IWSD Basic Financial Statements Years Ended 9/30/2022 & 2021IMMOKALEE WATER & SEWER DISTRICT
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
TOGETHER WITH ADDITIONAL REPORTS
YEARSENDED
SEPTEMBER 30, 2022 AND 2021
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT........................................................................................... 1-4
MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A)....................................................... I -IX
BASIC FINANCIAL STATEMENTS
Statementsof Net Position.................................................................................................................... 5
Statements of Revenues, Expenses, and Changes in Net Position........................................................ 6
Statementsof Cash Flows..................................................................................................................... 7
Notes to the Financial Statements......................................................................................................... 8-34
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
Schedule of Revenues, Expenses and Changes in Net Position - Budget
(Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP
Basis - Year Ended September 30, 2022............................................................................................. 35-41
Schedule of Expenditures of Federal Awards -
Year Ended September 30, 2022.............................................................................. 42
Notes to the Schedule of Expenditures of Federal Awards .................................................. 43
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Basic Financial Statements Performed
in Accordance with Government Auditing Standards...................................................... 44-45
Independent Auditor's Report on Compliance for Each Major Program/Project and on
Internal Control Over Compliance Required by the Uniform Guidance ................................ 46-48
Schedule of Findings and Questioned Costs - Federal Awards........................................................... 49-50
Independent Accountant's Report on Compliance with
Section 218.415, Florida Statutes............................................................................. 51
Independent Auditor's Report to Management................................................................ 52-55
Management's Response to the Independent Auditor's Report to Management .......................... Exhibit 1
Florida Rules of the Auditor General - Rule 10.554(1)(i)6-8 Compliance - Unaudited ................ Exhibit 2
Affiliations
TUSCAN
Florida Institute of Certified Public Accountants
& Company, PA
Certified Public Accountants & Consultants
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
American Institute of Certified Public Accountants
Private Companies Practice Section
Opinion
We have audited the accompanying basic financial statements of the business -type activities of
Immokalee Water & Sewer District (an independent special district) (the "District") as of and for the
years ended September 30, 2022 and 2021, and the related notes to the financial statements, which
collectively comprise the District's basic financial statements as listed in the table of contents.
In our opinion, based on our audits, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the business -type activities of Immokalee Water &
Sewer District as of September 30, 2022 and 2021, and the respective changes in financial position and
cash flows thereof, for the years then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the District, 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.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
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 District'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.
INTEGRITY ......... SERVICE ......... EXPERIENCE
Tax Division
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Board of Commissioners
Immokalee Water & Sewer District
Page 2
Auditor's 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 auditor's 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 generally accepted 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 generally accepted 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 District'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 District'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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages I - IX be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information - management's discussion
and analysis (MD&A) in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information
Board of Commissioners
Immokalee Water & Sewer District
Page 3
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the required supplementary
information - management's discussion and analysis (MD&A) because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise Immokalee Water & Sewer District's basic financial statements. The required
supplementary information other than MD&A - budgetary comparison information - Schedule of
Revenues, Expenses and Changes in Net Position - Budget (Non-GAAP Budgetary Basis) and Actual
with Reconciliation to GAAP Basis - year ended September 30, 2022 is presented for purposes of
additional analysis and is not a required part of the basic financial statements. The required
supplementary information other than MD&A - budgetary comparison information - Schedule of
Revenues, Expenses and Changes in Net Position - Budget (Non-GAAP Budgetary Basis) and Actual
with Reconciliation to GAAP Basis - year ended September 30, 2022 is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the required supplementary information other than MD&A budgetary
comparison information - Schedule of Revenues, Expenses and Changes in Net Position - Budget
(Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP Basis - year ended September
30, 2022 is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Our audit was conducted for the purpose of forming an opinion on the financial statements of
Immokalee Water & Sewer District that collectively comprise the Immokalee Water & Sewer District's
basic financial statements. The accompanying Schedule of Expenditures of Federal Awards for the
year ended September 30, 2022 as required by the Title 2 U.S. Code of Federal Regulations (CFR) Part
200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards" and is presented for purposes of additional analysis and is not a required part of the 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 financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the accompanying Schedule of Expenditures
of Federal Awards and State Financial Assistance for the year ended September 30, 2022 is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
Board of Commissioners
Immokalee Water & Sewer District
Page 4
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the District's basic financial statements. The Exhibit 1 - Management's Response
to Independent Auditor's Report to Management and Exhibit 2 - Florida Rules of the Auditor General -
Ue 10.554(1)(i)64 Compliance are not a required part of the basic financial statements but is required
by Government Auditing Standards and/or Rules of the Auditor General, Section 10.554(i), respectively.
Such information has not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on it.
Other Reporting Required by Section 218.415, Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have also issued a report dated April 18, 2023
on our consideration of Immokalee Water & Sewer District's compliance with provisions of Section
218.415, Florida Statutes. The purpose of that report is to describe the scope of our testing of
compliance and the results of that testing, and to provide an opinion on compliance with the
aforementioned Statute. That report is an integral part of an audit performed in accordance with
Sections 218.39 and 218.415, Florida Statutes in considering Immokalee Water & Sewer District's
compliance with Section 218.415, Florida Statutes,
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 18,
2023 on our consideration of the District's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contract and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing; Standards in considering the District's internal
control over financial reporting and compliance.
4 e
44
®/.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
April 18, 2023
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
The management of the Immokalee Water & Sewer District offers readers of our
financial statements the following narrative overview and analysis of our financial
activities for the year ended September 30, 2022.
Basic Financial Statements
Our basic financial statements are prepared using proprietary fund (enterprise fund)
accounting that uses the same basis of accounting as private -sector business enterprises.
The District is operated under one enterprise fund. Under this method of accounting, an
economic resources measurement focus and an accrual basis of accounting is used.
Revenue is recorded when earned and expenses are recorded when incurred. The basic
financial statements include a statement of net position, a statement of revenues, expenses
and changes in net position, a statement of cash flows, and a reconciliation of operating
profit (loss) to net cash provided by operating activities. These financial statements are
followed by notes to the financial statements. In addition to the basic financial
statements, this report also contains required supplementary information pertaining to
budgetary reconciliations.
The statement of net position presents information on the District's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position
of the District is improving or deteriorating.
The statement of revenues, expenses, and changes in net position reports the operating
revenues and expenses and nonoperating revenues and expenses of the District for the
fiscal year. The difference, the net income or loss, is combined with any capital grants to
determine the increase or decrease in net position for the fiscal year. The increase or
decrease, combined with the net position at the end of the previous year, total to the net
position at the end of the current fiscal year.
The statement of cash flows reports cash and cash equivalent activities for the fiscal year
resulting from operating activities, capital and related financing activities, noncapital and
related financing activities and investing activities. The net result of these activities added
to the beginning of the year cash balance, total to the cash and cash equivalent balance at
the end of the current fiscal year.
lu V17TIVI
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
Condensed Financial Statement
Condensed financial information from the statements of net position and revenues, expenses and changes in net position
for the years ended September 30, 2022 and 2021 are as follows:
September 30,
2022 2021
Current and other assets
$ 18,852,586
$ 19,157,207
Capital assets, net
58,270,517
57,839,301
Total assets
$ 77,123,103
$ 76,996,508
Current liabilities
$ 3,656,260
$ 4,498,790
Long-term liabilities
30,251,807
30,187,762
Total liabilities
33,908,067
34,686,552
Net position
Net Investment in capital assets
27,260,934
26,938,398
Restricted
2,163,187
3,247,717
Unrestricted
13,790,915
12,123,841
Total net position
43,215,036
42,309,956
Total liabilities and net position
$ 77,123,103
$ 76,996,508
Operating revenue:
Water service
$ 4,108,228
$ 4,096,083
Wastewater service
5,983,159
5,832,186
Meter service charges
863,741
826,307
Late fees
86,025
83,325
Reconnection /transfer fee
106,230
105,444
Miscellaneous revenue
289,067
285,718
Cross connection control fees
374,532
370,198
Total operating revenues
11,810,982
11,599,261
Operating expenses
Water treatment and distribution expense
2,611,253
2,241,418
Wastewater treatment expense
2,143,222
1,976,012
Wastewater collection expense
922,851
940,465
Customer service and administrative expense
2,005,640
2,369,788
Maintenance
424,387
388,238
Total operating expenses, excluding depreciation
8,107,353
7,915,921
Depreciation
2,534,093
2,525,470
Total operating expenses, including depreciation
10,641,446
10,441,391
Operating profit (loss)
1,169,536
1,157,870
Net nonoperating revenue/(expense)
(1,136,378)
(1,049,507)
Profit (loss) before capital grants
33,158
108,363
Capital grants and contributions
871,922
126,884
Increase (Decrease) in net position
905,080
235,247
Beginning of year net position
42,309,956
42,074,709
End of year net position $
43,215,036
$ 42,309,956
(Continued)
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
The information contained in the condensed financial information table is used as the
basis for the discussion presented on the following pages, surrounding the District's
activities for the fiscal year ended September 30, 2022.
Financial Highlights
• The District completed a rate study and adopted the related rate increase of 3%
per year for FY 2020-2022. Rate increases are effective on October 1, 2019,
October 1, 2020 and October 1, 2021.
• The District ended the year September 30, 2022, with a net position of
$43,215,036 of which $27,260,934 represented the net investment in capital assets
$2,163,187 represents restricted net position and $13,790,915 was unrestricted.
The ending net position was $905,080 more than the net position at the beginning
of the year. This was primarily the result of the implementation of the previous
rate increases.
• The District ended the year September 30, 2021, with a net position of
$42,309,956 of which $26,938,398 represented the net investment in capital assets
and $12,123,841 was unrestricted. The ending net position was $235,247 more
than the net position at the beginning of the year. This was primarily the result of
the implementation of the rate increases.
• The District had profit before capital contributions, for the years ended September
30, 2022 and 2021 of $33,158 and $108,363, respectively.
• The District had minimized interest expense, because of utilizing low interest
bonds/loans for capital projects funded through USDA Rural Development.
These interest rates range from 2.25% to 5.125% in F&Y 21. During FY 22 the
District paid off 2 bond issues and refinanced 5 others to lower the annual debt
service and reduce interest costs. The new Refunding Series 2022 bond has a
fixed 4% interest rate. Now bond interest rates range from 2% to 4%. District
projects are financed through a combination of bonds, loans and grants.
• The District ended the year September 30, 2022 with cash and cash equivalents
and investments of approximately $16,080,990. However, only $12,406,353 of
this amount is available for operations, with the remainder of these assets being
restricted for specific purposes and unavailable for the District's general use.
• The District ended the year September 30, 2021 with cash and cash equivalents
and investments of approximately $16,918,945. However, only $12,266,422 of
this amount is available for operations, with the remainder of these assets being
restricted for specific purposes and unavailable for the District's general use.
• The statement of cash flows identifies the sources and uses of cash activity for the
fiscal year. For fiscal year 2022, cash and cash equivalents decreased by
$(223,918) compared to an increase of $469,004 for the year ended September 30,
2021. This change resulted primarily from the cost of capital projects and paying
off 2 bond issues. The servicing of the District's debt (principal and interest)
resulted in the spending of cash of nearly $1,051,828.
MDA III
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
• The statement of cash flows identifies the sources and uses of cash activity for the
fiscal year. For fiscal year 2021, cash and cash equivalents increased by $469,004
compared to an increase of $997,575 for the year ended September 30, 2020. This
change resulted primarily from the receipt of grant funds to fund the cost of a
capital project. The servicing of the District's debt (principal and interest) resulted
in the spending of nearly $1,971,032.
Revenue
As in previous years, the wastewater service revenues make up half or more of the
operating revenues, accounting for 51% in 2022 and 50% in 2021. Water revenue
accounted for 35% in 2022 and 35% in 2021. Meter service charges, late fee charges,
reconnection fees, and miscellaneous revenues also remained constant between the two
years. Cross connection control fees remained at 3 % in 2022 and 2021.
The District was successful in receiving an increase in the District boundaries by the
Florida Legislature, during the Spring 2005 session. This change in the boundaries is
expected to result in increased opportunities for new users, in future years. We will be
working on a revised capital improvement plan, in conjunction with the Immokalee
Master Plan, to identify the needs within the next fiscal year.
Expenses
Due to the significant investments the District has in capital assets, depreciation
continues to be one the largest operating expenses at 24% of total operating expenses per
year. Unlike the other expenses listed, depreciation is not a cash expense.
The first largest department in FY 21, by expenses, was the administration department,
which consists of nine full time employees and one part-time employee. The related
operating expenses remained constant at 23% of total expenses in 2022. In FY 22 the
administrative department was the third largest department at 19% of total expense. The
largest expense, in this department, other than salaries and benefits are engineering and
legal fees.
The water treatment and distribution departments consist of thirteen full-time employees.
The District is programing a new advanced metering infrastructure project to use cellular
data to read meters from the office. This interactive technology will allow staff access to
real time data for customer inquiries on usage, quicker leak detection, efficient
maintenance planning and ultimately effective monitoring of the water system.
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
The wastewater treatment department, by expenses, consist of 20% and 19% of total
operating expenses which remained constant between 2022 and 2021, respectively. This
department is one of the largest, with eight full time employees and one part-time
employee. One of the largest expenses, excluding salaries and benefits, in this department
is electric, which accounted for over $209,000 and $200,000 in expenses in 2022 and
2021, respectively.
The wastewater collection department consists of five full time employees. The related
operating expenses were at 9% and 9% in 2022 compared to 2021, respectively.
The smallest department is the maintenance department, which was created in fiscal year
2004 to reduce maintenance -related expenses from third -party vendors. It consists of six
full time employees. It accounts for 4% and 3% of total operating expenses in 2022 and
2021, respectively. Labor costs in this department, except for those relating to the
supervisor, are charged to the appropriate departments, based on the maintenance projects
they are working on.
Wages and benefits account for 39% and 37% of the total operating expenses in 2022 and
2021, making it the largest expense category. Depreciation expense accounts for 24%
and 24%, for 2022 and 2021, respectively.
The District continues to monitor costs. The District considers cost of living increases
during the budget cycle and provides merit increases based upon performance
evaluations. The District follows best practices for water and wastewater systems in
promoting employees who meet specified criteria for certification and licensing. The
District bids out contracts for major expenses, such as health insurance, property
insurance, residuals management and chemicals. The District has an arrangement with
Collier County Fleet Management allowing the District to access their fuel tanks, located
in Immokalee, to take advantage of bulk -usage savings.
General Fund Budgetary Highlights
Over the course of the 2022 fiscal year, the Board of Commissioners amended the
District budget. These budget amendments were done primarily to a) increase operating
revenue, and to b) increase operating expenses, capital funding primarily related to the
District's projects, bond refinancing related costs and adjust designated funds.
Original to Final Budget Variance
For the fiscal year 2022 total operating revenues were increased by approximately
$404,000 more than originally budgeted, and total operating expenses, excluding
depreciation expense, were decreased by nearly $1,248,000.
lu �
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
Capital outlay — capital outlay was decreased by nearly $3,122,000.
Final Budget to Actual Variance
For the fiscal year 2022 total operating revenue was approximately $393,000 less than
originally budgeted.
Capital Assets
The District's net capital assets as of September 30, 2022 and 2021 amounted to
$58,270,517 and $57,893,301 (net of accumulated depreciation), respectively. This
investment in capital assets includes land, construction in progress, buildings and
improvements, water and wastewater plants and systems, and machinery and equipment.
Net capital asset additions included the following for the years ended September 30:
2022 2021
Construction in progress $ 2,093,981 $ 2,449,349
Buildings and improvements - -
Water and wastewater plants and systems 806,323 330,922
Machinery and equipment 66,309 75,014
$ 2,966,613 $ 2,855,285
Construction in progress for 2022 was primarily for the clarifier project and clay pipe
replacement.
Construction in progress for 2021 was primarily for the clarifier project.
The District primarily acquires its assets with the proceeds from federal capital grants and
revenue bonds, supplemented by user fees. USDA Rural Development is the primary
source of proceeds, because they offer low interest loans for capital improvements. We
also received contributed capital in the form of new water and sewer infrastructure from
developers. New equipment purchases and a system expansion are part of the District's
capital improvement program. Capital purchases are acquired using bids, or Florida State
Contract prices.
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
Debt
As of September 30, 2022, the District had $30,276,000 of revenue bonds outstanding. The
total amount outstanding for this category of debt decreased, to reflect the net ($10,549,969
principal retired plus $10,514,000 bonds issued) principal payments by the District of
$35,969.
As of September 30, 2021, the District had $30,311,969 of revenue bonds outstanding. The
total amount outstanding for these categories of debt decreased, to reflect the principal
payments by the District of $769,000.
Unrestricted Net Assets
As of September 30, 2022, the District had designated $11,554,207 in unrestricted net
assets, as recommended by the auditor. The District designated $941,631 for emergencies,
$3,982,093 for operations, $607,483 for vehicle replacement, $1,000,000 for capital
equipment, $3,523,000 for future capital projects, and $1,500,000 for maintenance reserve.
As of September 30, 2021, the District had designated $10,744,661 in unrestricted net
assets, as recommended by their auditor. The District designated $941,631 for
emergencies, $3,813,925 for operations, $607,483 for vehicle replacement, $1,000,000 for
capital equipment, and $4,381,622 for maintenance reserve.
Upcoming Significant Changes or Impacts
Rate Increases: In fiscal year 2022, the District retained Raftelis Financial Consultants
Inc. (formerly PRMG), to perform a water and wastewater revenue sufficiency and
miscellaneous fee study. The monthly rates pay for:
Water Supply & Treatment Administration
Capital Maintenance of Major Assets
Laboratory & Testing & Infrastructure
Distribution & Maintenance Replacement of Minor Equipment
Customer Service & Billing Loan Payments
The Board held a public workshop on July 20, 2022 and a separate public hearing on
August 17, 2022 to discuss the adequacy of the exiting monthly service rates and adopted a
9.5% per year rate increase for the next three (3) years (FY 2023 through FY 2025).
Miscellaneous fees and charges address costs for customer -specific service requests such as
cross connection control, meter installation and tap, reconnect/disconnect. The review of
the adequacy of the miscellaneous fees and charges resulted in an overall increase to most
fees since existing charges had not been adjusted since 2017. There were two (2) charges
MDA VII
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
eliminated and several fees were determined to be adequate at the current level and no
changes were made.
The Board held a public hearing on September 21, 2022 to discuss the adequacy of the
existing miscellaneous fees and charges and adopted a revised fee schedule.
New Development: There are several new non-profit developments under construction that
will become system users including Fair Housing Alliance (128 units), Habitat for
Humanity (Kaicasa) (280 units), Redlands Christian Migrant Association (RCMA)
(daycare/charter school, office/community center, 160 multifamily units). Other new non-
profit developments via Pulte Family Foundation and Catholic Charities are in the planning
stages.
The Williams Ranch PUD is the only for -profit development currently being planned. 366
units were recently approved by Collier County. The expected buildout is 2000 units.
Capital Improvements: The District is closing out the wastewater clarifier rehabilitation
project with a final cost of approximately $2,778,000.
The District submitted appropriation requests to the 2023 Florida Legislature to fund three
(3) major projects:
• Immokalee Reuse/Reclaimed Water Treatment - $10,000,000
• Immokalee Smart Utility - $7,000,000
• Immokalee Water Softening Treatment - $9,000,000
As of this writing, the legislature has the water softening project funded at 100% and the
other two (2) projects at 50%.
The District continues to manufacture our own fertilizer branded "Organ Kalee" and
markets to agricultural uses. The District is exploring variations to refining the fertilizer
which may improve its marketability.
Collier County Projects: Tiger Grant - Collier County was awarded a $13,000,000 grant
to construct complete streets improvement in Immokalee including 20 miles of new
sidewalks, a bike boulevard network, a shared -use path, street lighting, drainage
improvements, a new transit center, landscaping, and intersection and traffic calming
improvements. There are significant utility relocations associated with this project that the
District is responsible for funding.
Lake Trafford Road Stormwater/Pedestrian/Bike Improvements — Collier County is
constructing stormwater improvements to address severe flooding issues along
MDA VIII
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2022
approximately 3 miles of Lake Trafford Road. The plans indicate that relocation of a water
main and sewer lines are necessary. The District is analyzing the related costs.
Request For Information
This financial report is intended to provide an overview of the finances of the District for
those with an interest in this organization. Questions concerning any information within
this report, may be directed to the Executive Director of the District, 1020 Sanitation Road,
Immokalee, Florida 34142.
IMMOKALEE WATER & SEWER DISTRICT
STATEMENTS OF NET POSITION
September 30, 2022 and 2021
ASSETS
CURRENT ASSETS
Cash
Investments - CDs
Accounts receivable, net
Other receivables
Inventory
Prepaid expenses
TOTAL CURRENT ASSETS
RESTRICTED ASSETS
Cash
Grant and assessment receivables
TOTAL RESTRICTED ASSETS
CAPITAL ASSETS
Capital assets not being depreciated:
Land
Construction in progress
Capital assets being depreciated:
Buildings and improvements
Water and wastewater plants and systems
Machinery and equipment
Less:
Accumulated depreciation
TOTAL ASSETS
2022 2021
$ 12,406,353 $ 11,652,385
637,219
614,037
731,390
735,906
36,151
86,052
229,879
341,664
14,040,992 13,430,044
3,674,637
4,652,523
1,136,957
1,074,640
4,811,594
5,727,163
2,645,941 2,645,941
3,593,683 1,820,071
1,677,771
1,670,776
89,843,527
88,725,161
3,624,858
3,587,242
(43,115,263) (40,609,890)
58,270,517 57,839,301
$ 77,123,103 $ 76,996,508
The accompanying notes are an integral part of this statement.
Page 5 of 55
2022 2021
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts and contracts payable $ 872,020 $ 1,813,119
Other accrued expenses 91,972 162,364
Capital lease payable, current portion 43,861 43,861
TOTAL CURRENT LIABILITIES 1,007,853 2,019,344
CURRENT LIABILITIES (Payable from Restricted Assets)
Revenue bonds payable, current portion
849,000
798,000
Loans payable - SRF, current portion
38,810
37,825
Accrued revenue bond interest
73,278
85,239
Retainage payable
105,646
46,541
Customer deposits
1,581,673
1,511,841
TOTAL CURRENT LIABILITIES
(Payable from Restricted Assets)
2,648,407
2,479,446
LONG-TERM LIABILITIES
Line of Credit (LOC)
-
-
Revenue bonds payable, net of current portion
29,706,838
29,513,969
Loans payable - SRF, net of current portion
349,143
387,954
Capital lease payable, net of current portion
21,931
65,793
Bond anticipation note
-
53,501
Accrued compensated absences
173,895
166,545
TOTAL LONG-TERM LIABILITIES
30,251,807
30,187,762
Commitments
-
-
TOTAL LIABILITIES
33,908,067
34,686,552
NET POSITION
Net investment in capital assets 27,260,934 26,938,398
Restricted 2,163,187 3,247,717
Unrestricted 13,790,915 12,123,841
TOTAL NET POSITION 43,215,036 42,309,956
TOTAL LIABILITIES AND NET POSITION $ 77,123,103 $ 76,996,508
IMMOKALEE WATER & SEWER DISTRICT Page 6 of 55
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Years ended September 30, 2022 and 2021
2022
2021
OPERATING REVENUES
Water service
$ 4,108,228 $
4,096,083
Wastewater service
5,983,159
5,832,186
Meter service charge
863,741
826,307
Late fees
86,025
83,325
Reconnect and transfer fees
106,230
105,444
Miscellaneous charges, fees and other
income
289,067
285,718
Cross connection control fee
374,532
370,198
TOTAL OPERATING REVENUES
11,810,982
11,599,261
OPERATING EXPENSES
Water treatment and distribution
2,611,253
2,241,418
Wastewater treatment
2,143,222
1,976,012
Wastewater collection
922,851
940,465
Customer service and administrative
2,005,640
2,369,788
Maintenance
424,387
388,238
TOTAL OPERATING EXPENSES
PRIOR TO DEPRECIATION
8,107,353
7,915,921
Depreciation
2,534,093
2,525,470
TOTAL OPERATING EXPENSES
10,641,446
10,441,391
OPERATING PROFIT (LOSS)
1,169,536
1,157,870
NON -OPERATING REVENUES (EXPENSES)
Interest income
56,678
59,327
Gain (loss) on disposition of capital assets
3,331
7,200
Interest expense
(922,210)
(1,124,908)
Bond issuance costs
(305,502)
-
Bad debt expense adjustment
(11,501)
-
Covid 19 expense
-
(26,308)
Other income
42,826
35,182
NET NON -OPERATING EXPENSES
(1,136,378)
(1,049,507)
PROFIT (LOSS) BEFORE CAPITAL
CONTRIBUTIONS
33,158
108,363
CAPITAL CONTRIBUTIONS
USDA - grants
768,250
-
Customers
73,465
79,095
Developers
30,207
47,789
TOTAL CAPITAL CONTRIBUTIONS
871,922
126,884
INCREASE (DECREASE) IN NET POSITION
905,080
235,247
NET POSITION - Beginning of the year
42,309,956
42,074,709
NET POSITION - End of the year
$ 43,215,036
$ 42,309,956
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
STATEMENTS OF CASH FLOWS
Years ended September 30, 2022 and 2021
2022 2021
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Cash received from customers $ 11,923,730 $ 11,504,845
Cash payments to suppliers and employees (8,999,709) (6,880,086)
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 2,924,021 4,624,759
CASH FLOWS FROM (USED IN) NONCAPITAL FINANCING:
Other income received
42,826
35,182
Bond issuance cost
(305,502)
-
Other expenses paid (Covid 19)
-
(26,308)
NET CASH PROVIDED BY (USED IN)
NONCAPITAL FINANCING
(262,676)
8,874
CASH FLOWS FROM (USED IN) CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
(2,907,508)
(2,987,253)
Proceeds from sale of capital assets (gain)
4,635
7,200
Principal paid on revenue bonds
(10,549,969)
(769,000)
Proceeds from bond issuance
10,514,000
-
Payment of refunding bond premium
280,761
-
Amortization of bond premium
(923)
-
Principal paid on loans - SRF
(37,826)
(37,180)
Interest paid on bonds and other obligations
(934,171)
(1,120,991)
Proceeds from special assessment collections
77,916
78,283
Principal paid on bond anticipation note (BAN)
(750,327)
-
Proceeds from bond anticipation note (BAN)
696,826
-
Principal paid on capital lease
(43,862)
(43,861)
FEMA
-
-
Capital contributions - USDA
628,017
-
Membership/customer/developer connection fees/assessment
103,672
126,884
NET CASH PROVIDED BY (USED IN) CAPITAL
AND RELATED FINANCING ACTIVITIES
(2,918,759)
(4,745,918)
CASH FLOWS FROM (USED IN)
INVESTING ACTIVITIES:
Interest earned on investments
33,496
41,445
Purchase of certificate of deposit
-
-
Sale of certificate of deposit
-
539,844
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES
33,496
581,289
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
(223,918)
469,004
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
16,304,908
15,835,904
CASH AND CASH EQUIVALENTS -
END OF YEAR
$ 16,080,990
$ 16,304,908
The accompanying notes are an integral part of this statement.
RECONCILIATION OF OPERATING PROFIT TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
OPERATING PROFIT (LOSS)
Adjustments to reconcile operating profit to
net cash provided by operating activities:
Depreciation (non cash)
Increase (decrease) in accrued compensated absences (non cash)
(Increase) decrease in accts. receivable, net of bad debt expense
(Increase) decrease in grant receivables
(Increase) decrease in other receivables
(Increase) decrease in inventory
(Increase) decrease in prepaid expenses
Increase (decrease) in accounts and contracts payable
Increase (decrease) in other accrued expenses
Increase (decrease) in customer deposits
TOTAL ADJUSTMENTS
NET CASH PROVIDED BY
OPERATING ACTIVITIES
Page 7 of 55
2022 2021
$ 1,169,536 $ 1,157,870
2,534,093
2,525,470
7,350
(3,439)
(6,985)
(94,862)
-
(15,850)
49,901
(49,096)
111,785
33,122
-
1,200
(941,099)
972,895
(70,392)
32,057
69,832
65,392
1,754,485 3,466,889
$ 2,924,021 $ 4,624,759
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 8 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization
Immokalee Water & Sewer District (the "District") was created by Laws of Florida,
(Section) Chapter 78-494 on July 5, 1978, under the provisions of Florida Statute,
Chapter 153.53 and 189.031 for the purpose of providing water and sewer services
to Immokalee, an unincorporated area of eastern Collier County, Florida. The
District's enabling legislation was repealed, updated, reenacted, and codified by Laws
of Florida, Chapter 98-495 on May 28, 1998. On July 1, 2005, Laws of Florida,
Chapter 2005-298 amended Laws of Florida, Chapter 98-495 by expanding the
District's boundaries. On June 10, 2015, Laws of Florida, Chapter 2015-205
amended Laws of Florida, Chapter 98-495 to provide for salaries/honorariums for
elected District Board of Commissioner members up to $250 each per month.
On June 20, 2021, Laws of Florida, Chapter 2021-263 amended Laws of Florida,
Chapter 98-495 to allow Board member terms to be 4 years or until a successor is
appointed by the Governor.
Effective June 24, 2022, Laws of Florida 2022-258 amended, codified, reenacted
and repealed the previously approved District's Laws of Florida.
The District owns, operates, maintains and regulates its water and sewer plants and
systems as an independent special district of the State of Florida. The District is
governed by a seven (7) member Board of Commissioners appointed by the
Governor of the State of Florida. The Board of Commissioners (the "Board")
administer the District, independent from any other local governing body and serve
staggered four (4) year terms.
Reporting Entity
Immokalee Water & Sewer District is financially independent of all other units of
government. It is responsible for financing its own activities and the payment of its
own debt. The Board of Commissioners (the "Board") has the responsibility to
employ management that is responsible for the day-to-day operations of the District.
The Board has absolute authority over all funds included in the entity. Immokalee
Water & Sewer District is not a component unit of any other governmental unit.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 9 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Reporting Entity, continued
The District adheres to Statement of Governmental Accounting Standards Board
(GASB) Statement No. 14, "Financial Reporting Entity", as amended by GASB
Statement Number 39, "Determining Whether Certain Organizations Are Component
Units" and GASB Statement No. 61, "The Financial Reporting Entity: Omnibus - An
Amendment of GASB Statements No. 14 and No. 34". These Statements require
the financial statements of the District (the primary government) to include its
component units, if any. A component unit is a legally separate agency for which the
primary government is financially accountable or organizations whose exclusion would
cause the financial statements to be misleading because of the nature and significance
of their relationship with the primary government. Financial accountability is
determined by the primary government's ability to appoint the voting majority of the
District's board, impose its will on the organization, the existence of a financial
benefit/burden relationship or fiscal dependency. Based on this criteria, there are no
component units included or required to be included in the District's financial
statements.
The Immokalee Water & Sewer District adheres to the requirements of
Governmental Accounting Standards Board Statement Number 33 "Accounting and
Financial Reporting for Non -Exchange Transactions." As such, capital related grant
revenue is recorded as non -operating revenue and is reflected on the Statements of
Revenues, Expenses and Changes in Net Position.
The following is a summary of the significant accounting polices used in the
preparation of these financial statements:
The District adheres to the requirements of Governmental Accounting Standards
Board Statement Number 34, "Basic Financial Statement and Management's
Discussion and Analysis for State and Local Governments" (GASB 34). The
government -wide financial statements along with the notes to the financial statements
and the RSI, as noted below comprise the basic financial statements.
The basic financial statements of the District are comprised of the following:
- Government -wide financial statements
- Notes to the financial statements
- Required supplementary information other than MD&A
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 10 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government -Wide Financial Statements
The government -wide financial statements (i.e., the Statements of Net Position, the
Statements of Revenues, Expenses and Changes in Net Position and Statements of
Cash Flows) report information on all of the activities of the District and do not
emphasize fund types. These business -type activities comprise the primary
government. Business -type activities rely on user fees and charges to support its
activities rather than taxes and intergovernmental revenues. The purpose of the
government -wide financial statements is to allow the user to be able to determine if
the District is in a better or worse financial position than the prior year. The District
uses only one fund.
Government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange -like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets, and liabilities resulting from
nonexchange transactions are recognized in accordance with the requirements of
GASB Statement Number 33 "Accounting and Financial Reporting for Nonexchange
Transactions."
Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements, rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government -wide
financial statements, rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government -wide financial statements, rather than as
expenditures.
The Statements of Revenues, Expenses and Changes in Net Position demonstrates
the degree to which the direct expenses of a given function are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include: 1) charges to customers or
applicants who purchase, use or directly benefit from goods, services, or privileges
provided by a given function and 2) grants and contributions that are restricted to
meeting the operational or capital improvements of a particular function.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 11 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government -Wide Financial Statements, continued
Operating revenues are considered to be revenues generated by services performed
and/or by fees charged such as water and sewer usage, connection, inspection fees
and flow testing.
Budgetary Information
As required, the District uses only one fund to account for its activities and, therefore,
it is considered a major fund. The District has elected to report budgetary
comparison of its major fund as required supplementary information (RSI).
Fund Accounting
The District's financial practices are based upon fund accounting concepts. A fund is
defined as a fiscal and accounting entity with a self -balancing set of accounts,
recording cash and other financial resources, together with all related liabilities and net
assets (fund equity balances) and changes therein.
The accompanying financial statements reflect Business - Type Activities and are
classified as a single Proprietary Fund Type - Enterprise Fund. This fund accounts
for the cost of services provided by the District as well as the revenues earned by the
District.
Business - Type Activities - Proprietary Fund Type
Enterprise Fund - An enterprise fund is used to account for operations (1) that are
financed and operated in a manner similar to private business enterprises where the
intent of the governing body is that the costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or (2) where the governing body has
decided that periodic determination of revenues earned, expenses incurred, and/or
net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 12 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Measurement Focus
Proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, assets and liabilities associated with the
operation of these funds are included on the statements of net position. Proprietary
fund -type operating statements present increases (i.e. revenues) and decreases (i.e.
expenses) in total net position. Operating revenues and expenses result from
providing water distribution as well as wastewater collection and treatment to
members within the District's boundaries. Generally, other revenues and expenses
are treated as non -operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the
District's policy to use restricted resources first, then unrestricted resources as they
are needed.
Basis of Accounting
The proprietary fund type is presented on the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recorded in the period earned and expenses
are recorded in the period the liability is incurred.
Budtetary Process
The District operates under a fixed budget for control purposes. The budget and
amendments, if any, are approved by the Board of Commissioners. The budget is
prepared on a Non-GAAP accrual basis, whereby items such as capital expenditures
and debt principal payments are budgeted as expenses.
The annual budget serves as the legal authorization for expenditures. Expenditures
cannot legally exceed the total amount budgeted. All budget amendments, which
change the legally adopted total appropriation, are approved by the Board.
The District follows these procedures in establishing budgetary data.
1. During the summer of each year, management submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
October 1. The operating budget includes proposed expenditures and the means
of financing them.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 13 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Budtetary Process, continued
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these financial statements, are as originally adopted
or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America, except as reflected in the
supplementary information and as noted above.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
The Board of Commissioners did amend the budget during the fiscal year ended
September 30, 2022 to increase total budgeted net revenue by $6,470,647 and an
increase in budgeted expenses (including net non -operating revenue and expense) by
$6,470,647.
Cash
For the purpose of the Statements of Cash Flows, the District considers all highly
liquid investments, including both unrestricted and restricted, with a maturity of three
months or less, when purchased, to be a cash equivalent, in accordance with District
policy.
Accounts Receivable/Allowance for Doubtful Accounts
Receivables include user fees for water and wastewater services provided as part of
the operations by the District. The accounts receivable are recorded net of the
estimated allowance for doubtful accounts. The District operates using an allowance
and collection policy that ultimately provides for discontinuance of water service due
to nonpayment by the user. The policy also provides for application of the respective
user's security deposit upon certain criteria. Additionally, the policy requires a user
landlord to satisfy any outstanding user fees (tenant) prior to allowing services to a
future tenant for that landlord.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 14 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Inventory
Inventory consists of utility system parts and hardware supplies at year end. The
inventories are valued at cost, which approximates net realizable value. The method
used to determine the value of the inventory is the FIFO (first in -first out) method.
Capital Assets and Depreciation
Capital assets acquired by proprietary funds are reported in those funds at historical
cost or estimated historical cost if actual historical cost is not available.
Donated assets are reported at estimated fair market value at the time received.
Certain infrastructure -type fixed assets consisting of certain improvements such as
roads, curbs, gutters and lighting systems have not been capitalized, as the District
does not generally incur such expenditures. However, the systems' distribution and
collection lines and pumps are capitalized and depreciated as part of the overall
system. Assets acquired with a cost or fair value of $5,000 or more and a useful life
of 1 year or more are capitalized. Maintenance, repairs and minor renovations are
not capitalized. The acquisition of land and construction projects utilizing resources
received from Federal and State agencies are capitalized when the related
expenditure is incurred.
The capital assets are depreciated using the straight-line method of depreciation over
the following estimated useful lives:
Asset
Years
Buildings/Plant and Plant Equipment
10-40
Capital Improvements, Distribution Lines
5-40
Furniture, Fixtures and Equipment
3-20
Vehicles
3-7
Restricted Assets
These monies are restricted by the applicable debt covenants and grant agreements or
as customer deposits.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 15 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Vacation Leave
Accumulated unpaid vacation pay is accrued when incurred in the proprietary fund.
The method of accrual is in accordance with Statement of Governmental Accounting
Standards Board Number 16, "Accounting for Compensated Absences" (GASB
16). This Standard provides for the measurement of accrued vacation leave using the
pay or salary rates in effect at the balance sheet date. It also requires additional
amounts to be accrued for certain salary related payments associated with the
payment of compensated absences such as FICA and retirement benefits only.
Accrued unused vacation is accrued and paid at termination. Accrued unused sick
time is not paid at termination.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because at
present it is not considered necessary to assure budgetary control or to facilitate
effective cash planning and control.
Membership (Connection) Fees
Water (connection) service installation fees are dedicated for the system expansion
and are treated as contributed capital but recognized as revenue when received (due
to the District) by the District.
Income Taxes
The District, as a governmental unit, is exempt from income taxes under current
provisions of the Internal Revenue Code and Florida State Law.
Fund Equity
Grants, entitlements or shared revenues which are externally restricted for capital
acquisition or construction are treated as contributed capital but recorded as revenue
when due to the District. Contributed or donated fixed assets are also treated as
contributed capital but recorded as revenue when due the District. Reserved retained
earnings represent those portions of fund equity legally restricted by debt covenants
for current and future debt service.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 16 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Use of Estimates
The preparation of basic financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Reclassifications
Certain amounts in the financial statements have been reclassified to conform with the
current year presentation. These reclassifications had no effect on the results of
operations or net assets.
Subsequent Events
Subsequent events have been evaluated through April 18, 2023, which is the date
the basic financial statements were available to be issued.
Application of FASB Pronouncements to Proprietary Funds
In accordance with Governmental Accounting Standards Board (GASB) Statement
No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting", the District has
elected not to apply those FASB Statements and Interpretations issued after
November 30, 1989. Only GASB pronouncements issued after this date will be
adopted by the District.
Accounting Pronouncement GASB Statement No. 42
The District adheres to Government Accounting Standards Board Statement No. 42,
"Accounting and Financial Reporting for Impairment of Capital Assets and for
Insurance Recoveries" (GASB Statement No. 42). GASB Statement No. 42
establishes accounting and financial reporting standards for impairment of capital
assets.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
Page 17 of 55
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Accounting Pronouncement GASB Statement No. 42, continued
A capital asset is considered impaired when its service utility has declined significantly
and unexpectedly. Governments are required to evaluate prominent events or
changes in circumstances affecting capital assets to determine whether impairment of
a capital asset has occurred. Such events or changes in circumstances that may be
indicative of impairment include evidence of physical damage, enactment or approval
of laws or regulations or other changes in environmental factors, technological
changes or evidence of obsolescence, changes in the manner or duration of a capital
asset, and construction stoppage. A capital asset generally should be considered
impaired if both (a) the decline in service utility of the capital asset is large in
magnitude and (b) the event or change in circumstance is outside the normal life cycle
of the capital asset.
The District incurred no capital asset impairment activity for the years ended
September 30, 2022 and 2021.
New Accounting Standard
During fiscal year ended September 30, 2022, the District adopted GASB Statement
87 - Leases. This Statement required the recognition of certain lease assets and
liabilities in the Statements of Net Position for leases that previously were classified as
operating leases. The District determined their current operating lease agreements to
be immaterial, therefore there was no effect from GASB Statement 87 at September
30, 2022.
NOTE B - CASH AND INVESTMENTS
At September 30, 2022 and 2021, cash and cash equivalents (including both
restricted and unrestricted cash and cash equivalents) were $16,080,990 and
$16,304,908 respectively, including unrestricted cash on hand of $3,400 and
$3,400, respectively.
Deposits
The District's deposit policy allows deposits to be held in demand deposits, savings
accounts, certificates of deposit, direct obligations of the U.S. Treasury, Local
Government Surplus Trust Funds, direct obligations of Federal agencies and
IMMOKALEE WATER & SEWER DISTRICT Page 18 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE B - CASH AND INVESTMENTS, CONTINUED
Deposits, continued
instrumentalities and money market accounts. All cash deposits are held in qualified
public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for
Public Deposits Act."
September 30, 2022
Unrestricted
Depository accounts
Money market
Restricted
Depository accounts
Money market
September 30, 2021
Unrestricted
Depository accounts
Money market
Restricted
Depository accounts
Money market
Insured/ Bank Carrying
Collateralized Balance Amount
$ 2,910,635 $ 2,910,635 $ 2,839,567
9,563,386 9,563,386 9,563,386
12,474,021 12,474,021 12,402,953
1,566,498 1,566,498 1,566,498
2,216,332 2,216,332 2,108,139
3,782,830 3,782,830 3,674,637
$ 16,256,851 $ 16,256,851 $ 16,077,590
$ 2,135,484 $ 2,135,484 $ 2,115,320
9,533,665 9,533,665 9,533,665
11,669,149 11,669,149 11,648,985
1,495,355 1,495,355 1,495,355
3,157,168 3,157,168 3,157,168
4,652,523 4,652,523 4,652,523
$ 16,321,672 $ 16,321,672 $ 16,301,508
Unrestricted and Restricted Deposits
The District's deposits were categorized to give an indication of the level of risk
assumed by the District at year-end. All deposits were fully insured by Federa:
Depository Insurance or collateral pursuant to the Public Depository Act (Florida
Statute 280). As such, the District resolved to abide by Florida Statute 218.415(17).
IMMOKALEE WATER & SEWER DISTRICT Page 19 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE B - CASH AND INVESTMENTS, CONTINUED
Restricted Deposits
Restricted deposits are required by the District's outstanding debt agreements as well
as grant and other agreements. Restricted deposits also include customer deposits.
Restricted deposits (carrying amounts) consist of the following at September 30:
Construction account
Bond sinking fund reserve
Department of Environmental Protection -
Deep Well Injection Reserve
Customer deposits
Loan debt service
Special assessment - ArrowHead
Special assessment - SR 29
Investments
2022 2021
66,698 $ 50,805
1,141,057 2,238,746
240,965
240,216
1,563,998
1,492,855
66,475
114,836
519,213
464,012
76,231
51,053
$ 3,674,637 $
4,652,523
Florida Statutes and the District's investment policy authorize investments in
certificates of deposit (CD's). Certificates of deposit whose values exceed the
amount of the Federal Depository Insurance are collateralized pursuant to the Public
Depository Security Act of the State of Florida. The District had $637,219 and
$614,037 (bank and book balance) invested in certificates of deposit at September
30, 2022 and 2021, respectively. The CDs carried interest rates of 2.96% al
September 30, 2022. The CDs mature on June 13, 2024.
NOTE C - ACCOUNTS RECEIVABLE, NET
Accounts receivable, net, consist of the following at September 30:
2022 2021
Customer receivables (water/sewer) $ 812,634 $ 805,649
Less allowance for doubtful accounts (81,244) (69,743)
Net receivables $ 731,390 $ 735,906
Bad debt expense was $11,501 and $0 for the years ended September 30, 2022
and 2021, respectively.
IMMOKALEE WATER & SEWER DISTRICT Page 20 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE D - GRANT AND ASSESSMENT RECEIVABLES
Grant and assessment receivables consisted of the following at September 30:
2022 2021
Grant receivable $ 156,083 $ 15,850
Special Assessments 980,874 1,058,790
$ 1,136,957 $ 1,074,640
The District levied a special assessment of $1,060,900 on system users benefiting
from the system improvements (ArrowHead) funded by the $4,932,000 Series 2013
Revenue Bonds during the year ended September 30, 2014. The assessment
collections are restricted to principal reduction of the Series 2013 Revenue Bonds.
The assessment was initially levied through the Collier County Tax Collector on
November 1, 2013. The assessment is a one time assessment payable in full or over
20 years by the affected system users. The special assessment had the following
activity for the years ended September 30:
Balance, beginning of year
Assessment levied
Collections
Balance, end of year
2022 2021
$ 636,953 $ 690,330
(53,464) (53,377)
$ 583,489 $ 636,953
The District levied a special assessment of $496,731 on system users benefiting from
system improvements on State Road 29 during the year ended September 30, 2019.
The assessment was initially levied through the Collier County Tax Collector on
November 1, 2018. The assessment is a one time assessment payable in full or over
20 years by the affected system users. The special assessment had the following
activity for the years ended September 30:
Balance, beginning of year
Assessment levied
Collections
2022 2021
$ 421,837 $ 446,743
(24,452) (24,906)
Balance, end of year $ 397,385 $ 421,837
IMMOKALEE WATER & SEWER DISTRICT Page 21 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE E - CAPITAL ASSET ACTIVITY
The following is a summary of changes in capital asset activity for the year ended
September 30, 2022:
Balance Balance
October 1 Adjustments/ September 30
2021 Additions Retirements Reclassifications 2022
Capital Assets Not
Being Depreciated:
Land $ 2,645,941 $ - $ $ $ 2,645,941
Construction in Progress 1,820,071 2,093,981 - (320,369) 3,593,683
Total Capital Assets Not
Being Depreciated 4,466,012 2,093,981 - (320,369) 6,239,624
Capital Assets
Being Depreciated:
Buildings & Improvements
1,670,776
6,995
-
- 1,677,771
Water and Wastewater
Plant and Systems
88,725,161
799,328
(1,331)
320,369 89,843,527
Machinery & Equipment
3,587,242
66,309
(28,693)
- 3,624,858
Total Capital Assets
Being Depreciated
93,983,179
872,632
(30,024)
320,369 95,146,156
Less Accumulated
Depreciation:
Buildings & Improvements
(951,295)
(43,305)
-
- (994,600)
Plant and Systems
(37,979,377)
(2,315,117)
27,389
- (40,267,105)
Machinery & Equipment
(1,679,218)
(175,671)
1,331
- (1,853,558)
Total Accumulated Depreciation
(40,609,890)
(2,534,093)
28,720
- (43,115,263)
Capital Assets, Net $ 57,839,301 $ 432,520 $ (1,304) $ - 58,270,517
Related debt (31,009,583)
Net Investment in Capital Assets $ 27,260,934
IMMOKALEE WATER & SEWER DISTRICT Page 22 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE E - CAPITAL ASSET ACTIVITY, CONTINUED
The depreciation expense for the years ended September 30, 2022 and 2021 was
$2,534,093 and $2,525,470 , respectively. During the years ended September 30,
2022 and 2021, the District continued construction on its system -wide
improvements.
During the year ended September 30, 2018, the District early implemented GASB
Statement No. 89, "Accounting for Interest Cost Incurred Before the End of a
Construction Period". The implementation of the pronouncement requires the interest
cost incurred before the end of a construction period be recognized as an expense in
the period in which the cost is incurred for financial statement prepared using the
economic resources measurement focus. As a result, no interest costs were
capitalized on the project for fiscal years ended September 30, 2022 and 2021.
During the year ended September 30, 2021, the District, however, settled a dispute
related to system improvements. As such, the District agreed to settle with the
vendor plus $155,297 in interest. The District expensed this cost.
NOTE F - RETIREMENT PLANS
Plan Description and Provisions
Section 401(a) Plan
The District historically offered all its employees the opportunity to participate in an
individual government employer -sponsored defined contribution 414(h) Money
Purchase Pick -Up Retirement Plan and Trust (the "Plan"). Effective January 1, 2009,
the District restated its retirement plan. As such, the restated plan qualifies as a
401(a) Money Purchase defined contribution plan. The Plan is administered by a
third party administrator. The employer funds substantially all the administrative costs
of the Plan.
The Plan allows all employees to participate after three (3) months creditable
employment. Employees who elect to participate must contribute three (3%) percent
of their gross wages, excluding overtime compensation, up to $3,000. If the
employee desires to defer more than $3,000 they can defer those amounts into the
available IRC Section 457 Plan. The employer is required to contribute six (6%)
percent of the respective participating employees' gross wages, excluding overtime
compensation. Employer contributions into the 401(a) Plan are only required for
those participating employees who contribute three (3%) of their gross wages, as
defined. During the years ended September 30, 2022, 2021, and 2020, the District
contributed 100% of its required contributions.
IMMOKALEE WATER & SEWER DISTRICT Page 23 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE F - RETIREMENT PLANS, CONTINUED
Plan Description and Provisions, continued
Section 401(a) Plan
The District's gross contributions (employer portion) to the Plan for the years ended
September 30, 2022, 2021 and 2020 were $156,771, $148,649 and $157,046
respectively. Employee contributions to the Plan were $85,337, $82,610 and
$78,363, respectively for the years ended September 30, 2022, 2021, and 2020,
respectively. There were no forfeitures used to reduce employer contributions.
Benefits available are limited to the value of the respective employee's individual
account. Individuals direct the investment of their individual account. Benefits vest at
a rate of twenty (20%) percent per year of creditable service and vest in full after five
years of creditable service. A creditable year of service is defined as a year in which
an eligible participant completes 1,000 hours of service. Employees immediately vest
in their contributions. Normal retirement shall be considered to be attainment of age
55 and completion of five (5) creditable years of service. Employees who fail to
complete five (5) years creditable service vest in their respective accounts at twenty
(20%) percent per completed year of creditable service. The Plan requires
retirement at April 1 following the date the participant reaches age 70 1/2. The Plan
provides that forfeitures of employer contributions by non -vested terminated
employees are to be used to offset future employer contributions. Therefore,
employer contributions made to employee accounts who fail to complete the
respective year revert back to the employer. Benefits available to the employee
from the Plan are those generated from the respective employees account. The
employees account may lose principal. The District has no liability for losses, if
any, incurred by the plan. Loans to participants are permitted from the participant's
specific account. Participants should refer to the complete plan document for
specific detail of the Plan.
Section 457 Plan
Effective November 1, 2012, the District approved a resolution to establish a
Deferred Compensation Plan to be made available to all eligible District employees
pursuant to Section 457 of the Internal Revenue Code (IRC). The Plan is
administered by a third party administrator. The employer funds substantially all
administrative costs of the Plan. All contributions made to the Plan are voluntary
deductions from employees' wages, with no contributions to the Plan made by the
District. Employees are eligible to participate after 3 months employment and
attainment of age 18. Deferral amounts are limited per IRS Code Section
457(e)(15). For the year ended September 30, 2022 the deferral limit to the Plan
was $20,500. Employees are immediately vested in their salary deferral amounts.
IMMOKALEE WATER & SEWER DISTRICT Page 24 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE G - REVENUE BONDS PAYABLE
The following is a summary of the District's revenue bonds payable for the years
ended September 30:
Amount
Balances - September 30, 2020
$ 31,080,969
Principal retired
(769,000)
Bonds issued
-
Balances - September 30, 2021
30,311,969
Principal retired
(10,549,969)
Bonds issued
10,514,000
Balances - September 30, 2022
30,276,000
Issuance premium - unamortized
279,838
$ 30,555,838
Revenue Bonds payable is comprised of the following at September 30:
2022 2021
$635,000 Series 1985, Water and Sewer Revenue
Bonds, issued May 1987, through USDA Rural
Development. Principal is payable annually beginning
September 1, 1989 through September 1, 2026; interest
payable annually at the rate of 5%; collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. $ - $ 137,969
$3,750,000 Series 1989, Water and Sewer Revenue
Bonds, issued October 1991, through USDA Rural
Development. Principal is payable annually beginning
September 1, 1994 through September 1, 2031; interest
payable annually at the rate of 5%; collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. - 1,716,000
$250,000 Series 1990, Water and Sewer Revenue
Bonds, issued October 1991, through USDA Rural
Development. Principal is payable annually beginning
September 1, 1994 through September 1, 2031; interest
payable annually at the rate of 5%; collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. - 114,000
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
Page 25 of 55
2022 2021
$4,313,200 Series 1996, Water and Sewer Revenue
Bonds, issued August 1996, through USDA Rural
Development. Principal is payable annually beginning
September 1, 1998 through September 1, 2035; interest
payable annually at the rate of 5.125%; collateralized
by the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. - 2,551,000
$802,000 Series 1998, Water and Sewer Revenue
Bonds, issued October 1998, through USDA Rural
Development. Principal is payable annually beginning
September 1, 2001 through September 1, 2038; interest
payable annually at the rate of 4.5%; collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. - 521,000
$2,252,000 Series 2001, Water and Sewer Refunding
Bonds, issued December 2001, through USDA Rural
Development. Principal is payable annually beginning
September 1, 2004 through September 1, 2041; interest
payable annually at the rate of 4.5%; collateralized by
the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. - 1,623,000
$3,366,200 Series 2008, Water and Sewer Revenue
Bonds, issued March 28, 2008 through USDA Rural
Development. Principal is payable annually beginning
September 1, 2008 through September 1, 2047; interest
payable annually at the rate of 4.375%; collateralized
by the gross operating revenues of the system and
assessments levied on the lands benefited by the
system. - 2,811,000
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
$4,932,000 Series 2013, Water and Sewer Revenue
Bonds, issued March 1, 2013, through USDA Rural
Development. Principal and interest are payable
annually beginning September 1, 2016 through
September 1, 2052; interest payable annually at the rate
of 2.5%; collateralized by the gross operating revenues
of the system and a special assessment levied on the
lands benefited by the system.
$17,134,000 Series 2018 A & B, Water and Sewer
Revenue Bonds, issued May 3, 2018, through USDA
Rural Development. Interest only due September 1,
2018, then principal and interest are payable annually
beginning September 1, 2019 through September 1,
2057; interest payable annually at the rate of 2.25%;
collateralized by the gross operating revenues of the
system and a special assessments levied on the lands
benefited by the system.
$9,570,000 Refunding Bonds Series 2022, issued May
12, 2022 through US Bank to refund the Series 1989,
1996, 1998, 2001 and 2008 USDA Rural Development
Bonds. Principal is payable annually beginning
September 1, 2022 and semi-annual interest payable
each March 1 and September 1, beginning September
1, 2022 through September 1, 2042; interest payable at
the rate of 4%; collateralized by the gross operating
revenues of the system.
$944,000 Series 2022, Water and Sewer Revenue
Bonds, issued June 25, 2022, through USDA Rural
Development. Interest only due September 1, 2022,
then principal and interest are payable annually
beginning September 1, 2023 through September 1,
2042; interest payable annually at the rate of 2.00%;
collateralized by the gross operating revenues of the
system. These bonds were issued at a premium of
$280,761.
Less: Current portion (due in one year)
Long-term portion
Plus: Unamortized premium on refunding
Balance, less current portion
Page 26 of 55
2022 2021
4,498,000 4,560,000
15,979,000 16,278,000
8,855,000
944,000
30,276,000 30,311,969
(849,000) (798,000)
29,427,000
279,838
$ 29,706,838
29,513,969
$ 29,513,969
IMMOKALEE WATER & SEWER DISTRICT Page 27 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
Bond Resolutions
The bond resolutions established certain accounts and determined the order in
which certain revenues are to be deposited into those accounts. In addition, there
are various other covenants established by the respective bond official statements
and District resolutions, including such items as debt service coverage, reporting
requirements, and maintenance of facilities. The bond issues require certain sinking
fund balances be maintained. At September 30, 2022, the District had not fully
funded the sinking fund cash account. The District, however, held sufficient cash at
September 30, 2022 to fully fund the sinking fund. Once informed of the
requirement to fund the sinking fund for future principal and interest, the District did
fully fund the account. Management believes that it has complied, in all material
respects, with these covenants. All Reserve balances at September 30,
2022 and 2021, are reflected as restricted deposits within these financial
statements.
A summary of revenue bond debt service requirements to maturity is as follows
September 30:
Years Ending
September 30
Principal
Interest
Total
2023
$ 849,000
$ 826,178
$ 1,675,178
2024
889,147
817,569
1,706,716
2025
919,473
788,773
1,708,246
2026
948,805
758,938
1,707,743
2027
984,144
728,089
1,712,233
2028 - 2032
5,213,054
3,136,010
8,349,064
2033 - 2037
5,695,622
2,238,624
7,934,246
2038 - 2042
4,238,195
1,551,014
5,789,209
2043 - 2047
3,330,880
1,049,757
4,380,637
2048 - 2052
3,781,792
647,065
4,428,857
2053 - 2057
3,260,060
239,018
3,499,078
2058 - 2062
165,828
10,175
176,003
30,276,000
12,791,210
43,067,210
Premium
279,838
-
279,838
$ 30,555,838
$ 12,791,210
$ 43,347,048
Revenue bond debt interest expense was $904,824 and $957,219 for the years
ended September 30, 2022 and 2021, respectively. No revenue bond debt interest
expense was capitalized in either year.
IMMOKALEE WATER & SEWER DISTRICT Page 28 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
Debt Refunding
On May 12, 2022, the District issued Refunding Revenue Bonds, Series 2022,
through a commercial bank loan/bond in the amount of $9,570,000 at a fixed
interest rate of 4% requiring principal payments annually through September 1,
2042. Proceeds of the bond were used to refund the following outstanding bond
agreements:
Principal
Balance at
Refunding Date Interest Rate Maturity Date
Bond Series 1989 $ 1,716,000 5.00% September 1, 2031
Bond Series 1996 2,551,000 5.125% September 1, 2035
Bond Series 1998 521,000 4.50% September 1, 2038
Bond Series 2001 1,623,000 4.50% September 1, 2041
Bond Series 2008 2,811,000 4.375% September 1, 2047
$ 9,222,000
The refunding resulted in a reduction of future debt service payments by
approximately $972,718 and obtained an economic gain of $764,142.
The $9,570,000 Series 2022 refunding bonds were issued at a premium of
$280,761. During the year ended September 30, 2022, the premium of $280,761
was amortized in the amount of $923 and included interest expense at
September 30, 2022. The net premium was $279,838.
IMMOKALEE WATER & SEWER DISTRICT Page 29 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE H - LOANS PAYABLE - SRF
The following is a summary of the District's loans payable activity for the year
ended September 30:
DEP. SRF
DWI 10120
Balance -September 30, 2020
$ 258,684
Principal retired
(20,771)
Balance -September 30, 2021
237,913
Principal retired
(21,014)
Balance -September 30, 2022
$ 216,899
DEP.SRF
DW110121
Total
$ 204,275
$ 462,959
(16,409)
(37,180)
187,866
425,779
(16,812)
(37,826)
$ 171,054
$ 387,953
The loans payable - SRF activity for the year ended September 30 is as follows:
$419,681 loan payable representing 15% of a grant/loan payable to Florida
Department of Environmental Protection. The maximum amount of the loan is
$2,735,112, in which the FDEP has forgiven $2,324,845 of the note. The loan
also required the District to capitalize interest of $9,414 during the year
ended September 30, 2011. Interest accrues at 2.71%. Principal and interest is
payable in forty (40) semi-annual payments of $13,660 in May and November
beginning November 15, 2011. Final payment due May 2031. The loan is
collateralized by the gross operating revenues of the system and
assessments levied on the lands benefited by the system.
$335,504 loan payable to Florida Department of Environmental Protection.
The loan requires forty (40) semi-annual payments of $10,637 in November
and May beginning November 15, 2011. The loan required the District to
capitalize interest of $7,346 during the year ended September 30, 2011. Final
payment date May 2031. Interest accrues at 2.43%. The loan is collateralized
by the gross operating revenues of the system and assessments levied on
the lands benefited by the system.
Total loans payable
2022 2021
$ 216,899 $ 237,913
171,054 187,866
387,953 425,779
Less current portion: (38,810) (37,825)
$ 349,143 $ 387,954
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE H - LOANS PAYABLE - SRF, CONTINUED
Years Ending
September 30
Principal
Interest
Total
2023
$ 38,810
$ 9,785 $
48,595
2024
39,820
8,775
48,595
2025
40,856
7,739
48,595
2026
41,919
6,676
48,595
2027
43,011
5,584
48,595
2028 - 2031
183,537
10,844
194,381
$ 387,953
$ 49,403 $
437,356
Page 30 of 55
Loans payable - SRF related interest expense was $10,770 and $11,038 for the
years ended September 30, 2022 and 2021, respectively. No loan interest costs
were capitalized in either year.
NOTE I - CAPITAL LEASE
On October 31, 2018, the District entered into a sixty (60) month, 0% interest
capital lease agreement, for the lease of eight (8) vehicles, in the amount of
$219,307. Monthly payments are $3,655 plus monthly maintenance fees.
Payments began in April, 2019 with final payment due in March 2024. The lease
agreement is collateralized by the respective eight (8) vehicles.
The following is a summary of the District's capital lease payable for the years
ended September 30:
Amount
Balances - September 30, 2020
$ 153,515
Proceeds
-
Principal payments
(43,861)
Balances - September 30, 2021
109,654
Proceeds
-
Principal payments
(43,862)
Balances - September 30, 2022
$ 65,792
The cost of capital assets under lease was $219,307 at September 30, 2022. The
accumulated depreciation was $153,514 and the current year depreciation expense
was $43,861 on those capital assets.
IMMOKALEE WATER & SEWER DISTRICT Page 31 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE I - CAPITAL LEASE, CONTINUED
A summary of capital lease debt service requirements to maturity is as follows at
September 30:
Years Ending
September 30 Principal
2023 $ 43,861
Interest Total
2024 21,931 -
$ 65,792 $ -
43,861
21,931
$ 65,792
Interest expense related to the capital lease was $0 and $0 for the years ended
September 30, 2022 and 2021, respectively.
NOTE J - LINE OF CREDIT
On October 15, 2018, the District renewed an agreement with a financial institution
to establish an uncollateralized $1 million revolving Line of Credit (LOC) to be used
for emergency situations. The LOC is available, although the District had not
borrowed any funds from the LOC for the years ended September 30, 2022 or
2021. The LOC required interest paid quarterly and principal at maturity. Interest
accrues at Prime Rate plus .50% with a floor rate of 3.75%. The LOC was due in full
on October 15, 2022 and was not renewed. Interest rate at September 30, 2022
was 6.75%.
NOTE K - BOND ANTICIPATION NOTE
On May 4, 2020 the District entered into a Bond Anticipation Note (BAN) with a
financial institution to provide interim construction financing for improvements to
water facilities, clarifier project, in the amount of $944,000. Interest payable at
2.15% is due every six months. The BAN requires accrued interest and principal
payable every six (6) months and upon maturity. The note is collateralized by a
commitment from the USDA Rural Development Program. At September 30, 2022
and 2021, the BAN payable balance was $0 and $53,501, respectively.
Interest expense for the years ended September 30, 2022 and 2021 was $7,539 and
$1,354 and no loan interest costs were capitalized. Upon completion of the related
construction project, the BAN was replaced by permanent financing from USDA
by the $944,000 Series 2022, Water and Sewer Revenue Bonds.
IMMOKALEE WATER & SEWER DISTRICT Page 32 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE L - ACCRUED COMPENSATED ABSENCES
Employees of the District are entitled to paid vacation based on length of service and
job classification at termination. Unused accrued sick time is not paid at termination.
Accrued compensated absences had the following activity for the year ended
September 30:
Amount
Accrued compensated absences,
September 30, 2020
$ 169,984
Net decrease
(3,439)
Accrued compensated absences,
September 30, 2021
166,545
Net increase
7,350
Accrued compensated absences,
September 30, 2022
$ 173,895
NOTE M - CONTINGENCIES
Litigation
The District, from time to time, is involved as a defendant or a plaintiff in certain
litigation and claims arising in the ordinary course of operations. As such, the District
maintains third party insurance coverages. In the opinion of legal counsel, the range
of potential recoveries or liabilities will not materially affect the financial position of the
District. The District intends to vigorously defend all claims unless first settled.
Potential losses, if any, may be recoverable through insurance coverages.
Federal Grants
Grant monies received by the District are for specific purposes and are subject to
review by the grantor agencies. Such audits may result in requests for reimbursement
due to disallowed expenditures. Based upon prior experience, the District does not
believe that such disallowances, if any, would have a material effect on the financial
position of the District.
The operations of the District are dependent upon the condition of the District's
facilities. These facilities are currently being rehabilitated and improved substantially
through the receipt of federal funding. Loss or reduction of such funding would have
a material effect on the operations of the District.
IMMOKALEE WATER & SEWER DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE N - NET POSITION (NET ASSETS)
Restricted net assets consist of the following at September 30:
Restricted assets
Less: liabilities payable from restricted cash
2022
2021
Page 33 of 55
$ 4,811,594 $ 5,727,163
(2,648,407) (2,479,446)
$ 2,163,187 $ 3,247,717
Unrestricted net assets consist of the following at September 30:
Designated for emergencies
Designated for operations
Designated for vehicle replacement
Designated for capital equipment
Designated for future capital projects
Designated for maint. reserve - wastewater
Designated for maint. reserve - water
Total Designated
Undesignated
Total unrestricted net assets
NOTE O - RISK MANAGEMENT
2022 2021
$ 941,631 $
941,631
3,982,093
3,813,925
607,483
607,483
1,000,000
1,000,000
3,523,000
-
1,000,000
3,569,382
500,000
812,240
11,554,207
10,744,661
2,236,708
1,379,180
$ 13,790,915 $
12,123,841
The District is exposed to various risks of loss related to torts; theft of, damage to
and destruction of assets; errors and omissions; injuries to employees, and natural
disasters.
Insurance programs for general/professional liability, automobile, and property are
through commercial insurance. The District retains the risk of loss, on insured claims,
up to a deductible amount (ranging from 0% to 5% of total insured value depending
on the type of loss) with the risk of loss in excess of this amount transferred to the
insurance carrier. Limits of general liability are $1,000,000 per occurrence. The
District is third party insured for employee health as well as workers' compensation.
IMMOKALEE WATER & SEWER DISTRICT Page 34 of 55
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2022 and 2021
NOTE P - COMMITMENT
On July 23, 2019, the USDA obligated funds to the District for a $2,760,236
Clarifier Rehabilitation Project to be funded with a $944,000 (loan #28) Series 2022
Water and Sewer Revenue bonds and a $765,000 (grant #29) grant. The remaining
funds will be provided by the District. The project began in June 2020 and is
estimated to be completed in May 2023. As of September 30, 2022, $2,746,647
was expended for this project.
In May, 2022, the District began a Clay Sewer Pipe Restoration Project to be
funded with District reserves. The project is estimated to be completed in June
2023 and has an estimated total budget of $1,655,200. As of September 30, 2022,
$706,673 was expended for this project.
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
IMMOKALEE WATER & SEWER DISTRICT Page 35 of 55
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS
Year ended September 30, 2022
Original
Final
Budget
Budget
Actual
Variance
OPERATING REVENUES
Water service
$ 4,376,541
$ 4,108,157
$ 4,108,228
$ 71
Wastewater service
6,212,743
5,983,043
5,983,159
116
Meter service charge
866,267
863,741
863,741
-
Late fees
84,980
86,025
86,025
-
Reconnect and transfer fees
108,163
106,230
106,230
-
Miscellaneous charges, fees and other income
178,383
278,564
289,067
10,503
Cross connection control fee
377,351
374,527
374,532
5
TOTAL OPERATING REVENUES
12,204,428
11,800,287
11,810,982
10,695
OPERATING EXPENSES
WATER TREATMENT
Salaries and wages
299,094
274,569
274,569
-
Overtime
9,827
11,005
11,005
-
FICA
23,632
21,253
21,253
-
Unemployment taxes
1,514
83
83
-
Employer pension contribution
18,535
16,345
16,345
-
Health/life insurance
63,814
72,581
72,581
-
Workers' compensation
3,528
4,547
4,547
-
Travel and training
8,000
9,876
9,876
-
Telephone and fax
2,850
6,075
6,075
-
Electric
172,000
223,623
223,623
-
General liability insurance
10,135
10,135
10,135
-
Comprehensive auto insurance
2,120
2,120
2,120
-
Other insurance
37,791
38,736
38,736
-
Repairs and maintenance
168,752
144,324
144,324
-
Other contract services
24,000
29,866
29,866
-
Vehicle fuel
11,633
15,317
15,317
-
Vehicle maintenance
12,000
3,080
3,080
-
Vehicle Lease
-
22
22
-
Office expense
-
587
587
-
Licenses and permits
5,790
4,075
4,075
-
Chemicals
99,772
98,327
98,327
-
Other materials
109,522
96,929
96,929
-
Tools
2,285
1,675
1,675
-
Safety and security
-
5,473
5,473
-
Laboratory fees
28,400
24,323
24,323
-
Uniforms/clothing allowance
1,200
1,206
1,206
-
Memberships/periodicals/books
1,150
550
550
-
SUB -TOTAL WATER TREATMENT
1,117,344
1,116,702
1,116,702
-
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 36 of 55
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2022
Original Final
Budget Budget Actual Variance
WATER DISTRIBUTION
Salaries and wages
600,376
Overtime
47,246
FICA
49,543
Unemployment taxes
3,173
Employer pension contribution
38,857
Health/life insurance
194,453
Workers' compensation
9,702
Engineering services
-
Travel and training
20,000
Telephone and fax
2,850
Electric
2,400
General liability insurance
11,481
Comprehensive auto insurance
6,889
Other insurance
1,857
Repairs and maintenance
126,823
Water meter & registers replacement
-
Other contract services
17,862
Vehicle fuel
25,630
Vehicle maintenance
19,137
Vehicle Lease
8,019
Licenses and permits
200
Office expense
-
Other materials
220,585
Tools
12,664
Safety and security
-
Uniforms/clothing allowance
3,000
Memberships/periodicals/books
1,175
SUB -TOTAL WATER DISTRIBUTION 1,423,922
SUB -TOTAL WATER PLANTS/DISTRIBUTION 2,541,266
580,203
580,203 -
30,250
30,250 -
45,449
45,449 -
473
473 -
33,804
33,804 -
242,546
242,546 -
10,102
10,102 -
5,876
5,876 -
23,452
23,452 -
4,367
4,367 -
11,481
11,481 -
6,889
6,889 -
1,612
1,612 -
70,015
70,015 -
236,713
236,713 -
16,220
16,220 -
32,561
32,561 -
14,470
14,470 -
284
284 -
20
20 -
104,922
104,664 258
12,154
12,154 -
8,010
8,010 -
2,579
2,579 -
357
357 -
1,494,809
1,494,551 258
2,611,511
2,611,253 258
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2022
Original Final
Budget Budget
WASTEWATER TREATMENT
Salaries and wages
577,859
Overtime
47,246
FICA
47,820
Unemployment taxes
3,063
Employer pension contribution
37,506
Health/life insurance
141,719
Workers' compensation
7,409
Other professional services
-
Engineering services
-
Travel and training
16,000
Telephone and fax
4,000
Electric
230,000
Section 8 electric
5,000
General liability insurance
20,383
Comprehensive auto insurance
3,180
Other insurance
129,785
Repairs and maintenance
330,000
Section 8 repairs
10,000
Other contract services
250,000
Vehicle fuel
9,500
Vehicle maintenance
5,000
Vehicle Lease
4,571
Licenses and permits
7,000
Chemicals
110,000
Other materials
39,500
Tools
1,500
Safety & security
-
Laboratory fees
78,000
Residuals management
215,000
Uniforms/clothing allowance
2,400
Memberships/periodicals/books
1,700
SUB -TOTAL WASTEWATER TREATMENT 2,335,141
586,004
33,143
46,303
452
33,484
166,658
9,838
6,281
10,072
13,097
1,185
212,201
2,770
20,383
3,282
129,730
241,646
167,775
12,266
4,855
268
21,899
103,858
22,448
4,889
7,676
74,839
207,101
1,752
1111
Actual
586,004
33,143
46,303
452
33,484
166,658
9,838
6,281
10,072
13,097
1,185
208,936
2,770
20,383
3,282
129,730
241,646
167,775
12,266
4,855
268
21,899
103,858
22,448
4,889
7,676
74,839
207,101
1,752
1111
Page 37 of 55
Variance
3,265
G,140,46 / G,14J,GL6 3,G0J
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2022
Original
WASTEWATER COLLECTION
Budget
Salaries and wages
370,960
Overtime
35,697
FICA
31,109
Unemployment taxes
1,993
Employer pension contribution
24,398
Health/life insurance
91,681
Workers' compensation
4,410
Engineering services
-
Travel and training
9,500
Telephone and fax
3,800
Postage and shipping
38,000
Electric
-
General liability insurance
12,990
Comprehensive auto insurance
5,300
Other insurance
6,944
Repairs and maintenance
140,000
Other contract services
12,000
Vehicle fuel
10,200
Vehicle maintenance
12,000
Vehicle Lease
15,414
Licenses and permits
500
Chemicals
16,000
Other materials
41,000
Tools
6,500
Safety security
-
Uniforms/clothing allowance
1,500
Memberships/periodicals/books
1,200
SUB -TOTAL WASTEWATER COLLECTION 893,096
Page 38 of 55
Final
Budget
Actual Variance
367,472
367,472 -
40,341
40,341 -
30,557
30,557 -
201
201 -
21,761
21,761 -
119,680
119,680 -
6,395
6,395 -
32,971
32,971 -
13,208
13,208 -
3,411
3,411 -
51,473
51,473 -
12,990
12,990 -
5,299
5,299 -
7,081
7,081 -
119,566
119,566 -
8,345
8,345 -
14,579
14,579 -
3,672
3,672 -
1,036
1,036 -
14,962
14,962 -
34,886
38,157 (3,271)
3,817
3,817 -
4,478
4,478 -
1,189
1,189 -
210
210 -
919,580
922,851 (3,271)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 39 of 55
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2022
Original
Final
Budget
Budget
Actual
Variance
CUSTOMER SERVICE / ADMIN
Salaries and wages
666,857
721,390
721,390
-
Overtime
3,150
7,374
7,374
-
FICA
51,255
54,798
54,798
-
Unemployment taxes
3,283
768
768
-
Employer pension contribution
40,200
38,908
38,908
-
Health/life insurance
158,115
175,051
175,051
-
Workers' compensation
8,026
2,671
2,671
-
Legal services
972,500
186,805
186,805
-
Other professional services
171,000
122,016
122,016
-
Accounting/auditing
60,000
38,090
38,090
-
Engineering services
400,000
193,790
249,644
(55,854)
Travel and training
25,000
24,143
24,143
-
Telephone and fax
5,000
5,859
5,859
-
Postage and freight
36,000
42,460
42,460
-
General liability insurance
10,510
10,510
10,510
-
Comprehensive auto insurance
530
530
530
-
Otherinsurance
41,971
44,265
44,265
-
Other contract services
50,000
78,750
78,750
-
Repairs and maintenance
2,500
2,018
2,018
-
Vehicle fuel
1,000
2,658
2,658
-
Vehicle maintenance
250
193
193
-
Vehicle Lease
4,106
838
838
-
Office supplies
15,000
35,242
35,242
-
Miscellaneous office expense
65,000
31,850
41,305
(9,455)
Miscellaneous bank fees
-
6,159
6,210
(51)
Miscellaneous expense
9,000
-
78,066
(78,066)
Arrowhead Assessment fees/discount
5,000
4,074
4,074
-
Advertising
6,200
9,453
9,453
-
Licenses and permits
250
175
175
-
Safety & security
-
2,771
2,771
-
Tools
-
-
-
-
Uniforms/clothing allowance
800
1,000
1,000
-
Memberships/periodicals/books
13,000
7,984
7,984
-
Hurricane Ian - Supplies
-
9,629
9,621
8
SUB -TOTAL CUSTOMER SERVICE / ADMIN
2,825,503
1,862,222
2,005,640
(143,418)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
Page 40 of 55
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP
BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION
TO GAAP BASIS, CONTINUED
Year ended September 30, 2022
Original
Final
Budget
Budget
Actual
Variance
MAINTENANCE
Salaries and wages
319,021
197,784
197,784
-
Overtime
5,436
21,119
21,119
-
FICA
24,821
16,119
16,119
-
Unemployment taxes
1,590
157
157
-
Employer pension contribution
19,467
12,469
12,469
-
Health/life insurance
105,811
97,969
97,969
-
Workers' compensation
4,410
3,932
3,932
-
Travel and training
21,200
9,144
9,144
-
Telephone and fax
2,300
4,504
4,504
-
General liability insurance
7,734
7,734
7,734
-
Comprehensive auto insurance
7,419
7,419
7,419
-
Other insurance
2,119
2,336
2,336
-
Repairs and maintenance
22,000
4,681
4,681
-
Other contract services
6,500
6,654
6,654
-
Vehicle fuel
8,300
10,543
10,543
-
Vehicle maintenance
18,000
1,366
1,366
-
Vehicle lease
15,414
776
776
-
Licenses and permits
1,500
-
-
-
Office expense
-
367
367
-
Other materials
20,000
12,505
12,505
-
Tools
2,000
2,475
2,475
-
Safety & security
-
3,063
3,063
-
Uniforms/clothing allowance
1,500
939
939
-
Memberships/periodicals/books
1,000
332
332
-
SUB -TOTAL MAINTENANCE
617,542
424,387
424,387
-
DEPRECIATION
Depreciation
-
-
2,534,093
(2,534,093)
SUB -TOTAL DEPRECIATION
-
-
2,534,093
(2,534,093)
TOTAL OPERATING EXPENSES
9,212,548
7,964,187
10,641,446
(2,677,259)
OPERATING PROFIT $ 2,991,880 $ 3,836,100
$ 1,169,536 $ (2,666,564)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 41 of 55
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year Ended September 30, 2022
OPERATING PROFIT,
BROUGHT FORWARD
NON -OPERATING REVENUES (EXPENSES)
Original Final
Budget Budget Actual Variance
$ 2,991,880 $ 3,836,100 $ 1,169,536 $ (2,666,564)
Interest income
31,236
33,495
56,678
23,183
Contributed capital - grant - FDEP/EPA
1,460,500
-
-
-
Contributed capital - grant - USDA/FHA
1,229,088
768,250
768,250
-
Contributed capital - customers
70,000
73,465
73,465
-
Contributed capital - developers
70,000
30,207
30,207
-
Contributed capital - Special assessments
77,900
77,881
-
(77,881)
Bond proceeds - Refunding bond
-
8,830,259
9,850,760
1,020,501
Bond proceeds - USDA
944,000
944,000
944,000
-
Other non -operating revenue
36,462
42,686
42,826
140
Capital outlay
(5,976,446)
(2,854,413)
(2,966,613)
(112,200)
Principal retirement - bonds
(798,000)
(9,834,969)
(10,518,363)
(683,394)
Principal retirement - SRF
(37,825)
(96,126)
(37,826)
58,300
Principal retirement - capital lease
(43,861)
(43,861)
(43,862)
(1)
Net Assets - brought forward
14,494,000
12,123,841
-
(12,123,841)
Net Assets - carryforward
(13,598,911)
(12,972,657)
-
12,972,657
Interest expense
(939,623)
(949,988)
(922,210)
27,778
Bond issuance costs
-
-
(305,502)
(305,502)
Bad debt expense
(20,000)
(11,501)
(11,501)
-
Gain (Loss) on disposal of assets
9,600
3,331
3,331
-
NET NON -OPERATING
REVENUES (EXPENSES)
(2,991,880)
(3,836,100)
(3,036,360)
799,740
NET PROFIT (LOSS)
$ -
$ -
$ (1,866,824)
$ (1,866,824)
Reconciliation:
Net profit (loss) (Non-GAAP Budgetary Basis)
$ (1,866,824)
Bond proceeds - Refunding bond
(9,850,760)
Bond proceeds - USDA
(944,000)
Capital outlay
2,966,613
Principal retirement - bonds
10,518,363
Principal retirement - SRF
37,826
Principal retirement - Capital lease
43,862
Increase in Net Position (GAAP Basis)
905,080
Net position - beginning of the year
42,309,956
Net position - end of the year
$ 43,215,036
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended September 30, 2022
Grantor's
Program/
Federal Agency/Pass Through
Contract
Award
State Agency/Program Title
CFDA#
Number
Amount
FEDERAL AWARDS
U.S. Department of Agriculture - Rural Development
MAJOR (TYPE A)
Water and Waste Disposal Systems for Rural
Communities Grant Portion - Water lines
10.760
Grant # 27
$ 1,547,200
91-27
Water and Waste Disposal Systems for Rural
Communities Grant Portion - Clarifier -
Communities Loan Portion - Clarifier
10.760
Loan # 28
944,000
Water and Waste Disposal Systems for Rural
Communities Grant Portion - Clarifier
10.760
Grant # 29
765,000
TOTAL FEDERAL FINANCIAL AWARDS
$ 3,256,200
(1) $437,946 of receipts received during FY22 were used to pay prior year expenditures.
(2) Remaining expenditures made from BAN before conversion to Bond Series 2022 $944,000 during FY22.
(3) The sum of this revenue is reflected as capital contribution from USDA grants of $768,250 on the
statement of revenues, expenses and changes in net position for the year ended September 30, 2022.
(4) Includes receivables of $156,083 of restricted receivables from other governments.
* This amount of $944,999 is reflected as a loan addition (Series 2022) and outstanding loan rather than as a
revenue since the District is accounted for as an enterprise fund.
Page 42 of 55
Receipts/
Revenue Disbursements/
Recognized Expenditures Subrecipients
$ 437,946 (1) $ 437,946 (3) None
559,347 (2) 559,347 None
330,304 (3) 330,304 (3)(4) None
$ 1,327,597 $ 1,327,597
IMMOKALEE WATER & SEWER DISTRICT Page 43 of 55
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year ended September 30, 2022
NOTE A - BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards has been prepared on an accrual
basis of accounting in conformity with accounting principles generally accepted in the
United States of America and is in accordance with the provisions of the Uniform
Guidance.
Expenditures reported on the Schedule of Expenditures of Federal Awards include
cash disbursements, whether capitalized or expensed, during the fiscal year as well as
loan and grant related amounts recorded as payable at year end. Revenues reported
on the Schedule of Expenditures of Federal Awards include income recognized
including loan and grant receivables recorded at year end. Cash receipts that were
deferred are footnoted as such.
NOTE B - INDIRECT COSTS
The District did not routinely allocate costs to Federal Awards. Costs charged to
such programs were direct costs unless specifically incurred for the program and
allowed and indicated as such.
The District has elected not to use the l 0% de minimus indirect cost rate allowed
under the Uniform Guidance.
ADDITIONAL REPORTS
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF
BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
Tax Division
Page 44 of 55
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States of America, the basic financial
statements of the business -type activities of Immokalee Water & Sewer District (the "District")
which comprise the statement of net position as of September 30, 2022, and the related
statements of revenues, expenses and changes in net position and cash flows for the year then
ended and the related notes to the financial statements and have issued our report thereon dated
April 18, 2023.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Immokalee Water
& Sewer District's internal control over financial reporting (internal control) as a basis for designing
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of Immokalee Water & Sewer District's internal control. Accordingly, we do not
express an opinion on the effectiveness of the Immokalee Water & Sewer District's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the basic financial statements will not be prevented or detected and
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 45 of 55
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses, as defined
previously. However, material weaknesses may exist that were not identified.
We, however, noted certain other matters that we have reported in our Report to Management
dated April 18, 2023.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Immokalee Water & Sewer District's
financial statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grants, noncompliance with which could have
a direct and material effect on the financial statements. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance that are
required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
AU4,
7
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
April 18, 2023
TUSCAN Affiliations
Florida Institute of Certified Public Accountants
Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants & Consultants Tax Division
Page 46 of 55
Independent Auditor's Report on Compliance for Each Major
Program/Proiect and on Internal Control Over Compliance Required by
the Uniform Guidance
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
Report on Compliance for Each Major Federal Program
We have audited Immokalee Water & Sewer District's compliance with the types of compliance
requirements described in the OMB Compliance Supplement as applicable, that could have a
direct and material effect on each of Immokalee Water & Sewer District's major federal programs
for the year ended September 30, 2022. Immokalee Water & Sewer District's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule
of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts,
and grants applicable to its major federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Immokalee Water & Sewer
District's major federal programs based on our audit of the types of compliance requirements
referred to above. We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United
States of America; and 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"). Those standards and the Uniform Guidance require that we plan
and perform the audit to obtain reasonable assurance about whether noncompliance with the types
of compliance requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis, evidence about
Immokalee Water & Sewer District's compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances.
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 47 of 55
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of Immokalee
Water & Sewer District's compliance with those requirements.
Opinion on Each Major Federal Program
In our opinion, Immokalee Water & Sewer District complied, in all material respects, with the
types of compliance requirements referred to above that could have a direct and material effect on
each of its major federal programs for the year ended September 30, 2022.
Report on Internal Control Over Compliance
Management of Immokalee Water & Sewer District is responsible for establishing and
maintaining effective internal control over compliance with the types of compliance requirements
referred to above. In planning and performing our audit of compliance, we considered Immokalee
Water & Sewer District's internal control over compliance with the types of requirements that
could have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express
an opinion on the effectiveness of Immokalee Water & Sewer District's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program 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 that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control
over compliance that might be deficiencies, material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
Page 48 of 55
Purpose of the Report
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. Accordingly, this report is not suitable for any other
lAil 44 4 Z;vq 4 3 t
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
April 18, 2023
IMMOKALEE WATER & SEWER DISTRICT Page 49 of 55
SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL
AWARDS
Year ended September 30, 2022
Section I — Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Unmodified
Internal control over financial reporting:
Control deficiency(ies) identified?
Yes
X
No
Significant deficiency(ies) identified?
Yes
X
No
Material weakness(es) identified?
Yes
X
None reported
Noncompliance material to financial statements
noted?
Yes
X
No
Federal Awards
Internal control over major programs:
Control deficiency(ies) identified?
Yes
X
No
Significant deficiency(ies) identified?
Yes
X
No
Material weakness(es) identified?
Yes
X
None reported
Type of auditors report issued on compliance for
major programs
Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR,
Section 200.516(a)?
Yes
X
No
Identification of major programs (Type A):
CFDA
Numbers Name of Federal Program or Cluster
10.760 U.S. Department of Agriculture
- Loan
- Grants
Dollar threshold used to distinguish between
Type A and Type B programs Threshold used was $750,000.
Auditee qualified as low -risk auditee? Yes X No
Listing of Subrecipients and matching amounts passed -through:
None - not applicable
IMMOKALEE WATER & SEWER DISTRICT Page 50 of 55
SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL
AWARDS, CONTINUED
Year ended September 30, 2022
Section II- Financial Statement Findings
There were no deficiencies, material weaknesses, or instances of noncompliance related to
the financial statements.
Section III- Federal Award Findings and Questioned Costs
There were no audit findings related to Federal Awards required to be reported by 2 CFR,
Section 200.516(a).
Section IV- Status of Federal Prior Year Findings
There were no prior year findings.
TUSCAN Affiliations
Florida Institute of Certified Public Accountants
& Company, PA
Certified Public Accountants & Consultants
American Institute of Certified Public Accountants
Private Companies Practice Section
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
Tax Division
Page 51 of 55
We have examined Immokalee Water & Sewer District's compliance with Section 218.415,
Florida Statutes, regarding the investment of public funds during the year ended September 30,
2022. Management is responsible for Immokalee Water & Sewer District's compliance with
those requirements. Our responsibility is to express an opinion on Immokalee Water & Sewer
District's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a test
basis, evidence about Immokalee Water & Sewer District's compliance with those requirements
and performing such other procedures as we considered necessary in the circumstances. We
believe that our examination provides a reasonable basis for our opinion. Our examination does
not provide a legal determination on Immokalee Water & Sewer District's compliance with
specified requirements.
In our opinion, Immokalee Water & Sewer District complied, in all material respects, with the
aforementioned requirements for the year ended September 30, 2022.
This report is intended solely for the information and use of the Immokalee Water & Sewer
District and the Auditor General, State of Florida, and is not intended to be and should not be
used by anyone other than these specified parties.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
April 18, 2023
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
TUSCAN Affiliations
Florida Institute of Certified Public Accountants
Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants & Consultants Tax Division
Page 52 of 55
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have audited the accompanying basic financial statements of Immokalee Water & Sewer
District (the "District") as of and for the year ended September 30, 2022 and have issued our
report thereon dated April 18, 2023.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America and Chapter
10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report
on Internal Control over Financial Reporting and Compliance and Other Matters based on an
Audit of the Financial Statements Performed in Accordance with Government Auditing Standards.
Disclosures in that report, which is dated April 18, 2023, should be considered in conjunction
with this report to management.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter included the following information, which is not included in the aforementioned
auditor's report:
Section 10.554(1)(i)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. Prior year comments that have not
been resolved are repeated and updated below.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. No such
recommendations were noted to improve financial management except as noted below.
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 53 of 55
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address
noncompliance with provisions of contracts or grant agreements, or abuse, that have an
effect on the financial statements that is less than material but more than inconsequential.
In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title
and legal authority for the primary government and each component unit of the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. The District discloses this information in the notes to the financial statements.
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included
as to whether or not the local government entity has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific
condition(s) met. In connection with our audit, we determined that the District did not
meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, we
have applied financial condition assessment procedures. It is management's responsibility
to monitor the District's financial condition, and our financial condition assessment was
based in part on representations made by management and the review of financial
information provided by same. In connection with our audit, we determined that the
District did not meet any of the criteria of a deteriorating financial condition as
described in Auditor General Rule Section 10.554(1)(i)(5).a.
Pursuant to Section 10.544(1)(i)5.b.2., Rules of the Auditor General, if a deteriorating
financial condition(s) is noted then a statement is so required along with the conditions
causing the auditor to make such a conclusion. No such conditions were noted.
Pursuant to Section 10.554(1)(i)5.c., Rules of the Auditor General, requires a statement
indicating a failure, if any, of a component unit special district to provide financial
information necessary to a proper reporting of the component unit within the audited
financial statements of this entity (F.S. Section 218.39(3)(b)). There are no known
component special districts required to report within these financial statements.
Pursuant to Section 10.554(1)(i)6, Rules of the Auditor General, requires disclosure of
certain unaudited data. See Exhibit 2.
Pursuant to Section 10.554(1)(i)7, Rules of the Auditor General, requires an independent
special district that imposes ad valorem taxes to disclose certain related unaudited data.
See Exhibit 2.
Page 54 of 55
Section 10.554(1)8, Rules of the Auditor General, requires an independent special district
that imposes a non -ad valorem special assessment to disclose certain unaudited data. See
Exhibit 2.
Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our audit
to determine the entity's compliance with the provisions of Section 218.415, Florida
Statutes, regarding the investment of public funds. In connection with our audit, we
determined that the District complied with Section 218.415, Florida Statutes as
reported in our Independent Accountant's Report on Compliance with Section 218.415,
Florida Statutes dated April 18 2023, included herein.
Section 10.557(3)(m), Rules of the Auditor General, requires a notarized affidavit,
related to impact fees, signed and sworn to be the Chief Financial Officer be included
in the audit report. No such affidavit is included as the District has not implemented any
Impact Fees.
PRIOR YEAR COMMENTS:
2020-1 Reconciliation of Account Balances Should Be Performed Routinelv and Timel
During the audit, it was noted that the District was unable to provide an accounts payable
listing and fixed asset reconciliation that agreed to the balances recorded at fiscal
year-end.
We recommend that the accounting staff reconcile all account balances on a monthly
basis, ensuring that all balance sheet accounts agree to subsidiary ledgers. These
reconciliations should be performed on a monthly basis and any differences or
discrepancies investigated and corrected.
2021 Addendum
During the audit, we noted that the balance sheet accounts agreed to the subsidiary
ledgers. However, there were several significant adjusting journal entries and summary of
unadjusted differences. We continue to recommend that all balance sheet accounts and
significant revenue and expense accounts be analyzed, reconciled and reviewed monthly.
2022 Addendum
Comment resolved.
Page 55 of 55
C�lilm' 92 ►`Y 1�'i�tK� a ►� D
2022-1 Bank Reconciliation Should Agree to Ending General Ledger Balance
During the audit, we noted that the September 30, 2022 bank reconciliation for the
operating account did not agree to the general ledger provided to us for audit. We
recommend that all bank accounts be reconciled monthly to the monthly general ledger
balance on a timely basis and that the reconciliation be reviewed and approved for
accuracy.
2022-2 Fixed Asset Listing Should Include Identifying Tad Number
During fixed asset observation, it was noted that the fixed asset listing provided did not
include the identifying tag number of the assets. The District does maintain a separate
listing of the fixed assets which includes the tag number, however this information was not
available on the fixed asset listing provided to us. We recommend that the fixed asset
listing should be modified to include the asset tag number to ensure compliance with
Florida Statutes and Florida Administrative Code 69I-73.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners, management, the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
i 44A/OA41
rAV400 Za
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
April 18, 2023
EXHIBIT 1
IMMOKALEE
WATER & SEWER
DISTRICT
May 9, 2023
Sherrill F. Norman, CPA
Auditor General, State of Florida
Claude Denson Pepper Building
111 West Madison Street
Tallahassee, Florida 32399-1450
Dear Ms. Norman:
This letter is in response to the Management Letter in the Immokalee Water and Sewer
District's Year Ending September 30, 2022 audit, performed by Tuscan & Company, P.A.;
which was presented to and accepted by the Board on (Board Meeting Date).
CURRENT YEAR COMMENTS:
2022-1 Bank Reconciliation Should Agree to Ending General Ledger Balance
During the audit, we noted that the September 30, 2022 bank reconciliation for the
operating account did not agree to the general ledger provided to us for audit. We
recommend that all bank accounts be reconciled monthly to the monthly general
ledger balance on a timely basis and that the reconciliation be reviewed and
approved for accuracy.
2022 /W5D Response. A procedure has been added to the monthly bank reconciliation
process to reconcile the cash balance per the trial balance to the cash balance per the bank
reconciliation report and resolve any differences for each account. This will eliminate any
future unresolved differences.
2022-2 Fixed Asset Listing Should Include Identifying Tag Number
During fixed asset observation, it was noted that the fixed asset listing provided did
not include the identifying tag number of the assets. The District does maintain a
separate listing of the fixed assets which includes the tag number, however this
information was not available on the fixed asset listing provided to us. We
recommend that the fixed asset listing should be modified to include the asset tag
number to ensure compliance with Florida Statutes and Florida Administrative Code
691-73.
2022 /W5D Response. The District is in the process ofplacing tag numbers on assets and
recording the tag numbers in the asset system. We will ensure that any new tag numbers
placed on assets are added to the asset system in a timely manner.
The District appreciates the efficient planning and performance of Tuscan & Company, P.A.
during the audit to obtain reasonable assurance about the District's basic financial
statements as well as their evaluation of the presentation of those statements. The District
respects and values their effort, work product, and feedback.
Mr. Joseph Brister
Chair
Ms. Patricia Anne
Goodnight
Vice Chair
Ms. Bonnie Keen
Secretary
Mr. Robert Halman
Treasurer
Ms. Magda Ayala
Commissioner
Mr. Jack Johnson
Commissioner
May 9,1013
Immokolee Water and Sewer District Response to Management Letter
Audit for Year Ending September 30, 2022
Page 2
Sincerely,
Sarah Catala, Executive Director
Brian Stewart, Finance Director
IMMOKALEE
WATER &SEWER
DISTRICT
EXHIBIT 2
EXHIBIT 2 Page 1
UNAUDITED
COMPLIANCE WITH REPORTING REQUIRED BY:
Auditor General Rule 10.554(1)(i)6
For a dependent special district or an independent special district, or a local
government entity that includes the information of a dependent special district as
provided in Section 218.39(3)(a), Florida Statutes, the following specific information
provided by management (with explanatory verbiage that the auditor provides no
assurance on the information):
a. The total number of district employees compensated in the last pay period of the
district's fiscal year being reported (see information required in Section
218.32(1)(e)2.a., Florida Statutes). 43
b. The total number of independent contractors to whom nonemployee
compensation was paid in the last month of the district's fiscal year being
reported (see information required in Section 218.32(1)(e)2.b., Florida
Statutes). 6
c. All compensation earned by or awarded to employees, whether paid or accrued,
regardless of contingency (see information required in Section 218.32(1)(e)2.c.,
Florida Statutes). (Total wage compensation for the fiscal year being audited)
$2,870,654
d. All compensation earned by or awarded to nonemployee independent
contractors, whether paid or accrued, regardless of contingency (see information
required in Section 218.32(1)(e)2.d., Florida Statutes). (Amounts paid that
would be reported on a Form 1099 for FYE) $331,751
e. Each construction project with a total cost of at least $65,000 approved by the
district that was scheduled to begin on or after October 1 of the fiscal year being
reported, together with the total expenditures for such project (see information
required in Section 218.32(1)(e)2.e., Florida Statutes). See Note P
f. A budget variance report based on the budget adopted under section
189.016(4), Florida Statutes, before the beginning of the fiscal year reported if
the district amends a final adopted budget under Section 189.016(6), Florida
Statutes (see information required in Section 218.32(1)(e)3., Florida Statutes).
If there were amendments then include budget variance (original budget vs.
actual at FYE). See attached pages 3 - 9.
Page 2
Auditor General Rule 10.554(1)(i)7
For an independent special district that imposes ad valorem taxes, the following
specific information provided by management (with explanatory verbiage that the
auditor provides no assurance on the information): (see information required in
Section 218.32(1)(e)4., Florida Statutes).
a. The millage rate or rates imposed by the district. N/A
b. The current year gross amount of ad valorem taxes collected by or on behalf of
the district. N/A
c. The total amount of outstanding bonds issued by the district and terms of such
bonds. See Note G
Auditor General Rule 10.554(1)(i)8
For an independent special district that imposes non -ad valorem special assessments,
the following specific information provided by management (with explanatory
verbiage that the auditor provides no assurance on the information): (see information
required in Section 218.32(l)(e)5., Florida Statutes).
a. The rate or rated of such assessment imposed by the district. Initially levied in a
prior year and collected over 20 years.
SR 29 $ 219
Arrowhead $ 47
b. The total amount of special assessments collected by or on behalf of the district.
Arrowhead $53,464 total for current year
SR 29 $24,452 total for current year
c. The total amount of outstanding bonds issued by the district and the terms of
such bonds. $30,282,864
IMMOKALEE WATER & SEWER DISTRICT
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED -
Year ended September 30, 2022
Original
Budget
Actual
Variance
OPERATING REVENUES
Water service
$ 4,376,541
$ 4,108,228
$ (268,313)
Wastewater service
6,212,743
5,983,159
(229,584)
Meter service charge
866,267
863,741
(2,526)
Late fees
84,980
86,025
1,045
Reconnect and transfer fees
108,163
106,230
(1,933)
Miscellaneous charges, fees and other income
178,383
289,067
110,684
Cross connection control fee
377,351
374,532
(2,819)
TOTAL OPERATING REVENUES
12,204,428
11,810,982
(393,446)
OPERATING EXPENSES
WATER TREATMENT
Salaries and wages
299,094
274,569
24,525
Overtime
9,827
11,005
(1,178)
FICA
23,632
21,253
2,379
Unemployment taxes
1,514
83
1,431
Employer pension contribution
18,535
16,345
2,190
Health/life insurance
63,814
72,581
(8,767)
Workers' compensation
3,528
4,547
(1,019)
Travel and training
8,000
9,876
(1,876)
Telephone and fax
2,850
6,075
(3,225)
Electric
172,000
223,623
(51,623)
General liability insurance
10,135
10,135
-
Comprehensive auto insurance
2,120
2,120
-
Other insurance
37,791
38,736
(945)
Repairs and maintenance
168,752
144,324
24,428
Other contract services
24,000
29,866
(5,866)
Vehicle fuel
11,633
15,317
(3,684)
Vehicle maintenance
12,000
3,080
8,920
Vehicle Lease
-
22
(22)
Office expense
-
587
(587)
Licenses and permits
5,790
4,075
1,715
Chemicals
99,772
98,327
1,445
Other materials
109,522
96,929
12,593
Tools
2,285
1,675
610
Safety and security
-
5,473
(5,473)
Laboratory fees
28,400
24,323
4,077
Uniforms/clothing allowance
1,200
1,206
(6)
Memberships/periodicals/books
1,150
550
600
SUB -TOTAL WATER TREATMENT
1,117,344
1,116,702
642
Page 3
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2022
Original
Budget
Actual
Variance
WATER DISTRIBUTION
Salaries and wages
600,376
580,203
20,173
Overtime
47,246
30,250
16,996
FICA
49,543
45,449
4,094
Unemployment taxes
3,173
473
2,700
Employer pension contribution
38,857
33,804
5,053
Health/life insurance
194,453
242,546
(48,093)
Workers' compensation
9,702
10,102
(400)
Engineering services
-
5,876
(5,876)
Travel and training
20,000
23,452
(3,452)
Telephone and fax
2,850
4,367
(1,517)
Electric
2,400
-
2,400
General liability insurance
11,481
11,481
-
Comprehensive auto insurance
6,889
6,889
-
Other insurance
1,857
1,612
245
Repairs and maintenance
126,823
70,015
56,808
Water meter & registers replacement
-
236,713
(236,713)
Other contract services
17,862
16,220
1,642
Vehicle fuel
25,630
32,561
(6,931)
Vehicle maintenance
19,137
14,470
4,667
Vehicle Lease
8,019
284
7,735
License and permits
200
-
200
Office expense
-
20
(20)
Other materials
220,585
104,664
115,921
Tools
12,664
12,154
510
Safety and security
-
8,010
(8,010)
Uniforms/clothing allowance
3,000
2,579
421
Memberships/periodicals/books
1,175
357
818
SUB -TOTAL WATER DISTRIBUTION
1,423,922
1,494,551
(70,629)
SUB -TOTAL WATER PLANTS/DISTRIBUTION
2,541,266
2,611,253
(69,987)
Page 4
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2022
Original
Budget
Actual
Variance
WASTEWATER TREATMENT
Salaries and wages
577,859
586,004
(8,145)
Overtime
47,246
33,143
14,103
FICA
47,820
46,303
1,517
Unemployment taxes
3,063
452
2,611
Employer pension contribution
37,506
33,484
4,022
Health/life insurance
141,719
166,658
(24,939)
Workers' compensation
7,409
9,838
(2,429)
Other professional services
-
6,281
(6,281)
Engineering services
-
10,072
(10,072)
Travel and training
16,000
13,097
2,903
Telephone and fax
4,000
1,185
2,815
Electric
230,000
208,936
21,064
Section 8 electric
5,000
2,770
2,230
General liability insurance
20,383
20,383
-
Comprehensive auto insurance
3,180
3,282
(102)
Other insurance
129,785
129,730
55
Repairs and maintenance
330,000
241,646
88,354
Section 8 repairs
10,000
-
10,000
Other contract services
250,000
167,775
82,225
Vehicle fuel
9,500
12,266
(2,766)
Vehicle maintenance
5,000
4,855
145
Vehicle Lease
4,571
268
4,303
Licenses and permits
7,000
21,899
(14,899)
Chemicals
110,000
103,858
6,142
Other materials
39,500
22,448
17,052
Tools
1,500
4,889
(3,389)
Safety & security
-
7,676
(7,676)
Laboratory fees
78,000
74,839
3,161
Residuals management
215,000
207,101
7,899
Uniforms/clothing allowance
2,400
1,752
648
Memberships/periodicals/books
1,700
332
1,368
SUB -TOTAL WASTEWATER TREATMENT
2,335,141
2,143,222
191,919
Page 5
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2022
Original
Budget
Actual
Variance
WASTEWATER COLLECTION
Salaries and wages
370,960
367,472
3,488
Overtime
35,697
40,341
(4,644)
FICA
31,109
30,557
552
Unemployment taxes
1,993
201
1,792
Employer pension contribution
24,398
21,761
2,637
Health/life insurance
91,681
119,680
(27,999)
Workers' compensation
4,410
6,395
(1,985)
Engineering services
-
32,971
(32,971)
Travel and training
9,500
13,208
(3,708)
Telephone and fax
3,800
3,411
389
Poatage and shipping
38,000
-
38,000
Electric
-
51,473
(51,473)
General liability insurance
12,990
12,990
-
Comprehensive auto insurance
5,300
5,299
1
Other insurance
6,944
7,081
(137)
Repairs and maintenance
140,000
119,566
20,434
Other contract services
12,000
8,345
3,655
Vehicle fuel
10,200
14,579
(4,379)
Vehicle maintenance
12,000
3,672
8,328
Vehicle Lease
15,414
1,036
14,378
Licenses and permits
500
-
500
Chemicals
16,000
14,962
1,038
Other materials
41,000
38,157
2,843
Tools
6,500
3,817
2,683
Safety security
-
4,478
(4,478)
Uniforms/clothing allowance
1,500
1,189
311
Memberships/periodicals/books
1,200
210
990
SUB -TOTAL WASTEWATER COLLECTION
893,096
922,851
(29,755)
Page 6
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2022
Original
Budget
Actual
Variance
CUSTOMER SERVICE / ADMIN
Salaries and wages
666,857
721,390
(54,533)
Overtime
3,150
7,374
(4,224)
FICA
51,255
54,798
(3,543)
Unemployment taxes
3,283
768
2,515
Employer pension contribution
40,200
38,908
1,292
Health/life insurance
158,115
175,051
(16,936)
Workers' compensation
8,026
2,671
5,355
Legal services
972,500
186,805
785,695
Other professional services
171,000
122,016
48,984
Accounting/auditing
60,000
38,090
21,910
Engineering services
400,000
249,644
150,356
Travel and training
25,000
24,143
857
Telephone and fax
5,000
5,859
(859)
Postage and freight
36,000
42,460
(6,460)
General liability insurance
10,510
10,510
-
Comprehensive auto insurance
530
530
-
Other insurance
41,971
44,265
(2,294)
Other contract services
50,000
78,750
(28,750)
Repairs and maintenance
2,500
2,018
482
Vehicle fuel
1,000
2,658
(1,658)
Vehicle maintenance
250
193
57
Vehicle Lease
4,106
838
3,268
Office supplies
15,000
35,242
(20,242)
Miscellaneous office expense
65,000
41,305
23,695
Miscellaneous bank fees
-
6,210
(6,210)
Miscellaneous expense
9,000
78,066
(69,066)
Arrowhead Assessment fees/discount
5,000
4,074
926
Advertising
6,200
9,453
(3,253)
Licenses and permits
250
175
75
Safety & security
-
2,771
(2,771)
Tools
-
-
-
Uniforms/clothing allowance
800
1,000
(200)
Memberships/periodicals/books
13,000
7,984
5,016
Hurricane Ian - Supplies
-
9,621
(9,621)
SUB -TOTAL CUSTOMER SERVICE / ADMIN
2,825,503
2,005,640
819,863
Page 7
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2022
Original
Budget
Actual
Variance
MAINTENANCE
Salaries and wages
319,021
197,784
121,237
Overtime
5,436
21,119
(15,683)
FICA
24,821
16,119
8,702
Unemployment taxes
1,590
157
1,433
Employer pension contribution
19,467
12,469
6,998
Health/life insurance
105,811
97,969
7,842
Workers' compensation
4,410
3,932
478
Travel and training
21,200
9,144
12,056
Telephone and fax
2,300
4,504
(2,204)
General liability insurance
7,734
7,734
-
Comprehensive auto insurance
7,419
7,419
-
Other insurance
2,119
2,336
(217)
Repairs and maintenance
22,000
4,681
17,319
Other contract services
6,500
6,654
(154)
Vehicle fuel
8,300
10,543
(2,243)
Vehicle maintenance
18,000
1,366
16,634
Vehicle lease
15,414
776
14,638
Licenses and permits
1,500
-
1,500
Office expense
-
367
(367)
Other materials
20,000
12,505
7,495
Tools
2,000
2,475
(475)
Safety & security
-
3,063
(3,063)
Uniforms/clothing allowance
1,500
939
561
Memberships/periodicals/books
1,000
332
668
SUB -TOTAL MAINTENANCE
617,542
424,387
193,155
DEPRECIATION
Depreciation - 2,534,093 (2,534,093)
SUB -TOTAL DEPRECIATION - 2,534,093 (2,534,093)
TOTAL OPERATING EXPENSES 9,212,548 10,641,446 (1,428,898)
OPERATING PROFIT $ 2,991,880
$ 1,169,536 $ (1,822,344)
Page 8
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
ORIGINAL BUDGET (NON-GAAP) vs.
ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED
- CONTINUED
Year ended September 30, 2022
Original
Budget
Actual
Variance
OPERATING PROFIT,
BROUGHT FORWARD
$ 2,991,880
$ 1,169,536
$ (1,822,344)
NON -OPERATING REVENUES (EXPENSES)
Interest income
31,236
56,678
25,442
Contributed capital - grant - FDEP/EPA
1,460,500
-
(1,460,500)
Contributed capital - grant - USDA/FHA
1,229,088
768,250
(460,838)
Contributed capital - customers
70,000
73,465
3,465
Contributed capital - developers
70,000
30,207
(39,793)
Contributed capital - special assessments
77,900
-
(77,900)
Debt proceeds - Capital lease
-
9,850,760
9,850,760
Bond proceeds - USDA
944,000
944,000
-
Other non -operating revenue
36,462
42,826
6,364
Capital outlay
(5,976,446)
(2,966,613)
3,009,833
Principal retirement - bonds
(798,000)
(10,518,363)
(9,720,363)
Principal retirement - SRF
(37,825)
(37,826)
(1)
Principal retirement - capital lease
(43,861)
(43,862)
(1)
Net Assets - brought forward
14,494,000
-
(14,494,000)
Net Assets - carryforward
(13,598,911)
-
13,598,911
Interest expense
(939,623)
(922,210)
17,413
Bond issuance cost
-
(305,502)
(305,502)
Bad debt expense
(20,000)
(11,501)
8,499
Gain (Loss) on disposal of assets
9,600
3,331
(6,269)
NET NON -OPERATING
REVENUES (EXPENSES)
(2,991,880)
(3,036,360)
(44,480)
NET PROFIT (LOSS)
$ -
$ (1,866,824)
$ (1,866,824)
Reconciliation:
Net profit (loss) (Non-GAAP Budgetary Basis)
$ (1,866,824)
Bond proceeds - Refunding bond
(9,850,760)
Debt proceeds - BAN
(944,000)
Capital outlay
2,966,613
Principal retirement - bonds
10,518,363
Principal retirement - SRF
37,826
Principal retirement - Capital lease
43,862
Increase in Net Position (GAAP Basis)
905,080
Net position - beginning of the year
42,309,956
Net position - end of the year
$ 43,215,036
Page 9
The accompanying notes are an integral part of this statement.