 204,937 225,093 Payments for capital acquisitions (45,783,918) (4,540,879) (1,892,319) (11,455,468) (63,672,584) (3,428,176) Payments for construction escrow (1,684,089) (1,684,089) Principal payments on loans and notes (16,907,000) (16,907,000) Principal payments on leases and financed purchase obligations (66,560) (28,889) (95,449) (3,233) Interest and fiscal agent fees paid (11,871,728) (7,561) - (11,879,289) (129) Net cash provided by (used for) capital and related financing activities (56,140,456) (4,540,468) (1,875,593) 1,277,485 (61,279,032) (2,710,318) Cash flows from investing activities: Interest on investments (19,566,685) (2,005,807) (1,011,242) (437,600) (23,021,334) (4,086,801) Net cash used for investing activities (19,566,685) (2,005,807) (1,011,242) (437,600) (23,021,334) (4,086,801) Net increase (decrease) in cash and investments (26,823,555) 4,109,165 945,142 2,044,706 (19,724,542) 5,092,884 Cash and investments, October 1, 2021 447,152,328 34,308,741 20,607,557 8,545,377 510,614,003 79,770,537 Cash and investments, September 30, 2022 $ 420,328,773 $ 38, 117,906 $ 21, 552,699 $ 10, 990,083 $ 490, 889,461 $ 84, 663,421 Current cash and investments $ 204,922,011 $ 38,332,364 $ 21,344,223 $ 9,877,774 $ 274,476,372 $ 84,863,421 Current cash and investments -restricted 12,164,001 85,542 208,476 712,309 13,170,328 - Noncurrent cash and investments -restricted 203,242,761 - - - 203,242,761 - Cash and investments, September 30, 2022 $ 420,328,773 $ 38,417,906 $ 21,552,699 $ 10,590,083 $ 490,889,461 $ 84,863,421 (Continued) 33 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2022 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating income (loss) $ 12,998,887 $ 9,269,912 $ (22,997,903) $ (14,616,257) $ (15,345,361) $ 5,710,157 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Inventory Prepaid costs Accounts payable Retainage payable Wages payable Due to other funds Due to other governments Compensated absences Refundable deposits Unearned revenue Self-insurance claims payable Total OPEB liability Deferred outflows of resources related to OPEB Deferred inflows of resources related to OPEB Net pension liability Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions Deferred inflows of resources related to leases Landfill post closure liability Total adjustments Net cash provided by (used for) operating activities Non -cash investing, capital and financing activities: Change in fair value of investments Developer infrastructure contributions Contributed capital assets Change in capital related grant receivable Change in special assessment receivable Capital related accounts payable Capital related retainage 50,869,321 1,691,364 2,632,783 4,541,796 59,735,264 3,743,467 (2,307,490) (135,543) (2,238,747) 81,284 (4,600,496) (455,856) - 56,183 - - 56,183 1,216,483 62,309 131,193 716,686 910,188 (79,014) (1,013,898) - 63,846 (99,902) (1,049,954) (169,438) (51,442) - (51,442) 862,071 (868,201) (201,141) 75,075 (331,643) (1,325,910) 138,881 (323,146) - - - (323,146) - 316,038 39,154 397,691 21,851 774,734 53,052 (141) - 30,914 - 30,773 (60,000) (31,601) 1,479 (1,454) 1,308 (30,268) 14,193 320,675 8,475 550,803 31,656 911,609 (23,254) 55,400 - - - 55,400 - - (12,629) (6,234) (18,863) 23,868 938,637 (250,656) (18,520) (183,573) (7,534) (460,283) (57,743) 49,266 4,973 23,014 2,545 79,798 9,253 227,582 22,972 106,312 11,753 368,619 42,738 15,557,587 1,405,878 24,327,160 702,739 41,993,364 3,186,694 (1,520,250) (131,727) (3,052,571) (72,219) (4,776,767) (221,910) (13,656,552) (1,238,756) (18,624,619) (544,619) (34,064,546) (3,233,276) (36,082) (214,413) (250,495) - (239,442) - - (239,442) - 47,398,719 1,383,913 4,823,320 4,118,368 57,724,320 5,928,846 $ 60,397,606 $ 10,653,825 $ (18,174,583) $ (10,497,889) $ 42,378,959 $ 11,639,003 $ (22,447,633) $ (2,292,829) $ (1,164,158) $ (533,933) $ (26,438,553) $ (3,702,265) 18,426,432 - 18,426,432 - 242,576 21,972 264,548 7,519 - (2,472,442) (2,472,442) - (48,562) - (48,562) - 6,230,918 568,204 229,263 7,028,385 35,368 3,997,302 140,681 26,868 4,164,851 - The notes to the financial statements are an integral part of this statement. 34 COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS September 30, 2022 Sheriff Private Purpose ustodial Trust Fund Funds ASSETS Cash and investments $ 311,196 $ 26,264,420 Trade receivable, net - 16,426 Total assets $ 311,196 $ 26,280,846 LIABILITIES Due to other governments Due to individuals Total liabilities 7,368,640 219,411 $ 7,588,051 FIDUCIARY NET POSITION Restricted for individuals and governments $ 311,196 $ 18,692,795 The notes to the financial statements are an integral part of this statement. 35 COLLIER COUNTY, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCUARY FUNDS For the Fiscal Year Ended September 30, 2022 Sheriff Private Purpose Custodial Trust Fund Funds ADDITIONS: Contributions for individuals $ 519,409 $ 29,427,234 Fees collected for other governments - 324,316,499 Miscellaneous 78,664 Total additions DEDUCTIONS: Beneficiary payments to individuals Payment of fees to other governments Payments to other entities Total deductions Net increase (decrease) in fiduciary net position Fiduciary net position - beginning of year Fiduciary net position - end of year 519,409 353,822,397 478,439 36,994,745 - 324,220,476 243,640 478,439 361,458,861 40,970 (7,636,464) 270,226 26,329,259 $ 311,196 $ 18,692,795 The notes to the financial statements are an integral part of this statement. 36 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Collier County, Florida (County) have been prepared in accordance with accounting principles generally accepted in the United States of America for governmental entities (GAAP). The more significant of the County's accounting policies are described below. THE REPORTING ENTITY Entity status for financial reporting purposes is governed by Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended. The GASB is the standard setting body for the establishment of GAAP in governmental entities. Determination of the financial reporting entity of the County is founded upon the objective of accountability. These financial statements include the County government (the primary government) and two types of legally separate component units (blended and discrete). Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board and impose its will on the organization or there is a potential specific financial benefit/burden relationship. Financial accountability also exists if an organization is fiscally dependent and there is a potential specific financial benefit/burden relationship. The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court and Comptroller, the Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court and Comptroller. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes, the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex-officio. These entities are legally separate, however the County has the financial and operational responsibility for these component units. In accordance with GASB Statement No. 14, as amended, these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District (Districtl - The District was established by Chapter 88-499, Laws of Florida, as amended by Chapter 03-353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Collier County Community Redevelopment Agency (CRA)_ The CRA was established by Resolution 2000-82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas. These two redevelopment areas are geographically separate and distinct. Collier County Airport Authority - The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010-10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization (MPO) - The MPO was created in 1981 by Collier County Resolution 81-222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenues fund. The County's discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units' Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB Statement No. 14, as amended, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. Collier County Housing Finance Authority - The Authority was formed in 1980 by Collier County Ordinance 80-66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Health Facilities Authority -The Authority was established in 1979 by Collier County Ordinance 79-95 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". 37 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Collier County Industrial Development Authority - The Authority was created in 1978 by Collier County Resolution 78-94, rescinded and replaced by Resolution 79-34, to facilitate the financing of projects that promote economic growth and increase opportunities for employment in the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Educational Facilities Authority - The Authority was created in 1999 by Collier County Resolution 99-17 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller. Administrative Offices Collier Water and Sewer District Collier County Airport Authority 3339 East Tamiami Trail, Suite #302 2005 Mainsail Drive, Suite #1 Naples, Florida 34112 Naples, Florida 34114 Collier County Metropolitan Planning Organization Immokalee Community Redevelopment Agency 2885 South Horseshoe Drive 750 South 5th Street Naples, Florida 34104 Immokalee, Florida 34142 Bayshore Gateway Community Redevelopment Agency Collier County Health Facilities Authority 3299 Tamiami Trail East, Bldg. F Suite #103 Collier County Housing Finance Authority Naples, Florida 34112 Collier County Industrial Development Authority Collier County Educational Facilities Authority 725 High Pines Drive Naples, Florida 34103 GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government -wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business -type activities of Collier County. The government -wide financial statements consist of a Statement of Net Position and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business -type activities. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements with the exception of interfund services provided and used. The internal service activity has also been eliminated from the government -wide financial statements. Aggregate internal service fund activity is reported in full as a single column in the proprietary fund financial statements. Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Position reports all financial and capital resources of Collier County's governmental and business -type activities. Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources, and is shown in three categories: net investment in capital assets; restricted net position and unrestricted net position. The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree the particular program has been self-supporting. Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly identifiable to a particular function. The effect of indirect expense allocations has been eliminated in the government -wide financial statements. Depreciation expense for capital assets that can specifically be identified with a function is recorded as a direct expense of that function. Depreciation for capital assets that serve all functions is recorded as a direct expense of the general government function on the government -wide Statement of Activities. All interest on general long term debt is considered indirect and is reported separately in the government -wide Statement of Activities. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. The fund financial statements follow the government -wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are reconciliations explaining the differences between the governmental fund presentation and the government -wide presentation. 38 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund — the General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County's consolidated General Fund. Bayshore/Gateway Community Redevelopment Area Special Revenue Fund — the Bayshore/Gateway Community Redevelopment fund is used to account for the receipt and expenditure of tax increment revenues generated by the Bayshore/ Gateway Community Redevelopment Areas. Immokalee Community Redevelopment Area Special Revenue Fund — the Immokalee Community Redevelopment fund is used to account for the receipt and expenditure of tax increment revenues generated by the Immokalee Community Redevelopment Area. Grants and Shared Revenue Special Revenue Fund — the Grants and Shared Revenue fund is used to account for the receipt and expenditure of federal, state and local grants. Infrastructure Sales Tax Capital Project Fund — the Infrastructure Sales Tax fund is used to account for the receipt and expenditure of an additional one -cent sales surtax approved by the voters. The following are reported as major enterprise funds: County Water and Sewer Fund — the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County's unincorporated area. Solid Waste Disposal Fund — the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Emergency Medical Services Fund — the Emergency Medical Services fund is used to account for the provision of emergency ambulance and paramedical services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Funds — Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Permanent Fund — Permanent funds are used to account for resources that were legally restricted to the extent that only earnings and not principal may be spent. Collier County operates a permanent fund to defray costs associated with the maintenance and management of conservation land. Debt Service Funds — Debt service funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for principal and interest related to long-term obligations. Capital Project Funds — Capital project funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. Enterprise Funds — Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds — Internal service funds are used to account for the provision of goods and services by one department to other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently reports the following Internal Service Funds: Self -Insurance, Sheriff's Self -Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology. Fiduciary Funds - Private Purpose Trust Funds — Fiduciary funds - private purpose trust funds are used to account for assets held by Collier County in which the principal and income benefit individuals, private organizations or other governments. Private purpose trust funds are accounted for using the accrual basis of accounting. The Sheriff maintains this fund for the employee flexible spending account. Fiduciary Funds - Custodial Funds — Fiduciary funds - custodial funds are used to account for assets held by Collier County as an agent for individuals, private organizations and other governments. Custodial funds are custodial in nature. Custodial funds are accounted for using the accrual basis of accounting. The Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain custodial funds. 39 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. The government -wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are recognized in the period incurred. Grant and similar revenues are recognized when eligibility requirements are met. Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. Generally, revenues are considered available when they are collected within the current period or within 60 days after the end of the fiscal year. Grant revenues are an exception and are considered available when eligibility requirements are met. Primary revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues. Property taxes are discussed later in Note 1. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include accrued compensated absences, pension, other postemployment benefits and principal and interest on long-term debt. When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses, and then unrestricted as needed. When using the unrestricted resources, committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1. Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2. Within eighty days of the certification of value, but not earlierthan sixty-five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled -back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3. Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4. A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5. The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 40 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 6. The County Manager approves intradepartmental budget changes within the same fund of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as a matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7. Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board departments except for the custodial funds. The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts operates as a fee officer, and as such, prepares its non -court budget in accordance with Section 218.35, Florida Statutes. The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the Board. The Clerk of Court's budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission. Budgets are adopted for all governmental departments except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non -budgeted revenues and expenditures and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. For further information regarding encumbrances, refer to Note 17 on page 80. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. CASH AND INVESTMENTS Florida Statutes Section 218.415 establishes guidelines for Florida local government investment policies. The County's current investment policy, as amended, was adopted December 9, 2014 by Resolution 2014-260 and is consistent with the requirements of that statute. This investment policy authorized the following investments: 1. U.S. Treasury and Government Guaranteed — U.S. Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S. Government; 2. Federal Agency/Government Sponsored Enterprise — Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise; 3. Corporates — U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic corporation, financial institution, non-profit or other entity; 4. Municipals — Obligations, including both taxable and tax-exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory; 5. Agency Mortgage Backed Securities — Mortgage backed securities, backed by residential, multi -family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass-throughs, collateralized mortgage obligations and real estate mortgage investment conduits; 6. Non -Negotiable Certificates of Deposit - Non-negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 7. Depository Bank Account — Negotiated Order of Withdrawal accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 8. Commercial Paper — U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation, company, financial institution, trust or other entity, including both unsecured debt and asset backed programs; 41 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 9. Repurchase Agreements — Repurchase agreements must be governed by written agreement, counterparty must be a Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank. Acceptable underlying securities must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or U.S. Agency backed mortgage related securities with an aggregate current fair value of at least 102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential; 10. Money Market Funds — Shares in open end and no load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange Commission Rule 2a-7; 11. Fixed -Income Mutual Funds — Shares in open end and no load fixed income mutual funds whose underlying investments would be permitted for purchase under the investment policy and all its restriction; 12. Local Government Investment Pools — State, local government or privately sponsored investment pools that are authorized pursuant to state law; 13. The Florida Local Government Surplus Funds Trust Funds (Florida Prime). The County maintains a cash and investment pool that is available for use by all funds. Investment income is allocated to individual funds based upon their average daily balance in the cash and investment pool. Each fund's individual equity in the County's cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time without notice or penalty. The statement of cash flows for the proprietary funds also uses this methodology. Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service. Investments in the Local Government Investment Pools (FL PALM and FLCLASS) and the Local Government Surplus Funds Trust Fund (Florida PRIME) are stated at fair value. The County categorizes its fair value measurements within the fair value hierarchy established in GASB Statement No. 72, Fair Value Measurements and Application. Florida Public Assets for Liquidity Management's FL PALM Portfolio Board of Trustees has determined that it will manage the FL PALM Portfolio in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants requirements, as applicable, for continued use of amortized cost. Therefore, the fair value of the County's position in the pool is the same as the value of the pool shares. Throughout the year, and as of September 30, 2022, FL PALM Portfolio contained certain floating and adjustable rate securities. These investments represented 34.0% of the FL PALM Portfolio's investments as of September 30, 2022. In addition, and in accordance with GASB 79, the County should disclose the presence of any limitations or restrictions on withdrawals in notes to the financial statements. The FL PALM portfolio Board of Trustees (Trustees) can suspend the right of withdrawal or postpone the date of payment if the Trustees determine that there is an emergency that makes the sale of a Portfolio's securities or determination of its net asset value not reasonably practical. Florida Cooperative Liquid Assets Securities System (FLCLASS) does not meet all of the specific criteria outlined in GASB 79 for measurement at amortized cost. FLCLASS measures its investments at fair value in accordance with paragraph 41 of GASB 79 and paragraph 11 of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as amended, and therefore a participant's investment in FLCLASS is not required to be categorized within the fair value hierarchy for purposes of paragraph 81 a(2) of GASB 72. Throughout the year, and as of September 30, 2022, FLCLASS Daily Liquidity Pool and FLCLASS Enhanced Cash Pool contained certain floating and adjustable rate securities. These investments represented 55% and 39.6%, respectively, of the FLCLASS Daily Liquidity Pool and Enhanced Cash Pool as of September 30, 2022. Florida PRIME, administered by the State Board of Administration (SBA) is considered a qualifying external investment pool that meets all of the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the County's position in the pool is the same as the value of the pool shares. The Florida PRIME investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2022, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 31.74% of Florida PRIME's portfolio at September 30, 2022. In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, as a participant in a qualifying external investment pool, the County should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool's authority to impose liquidity fees or redemption gates) in notes to the financial statements. With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director 42 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days" With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. As of September 30, 2022, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally all receivables outstanding in excess of one year, except for Emergency Medical Services receivable, which uses an estimated uncollectible percentage. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first -in, first -out method. Inventory in the governmental funds consists of supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non -spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government -wide and proprietary fund financial statements are reported as an expense when consumed. Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell. The value of these properties includes the original purchase price plus the cost of any rehabilitation. Inventory held for resale of $3,888,793 is classified as restricted, which indicates that they do not constitute available resources. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the governmental or business -type activities columns in the government -wide financial statements. Capital assets are reported at cost where historical records are available and at estimated fair value in the absence of historical cost records. Capital contributions are recorded at acquisition value on the date donated. The County capitalizes expenditures with a cost of $5,000 or more and with a useful life in excess of one year. Betterments and major improvements which significantly increase value, change capacity or extend useful lives are also capitalized. Expenditures for maintenance and repairs are charged to operating expenses. The cost of capital assets retired or sold, together with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is credited or charged to earnings in the government -wide financial statements and proprietary fund financial statements. Depreciation is calculated using the straight-line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Estimated Useful Life Buildings 20-45 years Infrastructure 3-30 years Improvements other than buildings 4-45 years Machinery and equipment 3-20 years FINANCED PURCHASE OBLIGATIONS In the government -wide financial statements and proprietary fund financial statements, financed purchase obligations and the related cost of assets acquired are reflected in the Statement of Net Position. For financed purchase obligations originating in governmental funds, an expenditure for the asset and an offsetting other financial source are reflected in the fund financial statements in the year of inception. LEASES The County is a lessee for noncancellable leases of land, building, office space and equipment. The County recognizes a lease liability and an intangible right -to -use lease asset (lease asset) in the government -wide and proprietary fund financial statements. 43 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) At the commencement of a lease, the County initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the term of the lease or the useful life of the underlying asset if shorter than the term of the lease. Key estimates and judgments related to leases include how the County determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The County uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are comprised of fixed payments and any purchase option price that the County is reasonably certain to exercise. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options are only included in the lease term if the lease is reasonably certain to be extended. The County monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Leased assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position. Payments due under the lease contracts include fixed payments plus, for many of the County's leases, variable payments. For office space leases that include variable payments, those payments include the County's proportionate share of property taxes, insurance, and common area maintenance. For office equipment leases for which the County has elected not to separate lease and non -lease components, maintenance services are provided by the lessor at a fixed cost and are included in the fixed lease payments. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including in -substance fixed payments), less any lease incentives receivable. • Amounts expected to be payable by the County under residual value guarantees. • The exercise price of a purchase option if it is reasonably certain the option will be executed. • Payments of penalties for terminating the lease, if the lease term reflects the County exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. Extension and termination options are included in a number of property and equipment leases across the County. These are used to maximize operational flexibility in terms of managing the assets used in the County's operations. The majority of extension and termination options held are exercisable only by the County and not by the respective lessor. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, the lessee's incremental borrowing rate is used. The incremental borrowing rate is the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right -of -use asset in a similar economic environment with similar terms, security and conditions. Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are initially measured using the index or rate as of the commencement of the lease term. The County is a lessor for noncancellable leases of land, building, office space and equipment. The County recognizes a lease receivable and a deferred inflow of resources in the government -wide, proprietary fund and governmental fund financial statements. At the commencement of a lease, the County initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the term of the lease. Key estimates and judgments include how the County determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The County uses its estimated incremental borrowing rate as the discount rate for leases 44 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is comprised of fixed payments from the lessee. The County monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred outflows of resources reported in the County's statement of net assets represent changes in actuarial assumptions, the net difference between projected and actual earnings on investments, changes in the proportion and differences between the County's contributions and proportionate share of contributions and the County's contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. In addition, deferred outflows related to the difference between expected and actual economic experience relating to the Florida Retirement System Pension and the Other Post Employment Benefits Plan were reported. These amounts will be recognized as increases in pension expense and OPEB expense in future years. The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of resources reported in the County's statement of net position represent the difference between expected and actual economic experience, changes in actuarial assumptions, net difference between projected and actual earnings on investments, and changes in the proportion and differences between the County's contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan, the Retiree Health Insurance Subsidy Program and the Other Post Employment Benefits Plan. These amounts will be recognized as reductions in pension expense and OPEB expense in future years. The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee agreements and leases, as deferred inflows. BOND PREMIUMS, DISCOUNTS, LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums, discounts and bond insurance costs for the governmental activities and the business -type activities are deferred and amortized over the term of the bonds using the straight-line method which approximates the effective interest method. Bond premiums and discounts are presented as an increase, or decrease, respectively, to the face amount of bonds payable, while bond insurance costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets. Pursuant to GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. The gain or loss is amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. In the governmental fund financials, bond premiums and discounts and issuance costs, including bond insurance costs, are recognized in the current period. The face amount of debt is reported as other financing sources. Premiums and discounts on debt issuances are also reported as other financing sources, or uses. Issuance costs, including bond insurance costs, whether or not they have been paid from debt proceeds are reported as debt service expenditures. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2022 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1 st delinquent date as follows: November - 4%, December - 3%, January - 2%, and February -1 Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1 st of each year. No accrual for the property tax levy becoming due in November 2022 is included in the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. 45 Key dates in the property tax cycle for the fiscal year ended September 30, 2022 are as follows: Property Tax Cycle Assessment roll compiled Assessment roll certified Millage resolution approved Beginning of fiscal year for tax levy Taxes due and payable (levy date) Collection dates Due date Delinquent (lien date) Tax certificates sold ACCOUNTING ESTIMATES Date January 1, 2021 July 1, 2021 Within 35 days of the certification of the assessment roll October 1, 2021 November 1, 2021 By November 30: 4% discount By December 31: 3% discount By January 31: 2% discount By February 28: 1 % discount March 31, 2022 April 1, 2022 Prior to June 1, 2022 The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED REVENUE In instances where assets have been received by the County for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Unearned revenues of the County as of September 30, 2022 are gift certificates issued and prepayments on accounts. ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. It is the Board of County Commissioners' policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all employees. The Sheriff's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 2,000 hours, and up to 500 hours of unused vacation time. The Clerk of the Circuit Court and Comptroller allows for a percentage of unused sick leave payout based upon years of service for employees hired before December 21, 2010, and up to 240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation. On October 1, 2021, the Tax Collector's office transitioned from having two paid time off (PTO) policies (sick and vacation) to a single PTO policy. All full-time employees of the Tax Collector are allowed to accumulate between 136 and 240 hours of PTO annually, depending on tenure. Any accrued hours from the discontinued sick policy were valued at the employees' September 30, 2021, rate of pay with multiple options for payout. First, employees with 800 or more accumulated sick hours could choose to exchange their first 800 hours for free health insurance until covered by Medicare. Secondly, all remaining employees could choose between 1) immediate 100% payout into their Section 457(b) upon satisfying budget and Internal Revenue Service contributions limitations or 2) up to 75% payout upon separation of service. Any accrued hours from the discontinued vacation policy were rolled into the new PTO policy. Upon separation of service, employees receive 1) 100% of accumulated PTO hours at their current rate of pay and 2) a percentage of unused sick leave hours (ranging from 0%to 75%, depending on years of service), valued at the employees' September 30, 2021, rate of pay. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government -wide financial statements and the proprietary fund financials. A liability is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are considered due and payable as of year end. PENSIONS In the government -wide and proprietary funds statements of net position, liabilities are recognized for the County's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows 46 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS's and HIS's fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. OTHER POST EMPLOYMENT BENEFITS (OPEB) In the government -wide and proprietary funds statements of net position, liabilities are recognized for the County's total OPEB liability as determined by an actuarial review of the healthcare coverage purchased by retirees to continue participation in the County's self -insured health plan. The County is responsible for covering the excess of retiree claims over premium payments made by retirees to the County, which creates an other post employment benefit. OPEB expense is recognized immediately for changes in the OPEB liability resulting from current year service cost, interest on the total OPEB liability and changes of benefit terms or actuarial assumptions. NOTE 2 — CASH AND INVESTMENTS As of September 30, 2022, the County had the following cash, cash equivalents and investments Investment Final Maturities Fair Value First Call Date Call Frequency Rating Cash on hand N/A $ 332,888 N/A N/A N/A Demand deposits N/A 136,164,039 N/A N/A N/A Money market / CD N/A 21,350 N/A N/A N/A State Board of Administration Pool: Florida PRIME N/A 200,529,078 N/A N/A AAAnn Intergovernmental Pools: FLCLASS Daily Liquidity N/A 20,549,600 N/A N/A AAAm FLCLASS Enhanced Cash N/A 120,203,600 AAAf FL PALM N/A 145,986,102 N/A N/A AAAm US Treasury Bill 11/03/22 9,977,110 none N/A AA+ US Treasury Bill 12/22/22 24,823,700 none N/A AA+ Federal Farm Credit Bank 01/18/23 9,706,518 06/08/22 continuously AA+ Federal Farm Credit Bank 03/03/23 9,524,760 none N/A AA+ US Treasury Bill 03/23/23 14,739,105 none N/A AA+ US Treasury Bill 03/23/23 19,652,140 none N/A AA+ Federal Farm Credit Bank 04/27/23 9,803,420 07/27/22 continuously AA+ Federal Home Loan Mortgage Corp. 06/01/23 26,456,325 12/01/21 quarterly AA+ Federal Farm Credit Bank 06/08/23 24,361,850 none N/A AA+ US Treasury Bill 06/15/23 486,680 none N/A AA+ Bank of America Corp Note STEP 06/21 /23 24,229,475 12/21/21 quarterly AA+ US Treasury Note 10/31/23 14,383,590 none N/A AA+ US Treasury Note 10/31/23 23,972,650 none N/A AA+ Federal Home Loan Mortgage Corp. 11 /02/23 23,905,750 11 /02/21 annual AA+ Federal Home Loan Mortgage Corp. 11/13/23 23,899,175 05/13/22 semi-annual AA+ Federal Farm Credit Bank 11/16/23 14,328,240 05/16/22 continuously AA+ Federal Home Loan Mortgage Corp. 11/24/23 23,845,375 11/24/21 quarterly AA+ Federal Farm Credit Bank 11/30/23 524,106 none N/A AA+ US Treasury Note 11/30/23 23,928,700 none N/A AA+ US Treasury Note 11/30/23 23,928,700 none N/A AA+ US Treasury Note 11/30/23 23,928,700 none N/A AA+ CitiGroup Global Markets Note 01/29/24 23,308,750 01/29/22 quarterly AA+ Federal Home Loan Bank 01/29/24 16,030,530 07/29/21 quarterly AA+ Federal Home Loan Bank 01/29/24 21,304,905 07/29/21 quarterly AA+ Bank of America Corp Note STEP 02/16/24 26,334,896 02/16/22 quarterly AA+ Federal Home Loan Bank 03/12/24 23,548,275 04/12/21 monthly AA+ US Treasury Note 03/15/24 23,580,075 none N/A AA+ Federal Farm Credit Bank 03/28/24 469,725 none N/A AA+ Farmer Mac 04/01/24 9,441,590 none N/A AA+ US Treasury Note 04/15/24 23,545,900 none N/A AA+ Federal Home Loan Bank 05/24/24 23,337,000 02/24/21 continuously AA+ US Treasury Note 07/15/24 23,348,625 none N/A AA+ (Continued) 47 NOTE 2 - CASH AND INVESTMENTS (Continued) Investment Final Maturities Fair Value First Call Date Call Frequency Rating US Treasury Note 08/15/24 46,529,300 none N/A AA+ Federal Home Loan Bank 08/28/24 319,348 none N/A AA+ Federal Farm Credit Bank 10/15/24 460,230 none N/A AA+ Federal Home Loan Bank 11/15/24 92,660,200 02/15/22 quarterly AA+ Federal Home Loan Bank 11/26/24 22,956,575 11/26/21 quarterly AA+ Federal Home Loan Bank 12/09/24 229,607 none N/A AA+ Federal National Mortgage Assoc. 12/16/24 22,906,450 06/16/21 quarterly AA+ Federal Home Loan Bank 12/30/24 22,900,475 09/30/21 quarterly AA+ Federal Farm Credit Bank 01/13/25 359,134 none N/A AA+ Federal Home Loan Bank 01/15/25 454,300 none N/A AA+ Federal Farm Credit Bank 02/10/25 455,160 none N/A AA+ Federal Home Loan Bank 02/26/25 22,803,900 11/26/21 quarterly AA+ Federal Home Loan Bank 03/28/25 453,760 none N/A AA+ US Treasury Note 03/31/25 480,955 none N/A AA+ US Treasury Note 04/15/25 480,295 none N/A AA+ Federal Farm Credit Bank 05/06/25 22,689,575 05/06/22 continuously AA+ US Treasury Note 05/31/25 449,845 none N/A AA+ Federal Home Loan Bank 08/27/25 22,493,250 09/27/21 monthly AA+ Federal Farm Credit Bank 09/16/25 446,740 none N/A AA+ Federal Home Loan Bank STEP 09/30/25 21,607,440 12/30/21 quarterly AA+ Federal Home Loan Mortgage Corp. 10/20/25 222,363 none N/A AA+ Federal Home Loan Mortgage Corp. 11/25/25 442,890 none N/A AA+ Federal Home Loan Mortgage Corp. 12/01/25 22,160,525 12/01/21 quarterly AA+ Federal National Mortgage Assoc. 12/10/25 22,164,000 06/10/21 quarterly AA+ Federal Home Loan Mortgage Corp. 12/17/25 22,130,750 12/17/21 quarterly AA+ Federal Home Loan Mortgage Corp. 01/07/26 312,304 none N/A AA+ Federal Home Loan Bank 01/29/26 219,250 none N/A AA+ Federal Home Loan Bank STEP 01/29/26 220,652 none N/A AA+ Federal Farm Credit Bank 02/04/26 219,325 none N/A AA+ Federal Home Loan Bank STEP 02/18/26 441,025 none N/A AA+ Federal Home Loan Bank 02/26/26 439,315 none N/A AA+ Federal Home Loan Bank STEP 03/17/26 22,338,100 06/17/21 quarterly AA+ Federal Home Loan Bank STEP 03/26/26 447,375 none N/A AA+ Federal Home Loan Bank STEP 04/28/26 22,244,875 07/28/21 quarterly AA+ Federal Farm Credit Bank 05/03/26 87,264 none N/A AA+ Federal Home Loan Bank STEP 06/16/26 22,101,850 09/16/21 quarterly AA+ Federal Home Loan Mortgage Corp. 06/23/26 438,300 none N/A AA+ Federal Home Loan Bank STEP 06/24/26 22,086,075 09/24/21 quarterly AA+ Federal Home Loan Bank STEP 06/30/26 22,186,950 09/30/21 quarterly AA+ Federal Home Loan Mortgage Corp. 07/30/26 109,121 none N/A AA+ Federal Farm Credit Bank 09/01/26 437,520 none N/A AA+ Federal Farm Credit Bank 09/01/26 21,823,600 09/01/22 continuously AA+ Federal Home Loan Bank 09/16/26 13,094,820 09/16/22 quarterly AA+ Federal Home Loan Bank 09/30/26 21,888,650 12/30/21 quarterly AA+ Federal Home Loan Bank 09/30/26 218,443 none N/A AA+ Federal Home Loan Bank 10/14/26 21,930,675 01/14/22 quarterly AA+ Federal Home Loan Bank 10/21/26 21,896,650 01/21/22 quarterly AA+ Federal Home Loan Bank 10/22/26 21,939,400 11/22/21 monthly AA+ US Treasury Note 11/30/26 422,878 none N/A AA+ Federal Home Loan Bank 02/26/27 120,613 none N/A AA+ US Treasury Note 08/28/27 227,803 none N/A AA+ Total $ 1,815,592,897 *Credit ratings are Standard & Poor ratings except for Florida Enhanced Cash which is a Fitch rating The County maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is displayed on the balance sheet under the heading of Cash and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County's investment policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (Florida PRIME), other Local Government Investment Pools rated AAAm/Aaa-mf, S1 or equivalent, local direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers' acceptances rated "AA" or higher, prime commercial paper rated "A-1" and "P-1", tax-exempt obligations rated 'AA" or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County's master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and 48 NOTE 2 - CASH AND INVESTMENTS (Continued) the fair value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. Florida PRIME is an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. As of September 30, 2022, the County had $200,529,078 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool. All of these funds are held in the Florida PRIME pool. Florida PRIME is rated "AAAm" by Standard & Poor's Global Ratings Services. Florida Cooperative Liquid Assets Securities System (FLCLASS) is an intergovernmental investment pool established pursuant to the Florida Interlocal Cooperation Act of 1969, as amended, (Section 163.01, Florida Statutes) and is an authorized investment under Section 218.415, Florida Statutes. FLCLASS is supervised by a board of trustees comprised of eligible participants of the FLCLASS program. As of September 30, 2022, the County had $140,753,200 invested in FLCLASS. Of this amount, $20,549,600 was invested in the FL CLASS Daily Liquidity Fund and $120,203,600 was invested in the FL CLASS Enhanced Cash Pool. The FLCLASS Daily Liquidity Pool is rated "AAAm" by Standard and Poor's Global Ratings Services and the FLCLASS Enhanced Cash Pool is rated "AAAf/S1" by Fitch Ratings. Florida Public Assets for Liquidity Management (FL PALM) is a common law trust organized under the authority of the Florida Interlocal Cooperation Act of 1969, as amended, (Section 163.01, Florida Statutes) and Section 218.415 of the Florida Statutes. FL PALM was created on October 22, 2010 by contract among its participating governmental units and is governed by trustees. The fund is an investment opportunity for State school districts, political subdivisions of the State or instrumentalities of political subdivisions of the State. As of September 30, 2022, the County had $145,986,102 invested in FL PALM. Of this amount, $100,986,102 was invested in the FL PALM Portfolio and $45,000,000 was invested in the FL PALM Term Pool. The FL PALM Portfolio is rated "AAAm" by Standard and Poor's Global Ratings Services. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public Deposits Act". Under the Act, all qualified public depositories are required to pledge eligible collateral having a fair value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range from 25% to 150% depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. As of September 30, 2022, the County had demand deposits of $136,164,039. All balances in excess of the Federal Depository Insurance Corporation (FDIC) insurance for these demand deposits are fully collateralized by the multiple financial institutions' collateral pool in accordance with Florida Statutes Section 280. The discretely presented component unit demand deposits of $475,561 are secured by the FDIC as individual entity balances do not exceed $250,000. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The County's investment policy requires execution of a third -party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the County's name. CREDIT RISK The County's investment policy establishes limitations on portfolio composition in order to control the concentration of credit risk. The following maximum limits per sector, are established by policy: Sector U.S. Treasury U.S. Agencies Corporates Certificates of Deposit Repurchase Agreements Commercial Paper State Investment Pools Investment Policy Limit 100% 80% - Maximum 40% per issuer 25% 30% 20% 25% 50% 49 NOTE 2 — CASH AND INVESTMENTS (Continued) INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. The weighted average days to maturity (WAM) of Florida PRIME on September 30, 2022, was 21 days. The weighted average life (WAL) of Florida PRIME at September 30, 2022, was 72 days. The weighted average days to maturity (WAM) of the FL PALM Portfolio was 25 days, while the weighted average life (WAL) was 62 days. The weighted average days to maturity (WAM) of the FLCLASS Liquidity Pool on September 30, 2022, was 27 days, while the weighted average life (WAL) was 68 days. The weighted average days to maturity (WAM) of the FLCLASS Enhanced Cash Pool at September 30, 2022 was 105 days, while the weighted average life (WAL) was 176 days. Next interest rate reset dates for floating rate securities are used in the calculation of the respective weighted average days to maturity. The portion of the County's cash and investments invested in U.S. Government Agencies is detailed as follows, at September 30, 2022: Issuer Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association Federal Agricultural Mortgage Corporation Total U.S. Government Agencies Reconciliation of cash and investments to the basic financial statements: Primary government: Cash and investments Restricted cash and investments - current Restricted cash and investments - noncurrent Fiduciary funds: Cash and investments Total FAIR VALUE MEASUREMENTS % of Portfolio 27.81 % 6.37% 7.93% 2.48% 0.52% 45.11 % 683,191,879 129,381,478 976,443,924 26,575,616 $ 1,815,592,897 GASB Statement No. 72, Fair Value Measurements and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GASB Statement No. 72 are described as follows: Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the County has the ability to access. Level 2 — Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs, if any, reflect the County's own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the County's own data. 50 NOTE 2 — CASH AND INVESTMENTS (Continued) The County has the following recurring fair value measurements as of September 30, 2022: US Treasury Notes and Bills classified as Level 1 of the fair value hierarchy were valued using prices quoted in active markets for those securities. As of September 30, 2022, the fair value of the County's US Treasury Notes and Bills was $298,886,751. US Agency obligations and corporate notes classified as Level 2 of the fair value hierarchy were valued using quoted prices for similar assets in active markets for those securities. As of September 30, 2022, the fair value of the County's US Agency obligations was $819,046,368 and the fair value of its corporate notes was $73,873,121. NOTE 3 — TRADE RECEIVABLES Trade receivables for Governmental and Business -type Activities are net of an allowance for doubtful accounts as follows: General Fund Bayshore Gateway Community Redevelopment Agency Grants and Shared Revenue Nonmajor Governmental Funds Total receivables reported in Governmental Funds Total receivables reported in Internal Service Funds Total Governmental Activities trade receivables County Water and Sewer Solid Waste Disposal Emergency Medical Services Nonmajor Enterprise Funds Total Business -type Activities trade receivables Less Allowance Trade for Doubtful Net Trade Receivables Accounts Receivables $ 1,044,364 $ 529,185 $ 515,179 12,720 12,720 - 1,875 132 1,743 2,432,998 354,111 2,078,887 3,491,957 896,148 2,595,809 1,223,498 18,562 1,204,936 $ 4,715,455 $ 914,710 $ 3,800,745 $ 16,658,562 $ 99,205 $ 16,559,357 1,199,667 17,801 1,181,866 30,588,882 26,053,919 4,534,963 34,767 16,293 18,474 $ 48,481,878 $ 26,187,218 $ 22,294,660 The County has multi and single-family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP) and the State Housing Initiatives Partnership Program (SHIP), in addition to some affordable housing impact fee programs. If the homeowners remain in their homes for the full term of the agreement, the loan or deferred impact fee is forgiven. If the property is transferred or sold before the end of the agreement, the proceeds from the repayment including interest, if any, are then repaid and returned to the appropriate program. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. 51 NOTE 4 - LEASE RECEIVABLES The County leases land, building, office space and equipment to third parties. As of September 30, 2022, the County's lease receivables were valued at $9,333,637 and the deferred inflow of resources associated with these leases that will be recognized as revenue over the term of the leases was $8,707,434. The lease receivables for Governmental and Business -type Activities at September 30, 2022, were as follows: GOVERNMENTAL ACTIVITIES Land leases - annual lease payments totaling $97,564 plus interest at a rate of 2.29%, due dates ranging from January 20, 2023 to March 13, 2048. $ 5,412,654 Building and office space leases - annual lease payments totaling $85,472 plus interest at a rate ranging from 1.26% - 2.31 %, due dates ranging from October 1, 2022 to January 1, 2029. 525,231 Equipment leases - annual lease payments totaling $79,102 plus interest at a rate of 2.29%, due dates ranging from December 19, 2022 to May 21, 2030. 724,238 Total Governmental Activities Lease Receivables $ 6,662,123 BUSINESS -TYPE ACTIVITIES Land leases - annual lease payments totaling $37,390 plus interest at a rate ranging from 0.15%to 2.44%, due dates ranging from October 1, 2022 to March 1, 2062. $ 2,282,962 Building and office space leases - annual lease payments totaling $193,694 plus interest at a rate of 2.29%, due dates ranging from October 1, 2022 to August 1, 2028. 388,552 Total Business -type Activities Lease Receivables $ 2,671,514 The payments for the lease receivables are expected to be received in the subsequent years as follows: Governmental Activities Fiscal Year Principal Interest 2023 $ 291,107 $ 146,368 2024 311,116 140,275 2025 291,850 133,230 2026 311,528 126,384 2027 335,259 119,054 2028-2032 1,406,537 490,531 2033-2037 1,469,596 340,457 2038-2042 1,604,782 151,119 2043-2047 519,653 44,824 2048-2052 120,695 1,469 2053-2057 - - 2058-2062 Business -like Activities Principal Interest $ 127,944 $ 61,163 103,768 58,957 107,914 56,360 110,421 53,853 120,684 51,270 365,126 226,885 395,526 185,983 424,651 134,740 195,400 98,570 220,405 73,565 248,704 45,266 250,971 13,602 $ 6,662,123 $ 1,693,711 $ 2,671,514 $ 1,060,214 52 NOTE 4 - LEASE RECEIVABLES (Continued) The County has two leasing agreements which qualify to be treated as regulated in accordance with the requirements of GASB Statement No. 87, Leases. The County leases land and a building to third parties under these agreements. The land lease is for twenty one years with an option to extend for nine years and annual lease payments of $2,448. The building lease is for ten years and monthly lease payments of $1,753. The County recognized $23,874 in lease revenue during the current fiscal year related to these leases. As of September 30, 2022, the remaining nominal amount of revenue that will be recognized as revenue over the lease term associated with these leases amounts to $79,430 which is expected to be received for each of the subsequent five years and in five-year increments thereafter as stated below: Business -type Fiscal Year Activities 2023 $ 18,230 2024 2,448 2025 2,448 2026 2,448 2027 2,448 2028-2032 12,240 2033-2037 12,240 2038-2042 12,240 2043-2047 12,240 2048-2052 2,448 NOTE 5 — INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances were made to funds for the purposes of capital acquisitions and improvements. Reimbursements will take place over the next several years as funds are available. Advances to and advances from other funds at September 30, 2022 were as follows: Governmental Activities: General Fund Other governmental funds: Community Development Improvement Districts Fire Control Districts Tourist Development Amateur Sports Complex Other Capital Projects Total Governmental Activities Business -type Activities: Other business -type funds: Airport Authority Total Business -type Activities Total Advances Advance To Advance From $ 268,100 $ ,609,689 - 73,129 - 268,100 7,200,000 - - 17,200,000 73,129 9,264 19,150,918 17,550,493 - 1,600,425 - 1,600,425 $ 19,150,918 $ 19,150,918 53 NOTE 5 - INTERFUND PAYABLES AND RECEIVABLES (Continued) DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. Due from and due to other funds at September 30, 2022 were as follows Due From Due To Governmental Activities: General Fund $ 1,019,111 $ 2,882,930 Grants and Shared Revenues 343,598 1,635,002 Infrastructure Sales Tax 54,276 - Other Governmental Funds: Road Districts 3,812 - Unincorporated Area MSTD 529,034 10,539 Community Development 2 11,509 Water Management and Pollution Control 31,681 - Pelican Bay Special Revenue 35,623 - Stormwater Utility - 5,124 Improvement Districts 55,370 3,396 Fire Control Districts 13,494 - Lighting Districts 7,624 - 911 Enhancement Fee - 243,525 Tourist Development 1,964,987 582 800 MHz IRCP Fund 55,652 - State Court Administration 57,301 - Consficated Property - 7,000 Utility Fee - 91 Conservation Collier 203,440 312 Court Information Technology 57,682 - Court Services - 295,230 Court Facilities 77,204 - Other Public Safety Revenue Funds 77,566 117,307 Other Special Revenue Funds 23,092 - County -Wide Capital Improvement 8,077 224,791 Parks Improvements 2,153 - Water Management 5,719 Pelican Bay Capital 16,340 - Road Construction 973,121 342,312 Other Capital Projects 176 - Total other governmental funds 4,199,150 1,261,718 Business -type Activities: County Water and Sewer $ 436 $ 8,128 Solid Waste 176,790 - Emergency Medical Services - 34,080 Other Nonmajor Business -type Funds: Collier Area Transit 28,497 - Total All Funds $ 5,821,858 $ 5, 221,858 54 NOTE 6 - CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2022 is as follows: October 1, Transfers and September 30, 2021 Additions Deductions Reclassifications 2022 Governmental Activities: Capital assets not depreciated: Land and other non -depreciable assets $ 524,086,375 $ 82,532,104 $ (274,639) $ 3,038 $ 606,346,878 Construction in progress 95,033,694 94,104,243 (486,218) (66,155,126) 122,496,593 Total capital assets not depreciated 619,120,069 176,636,347 (760,857) (66,152,088) 728,843,471 Capital assets depreciated: Buildings 507,358,149 771,370 (593,930) 26,258,453 533,794,042 Infrastructure 1,203,852,596 238,147 (390,570) 10,849,745 1,214,549,918 Improvements other than buildings 369,862,887 2,195,371 (3,656,720) 24,747,757 393,149,295 Machinery and equipment 265,592,355 23,477,773 (11,385,130) 4,027,802 281,712,800 Right -to -use leased land 450,852 - - 450,852 Right -to -use leased buildings 2,442,233 776,939 3,219,172 Right -to -use leased equipment 5,841,694 88,026 (252,060) - 5,677,660 Total capital assets depreciated 2,355,400,766 27,547,626 (16,278,410) 65,883,757 2,432,553,739 Less accumulated depreciation: Buildings 249,442,699 16,856,403 (291,524) (14,250) 265,993,328 Infrastructure 557,125,917 38,173,835 (250,162) (1,786) 595,047,804 Improvements other than buildings 226,018,238 14,193,695 (2,568,496) - 237,643,437 Machinery and equipment 187,411,881 26,455,835 (10,364,716) 12,255 203,515,255 Right -to -use leased land 72,563 39,720 - 112,283 Right -to -use leased buildings 386,366 340,321 726,687 Right -to -use leased equipment 1,137,954 719,318 (252,053) 1,605,219 Total accumulated depreciation 1,221,595,618 96,779,127 (13,726,951) (3,781) 1,304,644,013 Total depreciable capital assets, net 1,133,805,148 (69,231,501) (2,551,459) 65,887,538 1,127,909,726 Total Governmental Activities capital assets, net $ 1,752,925,217 $ 107,404,846 $ (3,312,316) $ (264,559) $ 1,856,753,197 Business -type Activities: Capital assets not depreciated: Land and other non -depreciable assets $ 32,909,069 $ 176,464 $ $ 89,847 $ 33,175,380 Construction in progress 136,470,470 54,404,312 (232,404) (45,692,071) 144,950,307 Total capital assets not depreciated 169,379,539 54,580,776 (232,404) (45,602,224) 178,125,687 Capital assets depreciated: Buildings 178,832,992 - (1,397,876) 749,495 178,184,611 Improvements other than buildings 1,420,465,814 18,466,306 (4,726,411) 45,118,210 1,479,323,919 Machinery and equipment 97,640,588 7,456,191 (2,517,697) 2,850 102,581,932 Right -to -use leased buildings 726,978 - - 726,978 Right -to -use leased equipment 158,456 (1,474) - 156,982 Total capital assets depreciated 1,697,824,828 25,922,497 (8,643,458) 45,870,555 1,760,974,422 Less accumulated depreciation: Buildings 108,106,089 4,748,531 (1,061,152) 15,554 111,809,022 Improvements other than buildings 640,490,484 46,229,707 (2,628,194) (11,773) 684,080,224 Machinery and equipment 60,127,170 8,656,708 (2,382,524) 66,401,354 Right -to -use leased buildings 135,227 67,521 202,748 Right -to -use leased equipment 63,887 32,797 (1,474) - 95,210 Total accumulated depreciation 808,922,857 59,735,264 (6,073,344) 3,781 862,588,558 Total depreciable capital assets, net 888,901,971 (33,812,767) (2,570,114) 45,866,774 898,385,864 Total Business -type Activities capital assets, net $ 1,058,281,510 $ 20,768,0 99 $ (2,802,518) $ 264,550 $ 1,076,511,551 55 NOTE 6 - CAPITAL ASSETS (Continued) Schedule of depreciation and amortization for fiscal year 2022: General Government $ 8,277,754 Public Safety 25,330,048 Physical Environment 9,112,800 Transportation 36,494,021 Economic Environment 625,575 Human Services 317,837 Culture and Recreation 12,877,625 Subtotal 93,035,660 Internal Service Funds 3,743,467 Total Governmental Activities $ 96,779,127 Water and Sewer $ 50,869,321 Solid Waste 1,691,364 EMS 2,632,783 Airport Authority 2,379,955 Mass Transit 2,161,841 Total Business -type Activities $ 59,735,264 NOTE 7 - LONG-TERM DEBT SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations for the year ended September 30, 2022: Governmental Activities: Revenue Bonds Payable Premiums on Bonds Payable Direct Placement Loans and Notes Discount on Direct Placement Loan Commercial Paper Loans Financed Purchase Obligations Leases Payable Self -Insurance Claims Compensated Absences Total Business -type Activities: Revenue Bonds Payable Premium on Bonds Payable Direct Placement Loans and Notes Developer Note Payable Leases Payable Landfill Closure Liability Compensated Absences Total 000's Omitted Premium/ October 1, Discount September Due within 2021 Additions Reductions Amortized 30, 2022 one year $ 283,130 $ $ (122,930) $ - $ 160,200 $ 7,630 26,726 (6,539) (1,707) 18,480 - 111,582 108,425 (10,843) - 209,164 22,605 - (189) 4 (185) - - 1,000 - - 1,000 28 - (28) - - 7,425 865 (981) 7,309 877 10,944 75,824 (74,885) 11,883 9,473 34,927 14,385 (12,717) - 36,595 12,677 $ 474,762 $ 000,310 $ (228,923) $ (1,7031 $ 444,446 $ 53,262 $ 253,190 $ $ (2,055) $ - $ 251,135 $ 2,105 44,266 (2,102) 42,164 - 82,476 (14,852) 67,624 11,539 70 - 70 70 703 (96) 607 98 1,627 (240) 1,387 39 3,181 3,849 (2,938) 4,092 3,274 $ 385,513 $ 3,849 $ (20,181) $ (2,102) $ 367,079 $ 17,125 56 NOTE 7 — LONG-TERM DEBT (Continued) DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2022 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds, due in annual installments of $2,700,000 to $6,605,000 through June 1, 2023; interest at 3.00% to 5.00% and collateralized by a pledge on the combined gas tax proceeds. Bonds were issued for purposes of advance refunding the County's 2003 Gas Tax Revenue Bonds. $ 3,760,000 $62,965,000 2018 Tourist Development Tax Revenue Bonds, due in annual installments of $1,030,000 to $3,605,000 through October 1, 2048; interest at 4.00% to 5.00% and collateralized by a pledge on tourist development tax revenues. Bonds were issued for purposes of financing the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. 59,705,000 $75,100,000 2020A Special Obligation Revenue Bonds, due in annual installments of $165,000 to $6,045,000 through October 1, 2045; interest at 4.00% to 5.00% and collateralized by a pledge on legally available non - ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of providing funding for the acquisition, construction and equipping of various capital improvements and refunding a commercial paper loan. 74,935,000 $24,075,000 2020B Taxable Special Obligation Revenue Bonds, due in annual installments of $2,275,000 to $2,920,000 through October 1, 2029; interest at 2.00% and collateralized by a pledge on legally available non - ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of financing the purchase of certain real property. 21,800,000 Total Governmental Activities Revenue Bonds Governmental Activities Direct Placement Loans $ 160,200,000 $89,780,000 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds. Loan was issued to advance refund a portion of the County's 2005 Gas Tax Revenue Bonds. $ 34,685,000 $43,713,000 2017 Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $113,000 to $3,724,000 through July 1, 2034; interest at 3.09% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to advance refund a portion of the County's 2010 Special Obligation Revenue Bonds. 37,994,000 $28,060,000 2019 Taxable Special Obligation Taxable Revenue Note (Bank Term Loan) due in annual installments of $1,555,000 to $5,165,000 through October 1, 2029; interest at 2.74% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to acquire the real property known as the Golden Gate Golf Course. 28,060,000 57 NOTE 7 — LONG-TERM DEBT (Continued) $32,865,000 2022A Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $8,425,000 to $1,540,000 through October 1, 2029; interest at 1.43% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to refund the Series 2011 Special Obligation Refunding Revenue Bonds. 32,865,000 $75,560,000 2022E Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $8,295,000 to $570,000 through October 1, 2035; interest at 1.85% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to refund the Series 2013 Special Obligation Refunding Revenue Bonds. 75,560,000 Total Governmental Activities Direct Placement Loans Governmental Activities Commercial Paper Loans $ 209,164,000 $1,000,000 Commercial Paper Loan issued by the Florida Local Government Finance Commission Pooled Commercial Paper Program due on June 1, 2027; monthly variable interest for the current fiscal year of 2.15%to 2.84%, based on the underlying commercial paper that is purchased and collateralized by all legally available non -ad valorem revenues. Loan was issued for purposes of constructing sidewalk improvements in the Pelican Bay Services District. $ 1,000,000 Total Governmental Activities Commercial Paper Loans Total Governmental Activities Obligations Unamortized Bond Premiums Unamortized Discount on Direct Placement Loan Governmental Activities Obligations, Net Less Current Portion of Governmental Activities Obligations Long -Term Portion of Governmental Activities Obligations, Net BUSINESS -TYPE ACTIVITIES Business -type Activities Revenue Bonds $ 1,000,000 370,364,000 18,480,026 (185,268) 388,658,758 (30,235,000) $ 358,423,758 $48,105,000 2016 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $5,035,000 to $7,090,000 through July 1, 2036; interest at 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of currently refunding all of the District's remaining 2006 Water and Sewer Revenue Bonds. $ 48,105,000 $76,185,000 2019 Collier County Water and Sewer Revenue Bonds due in annual installments of $4,385,000 to $14,160,000 through July 1, 2039; interest at 3.00% to 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements within the Collier County Water and Sewer District. 76,185,000 $128,900,000 2021 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,055,000 to $11,300,000 through July 1, 2046; interest at 4.00% to 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of financing the acquisition, construction and equipping of various water and wastewater improvements within the Collier County Water and Sewer District. 126,845,000 Total Business -type Activities Revenue Bonds $ 251,135,000 58 NOTE 7 — LONG-TERM DEBT (Continued) Business -type Activities Direct Placement Loans $35,965,000 2018 Collier County Water and Sewer Revenue Bond (Bank Term Loan) due in annual installments of $1,560,000 to $3,945,000 through July 1, 2029; interest at 2.41 % and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to finance the acquisition of water and wastewater utility facilities within the Golden Gate Community. 25,155,000 Total Business -type Activities Direct Placement Loans Business -type Activities Note Payable $ 25,155,000 $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits. Non -interest bearing agreement. $ 69,848 $89,982,000 2016 County Water and Sewer District Refunding Revenue Note with Synovus Financial Corporation, due in monthly installments of $2,881,000 to $9,574,000 through July 1, 2029; interest at 1.80% and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. Loan was issued to currently refund all of the District's State Revolving Fund Loans. $ 42,469,000 Total Business -type Activities Note Payable Total Business -type Activities Obligations Unamortized Bond Premiums Business -type Activities Obligations, Net Less Current Portion of Business -type Activities Obligations Payable from Unrestricted Assets Less Current Portion of Business -type Activities Obligations Payable from Restricted Assets Long -Term Portion of Business -type Activities Obligations, Net SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY $ 42,538,848 $ 318,828,848 $ 42,163,593 $ 360,992,441 $ (10,233,000) (3,480,848) $ 347,278,593 The total annual debt service requirements to maturity of long-term debt, excluding compensated absences, premiums, discounts and arbitrage rebate liability, are as follows: Fiscal Year 2023 2024 2025 2026 2027 2028-32 2033-37 2038-42 2043-47 2048-52 Total Governmental Activities Direct Placement Loans Revenue Bonds and Notes Payable Commercial Loans Totals Principal Interest Principal Interest Principal Interest $ 7,630,000 $ 6,219,900 $ 22,605,000 $ 4,171,106 $ $ 180,000 $ 40,806,006 3,990,000 5,987,550 26,751,000 4,047,090 180,000 40,955,640 4,110,000 5,863,500 27,246,000 3,470,052 180,000 40,869,552 4,235,000 5,734,900 14,309,000 2,869,089 180,000 27,327,989 4,365,000 5,601,575 14,603,000 2,544,824 1,000,000 135,000 28,249,399 24,070,000 25,641,725 68,370,000 7,620,126 - - 125,701,851 29,865,000 19,660,775 35,280,000 1,299,144 86,104,919 36,615,000 12,840,500 - - 49,455,500 38,250,000 4,875,400 43,125,400 7,070,000 285,600 7,355,600 $160,200,000 $ 92, 111,425 $209, 664,000 $ 26, 221,431 $ 1, 000,000 $ 555,000 $489, 551,856 59 NOTE 7 — LONG-TERM DEBT (Continued) Business -type Activities Fiscal Year Revenue Bonds Direct Placement Loans and Notes Payable Developer Note Payable Totals Principal Interest Principal Interest Principal Interest 2023 $ 2,105,000 $ 10,502,681 $ 11,539,000 $ 1,370,677 $ 69,848 $ $ 25,587,206 2024 2,210,000 10,397,431 11,763,000 1,141,595 - 25,512,026 2025 2,320,000 10,286,931 11,429,000 907,993 24,943,924 2026 2,435,000 10,170,931 10,103,000 679,884 23,388,815 2027 2,560,000 10,049,181 8,671,000 475,093 21,755,274 2028-32 50,380,000 45,963,157 14,119,000 415,681 110,877,838 2033-37 80,195,000 30,897,714 - - 111,092,714 2038-42 66,270,000 14,988,150 81,258,150 2043-47 42,660,000 4,349,600 - - - 47,009,600 Total $251,135,000 $147, 005,776 $ 67, 224,000 $ 4, 990,923 $ 69,848 $ $471, 225,547 CURRENTYEAR FINANCING ACTIVITIES On March 15, 2022, Collier County issued the Series 2022A Special Obligation Refunding Revenue Note (Bank Term Loan) in the par amount of $32,865,000. This note was issued for the purpose of refunding the County's outstanding Special Obligation Refunding Revenue Bonds, Series 2011. The final maturity of the Series 2022A Note is October 1, 2029, with an interest rate of 1.43%. The refunding achieved a net present value savings of 5.58% on the refunded bonds, an aggregate debt service savings of $1,927,082 and an economic gain of $1,820,723. The Series 2022A Special Obligation Refunding Revenue Note was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Revenue Bonds. The refunded Series 2011 Special Obligation Refunding Revenue Bonds had a redemption date of March 15, 2022. On June 30, 2022, Collier County issued a $1,000,000 commercial paper loan through the Florida Local Government Finance Commission's Pooled Commercial Paper Program. The loan was issued for purposes of sidewalk improvements in the Pelican Bay Services Municipal Services Taxing and Benefit Unit. The loan bears monthly variable interest and is collateralized by all legally available non -ad valorem revenues as defined in the loan agreement. On July 6, 2022, Collier County issued the Series 2022B Special Obligation Refunding Revenue Note (Bank Term Loan) in the par amount of $75,560,000. This note was structured as a forward purchase agreement entered into on March 15, 2022, and issued for purposes of refunding the County's outstanding Special Obligation Refunding Revenue Bonds, Series 2013. The final maturity of the Series 2022B Note is October 1, 2035, with an interest rate of 1.85%. The refunding achieved a net present value savings of 14.17% on the refunded bonds, an aggregate debt service savings of $11,882,585 and an economic gain of $10,460,042. The Series 2022B Special Obligation Refunding Revenue Note was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Revenue Bonds. The refunded Series 2013 Special Obligation Refunding Revenue Bonds have a redemption date of October 1, 2022. RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2020A and 2020B Taxable Special Obligation Refunding Revenue Bonds and Series 2017, 2019 and 2022A and 2022B Special Obligation Refunding Revenue Notes (bank term loan), the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment if necessary, from non -ad valorem revenues amounts sufficient to pay principal and interest on the combined Special Obligation Bonds and Notes. The total non -ad valorem revenue collections pledged to payment of the Special Obligation Bonds and Notes for the fiscal year ended September 30, 2022 was $168,095,843. According to County resolutions authorizing the issuance of the Series 2012 Gas Tax Revenue Refunding Bonds and Series 2014 Gas Tax Refunding Revenue Bond (bank term loan), the issues are payable from and secured by liens on gas tax revenues. Total pledged gas tax revenue collections for the fiscal year ended September 30, 2022 were $24,195,878. According to County resolutions authorizing the issuance of the Series 2018 Tourist Development Tax Revenue Bonds, the issues are payable from and secured by a lien on tourist development tax revenues. Total tourist development tax revenues for the fiscal year ended September 30, 2022 were $47,470,485. The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating expenses, to repay $276,290,000 in Series 2016, 2018, 2019 and 2021 senior lien revenue bonds and direct placement loans. Proceeds from the bonds and loans were used for the expansion of the District's water and sewer systems as well as the NOTE 7 — LONG-TERM DEBT (Continued) refinancing of bonds issued for purposes of rehabilitation or expansion of the District's water and sewer systems. Principal and interest are payable through July 1, 2046, solely from the net revenues and certain other fees and charges derived from operation of the County's Water and Sewer District (District). The pledge of net revenues by the District from the operation of the system does not constitute a lien upon the system or any other property of the County. The resolutions authorizing the revenue bonds include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions, which together with system development fees (impact fees) and special assessment proceeds (if applicable) received shall be at least 125% of the annual debt service requirements for the bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on the bonds. Fiscal year 2022 pledged revenues, net of operating expenses (excluding depreciation and amortization), were $46,910,493, and $66,724,914 when system development fees were included. Principal and interest paid on the bonds during fiscal year 2022 totaled $19,974,700, providing coverage of 235% and 334%, respectively. In addition, bond covenants require a renewal and replacement amount equal to $300,000 in the District funds. The District was in compliance with these covenants for the year ended September 30, 2022. In addition, the District has a note outstanding in the amount of $42,469,000 with Synovus Financial Corporation. This note is collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and system development fees. The lien is subordinate in all respects to the liens placed upon pledged revenues established by bonded and direct placement loan indebtedness. The District's note was in compliance with these covenants for the year ended September 30, 2022. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. LEASES PAYABLE The County is a lessee for noncancellable leases of land, building, office space and equipment. At September 30, 2022, the County's lease payable of $7,916,397 was composed of the following: GOVERNMENTAL ACTIVITIES Leases with options to purchase equipment - annual payments totaling $11,051 plus interest at rates ranging from 0.33% to 11.75%, due dates ranging from October 1, 2022 to August 1, 2026. $ 14,636 Land leases - annual payments totaling $37,609 plus interest at rates ranging from 1.51 % to 2.40%, due dates ranging from October 1, 2022 to July 1, 2051. 339,875 Building and office space leases - annual payments totaling $302,787 plus interest at rates ranging from 0.35% to 2.11 %, due dates ranging from October 1, 2022 to December 11, 2039. 2,656,586 Equipment and vehicle leases - annual payments totaling $557,035 plus interest at rates ranging from 0.14% to 3.50%, due dates ranging from October 1, 2022 to September 1, 2027. 4,297,916 Total Governmental Activities Leases Payable $ 7,309,013 BUSINESS -TYPE ACTIVITIES Lease with option to purchase equipment - annual payments totaling $5,659 plus interest at a rate of 1.51 %, due dates ranging from October 1, 2022 to September 1, 2023. $ 5,659 Building and office space leases - annual payments totaling $64,698 plus interest at the rate of 1.93%, due dates ranging from October 1, 2022 to September 1, 2034. 544,276 Equipment leases - annual payments totaling $27,346 plus interest at rates ranging from 0.24% to 1.55%, due dates ranging from October 1, 2022 to October 1, 2024. 57,449 Total Business -type Activities Leases Payable $ 607,384 M NOTE 7 - LONG-TERM DEBT (Continued) The future principal and interest lease payments as of September 30, 2022, were as follows: Governmental Activities Business -type Activities Fiscal Year Principal Interest Principal Interest 2023 $ 906,670 $ 95,551 $ 97,703 $ 9,949 2024 806,051 85,106 94,708 8,371 2025 666,677 75,016 71,630 6,939 2026 599,770 66,436 71,706 5,723 2027 587,535 58,456 42,093 4,677 2028-2032 2,423,134 191,482 168,359 13,893 2033-2037 1,003,696 67,632 61,185 966 2038-2042 313,032 7,486 - - 2043-2047 1,303 197 2048-2051 1,145 55 - - Total $ 7,309,013 $ 647,417 $ 607,384 $ 50,518 NOTE 8 - CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi -family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuing authority, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2022, the outstanding principal amount payable on all component unit conduit debt was $612,129,535 and is made up of the following: Industrial development revenue bonds $ 279,981,628 Housing finance revenue bonds 76,639,537 Health facilities revenue bonds 191,323,217 Educational facilities revenue bonds 64,185,153 Total $ 612,129,535 NOTE 9 - DEFINED BENEFIT PENSION PLANS BACKGROUND The Florida Retirement System (FRS) Pension Plan was created by Chapter 121, Florida Statutes, effective December 1, 1970. The FRS is a qualified retirement plan under Section 401(a), Internal Revenue Code, created to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits are defined and described in detail. Such provisions may be amended at any time by the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs. 62 NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' web site (www. dms.myflorida.com). The County's pension expense totaled $45,802,506 for both the FRS Pension Plan and HIS Plan for the year ended September 30, 2022. FLORIDA RETIREMENT SYSTEM PENSION PLAN PLAN DESCRIPTION The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class — Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class — Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) — Members in senior management level positions. Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of - living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. Sig NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) The following chart shows the percentage value for each year of service credit earned: Class, Initial Enrollment and Retirement Age/Years of Service: % Value (per year of service) Regular Class members initially enrolled before July 1, 2011 Retirement up to age 62 or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68 Regular Class members initially enrolled on or after July 1, 2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68 Elected County Officers' Class 3.00 Senior Management Service Class 2.00 Special Risk Class Service from December 1, 1970 through September 30, 1974 2.00 Service on and after October 1, 1974 3.00 As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. CONTRIBUTIONS The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer contribution rates by job class for the periods from October 1, 2021 through June 30, 2022 and from July 1, 2022 through September 30, 2022, respectively, were as follows: Regular employees — 10.82% and 11.91 %1- Special Risk — Regular-25.89% and 27.83%; County Elected Officials — 51.42% and 57.00%1- Senior Management Services — 29.01 % and 31.57%; and DROP participants — 18.34% and 18.60%. The County's contributions to the FRS Plan were $35,022,631 for the year ended September 30, 2022. PENSION COSTS At September 30, 2022, the County reported a liability of $292,121,565 for its proportionate share of the FRS Plan's net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2022. The County's proportion of the net pension liability was based on the County's contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2021, through June 30, 2022, relative to the total employer contributions received from all of FRS's participating employers. At June 30, 2022, the County's proportion was 0.785103%, which was an increase of 0.014800% from its proportion measured as of June 30, 2021. 64 NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) For the year ended September 30, 2022, the County recognized pension expense of $41,190,307 for its proportionate share of FRS's pension expense. In addition, the County reported its proportionate share of FRS's deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date Total Deferred Deferred Outflows of Inflows of Resources Resources $ 13,874,087 $ 35,975,992 19,288,750 8,003,409 10,017,350 9,952,699 $ 87,094,937 $ 10,017,350 Deferred outflows of resources related to pensions of $9,952,699, resulting from County contributions to the FRS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as increases or decreases in pension expense as follows: Year Ending September 30 Amount 2023 $ 16,219,311 2024 5,445,260 2025 (6,457,550) 2026 48,921, 508 2027 2,996,359 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2022, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.25%, including inflation Investment Rate of Return 6.70%, Net of Pension Plan investment expense Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018. The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward -looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) The target allocation, as outlined in the FRS Plan's investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Annual Arithmetic Return Compound Annual (Geometric) Return Standard Deviation Cash 1.0% 2.6% 2.6% 1.1 % Fixed income 19.8% 4.4% 4.4% 3.2% Global equity 54.0% 8.8% 7.3% 17.8% Real estate (property) 10.3% 7.4% 6.3% 15.7% Private equity 11.1 % 12.0% 8.9% 26.3% Strategic investments 3.8% 6.2% 5.9% 7.8% Totals 100.0% Assumed Inflation - Mean 2.4% 1.3% DISCOUNT RATE The discount rate used to measure the total pension liability for the FRS Plan in fiscal year 2022 was 6.70% which was .10% lower than in fiscal year 2021. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current Discount 1 % Increase in Description Discount Rate Rate Discount Rate FRS Plan Discount Rate County's Proportionate Share of the FRS Plan Net Pension Liability PENSION PLAN FIDUCIARY NET POSITION 5.70% 6.70% 7.70% 505,204,160 $ 292,121,565 $ 113,959,160 Detailed information about the FRS Plan's fiduciary net position is available in a separately -issued FRS Pension Plan and Other State -Administered Systems Annual Comprehensive Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. RETIREE HEALTH INSURANCE SUBSIDY PROGRAM PLAN DESCRIPTION The Retiree Health Insurance Subsidy Program (HIS Plan) is a non -qualified, cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. BENEFITS PROVIDED For the fiscal year ended June 30, 2022, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) CONTRIBUTIONS The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. The FRS contribution rates include a 1.66% HIS Plan subsidy for the periods October 1, 2021 through June 30, 2022 and from July 1, 2022 through September 30, 2022, pursuant to Section 112.363, Florida Statutes. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County's contributions to the HIS Plan were $4,341,241 for the year ended September 30, 2022. PENSION COSTS At September 30, 2022, the County reported a liability of $73,439,084 for its proportionate share of the HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2022. The projected HIS benefits to be paid out in the next fiscal year exceed the fiduciary net position of the HIS Plan as of the end of the fiscal year. As such, the County has reported its proportion of the excess of the projected benefit payment over the fiduciary net position as a current liability. The County's proportion of the net pension liability was based on the County's contributions received during the measurement period for employer payroll paid dates from July 1, 2021, through June 30, 2022, relative to the total employer contributions received from all participating employers. At June 30, 2022, the County's proportion was 0.693371 %, which was an increase of 0.010650% from its proportion measured as of June 30, 2022. For the year ended September 30, 2022, the County recognized pension expense of $4,612,199 for its proportionate share of HIS's pension expense. In addition, the County reported its proportionate share of HIS's deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on HIS Program Investments Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date Total Deferred Outflows of Resources $ 2,229,050 4,209,575 106,324 3,191,919 1,204,763 Deferred Inflows of Resources $ 323,138 11,360,980 1,286,401 $ 10,941,631 $ 12,970,519 Deferred outflows of resources related to pensions of $1,204,763, resulting from County contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as a decrease in pension expense as follows: Year Ending September 30 Amount 2023 $ (499,410) 2024 (155,446) 2025 (127,086) 2026 (483,372) 2027 (1,333,634) Thereafter (634,703) M NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2022, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.25%, including inflation Municipal Bond Rate 3.54% Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018. DISCOUNT RATE The discount rate used to measure the total pension liability for HIS plan increased from 2.16% in fiscal year 2021 to 3.54% in fiscal year 2022. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Description HIS Plan Discount Rate County's Proportionate Share of the HIS Plan Net Pension Liability PENSION PLAN FIDUCIARY NET POSITION 1 % Decrease in Discount Rate 2.54% 84,020,342 $ Current Discount Rate 3.54% 73,439,084 $ 1 % Increase in Discount Rate 4.54% 64,683,311 Detailed information about the HIS Plan's fiduciary's net position is available in a separately -issued FRS Pension Plan and Other State -Administered Systems Annual Comprehensive Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. SUMMARY The aggregate amount of net pension liability, related deferred outflows of resources and deferred inflows of resources and pension expense for the County's defined benefit pension plans are summarized below: FRS Plan HIS Plan Total Net pension liability $ 292,121,565 $ 73,439,084 $ 365,560,649 Deferred outflows of resources related to pensions 87,094,937 10,941,631 98,036,568 Deferred inflows of resources related to pensions 10,017,350 12,970,519 22,987,869 Pension expense 41,190,307 4,612,199 45,802,506 .: The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of .06% of payroll from July 1, 2021 to June 30, 2022 and .06% of payroll from July 1, 2022 to June 30, 2023 in addition to forfeited benefits of plan members. The County's Investment Plan pension expense totaled $7,233,585 for the year ended September 30, 2022. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2022, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. At NOTE 11 —TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to the fund that statute or budget requires they be expended from, (2) account for payments in lieu of taxes not based on an approximation of services rendered, (3) move receipts restricted to debt service to the debt service fund as payments become due and (4) use unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations. Transfers for the year ended September 30, 2022 were as follows: Transfers from Fund Governmental Activities: Transfers to Fund General Fund Grants and Shared Revenue Nonmajor Governmental Funds County Water and Sewer Emergency Medical Services Nonmajor Business -type Internal Service Funds Bayshore Gateway Community Redevelopment Agency General Fund Immokalee Community Redevelopment Agency Grants and Shared Revenues Nonmajor Governmental Funds Business -type Activities: County Water and Sewer Solid Waste Disposal Emergency Medical Services Nonmajor Business -type Internal Service Funds Total Transfers General Fund Bayshore Gateway Community Redevelopment Agency Nonmajor Governmental Funds Amount 902,738 89,975,925 436 21,369,500 5,951,764 700,000 53,800 53,800 74,100 19,600 General Fund 12,208,108 Bayshore Gateway Community Redevelopment Agency 136,800 Immokalee Community Redevelopment Agency 92,800 Grants and Shared Revenue 1,404,401 Nonmajor Governmental Funds 67,869,105 County Water and Sewer 21,000 General Fund 9,913,507 Nonmajor Governmental Funds 1,275,900 Solid Waste Disposal 496,500 Internal Service Funds 28,300 General Fund 596,216 Internal Service Funds 5,100 Internal Service Funds 7,800 Nonmajor Governmental Funds 135,900 General Fund 76,600 Nonmajor Governmental Funds 413,600 $ 213,783,300 NOTE 12 — NET POSITION/FUND BALANCE CLASSIFICATION Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and is categorized as follows: Net investment in capital assets: Total capital assets, net of debt issued and deferred amounts on refundings related to the acquisition of these assets and net of depreciation is reported separately in the net position section. Restricted for growth related capital expansion: Impact fees are restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for community development: Building and permitting fees restricted for licensing, permitting and inspection services. 70 NOTE 12 — NET POSITION/FUND BALANCE CLASSIFICATION (Continued) Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of ad valorem revenues restricted for the maintenance and management of environmentally sensitive land. Restricted for community redevelopment: Tax increment revenues generated in the redevelopment areas are restricted for redevelopment purposes. Restricted for infrastructure sales tax capital projects: Infrastructure sales tax proceeds are restricted for infrastructural capital improvements. Restricted for grants: State and federal government grant monies restricted for grant related purposes. Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long-term debt. Restricted for court programs: Balances are restricted for court programs. Restricted for public safety: Balances are restricted for public safety programs. Restricted for nonexpendable purposes — other: Balances are restricted in conjunction with the maintenance and management of certain conservation lands for mitigation purposes. Restricted for special revenues — other: Balances are restricted for specific uses associated with the revenue collected. Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of County Water and Sewer District Bonds for use in funding the cost of additions, replacement or major repair of District capital assets. Unrestricted: Balances are not restricted for specific purposes. Governmental funds report fund balances as either spendable or non -spendable as follows: Non -spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of advances, loans and notes receivable. Spendable fund balance: Restricted fund balance — Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors; or imposed by law through constitutional provisions or enabling legislation. Committed fund balance — Amounts that can be spent only for specific purposes determined by the County's highest decision making authority, the Board of County Commissioners, via ordinance. Commitments may be modified or removed by the Board of County Commissioners only by amending the ordinance that created the original commitment. Assigned fund balance — Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners, but that are neither restricted nor committed to the specific purpose. Unassigned fund balance — Unassigned fund balance is the residual classification for the County's general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless prohibited by law, grant agreements or other contractual arrangement. Further, when committed fund balance is available the County will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. 71 NOTE 12 — NET POSITION/FUND BALANCE CLASSIFICATION (Continued) A detailed schedule of fund balances at September 30, 2022 is as follows: Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Infrastructure Governmental Governmental Fund Agency Agency Revenue Sales Tax Funds Funds Nonspendable: Endowments $ - $ $ $ $ $ 5,522,800 $ 5,522,800 Inventory 894,057 1,470,752 2,364,809 Advances to other funds 268,100 - 268,100 Notes 1,492,848 1,492,848 Prepaid costs 1,155,499 1,155,499 Total nonspendable fund balance 3,810,504 6,993,552 10,804,056 Restricted for: Community redevelopment $ Federal and state grants Infrastructure sales tax capital projects Bond covenants or debt service Transportation growth related capital Parks growth related capital expansion Parks and recreation Transportation capital projects Community development Transportation operations Tourist development Conservation Collier Special districts Emergency 911 growth related capital expansion Law enforcement growth related capital expansion General government facilities growth related capital expansion Water management Libraries Court functions Public records modernization Other purposes Total restricted fund balance - $ 11,454,560 $ 1,795,525 $ - $ - $ - $ 13,250,085 196,863 - - 7,773,716 - 5,414,270 13,384,849 - - 272,703,551 - 272,703,551 - 5,866,483 5,866,483 111,938,706 111,938,706 49,135,437 49,135,437 12,795,279 12,795,279 50,354,261 50,354,261 40,168,716 40,168,716 1,724,533 1,724,533 118, 004,455 118, 004,455 47,333,796 47,333,796 673,373 673,373 1,708,097 1,708,097 9,979,494 9,979,494 3,914,124 3,914,124 47,572,070 47,572,070 563,946 563,946 10,240,636 10,240,636 8,549,411 8,549,411 2,733,183 2,733,183 196,863 11,454,560 1,795,525 7,773,716 272,703,551 528,670,270 822,594,485 Committed for: Special districts 36,612,162 36,612,162 Natural resource management 3,565,357 3,565,357 Utility regulation 1,125,803 1,125,803 Economic development 5,293,751 5,293,751 Other purposes 1,834,797 1,834,797 Total committed fund balance 48,431,870 48,431,870 Assigned for Parks and recreation 14,151,109 14,151,109 General building & improvements 52,147,383 52,147,383 Water management - 28,329,110 28,329,110 Subsequent year budget 32,694,000 - 32,694,000 Other purposes 2,549,467 15,852,988 18,402,455 Total assigned fund balance 35,243,467 110,480,590 145,724,057 Unassigned: 114,549,101 (1,636,065) 112,913,036 Total Fund Balances $ 153,799,935 $ 11,454,560 $ 1,795,525 $ 7,773,716 $ 272,703,551 $ 692,940,217 $ 1,140,467,504 72 NOTE 13 — RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self-insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self-insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self-insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self-insurance fund and for all other covered risks of loss. Claim Type Property and casualty claims Auto liability claims Employee health claims Workers' compensation claims County's Coverage $50,000 - $500,000 ($250,000 named storm deductible; 3% deductible of reported values per damaged building; subject to $5,000,000 deductible cap) $300,000 $1,000,000 $500,000 Excess Carrier's Coverage 50,000 - $75,000,000 $300,001 - $5,000,000 $1,000,001 - Unlimited $500,001 - Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2022 the operating departments were charged $49,419,915 for workers' compensation, health and property and casualty self-insurance programs. The claims loss reserve for workers' compensation, health and property and casualty of $8,418,046 reported at September 30, 2022 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were discounted at 3.0%. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $6,007,974 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self -Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self -Insurance Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff's Self -Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self-insurance fund providing coverage for the first $1,00,000 of every claim. Re -insurance is provided through a third party insurer for all claims exceeding $1,00,000 up to $18,000,000. Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self -insured risks are reported in the basic financial statements of the Statewide Florida Sheriff's Self -Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. The Sheriff has also established a self -funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In 2022, there was one covered individual who had higher deductible amounts because of a history of high claims. This individual had a deductible of $700,000. Specific claim excess coverage for this individual was for claims exceeding $700,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The claims loss reserve for health of $3,465,000 reported at September 30, 2022 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is recorded as a current liability. 73 NOTE 13 — RISK MANAGEMENT (Continued) CHANGES IN SELF-INSURANCE CLAIMS PAYABLE Changes in the self-insurance claims payable for fiscal years 2021 and 2022 were as follows for the County and Sheriff self- insurance programs: Balance at September 30, 2020 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2021 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2022 NOTE 14 — LANDFILL LIABILITY Property and Group Workers' Casualty Health Compensation Total $ 2,009,827 $ 7,340,000 $ 1,014,530 $ 10,364,357 2,271,313 75,263,626 632,799 78,167,738 (2,978,144) (74,070,626) (538,916) (77,587,686) 1,302,996 8,533,000 1,108,413 10,944,409 1,727,189 73,562,873 533,376 75,823,438 (1 699,0121 (72,646,873) (538,916) (74,884,801) $ 1,331,173 $ 9,449,000 $ 1,102,873 $ 11,883,046 On May 1, 1995, the County entered into a landfill operating agreement with a third party for the County's landfill operations. Under the contract, the third party is responsible for the daily operations, regulatory compliance, closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County's estimated liability in connection with the landfills is included in the proprietary funds statement of net position. The landfill liability will be reassessed on an annual basis, and any changes due to inflation, changes in contract terms, changes in technology or additional postclosure care requirements will be recorded as a current cost. NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS COUNTY'S PLAN DESCRIPTION AND BENEFITS PROVIDED The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan (County's OPEB Plan) and can amend the benefits provisions. The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. The Sheriff also provides post employment healthcare benefits under a separate plan. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group rate as for active employees. The Board of County Commissioners and the Tax Collector also subsidize the cost of the post employment healthcare for qualifying retirees and each has the authority to amend benefit provisions. The Board of County Commissioners offers a subsidy for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the Board, be at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan. A subsidy is currently provided to 21 retirees. The Tax Collector offers a subsidy of 100% of the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement for employees hired prior to June 1, 2015. A subsidy is currently provided to 4 retirees. The County's OPEB Plan is currently being funded on a pay as you go basis. No trust fund has been established for the plan. The plan does not issue a separate financial report. 74 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) PARTICIPANT DATA As of September 30, 2022, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 84 Active employees 2,441 Total employees 2,525 TOTAL OPEB LIABILITY The County's total OPEB liability of $8,241,808 was measured as of September 30, 2022 and was determined by an actuarial valuation as of October 1, 2022. The following table shows the changes in the County's total OPEB liability for the year ended September 30, 2022. Total OPEB Liability Balance, as of October 1, 2021 $ 9,500,959 Changes: Service cost 673,684 Interest on total OPEB liability 148,910 Changes in assumptions or other inputs (1,587,234) Benefit payments (494,511) Net changes (1,259,151) Balance, as of September 30, 2022 $ 8, 441,808 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the County's total OPEB liability, as well as what the County's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current 1 % Increase in Description Discount Rate Discount Rate Discount Rate OPEB Plan Discount Rate 2.90% 3.90% 4.90% Total OPEB Liability $ 8,975,638 $ 8,241,808 $ 7,580,787 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the County's total OPEB liability, as well as what the County's total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1 % Decrease in 1 % Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 4.00% 5.00% 6.00% Total OPEB Liability $ 7,371,294 $ 8,241,808 $ 9,254,989 75 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2022, the County's OPEB expense was $821,062. In addition, the County reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ - $ 2,180,993 Changes in assumptions 481,564 6,446 Total $ 481, 664 $ 2,187,439 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized over 4.45 years as a decrase in OPEB expense as follows: Year Ending September 30 Amount 2023 $ (310,386) 2024 (365,990) 2025 (445,287) 2026 (423,705) Thereafter (160,507) ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Entry Age Actuarial The actuarial assumptions are: Discount rate 3.9% (Based on the 20 year AA municipal bond rate) Healthcare cost trend rate 5% Salary increase 3% New employees None The discount rate was changed from 1.5% to 3.9% based on the 20 year AA municipal bond rate. Mortality rates were based on the Pri-2012 Mortality Fully Generational using Projection Scale MP-2021. Since the most recent valuation, the following changes have been made: The discount rate was changed from 1.5% to 3.9%. SHERIFF'S PLAN DESCRIPTION AND BENEFITS PROVIDED The Sheriff provides post employment healthcare benefits for retirees through a single employer defined benefit plan (Sheriff's OPEB Plan) and can amend the benefit provisions. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. 76 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) Prior to 2010, the Sheriff subsidized approximately 26% of the cost for both single and family healthcare for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. Approximately 22% of retirees receive the subsidy. The Sheriff's OPEB Plan is currently being funded on a pay as you go basis. No trust fund has been established for the plan. The plan does not issue a separate financial report. PARTICIPANT DATA As of September 30, 2022, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 150 Active employees 1,156 Total employees 1,306 TOTAL OPEB LIABILITY The Sheriff's total OPEB liability of $33,128,024 was measured as of September 30, 2022 and was determined by an actuarial valuation as of October 1, 2021. The following table shows the changes in the Sheriff's total OPEB liability for the year ended September 30, 2022. Total OPEB Liability Balance, as of October 1, 2021 $ 28,169,914 Changes Service cost 734,513 Interest on total OPEB liability 422,604 Differences between expected and actual experience 10,708,734 Changes in assumptions or other inputs (5,446,075) Benefit payments (1,461,666) Net changes 4,958,110 Balance, as of September 30, 2022 $ 33,128,024 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current Discount 1 % Increase in Description Discount Rate Rate Discount Rate OPEB Plan Discount Rate 2.30% 3.30% 4.30% Total OPEB Liability $ 35,957,136 $ 33,128,024 $ 30,635,138 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1 % Decrease in 1 % Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 4.00% 5.00% 6.00% Total OPEB Liability $ 30,546,087 $ 33,128,024 $ 36,080,227 77 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2022, the Sheriff's OPEB expense was $2,557,152. In addition, the Sheriff reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ 15,409,795 $ 26,809 Changes in assumptions 2,282,175 5,843,531 Total $ 17,691,970 $ 5,870,340 Amounts reported as deferred inflows and outflows of resources related to OPEB will be recognized over 6.85 years as an increase in OPEB expense: Deferred Year Ending Outflows of September 30 Resources 2023 $ 2,168,307 2024 2,168,307 2025 2,175,577 2026 2,046,602 2027 1,730,488 Thereafter 1,532,349 ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 3.3% (Based on the 20 year AA municipal bond rate) 5% None None Mortality rates were based on the Pri-2012 Mortality Fully Generational using Projection Scale MP-2021 Since the most recent valuation, the following changes have been made: The discount rate was changed from 1.5% to 3.3%. The mortality assumption has been updated from Pri-2012 Mortality Fully Generational using Projection Scale MP-2020 to Pri-2012 Mortality Fully Generational using Projection Scale MP-2021. 78 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) SUMMARY The aggregate amount of total OPEB liability, related deferred outflows of resources and deferred inflows of resources and OPEB expense for the County's postemployment benefits plans are summarized below: County's Sheriff's OPEB Plan OPEB Plan Total Total OPEB liability $ 8,241,808 $ 33,128,024 $ 41,369,832 Deferred outflows of resources related to OPEB 481,564 17,691,970 18,173,534 Deferred inflows of resources related to OPEB 2,187,439 5,870,340 8,057,779 OPEB expense 821,062 2,557,152 3,378,214 NOTE 16 — SIGNIFICANT CONTINGENCIES LITIGATION The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as disclosed here, will not materially affect the financial position of the County. STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. There was no arbitrage liability as of September 30, 2022. HURRICANE IRMA On September 10, 2017, Category 3 Hurricane Irma made landfall in Collier County. The primary impacts of Hurricane Irma were widespread power outages and debris, coastal flooding and beach erosion. The County has spent approximately $108.9 million on recovery efforts and has budgeted an additional $1.1 million in the 2023 fiscal year. In 2022, the County recognized $260,244 in revenue from the Federal Emergency Management Agency (FEMA). At the end of 2022, the County had $8,284,073 in outstanding receivables related to FEMA claims and continues to expect reimbursements from FEMA as projects close out over the next few years. HURRICANE IAN On September 28, 2022, Hurricane Ian made landfall just north of Collier County as a Category 4 storm, bringing significant storm surge to the coastal areas. The financial impact of Hurricane Ian to the County is estimated at $125.2 million, including $65.0 million for debris removal and $25.0 million for an emergency berm along the County beaches to provide storm surge protection for the upcoming hurricane season. The County expects to receive substantial reimbursement from the Federal Emergency Management Agency and insurances. 79 NOTE 17 — SIGNIFICANT COMMITMENTS Collier County has active construction projects as of September 30, 2022. The projects include road construction, governmental facilities and utilities improvements. At year end, the County's significant commitments with contractors include the following: Construction Category Commitments Governmental Activities: Grants and Shared Revenue Physical Environment $ 546,038 Infrastructure Sales Tax General Government 879,970 Transportation 112,757,270 Human Services 2,094,761 Culture and Recreation 1,781,651 Other Governmental Funds General Government 1,066,044 Public Safety 19,436 Physical Environment 11,120,628 Transportation 77,662,243 Culture and Recreation 16,340,374 Business -type Activities: Water and Sewer Utilities 54,914,965 Total $ 279,183,380 Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods or services have been ordered but not received. Encumbrance commitments do not include construction contracts, as they are included as construction commitments. Collier County had the following significant individual encumbrances as of September 30, 2022: Governmental Activities: Bayshore Gateway Community Redevelopment Agency Grants and Shared Revenue Infrastructure Sales Tax Other Governmental Funds Business -type Activities: Water and Sewer Emergency Medical Services Other Enterprise Funds Internal Service Funds Total Category Economic Environment Transportation Economic Environment Human Services Public Safety Physical Environment Transportation General Government Physical Environment Transportation Economic Environment Culture and Recreation Utilities Emergency Medical Services Collier Area Transit Motor Pool Capital Recovery Encumbrance Commitments 600,000 1,912,174 7,602,935 1,212,626 708,806 2,180,003 2,074,411 1,506,432 2,383,883 3,013,358 650,000 3,610,369 11,708,656 1,118,959 3,773,801 1,127,610 $ 45,184,023 NOTE 18 — SUBSEQUENT EVENTS HURRICANE IAN TAX REFUNDS Florida Statutes Section 197.3181 was signed into law on December 16, 2022. This section allows homeowners whose residential improvements were rendered uninhabitable for at least thirty (30) days by Hurricanes Ian or Nicole to apply for a prorated refund of ad valorem taxes. A homeowner who fails to file an application by April 3, 2023, waives their claim for a tax refund under Section 197.3181. As of the date of this report it is not possible to estimate the total financial impact of this law. ISSUANCE OF DEBT On January 17, 2023, the Collier County Water and Sewer District issued the Series 2023 Taxable Water and Sewer Refunding Revenue Bond (Bank Term Loan) in the par amount of $49,945,000. The proceeds of the Series 2023 Bond were put in an escrow to be used to refund all of the outstanding Collier County Water and Sewer Refunding Revenue Bonds, Series 2016. The final maturity of the Series 2023 Bond is July 1, 2036, with a taxable fixed interest rate of 4.15%. On July 1, 2026, the Series 2023 Bond is scheduled to be exchanged for a Series 2026 tax exempt bond paying fixed interest at 3.39%. The refunding, assuming an exchange to a tax exempt Series 2026 Bond, will achieve a net present value savings of 7.31 % on the refunded bonds and an aggregate debt service savings of $4,395,527. The Series 2023 Bond was issued as a direct placement financing, secured with a lien on parity with all outstanding Collier County Water and Sewer District senior lien debt. The refunded Series 2016 Collier County Water and Sewer Refunding Revenue Bonds have a redemption date of July 1, 2026. NOTE 19 — FUND DEFICITS The following fund had a fund balance deficit at September 30, 2022: Fund Amount Amateur Sports Complex $ 1,505,033 The unassigned fund balance deficit in the Amateur Sports Complex fund is the result of advances from other funds made in prior years. County management anticipates that the deficit in this fund will be covered by future years' tourist tax revenue. �-jk 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ Required Supplementary Information COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2022 2021 2020 2019 2018 County's Proportion of the Net Pension Liability 0.785103420% 0.770303194% 0.794941674% 0.797837050% 0.804668214% County's Proportionate Share of the Net Pension Liability County's Covered Payroll * County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll Plan Fiduciary Net Position as a Percentage of the total Pension Liability $292,121,565 $ 58,187,652 $344,539,437 $274,763,972 $242,370,237 $252,964,206 $241,529,826 $234,174,659 $228,455,160 $225,786,565 115.48% 24.09% 147.13% 82.89% 96.40% 78.85% 120.27% 107.34% 82.61 % 84.26% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date, restated for periods 2014 to 2017 pursuant to GASB No. 82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2022 2021 2020 2019 2018 Contractually Required Contribution $ 35,022,631 $ 30,034,061 $ 27,741,964 $ 25,202,730 $ 23,401,059 Contributions in Relation to the Contractually Required Contribution (35,022,631) (30,034,061) (27,741,964) (25,202,730) (23,401,059) Contribution Deficiency (Excess) $ - $ - $ - $ - $ County'sCoveredPayroll- Fiscal Year $261,931,755 $241,604,760 $240,018,783 $230,500,331 $226,283,207 Contributions as a Percentage of Covered Payroll 13.37% 12.43% 11.56% 10.93% 10.34% * Covered Payroll - Fiscal Year consists of pensionable wages calculated forthe respective fiscal year, restated for periods 2014 to 2017 pursuantto GASB No. 82, Pension Issues. SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2022 2021 2020 2019 2018 County's Proportion of the Net Pension Liability 0.693371195% 0.682720614% 0.673478223% 0.683003525% 0.690065185% County's Proportionate Share of the Net Pension Liability County's Covered Payroll * County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll $ 73,439,084 $ 83,745,948 $ 82,230,597 $ 76,421,260 $ 73,037,274 $252,964,206 $241,529,826 $234,174,659 $228,455,160 $225,786,565 29.03% 34.67% 35.12% 33.45% Plan Fiduciary Net Position as a Percentage of the totalPension Liability 4.81 % 3.56% 3.00% 2.63% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 32.35% 2.15% 2022 2021 2020 2019 2018 Contractually Required Contribution $ 4,3 11,241 $ 4,008,775 $ 3,982,772 $ 3,792,652 $ 3,750,4 88 Contributions in Relation to the Contractually Required Contribution (4,341,241) (4,008,775) (3,982,772) (3,792,652) (3,750,438) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - County'sCoveredPayroll- Fiscal Year $261,931,755 $241,604,760 $240,018,783 $230,500,331 $226,283,207 Contributions as a Percentage of Covered Payroll 1.66% 1.66% 1.66% 1.65% 1.66% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. Note: Information is required to be presented for 10years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. 84 2017 2016 2015 2014 0.796720676 % 0.772938545% 0.736106708 % 0.703655077% $ 235,664,630 $ 195,167,590 $ 95,078,054 $ 42,933,306 $ 212,195,163 $ 199,870,915 $ 195,154,275 $ 184,577,284 111.06 % 97.65 % 48.72 % 23.26 % 83.89% 84.88% 92.00% 96.09% 2017 2016 2015 2014 $ 20,299,090 $ 20,563,824 $ 17,830,147 $ 17,287,796 (20,299,090) (20,563,824) (17,830,147) (17,287,796) $ 216,521,253 $ 206,179,415 $ 193,543,352 $ 185,505,694 9.38% 9.97% 9.21 % 9.32% 2017 2016 2015 2014 0.665383863 % 0.645620406 % 0.642983194 % 0.621385755 % $ 71,145,914 $ 75,244,385 $ 65,574,171 $ 58,101,084 $ 212,195,163 $ 199,870,915 $ 195,154,275 $ 184,577,284 33.53% 37.65% 33.60% 31.48% 1.64% 0.97% 0.50% 0.99% 2017 2016 2015 2014 $ 3,593,353 $ 3,415,537 $ 2,614,704 $ 2,131,155 (3,593,353) (3,415,537) (2,614,704) (2,131,155) $ 216,521,253 $ 206,179,415 $ 193,543,352 $ 185,505,694 1.66% 1.66% 1.35% 1.15% 85 COLLIER COUNTY, FLORIDA SCHEDULE OF CHANGES IN THE COLLIER COUNTY TOTAL OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years Board of County Commissioners and Constitutional Officers Total OPEB liability Service Cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending 2022 2021 2020 2019 2018 $ 673,684 $ 609,931 $ 609,998 $ 438,933 $ 491,865 148,910 162,236 190,846 287,048 252,345 (1,534) (588,396) (1,190) - (1,585,700) 74,553 322,360 387,596 (221,309) (494,511) (574,452) (474,429) (674,797) (625,275) (1,259,151) (316,128) 647,585 438,780 (102,374) 9,500,959 9,817,087 9,169,502 8,730,722 8,833,096 $ 8, 441,808 $ 9, 000,959 $ 9, 117,087 $ 9, 669,502 $ 8, 330,722 Covered -employee payroll $ 152,351,768 $ 141,768,412 $ 135,688,734 $ 132,769,448 $ 123,441,030 Total OPEB liability as a percentage of covered employee payroll 5.41% 6.70% 7.24% 6.91 i, 7.07% Notes to the Schedule Changes in Assumptions: Change in the discount rate of 1.5% as of September 30, to 3.9% as of September 30, 2022. Note: Information is required to be presented for 10 years. However, until a full 10 year trend is compiled, the County will present information for only those years for which information is available. Board of County Commissioners and Constitutional Officers Total OPEB liability Service Cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending 2022 2021 2020 2019 2018 $ 734,513 $ 777,037 $ 555,065 $ 485,365 $ 520,082 422,604 448,520 435,838 631,825 503,525 10,708,734 451 5,292,054 - 2,048,462 (5,446,075) 353,427 949,878 2,250,569 (898,977) (1,461,666) (1,329,954) (1,098,451) (1,074,207) (941,061) 4,958,110 249,481 6,134,384 2,293,552 1,232,031 28,169,914 27,920,433 21,786,049 19,492,497 18,260,466 $ 33, 228,024 $ 28, 669,914 $ 27, 220,433 $ 21, 886,049 $ 19, 992,497 Covered -employee payroll $ 95,742,481 $ 87,324,387 $ 83,944,157 $ 81,378,975 $ 80,473,682 Total OPEB liability as a percentage of covered employee payroll 34.60°i 32.26% 33.26% 26.77% 24.22% Notes to the Schedule Changes in Assumptions: Change in the discount rate of 1.5 i, as of September 30, 2021 to 3.3 io as of September 30, 2022. The mortality assumption has been updated from Pri-2012 Mortality Fully Generational Projection Scale MP-2020 to Pri-2012 Mortality Fully Generational Projection Scale MP-2021. Note: Information is required to be presented for 10 years. However, until a full 10 year trend is compiled, the County will present information for only those years for which information is available. 86 2017 $ 464,531 248,849 (8,258) (589,882) 115,240 8,717,856 $ 8,833,096 $121,574,778 7.27% 2017 $ 491,420 502,621 (83,607) (871,353) 39,081 18,221,385 $ 18,260,466 $ 91,192,818 20.02 i 87 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ All, t ... ��'��',/�� ��5 ��, ..}v .� rS''Iq yet �'�.' .. 'M°�p ✓' ik Vl- . r � . +•F iy SY nbining & incil-vi-aue financial Statement: ether Supplement lnfnrmat*ini 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds ROAD DISTRICTS — To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT — To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT — To account for building permit and development fees to support licensing, permitting and inspection services. WATER MANAGEMENT AND POLLUTION CONTROL — To account for taxes levied County -wide to provide water resource management and water pollution control. PELICAN BAY — To account for taxes levied in the Pelican Bay development to provide water resource management and beautification services. STORMWATER UTILITY — To account for the accumulation of resources and expenditures related to the management of facilities and services for drainage and flood protection County -wide. HURRICANE IAN — To account for the accumulation of resources and expenditures related to the recovery from Hurricane Ian. IMPROVEMENT DISTRICTS — To account for taxes levied within municipal service taxing districts to provide for specified improvements and/or the maintenance of such improvements. FIRE CONTROL DISTRICTS — To account for taxes levied within municipal service taxing districts for fire prevention and control. LIGHTING DISTRICT — To account for taxes levied within a municipal service taxing district for street lighting. 911 ENHANCEMENT FEE — To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. TOURIST DEVELOPMENT — To account for the 5% tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP — To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND — To account for moving traffic violation surcharges received to fund the County's intergovernmental radio communications program. STATE COURT ADMINISTRATION — To account for County monies used to fund the operation of the court system. CONFISCATED PROPERTY — To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS — To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE — To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER — To account for the acquisition and management of environmentally sensitive lands. COURT INFORMATION TECHNOLOGY — To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES — To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION — To account for fund accumulation to meet the educational goals of the Collier County OF/IFAS extension. COURT FACILITIES FEE — To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING — To account for fees to be used to provide for affordable housing related projects. ECONOMIC AND INNOVATION ZONES — To account for the accumulation of resources for economic development in accordance with an approved tax increment financing plan. OTHER COURT SPECIAL REVENUE FUNDS — To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for modernization. 91 OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS — To account for the accumulation of resources for the Sheriff's Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate welfare, crime prevention and training programs. OTHER SPECIAL REVENUE FUNDS — To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Adoption Awareness Teen Court Animal Control Public Library Law Library Freedom Memorial County Drug Abuse Permanent Funds Euclid and Lakeland Assessment Legal Aid Society Law Enforcement Training Domestic Violence Juvenile Assessment Center Driver Education Crime Prevention RESOURCE RECOVERY PARK ENDOWMENT — To account for the permanent endowment established for the benefit of the County's land conservation program. PEPPER RANCH CONSERVATION BANK — To account for the permanent endowment established for the benefit of establishing and maintaining a panther habitat land conservation bank. Debt Service Funds POOLED COMMERCIAL PAPER PROGRAM — To account for the accumulation of resources and payment of interest and principal on variable rate debt incurred for capital improvements within Pelican Bay. GAS TAX REFUNDING REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2012 Gas Tax Refunding Revenue Bonds and Series 2014 Gas Tax Refunding Revenue Bond (bank term loan) incurred in the refinancing of Gas Tax Revenue Bonds. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2007 Forest Lakes Limited General Obligation Bonds debt incurred to finance the cost of certain roadway lighting, drainage and restoration in the Forest Lakes Municipal Services Taxing Unit. SPECIAL OBLIGATION REFUNDING REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2020A and 2020B (Taxable) Special Obligation Revenue Bonds and the Series 2017 Special Obligation Refunding Revenue Note (bank term loan) incurred in the refinancing of variable rate commercial paper loans and revenue bonds. Also used to account for the accumulation of resources and payment of interest and principal on the Series 2019 Taxable Special Obligation Revenue Note (bank term loan) used to purchase the Golden Gate Golf Course and the Series 2022A and 2022B Special Obligation Revenue Notes (bank term loans) used to refinance the Series 2011 and 2013 Special Obligation Refunding Revenue Bonds. TOURIST DEVELOPMENT TAX REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2018 Tourist Development Tax Revenue Bonds incurred to pay the cost of the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. Capital Project Funds COUNTY -WIDE CAPITAL IMPROVEMENTS — To account for capital projects, designated by the Board of County Commissioners, to be funded by a County -wide one third mil levy. PARKS IMPROVEMENTS — To account for the expenditure of funds raised specifically for improvements to parks. Projects include land acquisition, design, construction and equipping of certain Community Park sites in the unincorporated areas of the County. Primary funding is ad valorem taxes. COUNTY -WIDE LIBRARY IMPACT FEES — To account for the receipt and expenditure of library impact fees collected from all qualifying new construction. These impact fees must be used for acquisition of County -wide library facilities. 92 CORRECTIONAL FACILITIES IMPACT FEES — To account for the receipt and expenditure of correctional facilities impact fees collected from all qualifying new construction. These impact fees must be used for the acquisition/construction of correctional facilities. EMERGENCY MEDICAL SERVICES IMPACT FEES — To account for the receipt and expenditure of emergency medical service impact fees collected from all qualifying new construction. These impact fees must be used for acquisition/construction of emergency service facilities. WATER MANAGEMENT — To account for the receipt and expenditure of funds raised specifically for water management purposes. Primary funding is from ad valorem taxes and bond proceeds. PELICAN BAY CAPITAL IMPROVEMENTS — To account for the receipt and expenditure of funds raised specifically for water management purposes and the restoration of the Clam Bay estuary in the Pelican Bay Development. Primary funding is a capital special assessment and commercial paper proceeds. PARKS IMPACT DISTRICTS — To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities. ROAD IMPACT DISTRICTS — To account for the receipt and expenditure of road impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of roads. ROAD CONSTRUCTION — To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to, right- of-way acquisition, design and construction of various transportation improvements. GOVERNMENT FACILITIES IMPACT FEES — To account for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition and construction of government facilities. LAW ENFORCEMENT IMPACT FEES — To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition and construction of law enforcement related facilities. ALL TERRAIN VEHICLE PARK — To account for the receipt and expenditure of funds for the creation of an All Terrain Vehicle park. AMATEUR SPORTS COMPLEX — To account for major capital expenditures related to the new Amateur Sports Complex. Primary funding is bonds proceeds and advances from other tourist tax funds. OTHER CAPITAL PROJECTS — To account for major capital expenditures financed from resources other than proceeds from the issuance of long-term debt and the one third mil levy. 93 ASSETS Cash and investments Receivables: Interest Trade, net Notes Impact fee Special assessments Leases Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Total assets Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds Total liabilities Deferred inflows of resources: Unavailable revenue Related to leases Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2022 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Pelican Stormwater Hurricane Districts Area MSTD Development Control Bay Utility Ian $ 2,723,282 $ 18,486,195 $ 47,444,441 $ 1,578,098 $ 2,547,542 $ 3,019,131 $ 999,881 5,138 29,862 57,273 2,459 4,301 4,624 12 6,810 90,461 2,958 - - - - 19,098 5,703,948 - - 71,205 3,812 529,034 2 31,681 35,623 3,449 945,019 390,794 37,780 8 1,170,909 33,869 - 150,994 114,980 - - 1,609,689 - - - $ 3,932,498 $ 25,818,388 $ 49,505,157 $ 1,801,012 $ 2,658,679 $ 3,138,735 $ 999,893 $ 246,697 $ 1,062,466 $ 274,152 $ 771,201 809,984 1,112,936 - 10,539 11,509 600 3,623 3,377,615 - 5,251 - 23,578 4,560,229 97,356 $ 55,653 $ 202,001 $ 608,773 96,200 105,280 118,655 - - - 5,124 187 - 1,018,498 1,915,441 9,336,441 193,556 161,120 325,780 608,773 18,558 5,233,779 69,759 18,558 5,233,779 69,759 - 1,170,909 33,869 - 150,994 - 114,980 1,724,533 - 40,168,716 - - - - 18,635,299 - 1,456,462 2,427,800 - - - - - 2,697,975 391,120 2,895,442 18,669,168 40,168,716 1,607,456 2,427,800 2,812,955 391,120 $ 3,932,498 $ 25,818,388 $ 49, 005,157 $ 1, 001,012 $ 2, 558,679 $ 3, 338,735 $ 999,893 94 Special Revenue Funds State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts District Fee Development Partnership IRCP Fund Administration $ 17,415,441 $ 1,013,944 $ 774,423 $ 1,327,373 $ 94,980,034 $ 5,533,219 $ 298,654 $ 685,107 22,349 1,253 1,114 2,859 115,141 5,780 623 1,001 - - - - 1,822,525 7,424 - - - 243,407 - - - - 462,308 - 55,370 13,494 7,624 1,964,987 55,652 57,301 - - - 3,488,759 4,680 - - - - - 17,200,000 - - - $ 17,493,160 $ 1,028,691 $ 783,161 $ 1,330,232 $ 119,571,446 $ 5,789,830 $ 821,917 $ 743,409 $ 623,182 $ $ $ 27,768 $ 1,374,584 $ 363,199 $ 15,094 $ 12,184 27,018 - 171,436 12,361 6,369 95,697 3,396 243,525 582 - - - - 562,342 - 1,622 5,169 - 84,718 - 18,767 73,129 268,100 - - - - - 816,612 830,442 271,293 1,566,991 375,560 21,463 107,881 427,357 427,357 - - - 1,058,939 118,004,455 5,414,270 - - 16,676,548 198,249 783,161 - - - 373,097 635,528 16,676,548 198,249 783,161 1,058,939 118,004,455 5,414,270 373,097 635,528 $ 17,493,160 $ 1,028,691 $ 783,161 $ 1,330,232 $ 1 , 99571,446 $ 5,789,830 $ 821,917 $ 743,409 95 ASSETS Cash and investments Receivables: Interest Trade, net Notes Impact fee Special assessments Leases Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Total assets Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds Total liabilities Deferred inflows of resources: Unavailable revenue Related to leases Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2022 Special Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services $ 491,410 $ 2,059,582 $ 1,104,734 $ 47,052,641 $ 1,733,678 $ 1,500,230 610 2,423 1,287 58,388 2,102 - - - 33,242 - - 203,440 57,682 - 80 - 21,189 194,793 $ 492,020 $ 2,256,798 $ 1,139,263 $ 47,314,549 $ 1,793,462 $ 1, 221,419 $ $ $ $ 55,991 $ 8,458 $ 1,073 13,369 36,060 6,492 219,196 7,000 91 312 - 295,230 - - - 158,245 660,423 - 345,497 142,300 - 7,000 142,300 13,460 92,363 173,195 1,521,419 485,020 2,114,498 - 47,222,186 1,620,267 - - 1,125,803 - - 485,020 2,114,498 1,125,803 47,222,186 1,620,267 $ 492,020 $ 2,256,798 $ 1,139,263 $ 47,314,549 $ 1,793,462 $ 1,521,419 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Special Revenue Revenue Extension Fee Housing Zones Funds Revenue Funds Funds Funds $ 14,413 $ 8,538,749 $ 834,257 $ 5,287,320 $ 8,578,762 $ 4,773,413 $ 3,761,133 $ 284,557,087 21 10,209 1,066 6,431 - 1,690 4,966 342,982 - - - - 48,214 - 2,011,634 - 243,407 - - - 6,256,559 77,204 77,566 23,092 3,193,564 - - 332 4,892,090 194,793 1,470,752 18,809,689 $ 14,434 $ 8,626,162 $ 835,323 $ 5,293,751 $ 8,578,762 $ 4900,883 $ 3,7 99,523 $ 321,972,557 $ $ 5,793 $ - $ - $ 7,080 $ 8,945 $ 78,559 $ 5,129,008 - 9,151 22,271 - 2,848 3,636,524 - - 117,307 - 694,615 - 58 4,764,715 - 350,748 4,731,276 103,485 341,229 5,793 9,151 29,351 126,252 81,465 19,751,600 5,749,453 5,749,453 - - - - - 1,470,752 14,434 8,620,369 - - 8,549,411 4,774,631 219,165 239,990,894 - - 826,172 5,293,751 - - - 48,431,870 - - 3,488,893 6,577,988 14,434 8,620,369 826,172 5,293,751 8,549,411 4,774,631 3,708,058 296,471,504 $ 14,434 $ 8,626,162 $ 835,323 $ 5,293,751 $ 8,578,762 $ 4,900,883 $ 3,789,523 $ 321,972,557 97 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2022 Permanent Funds Debt Service Funds Forest Lakes Resource Pepper Pooled Limited Recovery Ranch Total Commercial Gas Tax General Park Conservation Permanent Paper Refunding Obligation Endowment Bank Funds Program Revenue Bonds Bonds ASSETS Cash and investments $ 1,692,339 $ 3,805,022 $ 5,497,361 $ 5 $ 994,095 $ 36,401 Receivables: Interest 2,071 4,615 6,686 - 1,145 44 Trade, net - - - - - Notes Impact fee Special assessments Leases Due from other funds - - Due from other governments 1,438 343,159 Deposits - - Inventoryforresale Inventory - Advances to other funds - - - - - Total assets $ 1,694,410 $ 3,809,637 $ 5,504,047 $ 1,443 $ 1,338,399 $ 36,445 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable $ $ $ $ $ $ Wages payable Due to other funds Due to other governments 669 669 Unearned revenues - - Refundable deposits Retainage payable Advances from other funds Total liabilities 669 669 Deferred inflows of resources: Unavailable revenue - - Related to leases Total deferred inflows of resources - - - Fund balances: Nonspendable 1,582,800 3,940,000 5,522,800 - - - Restricted 111,610 - 111,610 1,443 1,338,399 36,445 Committed - - - - - Assigned Unassigned - (131,032) (131,032) - - - Total fund balances 1,694,410 3,808,968 5,503,378 1,443 1,338,399 36,445 Total liabilities, deferred inflows of resources and fund balances $ 1,694,410 $ 3,809,637 $ 5,504,047 $ 1,443 $ 1,338,399 $ 36,445 See accompanying independent auditors' report 98 Debt Service Funds Capital Project Funds Tourist Special Development Total Emergency Obligation Tax Debt County -Wide County -Wide Correctional M dical Refunding Revenue Service Capital Parks Library Facilities Services Revenue Bonds Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ 2,098,396 $ 2,386,749 $ 5,515,646 $ 50,232,560 $ 24,629,082 $ 545,404 $ 1,987,210 $ 634,605 2,224 2,827 6,240 59,564 32,323 552 2,214 804 - - - 67,253 - - - - 227,442 157,734 77,925 - 8,077 2,153 - - - 344,597 2,777,597 140,264 17,990 49,151 13,749 $ 2,100,620 $ 2,389,576 $ 5,866,483 $ 53,145,051 $ 24,803,822 $ 791,388 $ 2,196,309 $ 727,083 $ $ $ $ 591,938 $ 661,006 $ $ $ 224,791 180,939 239,848 997,668 900,854 - - - - - 227,442 157,734 77,925 227,442 157,734 77,925 2,100,620 2,389,576 5,866,483 12,795,279 563,946 2,038,575 649,158 52,147,383 11,107,689 2,100,620 2,389,576 5,866,483 52,147,383 23,902,968 563,946 2,038,575 649,158 $ 2,100,620 $ 2,389,576 $ 5,866,483 $ 53,145,051 $ 24,803,822 $ 791,388 $ 2,196,309 $ 727,083 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2022 Capital Project Funds Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees ASSETS Cash and investments $ 69,593,580 $ 6,873,801 $ 49,177,714 $ 112,730,049 $ 47,436,445 $ 3,818,832 Receivables: Interest 86,796 9,467 56,977 134,721 58,581 4,522 Trade, net - - - - - - Notes - - - Impact fee 1,746,924 4,528,049 355,994 Special assessments - - - Leases - Due from other funds 5,719 16,340 - - 973,121 - Due from other governments 2,356 37,235 146,180 822,987 3,351,265 90,770 Deposits - - 1,250 - - - inventory for resale - Inventory - Advances to other funds - - - - - Total assets $ 69,688,451 $ 6,936,843 $ 51,129,045 $ 118,215,806 $ 51,819,412 $ 4,270,118 Liabilities, Deferred Inflows of Resources And Fund Balances Liabilities: Accounts payable $ 1,563,132 $ 461,516 $ 87,294 $ 1,158,784 $ 880,886 $ Wages payable - - - - - Due to other funds - - 342,312 Due to other governments 20,412 159,382 - Unearned revenues - - - - Refundable deposits - - - 22,500 81,360 Retainage payable 426,328 117,946 159,390 567,767 160,593 Advances from other funds - - - - Total liabilities 2,009,872 738,844 246,684 1,749,051 1,465,151 - Deferred inflows of resources: Unavailable revenue - - 1,746,924 4,528,049 - 355,994 Related to leases - - - Total deferred inflows of resources 1,746,924 4,528,049 355,994 Fund balances: Nonspendable - - - - Restricted 47,572,070 673,373 49,135,437 111,938,706 50,354,261 3,914,124 Committed - - - - - - Assigned 20,106,509 5,524,626 Unassigned - - - - - Total fund balances 67,678,579 6,197,999 49,135,437 111,938,706 50,354,261 3,914,124 Total liabilities, deferred inflows of resources and fund balances $ 69,688,451 $ 6,936,843 $ 51,129,045 $ 118,215,806 $ 51,819,412 $ 4,270,118 See accompanying independent auditors' report 100 Capital Project Funds Total Total Law All Terrain Amateur Other Capital Nonmajor Enforcement Vehicle Sports Capital Project Governmental Impact Fees Park Complex Projects Funds Funds $ 2,953,749 $ 3,039,711 $ 23,256,782 $ 12,077,143 $ 408,986,667 $ 704,556,761 3,322 3,709 29,435 14,838 497,825 853,733 - - - - 67,253 2,078,887 - - 243,407 177,387 - 7,271,455 7,271,455 - 1,405 1,405 1,405 - - 6,256,559 176 1,005,586 4,199,150 20,378 7,469,922 12,706,609 - 1,250 1,250 - 194,793 - - 1,470,752 - - - 73,129 73,129 18,882,818 $ 3,134,458 $ 3,043,420 $ 23,286,217 $ 12,187,069 $ 425,374,492 $ 758,717,579 $ $ $ 3,626,595 $ 95,547 $ 9,126,698 $ 14,255,706 - - - 3,636,524 567,103 1,261,718 360,733 5,126,117 - 350,748 - 103,860 4,835,136 3,964,655 - 5,636,527 5,740,012 17,200,000 9,264 17,209,264 17,550,493 24,791,250 104,811 33,004,185 52,756,454 177,387 7,271,455 7,271,455 - - 5,749,453 177,387 7,271,455 13,020,908 - - - 6,993,552 2,957,071 109,283 282,701,283 528,670,270 - - - - 48,431,870 3,043,420 11,972,975 103,902,602 110,480,590 - - (1,505,033) - (1,505,033) (1,636,065) 2,957,071 3,043,420 (1,505,033) 12,082,258 385,098,852 692,940,217 $ 3,134,458 $ 3,043,420 $ 23,286,217 $ 12,187,069 $ 425,374,492 $ 758,717,579 101 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Principal Interest Fiscal charges Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year See accompanying independent auditors' report Revenue Funds Water Management Road Unincorporated Community and Pollution Pelican Stormwater Hurricane Districts Area MSTD Development Control Bay Utility Ian $ $ 54,796,171 $ - $ 2,955,114 $ 635,608 $ $ 38,183 30,837,179 - - 2,124,159 - 3,706 - - 62,500 322,548 2,961,747 4,043,641 294,198 363 - - 327,898 - - - (159,960) (1,231,926) (2,100,386) (111,894) (196,302) (159,056) (107) - - - 3,894,957 - - 56,447 301,648 53,640 55,882 4,622 - 2,343,194 57,193,721 32,837,780 3,137,418 4,390,508 (91,934) (107) 6,929,283 9,436,156 4,462,879 22,119,237 - - - - 688,986 1,452,887 2,864,156 1,082,185 6,612,425 608,773 23,017,839 14,004,527 389,951 - 3,480,981 - - - 76,469 - - 14,663,595 161 73,476 139 8,100 113,555 34,442 - 8,073 641,742 30,039 - 23,131,694 40,860,181 33,398,231 2,872,229 5,286,484 6,642,464 608,773 (20,788,500) 16,333,540 (560,451) 265,189 (895,976) (6,734,398) (608,880) - - - - 591,380 - 57,717 2,004 1,006 377 12,950 86,200 276,894 171,454 647 - - - - 21,285,500 3,426,362 945,102 72,889 69,704 7,706,100 1,000,000 (1,277,600) (18,274,752) (2,336,500) (633,701) (632,390) (22,600) - 20,342,511 (14,674,932) (1,389,745) (560,435) 41,644 7,769,700 1,000,000 (445,989) 1,658,608 (1,950,196) (295,246) (854,332) 1,035,302 391,120 3,341,431 17,010,560 42,118,912 1,902,702 3,282,132 1,777,653 - $ 2,895,442 $ 18,669,168 $40,168,716 $ 1,607,456 $ 2,427,800 $ 2,812,955 $ 391,120 102 Revenue Funds Improvement Districts Fire Control Districts Lighting District 911 Enhancement Fee Tourist Development State Housing Initiative Partnership 800 MHz IRCP Fund State Court Administration $ 6,058,093 $ 1,459,702 $ 860,685 $ $ 47,470,485 $ $ $ - 2,224,092 3,489,914 4,158,567 260,677 - 1,023,362 - 377,465 178,775 - - - 690,007 (861,478) (51,797) (43,242) (95,730) (3,987,841) (183,504) (10,842) (30,086) 1,084,812 - 84,120 - 144,186 495,793 149,646 - 6,542,104 1,407,905 901,563 2,128,362 48,140,106 4,470,856 516,269 838,696 - - - 1,243,385 - 1,962,102 1,961,213 - 1,182,838 1,481,524 1,528,787 - - - 4,014,101 - - 1,385,905 700,577 - - - - 1,616,249 989,544 16,119,644 - 28,436 350,641 671 1,266 44,199 1,652,065 - - 929,981 6,769,933 - - - 5,556,972 1,991,804 700,577 2,891,194 26,903,678 1,616,249 1,577,678 2,724,909 985,132 (583,899) 200,986 (762,832) 21,236,428 2,854,607 (1,061,409) (1,886,213) - 9,253 50,484 - - - - - 636,180 578,609 7,407 1,382,900 1,166,400 2,418,900 (748,777) (43,516) (24,521) (7,450,710) (31,571) - (201,700) (62,113) 535,093 (17,114) (6,058,557) (31,571) 1,166,400 2,217,200 923,019 (48,806) 183,872 (762,832) 15,177,871 2,823,036 104,991 330,987 15,753,529 247,055 599,289 1,821,771 102,826,584 2,591,234 268,106 304,541 $ 16,676,548 $ 198,249 $ 783,161 $ 1,058,939 $ 118,004,455 $ 5,414,270 $ 373,097 $ 635,528 103 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Special Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services Revenues: Taxes $ $ $ 125,342 $ 25,203,908 $ $ Licenses, permits and impact fees - - Intergovernmental 898 - 553,301 Charges for services 100,000 54 1,164,028 7,458,991 Fines and forfeitures - - - - Interest earnings (22,926) (66,693) (49,000) (1,982,372) (74,576) 27,263 Special assessments - - - Miscellaneous 1,258,489 - 301,913 - - Total revenues (22,926) 1,191,796 177,240 23,523,503 1,089,452 8,039,555 Expenditures: Current: General government - - - - 904,784 8,039,555 Public safety 12,000 - - 16,780 - Physical environment - 281,306 1,128,328 - Transportation Economic environment - - - Human services - 89,631 Culture and recreation 3,517 - Debt service Principal - Interest Fiscal charges - - Capital outlay - 910,964 17,167 - Total expenditures 12,000 3,517 281,306 2,039,292 1,028,362 8,039,555 Excess (deficit) of revenues over (under) expenditures (34,926) 1,188,279 (104,066) 21,484,211 61,090 - Other financing sources (uses): Refunding loans issued - - - Loansissued Discount on refunding loans issued Payment to refunding escrow Leases - Sale of capital assets 1,125 Insurance proceeds - - Transfers in 202,857 Transfers out (547,678) - Total other financing sources (uses) - (344,821) 1,125 Net change in fund balances (34,926) 1,188,279 (104,066) 21,139,390 62,215 Fund balances at beginning of year 519,946 926,219 1,229,869 26,082,796 1,558,052 Fund balances at end of year $ 485,0 00 $ 2,114,498 $ 1,125,803 $ 47,222,186 $ 1,620,267 $ See accompanying independent auditors' report 104 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Special Revenue Revenue Extension Fee Housing Zone Funds Revenue Funds Funds Funds $ $ $ $ 2,236,200 $ $ $ - $ 141,801,308 - 51,058 30,926,420 - 12,617,137 7,952 1,477,643 1,133,639 278,441 21,083,524 - 1,027,832 - 89,209 46,640 2,181,586 (1,072) (370,012) (40,888) (224,242) 55,351 (62,195) (237,835) (12,273,348) - - 9,327,891 13,222,848 40 175,989 4,167,227 6,880 657,820 (40,848) 2,011,958 1,532,994 1,160,653 9,642,184 213,726,702 138,949 155,709 - 156,502 27,004,323 - - - 615,121 162,800 33,976,494 34,724 - - 20,296,658 - - 42,979,780 196,388 1,889,106 - 7,334,291 7,423,922 40,865 31,817,165 - 452,714 54,375 - - - - - - 11,107,961 34,724 138,949 196,388 - 155,709 615,121 7,694,458 177,002,498 (27,844) 518,871 (237,236) 2,011,958 1,377,285 545,532 1,947,726 36,724,204 - 591,380 78 170,710 - - 499,479 223,400 202,000 41,324,310 - - (32,226,016) - 223,400 - - - 202,078 10,359,863 (27,844) 518,871 (13,836) 2,011,958 1,377,285 545,532 2,149,804 47,084,067 42,278 8,101,498 840,008 3,281,793 7,172,126 4,229,099 1,558,254 249,387,437 $ 14,434 $ 8,620,369 $ 826,172 $ 5,293,751 $ 8,549,411 $ 4,774,631 $ 3,708,058 $ 296,471,504 105 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Permanent Funds Debt Service Funds Pooled Resource Pepper Ranch Total Commercial Gas Tax Forest Lakes Recovery Park Conservation Permanent Paper Refunding Limited General Endowment Bank Funds Program Revenue Bonds Obligation Bonds Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental 2,110,817 Charges for services - Fines and forfeitures Interest earnings (78,312) (172,232) (250,544) (12) (59,332) (1,602) Special assessments - - - Miscellaneous 41,200 41,200 - - Total revenues (78,312) (131,032) (209,344) (12) 2,051,485 (1,602) Expenditures: Current: General government - - Public safety - - Physical environment 33,823 33,823 Transportation - - Economic environment Human services Culture and recreation - Debt service Principal - 11,875,000 Interest 6,300 1,412,620 Fiscal charges 750 1,500 Capital outlay - - - Total expenditures 33,823 33,823 7,050 13,289,120 Excess (deficit) of revenues over (under) expenditures (112,135) (131,032) (243,167) (7,062) (11,237,635) (1,602) Other financing sources (uses): Refunding loans issued - Loans issued 1,460 Discount on refunding loans issued - Payment to refunding escrow Leases Sale of capital assets Insurance proceeds - - Transfers in 6,175 11,300,000 Transfers out (15,700) - Total other financing sources (uses) (8,065) 11,300,000 Net change in fund balances (112,135) (131,032) (243,167) (15,127) 62,365 (1,602) Fund balances at beginning of year 1,806,545 3,940,000 5,746,545 16,570 1,276,034 38,047 Fund balances at end of year $ 1,694, 110 $ 3,808,968 $ 5, 003,378 $ 1,443 $ 1,338,399 $ 36,445 See accompanying independent auditors' report 106 Debt Service Funds Capital Project Funds Special Tourist Total Emergency Obligation Development Debt County -Wide County -Wide Correctional Medical Refunding Tax Service Capital Parks Library Facilities Services Revenue Bonds Revenue Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees - 587,311 1,230,360 2,035,812 574,701 2,110,817 142 - - - (70,871) (66,020) (197,837) (1,928,357) (1,275,060) (25,603) (67,590) (41,735) - 67,253 64 - - - (70,871) (66,020) 1,912,980 (1,861,104) (687,543) 1,204,757 1,968,222 532,966 3,766,895 - - 129,305 6,834 3,171 34,287 - - 344,146 - - - - - 2,627,184 14,798,000 1,080,000 27,753,000 - 9,354,401 2,638,000 13,411,321 166,449 2,275 170,974 - - - - - - 1,503,186 6,431,022 - 18,266 24,318,850 3,720,275 41,335,295 5,777,819 9,058,206 6,834 21,437 (24,389,721) (3,786,295) (39,422,315) (7,638,923) (9,745,749) 1,204,757 1,961,388 511,529 108,425,000 108,425,000 - 1,460 (188,900) (188,900) (108,043,685) (108,043,685) - 41,150 - - 51,350 84,078 24,574,200 3,217,100 39,097,475 32,023,900 6,767,352 - - (15,700) (8,681,039) (1,960,129) (1,758,100) (2,079,900) (1,456,500) 24,766,615 3,217,100 39,275,650 23,394,211 4,932,451 (1,758,100) (2,079,900) (1,456,500) 376,894 (569,195) (146,665) 15,755,288 (4,813,298) (553,343) (118,512) (944,971) 1,723,726 2,958,771 6,013,148 36,392,095 28,716,266 1,117,289 2,157,087 1,594,129 $ 2,100,620 $ 2,389,576 $ 5,866,483 $ 52,147,383 $ 23,902,968 $ 563,946 $ 2,038,575 $ 649,158 107 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Capital Project Funds Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Principal Interest Fiscal charges Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year See accompanying independent auditors' report Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees $ $ $ - $ - $ 17,242,504 $ 13,616,870 31,793,220 - 3,781,504 - - 4,841,578 - 19,896 (3,196,637) (360,412) (1,977,676) (4,840,259) (2,384,304) (141,248) 2,005,124 - - - 5 1,167,704 - (3,196,637) 1,644,712 11,639,194 26,952,966 20,887,378 3,640,256 - - - - 26,701 3,071,763 690,955 - - - - 1,009,851 14,716,147 8,431 8,531,407 3,839,731 2,787,420 16,356,362 5,277,574 - 11,603,170 4,530,686 2,795,851 17,366,213 19,993,721 26,701 (14,799,807) (2,885,974) 8,843,343 9,586,753 893,657 3,613,555 998,540 201 99,500 60,865 6 11,919,800 976,340 11,817,300 1,832,000 (211,196) (105,580) (3,710,500) (3,695,777) (18,332,599) (5,595,500) 11,708,604 1,869,300 (3,710,299) (3,596,277) (6,454,434) (3,763,494) (3,091,203) (1,016,674) 5,133,044 5,990,476 (5,560,777) (149,939) 70,769,782 7,214,673 44,002,393 105,948,230 55,915,038 4,064,063 $ 67,678,579 $ 6,197,999 $ 49,135,437 $ 111,938,706 $ 50,354,261 $ 3,914,124 108 Capital Project Funds Total Total Law All Terrain Amateur Other Capital Nonmajor Enforcement Vehicle Sports Capital Project Governmental Impact Fees Park Complex Projects Funds Funds $ $ $ $ 14,085 $ 17,256,589 $ 159,057,897 2,261,853 19,474 55,901,105 86,827,525 - 123 4,841,843 19,569,797 2,000 21,896 21,105,420 - - 2,181,586 (117,992) (138,893) (1,198,873) (541,431) (18,236,070) (30,957,799) 2,005,124 15,227,972 1,235,026 5,443,453 2,143,861 (138,893) (1,198,873) (505,749) 63,025,513 278,455,851 - 757,757 4,551,353 31,555,676 3,868 - 143,178 34,119,672 - 3,797,005 24,127,486 15,725,998 58,705,778 - 1,889,106 344,146 7,768,068 1,400 93,489 162,911 2,893,415 34,710,580 28,205,714 13,465,696 - - - 170,974 16,958,070 230,514 61,933,552 73,041,513 3,868 1,400 17,051,559 1,151,182 89,388,647 307,760,263 2,139,993 (140,293) (18,250,432) (1,656,931) (26,363,134) (29,304,412) - 108,425,000 998,540 1,000,000 - (188,900) (108,043,685) 591,380 - 201,722 372,432 - 3,560 138,988 638,467 11,459,377 2,472,176 79,268,245 159,690,030 (1,835,300) - (68,378) (49,490,498) (81,732,214) (1,835,300) 11,459,377 2,407,358 31,116,997 80,752,510 304,693 (140,293) (6,791,055) 750,427 4,753,863 51,448,098 2,652,378 3,183,713 5,286,022 11,331,831 380,344,989 641,492,119 $ 2, 557,071 $ 3,043,420 $ (1,505,0331 $ 12,082,258 $ 385,098,852 $ 692,940,217 109 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Infrastructure Sales Tax (Major Fund) Road Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 87,538,400 $ 120,375,618 $ 32,837,218 $ $ $ 2,004,900 2,124,159 119,259 202,200 322,548 120,348 600,000 1,537,684 937,684 25,000 30,947 5,947 - - 34,841 56,447 21,606 88,138,400 121,913,302 33,774,902 2,266,941 2,534,101 267,160 24,244,562 23,294,689 949,873 - - - 300 300 - 254,242,653 31,656,065 222,586,588 190,176 113,555 76,621 254,242,653 31,656,065 222,586,588 24,435,038 23,408,544 1,026,494 (166,104,253) 90,257,237 256,361,490 (22,168,097) (20,874,443) 1,293,654 - 57,717 57,717 172,171 276,894 104,723 - 21,285,500 21,285,500 - (4,913,824) 4,913,824 (1,277,600) (1,277,600) - (4,913,824) 4,913,824 20,180,071 20,342,511 162,440 (171,018,077) 90,257,237 261,275,314 (1,988,026) (531,932) 1,456,094 244,921,249 193,740,991 (51,180,258) 2,110,826 3,341,431 1,230,605 $ 73,903,172 $ 283,998,228 $ 210,095,056 $ 122,800 $ 2,809,499 $ 2,686,699 Reconciliation: Net change in fund balance, budgetary basis $ 90,257,237 $ (531,932) Change in fair value of investments (11,294,677) (190,907) Change in inventory 276,850 Interfund transfers in - Interfund transfers out Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ 78,962,560 $ (445,989) See accompanying independent auditors' report 110 Unincorporated Area MSTD (Budgetary Basis) Budget Actual Variance $ 56,304,500 $ 54,796,171 $ (1,508,329) 23,300 38,183 14,883 2,686,700 2,961,747 275,047 202,800 327,898 125,098 145,000 330,747 185,747 281,300 301,648 20,348 59,643,600 58,756,394 (887,206) 8,201,838 6,929,283 1,272,555 4,830,700 4,462,879 367,821 867,088 688,986 178,102 19,757,340 14,009,456 5,747,884 90,200 76,469 13,731 15,699,390 14,663,595 1,035,795 1,143,045 34,442 1,108,603 50,589,601 40,865,110 9,724,491 9,053,999 17,891,284 8,837,285 - 2,004 2,004 50,000 171,454 121,454 13,696,300 13,917,243 220,943 (28,750,160) (28,625,552) 124,608 (15,003,860) (14,534,851) 469,009 (5,949,861) 3,356,433 9,306,294 13,182,851 17,010,559 3,827,708 $ 7,232,990 $ 20,366,992 $ 13,134,002 $ 3,356,433 (1,562,673) 4,929 10,350,800 (10,350,800) (140,081) $ 1,658,608 Community Development (Budgetary Basis) Budget Actual Variance 24,971,000 30,837,179 5,866,179 - 3,706 3,706 3,149,200 4,043,641 894,441 182,000 336,194 154,194 50,100 53,640 3,540 28,352,300 35,274,360 6,922,060 10,933,259 9,436,156 1,497,103 26,191,443 22,119,237 4,072,206 1,519,800 1,452,887 66,913 399,000 389,951 9,049 417,500 417,500 39,461,002 33,398,231 6,062,771 (11,108,702) 1,876,129 12,984,831 1,006 1,006 - 647 647 1,590,800 1,468,202 (122,598) (2,459,100) (2,336,500) 122,600 (868,300) (866,645) 1,655 (11,977,002) 1,009,484 12,986,486 33,717,702 42,118,912 8,401,210 $ 21,740,700 $ 43,128,396 $ 21,387,696 $ 1,009,484 (2,436,580) (523,100) $ (1,950,196) 111 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Water Management and Pollution Control Pelican Bay (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 3,069,300 $ 2,955,114 $ (114,186) $ 660,900 $ 635,608 $ (25,292) Licenses, permits and impact fees - - - - Intergovernmental - - - - - Charges for services 186,500 294,198 107,698 363 363 Fines and forfeitures - - - - - - Interest earnings 6,000 16,365 10,365 26,700 30,012 3,312 Special assessments - - - 3,971,000 3,894,957 (76,043) Miscellaneous - - 54,200 55,882 1,682 Total revenues 3,261,800 3,265,677 3,877 4,712,800 4,616,822 (95,978) Expenditures: Current: General government Public safety - - - - - - Physical environment 3,329,333 2,818,789 510,544 1,161,276 1,082,185 79,091 Transportation - - - 3,607,928 3,480,981 126,947 Economic environment - - - Human services Culture and recreation - - - Debt service - - - 81,700 81,576 124 Capital outlay 74,102 8,073 66,029 323,187 641,742 (318,555) Total expenditures 3,403,435 2,826,862 576,573 5,174,091 5,286,484 (112,393) Excess (deficit) of revenues over (under) expenditures (141,635) 438,815 580,450 (461,291) (669,662) (208,371) Other financing sources (uses): Refunding loans issued - - Loansissued Discount on refunding loans issued Payment to refunding escrow - - Leases - - 591,380 591,380 Sale of capital assets 377 377 12,950 12,950 Insurance proceeds - - - - - - Transfers in 43,300 72,889 29,589 34,100 69,704 35,604 Transfers out (644,000) (633,701) 10,299 (714,400) (632,390) 82,010 Total other financing sources (uses) (600,700) (560,435) 40,265 (680,300) 41,644 721,944 Net change in fund balances (742,335) (121,620) 620,715 (1,141,591) (628,018) 513,573 Fund balances at beginning of year 1,667,935 1,902,702 234,767 2,696,691 3,282,132 585,441 Fund balances at end of year $ 925,6 00 $ 1,781,082 $ 855,482 $ 1,555,100 $ 2,654,114 $ 1,099,014 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report $ (121,620) (128,259) (45,367) $ (628,018) (226,314) 112 Stormwater Utility Hurricane Ian (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 62,500 62,500 10,000 24,729 14,729 30 30 - 4,622 4,622 - 72,500 91,851 19,351 - 30 30 - - - 185,000 - 185,000 - - - 30,000 - 30,000 9,044,996 6,662,130 2,382,866 385,000 608,773 (223,773) - - - 250,000 - 250,000 15,000 15,000 15,000 15,000 120,000 120,000 293,417 30,039 263,378 - - - 9,338,413 6,692,169 2,646,244 1,000,000 608,773 391,227 (9,265,913) (6,600,318) 2,665,595 1,000,000) (608,743) 391,257 86,200 86,200 7,706,100 7,706,100 1,000,000 1,000,000 (22,600) (22,600) - - - 7,683,500 7,769,700 86,200 1,000,000 1,000,000 - (1,582,413) 1,169,382 2,751,795 391,257 391,257 1,783,113 1,777,653 (5,460) - - - $ 200,700 $ 2,947,035 2,746,335 $ 391,257 $ 391,257 $ 1,169,382 $ 391,257 (183,785) (137) 49,705 $ 1,035,302 $ 391,120 113 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Improvement Districts Fire Control Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 6,274,100 $ 6,058,093 $ (216,007) $ 1,508,800 $ 1,459,702 $ (49,098) Licenses, permits and impact fees - - - - Intergovernmental - - - Charges for services 210,100 260,677 50,577 Fines and forfeitures - - - - - - Interest earnings 65,900 130,810 64,910 1,000 7,839 6,839 Special assessments - - - - - - Miscellaneous - 1,084,812 1,084,812 1,200 - (1,200) Total revenues 6,550,100 7,534,392 984,292 1,511,000 1,467,541 (43,459) Expenditures: Current: General government - - - Public safety - - - 1,975,900 1,962,102 13,798 Physical environment 6,088,408 1,528,787 4,559,621 - - - Transportation 2,551,770 1,385,905 1,165,865 Economic environment - - - Human services - - - Culture and recreation 1,122,190 989,544 132,646 - - - Debt service 800 671 129 30,000 29,702 298 Capital outlay 7,966,975 1,652,065 6,314,910 - - - Total expenditures 17,730,143 5,556,972 12,173,171 2,005,900 1,991,804 14,096 Excess (deficit) of revenues over (under) expenditures (11,180,043) 1,977,420 13,157,463 (494,900) (524,263) (29,363) Other financing sources (uses): Refunding loans issued - - Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets - - insurance proceeds - 50,484 50,484 - - - Transfers in 1,565,800 636,180 (929,620) 577,400 578,609 1,209 Transfers out (2,481,900) (912,577) 1,569,323 (49,900) (43,516) 6,384 Total other financing sources (uses) (916,100) (225,913) 690,187 527,500 535,093 7,593 Net change in fund balances (12,096,143) 1,751,507 13,847,650 32,600 10,830 (21,770) Fund balances at beginning of year 17,280,719 15,753,529 (1,527,190) 318,000 247,055 (70,945) Fund balances at end of year $ 5,184,576 $ 17, 005,036 $ 12, 220,460 $ 550,600 $ 557,885 $ (92,715) Reconciliation: Net change in fund balance, budgetary basis $ 1,751,507 $ 10,830 Change in fair value of investments (992,288) (59,636) Change in inventory - Interfund transfer in 925,966 Interfund transfer out (925,966) Advances budgeted as transfers 163,800 Unbudgeted funds - Net change in fund balance, GAAP basis $ 923, 119 $ (48,806) See accompanying independent auditors' report 114 Lighting District 911 Enhancement Fee (Budgetary Basis) (Budgetary Basis) Budget Actual ariance Budget Actual ariance $ 892,000 $ 860,685 $ (31,315) $ $ $ 1,800,000 2,224,092 424,092 3,500 6,556 3,056 11,900 15,107 3,207 - 84,120 84,120 - - 895,500 951,361 55,861 1,811,900 2,239,199 427,299 2,896,096 1,961,213 934,883 900,900 700,577 200,323 - - - - 929,981 (929,981) 900,900 700,577 200,323 2,896,096 2,891,194 4,902 (5,400) 250,784 256,184 (1,084,196) (651,995) 432,201 7,407 7,407 (31,400) (24,521) 6,879 (31,400) (17,114) 14,286 - (36,800) 233,670 (270,470) (1,084,196) (651,995) 432,201 596,900 599,289 2,389 1,523,600 1,821,771 298,171 $ 5 00,100 $ 332,959 $ (268,081) $ 439,404 $ 1, 669,776 $ 330,372 $ 233,670 $ (651,995) (49,798) (110,837) 115 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over(under)expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Payment to refunding bond escrow Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Interfund transfer in Interfund transfer out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis Tourist Development State Housing Initiativeship Partnership (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 29,849,900 $ 47,470,485 $ 17,620,585 $ $ $ - 3,489,914 3,489,914 6,078,755 4,158,567 (1,920,188) 23,400 1,023,362 999,962 - - 576,400 621,098 44,698 115,796 29,409 (86,387) 3,000 144,186 141,186 2,002,997 495,793 (1,507,204) 30,452,700 52,749,045 22,296,345 8,197,548 4,683,769 (3,513,779) 4,392,344 4,014,101 378,243 8,236,874 1,616,249 6,620,625 21,798,827 16,119,644 5,679,183 21,732,924 6,769,933 14,962,991 - 47,924,095 26,903,678 21,020,417 8,236,874 1,616,249 6,620,625 (17,471,395) 25,845,367 43,316,762 (39,326) 3,067,520 3,106,846 9,253 9,253 7,450,800 1,382,900 (6,067,900) (11,479,600) (7,450,710) 4,028,890 (31,571) (31,571) (4,028,800) (6,058,557) (2,029,757) (31,571) (31,571) (21,500,195) 19,786,810 41,287,005 (39,326) 3,035,949 3,075,275 73,853,406 102,826,584 28,973,178 39,326 2,591,234 2,551,908 $ 52,353,211 $ 122,613,394 $ 70,260,183 $ - $ 5,627,183 $ 5,627,183 $ 19,786,810 $ 3,035,949 (4,608,939) (212,913) 3,938,300 (3,938,300) $ 15,177,871 $ 2,823,036 See accompanying independent auditors' report 116 800 MHZ IRCP Fund State Court Administration (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 349,700 377,465 27,765 140,000 178,775 38,775 - - - 444,500 690,007 245,507 1,000 14,059 13,059 500 4,850 4,350 150,400 149,646 (754) - - - 501,100 541,170 40,070 585,000 873,632 288,632 - - - 1,299,860 1,243,385 56,475 1,287,100 1,182,838 104,262 1,661,981 1,481,524 180,457 395,000 394,840 160 225,000 - 225,000 - - - 1,907,100 1,577,678 329,422 2,961,841 2,724,909 236,932 (1,406,000) (1,036,508) 369,492 (2,376,841) (1,851,277) 525,564 1,166,400 - 1,166,400 - 2,418,900 (201,700) 2,418,900 (201,700) 1,166,400 1,166,400 - 2,217,200 2,217,200 - (239,600) 261,200 129,892 268,106 369,492 (159,641) 6,906 190,841 365,923 525,564 304,541 113,700 $ 21,600 $ 397,998 $ 376,398 $ 31,200 $ 670,464 $ 639,264 $ 129,892 $ 365,923 (24,901) (34,936) $ 1 44,991 $ 330,987 117 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Confiscated Property GAC Land Sales, Roads and Canals (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings 1,400 3,475 2,075 7,000 11,038 4,038 Special assessments - - - - - - Miscellaneous - - - - 1258489 1258489 Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report 1,400 3,475 2,075 7,000 1,269,527 1,262,527 12,500 12,000 500 5,000 3,517 1,483 12,500 12,000 500 5,000 3,517 1,483 (11,100) (8,525) 2,575 2,000 1,266,010 1,264,010 (11,100) (8,525) 2,575 2,000 1,266,010 1,264,010 523,200 519,946 (3,254) 702,000 926,219 224,219 $ 512,100 $ 111,421 $ (679) $ 704,000 $ 2, 992,229 $ 1,488,229 $ (8,525) (26,401) $ 1,266,010 (77,731) 118 Utility Fee Conservation Collier (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 86,000 $ 125,342 $ 39,342 $ 26,188,800 $ 25,203,908 $ (984,892) - 898 898 - - 100,000 100,000 - 54 54 4,800 7,469 2,669 395,000 310,984 (84,016) - 27,900 301,913 274,013 190,800 233,709 42,909 26,611,700 25,816,859 (794,841) 342,100 281,306 60,794 1,570,705 128,328 442,377 - - - 14,296,570 910,964 13,385,606 342,100 281,306 60,794 15,867,275 2,039,292 13,827,983 (151,300) (47,597) 103,703 10,744,425 3,777,567 13,033,142 9,883,900 202,857 (9,681,043) (10,690,200) (547,678) 10,142,522 (806,300) (344,821) 461,479 (151,300) (47,597) 103,703 9,938,125 3,432,746 13,494,621 1,179,700 1,229,869 50,169 26,086,846 26,082,796 (4,050) $ 1,0 88,400 $ 1, 882,272 $ 153,872 $ 36, 224,971 $ 49, 115,542 $ 13, 990,571 $ (47,597) $ 23,432,746 (56,469) (2,293,356) 9,883,900 (9,883,900) 119 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Court Information Technology (Budgetary Basis) Court Services Budget Actual Variance Budget Actual Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental 439,736 553,301 Charges for services 900,000 1,164,028 264,028 6,483,598 7,458,991 Fines and forfeitures - - - - - Interest earnings 4,200 11,518 7,318 15,000 27,263 Special assessments - - - - - Miscellaneous - - - Total revenues 904,200 1,175,546 271,346 6,938,334 8,039,555 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over(under)expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Variance 113,565 975,393 12,263 1,101,221 1,243,503 904,784 338,719 6,938,334 8,039,555 (1,101,221) 35,400 16,780 18,620 - - 104,200 89,631 14,569 48,200 17,167 31,033 - 1,431,303 1,028,362 402,941 6,938,334 8,039,555 (1,101,221) (527,103) 147,184 674,287 - - 1,125 1,125 1,125 1,125 (527,103) 148,309 675,412 753,103 1,558,052 804,949 $ 226,000 $ 1,706,361 $ 1,480,361 $ $ $ $ 148,309 $ (86,094) $ 62,215 $ - 120 University Extension Court Facilities Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 5,000 7,952 2,952 - - - - - 810,000 1,027,832 217,832 170 170 35,000 56,867 1,867 5,000 8,122 3,122 845,000 1,084,699 239,699 4,190,528 138,949 4,051,579 37,300 34,724 2,576 - - 1,226,230 - 1,226,230 37,300 34,724 2,576 5,416,758 138,949 5,277,809 (32,300) (26,602) 5,698 (4,571,758) 945,750 5,517,508 (10,000) 10,000 (10,000) 10,000 - - (42,300) (26,602) 15,698 (4,571,758) 945,750 5,517,508 42,600 42,278 (322) 7,948,067 101,498 153,431 $ 300 $ 15,676 $ 15,376 $ 3, 776,309 $ 9, 447,248 $ 5,670,939 $ (26,602) $ 945,750 (1,242) (426,879) 121 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Affordable Housing Economic and Innovation Zones (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ 2,236,200 $ 2,236,200 $ Licenses, permits and impact fees - - Intergovernmental Charges for services 10 (10) Fines and forfeitures - - - - Interest earnings 6,158 6,158 8,000 34,531 26,531 Special assessments - - - - - Miscellaneous - 40 40 - - - Total revenues 10 6,198 6,188 2,244,200 2,270,731 26,531 Expenditures: Current: General government - - - - - - Public safety Physical environment Transportation - - - - - Economic environment 1,021,833 196,388 825,445 8,000 8,000 Human services - - - - - Culture and recreation Debt service Capital outlay - Total expenditures 1,021,833 196,388 825,445 8,000 - 8,000 Excess (deficit) of revenues over (under) expenditures (1,021,823) (190,190) 831,633 2,236,200 2,270,731 34,531 Other financing sources (uses): Refunding loans issued - - - - Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds - - Transfers in 223,400 223,400 Transfers out - - Total other financing sources (uses) 223,400 223,400 - - - - Net change in fund balances (798,423) 33,210 831,633 2,236,200 2,270,731 34,531 Fund balances at beginning of year 798,423 840,008 41,585 3,266,100 3,281,793 15,693 Fund balances at end of year $ $ 873,218 $ 773,218 $ 5,502,300 $ 5, 552,524 $ 50,224 Reconciliation: Net change in fund balance, budgetary basis $ 33,210 $ 2,270,731 Change in fair value of investments (47,046) (258,773) Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ (13,836) $ 2,011,958 See accompanying independent auditors' report 122 Other Court Special Revenue Funds Budget Actual Variance Other Public Safety Revenue Funds (Budgetary Basis) Budget Actual Variance 1,500,000 1,477,643 (22,357) 69,700 1,133,639 1,063,939 - - - 86,200 89,209 3,009 12,000 55,351 43,351 5,800 209,434 203,634 1,512,000 1,532,994 20,994 161,700 1,432,282 1,270,582 3,666,600 155,709 3,510,891 - - - - - 600,000 615,121 (15,121) 129,300 - 129,300 - - 3,795,900 155,709 3,640,191 600,000 615,121 (15,121) (2,283,900) 1,377,285 3,661,185 (438,300) 817,161 1,255,461 (2,283,900) 1,377,285 3,661,185 (438,300) 817,161 1,255,461 6,669,784 7,172,126 502,342 1,383,600 4,229,099 2,845,499 $ 4,3 55,884 $ 8,549,411 $ 4, 663,527 $ 445,300 $ 5, 446,260 $ 4, 000,960 $ 1,377,285 $ 817,161 - (271,629) O - a, I oo a 0Y0,00L 123 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Other Special Revenue Funds Resource Recovery Park Endowment (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ $ $ Licenses, permits and impact fees 60,000 51,058 (8,942) Intergovernmental - - - Charges for services 248,100 278,441 30,341 8,200 (8,200) Fines and forfeitures 40,000 46,640 6,640 - Interest earnings 5,800 33,794 27,994 15,000 11,921 (3,079) Special assessments 9,327,890 9,327,891 1 - - Miscellaneous 120,000 175,989 55,989 - Total revenues 9,801,790 9,913,813 112,023 23,200 11,921 (11,279) Expenditures: Current: General government 189,400 156,502 32,898 - - Public safety 162,800 162,800 - - - - Physical environment - - 51,100 33,823 17,277 Transportation - - - Economic environment - - - Human services 10,034,570 7,334,291 2,700,279 Culture and recreation 357,102 40,865 316,237 Debt service - - - Capital outlay 14,520 14,520 - Total expenditures 10,758,392 7,694,458 3,063,934 51,100 33,823 17,277 Excess (deficit) of revenues over (under) expenditures (956,602) 2,219,355 3,175,957 (27,900) (21,902) 5,998 Other financing sources (uses): Refunding loans issued - - - Loansissued Discount on refunding loans issued Payment to refunding escrow Leases - - Sale of capital assets 78 78 Insurance proceeds - - - Transfers in 202,000 202,000 Transfers out - - - Total other financing sources (uses) 202,000 202,078 78 - Net change in fund balances (754,602) 2,421,433 3,176,035 (27,900) (21,902) 5,998 Fund balances at beginning of year 1,378,102 1,558,254 180,152 1,789,200 1,806,545 17,345 Fund balances at end of year $ 623,500 $ 3, 779,687 $ 3, 556,187 $ 1, 661,300 $ 1,784,643 $ 23,343 Reconciliation: Net change in fund balance, budgetary basis $ 2,421,433 $ (21,902) Change in fair value of investments (271,629) (90,233) Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 2, 449,804 $ (112,135) See accompanying independent auditors' report 124 Pepper Ranch Conservation Bank Pooled Commercial Paper Program (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 25,900 26,117 217 3 3 41,200 41,200 67,100 67,317 217 3 3 30,000 30,000 200,800 7,050 193,750 30,000 30,000 200,800 7,050 193,750 37,100 67,317 30,217 (200,800) (7,047) 193,753 1,460 1,460 200,000 6,175 (193,825) (15,700) (15,700) - - 184,300 (8,065) (192,365) 37,100 67,317 30,217 (16,500) (15,112) 1,388 3,932,300 3,940,000 7,700 16,500 16,570 70 $ 3,969,400 $ 4,007,317 $ 37,917 $ - $ 1,458 $ 1,458 $ 67,317 $ (15,112) (198,349) (15) S (131 wz $ (1S,1Z/) 125 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Gas Tax Refunding Revenue Bonds Forest Lakes Limited General (Budgetary Basis) Obligation Bonds (Budgetary Basis) Budget Actual Variance Budget Actual Variance 1,900,000 2,110,817 210,817 1,000 8,386 7,386 (1,602) (1,602) 1,901,000 2,119,203 218,203 (1,602) (1,602) 13,304,700 13,289,120 15,580 13,304,700 13,289,120 15,580 (11,403,700) (11,169,917) 233,783 (1,602) (1,602) 11,300,000 11,300,000 11,300,000 11,300,000 (103,700) 130,083 233,783 (1,602) (1,602) 1,170,000 1,276,034 106,034 38,047 38,047 $ 1,066,300 $ 1,406,117 $ 339,817 $ $ 36,445 $ 36,445 $ 130,083 $ (1,602) (67,718) 126 Special Obligation Refunding Revenue Bonds Tourist Development Tax Revenue Bonds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 8,100 11,439 3,339 5,000 11,660 6,660 8,100 11,439 3,339 5,000 11,660 6,660 25,047,900 24,318,850 729,050 3,731,500 3,720,275 11,225 25,047,900 24,318,850 729,050 3,731,500 3,720,275 11,225 (25,039,800) (24,307,411) 732,389 (3,726,500) (3,708,615) 17,885 108,425,000 108,425,000 (188,900) (188,900) (108,043,700) (108,043,685) 24,574,200 24,574,200 15 3,217,100 3,217,100 24,766,600 24,766,615 15 3,217,100 3,217,100 - (273,200) 1,578,500 459,204 1,723,726 732,404 145,226 (509,400) 2,950,200 (491,515) 17,885 2,958,771 8,571 $ 1,3 55,300 $ 2, 882,930 $ 877,630 $ 2, 440,800 $ 2, 667,256 $ 26,456 $ 459,204 (82,310) $ (491,515) (77,680) 127 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis County -Wide Capital Improvements Parks Improvements (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 590,000 587,311 (2,689) - 142 142 110,000 304,685 194,685 86,000 190,355 104,355 - 67,253 67,253 - 64 64 110,000 371,938 261,938 676,000 777,872 101,872 11,780,825 3,766,895 8,013,930 - - - 8,679,989 129,305 8,550,684 78,382 34,287 44,095 409,840 344,146 65,694 - - - 6,067 - 6,067 7,302,323 2,627,184 4,675,139 20,172,217 1,503,186 18,669,031 20,133,209 6,431,022 13,702,187 41,127,320 5,777,819 35,349,501 27,435,532 9,058,206 18,377,326 (41,017,320) (5,405,881) 35,611,439 (26,759,532) (8,280,334) 18,479,198 - - - 41,150 41,150 51,350 51,350 271,824 84,078 (187,746) 32,023,900 32,023,900 7,367,352 6,767,352 (600,000) (5,582,617) (8,681,039) (3,098,422) (1,992,784) (1,960,129) 32,655 26,492,633 23,394,211 (3,098,422) 5,646,392 4,932,451 (713,941) (14,524,687) 17,988,330 32,513,017 (21,113,140) (3,347,883) 17,765,257 32,753,894 36,392,095 3,638,201 29,231,340 28,716,266 (515,074) $ 18,229,207 $ 54,380,425 $ 36,151,218 $ 8,118,200 $ 25,368,383 $ 17,250,183 $ 17,988,330 $ (3,347,883) (2,233,042) (1,465,415) See accompanying independent auditors' report 128 County -Wide Library Impact Fees Correctional Facilities Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - 960,000 1,230,360 270,360 1,600,000 2,035,812 435,812 4,000 4,011 11 8,000 11,077 3,077 964,000 1,234,371 270,371 1,608,000 2,046,889 438,889 193,817 6,834 186,983 108,822 108,822 108,822 - 108,822 193,817 6,834 186,983 855,178 1,234,371 379,193 1,414,183 2,040,055 625,872 (1,758,100) (1,758,100) (2,079,900) (2,079,900) (1,758,100) (1,758,100) (2,079,900) (2,079,900) - (902,922) 974,122 (523,729) 1,117,289 379,193 (665,717) 143,167 2,241,717 (39,845) 625,872 2,157,087 (84,630) $ 71,200 $ 593,560 $ 522,360 $ 1,576,000 $ 2, 117,242 $ 541,242 $ (523,729) (29,614) $ (39,845) (78,667) 129 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Emergency Medical Services Impact Fees Water Management (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ $ $ Licenses, permits and impact fees 450,000 574,701 124,701 Intergovernmental - - - Charges for services Fines and forfeitures - - Interest earnings 8,200 6,108 (2,092) 155,000 485,228 330,228 Special assessments - - - - - Miscellaneous - - - - - Total revenues 458,200 580,809 122,609 155,000 485,228 330,228 Expenditures: Current: General government - - - - - - Public safety 145,030 3,171 141,859 - - - Physical environment - - - 4,672,022 3,071,763 1,600,259 Transportation - - - Economic environment Human services Culture and recreation Debt service - - - - - - Capital outlay 125,227 18,266 106,961 37,838,909 8,531,407 29,307,502 Total expenditures 270,257 21,437 248,820 42,510,931 11,603,170 30,907,761 Excess (deficit) of revenues over (under) expenditures 187,943 559,372 371,429 (42,355,931) (11,117,942) 31,237,989 Other financing sources (uses): Refunding loans issued - - - - Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds - - Transfers in 17,120,800 11,919,800 (5,201,000) Transfers out (1,456,500) (1,456,500) (8,746,802) (211,196) 8,535,606 Total other financing sources (uses) (1,456,500) (1,456,500) 8,373,998 11,708,604 3,334,606 Net change in fund balances (1,268,557) (897,128) 371,429 (33,981,933) 590,662 34,572,595 Fund balances at beginning of year 1,546,957 1,594,129 47,172 65,784,083 70,769,782 4,985,699 Fund balances at end of year $ 278,400 $ 997,001 $ 118,601 $ 31, 002,150 $ 71, 660,444 $ 39, 558,294 Reconciliation: Net change in fund balance, budgetary basis $ (897,128) $ 590,662 Change in fair value of investments (47,843) (3,681,865) Change in inventory Interfund transfer in Interfund transfer out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ (944,971) $ (3,091,203) See accompanying independent auditors' report 130 Pelican Bay Capital Improvements Parks Impact Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 10,075,000 3,616,870 541,870 9,600 4,523 44,923 212,000 09,652 97,652 2,153,200 005,124 (148,076) - - - 2,162,800 059,647 (103,153) 10,287,000 3,926,522 3,639,522 792,556 690,955 101,601 261,085 8,431 252,654 15,490,729 3,839,731 11,650,998 43,439,634 2,787,420 0,652,214 16,283,285 4,530,686 11,752,599 43,700,719 2,795,851 40,904,868 (14,120,485) (2,471,039) 11,649,446 (33,413,719) 11,130,671 44,544,390 10,000,000 998,540 (9,001,460) 201 201 960,000 76,340 6,340 (344,200) (105,580) 238,620 3,710,500) (3,710,500) - 10,615,800 869,300 8,746,500) (3,710,500) (3,710,299) 201 (3,504,685) (601,739) 2,902,946 (37,124,219) 7,420,372 44,544,591 7,292,985 7,214,673 (78,312) 43,830,319 44,002,393 172,074 $ 3,788,300 6,612,934 $ 2,824,634 $ 6,706,100 51,422,765 $ 44,716,665 $ (601,739) $ 7,420,372 (414,935) (2,287,328) 131 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Refunding loans issued Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Road Impact Districts Road Construction (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 16,100,000 $ 17,242,504 $ 1,142,504 16,000,000 31,793,220 15,793,220 - - - - - - 4,500,000 4,841,578 341,578 4,500 19,896 15,396 1,110,000 750,443 (359,557) 348,200 356,858 8,658 - 5 5 1,653,560 1,167,704 (485,856) 17,110,000 32,543,668 15,433,668 22,606,260 23,628,540 1,022,280 9,030,812 1,009,851 8,020,961 15,477,474 14,716,147 761,327 102,240,841 16,356,362 85,884,479 74,989,703 5,277,574 69,712,129 111,271,653 17,366,213 93,905,440 90,467,177 19,993,721 70,473,456 (94,161,653) 15,177,455 109,339,108 (67,860,917) 3,634,819 71,495,736 27,195,900 - (27,195,900) 99,500 99,500 60,865 60,865 - 11,817,300 11,817,300 - (9,087,900) (3,695,777) 5,392,123 (27,751,768) (18,332,599) 9,419,169 (9,087,900) (3,596,277) 5,491,623 11,322,297 (6,454,434) (17,776,731) (103,249,553) 11,581,178 114,830,731 (56,538,620) (2,819,615) 53,719,005 104,229,153 105,948,230 1,719,077 58,837,052 55,915,038 (2,922,014) $ 979,600 $ 117, 229,408 $ 116, 449,808 $ 2, 998,432 $ 53, 995,423 $ 50, 996,991 $ 11,581,178 $ (2,819,615) (5,590,702) (2,741,162) 132 Government Facilities Impact Fees Law Enforcement Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 2,800,000 3,781,504 981,504 1,820,000 2,261,853 441,853 15,000 22,837 7,837 10,000 18,271 8,271 2,815,000 3,804,341 989,341 1,830,000 2,280,124 450,124 152,232 26,701 125,531 - - - - - - 158,584 3,868 154,716 152,232 26,701 125,531 158,584 3,868 154,716 2,662,768 3,777,640 1,114,872 1,671,416 2,276,256 604,840 6 6 1,832,000 1,832,000 (5,595,500) (5,595,500) - (1,835,300) (1,835,300) (3,763,500) (3,763,494) 6 (1,835,300) (1,835,300) - (1,100,732) 14,146 1,114,878 (163,884) 440,956 604,840 4,114,132 4,064,063 (50,069) 2,355,284 2,652,378 297,094 $ 3,0 33,400 $ 4, 778,209 $ 1, 664,809 $ 2, 991,400 $ 3 993,334 $ 001,934 $ 14,146 $ 440,956 (164,085) (136,263) $ (149,939) $ 304,693 133 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2022 All Terrain Vehicle Park Amateur Sports Complex (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures - - - - - Interest earnings 15,000 21,196 6,196 150,000 180,813 30,813 Special assessments - - - - - - Miscellaneous - - Total revenues 15,000 21,196 6,196 150,000 180,813 30,813 Expenditures: Current: General government - - - - - - Public safety Physical environment Transportation Economic environment Human services - - - - Culture and recreation 198,570 1,400 197,170 93,489 (93,489) Debt service - - - - - - Capital outlay - 45,430,932 16,958,070 28,472,862 Total expenditures 198,570 1,400 197,170 45,430,932 17,051,559 28,379,373 Excess (deficit) of revenues over (under) expenditures (183,570) 19,796 203,366 (45,280,932) (16,870,746) 28,410,186 Other financing sources (uses): Refunding loans issued - - - Loansissued Discount on refunding loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds - - Transfers in 15,706,200 11,459,377 (4,246,823) Transfers out - - Total other financing sources (uses) 15,706,200 11,459,377 (4,246,823) Net change in fund balances (183,570) 19,796 203,366 (29,574,732) (5,411,369) 24,163,363 Fund balances at beginning of year 3,184,370 3,183,713 (657) 29,582,232 5,286,022 (24,296,210) Fund balances at end of year $ 3, 000,800 $ 3, 003,509 $ 002,709 $ 7,500 $ (125,347) $ (132,847) Reconciliation: Net change in fund balance, budgetary basis $ 19,796 $ (5,411,369) Change in fair value of investments (160,089) (1,379,686) Change in inventory Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis $ (140,293) $ (6,791,055) See accompanying independent auditors' report 134 Other Capital Projects (Budgetary Basis) Budget Actual Variance S 14,600 $ 14,085 $ (515) 8,000 19,474 11,474 - 123 123 2,000 2,000 - 6,700 82,980 76,280 31,300 118,662 87,362 61,509 757,757 (696,248) 69,517 - 69,517 434,469 162,911 271,558 12,591,222 230,514 12,360,708 13,156,717 1,151,182 12,005,535 (13,125,417) (1,032,520) 12,092,897 - 3,560 3,560 2,472,000 2,472,176 176 (160,088) (68,378) 91,710 2,311,912 2,407,358 95,446 (10,813,505) 1,374,838 12,188,343 11,349,006 11,331,831 (17,175) $ 335,501 $ 12, 006,669 $ 12, 771,168 $ 1,374,838 (624,411) 135 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ NONMAJOR ENTERPRISE FUNDS AIRPORT AUTHORITY - To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT - To account for the provision of public transportation throughout the County. 137 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS September 30, 2022 ASSETS Current assets: Cash and investments Receivables: Trade, net Interest Leases Due from other funds Due from other governments Inventory Restricted assets: Cash and investments Due from other governments Total current assets Noncurrent assets: Receivables: Leases Capital assets: Land and nondepreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Wages payable Due to other governments Unearned revenues Compensated absences Net pension liability Liabilities payable from restricted assets: Accounts payable Retainage payable Due to other governments Refundable deposits Total current liabilities Noncurrent liabilities: Advances from other funds Compensated absences Total OPEB liability Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases Deferred inflows of resources related to OPEB Deferred inflows of resources related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for grants and other purposes Unrestricted Total net position See accompanying independent auditors' report Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds $ 7,088,952 $ 2,788,822 $ 9,877,774 2,237 16,237 18,474 8,830 4,838 13,668 103,440 - 103,440 - 28,497 28,497 1,952 - 1,952 185,593 - 185,593 415,519 296,790 712,309 850,865 3,322,111 4,172,976 8,657,388 6,457,295 15,114,683 1,783,953 - 1,783,953 2,498,935 6,123,864 8,622,799 49,207,830 19,056,446 68,264,276 53,490,718 25,180,310 78,671,028 62,148,106 31,637,605 93,785,711 1,965 1,035 3,000 236,110 91,958 328,068 238,075 92,993 331,068 343,987 609,840 953,827 66,221 25,886 92,107 6,668 6,037 12,705 15,583 - 15,583 91,343 24,687 116,030 317 93 410 32,836 401,943 434,779 26,868 - 26,868 - 117,960 117,960 9,826 100 9,926 593,649 1,186,546 1,780,195 1,600,425 - 1,600,425 22,836 6,172 29,008 58,663 17,254 75,917 927,021 344,624 1,271,645 2,608,945 368,050 2,976,995 3,202,594 1,554,596 4,757,190 1,857,627 - 1,857,627 14,230 4,478 18,708 58,567 17,847 76,414 1,930,424 22,325 1,952,749 51,561,177 25,066,916 76,628,093 1,196,853 3,212,292 4,409,145 4,495,133 1,874,469 6,369,602 $ 57,253,163 $ 30,153,677 $ 87, 006.840 138 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For The Fiscal Year Ended September 30, 2022 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Operating revenues: Charges for services $ 9,687,439 $ 985,007 $ 10,672,446 Miscellaneous 14,975 155,267 170,242 Total operating revenues 9,702,414 1,140,274 10,842,688 Operating expenses: Personal services 1,415,315 506,164 1,921,479 General and administrative 6,831,641 12,164,029 18,995,670 Depreciation 2,379,955 2,161,841 4,541,796 Total operating expenditures 10,626,911 14,832,034 25,458,945 Operating loss (924,497) (13,691,760) (14,616,257) Non -operating revenues (expenses): Operating grants and contributions 76,424 6,277,688 6,354,112 Interest earnings (277,404) (155,606) (433,010) Insurance reimbursement 3,105 3,105 Interest expense (12,632) (12,632) Loss on disposal of capital assets (979,455) (19,103) (998,558) Total non -operating revenues (expenses) (1,189,962) 6,102,979 4,913,017 Loss before contributions and transfers (2,114,459) (7,588,781) (9,703,240) Capital grants and contributions 5,616,470 4,354,728 9,971,198 Transfers in - 5,951,764 5,951,764 Transfers out (135,900) - (135,900) Total transfers and contributions 5,480,570 10,306,492 15,787,062 Changes in net position 3,366,111 2,717,711 6,083,822 Net position - beginning 53,887,052 27,435,966 81,323,018 Net position - ending $ 57,253,163 $ 30,153,677 $ 87,406,840 See accompanying independent auditors' report 139 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For The Fiscal Year Ended September 30, 2022 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Cash flows from operating activities: Cash received for services $ 9,779,585 $ 1,139,461 $ 10,919,046 Cash payments for goods and services (6,568,294) (8,918,296) (15,486,590) Cash payments to employees (1,273,440) (501,867) (1,775,307) Cash payments for interfund services (586,649) (3,568,389) (4,155,038) Net cash provided by (used for) operating activities 1,351,202 (11,849,091) (10,497,889) Cash flows from non -capital financing activities: Cash received from operating grants 87,145 6,324,240 6,411,385 Cash transfers (to) from other funds (659,000) 5,950,325 5,291,325 Net cash provided by (used for) non -capital financing activities (571,855) 12,274,565 11,702,710 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 3,105 - 3,105 Proceeds from disposal of capital assets 471 2,772 3,243 Proceeds from capital grants 8,203,051 4,318,617 12,521,668 Proceeds from leasing activities 204,937 - 204,937 Payments for capital acquisitions (8,372,579) (3,082,889) (11,455,468) Net cash provided by capital and related financing activities 38,985 1,238,500 1,277,485 Cash flows from investing activities: Interest on investments (278,984) (158,616) (437,600) Net cash used for investing activities (278,984) (158,616) (437,600) Net increase in cash and investments 539,348 1,505,358 2,044,706 Cash and investments, October 1, 2021 6,965,123 1,580,254 8,545,377 Cash and investments, September 30, 2022 $ 7,5 44,471 $ 3, 885,612 $ 10, 990,083 Cash and investments $ 7,088,952 $ 2,788,822 $ 9,877,774 Cash and investments - restricted 415,519 296,790 712,309 Cash and investments, September 30, 2022 $ 7,504,471 $ 3,085,612 $ 10,590,083 Operating loss $ (924,497) $ (13,691,760) $ (14,616,257) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation expense 2,379,955 2,161,841 4,541,796 Net changes in assets and liabilities: Trade receivable 82,006 (722) 81,284 Inventory (99,902) - (99,902) Accounts payable (8,987) (322,656) (331,643) Wages payable 16,629 5,222 21,851 Due to other governments 1,399 (91) 1,308 Compensated absences 33,516 (1,860) 31,656 Unearned revenue (6,234) (6,234) Total OPEB liability (4,919) (2,615) (7,534) Deferred outflows of resources related to OPEB 1,966 579 2,545 Deferred inflows of resources related to OPEB 9,082 2,671 11,753 Net pension liability 515,009 187,730 702,739 Deferred outflows of resources related to pensions (55,814) (16,405) (72,219) Deferred inflows of resources related to pensions (373,594) (171,025) (544,619) Deferred inflows of resources related to leases (214,413) - (214,413) Total adjustments 2,275,699 1,842,669 4,118,368 Net cash provided by (used for) operating activities $ 1,351,202 $ (11,849,091) $ (10,497,889) Non -cash investing, capital and financing activities: Change in fair value of investments $ (353,864) $ (180,069) $ (533,933) Contributed capital assets 21,972 21,972 Change in capital related grant receivable (2,586,581) 14,139 (2,572,442) Capital related accounts payable 118,720 110,543 229,263 Capital related retainage payable 26,868 - 26,868 See accompanying independent auditors' report 140 INTERNAL SERVICE FUNDS SELF-INSURANCE — To account for the self-insurance costs of providing coverage for property, general and vehicle liability. To account for the provisions of health benefits to Board and participating constitutional officer employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. SHERIFF'S SELF-INSURANCE — To account for the provisions of health benefits to Sheriff employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. FLEET MANAGEMENT — To account for fuel, oil, lubricants, repairs and maintenance of County vehicles and the use of certain County owned vehicles by County employees. MOTOR POOL CAPITAL RECOVERY — To account for the accumulation of resources for the replacement of vehicles and heavy equipment for County governmental activities. INFORMATION TECHNOLOGY — To account for the costs of operating the County data processing facility and telephone communication system. 141 ASSETS Current assets: Cash and investments Receivables: Trade, net Interest Due from other governments Inventory Prepaid costs Total current assets Noncurrent assets: Capital assets: Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Wages payable Due to other governments Unearned revenues Self-insurance claims payable Compensated absences Net pension liability Lease payable Total current liabilities Noncurrent liabilities: Self-insurance claims payable Compensated absences Lease payable Total OPEB liability Net pension liability Total noncurrent liabilities Total liabilities Deferred inflows of resources related to OPEB Deferred inflows of resources related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS September 30, 2022 Sheriffs Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total $ 42,122,865 $ 16,329,084 $ 2,098,339 $ 17,536,990 $ 6,776,143 $ 84,863,421 956,772 248,164 - - - 1,204,936 58,158 18,488 1,935 21,856 9,921 110,358 - - 93,987 - 3,597 97,584 - 634,723 - 634,723 2,076,935 - - 77,031 2,153,966 45,214,730 16,595,736 2,828,984 17,558,846 6,866,692 89,064,988 217,849 7,888,786 8,430,645 3,113,430 19,650,710 217,849 7,888,786 8,430,645 3,113,430 19,650,710 45,432,579 16,595,736 10,717,770 25,989,491 9,980,122 108,715,698 2,948 5,087 196 9,584 17,815 285,617 479,143 15,009 822,947 1,602,716 288,565 484,230 15,205 832,531 1,620,531 849,129 386,505 35,368 496,433 1,767,435 68,732 132,770 - 219,812 421,314 4,193 35,084 - 39,277 38,699 108,711 - 147,410 6,007,974 3,465,000 - 9,472,974 100,117 - 132,438 50 228,702 461,307 242 443 - 779 1,464 3,284 - - - - 3,284 7,072,370 3,573,711 687,240 35,418 945,726 12,314,465 2,410,072 - - - 2,410,072 25,029 33,109 12 57,176 115,326 3,615 - - - 3,615 44,860 89,720 3,451 138,031 276,062 1,044,757 1,772,828 47,980 3,054,251 5,919,816 3,528,333 1,895,657 51,443 3,249,458 8,724,891 10,600,703 3,573,711 2,582,897 86,861 4,195,184 21,039,356 11,778 23,656 890 37,025 73,349 47,679 86,085 413 150,678 284,855 59,457 109,741 1,303 187,703 358,204 210,950 - 7,888,786 8,395,277 3,113,430 19,608,443 34,850,034 13,022,025 620,576 17,521,255 3,316,336 69,330,226 $ 35,060,984 $ 13,022,025 $ 8,509,362 $ 25,916,532 $ 6,429,766 $ 88,938,669 142 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2022 Sheriffs Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating revenues: Charges for services $ 57,708,148 $ 33,231,472 $ 11,903,152 $ 5,089,659 $ 13,934,461 $ 121,866,892 Miscellaneous 1,085,874 - 19,416 - 1,920 1,107,210 Total operating revenues 58,794,022 33,231,472 11,922,568 5,089,659 13,936,381 122,974,102 Operating expenses: Personal services 1,455,678 - 2,687,055 54,551 3,958,827 8,156,111 General and administrative 12,421,504 743,150 8,870,775 14,462 7,150,944 29,200,835 Insurance claims paid 45,018,853 31,144,679 - - - 76,163,532 Depreciation and amortization 48,064 - 637,664 2,190,026 867,713 3,743,467 Total operating expenditures 58,944,099 31,887,829 12,195,494 2,259,039 11,977,484 117,263,945 Operating income (loss) (150,077) 1,343,643 (272,926) 2,830,620 1,958,897 5,710,157 Non -operating revenues (expenses): Interest earnings (2,038,025) (883,124) (71,053) (783,705) (310,375) (4,086,282) Insurance reimbursement 431,490 184,533 616,023 Interest expense (129) - - - (129) Gain (loss) on disposal of capital assets 377 29,650 (299,669) (859) (270,501) Total non -operating revenues (expenses) (1,606,287) (883,124) (41,403) (898,841) (311,234) (3,740,889) Income before contributions and transfers (1,756,364) 460,519 (314,329) 1,931,779 1,647,663 1,969,268 Capital grants and contributions - - 7,519 7,519 Transfers in 200,000 41,200 500,000 741,200 Transfers out (76,600) (113,600) - (300,000) (490,200) Total transfers and contributions (76,600) - 86,400 41,200 207,519 258,519 Changes in net position (1,832,964) 460,519 (227,929) 1,972,979 1,855,182 2,227,787 Net position - beginning 36,893,948 12,561,506 8,737,291 23,943,553 4,574,584 86,710,882 Net position - ending $ 35,060,984 $ 13,022, 225 $ 8,509,362 $ 25,916,532 $ 6,429,766 $ 88,938,669 See accompanying independent auditors' report 143 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2022 Cash flows from operating activities: Cash received from other funds for services Cash received from other governments for services Cash received from employees for services Cash received from retirees for services Cash payments on behalf of retirees Cash payments for goods and services Cash payments for self insurance claims Cash payments to employees Cash payments for interfund services Net cash provided by operating activities Cash flows from non -capital financing activities: Cash transfers from other funds Cash transfers to other funds Net cash provided by (used for) non -capital financing activities Cash flows from capital and related financing activities: Receipts from insurance reimbursements Proceeds from disposal of capital assets Payments for capital acquisitions Principal payments on leases Interest and fiscal agent fees paid Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest on investments Net cash used for investing activities Net increase (decrease) in cash and investments Cash and investments, October 1, 2021 Cash and investments, September 30, 2022 Sheriffs Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total $ 50,827,008 $ 32,950,000 $ 11,430,160 $ 5,089,659 $ 13,936,486 $ 114,233,313 - - 413,289 - - 413,289 7,484,925 - - 7,484,925 726,184 1,485,894 2,212,078 (1,489,636) - (1,489,636) (9,854,366) (2,781,924) (8,626,059) (7,662) (5,965,549) (27,235,560) (45,018,853) (28,831,290) (73,850,143) (1,432,332) (2,676,491) (86,605) (4,205,129) (8,400,557) (888,603) (404,916) (6,800) (428,387) (1,728,706) 354,327 2,822,680 135,983 4,988,592 3,337,421 11,639,003 200,000 41,200 500,000 741,200 (76,600) (113,600) - (300,000) (490,200) (76,600) 86,400 41,200 200,000 251,000 419,901 - 184,533 - 604,434 377 29,650 83,500 3,259 116,786 (6,980) (189,699) (2,322,079) (909,418) (3,428,176) (3,233) (3,233) (129) (129) 409,936 (160,049) (2,054,046) (906,159) (2,710,318) (2,037,804) (875,909) (71,051) (788,144) (313,893) (4,086,801) (2,037,804) (875,909) (71,051) (788,144) (313,893) (4,086,801) (1,350,141) 1,946,771 (8,717) 2,187,602 2,317,369 5,092,884 43,473,006 14,382,313 2,107,056 15,349,388 4,458,774 79,770,537 $ 42,122,865 $ 16,329,084 $ 2,098,339 $ 17,536,990 $ 6,776,143 $ 84,863,421 (Continued) 144 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2022 Sheriffs Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating income (loss) $ (150,077) $ 1,343,643 $ (272,926) $ 2,830,620 $ 1,958,897 $ 5,710,157 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization expense 48,064 - 637,664 2,190,026 867,713 3,743,467 Net changes in assets and liabilities: Trade receivable (501,471) 45,615 - - - (455,856) Due from other funds 16,480 1,200,003 - 1,216,483 Due from other governments - - (79,119) 105 (79,014) Inventory - (169,438) - (169,438) Prepaid costs 306,508 555,563 862,071 Accounts payable (57,172) (5,392) 201,445 138,881 Wages payable 11,067 24,517 (4,253) 21,721 53,052 Due to other funds (60,000) - - (60,000) Due to other governments (437) 14,630 14,193 Compensated absences 16,617 (15,050) (10,447) (14,374) (23,254) Unearned revenue 19,449 4,419 23,868 Self-insurance claims payable 709,637 229,000 - 938,637 Total OPEB liability (6,801) - (17,574) (523) (32,845) (57,743) Deferred outflows of resources related to OPEB 1,504 3,007 116 4,626 9,253 Deferred inflows of resources related to OPEB 6,945 13,890 534 21,369 42,738 Net pension liability 604,431 964,920 17,522 1,599,821 3,186,694 Deferred outflows of resources related to pensions (52,005) (95,430) (976) (73,499) (221,910) Deferred inflows of resources related to pensions (558,412) (867,716) (34,027) (1,773,121) (3,233,276) Total adjustments 504,404 1,479,037 408,909 2,157,972 1,378,524 5,928,846 Net cash provided by operating activities $ 554,327 $ 2,822,680 $ 335,983 $ 4, 888,592 $ 3, 337,421 $ 11,639,003 Non -cash investing, capital and financing activities: Change in fair value of investments $ (2,356,266) $ Contributed capital assets Capital related accounts payable See accompanying independent auditors' report $ (82,154) $ (903,861) $ (359,984) $ (3,702,265) 7,519 7,519 35,368 35,368 145 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ FIDUCIARY FUNDS CLERK OF COURTS CUSTODIAL FUND -To account for monies held in Trust by the Clerk of the Circuit Court prior to disbursement. SHERIFF CUSTODIAL FUND - To account for monies held in a custodial capacity by the Sheriff. TAX COLLECTOR CUSTODIAL FUND - To account for assets held by the Tax Collector prior to legal disbursement. 147 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS September 30, 2022 Clerk Tax of Courts Sheriff Collector Custodial Fund Custodial Fund Custodial Fund Total ASSETS Cash and investments $ 21,530,987 $ 384,842 $ 4,348,591 $ 26,264,420 Trade receivable, net - 2,742 13,684 16,426 Total assets $ 21,530,987 $ 387,584 $ 4,362,275 $ 26,280,846 LIABILITIES Due to other governments $ 3,139,399 $ $ 4,229,241 $ 7,368,640 Due to individuals - 86,377 133,034 219,411 Total liabilities $ 3,139,399 $ 86,377 $ 4,362,275 $ 7,588,051 FIDUCIARY NET POSITION Restricted for individuals and governments $ 18,391,588 $ 301,207 $ - $ 18,692,795 See accompanying independent auditors' report 148 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS For The Fiscal Year Ended September 30, 2022 Clerk Tax of Courts Sheriff Collector Custodial Fund Custodial Fund Custodial Fund Total ADDITIONS: Contributions for individuals $ 25,656,571 $ 3,770,663 $ - $ 29,427,234 Fees collected for other governments 2,481,706 360,674 321,474,119 324,316,499 Miscellaneous - 2,391 76,273 78,664 Total additions 28,138,277 4,133,728 321,550,392 353,822,397 DEDUCTIONS: Beneficiary payments to individuals 33,254,887 3,739,858 - 36,994,745 Payment of fees to other governments 2,537,388 132,696 321,550,392 324,220,476 Payments to other entities - 243,640 - 243,640 Total deductions 35,792,275 4,116,194 321,550,392 361,458,861 Net increase in fiduciary net position (7,653,998) 17,534 - (7,636,464) Fiduciary net position - beginning of year 26,045,586 283,673 26,329,259 Fiduciary net position - end of year $ 18,391,588 $ 301,207 $ S 18,692,795 149 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ COMPONENT UNITS COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY - The authority was established for the purpose of facilitating projects that promote economic growth and opportunities for employment in Collier County. COLLIER COUNTY HEALTH FACILITIES AUTHORITY - The authority was established for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. COLLIER COUNTY HOUSING FINANCE AUTHORITY - The authority was established for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY - The authority was established for the purpose of assisting institutions of higher education in the construction, financing and refinancing of projects. 151 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS September 30, 2022 Industrial Health Housing Educational Development Facilities Finance Facilities Authority Authority Authority Authority Total ASSETS Cash and investments $ 123,713 $ 53,592 $ 286,420 $ 11,836 $ 475,561 Total assets $ 123,713 $ 53,592 $ 286,420 $ 11,836 $ 475,561 NET POSITION Net position - unrestricted $ 123,713 $ 53,592 $ 286,420 $ 11,836 $ 475,561 Total Net Position $ 123,713 $ 53,592 $ 286,420 $ 11,836 $ 475,561 See accompanying independent auditors' report 152 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS For The Fiscal Year Ended September 30, 2022 Revenues Fees, Fines and Operating Grants Functions/Programs Expenses Charges for Services and Contributions Industrial Development Authority $ 7,675 $ - $ Health Facilities Authority 4,687 41,250 Housing Finance Authority 8,125 60,500 Educational Facilities Authority 1,189 8,273 Total $ 21,676 $ 110,023 $ See accompanying independent auditors' report General revenues: Miscellaneous revenue Total general revenues Change in net position Net position - beginning Net position - ending Net (Expense) Revenue and Changes in Net Position Governmental Activities $ (7,675) 36,563 52,375 7,084 $ 88,347 131 88,478 387,083 $ 475,561 153 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ OTHER SUPPLEMENTAL INFORMATION Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. 155 COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL For The Fiscal Year Ended September 30, 2022 Amount Amount Received Expended in the in the 2022 2022 Source Fiscal Year Fiscal Year British Petroleum: Gulf Seafood and Tourism Promotional Fund S S Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2022 fiscal year. 156 -\ i ter•..:• ';�� ``:l.1 Ago ry t Al_ s, --A" 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non -accounting data. These schedules reflect social and economic data, and financial trends of Collier County, Florida. FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government's financial perfomance and wellbeing have changed over time. NetPosition by Component....................................................................................................................................... 160 Changein Net Position............................................................................................................................................... 162 Governmental Activities Tax Revenues by Source..................................................................................................164 Fund Balances of Governmental Funds.................................................................................................................... 165 Changes in Fund Balances of Governmental Funds...............................................................................................166 REVENUE CAPACITY These schedules contain trend information to help the reader assess the County's most significant local revenue source, Property Tax. Assessed Value and Estimated Actual Value of Taxable Property.......................................................................168 Property Tax Rates — All Direct and Overlapping Governments............................................................................170 PrincipalTaxpayers County-Wide.............................................................................................................................. 171 Property Tax Levies and Collections......................................................................................................................... 172 DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Ratiosof Outstanding Debt by Type.......................................................................................................................... 173 LegalDebt Margin Information.................................................................................................................................. 174 Direct, Overlapping and Underlapping Governmental Activities Debt...................................................................174 Pledged -Revenue Coverage....................................................................................................................................... 175 DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place. Demographic and Economic Statistics.................................................................................................................... 176 PrincipalEmployers..................................................................................................................................................... 177 OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Budgeted Full -Time Equivalent County Employees by Function...........................................................................178 Operating Indicators by Function.............................................................................................................................. 179 Capital Asset Statistics by Function......................................................................................................................... 180 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. 159 COLLIER COUNTY, FLORIDA NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2022 2021 2020 2019 2018 2017 Governmental Activities: Net investment in capital assets $ 1,509,272 $ 1,396,962 $ 1,331,163 $ 1,302,980 $ 1,287,184 $ 1,257,685 Restricted 782,820 660,442 559,050 478,719 362,045 336,922 Unrestricted 87,851 42,882 (23,652) (32,158) (29,328) (24,011) Total governmental activities net position $ 2,379,943 $ 2,100,286 $ 1,866,561 $ 1,749,541 $ 1,619,901 $ 1,570,596 Business -type Activities: Net investment in capital assets $ 870,966 $ 846,257 $ 818,092 $ 777,814 $ 763,259 $ 741,912 Restricted 48,511 50,827 42,036 39,371 31,982 32,619 Unrestricted 240,180 241,239 215,623 205,756 143,198 168,602 Total business -type activities net position $ 1,159,657 $ 1,138,323 $ 1,075,751 $ 1,022,941 $ 938,439 $ 943,133 Primary Government: Net investment in capital assets $ 2,380,238 $ 2,243,219 $ 2,149,255 $ 2,080,794 $ 2,050,443 $ 1,999,597 Restricted 831,331 711,269 601,086 518,090 394,027 369,541 Unrestricted 328,031 284,121 191,971 173,598 113,870 144,591 Total primary government net position $ 3,539,600 $ 3,238,609 $ 2,942,312 $ 2,772,482 $ 2,558,340 $ 2,513,729 160 Fiscal Year 2016 2015 2014 2013 $ 1,225,520 $ 1,217,176 $ 1,207,751 $ 1,198,971 327,968 298,360 223,526 221,501 2,478 13,109 169,633 152,790 $ 1,555,966 $ 1,528,645 $ 1,600,910 $ 1,573,262 $ 723,000 $ 714,239 $ 705,065 $ 668,160 35,760 31,511 29,749 34,379 169,287 165,128 185,420 196,050 $ 928,047 $ 910,878 $ 920,234 $ 898,589 $ 1,948,520 $ 1,931,415 $ 1,912,816 $ 1,867,131 363,728 329,871 253,275 255,880 171,765 178,237 355,053 348,840 $ 2,484,013 $ 2,439,523 $ 2,521,144 $ 2,471,851 161 COLLIER COUNTY, FLORIDA CHANGE IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2022 2021 2020 2019 2018 2017 Expenses Governmental activities: General government $ 138,961 $ 129,810 $ 135,978 $ 134,018 $ 126,920 $ 108,388 Public safety 274,244 237,435 266,736 254,341 223,177 225,360 Transportation 94,079 88,679 89,954 88,200 83,386 75,589 Culture and recreation 70,800 59,348 56,900 59,401 58,042 51,889 Other activities 97,039 114,798 54,967 52,500 64,822 41,899 Interest on long-term debt 10,818 14,601 12,321 13,223 9,736 11,294 Total governmental activities expenses $ 685,941 $ 644,671 $ 616,856 $ 601,683 $ 566,083 $ 514,419 Business -type activities: Water and Sewer $ 175,794 $ 166,035 $ 155,368 $ 153,602 $ 144,113 $ 144,850 Solid Waste 51,071 51,896 49,158 47,529 106,823 43,664 Emergency Medical Services 41,626 27,782 33,761 34,871 32,275 28,644 Airport Authority 11,612 7,805 6,168 6,361 5,533 4,905 Mass Transit 14,766 13,638 13,716 13,090 12,680 11,354 Total business -type activities expenses 294,869 267,156 258,171 255,453 301,424 233,417 Total primary government expenses S 880.810 $ 111.827 $ 775.027 $ 557.136 $ 667.507 $ 447,836 Program Revenues Governmental activities: Charges for services: General government $ 46,133 $ 40,237 $ 39,204 $ 39,981 $ 37,703 $ 33,377 Public safety 28,900 29,790 25,037 26,137 28,040 24,240 Transportation 1,700 1,897 1,425 1,206 2,111 2,024 Culture and recreation 10,015 7,617 5,055 7,808 7,886 8,192 Other activities 1,257 3,566 1,959 1,862 2,235 1,467 Operating Grants and Contributions 79,246 98,708 34,025 30,313 29,549 26,539 Capital Grants and Contributions 132,702 50,311 47,343 56,268 47,645 38,124 Total governmental activities program revenues 299,953 232,126 154,048 163,575 155,169 133,963 Business -type activities: Charges for services: Water and Sewer $ 177,260 $ 168,017 $ 162,702 $ 155,839 $ 145,757 $ 135,045 Solid Waste 60,340 59,078 53,885 51,928 50,449 45,209 Emergency Medical Services 18,491 14,206 13,069 13,854 12,836 11,812 Airport Authority 9,633 7,242 4,959 4,639 3,951 3,734 Mass Transit 1,140 1,086 978 1,203 1,129 1,267 Operating Grants and Contributions 8,172 26,394 11,548 46,592 16,426 5,025 Capital Grants and Contributions 48,197 42,974 42,099 37,888 38,670 26,993 Total business -type activities program revenues 323,233 318,997 289,240 311,943 269,218 229,085 Total primary government program revenues 623,186 551,123 443,288 475,518 424,387 363,048 Net (expense)/revenue: Governmental activities (385,988) (412,545) (462,808) (438,108) (410,914) (380,456) Business -type activities 28,364 51,841 31,069 56,490 (32,206) (4,332) Total primary government net expense S (357.624) S (360.704) S (431.739) S (381.618) S (443.120) S (384.788) General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property taxes $ 447,901 $ 400,607 $ 376,140 $ 356,099 $ 337,447 $ 312,633 Gas taxes 24,196 22,920 21,005 24,485 22,749 21,799 Sales taxes 65,043 55,732 45,228 49,550 44,093 41,799 Infrastructure sales tax 120,376 99,588 81,735 60,787 - - Tourist taxes 47,470 36,192 26,062 31,653 27,962 21,961 Other taxes 6,658 6,289 6,438 7,140 6,914 7,478 State revenue sharing 17,758 13,776 12,343 13,194 12,564 11,602 Interest earnings (55,942) 1,639 14,336 24,113 6,857 3,574 Miscellaneous 7,899 18,407 11,523 17,594 18,121 9,714 Transfers, net (15,714) (8,880) (15,020) (16,837) (16,487) (14,793) Total governmental activities S 665.645 S 446.270 S 779.790 S 667.778 S 660.220 S 115.767 Business -type Activities: Interest earnings $ (22,905) $ 394 $ 5,870 $ 9,699 $ 2,602 $ 1,379 Miscellaneous 161 1,457 851 1,476 8,423 126 Transfers, net 15,714 8,880 15,020 16,837 16,487 14,793 Total business -type activities (7,030) 10,731 21,741 28,012 27,512 16,298 Total primary government S 558.615 S 557.001 S 001,531 S 995.790 S 887.732 S 332.065 Change in Net Position Governmental activities $ 279,657 $ 233,725 $ 116,982 $ 129,670 $ 49,306 $ 35,311 Business -type activities 21,334 62,572 52,810 84,502 (4,694) 11,966 Total primary government S 300,991 $ 296,297 $ 169,792 $ 214,172 $ 44,612 $ 47,277 162 2016 2015 2014 2013 $ 104,188 $ 93,644 $ 92,176 $ 95,941 205,347 174,874 177,267 171,210 70,560 70,296 71,623 69,275 49,526 45,117 41,630 41,453 48,256 45,621 39,171 43,067 12,077 12,912 12,674 16,129 $ 489,954 $ 442,464 $ 434,541 $ 437,075 $ 130,792 $ 122,858 $ 112,643 $ 114,041 39,271 36,411 33,787 32,760 26,529 24,094 23,208 21,545 4,402 4,771 3,764 4,439 11,333 10,416 10,306 10,111 212,327 198,550 183,708 182,896 S 702,281 $ 641,014 $ 618.249 $ 619,971 $ 35,184 $ 34,240 $ 34,662 $ 36,080 25,276 25,227 21,765 19,735 4,880 1,094 959 1,045 8,393 8,685 7,943 8,416 1,230 4,237 2,661 3,667 26,387 35,521 31,444 20,921 36,818 29,986 28,945 28,280 138,168 138,990 128,379 118,144 $ 123,856 $ 116,645 $ 107,924 $ 109,176 41,918 39,121 35,368 34,585 13,161 12,327 9,922 10,335 3,073 3,350 2,589 3,021 1,225 1,719 1,641 1,450 4,435 5,142 3,077 3,914 25,367 21,165 30,662 24,953 213,035 199,469 191,183 187,434 351,203 338,459 319,562 305,578 (351,786) (303,474) (306,162) (318,931) 708 919 7,475 4,538 S (351,078) S (302.555) S (298.687) S (314.393) $ 281,136 $ 259,779 $ 244,404 $ 249,352 20,478 19,547 18,556 18,229 40,659 38,573 35,786 32,168 21,838 21,188 19,137 16,183 7,280 7,322 7,840 9,403 11,100 10,589 9,657 8,792 4,891 5,069 2,599 1,496 5,976 17,510 13,333 9,063 (14,250) (14,192) (13,185) (13,912) S 379,108 S 365,385 S 338.127 S 330,774 $ 2,011 $ 2,209 $ 1,301 $ 712 200 94 68 154 14,250 14,192 13,184 13,912 16,461 16,495 14,553 14,778 S 395.569 S 381,880 S 352,680 S 345,552 $ 27,322 $ 61,911 $ 31,965 $ 11,843 17,169 17,414 22,028 19,316 $ 44,491 $ 79,325 $ 53,993 $ 31,159 163 COLLIER COUNTY, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal roperty Gas Sales Infrastructure Tourist Other Year Tax Tax Tax Sales Tax Tax Taxes Total 2013 $ 249,352 $ 18,229 $ 32,168 $ $ 16,183 $ 9,403 $ 325,335 2014 244,404 18,556 35,786 19,137 7,840 325,723 2015 259,779 19,547 38,573 21,188 7,322 346,409 2016 281,136 20,478 40,659 21,838 7,280 371,391 2017 312,633 21,799 41,799 21,961 7,478 405,670 2018 337,447 22,749 44,093 27,962 6,914 439,165 2019 356,099 24,485 49,550 60,787 31,653 7,140 529,714 2020 376,140 21,005 45,228 81,735 26,062 6,438 556,608 2021 400,607 22,920 55,732 99,588 36,192 6,289 621,328 2022 447,901 24,196 65,043 120,376 47,470 6,658 711,644 164 COLLIER COUNTY, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 General fund Nonspendable $ 3,811 $ 2,785 $ 2,779 $ 2,383 $ 2,645 $ 3,386 $ 3,675 $ 3,546 $ 19,843 $ 15,744 Restricted 197 580 1,087 461 306 2,440 264 345 125 96 Assigned 35,243 12,281 11,664 1,115 1,736 1,598 1,674 1,299 850 813 Unassigned 114,549 117,116 104,299 103,707 77,342 54,805 53,961 55,002 57,781 56,497 Total general fund $ 153, 000 $ 1 22,762 $ 1 99,829 $ 1 77,666 $ 82,029 $ 22,229 $ 59,574 $ 00,192 $ 88,599 $ 33,150 All other governmental funds Nonspendable $ 6,993 $ 6,623 $ 3,490 $ 2,887 $ 8,135 $ 2,385 $ 3,055 $ 3,112 $ 53,544 $ 46,049 Restricted 822,398 722,297 560,480 522,311 354,514 328,447 324,334 293,281 242,981 223,700 Committed 48,432 44,582 41,517 40,355 34,788 32,759 26,069 25,663 27,349 29,810 Assigned 110,481 84,392 52,613 31,977 21,129 33,822 28,644 30,800 28,391 36,364 Unassigned (1,636) - - - (246) - (89) (514) (62,085) (55,212) Total all other governmental funds $ 986,668 $ 857,894 $ 658,100 $ 597,530 $ 418,320 $ 397,413 $ 382,013 $ 352,342 $ 290,180 $ 280,711 165 COLLIER COUNTY, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest Redemption of debt Other fiscal charges Capital outlay Total expenditures Excess of revenues over expenditures Other financing sources (uses): Bondsissued Loansissued Refunding loans issued Premiums on bonds issued Discount on loans issued Payment to refunding escrow Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year 2022 2021 2020 2019 2018 2017 $ 637,798 $ 556,387 $ 503,593 $ 471,127 $ 386,814 $ 355,885 87,077 79,468 68,989 78,182 75,102 59,217 159,873 174,230 96,684 100,191 92,206 86,656 44,586 38,570 34,959 37,255 36,981 34,008 2,498 2,567 2,334 2,491 2,375 2,263 (51,856) 1,575 13,178 22,046 6,133 3,233 15,228 5,610 5,619 7,452 4,789 4,350 6,454 11,851 6,799 5,566 4,527 8,705 901,658 870,258 732,155 724,310 608,927 554,317 118,232 109,729 108,008 103,445 101,198 89,193 247,700 226,655 219,808 213,829 198,097 197,762 25,747 21,050 20,986 23,728 31,994 12,465 59,272 53,788 53,316 45,245 45,904 41,003 40,858 13,824 9,395 8,378 9,942 8,199 25,208 77,191 20,242 17,005 15,849 15,058 56,473 49,493 46,246 48,793 47,671 42,889 28,761 31,084 26,507 23,127 21,864 21,439 13,519 13,151 12,731 11,521 10,165 11,908 - 10,000 - - - 5,588 171 1,084 21 801 128 48 127,836 164,344 129,056 107,881 82,871 80,495 743,777 771,393 646,316 603,753 565,683 526,047 157,881 98,865 85,839 120,557 43,244 28,270 - 99,175 62,965 - 1,000 - 28,060 12,000 - 108,425 - - 43,713 5,293 - 16,925 3,238 - - (189) - - (108,044) - - (44,525) 865 2,658 358 - - - 4,662 337 712 376 1,065 155 842 4,157 2,104 6,416 3,762 339 185,203 236,502 144,991 140,633 114,358 117,833 (200,834) (246,785) (161,271) (157,399) (132,910) (133,834) (8,070) 112,969 (13,106) 84,289 (2,537) (10,214) $ 149,811 $ 111,834 $ 72,733 $ 204,846 $ 40,707 $ 18,056 6.86% 7.41 % 7.59% 6.99% 6.63% 7.58% 166 Fiscal Year 2016 2015 2014 2013 $ 322,915 $ 300,341 $ 282,315 $ 285,765 61,033 51,319 40,631 35,168 83,949 92,818 89,392 83,667 38,362 37,172 35,149 32,435 2,708 2,866 3,252 3,712 4,440 4,606 2,393 1,406 3,746 3,132 2,922 2,924 6,600 16,063 11,553 4,833 523,753 508,317 467,607 449,910 84,599 78,147 73,739 75,725 177,375 167,788 163,169 153,566 15,283 16,157 11,276 13,790 36,011 36,992 38,789 37,170 11,061 9,159 9,265 14,436 14,038 13,151 12,367 12,254 40,886 37,523 34,114 33,744 20,743 20,039 18,510 25,125 12,713 13,555 14,177 17,565 19 21 173 2,165 67,198 62,186 63,613 61,278 479,926 454,718 441,278 446,950 43,827 53,599 26,329 2,960 73,805 89,780 - - 2,082 - (89,622) (73,747) - 1,915 - - 306 595 314 233 796 379 316 300 121,654 196,026 97,854 90,637 (137,530) (208,760) (110,052) (102,061) (14,774) (9,845) (11,410) (8,751) $ 29,053 $ 43,754 $ 14,919 $ (5,791) 8.11 % 8.56% 8.66% 11.07% 167 COLLIER COUNTY, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Year Government Ended Residential Commercial Institutional and Industrial September 30 Property Property Other Property Property 2013 $ 55,738,290 $ 3,785,006 $ 4,337,007 $ 609,058 2014 57,656,527 3,912,768 4,523,093 629,143 2015 61,457,718 4,082,445 4,692,490 651,646 2016 66,559,709 4,377,974 5,067,190 682,762 2017 73,334,846 4,681,110 5,252,880 763,216 2018 79,459,537 5,047,802 5,438,701 841,128 2019 83,819,751 5,360,190 5,681,034 923,980 2020 87,951,024 6,001,743 5,936,391 1,073,086 2021 93,113,447 6,691,606 6,257,252 1,195,303 2022 98,746,606 6,636,506 6,516,129 1,274,347 Agricultural Property Personal Property $ 261,964 $ 2,240,098 266,888 2,200,895 268,161 2,186,145 282,725 2,353,841 282,376 2,342,953 280,507 2,448,008 283,625 2,534,892 282,370 2,619,748 276,441 2,755,010 292,672 2,835,230 Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year. (1) The basis of assessed value required by the state is 100% of actual value including tax exemptions. Source: Property Appraiser Recapitulation Report 168 Centrally Assessed Property Less: Tax Exempt Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value Assessed Value as a Percentage of Actual Value(') $ 184 $ 8,473,811 $ 58,497,796 4.4126 $ 66,971,607 100% 152 8,539,822 60,649,644 4.1592 69,189,466 100% 195 8,741,753 64,597,047 4.1582 73,338,800 100% 134 9,235,508 70,088,827 4.1572 79,324,335 100% 211 9,537,260 77,120,332 4.2029 86,657,592 100% 246 9,905,942 83,609,987 4.1851 93,515,929 100% 244 10,317,449 88,286,267 4.1827 98,603,716 100% 232 10,676,611 93,187,983 4.1876 103,864,594 100% 221 11,121,148 99,168,132 4.1906 110,289,280 100% 193 11,622,676 104,679,007 4.4407 116,301,683 100% 169 COLLIER COUNTY, FLORIDA PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (unaudited) Collier County Other Special Debt Capital Fiscal General Revenue Service Project Collier County Independent Year Fund Funds Funds Funds Total School District Districts Total 2013 3.5645 0.7555 0.0926 0.0000 4.4126 5.5760 1.2395 11.2281 2014 3.5645 0.5873 0.0074 0.0000 4.1592 5.6900 1.2228 11.0720 2015 3.5645 0.5860 0.0077 0.0000 4.1582 5.5800 1.1853 10.9235 2016 3.5645 0.5856 0.0071 0.0000 4.1572 5.4800 1.1331 10.7703 2017 3.5645 0.6323 0.0061 0.0000 4.2029 5.2450 1.1138 10.5617 2018 3.5645 0.6145 0.0061 0.0000 4.1851 5.1220 1.2375 10.5446 2019 3.5645 0.6122 0.0060 0.0000 4.1827 5.0490 1.2331 10.4648 2020 3.5645 0.6172 0.0059 0.0000 4.1876 5.0830 1.2272 10.4978 2021 3.5645 0.6202 0.0058 0.0001 4.1906 5.0160 1.2262 10.4328 2022 3.5645 0.8761 0.0000 0.0001 4.4407 4.4590 1.2155 10.1152 Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year. Sources: Property Appraiser Recapitulation Report Collier County Adopted Budget 170 HHR Naples, LLC The Moorings, Inc. Naples Beach Club Land Trust, Inc. Marco Hotel, LLC PR Mercato, LLP Naples Beach Club Land Trust 1, Inc. Res Florida 1250 Holding, LLC Continental 422 Fund, LLC PRCP Florida Naples Edge75, LLC Naples Livingston, LLC Florida Power & Light Company Lee County Electric Co -Op, Inc. City National Bank of Miami Century Link Naples HMA, Inc. Wal-Mart Stores East, LP Coastland Center, LLC COLLIER COUNTY, FLORIDA PRINCIPAL TAXPAYERS COUNTY -WIDE 2022 TAX ROLL (unaudited) 2022 Property Taxes Levied 1,847,614 1,597,082 1,557,065 1,401,145 1,369,379 1,195,164 1,090,966 1,073,296 1,025,039 1,012,257 Total $ 13,169,007 Total Property Taxes Levied - County -Wide $ 1,320,519,122 Amounts for taxpayers with similar names have not been combined. Sources: Property Appraiser's taxpayer listing in order of taxes levied. Property Appraiser Recapitulation Report. Rank 1 3 4 5 6 7 8 9 10 013 Percent of Total Taxes Levied Property Taxes Levied Rank Percent of Total Taxes Levied 0.14% $ 1,533,564 2 .22% .12% 1,062,613 3 0.15% 0.12% - 0.00% 0.11 % - 0.00% 0.10% 692,331 8 0.10% 0.09% - 0.00% 0.08% 0.00% 0.08% 0.00% 0.08% 0.00% 0.08% - 0.00% 0.00% 2,689,272 .38 % 0.00% 921,099 4 0.13% 0.00% 910,972 .13% 0.00% 804,841 5 0.11 % 0.00% 716,671 7 0.10% 0.00% 681,166 9 0.10% 0.00% 680,031 10 0.10% 1.00% $ 10,692,560 1.52% $ 702,431,482 171 COLLIER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Year Total County Tax Collected within the Total County Tax Ended Levy for Fiscal Year of the Levy Levy Cost September 30 Populations') Fiscal Year Amount Percentage of Levy Per Person 2013 333,663 $ 258,650 $ 248,648 96.3% $ 775 2014 336,783 252,323 243,084 96.5 % 749 2015 343,802 268,604 259,121 96.5% 781 2016 350,202 291,369 281,114 96.4% 832 2017 357,470 324,123 312,507 96.4% 907 2018 367,347 349,928 337,361 96.4% 953 2019 376,706 369,257 356,075 96.4% 980 2020 375,752 390,115 376,086 96.4% 1,038 2021 382,680 415,635 400,531 96.4% 1,086 2022 390,912 464,860 447,901 96.4% 1,189 Property taxes levied apply only to General, Special Revenue, Debt Service Funds and Capital Projects Funds Property tax levies are based on assessed values as of January 1 st and become due and payable on November 1 st of each year. A four percent discount is allowed if the taxes are paid by November 30, with the discount declining by one percent each month thereafter. Accordingly, taxes collected are not 100 percent of the amount levied. Taxes become delinquent on April 1 st of each year and tax certificates for the unpaid taxes must be sold no later than June 1 st of each year. Property taxes receivable and a corresponding reserve for uncollectible property taxes are not included in the financial statements as there are no significant delinquent taxes as of September 30, 2022. Sources: (1) https://www.bebr.ufl.edu/population/population-data-archive/ (2) Property Appraiser Recapitulation Report 172 COLLIER COUNTY, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities Business -type Activities Limited Direct Direct General Placement Placement Total Percentage Fiscal Obligation Revenue Loans and Other Loans Revenue Loans and Other Loans Primary of Personal Per Year BondsM Bonds() Notes Payable and Leases(3) Bonds(') Notes PayableM and Leases(3) Government Income(2) Capita(2) 2013 $ 4,664 $ 373,371 $ 7,923 $ 323 $ 83,498 $ 23,067 $ 111,827 $ 604,673 2.50% $ 1,812 2014 4,223 277,885 96,861 230 78,470 17,100 114,235 589,004 2.47% 1,749 2015 3,369 259,563 95,116 1519 60,976 28,714 105,549 554,806 2.05% 1,614 2016 2,941 246,135 87,360 937 59,954 24,727 96,954 519,008 1.74% 1,482 2017 2,499 232,147 79,227 316 59,351 108,278 931 482,749 1.53% 1,350 2018 2,037 175,975 102,930 236 58,748 129,141 587 469,654 1.38% 1,278 2019 1,560 226,896 145,952 153 139,382 113,576 239 627,758 1.65% 1,666 2020 1,063 209,822 136,549 7,311 138,524 98,165 957 592,391 1.44% 1,577 2021 - 309,856 111,582 7,425 297,456 82,476 703 809,498 1.91% 2,115 2022 - 178,680 208,979 8,309 293,299 67,624 677 757,568 1.66% 1,938 (1) Amounts include the unamortized premium or discount. (2) See the Schedule of Demographic and Economic Statistics for personal income and population data (3) Collier County adopted GASB Statement No. 87, Leases in the 2020 fiscal year. (4) Does not include private development note payable. 173 COLLIER COUNTY, FLORIDA LEGAL DEBT MARGIN INFORMATION As Of September 30, 2022 (unaudited) The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. DIRECT, OVERLAPPING AND UNDERLYING DEBT As of September 30, 2022 (unaudited) Direct Debt: Governmental Activities Gas Tax Revenue Bonds (1) Special Obligation Revenue Bonds (1,3) Tourist Development Tax Revenue Bonds (1) Direct Placement Loans and Notes Payable (1,3) Leases and Other Loans (3) Total Governmental Activities Direct Debt Overlapping Debt: N/A Underlying Debt: City of Naples (4) City of Marco Island (5) City of Everglades (6) Subtotal, Underlying Debt Total Direct, Overlapping and Underlying Debt Debt Outstanding Estimated Percentage Applicable Based on Population(2) Estimated Share of Overlapping Debt $ 4,048,871 100.00% $ 4,048,871 112,119,573 100.00% 112,119,573 62,511,582 100.00% 62,511,582 208,978,732 100.00% 208,978,732 8,309,013 100.00% 8,309,013 395,967,771 395,967,771 0.00% 2,116,685 4.93% 104,353 16,984,908 4.12% 699,778 - 0.00% - 19,101,593 9.05% 804,131 $ 415,069,364 $ 396,771,902 (1) Amounts include the unamortized premium or discount. (2) Population numbers obtained from University of Florida Bureau of Economic and Business Research. (3) Totals consist of more than one issuance. (4) Governmental activities debt outstanding amount obtained from the City of Naples. (5) Governmental activities debt outstanding amount obtained from the City of Marco Island. (6) Governmental activities debt outstanding amount obtained from the City of Everglades. 174 COLLIER COUNTY, FLORIDA PLEDGED -REVENUE COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities: Gas Tax Bonds and Direct Placement Loans Special Obligation Bonds and Direct Placement Loans(') Legally Available Gas Non -Ad Fiscal Tax Debt Service Valorem Debt Service Year Collections Principal Interest CoverageM Collections(2) Principal Interest CoverageM 2013 $ 18,229 $ 7,855 $ 6,453 1.27 $ 86,640 $ 9,695 $ 7,249 5.11 2014 18,556 8,040 4,018 1.54 91,043 9,145 9,674 4.84 2015 19,547 9,440 3,697 1.49 102,375 8,885 9,426 5.59 2016 20,478 9,900 3,242 1.56 107,268 9,280 9,020 5.86 2017 21,799 10,195 2,939 1.66 108,577 9,705 8,591 5.93 2018 22,749 10,510 2,737 1.72 118,725 10,258 7,012 6.87 2019 22,709 10,830 2,542 1.70 125,162 10,865 7,191 6.93 2020 21,005 11,170 2,178 1.57 124,638 11,362 7,244 6.70 2021 22,920 11,515 1,802 1.72 129,594 11,841 8,458 6.38 2022 24,196 11,875 1,413 1.82 152,914 14,798 9,354 6.33 Business -type Activities: Water and Sewer Revenue Bonds and Direct Placement Loans Water/ Sewer ess: Net Fiscal Charges Operating Available Debt Service Year and Other(4) Expenses(5) Revenue Principal Interest CoverageM 2013 $ 105,682 $ 68,916 $ 36,766 $ 5,422 $ 6,268 3.15 2014 109,514 69,710 39,804 5,967 3,986 4.00 2015 118,066 74,344 43,722 6,073 3,639 4.50 2016 125,456 84,474 40,982 3,986 2,841 6.00 2017 136,064 97,904 38,160 3,902 2,818 5.68 2018 155,847 90,507 65,340 5,528 3,050 7.62 2019 163,653 98,281 65,372 6,261 4,091 6.31 2020 169,444 100,866 68,578 6,384 6,189 5.45 2021 170,927 106,913 64,014 6,500 6,066 5.09 2022 160,302 113,392 46,910 9,016 10,959 2.35 Gas Tax Collections divided by annual total debt service requirements for the respective fiscal year. (z)The revenues that comprise the legally available non -ad valorem revenues are defined by bond documents; these revenues include Sales Tax and certain impact fees and are averaged over two fiscal years. (3) Legally Available Non -Ad Valorem Collections divided by annual total debt service requirements for the respective fiscal year. Current year collections are $168,095,843. (4) Operating revenues plus other income; certain interest earnings, gain on disposal of assets, capital grants and contributions and transfers in are not included. (')Total operating expenses, excluding depreciation and amortization; loss on disposal of assets, interest expense and transfers out are not included. (') Net available revenue divided by annual total senior lien debt service requirements for the County Water and Sewer District. Coverage must beat least 1.00. 175 COLLIER COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years (unaudited) Per Capita Fiscal Personal Personal Median School Unemployment Year Population(') Income(2) Income Age(3) Enrollment() Rate(s) 2013 333,663 $ 24,142,507,000 $72,356 47.1 43,789 7.2% 2014 336,783 23,834,645,000 70,772 47.6 44,415 6.3% 2015 343,802 27,082,008,000 78,772 48.0 45,228 5.2% 2016 350,202 29,889,525,000 85,349 48.5 47,289 4.9% 2017 357,470 31,512,180,000 88,153 49.2 49,394 3.6% 2018 367,347 33,958,713,000 92,443 49.7 47,934 3.3 % 2019 376,706 38,058,323,000 101,029 50.3 48,441 3.2% 2020 375,752 41,014,314,000 109,153 50.8 47,048 5.7% 2021 382,680 42,413,331,000 110,832 51.3 48,838 3.6% 2022 390,912 45,539,558,000 116,496 51.5 49,692 2.8% Sources: (1) httns.-//wwwbebr.ufl.edu/population/population-data-archive/ (2) fred.stlouisfed.org/series/P112021 (3) fred.stlouisfed.org/series/801002001E012021 (4) collierschools.com/Page/349 (5) floridajobs.org 176 Collier County Public Schools NCH Healthcare System Arthex, Inc. Publix Supermarkets Collier County Government (excl. Sheriff) Collier County Sheriffs Office Ritz Carlton Hotel JW Marriott- Marco Island Seminole Casino - Immokalee City of Naples Gargiulo, Inc. Hometown Inspection Svs. Waldorf Astoria (Registry Resort) Other employers Totals COLLIER COUNTY, FLORIDA PRINCIPAL EMPLOYERS (unaudited) 2022 2013 Percent of Percent of Total County Total County Employees Rank Employment Employees Rank Employment 5,704 1 3.61 % 5,288 1 4.69 % 4,113 2 2.61% 4,000 2 3.55% 3,605 3 2.28% 1,056 5 0.94% 3,100 4 1.96% 800 9 0.71% 2,545 5 1.61% 2,157 3 1.91% 1,446 6 0.92% 1,867 4 1.66% 1,100 7 0.70% 1,100 6 0.98% 1,089 8 0.69% 900 9 0.57% 510 10 0.32% 1,100 7 0.98% 900 8 0.80% 760 10 0.67% 133,789 84.73% 93,650 83.11 % 157,901 100.00 % 112,678 100.00 % Sources: Southwest Florida Economic Development Alliance Collier County Public Schools NCH Healthcare System Publix Corporate Office Arthrex,Inc. 177 Function: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Water and Sewer Solid Waste Emergency Medical Services Airport Authority Collier Area Transit Total COLLIER COUNTY, FLORIDA BUDGETED FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1) Last Ten Fiscal Years (unaudited) Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 1,434 1,374 1,366 1,342 1,299 1,351 1,262 1,217 1,216 1,203 1,104 1,111 1,100 1,080 1,089 1,112 1,124 1,096 1,072 1,061 97 94 90 80 73 73 70 69 67 67 232 233 235 228 224 219 211 192 187 187 31 26 27 31 30 29 26 27 28 26 70 70 61 58 58 58 56 56 53 51 354 370 340 347 337 324 304 298 294 289 467 434 438 436 414 410 384 342 340 342 44 45 44 45 43 31 28 27 28 29 202 202 202 202 199 194 193 193 172 172 17 15 15 15 15 15 15 14 14 16 5 5 5 5 5 4 4 3 3 3 4,057 3,979 3,923 3,869 3,786 3,820 3,677 3,534 3,474 3,446 (') Includes the Board of County Commissioners and the Constitutional Officers 178 COLLIER COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Function: Police: Physical arrests 7,285 6,519 6,227 9,072 9,266 8,269 9,359 9,347 9,418 8,775 Parking violations 429 362 333 817 894 1,068 867 931 964 1,182 Traffic violations 32,146 24,674 22,370 26,773 17,157 15,473 14,462 16,355 19,868 22,211 Fire: Fires reported ** ** ** ** ** ** 31 82 37 52 Emergency responses (exclude fires) ** ** ** ** ** ** 839 1,093 1,080 1,024 Number of calls answered 737 886 680 870 804 795 870 1,175 1,117 1,076 Transportation: Collier Area Transit ridership 662,396 649,391 723,423 913,569 944,931 996,687 1,082,519 1,177,029 1,181,530 1,361,294 Street resurfacing (lane miles) 93 42 34 43 40 38 34 34 80 78 Culture and recreation: Beach parking stickers issued 150,078 144,254 131,645 146,500 143,500 149,490 139,828 134,051 181,878 122,415 Library circulation 2,063,261 2,554,082 2,080,277 2,471,878 2,253,555 2,193,351 2,349,418 2,302,017 2,578,588 2,578,589 Water: New connections 2,368 2,864 2,031 2,297 2,776 1,951 2,023 2,204 1,878 1,417 Wastewater: Average daily sewage treatment 22,220 21,603 21,015 20,426 18,030 18,555 17,866 17,231 16,200 17,080 (millions of gallons) ** -Due to the consolidation of Fire Districts, this information is no longer being tracked. Sources: Police -Collier County Sheriff's Department Fire -Collier County Bureau of Emergency Services, Greater Naples Fire District Transportation -Collier County Alternative Transportation and Road and Bridge Departments Culture and Recreation -Collier County Parks and Recreation and Public Library Departments Water -Collier County Utility Billing Department Wastewater -Collier County Wastewater Department 179 COLLIER COUNTY, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Function: Public Safety: Police stations 7 7 7 7 7 7 7 7 7 7 Patrol units 268 273 273 272 272 270 274 276 276 275 Fire: Fire stations 4 4 4 4 4 4 4 4 4 3 Highways and streets: Streets* (miles) 1,170 1,167 1,172 1,169 1,166 1,161 1,159 1,149 1,151 1,184 Streetlights 5,412 5,378 5,364 4,635 5,083 5,074 5,182 4,958 4,958 4,868 Traffic signals 382 381 377 377 377 374 365 360 370 353 Culture and recreation: Parks acreage 1,524 1,561 1,560 1,521 1,521 1,521 1,521 1,521 1,521 1,521 Parks 67 66 66 61 61 61 61 61 61 61 Swimming pools 11 9 9 9 9 8 8 8 8 8 Tennis courts 42 40 40 45 45 45 45 45 45 45 Community centers 10 9 9 9 9 9 9 9 8 8 Libraries 10 10 10 10 10 10 10 10 10 10 Number of volumes in libraries 699,760 653,726 659,112 663,811 593,378 557,188 567,248 605,408 683,237 692,229 Water: Number of customers 82,790 81,339 75,837 73,854 71,614 66,010 61,830 59,443 57,548 55,878 Water mains (miles) 1,205 1,191 1,166 1,149 1132 1067 1015 986 925 888 Maximum daily capacity (per million gallons) 34,811 32,726 33,658 32,113 30,956 32,243 33,877 31,376 30,460 30,120 Wastewater: Sanitary sewers (miles) 1,212 1,201 1,186 1,181 1,156 1,085 1,021 1,028 1,030 1,081 Primary and secondary drainage facilities 330 325 325 322 312 289 294 306 306 305 Sources: Police -Collier County Sheriff's Department Fire -Collier County Bureau of Emergency Services Department Highway and Streets -Collier County Traffic Operations, Transportation Engineering and Road and Bridge Departments Culture and Recreation -Collier County Parks and Recreation and Public Library Departments Water -Collier County Water and Utility Billing Departments Wastewater -Collier County Stormwater and Wastewater Departments 180 Single Audit 11:IPyTe[HMION1:10IN[670MAN aIII anQW_\01:/ �TVJWA CliftonLarsonAllen LLP CLAconnect.conn INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated April 21, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Sec CLAglobal.com/disclaimer 183 Honorable Board of County Commissioners Collier County, Florida Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida April 21, 2023 184 PAW CliftonLarsonAllen LLP CLAconnect.conn INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project Opinion on Each Major Federal Program and State Project We have audited Collier County, Florida's (the County) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement and the requirements described in the State of Florida Department of Financial Services' State Projects Compliance Supplement that could have a direct and material effect on each of the County's major federal programs and state projects for the year ended September 30, 2022. The County's major federal programs and state projects are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. In our opinion, the County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2022. Basis for Opinion on Each Major Federal Program and State Project We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General Local Governmental Entity Audits (Chapter 10.550). Our responsibilities under those standards and the Uniform Guidance, and Chapter 10.550 are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program and state project. Our audit does not provide a legal determination of the County's compliance with the compliance requirements referred to above. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Sec CLAglobal.com/disclaimer 185 Honorable Board of County Commissioners Collier County, Florida Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the County's federal programs and state projects. Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the County's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GARS, Government Auditing Standards, the Uniform Guidance, and Chapter 10.550 will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the County's compliance with the requirements of each major federal program and state project as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, the Uniform Guidance, and Chapter 10.550, we: • exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the County's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • obtain an understanding of the County's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over Honorable Board of County Commissioners Collier County, Florida compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida April 21, 2023 187 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 FEDERAL AGENCY ASSISTANCE GRANT/CONTRACT PASS -THROUGH ENTITY LISTING IDENTIFYING FEDERAL PROGRAM NUMBER NUMBER FEDERAL AWARDS U.S. Department of Housing and Urban Development Direct Programs: Assistant Secretary for Community Planning and Development: CDBG - Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Total Assistance Listing Total CDBG - Entitlement Grants Cluster Emergency Solutions Grant Program COVID-19 - Emergency Solutions Grant Program Emergency Solutions Grant Program Total Assistance Listing Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program COVID-19 - Home Investment Partnerships Program Total Assistance Listing Total U.S. Department of Housing and Urban Development U.S. Department of the Interior Direct Programs: Departmental Offices: Payments in Lieu of Taxes U.S. Fish and Wildlife Service: National Wildlife Refuge Fund Total U.S. Department of the Interior U.S. Department of Justice Direct Programs: Office of Community Oriented Policing Service: Public Safety Partnership and Community Policing Grants Office of Justice Programs: COVID-19 - Coronavirus Emergency Supplemental Funding Program Drug Court Discretionary Grant Program STOP School Violence STOP School Violence Total Assistance Listing Edward Byrne Memorial Justice Assistance Grant Program Edward Byrne Memorial Justice Assistance Grant Program Pass -Through Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program Total Assistance Listing Florida Office of the Attorney General: Florida Department of Legal Affairs: Crime Victim Assistance TRANSFERS TO EXPENDITURES SUBRECIPIENTS 14.218 B-17-UC-12-0016 $ 31,721 $ 31,721 14.218 B-18-UC-12-0016 94,335 - 14.218 B-19-UC-12-0016 253,677 40,465 14.218 B-20-UC-12-0016 1,201,632 1,093,745 14.218 B-20-UW-12-0016 387,101 272,273 14.218 B-21-UC-12-0016 1,099,196 750,869 3,067,662 2,189,073 3,067,662 2,189,073 14.231 E-20-UC-12-0016 64,530 63,568 14.231 E-20-UW-12-0016 2,185,431 2,042,198 14.231 E-21-UC-12-0016 126,743 110,409 2,376,704 2,216,175 14.239 M16-UC120217 153,457 153,457 14.239 M18-UC120217 370,869 370,869 14.239 M19-UC120217 409,570 409,463 14.239 M20-UC120217 57,951 29,688 14.239 M21-UC120217 69,017 - 14.239 M21-UP120217 3,375 - 1,064,239 963,477 6,508,605 5,368,725 15.226 Collier County 1,504,100 - 15.659 Collier County 140,199 - 1,644,299 - 16.710 202OULWX0029 212,026 - 16.034 2020-VD-BX-1629 657 - 16.585 2020-DC-BX-0138 102,839 94,505 16.839 2018-YS-BX-0011 58,608 - 16.839 2019-YS-BX-0107 37,237 - 95,845 16.738 1SPBJA-21-GG-01326-JAGX 4,460 - 16.738 2020-DJ-BX-0131 62,299 - 16.738 2022-JAGC-COLL-I-3B-152 65,212 131,971 VOCA-2021-Collier County 16.575 Sheriff's-00624 185,819 (Continued) See accompanying Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance. 188 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 FEDERAL AGENCY PASS -THROUGH ENTITY FEDERAL PROGRAM ASSISTANCE LISTING NUMBER GRANT/CONTRACT IDENTIFYING NUMBER EXPENDITURES TRANSFERS TO SUBRECIPIENTS FEDERAL AWARDS (Continued) Institute for Intergovernmental Research (IIR): Comprehensive Opioid, Stimulant, and Substance Abuse Program 16.838 2020-BRIDGES-0063 $ 50,914 $ 48,601 Total U.S. Department of Justice 780,071 143,106 U.S. Department of Transportation Direct Programs: Federal Aviation Administration: Airport Improvement Program, COVID-19 Airports Programs, and Infrastructure Investment and lobs Act Programs 20.106 3-12-0021-006-2021 1,997,375 - COVID-19 -Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0031-015-2021 8,403 - COVID-19 -Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0031-016-2022 16,359 - COVID-19 - Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0142-014-2021 14,799 - COVID-19 - Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0142-015-2022 39,413 - Airport Improvement Program, COVID-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0142-016-2022 16,285 - Total Assistance Listing 2,092,634 - Federal Transit Administration: Federal Transit Cluster: Federal Transit Formula Grants 20.507 FL-90-X853-00 90,236 - Federal Transit Formula Grants 20.507 FL-95-XO62-00 134,812 - Federal Transit Formula Grants 20.507 FL-95-XO85-00 10,139 - Federal Transit Formula Grants 20.507 FL-95-XO86-00 38,972 - Federal Transit Formula Grants 20.507 FL-2016-056-00 24,190 - Federal Transit Formula Grants 20.507 FL-2017-035-00 20,103 - Federal Transit Formula Grants 20.507 FL-2017-044-00 30,555 - Federal Transit Formula Grants 20.507 FL-2017-055-00 4,865 - Federal Transit Formula Grants 20.507 FL-2018-024-00 39,487 - Federal Transit Formula Grants 20.507 FL-2018-025-00 147,295 - Federal Transit Formula Grants 20.507 FL-2018-034-00 21,625 - Federal Transit Formula Grants 20.507 FL-2018-098-00 452 - Federal Transit Formula Grants 20.507 FL-2019-041-00 8,399 - Federal Transit Formula Grants 20.507 FL-2019-088-00 420,217 - COVID-19 - Federal Transit Formula Grants 20.507 FL-2020-046-00 2,949,512 - Federal Transit Formula Grants 20.507 FL-2020-063-00 39,535 - Federal Transit Formula Grants 20.507 FL-2020-091-00 466,732 - Federal Transit Formula Grants 20.507 FL-2020-103-00 1,910,365 - Federal Transit Formula Grants 20.507 FL-2020-115-00 76,258 - Federal Transit Formula Grants 20.507 FL-2022-005-00 867,796 - COVID-19 - Federal Transit Formula Grants 20.507 FL-2022-015-00 643,041 - Total Assistance Listing 7,944,586 - Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2018-008-00 11,000 - Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2018-084-00 94,086 - Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2019-097-00 7,722 - Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2021-033-00 2,000 - Total Assistance Listing 114,808 - Total Federal Transit Cluster 8,059,394 - Office of the Secretary: National Infrastructure Investments 20.933 693JJ32040007 545,161 - (Continued) 189 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 FEDERAL AGENCY PASS -THROUGH ENTITY FEDERAL PROGRAM ASSISTANCE LISTING NUMBER GRANT/CONTRACT IDENTIFYING NUMBER EXPENDITURES TRANSFERS TO SUBRECIPIENTS FEDERAL AWARDS (Continued) Pass -Through Programs: Florida Department of Transportation: Highway Planning and Construction Cluster: Highway Planning and Construction 20.205 G1609 $ 3,S81 $ - Highway Planning and Construction 20.205 G1M49 469,727 - Highway Planning and Construction 20.205 G1002 942,678 - Highway Planning and Construction 20.205 G2759 88 - Highway Planning and Construction 20.205 G2821 141,563 - Total Assistance Listing 1,557,637 - Total Highway Planning and Construction Cluster 1,557,637 - Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research 20.505 G1J00 16,174 - COVID-19 - Formula Grants for Rural Areas and Tribal Transit Program 20.509 G1M55 409,300 - Formula Grants for Rural Areas and Tribal Transit Program 20.509 G1S83 338,527 - Total Assistance Listing 747,827 - Transit Services Programs Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 G1V82 799 - Total Transit Services Programs Cluster 799 - Highway Safety Cluster: State and Community Highway Safety 20.600 G2098 50,566 - State and Community Highway Safety 20.600 G2364 45,924 - Total Assistance Listing 96,490 - Total Highway Safety Cluster 96,490 - Total U.S. Department of Transportation 13,116,116 - U.S. Department of the Treasury Direct Programs: Departmental Offices: COVID-19 - Emergency Rental Assistance Program 21.023 ERA0334 7,450,841 359,347 COVID-19 - Emergency Rental Assistance Program 21.023 ERAE0037 3,649,863 9,600 Total Assistance Listing 11,100,704 368,947 COVID-19-CoronavirusState and Local Fiscal Recovery Funds 21.027 STL-1155 / SLFRP3243 18,341,559 6,681,674 Total U.S. Department of the Treasury 29,442,263 7,050,621 Gulf Coast Ecosystem Restoration Council Pass -Through Programs: The Gulf Consortium: Gulf Coast Ecosystem Restoration Council Oil Spill Impact Program 87.052 200097221.01 85,588 - Total Gulf Coast Ecosystem Restoration Council 85,588 - Election Assistance Commission Pass -Through Programs: Florida Department of State and Secretary of State: 2018 HAVA Election Security Grants 90.404 22.e.es.300.CLA 32,752 - Total Election Assistance Commission 32,752 - U.S. Department of Health and Human Services Pass -Through Programs: Florida Department of Elder Affairs: Area Agency on Aging for Southwest Florida, Inc.: Aging Cluster: COVID-19 - Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 ARPA 203.22 506 - (Continued) 190 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 FEDERAL AGENCY ASSISTANCE GRANT/CONTRACT PASS -THROUGH ENTITY LISTING IDENTIFYING TRANSFERS TO FEDERAL PROGRAM NUMBER NUMBER EXPENDITURES SUBRECIPIENTS FEDERAL AWARDS (Continued) Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 OAA 203.21 $ 83,978 $ - Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 OAA 203.22 136,081 - Total Assistance Listing 220,565 - COVID-19 - Special Programs for the Aging, Title III, Part C, Nutrition Service 93.045 HCV21203.21 476 - Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.21 288,081 - Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.22 642,760 - Total Assistance Listing 931,317 - Nutrition Services Incentive Program 93.053 OAA 203.21 6,009 - Nutrition Services Incentive Program 93.053 OAA 203.22 45,942 - Total Assistance Listing 51,951 - TotalAgingCluster 1,203,833 - National Family Caregiver Support, Title III, Part E 93.052 OAA 203.21 43,822 - National Family Caregiver Support, Title III, Part E 93.052 OAA 203.22 86,763 - COVID-19 - National Family Caregiver Support, Title III, Part E 93.052 ARPA 203.22 1,744 - Total Assistance Listing 132,329 - Low -Income Home Energy Assistance 93.568 EHEAP 203.21 72,509 - COVID-19 - Low -Income Home Energy Assistance 93.568 EHEAP ARPA 203.22 25,257 - Total Assistance Listing 97,766 - Florida Department of Revenue: Child Support Enforcement 93.563 COC11 62,253 - Florida Developmental Disabilities Council, Inc.: Developmental Disabilities Basic Support and Advocacy Grants 93.630 1045TRP20 179 - Total U.S. Department of Health and Human Services 1,496,360 - Corporation for National and Community Service Direct Programs: AmeriCorps Seniors Retired and Senior Volunteer Program (RSVP) 94.002 94.002 21SRHFLO16 74,114 - Total Corporation for National and Community Service 74,114 - U.S. Executive Office of the President Direct Programs: High Intensity Drug Trafficking Areas Program 95.001 G19MI0015A 74 - High Intensity Drug Trafficking Areas Program 95.001 G20MI0015A 108,118 - High Intensity Drug Trafficking Areas Program 95.001 G21MI0015A 143,100 - High Intensity Drug Trafficking Areas Program 95.001 G22MI0015A 39,254 - Total U.S. Executive Office of the President 290,546 - U.S. Department of Homeland Security Pass -Through Programs: Executive Office of the Governor: Florida Division of Emergency Management: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Z0001 41,435 - Hazard Mitigation Grant 97.039 H0311 14,944 - COVID-19 - Emergency Management Performance Grants 97.042 G0245 13,918 - Emergency Management Performance Grants 97.042 G0267 111,424 - Total Assistance Listing 125,342 - FireManagementAssistanceGrant 97.046 D0056 1,988 - Homeland Security Grant Program 97.067 R0128 22,662 - Homeland Security Grant Program 97.067 R0271 51,057 - Homeland Security Grant Program 97.067 R0492 100,027 - Total Assistance Listing 173,746 - Total U.S. Department of Homeland Security 357,455 - TOTAL EXPENDITURES OF FEDERALAWARDS $ 53,828,169 $ 12,562,4S2 (Continued) 191 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 STATE AGENCY PASS -THROUGH ENTITY STATE PROJECT CSFA NUMBER GRANT/CONTRACT IDENTIFYING NUMBER TRANSFERS TO EXPENDITURES SUBRECIPIENTS STATE FINANCIAL ASSISTANCE Florida Executive Office of the Governor Direct Projects: Florida Division of Emergency Management: Emergency Management Programs 31.063 A0182 $ 105,806 $ - Total Florida Executive Office of the Governor 105,806 - Florida Department of Environmental Protection Direct Projects: Beach Management Funding Assistance Program 37.003 21CO1 2,801,094 - Statewide Water Quality Restoration Projects 37.039 LPA0008 224,403 - Statewide Water Quality Restoration Projects 37.039 LPA0154 111,708 - Total CSFA 336,111 - Total Florida Department of Environmental Protection 3,137,205 - Florida Housing Finance Corporation Direct Projects: State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2018-2019 101,642 - State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2019-2020 648,777 - State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2020-2021 269,105 - State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2021-2022 596,723 - Total Florida Housing Finance Corporation 1,616,247 - Florida Department of State and Secretary of State Direct Projects: State Aid to Libraries 45.030 18-ST-08 (614) - State Aid to Libraries 45.030 19-ST-08 333 - State Aid to Libraries 45.030 20-ST-08 209,712 - Total CSFA 209,431 - Acquisition, Restoration of Historic Porperties 45.032 20.h.sc.100.099 455,800 - Total Florida Department of State and Secretary of State 665,231 - Florida Department of Transportation Direct Projects: Florida Highway Beautification Grant Program 55.003 G1K22 103,522 - Florida Highway Beautification Grant Program 55.003 G1K23 78,631 - Total CSFA 182,153 - Aviation Grant Programs 55.004 GOE50 64,080 - Aviation Grant Programs 55.004 GOZ12 3,533,370 - Aviation Grant Programs 55.004 GOZ16 4,456 - Total CSFA 3,601,906 - Public Transit Block Grant Program 55.010 G2576 1,116,412 - Local Transportation Projects 55.039 GOT26 677 - Local Transportation Projects 55.039 G1A39 92,523 - Total CSFA 93,200 - Pass -Through Projects: Florida Commission forthe Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G1X61 486,994 - Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G2A00 173,188 - Total CSFA 660,182 - (Continued) 192 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 STATE AGENCY PASS -THROUGH ENTITY STATE PROJECT CSFA NUMBER GRANT/CONTRACT IDENTIFYING NUMBER EXPENDITURES TRANSFERS TO SUBRECIPIENTS STATE FINANCIAL ASSISTANCE (Continued) Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G1Y10 $ 23,720 $ - Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G2926 5,311 - Total CSFA 29,031 - Total Florida Department of Transportation 5,682,884 - Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 60.115 LH823 158,098 139,269 Total Florida Department of Children and Families 158,098 139,269 Florida Department of Health Direct Projects: County Grant Awards 64.005 C0011 4,242 - Total Florida Department of Health 4,242 - Florida Department of Elder Affairs Pass -Through Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly 65.001 HCE 203.21 11,640 - Home Care for the Elderly 65.001 HCE 203.22 3,465 - Total CSFA 15,105 - Alzheimer's Respite Services 65.004 ADI 203.21 394,353 - Alzheimer's Respite Services 65.004 ADI 203.22 136,851 - Total CSFA 531,204 - CommunityCarefortheElderly 65.010 CCE203.21 723,862 - Community Care for the Elderly 65.010 CCE 203.22 219,389 - Total CSFA 943,251 - Total Florida Department of Elder Affairs 1,489,560 - Florida Department of Management Services Direct Projects: Florida E911 Board: Prepaid Next Generation 911(NG911) State Grant Program 72.003 S17-21-02-11 128,090 - Total Florida Department of Management Services 128,090 - Florida Fish and Wildlife Conservation Commission Direct Projects: Derelict Vessel Removal Program 77.005 21085 14,455 - Derelict Vessel Removal Program 77.005 21222 64,030 - Total Florida Fish and Wildlife Conservation Commission 78,485 - TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 13,065,848 $ 139,269 193 COLLIER COUNTY, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 2022 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the Schedule) includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on the modified accrual basis of accounting for expenditures accounted for in the governmental funds and the accrual basis of accounting for expenditures in proprietary funds. Under the modified accrual basis, revenue is recognized if it is both measurable and available for use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if measurable. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Section 215.97, Florida Statutes. Therefore, some amounts presented in the Schedule may differ from amounts presented, or used in the preparation of, the basic financial statements for the fiscal year ended September 30, 2022. 2. Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the County. 3. Indirect Cost Rate The County has not elected to use the 10 percent de minimus cost rate allowed under the Uniform Guidance. 4. Negative Figures on the Schedule of Expenditures Negative expenditures reported in the Schedules of Expenditures of Federal Awards and State Financial Assistance are a result of corrections which reduced expenditures in one grant and increased expenditures in another grant or funding source. Although the current expenditures on a grant may be negative, the total of all expenditures on the grant is expected to be positive over its total period of performance. 5. Disaster Grants - Public Assistance (Presidentially Declared Disasters) (97.036) After a presidentially declared disaster, FEMA provides Disaster Grants — Public Assistance (Presidentially Declared Disasters) (Assistance Listing 97.036) to reimburse eligible costs associated with debris removal, emergency protective measures and the repair, restoration, reconstruction or replacement of public facilities or infrastructure damaged or destroyed. Reimbursements are provided in the form of cost -shared grants. Hurricane Irma (FEMA-4337-DR) made landfall in Collier County on September 10, 2017. $22,964 of the $41,434 reported on the Schedule were incurred in fiscal years 2017 through 2021. 194 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2022 SECTION I -SUMMARY OF AUDITORS' RESULTS Financial Statements Type of auditors' report issued? Internal control over financial reporting: • Material weakness(es) identified? • Significant deficiency(s) identified that are not considered to be material weaknesses? Noncompliance material to the financial statements noted? Federal Awards Section Internal control over major programs: • Material weakness(s) identified? • Significant deficiency(s) identified that are not considered to be material weaknesses? Type of auditors' report issued on compliance for major programs? Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Identification of major programs: AL Numbers 14.231 20.106 20.507, 20.526 21.023 21.027 Unmodified No None reported No No None reported Unmodified No Name of Federal Program or Cluster Emergency Solutions Grant Program Airport Improvement Program Federal Transit Cluster Emergency Rental Assistance Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between type A and type B programs Auditee qualified as low -risk auditee? $1,614,845 Irt 195 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2022 SECTION I - SUMMARY OF AUDITORS' RESULTS (CONTINUED) State Financial Assistance Section Internal control over major projects: • Material weakness(s) identified? No • Significant deficiency(s) identified that are not considered to be material weaknesses? None reported Type of auditors' report issued on compliance for major projects? Unmodified Any audit findings disclosed that are required to be reported in accordance with Chapter 10.557? No Identification of major State projects: State CSFA 37.003 55.004 65.010 Name of State Program or Cluster Beach Management Funding Assistance Program Aviation Grant Programs Community Care for the Elderly Dollar threshold used to distinguish between type A State projects $750,000 SECTION H -FINANCIAL STATEMENT FINDINGS Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. SECTION Ill - FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL PROGRAMS Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). SECTION IV - FINDINGS AND QUESTIONED COSTS — MAJOR STATE PROJECTS Our audit did not disclose any matters required to be reported in accordance with Rule 10.554(1)(1)4, Rules of the Florida Auditor General. 196 Clifton LarsonAllen LLP . CLAconnect.com MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, (County) as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated April 21, 2023. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditor's Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; and Independent Accountant's Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated April 21, 2023, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations made in the preceding financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information is included in the notes to the basic financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAelobal.com/disclaimer. Honorable Board of County Commissioners Collier County, Florida Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the County met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the County. It is management's responsibility to monitor the County's financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Specific Information (For a dependent special district or an independent special district, or a local government entity that includes the information of a dependent special district) As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Airport Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 17. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 17. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $1,415,315. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $250,577. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $16,451,638. Honorable Board of County Commissioners Collier County, Florida As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Community Redevelopment Agency reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 6. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 2. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $620,982. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $23,321. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $11,573,830. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Educational Facilities Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $1,000. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $0. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Health Facilities Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. Honorable Board of County Commissioners Collier County, Florida c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $4,500. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $0. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Housing Finance Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $7,500. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $0. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Industrial Development Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $7,500. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. 4 Honorable Board of County Commissioners Collier County, Florida A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $0. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Water -Sewer District reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 426. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 45. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $40,611,552. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $616,225. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: See Appendix A. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $340,707,337. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires provisions of contracts or grant agreements, or abuse, that occurred, that have an effect on the financial statements that attention of those charged with governance. In connection wi finding. Purpose of this Letter us to communicate noncompliance with have occurred, or are likely to have is less than material but warrants the th our audit, we did not note any such Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida April 21, 2023 N N 6 M L E ''W^ V/ J 0 0 0 0 0 0 0 0 0 0 0 ai ri id Uri o rri Uri c i od oo � Lr r oo mi � Lr oo v cf � O N O O l0 M W r4 r--I .1 rlJ +: C 0J E C a) O u Ld m Q Y (6 C L Y — 3 U car O Q) O a a)v Q) U � U y CL Q) cu Q) d C Y u U m � w —_ Q) Q! E LL U Y Y v o v N 0 N .� Y C C� �mCa_ EQ,4�� .v U �n N +� O !_' w O E C !' to c— i= O v L> O d O UL N T (6 a1 Q N C Q- D o vn Cl- v C 'O C a y Z M O t O- t t to '6 - C K j .s E> >to O ,� O O >Q� p to �: i Z CL W Z Z i (D w Q V V V U U U U U U U U .] Clifton LarsonAllen LLP . CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida's (the County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.173(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2022. Management of the County is responsible for the County's compliance with the specified requirements. Our responsibility is to express an opinion on the County's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the County's compliance with specified requirements. In our opinion, the County complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.173(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2022. This report is intended solely for the information and use of the County and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida April 21, 2023 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAelobal.com/disclaimer. 11:IPyTe[HMION1:10IN1610MAN aIII anQW_101:/ ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal year ended September 30, 2021. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios 11:IPyTe[HMION1:10IN1610MAN aIII anQW_101:/ TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2022 Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes $ 447,900,612 Governmental Impact Fees 55,322,733 Half Cent Sales Tax 65,042,976 Developmental Fees 33,787,177 State Revenue Sharing 17,758,152 5th Cent Local Option Gas Tax 6,658,706 6th Cent Local Option Gas Tax 8,730,806 Constitutional Gas Tax 4,842,557 Seventh Cent Gas Tax 2,110,817 Ninth Cent Gas Tax 1,852,992 Parks and Recreation Fees 7,951,718 Tourist Development Tax 47,470,485 Court Facilities Fees 1,027,832 Communications Services Tax 4,037,536 Total bondable revenues $ 704,495,099 Fiscal 2022 governmental debt service requirements: Series 2012 Gas Tax Bonds Principal: $ 3,615,000 Interest: 257,400 Series 2014 Gas Tax Bond (Direct Placement Loan) Principal: 8,260,000 Interest: 1,155,220 Series 2010B Special Obligation Bonds Principal: 2,630,000 Interest: 65,750 Series 2011 Special Obligation Bonds Principal: 7,145,000 Interest: 837,378 Series 2013 Special Obligation Bonds Principal: - Interest: 2,846,975 Series 2017 Special Obligation Bond (Direct Placement Loan) Principal: 2,583,000 Interest: 1,253,829 Series 2019 Taxable Special Obligation Bond (Direct Placement Loan) Principal: - Interest: 768,844 Series 2020A Special Obligation Bonds Principal: 165,000 Interest: 3,122,875 Series 2020E Taxable Special Obligation Bonds Principal: 2,275,000 Interest: 458,750 Series 2018 Tourist Development Tax Bonds Principal: 1,080,000 Interest: 2,638,000 Commercial Paper Program Principal: - Interest: 6,300 Total fiscal 2022 governmental debt service requirements $ 41,164,321 Governmental debt ratio of fiscal year 2022 debt service requirements to total bondable revenues (13.0% maximum allowed by County policy) 5.8% Notes: Debt service is based upon current amortization tables for the fiscal year indicated. Debt prepayments, if any, are not included as debt service requirements TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2022 Collier County Water and Sewer District: Total Sales Revenues $ 173,963,544 Miscellaneous Revenues 3,296,308 Total Operating Revenues 177,259,852 Non -Operating Revenues (16,957,715) Gross Revenues 160,302,137 Less: Operation and Maintenance Expense (excluding Depreciation and Amortization) 113,391,644 Net Revenues Available for Debt Service (1) $ 46,910,493 Total Fiscal Year 2022 Debt Service on Bonds (2) $ 19,974,700 Net Revenues Debt Service Coverage on Bonded Debt (100% Required) - (1/2) 235% Other Pledged Funds: System Development Fees (Impact Fees) $ 19,814,421 Total Pledged Funds Available for Debt Service (3) $ 66,724,914 Total Fiscal Year 2022 Debt Service on Bonds (4) $ 19,974,700 Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) - (3/4) 334% Total Pledged Funds Available for Debt Service After Payment of Bonds (5) $ 46,750,214 Total Fiscal Year 2022 Debt Service on Subordinated Indebtedness (6) $ 8,797,480 Calculated Coverage on Subordinated Indebtedness - (5/6) 531% Total Pledged Funds Available for System Purposes $ 37,952,734 Notes: Coverage calculations utilitize definitions of Gross Revenues, Net Revenues, System Development Fees and Pledged Funds established in Resolution CWS 85-5, as Amended and Restated. 2 Summary Debt Statement for Fiscal Year 2022 General Governmental Debt: While the Florida State Constitution and the Florida Statutes set no legal debt limit at the local level, prudent fiscal management requires a self-imposed level of restraint. Collier County's Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this threshold. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County's Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio decreased by .2% for the fiscal year ended September 30, 2022, to 5.8% (see Table 1), or less than half of the allowable ratio. This decrease is mainly reflective of increases in ad valorem collections, tourist development tax revenues, half cent sales tax and governmental (non -utility) impact fee collections. These revenue increases were offset by a 10.2% increase in debt service related to the Series 2020 A and B Special Obligation Revenue Bonds. Overall, governmental revenues increased by 13.5% over fiscal year 2021. Again, this increase was largely the result of a 12.0% increase in FY-2022 ad valorem collections. Aggressive debt restructuring over the last ten years, coupled with the growth of general governmental revenues, produced several consecutive years of decreases in the general governmental debt ratio. The trend in the governmental debt ratio is shown in the table below: Comparison of Governmental Debt Ratio to Maximum Allowable Governmental Debt Ratio Collier County, Florida (FYIS - FY22) 14.00% 12.00% 10.00% 13.0% 8.00% 7.6% 7.0/ g% 6.00% 4.00% 2.00% 0.00% FY-2015 FY-2016 FY-2017 FY-2018 FY-2019 FY-2020 FY-2021 FY-2022 Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 3 Summary of Existing and Newly Issued General Government Debt Existing General Government Debt The following table lists outstanding General Governmental Debt as of September 30, 2022: Issue Amount Interest Rates Final Maturity Purpose Series 2017 Special $37,994,000 3.09% July 1, 2034 Advance refund a portion of the Obligation Refunding Series 2010 Special Obligation Revenue Note (Direct Revenue Bonds. Placement Loan) Series 2019 Special $28,060,000 2.74% October 1, 2029 Fund the purchase of the Golden Obligation Revenue Note Gate Golf Course. (Taxable Direct Placement Loan) Series 2020A Special $74,935,000 4.00% - 5.00% October 1, 2045 Fund stormwater and parks Obligation Revenue Bonds capital improvements and refinance sports complex land purchase. Series 2020B Special $21,800,000 2.00% October 1, 2029 Fund the purchase of the HHH Obligation Revenue Bonds Ranch and the Camp Keais (Taxable) property. Series 2022A Special $32,865,000 1.43% October 1, 2029 Refund all outstanding Series Obligation Refunding 2011 Special Obligation Revenue Note (Direct Refunding Revenue Bonds. Placement Loan) Series 2022B Special $75,560,000 1.85% October 1, 2035 Refund all outstanding Series Obligation Refunding 2013 Special Obligation Revenue Note (Direct Refunding Revenue Bonds. Placement Loan) Series 2012 Gas Tax $3,760,000 3.00% - 5.00% June 1, 2023 Advance refund Series 2003 Gas Refunding Revenue Bonds Tax Revenue Bonds. Series 2014 Gas Tax $34,685,000 2.33% June 1, 2025 Advance refund a portion of the Refunding Revenue Bond Series 2005 Gas Tax Revenue (Direct Placement Loan) Bonds. Series 2018 Tourist $59,705,000 4.00% - 5.00% October 1, 2048 Fund the construction and Development Tax Revenue equipping of a regional Bonds tournament caliber amateur sports complex. Commercial Paper Loan — $1,000,000 2.15% - 2.84% June 1, 2027 Construct sidewalk Florida Local Government improvements in the Pelican Bay Finance Commission (Variable Rate) Services District. New General Government Debt On March 15, 2022, Collier County issued the Series 2022A Special Obligation Refunding Revenue Note (Direct Placement Loan) in the par amount of $32,865,000. This note was issued for the purpose of refunding the County's outstanding Special Obligation Refunding Revenue Bonds, Series 2011. The final maturity of the Series 2022A Note is October 1, 2029, with an interest rate of 1.43%. The refunding achieved a net present value savings of 5.58% on the refunded bonds, an aggregate debt service savings of $1,927,082 and an economic gain of $1,820,723. The Series 2022A Special Obligation Refunding Revenue Note was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Revenue debt. The refunded Series 2011 Special Obligation Refunding Revenue Bonds had a redemption date of March 15, 2022. On June 30, 2022, Collier County issued a $1,000,000 commercial paper loan through the Florida Local Government Finance Commission's Pooled Commercial Paper Program. The loan was issued for purposes of sidewalk improvements in the Pelican Bay Services District. The loan bears monthly variable interest and is collateralized by all legally available non -ad valorem revenues as defined in the loan agreement. On July 6, 2022, Collier County issued the Series 2022B Special Obligation Refunding Revenue Note (Direct Placement Loan) in the par amount of $75,560,000. This note was structured as a forward purchase agreement entered into on March 15, 2022, and issued for purposes of refunding the County's outstanding Special Obligation Refunding Revenue Bonds, Series 2013. The final maturity of the Series 2022B Note is October 1, 2035, with an interest rate of 1.85%. The refunding achieved a net present value savings of 14.17% on the refunded bonds, an aggregate debt service savings of $11,882,585 and an economic gain of $10,460,042. The Series 2022B Special Obligation Refunding Revenue Note was issued as a direct placement financing, secured with a lien on parity with all outstanding Special Obligation Revenue debt. The refunded Series 2013 Special Obligation Refunding Revenue Bonds have a redemption date of October 1, 2022. Collier County Governmental Bonded Debt Ratings Table: Current Ratings (as of 4/25/2023) Fitch Moody's Standard & Poor's Gas Tax Revenue Bonds AA- A2 A+ Special Obligation Bonds AA+ Aaa AAA Tourist Development Tax Bonds* AA+ Aa3 - * Standard & Poor's does not currently rate the Tourist Development Tax Bonds. A rating of AA by Fitch Ratings denotes the expectations of very low default risk and indicates very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. Fitch also uses intermediate +/- modifiers for each AA category. A Moody's Investors Service rating of Aaa is indicative of an investment grade instrument of the highest quality, with minimum credit risk. A Moody's Investors Service rating of Aa is indicative of a high quality investment grade instrument with very low credit risk, whereas an A rating indicative of an upper -medium grade instrument subject to low credit risk. Moody's uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. Moody's also maintains an Issuer Credit Rating of Aaa for Collier County which indicates excellent overall credit worthiness. An obligation rated AAA has the highest rating assigned by Standard and Poor's Global Ratings. The obligor's capacity to meet its financial commitments on the obligation is extremely strong. An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher -rated categories. However, the obligor's capacity to meet its financial commitments on the obligation is still strong. Standard and Poor's Global Ratings also uses intermediate +/- modifiers for each category to indicate relative standing within the major rating categories. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District's debt are set by bond covenants. Net revenues, defined as operating revenues plus specific non -operating revenues less operating expenses, excluding depreciation, must cover senior lien bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover senior lien bonded debt service at 125%. Net revenue coverage on senior lien bonded debt was 235% and total pledged funds coverage on senior lien bonded debt was 334% for FY-2022, down from 509% and 639%, respectively, for FY-2021 (see Table 2). Bonded debt coverages for FY-2022 decreased primarily due to decreases in non -operating revenues and an increase in the amount of senior lien debt service paid in FY-2022. Non -operating revenues decreased due to unrealized losses related to investments. The Federal Reserve's rate hikes during FY-2022 had a negative impact upon the District's portfolio valuation. Without the impact of the unrealized losses the FY- 2022 coverages are 334% and 433%, respectively. Senior lien debt service will decrease for FY-2023 with the FY-2022 final maturity of the Series 2015 Water and Sewer Refunding Revenue Bond. The District's calculated coverage on subordinated debt, all in the form of a bank loan with Synovus Bank, also decreased from 660% to 531% (see Table 2). The total pledged funds coverage required by the subordinated loan agreement is equivalent to 115% of total subordinated debt service in each fiscal year, after payment of bonded senior lien debt service. User rates for potable water, wastewater and irrigation water, as well as miscellaneous revenues, offset system operating, maintenance, debt service and capital costs. In July of 2021, the District Board adopted rate increases as indicated in the following table, effective October 1 of the respective fiscal year: Rate Type FY-2022 FY-2023 FY-2024 Water User 2.9% 4.0% 4.0% Wastewater User 2.9% 5.0% 5.0% Irrigation Quality User 2.9% 9.0% 9.0% The District's focus remains the optimization of resources, risk -based prioritization of capital projects and infrastructure expansion in Golden Gate City and the northeast service area to serve future residents and businesses. Existing Enterprise Debt The following table lists outstanding Enterprise Debt as of September 30, 2022: Issue Amount Interest Rates Final Maturity Purpose Series 2016 Water and Sewer $48,105,000 5.00% July 1, 2036 Refund remaining portion of the Refunding Revenue Bonds Series 2006 Water and Sewer Revenue Bonds. Series 2016 Water and Sewer $42,469,000 1.80% July 1, 2029 Refund all outstanding State Refunding Revenue Note Revolving Fund Loans. (Subordinated) Series 2018 Water and Sewer $25,155,000 2.41% July 1, 2029 Fund the purchase of water and Revenue Bond (Bank Term wastewater facilities within the Loan) Golden Gate Community. Series 2019 Water and Sewer $76,185,000 3.00% - 5.00% July 1, 2039 Fund utility improvements in the Revenue Bonds northeast area of the District. Series 2021 Water and Sewer $126,845,000 4.00% - 5.00% July 1, 2046 Fund utility improvements in Revenue Bonds Golden Gate City, the Governmental Operations Business Park and the northeast area of the District. New Enterprise Debt The District issued no new debt during fiscal year 2022. Collier County Enterprise Debt Ratings Table: Current Ratings (as of 4/25/2023) Fitch Moody's Standard & Poor's* Water and Sewer Revenue Bonds AAA Aaa - * Standard & Poor's does not currently rate County Water and Sewer Revenue Bonds. A rating of AAA by Fitch Ratings denotes the lowest expectation of default risk. A rating of AAA is only assigned in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. A Moody's Investors Service rating of Aaa is indicative of an investment grade instrument of the highest quality, with minimum credit risk. 7 11:IPyTe[HMION1:10IN1610MAN aIII anQW_101:/ Collier County, Florida Clerk of the Circuit Court and Coi Financial Statements and Supplemental Reports Year Ended September 30, 2 CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Statements and Other Reports Year Ended September 30, 2022 Contents IndependentAuditors' Report.......................................................................................................... I Financial Statements Balance Sheet — Governmental Funds........................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — GovernmentalFunds................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual— General Fund.............................................................................................................6 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Court Services Fund..................................................................................................7 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Other Special Revenue Fund.....................................................................................8 Statement of Fiduciary Net Position — Custodial Funds.............................................................9 Statement of Changes in Fiduciary Net Position — Custodial Funds........................................10 Notes to Financial Statements................................................................................................... I I Supplementary Information Combining Statement of Fiduciary Net Position — All Custodial Funds..................................27 Combining Statement of Changes in Fiduciary Net Position — All Custodial Funds ...............28 Clifton LarsonAllen LLP PAW CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida, Clerk of the Circuit Court and Comptroller (Clerk), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Clerk as of September 30, 2022, and the respective changes in financial position and the respective budgetary comparisons for the General Fund, Court Services Fund, and Other Special Revenue Fund for the year ended September 30, 2022, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Clerk and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements of the Clerk referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position and changes in financial position of only that portion of each major fund and the aggregate remaining fund information of Collier County, Florida that is attributable to the transactions of the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2022, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Se(- CLAglobal.com/disclaimer Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Clerk's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 2 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Required Supplementary Information Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk's basic financial statements. The combining custodial fund statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining custodial fund statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 1, 2023, on our consideration of the Clerk's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Clerk's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida February 1, 2023 Collier County, Florida Clerk of the Circuit Court and Comptroller Balance Sheet — Governmental Funds As s ets Cash and cash equivalents Accounts receivable, net Due from Collier County, Florida Board of County Commissioners Due from other governments Total assets Liabilities and fund balances Liabilities: September 30, 2022 Other Total Court Special Governmental General Services Revenue Funds $ 2,564,667 $ 1,500,230 $ 8,578,762 $ 12,643,659 10,186 - - 10,186 18,672 - - 18,672 9,984 21,189 - 31,173 $ 2,603,509 $ 1,521,419 $ 8,578,762 $ 12,703,690 Vouchers payable and accrued liabilities $ 927,788 $ 220,269 $ 29,351 $ 1,177,408 Due to Collier County, Florida Board of County Commissioners 442,866 295,230 - 738,096 Due to other governments - 660,423 - 660,423 Unearned revenue - 345,497 - 345,497 Deposits 1,232,855 - - 1,232,855 Total liabilities 2,603,509 1,521,419 29,351 4,154,279 Fund balance: Restricted - - 8,549,411 8,549,411 Total fund balance - - 8,549,411 8,549,411 Total liabilities and fund balance $ 2,603,509 $ 1,521,419 $ 8,578,762 $ 12,703,690 See accompanying Notes to Financial Statements. 4 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2022 Revenues: Intergovernmental Charges for services Miscellaneous Interest income Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess fees to State of Florida Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balance Fund balances — beginning of year Fund balances — end of year Other Total Court Special Governmental General Services Revenue Funds $ - $ 553,301 $ - $ 553,301 4,619,891 7,458,991 1,477,643 13,556,525 13,750 - - 13,750 110,472 27,263 55,351 193,086 4,744,113 8,039,555 1,532,994 14,316,662 10,677,617 6,247,633 3,138,801 599,234 77,338 - 25,099 - 59,380 16,984,630 96,329 3,834,364 - 77,338 - 25,099 - 422 13,919,277 6,846,867 155,709 20,921,853 (9,175,164) 1,192,688 1,377,285 (6,605,191) 54,582 - - 54,582 9,542,900 - - 9,542,900 - (1,192,688) - (1,192,688) (422,318) - - (422,318) 9,175,164 (1,192,688) - 7,982,476 - - 1,377,285 1,377,285 - - 7,172,126 7,172,126 $ - $ - $ 8,549,411 $ 8,549,411 See accompanying Notes to Financial Statements. 5 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual General Fund Year Ended September 30, 2022 Revenues: Charges for services Miscellaneous Interest income Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balance Fund balance — beginning of year Fund balance — end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 4,089,100 $ 4,280,100 $ 4,619,891 $ 339,791 - - 13,750 13,750 25,000 100,000 110,472 10,472 4,114,100 4,380,100 4,744,113 364,013 10,402,400 10,696,900 10,677,617 19,283 2,806,100 3,203,100 3,138,801 64,299 270,800 23,000 77,338 (54,338) - - 25,099 (25,099) - - 422 (422) 13,479,300 13,923,000 13,919,277 3,723 (9,365,200) (9,542,900) (9,175,164) 367,736 54,582 54,582 9,365,200 9,542,900 9,542,900 - - (422,318) (422,318) 9,365,200 9,542,900 9,175,164 (367,736) See accompanying Notes to Financial Statements. 6 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Court Services Fund Year Ended September 30, 2022 Revenues: Intergovernmental Charges for services Interest income Total revenues Fxpenditures : General government: Personal services Operating expenditures Total expenditures Excess of revenues over expenditures Other financing uses: Transfers out: Distribution of excess fees to State of Florida Total other financing uses Net change in fund balance Fund balance — beginning of year Fund balance — end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 439,736 $ 439,736 $ 553,301 $ 113,565 6,466,115 6,483,598 7,458,991 975,393 15,000 15,000 27,263 12,263 6,920,851 6,938,334 8,039,555 1,101,221 6,564,815 6,274,748 6,247,633 27,115 356,036 663,586 599,234 64,352 6,920,851 6,938,334 6,846,867 91,467 - - 1,192,688 1,192,688 (1,192,688) (1,192,688) (1,192,688) (1,192,688) See accompanying Notes to Financial Statements. 7 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Other Special Revenue Fund Year Ended September 30, 2022 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 1,500,000 $ 1,500,000 $ 1,477,643 $ (22,357) Interest income 12,000 12,000 55,351 43,351 Total revenues 1,512,000 1,512,000 1,532,994 20,994 Expenditures: General government: Personal services 1,146,400 1,146,400 59,380 1,087,020 Operating expenditures 1,948,700 2,520,200 96,329 2,423,871 Capital outlay 466,800 129,300 - 129,300 Total expenditures 3,561,900 3,795,900 155,709 3,640,191 Net change in fund balance (2,049,900) (2,283,900) 1,377,285 3,661,185 Fund balance — beginning of year 3,972,926 6,669,784 7,172,126 502,342 Fund balance — end of year $ 1,923,026 $ 4,385,884 $ 8,549,411 $ 4,163,527 See accompanying Notes to Financial Statements. 8 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Fiduciary Net Position Custodial Funds September 30, 2022 Assets Cash and cash equivalents $ 21,530,987 Total assets 21,530,987 Liabilities Due to other governments 3,139,399 Total liabilities 3,139,399 Fiduciary Net Position Restricted for: Individuals, organizations, and other governments 18,391,588 Total fiduciary net position 18,391,588 Total liabilities and fiduciary net position $ 21,530,987 See accompanying Notes to Financial Statements. 9 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended September 30, 2022 Additions Fees/Fines collected for other governments $ 2,481,706 Registry and other deposits collected 25,656,571 Total additions 28,138,277 Deductions Fees/Fines disbursed to other governments 2,537,388 Registry and other deposits disbursed 33,254,887 Total deductions 35,792,275 Change in fiduciary net position (7,653,998) Fiduciary net position - beginning of year 26,045,586 Fiduciary net position - end of year $ 18,391,588 See accompanying Notes to Financial Statements. 10 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Florida. The Clerk's Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and custodial funds of the Clerk's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Annual Comprehensive Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk's general fund. Court -related operations are funded by the collection of fines, fees, costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 11 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund —The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund — The court services fund is a special revenue fund established to account for court -related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund — The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office; and revenues mandated by Section 28.24(12)(e) and Section 28.37(5), Florida Statutes, to be used exclusively for funding court -related technology needs. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. 12 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk's activities are classified as court -related and non -court -related. The Clerk's general fund activity, which is classified as non -court -related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds — Custodial Funds — Custodial funds are used to account for assets held by the Clerk in a fiduciary capacity or as an agent for individuals, private organizations, and other governments. Custodial funds are accounted for using the accrual basis of accounting. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk's funds, but rather is reported in the basic financial statements of Collier County, Florida. 13 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Prepaid Items The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non -spendable fund balances at the Clerk as of September 30, 2022. Spendable fund balances are classified based on a hierarchy of the Clerk's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk's fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. 14 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund -Type Definitions (continued) When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk's annual budget. The Clerk prepares and approves the budget for the Clerk's non -court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court -related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ended September 30, 2022, the Clerk had sufficient revenues to meet expenditures. 15 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 2. Budgetary Process (continued) The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk's fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 3. Cash and Cash Equivalents At September 30, 2022, the carrying value of the Clerk's cash and cash equivalents was as follows: Cash on hand Demand deposits Total cash and cash equivalents Maturity Carrying Value N/A $ 11,200 N/A 34,163,446 $ 34,174,646 Credit Rating N/A N/A The Clerk maintains a cash pool for the deposits of all governmental and custodial funds. Each fund type's portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. 16 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2022 are reported as $12,643,659 and $21,530,987 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2022, the Clerk's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Clerk's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter -local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk's funds is based on maintaining 24-hour liquidity. All Clerks funds are held in local banks or short-term investment instruments. 17 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 4. Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of $110,472 is reported in the general fund for the year ended September 30, 2022, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, Transfer- September 30, 2021 ' Additions Deductions out 2022 Machinery and equipment $ 6,874,586 $ 22,756 $ (2,843) $ (3,478) $ 6,891,021 Right -to -use leased equipment 98,085 54,582 (65,140) - 87,527 Total capital assets 6,972,671 77,338 (67,983) (3,478) 6,978,548 Less accumulated depreciation Machinery and equipment (5,782,468) (457,954) 2,843 2,685 (6,234,894) Right -to -use leased equipment' (65,997) (24,521) 65,140 - (25,378) Total accumulated depreciation (5,848,465) (482,475) 67,983 2,685 (6,260,272) Total capital assets, net $ 1,124,206 $ (405,137) $ - $ (793) $ 718,276 1 The Clerk implemented GASB Statement No. 87 Leases in 2020. Right -to -use leased assets related to leases under GASB Statement No. 87 were added to the Clerk's financial statement disclosure in 2022. Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 5. Capital Assets (continued) During the year ended September 30, 2022, capital assets totaling $3,478 were transferred to another department of Collier County, Florida. The Clerk leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Clerk's leases can be found in the Collier County annual comprehensive financial report or County -wide financial statements. Leases entered into by the Clerk are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2022, the Clerk entered into leases in the amount of $54,582. During the year ended September 30, 2022, the Clerk's payments of principal on leases totaled $25,099. 6. Long -Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2021 Additions Deletions 2022 Accrued compensated absences $ 1,923,245 $ 1,329,414 $ (1,126,665) $ 2,125,994 Of these liabilities, $999,217 is expected to be paid during the fiscal year ending September 30, 2023. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. 19 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State - administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement Svstem Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. 20 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 7. Pension Plans (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living 21 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 7. Pension Plans (continued) Benefits Provided (continued) adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre - July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. Retiree Health Insurance Subsidy Prozram Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2022, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State - administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 22 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 7. Pension Plans (continued) FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2022, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits 23 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 7. Pension Plans (continued) under the FRS Pension Plan or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk's contributions made to the plans during the years ended September 30, 2022, 2021, and 2020 were $1,591,676, $1,323,776, and $1,138,484, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the Collier County annual comprehensive financial report or County -wide financial statements. 8. Related Party Transactions The Board provided funding for the Clerk in the amount of $9,542,900. The Supervisor of Elections provided funding in the amount of a $51,000 fee for financial services performed by the Clerk. At September 30, 2022, the Clerk had a payable due to the Board of $738,096, comprised as follows: Distribution of excess fees $ 442,866 Amounts due for various court fees 295,230 Total due to Board of County Commissioners $ 738,096 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2022, the Clerk was charged $2,621,116 by the County for participation in the risk management program. 24 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 9. Risk Management (continued) The County retains the first $500,000 per claim for workers' compensation and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for $300,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3 % wind deductible and a $50,000 deductible for all other perils. The County retains the first $300,000 each claim for public official errors and omissions and $100,000 each loss for the crime coverage and has purchased outside excess coverage for up to $5 million per claim for E&O and $1,000,000 each loss for Crime. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $1,000,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Other Postemployment Healthcare Benefits (OPEB) Plan In accordance with Section 112.0801, Florida Statutes, the Clerk participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 25 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2022 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a "party in interest" in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2022, the Clerk was involved in approximately 124,354 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in 270 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are 2 active actions for foreclosure of property in which the Clerk has been a named defendant. In the opinion of the Clerk and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk. The Clerk's Office carries insurance to protect against loss. 26 Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statement of Fiduciary Net Position Custodial Funds September 30, 2022 Jury and Clerk's Court Ordinary Total Agency Registry Witness Custodial Funds As s ets Cash and cash equivalents $ 4,713,703 $ 16,811,634 $ 5,650 $ 21,530,987 Total assets 4,713,703 16,811,634 5,650 21,530,987 Liabilities Due to othergovemments 3,139,399 - - 3,139,399 Total liabilities 3,139,399 - - 3,139,399 Fiduciary Net Position Restricted for: Individuals, organizations, and other governments 1,574,304 16,811,634 5,650 18,391,588 Total fiduciary net position 1,574,304 16,811,634 5,650 18,391,588 Total liabilities and fiduciary net position $ 4,713,703 $ 16,811,634 $ 5,650 $ 21,530,987 27 Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended September 30, 2022 Jury and Clerk's Court Ordinary Total Agency Registry Witness Custodial Funds Additions Fees/Fines collected for other governments $ 2,481,706 $ - $ - $ 2,481,706 Registry and other deposits collected - 25,641,571 15,000 25,656,571 Total additions 2,481,706 25,641,571 15,000 28,138,277 Deductions Fees/Fines disbursed to other governments 2,537,388 - - 2,537,388 Registry and other deposits disbursed - 33,226,784 28,103 33,254,887 Total deductions 2,537,388 33,226,784 28,103 35,792,275 Change in fiduciary net position (55,682) (7,585,213) (13,103) (7,653,998) Fiduciary net position - beginning of year 1,629,986 24,396,847 18,753 26,045,586 Fiduciary net position - end of year $ 1,574,304 $ 16,811,634 $ 5,650 $ 18,391,588 OPF Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida, Clerk of the Circuit Court and Comptroller (Clerk), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements, and have issued our report thereon dated February 1, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Sec CLAglobal.com/disclaimer 29 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida February 1, 2023 Clifton LarsonAllen LLP PAW CLAconnect.com MANAGEMENT LETTER Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Clerk of the Circuit Court (Clerk) as of and for the year ended September 30, 2022, and have issued our report thereon dated February 1, 2023. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated February 1, 2023 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings reported in the prior audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 31 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Clerk and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 1, 2023 32 Clifton LarsonAllen LLP PAW CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida We have examined the Collier County, Florida, Clerk of the Circuit Court and Comptroller's (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets during the year ended September 30, 2022. Management of the Clerk is responsible for the Clerk's compliance with the specified requirements. Our responsibility is to express an opinion on the Clerk's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Clerk complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Clerk complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Clerk's compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets during the year ended September 30, 2022. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 1, 2023 CLA (CdreonLarsonHden ur) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 33 11:IPyTe[HMION1:10IN1610MAN aIII anQW_101:/ Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2022 CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2022 Contents IndependentAuditors' Report ..........................................................................................................1 Financial Statements Balance Sheet — General Fund......................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance— General Fund.............................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget (Non-GAAP) and Actual — General Fund....................................................6 Notesto Financial Statements.......................................................................................................7 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................23 ManagementLetter........................................................................................................................25 Independent Accountants' Report ..................................................................................................27 Clifton LarsonAllen LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the general fund of the Collier County, Florida, Property Appraiser (the Property Appraiser), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Property Appraiser's basic financial statements, as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Property Appraiser as of September 30, 2022, and the changes in financial position and the budgetary comparisons for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Property Appraiser and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements of the Property Appraiser referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position, the changes in financial position of only that portion of each major fund of Collier County, Florida that is attributable to the transactions of the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2022, the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. I Honorable Abe Skinner Property Appraiser Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Property Appraiser's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 2 Honorable Abe Skinner Property Appraiser Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2022 , on our consideration of the Property Appraiser's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control over financial reporting and compliance. i CliftonLarsonAllen LLP Naples, Florida December 14, 2022 Collier County, Florida Property Appraiser Balance Sheet — General Fund September 30, 2022 Assets Cash and cash equivalents Due from Collier County, Florida Board of County Commissioners Due from other taxing districts Total assets Liabilities and fund balance Liabilities: Accounts payable and accrued expenses Due to Collier County, Florida Board of County Commissioners Due to other taxing districts Total liabilities Fund balance Total liabilities and fund balance See accompanying Notes to Financial Statements. $ 1,840,577 352,297 16,151 $ 2,209,025 $ 186,639 803,879 1,218,507 2,209,025 $ 2,209,025 0 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2022 Revenues: Commissions and fees $ 10,374,857 Charges for services 220,791 Miscellaneous 7,157 Total revenues 10,602,805 Expenditures: General government: Personal services 6,548,185 Operating 1,956,649 Capital outlay 20,920 Debt service - principal 54,118 Debt service - interest 2,043 Total expenditures 8,581,915 Excess of revenues over expenditures 2,020,890 Other financing Sources (uses): Proceeds from lease 1,496 Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (803,879) Distribution of excess fees and commissions to other governmental agencies (1,218,507) Total other financing Sources (uses) (2,020,890) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year $ - See accompanying Notes to Financial Statements. 5 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2022 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees $ 9,072,872 $ 9,076,190 $ 9,076,190 $ - Miscellaneous - - 7,157 7,157 Total revenues 9,072,872 9,076,190 9,083,347 7,157 Expenditures: General government: Personal services 7,130,437 7,133,755 6,548,185 585,570 Operating 1,907,435 1,907,435 1,556,976 350,459 Capital outlay 35,000 35,000 20,920 14,080 Debt service - principal - - 54,118 (54,118) Debt service - interest - - 2,043 (2,043) Total expenditures 9,072,872 9,076,190 8,182,242 893,948 Excess of revenues over expenditures - - 901,105 901,105 Other financing uses: Proceeds from lease - - 1,496 1,496 Distribution of excess fees to Collier County, Florida Board of County Commissioners - - (803,879) (803,879) Distribution of excess commissions and fees to other governmental agencies - - (98,722) (98,722) Total other financing uses - - (901,105) (901,105) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year See accompanying Notes to Financial Statements. 0 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida, Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of Collier County, Florida (the County), pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser's total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser's office. The Property Appraiser's financial statements include only the funds of the Property Appraiser's office. For financial reporting purposes, the Property Appraiser is deemed to be part of the primary government of the County, and, therefore, is included as such in the County's Annual Comprehensive Financial Report (ACFR). There are no component units included in the Property Appraiser's financial statements. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the County's Annual Comprehensive Financial Report (ACFR). These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 7 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds' present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser's only governmental fund is the general fund. The general fund is used to account for the general operations of the Property Appraiser. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services and interest income are recognized as they are earned and become measurable and available to pay liabilities of the current period. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the "susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each govermnental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental fund of the Property Appraiser. n. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Refund of Excess Fees Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as another financing use -transfer out in the accompanying financial statements. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave and up to 200 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. 0 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser's annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser's total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. The Property Appraiser's budget is prepared under a budgetary basis of accounting that differs from generally accepted accounting principles (GAAP). Certain revenues received from TRIM notices, non -ad valorem commissions, expenditures of such revenue, and other financing uses related to non -ad valorem revenue are not recognized under the budgetary basis of accounting; however, these items have been recognized under GAAP. 10 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 2. Budgetary Process (continued) A reconciliation of revenues, expenditures, and other financing uses on a budgetary basis to a GAAP is as follows: Total revenues - budgetary basis Revenues not budgeted: Non -ad valorem commissions are not budgeted TRIM reimbursements are not budgeted Total revenues - GAAP basis Total expenditures - budgetary basis Expenditures not budgeted: Non -ad valorem related expenditures are not budgeted TRIM expenditures are not budgeted Total expenditures - GAAP basis Total other financing uses - budgetary basis Other financing uses not budgeted: Distribution of non -ad valorem excess fees are not budgeted Total other financing uses - GAAP basis 3. Cash $ 9,083,347 1,298,667 220,791 $10,602,805 $ 8,182,242 178,882 220,791 $ 8,581,915 $ (901,105) (1,119,785) $ (2,020,890) At September 30, 2022, the carrying value of the Property Appraiser's cash was as follows: Cash on hand Demand deposits Total cash Carrying Type Value $ 125 1,840,452 $ 1,840,577 11 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 3. Cash (continued) Custodial Credit Risk At September 30, 2022, the Property Appraiser's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Property Appraiser's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 12 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2022: October 1, September 30, 2021 Additions Deductions 2022 Improvements other than buildings $ 15,332 $ - $ - $ 15,332 Machinery and equipment 1,492,443 19,424 (17,298) 1,494,569 Right -to -use leased equipment 191,035 1,496 (108,592) 83,939 Total capital assets 1,698,810 20,920 (125,890) 1,593,840 Less: accumulated depreciation (1,407,063) (50,442) 17,298 (1,440,207) Less: accumulated amortization' (122,321) (51,438) 108,592 (65,167) Total Depreciable capital assets, ne (1,529,384) (101,880) 125,890 (1,505,374) Total capital assets, net $ 169,426 $ (80,960) $ - $ 88,466 1 The Property Appraiser implemented GASB Statement No.87 Leases in 2020. Right -to -use leased assets related to leases under GASB Statement No.87 were added to the Property Appraiser's financial statement disclosure in 2022. 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: 13 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 October 1, September 30, 2021 Increase Decrease 2022 Accrued compensated absences $ 532,262 $ 444,809 $ (486,293) $ 490,778 14 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 5. Long -Term Liabilities (continued) Of these liabilities, approximately $100,000 is expected to be paid during the fiscal year ending September 30, 2023, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 15 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. • Special Risk Administrative Support Class —Members who provide administrative support for a special risk employer Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. 16 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3% FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 17 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2022, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2022, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 19 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) i'nwrih"tin» c The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser's employer contributions to the plan for the years ended September 30, 2022, 2021, and 2020, were $693,093, $650,648, and $573,446, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County's annual comprehensive financial report or county -wide financial statements. 7. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Property Appraiser participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 8. Related Party Transactions During the fiscal year ended September 30, 2022, the Board paid fees to the Property Appraiser that amounted to $8,083,483. At September 30, 2022, the Property Appraiser had a receivable due from the Board of $352,297, and a payable due to the Board of $803,879. 20 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property, and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County's self-insurance program. During the year ended September 30, 2022, the Property Appraiser was charged $1,234,494 by the County for participation in the risk management program. The County retains the first $600,000 per claim for workers' compensation and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 21 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2022 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser. Leases The Property Appraiser leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Property Appraiser's leases can be found in the Collier County annual comprehensive financial report or County -wide financial statements. Leases entered by the Property Appraiser are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2022, the Property Appraiser entered into one lease in the amount of $1,496. During the year ended September 30, 2022, the Property Appraiser's payments of principal on leases totaled $54,118. 22 Clifton LarsonAllen LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County, Florida, Property Appraiser (the Property Appraiser), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Property Appraiser's basic financial statements, and have issued our report thereon dated December 14, 2022. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 23 Honorable Abe Skinner Property Appraiser Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. GL�l� LLB CliftonLarsonAllen LLP Naples, Florida December 14, 2022 24 0 Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements Clifton LarsonAllen LLP CLAconnect.com MANAGEMENT LETTER We have audited the financial statements of the Collier County, Florida, Property Appraiser (the Property Appraiser) as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated December 14, 2022. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated December 14, 2022, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 25 Honorable Abe Skinner Property Appraiser Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 14, 2022 26 0 Honorable Abe Skinner Property Appraiser Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT We have examined the Collier County, Florida, Property Appraiser's (the Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2022. Management of the Property Appraiser is responsible for the Property Appraiser's compliance with the specified requirements. Our responsibility is to express an opinion on the Property Appraiser's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Property Appraiser complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Property Appraiser complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Property Appraiser's compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2022. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 14, 2022 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 27 11:IPyTe[HMION1:10IN1610MAN aIII anQW_101:/ Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 20 CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Contents Independent Auditors' Report..........................................................................................................1 Financial Statements Balance Sheet — Governmental Funds.............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances — GovernmentalFunds.....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget (Non-GAAP) and Actual — General Fund........................................................................6 Statement of Net Position — Internal Service Fund..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position — InternalService Fund....................................................................................................................8 Statement of Cash Flows — Internal Service Fund...........................................................................9 Statement of Fiduciary Net Position — Custodial Funds................................................................10 Statement of Changes in Fiduciary Net Position — Custodial Funds ............................................. I I Notes to Financial Statements........................................................................................................12 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios...............................................37 Combining Financial Information — Supplementary Information Combining Statement of Fiduciary Net Position — Custodial Funds.............................................3 8 Combining Statement of Changes in Fiduciary Net Position — Custodial Funds ..........................39 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards....................................................................40 Schedule of Findings and Responses.............................................................................................42 ManagementLetter........................................................................................................................43 Independent Accountants' Report..................................................................................................45 OPF Honorable Kevin Rambosk Sheriff Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida, Sheriff (Sheriff), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Sheriff's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Sheriff as of September 30, 2022, and the respective changes in financial position, and where applicable, cash flows thereof, and the budgetary comparison for the general fund for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Sheriff and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Sheriff of Collier County, Florida referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position, the changes in financial position, and where applicable, cash flows of only that portion of each major fund and the aggregate remaining fund information, of Collier County, Florida that is attributable to the transactions of the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2022, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Se(- CLAglobal.com/disclaimer Honorable Kevin Rambosk Sheriff Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Sheriff's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 2 Honorable Kevin Rambosk Sheriff Required Supplementary Information Accounting principles generally accepted in the United States of America require that the schedule of changes in total OPEB liability and related ratios, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff's basic financial statements. The combining statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 7, 2023, on our consideration of the Sheriff's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Sheriff's internal control over financial reporting or on compliance. 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principal Debt service - interest Total expenditures Excess of expenditures over revenues Other financing sources (uses): Leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources Net change in fund balance Non -spendable fund balance — beginning of year Non -spendable fund balance — end of year Variance With Budget Budget Positive Original Final Actual (Negative) $ $ 1,050,000 $ 1,294,878 $ 244,878 — 1,050,000 1,294,878 244,878 4,634,500 4,787,500 5,082,544 (295,044) 192,100 192,100 170,787 21,313 170,091,200 176,398,200 169,350,569 7,047,631 35,451,400 35,541,400 35,914,851 (373,451) 5,183,600 5,183,600 8,261,917 (3,078,317) — — 157,055 (157,055) — — 2238 (2,238) 215,552,800 222,102,800 218,939,961 3,162,839 (215,552,800) (221,052,800) (217,645,083) 3,407,717 — — 31,376 31,376 215,552,800 211,052,800 211,052,800 — — — (2,301,408) (2,301,408) 215,552,800 211,052,800 208,782,768 (2,270,032) Total revenues - budgetary basis $ 1,294,878 Revenues not budgeted: Revenues for pandemic cost reimbursements that are not budgeted 10,000,000 Total revenues - GAAP basis $ 11,294,878 Total expenditures - budgetary basis $ 218,939,961 Expenditures not budgeted: Expenditures for multi -period projects that are not budgeted 6,849,039 Total expenditure - GAAP basis $ 225,789,000 Total other financing sources - budgetary basis $ 208,782,768 Transfers in from Collier County Florida Board of County Commissioners (non -appropriations) 6,849,039 Total other financing sources (uses) - GAAP basis $ 215,631,807 See accompanying Notes to Financial Statements 6 Collier County, Florida Sheriff Statement of Net Position — Internal Service Fund September 30, 2022 Assets: Cash and cash equivalents $ 5,211,408 Investments 11,117,676 Due from stop loss 248,164 Interest receivable 18,488 Total assets 16,595,736 Liabilities: Self insurance claims payable 3,465,000 Unearned revenue 108,711 Total liabilities 3,573,711 Net position: Unrestricted 13,022,025 Total net position $ 13,022,025 See accompanying Notes to Financial Statements 7 Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position — Internal Service Fund Year Ended September 30, 2022 Operating revenues: Charges for services $ 33,231,472 Interest 10,876 Total operating revenues 33,242,348 Operating expenses: Claims and claims expenses 29,105,905 Reinsurance premiums 2,038,774 Administrative and other expenses 743,150 Total operating expenses 31,887,829 Operating income 1,354,519 Nonoperating revenues: Interest income, net of management fees 90,966 Net decrease in fair value of investments (984,966) Total nonoperating revenues (894,000) Change in net position 460,519 Net position — beginning of year 12,561,506 Net position — end of year $ 13,022,025 See accompanying Notes to Financial Statements 8 Collier County, Florida Sheriff Statement of Cash Flows — Internal Service Fund Year Ended September 30, 2022 Operating activities Cash payments for claims and claims related services Cash payments for reinsurance premiums Cash payments for administrative services and supplies Cash received from other funds for services Cash received from retirees for services Net cash provided by operating activities Investing activities Interest earnings, net of management fees Purchase of securities Proceeds from sales of securities Net cash provided by investing activities Net increase in cash, cash equivalents, and investments Cash, cash equivalents, and investments — beginning of year Cash, cash equivalents, and investments — end of year Reconciliation of operating income to net cash provided by operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Decrease in due from stop loss Decrease in due from other funds Increase in self-insurance claims payable Increase in unearned revenue Net cash provided by operating activities $ (28,831,290) (2,038,774) (732,274) 32,950,000 1,485,894 2,833,556 97,544 (3,350,683) 3,253,139 2,833,556 2,377,852 $ 5,211,408 $ 1,354,519 45,615 1,200,003 229,000 4,419 $ 2,833,556 See accompanying Notes to Financial Statements 9 Collier County, Florida Sheriff Statement of Fiduciary Net Position — Custodial Funds September 30, 2022 Assets: Cash and cash equivalents Due from individuals and businesses Total assets Liabilities: Due to other funds Due to other Total liabilities Fiduciary Net Position: Restricted for: Individuals and Organizations Private Purpose Trust Custodial Funds Fund $ 311,196 $ 384,842 2,742 $ 311,196 $ 387,584 $ 78,109 8,268 86,377 $ 311,196 $ 301,207 See accompanying Notes to Financial Statements 10 Collier County, Florida Sheriff Statement of Changes in Fiduciary Net Position — Custodial Funds Year Ended September 30, 2022 Private Purpose Custodial Funds Trust Fund Additions: Contributions: Individuals $ 519,409 $ 3,770,663 Fees collected for other governments — 360,674 Miscellaneous — 2,391 Total additions 519,409 4,133,728 Deductions: Beneficiary payments to individuals 478,439 3,739,858 Payment of fees to other governments — 132,696 Payments to other entities — 243,640 Total deductions 478,439 4,116,194 Net increase in Fiduciary Net Position 40,970 17,534 Fiduciary Net Position - Beginning of year 270,226 283,673 Fiduciary Net Position - End of year $ 311,196 $ 301, 007 See accompanying Notes to Financial Statements 11 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff's budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County's corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and fiduciary funds of the Sheriff's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government - wide financial statements and related disclosures, including management's discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2022 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Annual Comprehensive Financial Report. 12 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated general fund balance is carried forward. However, the Sheriff currently has $1,137,685 in non -spendable fund balance to account for prepaid items that cover multiple fiscal years. This non -spendable fund balance will be reduced each fiscal year proportionate to the expenditure that is incurred for each fiscal year until the balance is $0. The fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Sheriff considers revenues to be available if they are collected within 60 days after year-end with the exception of grants, which have a period of availability of one year. Grants are recognized as revenue as soon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Substantially all of the Sheriff's funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, money must be expended on the specific purpose or project before any amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures incurred. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the "susceptible to accrual" criteria are met. Other revenue is recognized as earned and becomes measurable and available to pay liabilities of the current period. 13 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has three major governmental funds: General Fund — The general fund is used to account for the general operations of the Sheriff and includes all transactions which are not accounted for in another fund. Grant Special Revenue Fund — This fund is used to account for the proceeds of federal and state grant revenues that are legally restricted to specified purposes. It also includes funds donated to the Collier County Sheriff's Office. Donated funds are used in accordance with how each donor designates the use of funds. The majority of donated funds are usually designated for youth programs, however, funds have also been donated for officer safety, use by specific districts/substations for community activities, or other programs/activities in the community. Prisoner Welfare Fund — This fund is used to account for the proceeds of inmate -related services and is legally restricted to specified purposes, which benefit the inmate population. The Sheriff also has the following non -major funds: Reported as Other Non -major Special Revenue Funds Confiscated Trust Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. Civil Citation — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. 14 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Education Trust Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911— This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Domestic Violence Training Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 938.08. Funds are used to defray of incarcerating persons sentenced under Florida Statute 741.283 and to provide additional training to law enforcement personnel in combating domestic violence. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. Fiduciary Funds Custodial Funds — These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Custodial funds are accounted for using the accrual basis of accounting. Private Purpose Trust Fund — These funds are used to account for flexible spending contributions from agency members. The private purpose trust fund is accounted for using the accrual basis of accounting. Proprietary Fund Internal Service Fund — This fund is used to account for the health and dental insurance services provided to departments and retirees of the Sheriff on a cost -reimbursement basis. Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. 15 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods. The operating revenues of the internal service fund consist of charges for services. Operating expenses include claims, stop loss premiums, and other administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Sheriff invests funds throughout the year with Florida PRIME, an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. Florida PRIME is considered a qualifying external investment pool that meets all the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the Sheriff's position in the pool is the same as the value of the pool shares. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2022, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 34.7% of Florida PRIME's portfolio at September 30, 2022. In accordance with GASB Statement No. 79, as a participant in a qualifying external investment pool, the Sheriff should disclose the presence of any limitations or restrictions on withdrawals such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool's authority to impose liquidity fees or redemption gates in the notes to the financial statements. With regards to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before 16 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium maybe extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days." With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. At September 30, 2022, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. Prepaid Items Prepaid items consist of certain costs which have been paid prior to the end of the fiscal year but represent items which are applicable to future accounting periods. Reported amounts in governmental funds are classified as nonspendable fund balance, in the fund financial statements, which indicates that these amounts do not constitute "available spendable resources" even though they are a component of current assets. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. Due to Hurricane Ian and the inability for members to use PDO while under mandatory duty prior, during, and after the storm, the Sheriff authorized the limit of PDO balances to be temporarily increased until December 31, 2022. Any balances over 500 after that date will be reduced back to 500 hours. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 2,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. 17 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff has $1,137,685 as a non -spendable fund balances as of September 30, 2022. Spendable fund balances are classified based on a hierarchy of the Sheriff's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned, and unassigned. The Sheriff's fund balances for the Grant Special Revenue Fund, and Prisoner Welfare Fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund and Prisoner Welfare Fund are constrained for specific purposes that are externally imposed by donors, grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reported as restricted fund balances. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Sheriff's annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 2. Budgetary Process (continued) Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare fund does not have a legally adopted budget. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 19 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 3. Cash, Cash Equivalents and Investments At September 30, 2022, the carrying value of the Sheriff's cash, cash equivalents, and investments was as follows: Carrying Credit Type Maturity Value Rating Cash on hand N/A $ 263,139 N/A Demand deposits N/A 25,522,312 N/A Local government surplus funds trust fund: Florida Prime (SBA) N/A 805,892 Aaa Total cash and cash equivalents $ 26,591,343 Money Market N/A 21,350 Not rated Federal Home Loan Bank 1/15/2025 454,300 AA+ Federal Home Loan Bank STEP 1/29/2026 220,652 AA+ Federal Home Loan Bank 1/29/2026 219,250 AA+ Federal Home Loan Bank 2/26/2026 439,315 AA+ Federal Home Loan Bank STEP 2/18/2026 441,025 AA+ Federal Home Loan Bank 2/26/2027 120,613 AA+ Federal Home Loan Bank STEP 3/26/2026 447,375 AA+ Federal Home Loan Bank 12/9/2024 229,607 AA+ Federal Home Loan Bank 3/28/2025 453,760 AA+ Federal Home Loan Bank 9/30/2026 218,443 AA+ Federal Home Loan Bank 8/28/2024 319,348 AA+ Federal Farm Credit Bank 8/3/2026 87,264 AA+ Federal Farm Credit Bank 9/16/2025 446,740 AA+ Federal Farm Credit Bank 9/l/2026 437,520 AA+ Federal Farm Credit Bank 3/28/2024 469,725 AA+ Federal Farm Credit Bank 10/15/2024 460,230 AA+ Federal Farm Credit Bank 11/30/2023 524,106 AA+ Federal Farm Credit Bank 1/13/2025 359,134 AA+ Federal Farm Credit Bank 2/4/2026 219,325 AA+ Federal Farm Credit Bank 2/10/2025 455,160 AA+ Federal Home Loan Mortgage Corp. 7/30/2026 109,121 Aaa Federal Home Loan Mortgage Corp. 10/20/2025 222,363 Aaa Federal Home Loan Mortgage Corp. 6/23/2026 438,300 Aaa Federal Home Loan Mortgage Corp. 1/7/2026 312,304 Aaa Federal Home Loan Mortgage Assn. 11/25/2025 442,890 AA+ Treasury Note 3/31/2025 480,955 AA+ Treasury Note 5/31/2025 449,845 AA+ Treasury Bond 6/15/2023 486,680 AA+ Treasury Note 11/30/2026 422,878 AA+ Treasury Note 8/28/2027 227,803 AA+ Treasury Note 4/15/2025 480,295 AA+ Total Investments 11,117,676 Total cash, cash equivalents and investments $ 37,709,019 *Credit ratings are Standard & Poor ratings except for FHLMC and Florida Prime which are Moody ratings. 20 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 3. Cash, Cash Equivalents and Investments (continued) The total cash, cash equivalent and investments balances at September 30, 2022, were as follows: General fund Grant special revenue fund Prisoner welfare fund Internal service fund Custodial funds Custodial Credit Risk $ 15,397,123 1,879,848 3,406,926 16,329,084 696,038 $ 37,709,019 At September 30, 2022, the Sheriff's demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Employer Benefits Trust (FSEBT) and are administered by FSEBT. FSEBT's policy requires execution of a third - party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff's name. Credit Risk The Sheriff's policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff's Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest -bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the U.S. Treasury. 21 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 3. Cash, Cash Equivalents and Investments (continued) Credit Risk (continued) Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2022, the Sheriff had $805,892 invested in Florida PRIME. Florida PRIME is rated "Aaa" by Moody's Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Concentration of Credit Risk The Sheriff's investments are included in the internal service fund which is used to account for the Sheriff's self -insured health plan. FSEBT administers the investments for the Sheriff's self -insured health plan and has an investment policy that allows for the investment of funds that exceed one month's required funding by more than $100,000. Investments can be made in government securities. The Sheriff's portfolio managed by FSEBT includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits that are not managed by FSEBT and are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriffs portfolio invested in FSEBT is detailed as follows, at September 30, 2022: Money Market Treasury Bond and Note Federal Home Loan Mortgage Corp. Federal Home Loan Mortgage Assn. Federal Home Loan Bank Federal Farm Credit Bank Total % of Portfolio 0% 23% 10% 4% 32% 31% 100% 22 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 3. Cash, Cash Equivalents and Investments (continued) Fair Value Measurements The Sheriff categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Sheriff has the following recurring fair value measurements as of September 30, 2022: U.S. Treasury Notes classified as level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. • U.S. Agency obligations classified as level 2 of the fair value hierarchy are valued using quoted prices for similar assets in active markets. 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at acquisition value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. 23 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 4. Capital Assets (continued) The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 20211 Additions Reclassifications 2022 Governmental Activities Capital assets not depreciated: Construction in Progress $ 2,369,223 $ 372,634 $ (2,148,876) $ 592,981 Total capital assets not depreciated 2,369,223 372,634 (2,148,876) 592,981 Capital assets depreciated and amortized: Machinery and equipment ROU leased equipment' Total capital assets depreciated Less accumulated depreciation and amortization: Machinery and equipment ROU leased equipment' Total Accumulated depreciation and amortization Total Depreciable capital assets, net Total Governmental Activities capital assets, net 112,234,136 19,525,860 (5,951,136) 125,808,860 665,972 31,376 (60,275) 637,073 112,900,108 19,557,236 (6,011,411) 126,445,933 (70,550,251) (254,249) (15,282,423) (193,636) 5,955,627 60,268 (79,877,047) (387,617) (70,804,500) (15,476,059) 6,015,895 (80,264,664) 42,095,608 4,081,177 4,484 46,181,269 $ 44,464,831 $ 4,453,811 $ (2,144,3921 $ 46,774,250 1 The Sheriffs Office implemented GASB Statement No. 87 Leases in Fiscal Year 2020. Leases under GASB Statement No. 87 were added to the financial statement disclosure in Fiscal Year 2022, resulting in a change in beginning balances. 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2021 Additions Reclassifications 2022 Compensated Absences $22,591,920 $6,013,073 ($4,399,732) $ 24,205,261 Of these liabilities, approximately $1,050,000 is expected to be paid during the fiscal year ending September 30, 2023. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 24 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 5. Long -Term Liabilities (continued) The Sheriff leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Sheriff's leases can be found in the Collier County Annual Comprehensive Financial Report or County -wide financial statements. Leases entered into by the Sheriff are included as other financing sources and capital outlay expenditures in the Statement of Revenues, Expenditures, and Changes in Fund Balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the Statement of Revenues, Expenditures, and Changes in Fund Balance as they are incurred. During the year ended September 30, 2022, the Sheriff entered into leases in the amount of $31,376. During the year ended September 30, 2022, the Sheriff's principal and interest payments on leases totaled $198,890. 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2022, were as follows: General Fund Prisoner Welfare Fund Internal Service Fund Other non -major special revenue funds Custodial funds Total Due From Due To $ 380,487 65,454 99,644 268,188 — 78,109 $ 445,941 $ 445,941 Interfund receivables and payables generally represent recurring activities between funds. 25 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 7. Related Party Transactions The Board provided funding for the Sheriff for the year of $211,052,800, and an additional $10,000,000 was American Rescue Plan Act grant funds that is not included in appropriations. At September 30, 2022, the Sheriff had a payable due to the Board of $2,350,909 comprised of the following: General fund: Distributions of excess appropriations $ 2,301,408 Distribution of interest collected 27,496 Miscellaneous payables 22,005 Total $ 2,350,909 Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $1,885,103 at September 30, 2022. 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 26 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 8. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. • Renewed Membership Class —Members who retired from July 1, 1991 through June 30, 2010, and are reemployed in a regularly established position with a covered employer, upon vesting again, are eligible for an additional retirement benefit based on service as a renewed member. Retirees of the FRS Investment Plan who are employed on or after July 1, 2017 are eligible for renewed membership in the Investment Plan. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. 27 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 8. Pension Plans (continued) Plan Description (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 8. Pension Plans (continued) Benefits Provided (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2022, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. 29 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 8. Pension Plans (continued) Benefits Provided (continued) As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2022, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 30 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 8. Pension Plans (continued) Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff's contributions made to the plans during the years ended September 30, 2022, 2021, and 2020 were $24,143,503, $20,409,973, and $19,677,937, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's annual comprehensive financial report. 9.Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). The liability, expense, deferred outflows of resources and deferred inflows of resources for OPEB, calculated in accordance with GASB Statement No. 75, are reported in the financial statements of the County. Plan Description The Sheriff administers a single -employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for retirees who have six years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 26% for both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 22% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. Participant Data At September 30, 2022, the Sheriff's plan participation consisted of: Active employees 1,156 Inactive employees or beneficiaries currently receiving benefit payments 150 31 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 9. Other Postemployment Benefits (continued) Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay -as -you go basis. No trust fund has been established for the plan. Total OPEB Liability The Sheriff's OPEB liability of $33,128,024 was measured as of September 30, 2022, and was determined by an actuarial valuation as of October 1, 2021. The following table shows the changes in the Sheriff's total OPEB liability for the year ended September 30, 2022. Total OPEB Liability Balance, as of October 1, 2021 $ 28,169,914 Changes: Service cost 734,513 Interest 422,604 Differences between expected and actual experience 10,708,734 Changes in assumptions or other inputs (5,446,075) Benefit payments (1,461,666) Net changes 4,958,110 Balance, as of September 30, 2022 $ 33,128,024 The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (2.3%) (3.3%) (4.3%) Total OPEB Liability $ 35,957,136 $ 33,128,024 $ 30,635,138 32 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 9. Other Postemployment Benefits (continued) The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 % point lower (4% decreasing to 3%) or 1 % point higher (6% decreasing to 5%) than the current healthcare cost trend rates: Healthcare rate sensitivity 1% Decrease Healthcare Cost 1% Increase Trend Rates (4%) (5%) (6%) Total OPEB Liability $ 30,546,087 $ 33,128,024 $ 36,080,227 Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2022, the Sheriff's OPEB expense was $2,557,152. In addition the Sheriff reported deferred outflow of resources and deferred inflow of resources from the following sources: Description Differences between expected and actual experience Changes in assumptions Total Deferred Deferred Outflows of Inflows of Resources Resources $ 15,409,795 2,282,175 $ 17,691,970 $ 26,809 5,843,531 $ 5,870,340 Amounts reported as deferred inflows of resources and deferred outflows of resources as an increase/decrease to OPEB expense will be recognized as follows: Net Deferred Outflows Year beginning October 1 of Resources 2022 $ 2,168,307 2023 2,168,307 2024 2,175,577 2025 2,046,602 2026 1,730,488 Thereafter 1,532,349 33 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 9. Other Postemployment Benefits (continued) Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 3.3% (Based on 20 year AA municipal bond rate) 5% None None Mortality rates were based on the Pri-2012 Mortality Fully Generational tables using Projection Scale MP-2021. The following changes have been made since the prior year valuation: • The discount rate was changed from 1.5% to 3.3% • The mortality assumption has been updated from Pri-2012 Mortality Fully Generational using Projection Scale MP-2020 to Pri-2012 Mortality Fully Generational using Projection Scale MP-2021. 34 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 10. Self -Insurance Program The Sheriff's Office participates in the Statewide Florida Sheriff's Self -Insurance Fund (the Fund) for its professional liability insurance. The Fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers' compensation coverage. The Florida Sheriffs Workers' Compensation Self Insurance Program is a self-insurance program providing coverage for the first $1,000,000 of every claim. Reinsurance is purchased by the Program to cover claims exceeding $1,000,000 (or $500,000 or $350,000 where applicable, based upon occurrence year of claim) up to $18,000,000. Reinsurance coverage up to $20,000,000 for any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third -party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self -insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self -funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In FY22 there was one covered individual who had a higher deductible amount because of a history of high claims. This individual had a deductible of $700,000. Specific claim excess coverage for this individual is for claims exceeding $700,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriff's Office uses a Third -Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2022 and 2021 are as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2021 $2,901,000 $30,590,007 ($30,255,007) $3,236,000 2022 $3,236,000 $29,060,254 ($28,831,254) $3,465,000 35 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2022 11. Commitments and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. Purchase Commitment On July 19, 2022, the Sheriff signed a Letter of Intent with Amzim Marine Services, LLC to purchase 2 boat motors totaling $47,952 obligating the Sheriff to purchase these boat motors. Delivery of these motors is scheduled for after January 1, 2023. 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CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida, Sheriff (Sheriff), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Sheriff's basic financial statements, and have issued our report thereon dated March 7, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff's internal control. Accordingly, we do not express an opinion on the effectiveness of the Sheriff's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as item 2022-001 that we consider to be a material weakness. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Sec CLAglobal.com/disclaimer 40 Honorable Kevin Rambosk Sheriff Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Sheriff's Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Sheriff's response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The Sheriff's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. G;�a-��c,� LLB Clifton LarsonAllen LLP Naples, Florida March 7, 2023 41 COLLIER COUNTY, FLORIDA SHERIFF SCHEDULE OF FINDINGS AND RESPONSES SEPTEMBER 30, 2022 2022-001: Audit Adjustment Type of Findings: Material weakness over financial reporting Criteria or specific requirement: The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Framework states that control activities are a component of internal control. Control activities are policies and procedures established to ensure that management directives are carried out, and consist of two elements, a policy that establishes what should be done and the procedure that implements the policy. COSO Framework states that control activities must be in place for there to be adequate internal control procedures over financial reporting. Internal control procedures affect the Sheriff's ability to ensure financial transactions are authorized and accurate. The Sheriff's management is responsible for establishing and maintaining internal controls for the proper recording of all the Sheriff's transactions in the financial statements and ensuring all transactions are recorded in the correct period. Condition: An audit adjustment was proposed to correct the Sheriff's financial statements at year- end related to prepaid expenditures for multi -year services that were improperly expensed in the 2022 financial statements in the amount of $1,138,685. An audit adjustment was made by management to correct the financial statements. Effect: The Sheriff's financial records were misstated and we proposed adjusting entries to management to correct the financial statements. The proposed audit adjustments were recorded by management to correct the financial statements. Cause: The Sheriff's internal controls over financial reporting did not detect or prevent the errors. Repeat finding: No. Recommendation: We recommend that management enhance its review over the financial statements and supporting schedules to ensure the information is accurately presented. Views of responsible officials and planned corrective actions: Management is in agreement with the audit finding. Management has evaluated the financial statement process review and supporting schedules and has put in place additional controls to ensure accuracy moving forward. Finance staff have been trained on the appropriate treatment of multi -year contracts that include prepayments. Prepayments will be recorded in the appropriate prepaid balance sheet object code and amortized accordingly. Requisitions for prepayments will be coded directly to the prepaid object code by the Budget staff. Multiyear contracts and purchase orders with prepayments will be tracked on an Excel spreadsheet by the GL Accountant who will calculate the appropriate monthly amortization and record a journal entry. The GL Accountant will reconcile the prepaid and amortization account monthly. The requisitions, reconciliations and journal entries will be reviewed and approved by the General Accounting Manager. 42 OPF Honorable Kevin Rambosk Sheriff Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated March 7, 2023. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and our Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 7, 2023, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Sec CLAglobal.com/disclaimer 43 Honorable Kevin Rambosk Sheriff Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 7, 2023 CliftonLarsonAllen LLP PAW CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida, Sheriff (Sheriff)'s compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2022. Management of the Sheriff is responsible for the Sheriff's compliance with the specified requirements. Our responsibility is to express an opinion on Sheriff's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Sheriff complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Sheriff complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on ourjudgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Sheriff's compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2022. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. LL.� CliftonLarsonAllen LLP Naples, Florida March 7, 2023 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Sec CLAglobal.com/disclaimer 45 11:IPyTe[HMION1:10IN1610MAN aIII anQW_101:/ Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2022 CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2022 Contents IndependentAuditors' Report..........................................................................................................1 Financial Statements Balance Sheet — Governmental Funds.............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances — GovernmentalFunds.....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual— General Fund..................................................................................................................6 Notes to Financial Statements..........................................................................................................7 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards..............................................21 ManagementLetter........................................................................................................................23 Independent Accountants' Report..................................................................................................25 op, Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of each major fund of the Collier County, Florida, Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Supervisor's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each major fund of the Supervisor as of September 30, 2022, and the respective changes in financial position and budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Supervisor and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Supervisor referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position and changes in financial position of each major fund of Collier County, Florida that is attributable to the transactions of the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2022, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Jennifer J. Edwards Supervisor of Elections Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Governmental Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Supervisor's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements is not affected by this missing information. 2 Honorable Jennifer J. Edwards Supervisor of Elections Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 16, 2023 on our consideration of the Supervisor's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Supervisor's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisor's internal control over financial reporting and compliance. Clifton LarsonAllen LLP Naples, Florida January 16, 2023 3 Collier County, Florida Supervisor of Elections Balance Sheet — Governmental Funds September 30, 2022 Grant Special General Revenue Total Assets Cash and cash equivalents $ 153,795 $ - $ 153,795 Accounts receivable 152 - 152 Total assets $ 153,947 $ - $ 153,947 Liabilities and fund balance Liabilities: Accounts payable $ 27,502 $ - $ 27,502 Accrued liabilities 80,765 - 80,765 Due to Collier County, Florida Board of County Commissioners 45,680 - 45,680 Total liabilities 153,947 - 153,947 Fund balances: Restricted - - - Total fund balances - - - Total liabilities and fund balances $ 153,947 $ - $ 153,947 See accompanying Notes to Financial Statements 91 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds Year Ended September 30, 2022 Revenues: Intergovernmental Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of expenditures over revenues Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations: Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balances Fund balances — beginning of the year Fund balances — end of the year See accompanying Notes to Financial Statements Grant Special General Revenue Total $ - $ 32,752 $ 32,752 - 32,752 32,752 2,617,041 - 2,617,041 1,653,493 32,752 1,686,245 572 - 572 6,938 - 6,938 296 - 296 4,278,340 32,752 4,311,092 (4,278,340) - (4,278,340) 572 - 572 4,307,100 - 4,307,100 (29,332) - (29,332) 4,278,340 - 4,278,340 5 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual General Fund Year Ended September 30, 2022 Revenues Expenditures: General government: Personal services Operating Capital outlay Debt Service Principal Debt Service Interest Total expenditures Deficiency of expenditures over revenues Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations: Collier County, Florida Board of County Commissioners Total other financing sources Net change in fund balance Fund balance — beginning of the year Fund balance — end of the year See accompanying Notes to Financial Statements Budget Original Final Actual Variance With Final Budget Positive (Negative) 2,564,800 2,634,800 2,617,041 17,759 1,707,300 1,672,300 1,653,493 18,807 35,000 - 572 (572) - - 6,938 (6,938) - - 296 (296) 4,307,100 4,307,100 4,278,340 28,760 4,307,100) (4,307,100) (4,278,340) 28,760 - 572 572 4,307,100 4,307,100 4,307,100 - - - (29,332) (29,332) 4,307,100 4,307,100 4,278,340 (28,760) 0 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida, Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections' budget is submitted to the Collier County, Florida, Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor's office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida, Annual Comprehensive Financial Report. There are no separate legal entities (component units) for which the Supervisor is considered to be financially accountable. The general operations of the Supervisor are funded by appropriations from the Collier County, Florida, Board of County Commissioners (BOCC), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Supervisor's general fund. The special revenue fund of the Supervisor is not budgeted and governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida, Annual Comprehensive Financial Report. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 7 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds: General Fund — The general fund is used to account for the general operations of the Supervisor and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund — The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unrnatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. E Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund -Type Definitions (continued) Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non -spendable fund balances as of September 30, 2022. Spendable fund balances are classified based on a hierarchy of the Supervisor's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor's fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements and have been presented in the fund financial statements in accordance with GASB Statement No. 54. 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor's annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor's total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor does not budget for the grant special revenue fund as it is funded by state grants and is governed by those documents. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 10 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 3. Cash and Cash Equivalents At September 30, 2022, the carrying value of the Supervisor's cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand Demand deposits Total cash and cash equivalents Custodial Credit Risk $ 200 N/A 153,595 N/A $ 153,795 At September 30, 2022, the Supervisor's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. 11 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 3. Cash and Cash Equivalents (continued) Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Supervisor and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2021 Additions Deductions 2022 Machinery and equipment $ 1,047,441 $ - $ (21,000) $ 1,026,441 Right -to -use leased equipment t 36,161 572 - 36,733 Total capital assets 1,083,602 572 (21,000) 1,063,174 Less accumulated depreciation: Machinery and equipment (725,658) (116,538) 21,000 (821,196) Right -to -use leased equipment 1 (4,862) (7,026) - (11,888) Total accumulated depreciation (730,520) (123,564) 21,000 (833,084) Total capital assets, net $ 353,082 $ (122,992) $ - $ 230,090 1 The Supervisor implemented GASB Statement No. 87 Leases in 2020. Right -to -use leased assets related to leases under GASB Statement No. 87 were added to the Supervisor's financial statement disclosure in 2022. 12 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2021 Additions Deductions 2022 Accrued Compensated Absences $ 219,439 $ 206,051 $ (153,813) $ 271,677 Of these liabilities, approximately $154,856 is expected to be paid during the fiscal year ending September 30, 2023, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. 13 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Background (continued) Essentially all regular employees of the Supervisor are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class — Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class — Members who hold specified elective offices in local government. Senior Management Service Class (SMSQ — Members in senior management level positions. Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. 14 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in - line -of -duty or regular disability and survivors' benefits. 15 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. For the fiscal year ended June 30, 2022, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. 16 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Supervisor employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. 17 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Supervisor. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump - sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor's contributions made to the plans during the years ended September 30, 2022, 2021, and 2020, were $220,264, $181,001, and $154,299 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's Annual Comprehensive Financial Report. IN Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 7. Related -Party Transactions For the year ended September 30, 2022, the Board provided funding for the Supervisor that amounted to $4,307,100. At September 30, 2022, the Supervisor had a payable due to the Board of $45,680 comprised as follows: Distribution of excess appropriations $ 29,332 Distribution of interest earnings 7,248 Amounts due for various services 9,100 Total due to Board of County Commissioners $ 45,680 8. Risk Management Collier County, Florida (County) is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self - insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County's self-insurance program. During the year ended September 30, 2022, the Supervisor was charged $368,330 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers' compensation and has purchased excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $300,000 per claim for general liability, public official errors and omissions, automobile liability, and crime coverage and has purchased excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -parry carriers in any of the last three years. 19 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2022 8. Risk Management (continued) The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $1,000,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Supervisor participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor's grants. Transfers were not required for the year ending September 30, 2022. 20 Clifton LarsonAllen LLP OAF CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of Collier County, Florida, Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Supervisor's basic financial statements, and have issued our report thereon dated January 16, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor's internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 21 Honorable Jennifer J. Edwards Supervisor of Elections Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Clifton LarsonAllen LLP Naples, Florida January 16, 2023 22 OPF Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements Clifton LarsonAllen LLP CLAconnect.com MANAGEMENT LETTER We have audited the financial statements of the Collier County, Florida, Supervisor of Elections (Supervisor) as of and for the fiscal year ended September 30, 2022 and have issued our report thereon dated January 16, 2023. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 16, 2023, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 23 Honorable Jennifer J. Edwards Supervisor of Elections Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida January 16, 2023 24 CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined Collier County, Florida, Supervisor of Elections' (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2022. Management of the Supervisor is responsible for the Supervisor's compliance with the specified requirements. Our responsibility is to express an opinion on the Supervisor's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Supervisor complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Supervisor complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Supervisor's compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2022. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida January 16, 2023 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 25 11:IPyTe[HMION1:10IN1610MAN aIII anQW_101:/ Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Year Ended September 30, 202' CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Collier County, Florida Tax Collector Financial Statements and Other Reports Year Ended September 30, 2022 Contents Independent Auditors' Report..........................................................................................................1 Financial Statements Balance Sheet — General Fund......................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance— General Fund.............................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — General Fund.............................................................................6 Statement of Fiduciary Net Position — Custodial Fund.................................................................7 Combining Statement of Changes in Fiduciary Net Position - Custodial Fund ...........................8 Notesto Financial Statements.......................................................................................................9 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards..............................................26 ManagementLetter........................................................................................................................28 Independent Accountants' Report ..................................................................................................30 See accompanying Notes to Financial Statements. 2 OPF Honorable Rob Stoneburner Tax Collector Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the general fund and the remaining fund information of the Collier County, Florida, Tax Collector (Tax Collector), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Tax Collector's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the remaining fund information of the Tax Collector as of September 30, 2022, and the respective changes in financial position and the budgetary comparison for the general fund for the year ended September 30, 2022, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Tax Collector and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Tax Collector referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position and changes in financial position of only that portion of the general fund and the remaining fund information of Collier County, Florida that is attributable to the transactions of the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2022, and the changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Rob Stoneburner Tax Collector Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Tax Collector's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 2 Honorable Rob Stoneburner Tax Collector Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 14, 2023, on our consideration of the Collier County, Florida, Tax Collector's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Tax Collector's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector's internal control over financial reporting and compliance. LLB CliftonLarsonAllen LLP Naples, Florida January 14, 2023 Collier County, Florida Tax Collector Balance Sheet — General Fund Year Ended September 30, 2022 Assets Cash and cash equivalents Accounts receivable Prepaid rent Prepaid expense Security deposit Total assets Liabilities and fund balance Liabilities: Accounts payable Due to Collier County, Florida Board of County Commissioners Due to other governmental agencies Other current liabilities Total liabilities Fund balance Total liabilities and find balance See accompanying Notes to Financial Statements. $ 11,532,698 1,913 16,227 1,587 14,868 $ 11,567,293 $ 206,835 9,730,750 1,470,389 159,319 11,567,293 $ 11,567,293 4 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2022 Revenues: Commissions and fees $ 27,744,766 Miscellaneous 242,121 Total revenues 27,986,887 Expenditures: General government: Personal services 13,550,522 Operating 2,752,224 Capital outlay 2,647,704 Debt Service - Principal 74,125 Debt Service - Interest 37,252 Total expenditures 19,061,827 Excess of revenues over expenditures 8,925,060 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Coinissioners (7,643,342) Distribution of excess commissions and fees to other governmental agencies (1,281,718) Total other financing uses (8,925,060) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year $ - See accompanying Notes to Financial Statements. Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual General Fund Year Ended September 30, 2022 Revenues: Commissions and fees Miscellaneous Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt Service - Principal Debt Service - Interest Total expenditures Excess of revenues over expenditures Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions and fees to other governmental agencies Total other financing uses Net change in fund balance Fund balance, beginning of year Fund balance, end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 25,957,860 $ 25,957,860 $ 27,744,766 $ 1,786,906 251,400 251,400 242,121 (9,279) 26,209,260 26,209,260 27,986,887 1,777,627 14,156,457 14,156,457 13,550,522 (605,935) 2,995,489 2,995,489 2,752,224 (243,265) 3,280,100 3,280,100 2,647,704 (632,396) - - 74,125 74,125 - - 37,252 37,252 20,432,046 20,432,046 19,061,827 (1,370,219) 5,777,214 5,777,214 8,925,060 3,147,846 See accompanying Notes to Financial Statements. (4,947,555) (4,947,555) (7,643,342) (2,695,787) (829,659) (829,659) (1,281,718) (452,059) (5,777,214) (5,777,214) (8,925,060) (3,147,846) Collier County, Florida Tax Collector Statement of Fiduciary Net Position Custodial Fund September 30, 2022 Assets Cash and cash equivalents Accounts receivable Total assets Liabilities Due to other governmental agencies Due to individuals and businesses Total liabilities Fiduciary Net Position See accompanying Notes to Financial Statements. $ 4,348,591 13,684 4,362,275 4,229,241 133,034 4,362,275 7 Collier County, Florida Tax Collector Combining Statement of Changes in Fiduciary Net Position Custodial Fund Year Ended September 30, 2022 Additions Tax Collections for Other Governments License and Fee Collections for Other Governments Miscellaneous Total Additions Deductions Payments of Tax to Other Governments Payments of Licenses and Fees to Other Governments Total Deductions Change in Fiduciary Net Position Fiduciary Net Position - Beginning of Year Fiduciary Net Position - End of Year See accompanying Notes to Financial Statements. $ 732,921,517 40,508,493 81,103 773,511,113 732,921,517 40,589,596 773,511,113 E Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector's operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector's office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector's financial statements include only the funds of the Tax Collector's office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Annual Comprehensive Financial Report. These fund financial statements report detailed information about the Tax Collector. The focus of governmental fund financial statements is by type. See accompanying Notes to Financial Statements. N Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector's only governmental fund is the general fund. The general fund is used to account for the general operations of the Tax Collector and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days after year- end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Tax Collector's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the "susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. See accompanying Notes to Financial Statements. 10 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Custodial funds — Fiduciary funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Custodial funds do not involve measurement of results of operations or have a measurement focus (assets equal liabilities). Custodial funds are accounted for using the accrual basis of accounting. Refund of "Excess Fees" Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use -transfer out in the accompanying financial statements. Compensated Absences On October 1, 2021, the Tax Collector's office transitioned from having two paid time off (PTO) policies (sick and vacation) to a single PTO policy. All full-time employees of the Tax Collector are allowed to accumulate a limited number of PTO hours (between 136 and 240 annually), depending on tenure. Any accrued hours from the discontinued sick policy were valued at the employees' September 30, 2021, rate of pay with multiple options for payout. First, employees with 800 or more accumulated sick hours could choose to exchange their first 800 hours for free health insurance until covered by Medicare. Secondly, all remaining employees could choose between 1) immediate 100% payout into their Section 457(b) upon satisfying budget and Internal Revenue Service contributions limitations or 2) up to 75% payout upon separation of service. Any accrued hours from the discontinued vacation policy were rolled into the new PTO policy. Upon separation of service, employees receive 1) 100% of accumulated PTO hours at their current rate of pay and 2) a percentage of unused sick leave hours (ranging from 0% to 75%, depending on years of service), valued at the employees' September 30, 2021, rate of pay. PTO and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. See accompanying Notes to Financial Statements. 11 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Florida Statutes, Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. Chapter 197, Florida Statutes, governs property tax collections as follows: Current Taxes All property taxes become due and payable on November 1 and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1% for payment in February. Unpaid Taxes — Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. The Tax Collector must receive payment before the certificates are delivered. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tax Deeds Two years after the purchase of a tax certificate the owner may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. See accompanying Notes to Financial Statements. 12 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these financial statements requires management of the Tax Collector to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector's annual budget. The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector's total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. See accompanying Notes to Financial Statements. 13 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 3. Cash At September 30, 2022, the carrying value of the Tax Collector's cash was as follows: 2022 Carrying Type Value Cash on hand $ 33,629 Demand deposits 15,847,660 Total cash and cash equivalents $ 15,881,289 Such amounts are reported as $11,532,698 and $4,348,591 for 2022 in the general and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2022, the Tax Collector's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Tax Collector's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. See accompanying Notes to Financial Statements. 14 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 3. Cash (continued) Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Tax Collector are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. See accompanying Notes to Financial Statements. 15 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2022: Capital assets not depreciated: Construction in progress Total assets not depreciated Capital assets - depreciable: Infrastructure Improvements other than buildings Machinery and equipment Right -to -use leased building 1 Right -to -use leased equipment 1 Total depreciable capital assets Accumulated depreciation: Infrastructure Improvements other than buildings Machinery and equipment Total accumulated depreciation Accumulated amortization: Right -to -use leased building 1 Right -to -use leased equipment 1 Total accumulated amortization Total depreciable capital assets, net Total capital assets, net October 1, Deletions/ September 30, 2021 Additions Reclassifications 2022 $ 10,007,556 $ 2,563,462 $ (12,515,500) $ 55,518 10,007,556 2,563,462 (12,515,500) 55,518 21,988 - (15,871) 6,117 105,093 - (78,333) 26,760 1,816,612 84,243 (515,106) 1,385,749 1,894,005 - - 1,894,005 53,259 - (18,054) 35,205 3,890,957 84,243 (627,364) 3,347,836 (12,760) (1,453) 8,950 (5,263) (105,093) - 78,333 (26,760) (1,454,035) (78,578) 515,105 (1,017,508) (1,571,888) (80,031) 602,388 (1,049,531) (187,173) (93,458) - (280,631) (20,104) (12,699) 18,054 (14,749) (207,277) (106,157) 18,054 (295,380) (6,922) 2,002,925 2,111,792 (101,945) $ 12,119,348 $ 2,461,517 $ (12,522,422) $ 2,058,443 1 The Tax Collector implemented GASB Statement No. 87 Leases in Fiscal Year 2020. Leases under GASB Statement No. 87 were added to the financial statements disclosure in Fiscal Year 2022, resulting in a change in beginning balances. During the fiscal year ended September 30, 2022, costs related to the completed construction of the Heritage Bay Government Center totaling $12,515,500 and equipment of $84,243 were transferred to Collier County, Florida. See accompanying Notes to Financial Statements. 16 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2021 Increase Decrease 2022 Accrued compensated absences $ 1,255,433 $ 964,106 $ (1,649,231) $ 570,308 Of these liabilities, approximately $483,400 is expected to be paid during the fiscal year ending September 30, 2023, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. See accompanying Notes to Financial Statements. 17 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Background (continued) Essentially all regular employees of the Tax Collector are required to enroll as members of the State -administered FRS, except for some re-employed retirees. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www. dms. myflorida. com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. • Special Risk Administrative Support Class — Members who provide administrative support for a special risk employer. See accompanying Notes to Financial Statements. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Special risk employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, and death benefits to eligible participants. Annual cost -of -living adjustments are limited to members initially employed before July 1, 2011. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. See accompanying Notes to Financial Statements. 19 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. Retiree Health Insurance Subsidy Promram Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. See accompanying Notes to Financial Statements. 20 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) Retiree Health Insurance Subsidy Prozram Benefits Provided For the fiscal year ended June 30, 2022, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. See accompanying Notes to Financial Statements. 21 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2022, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump - sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector's contributions made to the plans during the years ended September 30, 2022, 2021, and 2020 were $1,156,878, $992,718, and $843,840, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's Annual Comprehensive Financial Report or County -wide financial statements. See accompanying Notes to Financial Statements. 22 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 7.Other Postemployment Benefits (OPEB) In accordance with Section 112.0801, Florida Statutes, the Tax Collector participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 8. Related Party Transactions During the fiscal year ended September 30, 2022, the Board paid commissions and fees to the Tax Collector that amounted to $20,456,181. At September 30, 2022, the Tax Collector had a payable due to the Board of $9,730,750 comprised as follows: 2022 Distribution of unused commissions and fees $ 7,643,342 Tax and fee collections due to the Board 2,087,408 Total $ 9,730,750 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. The Tax Collector participates in the County's self-insurance program. During the year ended September 30, 2022, the Tax Collector was charged $3,062,267 by the County for participation in the risk management program. See accompanying Notes to Financial Statements. 23 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 9. Risk Management (continued) The County retains the first $600,000 per claim for workers' compensation and has purchased excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $300,000 per claim for general liability, public official errors and omissions, automobile liability and crime coverage and has purchased excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $1,000,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Collier County Tax Collector leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 - Leases. Detailed information about the Collier County Tax Collector's leases can be found in the Collier County Annual Comprehensive Financial Report or County -wide financial statements. Leases entered into by the Collier County Tax Collector are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. See accompanying Notes to Financial Statements. 24 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2022 10. Commitments and Contingencies (continued) Leases (continued) During the year ended September 30, 2022, the Collier County Tax Collector did not enter into any new leases. During the year ended September 30, 2022, the Collier County Tax Collector's principal payments on leases totaled $74,125. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector. See accompanying Notes to Financial Statements. 25 OPF Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Rob Stoneburner Tax Collector Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the remaining fund information of the Collier County, Florida, Tax Collector (Tax Collector) as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Tax Collector's basic financial statements, and have issued our report thereon dated January 14, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector's internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 26 Honorable Rob Stoneburner Tax Collector Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. /�a, � � LLB CliftonLarsonAllen LLP Naples, Florida January 14, 2023 27 0 Honorable Rob Stoneburner Tax Collector Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Tax Collector (Tax Collector) as of and for the year ended September 30, 2022, and have issued our report thereon dated January 14, 2023. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated January 14, 2023 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings reported in the prior audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Sep CLAglobal.com/disclaimer 28 Honorable Rob Stoneburner Tax Collector Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 14, 2023 29 OPF Honorable Rob Stoneburner Tax Collector Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT We have examined the Collier County, Florida, Tax Collector (Tax Collector)'s compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; during the year ended September 30, 2022. Management of the Tax Collector is responsible for the Tax Collector's compliance with the specified requirements. Our responsibility is to express an opinion on the Tax Collector's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Tax Collector complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Tax Collector complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Tax Collector's compliance with specified requirements. In our opinion, the Tax Collector's complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; during the year ended September 30, 2022. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. LLB CliftonLarsonAllen LLP Naples, Florida January 14, 2023 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 30 11:IPyTe[HMION1:10IN1610MAN aIII anQW_101:/ to �r -r