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Agenda 04/09/2024 Item #13A (Presentation of the Annual Comprehensive Financial Report for the fiscal year ended Sept 30, 2023)13.A 04/09/2024 EXECUTIVE SUMMARY Presentation of the Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023, and authorization to file the related State of Florida Annual Local Government Financial Report with the Department of Financial Services. OBJECTIVE: Presentation of the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended September 30, 2023, and authorization to file the related State of Florida Annual Local Government Financial Report (AFR) with the Department of Financial Services. CONSIDERATIONS: The Clerk of the Circuit Court and Comptroller, serving as Ex-Officio Clerk to the Board of County Commissioners, is responsible for coordination of the annual independent audit along with the production of the Annual Comprehensive Financial Report. In this role, the Clerk is pleased to present to the Board the ACFR for the fiscal year ended September 30, 2023, which includes the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for the fiscal year ended September 30, 2022. The ACFR represents a significant effort by both the Finance and Accounting Department and County staff. We would like to express our sincere appreciation to the Board, the Constitutional Officers and their staff, the County Manager, the County Attorney, the Department Heads, Division Directors, and County staff for their assistance. We would like to also thank the County's external auditors, CliftonLarsonAllen LLP and their staff for a successful year-end audit. The ACFR package delivered to the Board includes an unmodified annual audit opinion for fiscal year 2023, grant related Single Audit Reports and an unaudited report on debt for fiscal year 2023. The unaudited report on debt is required by the County's Debt Management Policy. Also included as an exhibit, the Annual Financial Report is due within 45 days of completion of the audit report but no later than 9 months after the end of the fiscal year. This report documents the revenues and expenditures for a given fiscal year in accordance with the State of Florida Uniform Accounting System. A brief presentation on the overall audit will be given by CliftonLarsonAllen staff. GROWTH MANAGEMENT IMPACT: There is no growth management impact. FISCAL IMPACT: There is no fiscal impact to this executive summary. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues at this time and requires majority vote for acceptance of the report. -JAK RECOMMENDATION: That the Collier County Board of County Commissioners accepts the Annual Comprehensive Financial Report for fiscal year 2023 and authorizes the filing of the State of Florida Annual Local Government Financial Report with the Department of Financial Services. Prepared By: Derek M. Johnssen, Director of Finance and Accounting Clerk of the Circuit Court and Comptroller ATTACHMENT(S) 1.2023 Annual Financial Report (PDF) 2. [Linked] 2023 Collier County ACFR (PDF) Packet Pg. 383 13.A 04/09/2024 COLLIER COUNTY Board of County Commissioners Item Number: 13.A Doc ID: 28463 Item Summary: Presentation of the Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023, and authorization to file the related State of Florida Annual Local Government Financial Report with the Department of Financial Services. (Derek M. Johnssen, Clerk of Court's Office Director of Finance and Accounting) Meeting Date: 04/09/2024 Prepared by: Title: Finance Manager — Clerk of the Circuit Court Name: Kelly Jones 04/02/2024 9:53 AM Submitted by: Title: Assistant Finance Director — Clerk of the Circuit Court Name: Derek Johnssen 04/02/2024 9:53 AM Approved By: Review: Clerk of the Circuit Court Derek Johnssen Other Reviewer Completed 04/02/2024 10:21 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/02/2024 10:24 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/02/2024 10:37 AM Office of Management and Budget Agnieszka Chudy OMB Reviewer County Manager's Office Amy Patterson Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 04/02/2024 1:52 PM Completed 04/03/2024 3:39 PM 04/09/2024 9:00 AM Packet Pg. 384 Annual Financial Report for Collier, 2023 ANNUAL FINANCIAL REPORT SUBMITTING ENTITY: Collier AFR RECEIVED DATE: Location Information 3315 Tamiami Trail East #102 Naples,FL 34112-5324 Phone Number: (239) 252-7864 AUDIT INFORMATION CliftonLarsonAllen LLP Firm Location Information 12800 University Drive,Suite 210 Fort Myers,FL 33907 Phone number:(239) 226-9900 JIMMY PATRONIS CHIEF FINANCIAL OFFICER STATE OF FLORIDA Florida Department of Financial Services SUBMITTING ENTITY TYPE: County Contact Information Kelly Jones FISCAL YEAR 2022-2023 ENTITY DEPENDENCY: Independent AUDIT RECEIVED DATE: Phone Number:(239) 252-7864 LONG-TERM DEBT $668,606,742 E 0 c c U_ CE c c Q c o: U_ U Q M N 0 N M w 1* 00 N 0 a m o: c c U_ c Q M N O N E a 4/2/2024 9:12:25 AM Packet Pg. 385 Annual Financial Report for Collier, 2023 13.A.a CERTIFICATION Chief Financial Officer Title: Chairman, Board of County Commissioners Name: Chris Hall Chairman/Elected Official Title: Clerk of the Circuit Court and Comptroller Name: Crystal K. Kinzel Have you experienced a Financial Emergency in this year? If yes, have you complied with Section 218.503(2), F.S.? ❑ Yes ❑x No ❑ Yes ❑ No 4/2/2024 9:12:25 AM Packet Pg. 386 Annual Financial Report for Collier, 2023 13.A.a Balance General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Sheet Revenue Service Projects Service Trust Trust Purpose Units Trust Assets 102.000 - Cash On Hand $7,120 $1,825 $15,100 $24,045 103.000 - Cash With $30,293,130 $30,293,130 Fiscal Agent 104.000 - Equity In $176,948,300 $415,521,846 $6,316,165 $763,377,256 $5,732,745 $513,982,008 $96,385,288 $30,659,023 $375,805 $484,076 $2,009,782,512 Pooled Cash 115. 100 - Accounts $1,398,001 $20,535,830 $8,381,598 $51,521,561 $1,734,435 $15,247 $83,586,672 Receivable 117.000 - Allowance For Uncollectible Accounts $-591,888 $-153,394 $-340,863 $-26,186,917 $-18,562 $-27,291,624 Receivable (Credit) 12 1.000 -Assessments $1,405 $37,518 $38,923 Receivable 128.000 - Notes Receivable -Current $1,490,839 $189,429 $1,680,268 Portion 131.000- Due From Other $675,661 $4,538,866 $2,941,216 $9,152,736 $32,222 $17,340,701 Funds 132.900-Advances To $2,268,100 $17,209,264 $20,073,701 $12,500,000 $52,051,065 Other Funds 133.000- Due From Other $9,621,068 $13,647,336 $371,715 $25,095,890 $6,543,283 $255,369 $13,284 $55,547,945 Governmental Units 135.000 - Interest And $217,897 $514,077 $14,050 $931,872 $7,077 $793,519 $133,032 $2,611,524 Dividends Receivable 141.000 - Inventories - $1,045,493 $1,567,345 $12,591,970 $711,884 $15,916,692 Materials And Supplies 142.000 - Inventories - For $3,838,014 $3,838,014 Resale 155.000 - Prepaid Items $384,964 $71,619 $35,970 $199,155 $6,492,494 $7,184,202 156.000 - OtherAssets- $20,118 $625 $1,250 $1,706,394 $1,728,387 Current 156.900 - Assets- Non- $3,590,036 $3,590,036 Current 159.000 - Subscription - Based Information $477,003 $1,592,164 $2,069,167 Technology Arrangements (SBITA) 161.900-Land $33,544,065 $33,544,065 162.900- Buildings $178,911,104 $13,815,296 $192,726,400 163.900 -Accumulated Depreciation Buildings $-116,481,772 $-6,741,015 $-123,222,787 (Credit) 164.900 - Infrastructure $1,523,297,879 $11,581,286 $1,534,879,165 165.900 -Accumulated Depreciation - $-725,106,303 $-10,502,839 $-735,609,142 Infrastructure (Credit) 166.500 - Accumulated Amortization - Intangible $34,966,332 $34,966,332 Assets (Credit) 166.900 - Equipment And $107,840,611 $-22,262,706 $85,577,905 Furniture M O O N r_ O Q d R C O C LL R 3 C C Q Cl) N O N C N E t C� O r Q 4/2/2024 9:12:25 AM Packet Pg. 387 Annual Financial Report for Collier, 2023 13.A.a Balance General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Sheet Revenue Service Projects Service Trust Trust Purpose Units 167.900 - Accumulated ust Depreciation Equipment $-71,724,343 $-71,724,343 (Credit) 168.900 - Property Under $1,078,264 $16,192 $1,094,456 Capital Leases 168.950 -Accumulated Depreciation- Property $-380,886 $-12,674 $-393,560 Under Capital Leases (Credit) 169.900 - Construction $167,609,899 $167,609,899 Work In Progress Total $193,485,673 $477,482,682 1$6,701,930 1$850,792,425 1 $5,739,822 1 $1,685,511,884 1$128,178,198 1 $30,687,554 $375,805 1 $484,076 $3,379,440,049 Deferred Outflows 190.000 - Deferred $21,874,064 $2,052,957 $23,927,021 Outflow of Resources Total $0 $0 $0 $0 $0 $21,874,064 $2,052,957 $0 $0 $0 $23,927,021 Liabilities 202.000-Accounts $11,571,632 $15,054,777 $21,420,946 $3,300 $26,370,831 $2,496,243 $769917,729 Payable 203.000 - Notes And Loans Payable - Current $8,247,848 $8,247,848 Portion 203.900 - Notes And Loans Payable - Long- $26,257,000 $26,2579000 Term Portion 207.000-Due To Other $3,739,579 $12,613,681 $47 $978,268 $9,126 $17,340,701 Funds 208.000 - Due To Other $4,700,489 $4,045,283 $212,264 $670 $284,992 $37,247 $10,761,836 $20,042,781 Governmental Units 210.000 - Compensated Absences- Current $3,465,478 $505,027 $3,970,505 Portion 210.900 - Compensated Absences - Long -Term $866,369 $126,257 $9929626 Portion 215.000 -Accrued Interest $2,801,624 $2,801,624 Payable 216.000 -Accrued Salaries $8,586,736 $4,201,076 $4,052,867 $520,790 $17,361,469 And Wages Payable 220.000 - Deposits $982,691 $4,399,995 $103,860 $226,842 $5,713,388 223.000- Deferred $3,308 $35,572,803 $196,584 $135,847 $35,908,542 Revenue 225.000 - Capital Leases - $95,075 $3,335 $98,410 Current Portion 225.900 - Capital Leases - $630970 $280 $631,2 Long -Term Portion50 229.000 - Other Current $41,029 $11,657,455 $150680 $11,849,164 Liabilities 232.000- Revenue Bonds $5,795,000 $5,795,000 Payable - Current Portion M to 00 N r_ O Q d R C R C LL R 3 C C Q Cl) N O N C O E t V O r Q 4/2/2024 9:12:25 AM Packet Pg. 388 Annual Financial Report for Collier, 2023 13.A.a Balance General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Sheet Revenue Service Projects Service Trust Trust Purpose Units 232.900 - Revenue Bonds ust Payable -Long -Term $299,155,221 $299,1559221 Portion 236.900-Advances From $34,841,801 $17,209,264 $52,051,065 Other Funds 237.000 - Other Postemployment Benefits $2,660,407 $325,241 $2,985,648 (OPEB Liability) 238.000 - Pension Liabilities $80,320,670 $8,404,188 $88,7249858 239.900 - Other Long - $1,754,878 $2,416,047 $4,170,925 Term Liabilities 240.000 - Subscription - Based Information $436,780 $1,594,728 $2,031,508 Technology Arrangements (SBrrA) Total $29,584,435 $110,729,416 $47 $39,924,602 $3,970 $463,669,591 $28,222,685 $10,912,516 $0 $0 $683,047,262 Deferred Inflows 290.000- Deferred Inflow $333,732 $10,821,746 $8,040,735 $12,733,845 $335,450 $32,265,508 of Resources Total $333,732 $10,821,746 $0 $8,040,735 $0 $12,733,845 $335,450 $0 $0 $0 $32,265,508 Fund Balances 274.000 - Net Assets, Invested In Capital, Net $882,903,785 $20,471,825 $903,375,610 Of Debt 275.000- Net Assets, $46,638,820 $19,775,038 $375,805 $66,789,663 Restricted 276.000-Net Assets, $301,439,907 $81,201,195 $484,076 $383,125,178 Unrestricted 280.000 - Fund Balance - $5,189,396 $1,638,964 $0 $35,970 $5,522,800 $12,387,130 Nonspendable 281.000-Fund Balance- $75,789 $307,137,992 $6,701,883 $650,513,628 $213,052 $964,642,344 Restricted 282.000 - Fund Balance - $58,730,435 $58,730,435 Committed 283.000 - Fund Balance - $29,292,482 $161,986,302 $191,2789784 Assigned 284.000 - Fund Balance - Unassigned $129,009,839 $41,575,871 $-9,708,812 $107,725,156 Total $163,567,506 1 $35599319520 1$69701,883 1$802,827,088 1 $5,735,852 1 $1,230,982,512 1$101,673,020 1 $19,775,038 $375,805 1 $484,076 $2,688,054,300 O sZ d O C t4 C LL O 7 C C Q C O LL <.i Q M N O N M to 00 N O SZ d R C R C LL R 3 C C Q Cl) N O N r-+ C d E L t) t4 a 4/2/2024 9:12:25 AM Packet Pg. 389 Annual Financial Report for Collier, 2023 13.A.a Revenues General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units 311.000-Ad Valorem $410,393,808 $108,466,576 $16,152 Trust $518,876,536 Taxes 312.130 -Tourist $44,107,953 $44,107,953 Development Taxes 312.300 - County Ninth- $1,938,377 $1,938,377 Cent Voted Fuel Tax 312.410 - (1 To 6 Cents $9,287,979 $9,287,979 Local Option Fuel Tax) 312.420 - (1 To 5 Cents $6,926,109 $6,926,109 Local Option Fuel Tax) 312.630 - Local Government Infrastructure $124,563,003 $124,563,003 Surtax 315.100 - State Communications Services $4,079,742 $4,079,742 Tax 316.000 - Local Business Tax (Formerly Local $684,574 $684,574 Occupational License Tax - 321.000) 319.900 - Other General $163,505 $163,505 Taxes 322.000 - Building Permits $25,223,357 $25,223,357 (Building Permit Fees) 322.900 - Permits -Other $221,487 $1,555,511 $624,426 $2,401,424 324.110 - Impact Fees - Residential - Public Safety Residential Buildings $1,163,168 $1,1639168 Flat Fees Residential Buildings Tiered Scale Based on $2,519,694 $2,519,694 Square Footage 324.120 - Impact Fees - Commercial - Public Safety Office Buildings Tiered Scale Based on $24,918 $24,918 Square Footage Retail Buildings Tiered Scale Based on $262,404 $262,404 Square Footage Institutional Civic Buildings $33,927 $33,927 Tiered Scale Based on Square Footage Industrial Buildings Tiered Scale Based on $18,285 $18,285 Square Footage M to le 00 N r_ O Q d R C R C iL R 3 C C Q Cl) N O N r-+ C N E t V R Y Y Q 4/2/2024 9:12:25 AM Packet Pg. 390 Annual Financial Report for Collier, 2023 13.A.a Revenues General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units Multi -Purpose Trust Tiered Scale Based on $126,727 $126,727 Square Footage 324.210 - Impact Fees - Residential - Physical Environment Residential Buildings $16,801,835 $16,801,835 Flat Fees 324.220 - Impact Fees - Commercial - Physical Environment Multi -Purpose Tiered Scale Based on $744,982 $744,982 Square Footage 324.310 - Impact Fees - Residential - Transportation Residential Buildings $8,064,559 $8,064,559 Flat Fees Residential Buildings Tiered Scale Based on $15,060,596 $15,060,596 Square Footage 324.320 - Impact Fees - Commercial - Transportation Office Buildings Tiered Scale Based on $220,606 $220,606 Square Footage Retail Buildings Tiered Scale Based on $1,289,157 $1,289,157 Square Footage Institutional Civic Buildings $1,122,975 $1,122,975 Tiered Scale Based on Square Footage Industrial Buildings Tiered Scale Based on $236,040 $236,040 Square Footage Multi -Purpose Tiered Scale Based on $1,205,491 $1,205,491 Square Footage 324.410 - Impact Fees - Residential - Economic Environment Residential Buildings $3,761 $3,761 r L O rL tv t4 C l4 C LL R 3 C C Q C R LL U Q M N O N M tD 00 N r_ O Q d R C R C LL R 3 C C Q Cl) N O N r-+ C d E t V to +r Q 4/2/2024 9:12:25 AM Packet Pg. 391 Annual Financial Report for Collier, 2023 13.A.a Revenues General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units Trust Tiered Scale Based on Square Footage 324.610 - Impact Fees - Residential - Culture/Recreation Residential Buildings $4,690,151 $4,690,151 Flat Fees Residential Buildings Tiered Scale Based on $8,012,203 $8,012,203 Square Footage 324.910 - Impact Fees - Residential - Other Residential Buildings $849,938 $849,938 Flat Fees Residential Buildings Tiered Scale Based on $1,950,396 S1,950,396 Square Footage 324.920 - Impact Fees - Commercial - Other Office Buildings Tiered Scale Based on $19,462 $19,462 Square Footage Retail Buildings Tiered Scale Based on $208,927 $208,927 Square Footage Institutional Civic Buildings $26,499 $26,499 Tiered Scale Based on Square Footage Industrial Buildings Tiered Scale Based on $14,456 $14,456 Square Footage Multi -Purpose Tiered Scale Based on $132,700 $132,700 Square Footage 325.100 - Special Assessments -Capital $10,304,659 $1,721,813 $55,545 $12,082,017 Improvement 331.100 - Federal Grant - $153,981 $12,556,016 $12,709,997 General Government 331.200 - Federal Grant - $88 064 $31,332,688 $887 $23,281,820 $54,703,459 Public Safety 331.390 - Federal Grant - Other Physical $65,828 $65,828 Environment E O Q O w R C R C LL fC 3 C C Q C R LL U Q M N O N M tD O N t O Q d l4 C R C LL R 3 C C Q Cl) N O N C N E t C� r 4/2/2024 9:12:25 AM Packet Pg. 392 Annual Financial Report for Collier, 2023 13.A.a Revenues General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units 331.410 - Federal Grant - $233,233 Trust $233,233 Airport Development 331.420 - Federal Grant - $7,247,098 $7,247,098 Mass Transit 331.490 - Federal Grant - $5,188,547 $5,188,547 Other Transportation 331.500 - Federal Grant - $5,904,994 $166,330 $6,071,324 Economic Environment 331.690 - Federal Grant - $1,513,364 $13,978 $1,527,342 Other Human Services 331.900 - Other Federal $156,878 $156,878 Grants 333.000 - Federal $1,611,595 $1,611,585 Payments In Lieu OfTaxes 334.200 - State Grant - $1,018,824 $1,884,963 $2,903,787 Public Safety 334.390 - State Grant - Other Physical $917,513 $134,132 $1,051,645 Environment 334.410 - State Grant - $114,077 $114,077 Airport Development 334.420 - State Grant - $2,062,488 $2,062,488 Mass Transit 334.490 - State Grant - $658,430 $658,430 Other Transportation 334.500 - State Grant - $4,884,742 $4,884,742 Economic Environment 334.690 - State Grant - $1,974,195 $1,974,195 Other Human Services 334.700 - State Grant - $161,047 $161,047 Culture/Recreation 335.121 - County Revenue Sharing Program - $18,830,744 $18,830,744 Proceeds 335.130 - State Revenue Sharing - Insurance License Tax (AKA $124,263 $1249263 Insurance Agents County Licenses) 335.140 - State Revenue Sharing - Mobile Home $121,228 $121,228 Licenses 335.150 - State Revenue Sharing -Alcoholic $220,575 $220,575 Beverage Licenses 335.180 - State Revenue Sharing - Local $68,746,452 $68,746,452 Government Half -Cent Sales Tax Program 335.190 - State Revenue Sharing- Other General $623,719 $623,719 Goverment 335.220 - State Revenue $2,452,430 $2,452,430 Sharing - Enhanced 911 F O !Z O w t4 C O C LL R 7 C C a C l4 LL U Q M N O N M tD 00 N O Q d R C O C LL R 3 C C Q M N O N r-+ C d E t V to Y Q 4/2/2024 9:12:25 AM Packet Pg. 393 Annual Financial Report for Collier, 2023 13.A.a Revenues General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units Fee (Previously: Wireless Trust 911 Board Distributions) 335.430 - State Revenue Sharing - Constitutional $87,196 $63,790 $150,986 Fuel Tax (2Cent Fuel Tax) 335.440 - State Revenue Sharing - County Fuel Tax $2,050,570 $2,0509570 (I Cent Fuel Tax) 335.480 - State Revenue Sharing- Other $4,985,600 $4,985,600 Transportation 335.900 - State Revenue $306,074 $306,074 Sharing - Other 337.100 - Local Government Unit Grant - $11,600 $119600 General Government 337.200 - Local Government Unit Grant - $444,854 $444,854 Public Safety 337.300 - Local Government Unit Grant - $62,500 $1,000,000 $1,062,500 Physical Environment 337.400 - Local Government Unit Grant - $6,000 $6,000 Transportation 341.200 - Internal Service $120,306,697 $120,306,687 Fund Fees And Charges 341.900 - Other General Government Charges And $16,931,544 $11,866,667 $1,056,619,019 $1,085,417,230 Fees 342.600 - Service Charge - $15,517,757 $15,517,757 Ambulance Fees 342.900 - Service Charge - Other Public Safety $1,541,012 $1,541,012 Charges And Fees 343.300 - Service Charge - $90,199,172 $90,199,172 Water Utility 343.400 - Service Charge - $64,707,812 $64,707,812 Garbage/Solid Waste 343.500 - Service Charge - $102,107,895 $102,107,895 Sewer/Wastewater Utility 343.600 - Service Charge - Water/Sewer Combination $32,340 $32,340 Utility 343.900 - Service Charge - Other Physical $2,782,148 $2,782,148 Environment Charges 344.100 - Service Charge - $10,596,872 $10,5969872 Airports 344.900 - Service Charge - Other Transportation $364,287 $134,529 $498,816 Charges 345.900 - Service Charge - $36,411 $65,000 $101,411 Other Economic O SZ O W R C O C LL R 3 C C a C R LL U Q M N O N M CO 00 N O SZ d R C R C LL R 3 C C Q Cl) N O N r-+ C d E t U t4 Q 4/2/2024 9:12:25 AM Packet Pg. 394 Annual Financial Report for Collier, 2023 13.A.a Revenues General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units Environment Charges Trust 346.400 - Service Charge - Animal Control And $97,324 $18,715 $116,039 Shelter Fees 347.200 - Service Charge - $4,554,083 $5,271,051 $9,825,134 Parks And Recreation 351.100 - Judgments And Fines - As Decided By $1,100,324 $1,100,324 County Court Criminal 351.300 - Judgments And Fines - As Decided By $244,844 $244,844 County Court Civil 352.000 - Fines- Library $44,555 $44,555 354.000 - Fines - Local $85,259 $546,415 $631,674 Ordinance Violation 359.000 - Other Judgments, $683,932 $683,932 Fines And Forfeits 361.100 - Interest $7,242,830 $10,815,481 $454,216 $18,418,755 $139,863 $13,292,860 $2,617,601 $3,725 $52,985,331 361.300 - Net Increase (Decrease) In Fair Value Of $2,673,869 $6,428,511 $179,145 $11,749,125 $88,977 $8,313,142 $1,302,064 $30,734,833 Investments 362.000 - Rents And $58,017 $586,260 $47,500 $691,777 Royalties 364.000 - Disposition Of $497,808 $649,116 $72,149 $-1,372,523 $447,142 $293,692 Fixed Assets 365.000 - Sale Of Surplus $9,087 $37,335 $88,506 $2,050 $136,978 Materials And Scrap 366.000 - Contributions And Donations From $990 $566,170 $1,437,147 $1,575 $22,128,844 $548,861 $24,683,587 Private Sources 369.300 - Settlements $540,577 $12,205,000 $89,018 $1,265,614 $354,208 $14,454,417 369.900 - Other $1,379,199 $1,412,919 $190,295 $41,200 $390,581 $1,456,019 $617,363 $5,487,576 Miscellaneous Revenues 381.000 - Inter -Fund $7,989,400 $45,459,041 $38,885,900 $97,889,289 $34,469,655 $13,257,760 $237,9519045 Group Transfers In 383.100 - Installment $1,074,054 $19074,054 Purchase Proceeds 383.200 - Lease Proceeds $5,959,139 $617,468 $6,576,607 384.000- Debt Proceeds $4,046 $1,495,954 $1,500,000 3 86. 100 -Transfer From - $208,146 $208,146 Clerk To The BOCC 386.400 -Transfer From - $264,619 $264,619 Sheriff To The BOCC 386.600 -Transfer From - Property Appraiser ToThe $1,036,163 $99,011 $1,1359174 BOCC 386.700 - Transfer From - Tax Collector To The $12,005,092 $1,276,765 $13,281,857 BOCC 386.800 -Transfer From - Supervisor Of Elections To $196,265 $196,265 The BOCC 389.800 - Proprietary - $24,719,760 $24,719,760 Q 4/2/2024 9:12:25 AM Packet Pg. 395 Annual Financial Report for Collier, 2023 13.A.a Revenues Source General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Revenue Service Proiects Service Trust Trust Purpose Units 725 Total 4/2/2024 9:12:25 AM Packet Pg. 396 Annual Financial Report for Collier, 2023 13.A.a EXpenditureS General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units 511.00 - Legislative Trust 10 - Personnel Services $1,337,411 $1,337,411 30 - Operating Expenditures/Expenses $105,956 $105,956 512.00 - Executive 10 - Personnel Services $1,827,190 $1,827,190 30 - Operating Expenditures/Expenses $301,303 $301,303 60 - Capital Outlay $40,948 $40,948 70 - Debt Service $24,610 $24,610 513.00 - Financial And Administrative 10 - Personnel Services $6,576,646 $5,302,104 $11,878,750 30-Operating Expenditures/Expenses $2,007,337 $1,553,143 $505,593 $4,066,073 60 - Capital Outlay $255,844 $1,578,573 $1,834,417 70- Debt Service $49,000 $90,000 $139,000 514.00 - Legal Counsel 10 - Personnel Services $2,655,273 $2,655,273 30 - Operating Expenditures/Expenses $155,884 $155,884 515.00 - Comprehensive Planning 10 - Personnel Services $6,235,496 $6,235,496 30 - Operating Expenditures/Expenses $2,586,073 $2,586,073 60 - Capital Outlay $35,010 $35,010 517.00 - Debt Service Payments 70 - Debt Service $40,868,362 1 1 1 1 1 1 1 1 1 1 $40,868,362 519.00 - Other General Governmental Services 10 - Personnel Services $54,179,648 $7,795,577 $12,556,574 $74,531,799 30- Operating Expenditures/Expenses $24,571,820 $11,594,099 $7,409,600 $114,222,083 $1,073,838,632 $1,231,636,234 60 - Capital Outlay $4,273,066 $381,894 $3,094,978 $7,749,938 70 - Debt Service $926,197 $82,601 $40,523 $1,049,321 521.00 - Law Enforcement 10 - Personnel Services $181,414,923 $181,414,923 30 - Operating Expenditures/Expenses $43,519,333 $4,429,711 $510,310 $4,444,351 $484,252 $53,387,957 60-Capital Outlay $14,444,374 $113,276 $4,134,396 $18,692,046 70 - Debt Service $441,329 $32,965 $474,294 522.00 - Fire Control 10 - Personnel Services $47,226 1 1 1 1 1 1 1 1 1 1 1 1 $47,226 30 - Operating Expenditures/Expenses $3,663,156 $3,663,156 523.00 - Detention And/Or Correction 10 - Personnel Services $1,575,601 $1,575,601 r+ Q 4/2/2024 9:12:25 AM Packet Pg. 397 Annual Financial Report for Collier, 2023 13.A.a Expenditures General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units 30 - Operating $85,647 $359,285 Trust $444,932 Expenditures/Expenses 60 - Capital Outlay $706,019 $706,019 524.00 - Protective Inspections 10 - Personnel Services $18,600,043 $18,600,043 30 - Operating $8,595,413 $8,595,413 Expenditures/Expenses 525.00 - Emergency And Disaster Relief Services 10- Personnel Services $1,424,739 $261,233 $1,685,972 30 - Operating $920,385 $1,516,446 $3,884 $2,440,715 Expenditures/Expenses 60 - Capital Outlay $304,308 $304,308 70 - Debt Service $407,129 $407,129 526.00 - Ambulance And Rescue Services 30 - Operating Expenditures/Expenses $28,236 $9,374,879 $9,403,115 60 - Capital Outlay $45,193 $45,193 10 - Personnel Services $34,156,907 $34,156,907 70 - Debt Service $7,003 $7,003 527.00 - Medical Examiners 30 - Operating $2,062,008 $2,062,008 Expenditures/Expenses 529.00 - Other Public Safety 30 - Operating $493,328 $493,328 Expenditures/Expenses 533.00 -Water Utility Services 30 - Operating Expenditures/Expenses $171,574 $41,682,069 $41,853,643 10 - Personnel Services $16,845,617 $16,845,617 70 - Debt Service $10,992,446 $10,992,446 534.00 - Garbage/Solid Waste Control Services 10 - Personnel Services $4,924,895 $4,924,895 30- Operating $79,523,904 $79,523,904 Expenditures/Expenses 535.00 - Sewer/Wastewater Services 30- Operating Expenditures/Expenses $15,272,675 $47,645,313 $62,9179988 60 - Capital Outlay $9,285 $9,285 10 - Personnel Services $15,387,038 $15,387,038 70 - Debt Service $5,580 $5,580 536.00 - Water/Sewer Combination Services 10 - Personnel Services $21,144,949 $21,144,949 30 - Operating $33,710,656 $33,7109656 Expenditures/Expenses 70 - Debt Service $2,290 $2,290 537. 00 - Conservation And Q 4/2/2024 9:12:25 AM Packet Pg. 398 Annual Financial Report for Collier, 2023 13.A.a Expenditures General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units Resource Management Trust 10- Personnel Services $1,000,107 $4,915,108 $5,915,215 30-Operating Expenditures/Expenses $1,320,145 $2,538,512 $128,792 $37,566 $4,025,015 60 - Capital Outlay $4,736,669 $513,903 $5,250,572 538.00 - Flood Control/Stormwater Management 10- Personnel Services $2,567,714 $469,819 $3,037,533 30-Operating $3,127,545 $1,075,572 $931,567 $5,134,684 Expenditures/Expenses 60 - Capital Outlay $295,662 $7,977 $11,301,764 $11,605,403 70 - Debt Service $28,005 $28,005 539.00 - Other Physical Environment 30 - Operating Expenditures/Expenses $24,756 $4,683,929 $648,004 $200,645 $5,557,334 10- Personnel Services $1,184,792 $282,491 $1,467,283 60 - Capital Outlay $16,401,310 $3,412,715 $19,814.025 541.00 - Road And Street Facilities 10 - Personnel Services $600,035 $23,104,469 $23,704,504 30 - Operating Expenditures/Expenses $17,734 $24,864,104 $9,697,970 $34,579,808 60 - Capital Outlay $9,983,751 $76,231,546 $86,215,297 70 - Debt Service $73,574 $202,085 $275,659 542.00 - Airports 30 - Operating $82,018 $9,632,431 $9,714,449 Expenditures/Expenses 60 - Capital Outlay $54,705 $54,705 10 - Personnel Services $2,088,958 $2,088,958 70 - Debt Service $15,665 $15,665 544.00 - Mass Transit Systems 10 - Personnel Services $644,285 1 1 1 1 1 $644,285 30 - Operating $16,346,339 $16,346,339 Expenditures/Expenses 552.00 - Industry Development 30 - Operating $32,675 $32,675 Expenditures/Expenses 553.00 -Veteran's Services 10 - Personnel Services $370,990 1 1 1 1 1 1 1 1 1 1 $370,990 30 - Operating $38,165 $38,165 Expenditures/Expenses 554.00 - Housing And Urban Development 30-Operating Expenditures/Expenses $31,794,163 $10,175 $31,804,338 10 - Personnel Services $2,419,769 $2,419,769 559.00 - Other Economic Environment O Q O !C C <Q C LL fC 7 C C a C R LL U Q M N O N M tD O O Q d R C O C LL R 3 C C Q Cl) N O N C N E t V r to r+ Q 4/2/2024 9:12:25 AM Packet Pg. 399 Annual Financial Report for Collier, 2023 13.A.a Expenditures General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units 10 - Personnel Services $362,025 $733,573 Trust $1,095,598 30 - Operating Expenditures/Expenses $1,029,521 $5,951,539 $6,981,060 60 - Capital Outlay $63,210 $63,210 70 - Debt Service $21,500 $30,934 $52,434 562.00 - Health Services 30 - Operating Expenditures/Expenses $3,329,622 $484,258 $6,175 $3,820,055 10 - Personnel Services $2,787,843 $2,787,843 60 - Capital Outlay $948,216 $948,216 563.00 - Mental Health Services 30 - Operating Expenditures/Expenses $2,615,722 $2,615,722 564.00 - Public Assistance Services 10 - Personnel Services $1,276,351 $1,349,492 $2,625,843 30 - Operating Expenditures/Expenses $3,762,570 $9,136,315 $12,898,885 569.00 - Other Human Services 30 - Operating Expenditures/Expenses $25,584 $11,185 $36,769 10 - Personnel Services $259,893 $259,893 571.00 - Libraries 10 - Personnel Services $4,608,628 $47,787 $4,656,415 30-Operating Expenditures/Expenses $768,543 $588,250 $123,163 $1,479,956 60 - Capital Outlay $2,393 $793,062 $795,455 572.00 - Parks And Recreation 10- Personnel Services $9,697,435 $11,755,400 $21,452,835 30- Operating Expenditures/Expenses $8 479,575 $17,504,094 $3,790,419 $29,774,088 60-Capital Outlay $495,477 $1,944,134 $20,936,483 $23,376,094 70- Debt Service $98,283 $3,800 $102,083 573.00 - Cultural Services 10 - Personnel Services $1,544,235 $1,544,235 30-Operating Expenditures/Expenses $1,035,827 $174,153 $1,209,980 60 - Capital Outlay $12,713 $12,713 575.00 - Special Recreation Facilities 10 - Personnel Services $557,982 $557,982 30- Operating Expenditures/Expenses $3,444,175 $3,444,175 60 - Capital Outlay $95,341 $95,341 581.00 - Interfund Group Transfers Out 90- Other Uses $162,552,405 $37,440,009 $36,445 $36,530,633 $16,287,614 $190,000 $253,037,106 602.00 - State Attorney Administration 30 -Operating $740,419 $349,648 $1,090,067 M CO 00 N O Q d R C O C LL t4 3 C C Q Cl) N O N C O M C� r+ r+ Q 4/2/2024 9:12:25 AM Packet Pg. 400 Annual Financial Report for Collier, 2023 13.A.a Expenditures General Special Debt Capital Permanent Enterprise Internal Custodial Pension Investment Private Component Total Revenue Service Projects Service Trust Trust Purpose Units Expenditures/Expenses Trust 603.00 - Public Defender Administration 30 - Operating Expenditures/Expenses $381,125 $183,617 $564,742 605.00 - Judicial Support 30 - Operating $38,582 $2,443 $41,025 Expenditures/Expenses 682.00 - Alternative Dispute Resolution - Circuit Juvenile 10 - Personnel Services 1 $59,101 $59,101 30 - Operating $645 $645 Expenditures/Expenses 712.00 - Courthouse Facilities 10 - Personnel Services 1 $992,462 $992,462 30 - Operating $492,482 $492,482 Expenditures/Expenses 60 - Capital Outlay $12,162 $12,162 714.00 - Public Law Library 30 - Operating $93,500 $93,500 Expenditures/Expenses Total $556,014,772 $315,656,475 1$40,904,807 1$184,843,255 1 $37,566 1 $360,901,974 1$127,009,180 $1,078,282,983 1 $484,252 1 $60,210 $2,664,195,474 M O O N O sZ d R C R C LL R 3 C C Q Cl) N O N r-+ C tv E L t) to a 4/2/2024 9:12:25 AM Packet Pg. 401 Annual Financial Report for Collier, 2023 13.A.a AFFILIATE INFORMATION Collier County Airport Authority : Blended in Primary Report Total Assets: $60,130,360 Total Fund Balances: $55,447,605 Total Deferred Outflow: $328,695 Total Revenue: $10,342,097 Total Liabilities: $1,960,718 Total Expenditures: $12,147,655 Total Deferred Inflow: $3,050,732 Total Long -Term Debt: $0 Zero Construction Projects To Report Total Assets: $47,417 Total Deferred Outflow: $0 Total Liabilities: $0 Total Deferred Inflow: $0 Zero Construction Projects To Report Total Assets: $279,969 Total Deferred Outflow: $0 Collier County Health Facilities Authority : Discretely Reported Total Fund Balances: $47,417 Total Revenue: $0 Total Expenditures: $6,175 Total Long -Term Debt: $186,161,618 Collier County Housing Finance Authority : Discretely Reported Total Fund Balances: $279,969 Total Revenue: $3,725 r L 0 a a� c c U- CE c c Q c o: U- U Q M N O N M W 1* 00 N 0 a a� o: c U- c a M N O N r-+ C d E L a 4/2/2024 9:12:25 AM Packet Pg. 402 Annual Financial Report for Collier, 2023 13.A.a Total Liabilities: $0 Total Expenditures: $10,175 Total Deferred Inflow: $0 Total Long -Term Debt: $77,874,658 Zero Construction Projects To Report Total Assets: $91,038 Total Deferred Outflow: $0 Total Liabilities: $0 Total Deferred Inflow: $0 Zero Construction Projects To Report Collier County Industrial Development Authority : Discretely Reported Total Fund Balances: $91,038 Total Revenue: $0 Total Expenditures: $32,675 Total Long -Term Debt: $244,599,489 Collier County Water -Sewer District : Blended in Primary Report Total Assets: $1,438,900,986 Total Fund Balances: $1,032,359,763 Total Deferred Outflow: $10,544,558 Total Revenue: $254,697,614 Total Liabilities: $408,442,847 Total Expenditures: $202,364,886 Total Deferred Inflow: $8,642,934 Total Long -Term Debt: $326,100,943 Construction Projects Expenditure Approved Budget Collections Operating TSP $332,649 $9,675,008 4/2/2024 9:12:25 AM Packet Pg. 403 Annual Financial Report for Collier, 2023 13.A.a Construction Projects Expenditure Approved Budget Fac Infrastructure Maint Wastewater $106,295 $287,367 GGC Transmission Water Main Improvments $1,161,769 $26,295,639 Golden Gate City Compliance Assurance $609,582 $1,095,117 Golden Gate City WWTP Expansion $666,748 $72,321,237 Goodland PS Improvement $319,238 $782,139 Naples Park Area Basin $844,131 $22,969,759 NCWRF Electrical Service Upgrade $185,030 $521,153 New NCWRF Headworks $1,258,150 $32,851,179 Palm River Public Utility $4,142,995 $22,841,732 See AFR for Goodland Water District Goodland Water District: Not a Component Unit Collier County Educational Facilities Authority: Discretely Reported Total Assets: $65,652 Total Fund Balances: $65,652 Total Deferred Outflow: $0 Total Revenue: $65,000 Total Liabilities: $0 Total Expenditures: $11,185 Total Deferred Inflow: $0 Total Long -Term Debt: $9,960,176 Zero Construction Projects To Report Total Assets: $17,666,073 Total Deferred Outflow: $0 Total Liabilities: $185,353 Collier County Community Redevelopment Agency: Blended in Primary Report Total Fund Balances: $17,480,720 Total Revenue: $6,045,757 Total Expenditures: $1,815,092 a 4/2/2024 9:12:25 AM Packet Pg. 404Jl Annual Financial Report for Collier, 2023 13.A.a Total Deferred Inflow: $0 Zero Construction Projects To Report Total Assets: $107,564 Total Deferred Outflow: $0 Total Liabilities: $68,613 Total Deferred Inflow: $0 Total Long -Term Debt: $0 Collier County Metropolitan Planning Organization: Blended in Primary Report Other Entities are not required to report supplemental information. Total Fund Balances: $38,951 Total Revenue: $721,902 Total Expenditures: $540,009 Total Long -Term Debt: $0 4/2/2024 9:12:25 AM Packet Pg. 405 Jl Collier County, Florida Annual Comprehensive Financial Report a , for J � *M i k On the cover. Governor Hardee signing the bill establishing Collier County on May 8, 1923. Please visit colliercountyl 00. com for more information about Collier County's Centennial celebration. C ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2023 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS RICK LOCASTRO, CHAIRMAN- DISTRICT 1 CHRIS HALL, VICE-CHAIRMAN - DISTRICT 2 BURT L. SAUNDERS, ESQ. - DISTRICT 3 DAN KOWAL - DISTRICT 4 WILLIAM L. MCDANIEL, JR. - DISTRICT 5 COUNTY MANAGER AMY PATTERSON COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER CRYSTAL K. KINZEL DIRECTOR OF FINANCE AND ACCOUNTING DEREK M. JOHNSSEN, CPA Prepared by the Office of the Clerk of the Circuit Court and Comptroller, Finance and Accounting Department COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 INTRODUCTORY SECTION TransmittalLetter......................................................................................................................................................................... i Certificateof Achievement......................................................................................................................................................... vi OrganizationalChart.................................................................................................................................................................viii FINANCIAL SECTION IndependentAuditors' Report..................................................................................................................................................... 1 Management's Discussion and Analysis (Unaudited).................................................................................................................. 4 Basic Financial Statements Statementof Net Position..................................................................................................................................................... 16 Statementof Activities.......................................................................................................................................................... 18 Balance Sheet — Governmental Funds.................................................................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................ 21 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ............................................. 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Net Activities............................................................................................................................... 23 General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis).................................................................................................................................................................. 24 Bayshore Gateway Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).......................................................................................................... 27 Immokalee Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis)................................................................................................................. 28 Grants and Shared Revenue - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget andActual (Budgetary Basis)................................................................................................................................................ 29 Hurricane Ian - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).................................................................................................................................................................. 30 Statement of Net Position — Proprietary Funds..................................................................................................................... 31 Statement of Revenues, Expenses and Changes in Fund Net Position — Proprietary Funds .................................................. 33 Statement of Cash Flows — Proprietary Funds...................................................................................................................... 34 Statement of Fiduciary Net Position...................................................................................................................................... 36 Notes to the Financial Statements........................................................................................................................................ 39 Required Supplementary Information Schedule of the County's Proportionate Share of the Net Pension Liability - Florida Retirement System Pension Plan......... 88 Schedule of County Contributions - Florida Retirement System Pension Plan....................................................................... 88 Schedule of the County's Proportionate Share of the Net Pension Liability - Retiree Health Insurance Subsidy Program...... 88 Schedule of County Contributions - Retiree Health Insurance Subsidy Program................................................................... 88 Schedule of Changes in the Collier County Total OPEB Liability and Related Ratios.............................................................. 90 Combining and Individual Fund Financial Statements and Other Supplemental Information................................................... 91 Nonmajor Governmental Funds CombiningBalance Sheet..................................................................................................................................................... 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................................. 104 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) ........... 112 COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Financial Statements and Other Supplemental Information (Continued) Nonmajor Enterprise Funds CombiningStatement of Net Position................................................................................................................................. 138 Combining Statement of Revenues, Expenses and Changes in Fund Net Position.............................................................. 139 Combining Statement of Cash Flows.................................................................................................................................. 140 Internal Service Funds Combining Statement of Net Position................................................................................................................................. 142 Combining Statement of Revenues, Expenses and Changes in Net Position....................................................................... 143 Combining Statement of Cash Flows.................................................................................................................................. 144 Fiduciary Funds Combining Statement of Fiduciary Net Position - Custodial Funds..................................................................................... 148 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds................................................................... 149 Component Units Combining Statement of Net Position................................................................................................................................. 152 CombiningStatement of Activities...................................................................................................................................... 153 Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ............................................. 156 STATISTICAL SECTION NetPosition by Component..................................................................................................................................................... 160 Changein Net Position............................................................................................................................................................ 162 Governmental Activities Tax Revenues by Source.................................................................................................................... 164 FundBalances of Governmental Funds................................................................................................................................... 165 Changes in Fund Balances of Governmental Funds................................................................................................................. 166 Assessed Value and Estimated Actual Value of Taxable Property........................................................................................... 168 Property Tax Rates — All Direct and Overlapping Governments................................................................................................ 170 PrincipalTaxpayers County-Wide............................................................................................................................................. 171 Property Tax Levies and Collections........................................................................................................................................ 172 Ratiosof Outstanding Debt by Type......................................................................................................................................... 173 Direct, Overlapping and Underlapping Governmental Activities Debt....................................................................................... 174 Pledged -Revenue Coverage..................................................................................................................................................... 175 Demographicand Economic Statistics.................................................................................................................................... 176 PrincipalEmployers................................................................................................................................................................. 177 Budgeted Full -Time Equivalent County Employees by Function............................................................................................... 178 OperatingIndicators by Function............................................................................................................................................. 179 Capital Asset Statistics by Function......................................................................................................................................... 180 COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Independent Auditors' Report on Internal Control Over Financial Reporting and Compliance .................................................. 183 Independent Auditors' Report on Compliance for Each Major Federal Program and State Project ........................................... 185 Schedule of Expenditures of Federal Awards and State Financial Assistance......................................................................... 189 Notes to the Schedule of Expenditures of Federal Awards....................................................................................................... 195 Schedule of Findings and Questioned Costs............................................................................................................................ 197 CorrectiveAction Plan.............................................................................................................................................................. 203 MANAGEMENT LETTER ManagementLetter.................................................................................................................................................................. 205 ANNUAL DEBT REPORT CLERK OF THE CIRCUIT COURT AND COMPTROLLER PROPERTY APPRAISER SHERIFF SUPERVISOR OF ELECTIONS TAX COLLECTOR INTRODUCTORY -- , SECTION u- I � ZV rl. -� - AL- r � t �O er aunty Crystal I . Kinzel Collier Wunty Clerk of the Circuit Court and Comptroller 3315 Tarnlami rrail East, Suite 102 Naples, Florida 3411 -5324 April 9, 2024 To the Citizens and Members of the Board of County Commissioners, Collier County, Florida: It is with pleasure that we present to you, the citizens of Collier County and members of the Board of County Commissioners, the Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023. This report was prepared by the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller as part of the Clerk's legally prescribed duties. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the information presented herein is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of County operations. The Clerk of the Circuit Court and Comptroller's Finance and Accounting Department, as well as County management, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements and maintaining accountability of assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. Chapter 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counties in the State. State law requires the County to submit a complete set of financial statements within forty-five days after the issuance of the audit report (but no later than nine months after the fiscal year end) presented in accordance with accounting principles generally accepted in the United States. For the fiscal year ended September 30, 2023, the independent auditor, CliftonLarsonAllen LLP, issued an unmodified ("clean") opinion on the financial statements. Their report is included in the Financial Section of this report. In addition to meeting the requirements set forth in State statutes, the audit was also designed to meet the requirements of the Government Auditing Standards, the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the Rules of the Auditor General, Chapter 10.550 Local Governmental Entity Audits. Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and the two should be read in concert. Collier County's MD&A can be found in the Financial Section immediately following the independent auditors' report. PROFILE OF THE GOVERNMENT Collier County is a Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and comprises five members elected in the five different Commission districts of the County. The Board of County Commissioners appoints a county manager to carry out policies and oversee the county's day to day operations. In addition to the County Commissioners, voters elect the following five constitutional officers on a Countywide basis: the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. Phone- (239) 252-2646 Fax- (239) 252-2755 Website-.www.CollierClerk.com Email- CollierClerk(@collierclerk.com The County provides its citizens with a wide range of services that include tax assessment and collections, law enforcement, emergency management, fire and emergency medical services, animal services, library, museum and cultural services, parks and recreation operations, road maintenance and construction, economic development and social and human services. Additionally, the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, a landfill gas to energy facility, three airports, a transit system and an amateur sports complex. The fiscal year for county government begins October 1 and ends September 30. Budgets are prepared annually and formal budgetary integration is employed as a management control throughout the year. The level of budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is established at the departmental level for personal services, operating expenditures and non -project related capital outlay separately. Debt service and transfers are controlled at the fund level and capital projects and grants are controlled at the individual project or grant level. All governmental funds adopted annual budgets for fiscal year 2023. The Board of County Commissioners conducts budget workshops during June of each year and a proposed budget is released in July. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to State statute. Two public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state's second largest county, is on the southwest coast of Florida, directly west of Miami. With a 2023 population of 399,480 (an 18.6 percent increase over the last ten years), Collier County is one of the fastest growing counties in the state over the last ten years. The resident population includes Unincorporated County (pop. 363,600) and three municipalities: the Cities of Naples (pop. 19,306), Marco Island (pop. 16,198) and Everglades (pop. 376). The County's economic base is a diverse mix concentrated in tourism, agriculture, fishing, construction, ranching and forestry with a growing services economy and an active technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. The County's manufacturing base continues to grow and is led by companies providing products varying from surgical and medical instruments, kitchen cabinets and countertops to aircraft engines and parts. Recently, the area has become particularly attractive to logistical and warehousing service providers, with Amazon and Uline opening new distribution centers. Sports tourism is a growing segment of Collier's economy. The Minto United States Open Pickleball Championship continues to expand and generally attracts national and international participation. The Paradise Coast Sports Complex is a multipurpose entertainment facility situated near 1-75 and Collier Boulevard. At completion, the Complex will contain twenty-one multipurpose fields, an outdoor fitness center, a food truck pavilion and a championship stadium. The first phase of the facility opened in October of 2020 and final completion is expected in early 2024. The Complex is designed to attract national tournaments, while at the same time providing additional fields needed for local field play for sports such as soccer and baseball. Construction of a Great Wolf Lodge, located adjacent to the Paradise Sports Complex, began in the Summer of 2022. This will be the brand's 21'Y resort in North America and will feature 500 family -friendly suites and a sprawling 100,000 square -foot indoor water park. The project received $15M in future tax increment incentives from Collier County. The grand opening of Great Wolf Lodge is expected to be October 1, 2024. To further promote economic growth, diversify the economy and encourage high -wage job creation, the Board of County Commissioners has created Economic Innovation Zones. The Ave Maria Innovation Zone, the Interchange Activity Center No. 9 Innovation Zone and the Golden Gate City Economic Development Zone were created to provide specific geographic areas a dedicated source of economic development funding through tax increment revenues. Flexible zoning overlays that will allow for reduced developmental timeframes for qualified target industry uses within the Zones are in process. Taxable property market valuation for fiscal year 2023 totaled $134.6 billion, a very high $336,815 per capita. The County's millage for General Fund operations in fiscal year 2023 remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Unemployment levels in recent years approximate, or are slightly below, the statewide average. The 2023 annual County unemployment rate stood at 3.3%, which is slightly higher than the statewide average of 3.0%. Income levels are high, with a per capita personal income of $130,672. LONG TERM FINANCIAL PLANNING Each Florida local government must prepare a comprehensive plan for managing growth, providing vital services and protecting the environment. In Collier, several annual processes take place which influence long range planning and the development of the budget. Each year the County performs a three-year budget projection of primary ad valorem supported funds (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior to developing budget policy. In addition, there are several annual long range planning processes such as the Capital Improvement Element (CIE), the Annual Update and Inventory Report (AUIR), the Long Range Transportation Plan, the Water and Wastewater Master Plans, the Master Mobility Plan and concurrency planning. The County is required to prepare and present to the Board of County Commissioners an Annual Update and Inventory Report (AUIR) and adopt a five-year Capital Improvement Element (CIE). Both of these processes focus on the schedule of capital improvements for the County. The AUIR is an annual status report on public facilities and the CIE is a planning document that identifies public facilities that will be required during the next five or more years. The Capital Improvement Element is the foundation of Collier County's annual Capital Improvement Program (CIP). The amount planned for CIP projects in fiscal years 2024-2028 is $1.6 billion. Included in the County's current CIP for fiscal years 2024-2028 are approximately $520.7 million in water and wastewater projects, $681.0 million in transportation projects, $215.4 million in stormwater projects and $61.1 million in government facilities projects. In addition, parks and recreation projects of approximately $56.3 million are planned, as well as $49.0 million for tourist development funded projects, $27.7 million in solid waste projects, $14.3 million in public safety projects and miscellaneous projects totaling $11.6 million. Approximately $700.0 million of the fiscal year 2024-2028 Capital Improvement Program is currently planned to be funded by bond or loan proceeds and $525.2 million is planned to be funded by water and wastewater user fees. The remainder will be funded by a mixture of infrastructure sales tax, impact fees, gas taxes and tourist taxes. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as a funding source in the following year, maintaining General Fund budgeted reserves between 8% and 16% of operating revenues and Unincorporated Area General Fund budgeted reserves of at least 2.5% of operating expenditures. Additional policies include the assessment of impact fees at such levels as allowed by law and supported by studies, prioritizing gas taxes for payment of debt service on the 2014 Gas Tax Revenue and Refunding Bond (Direct Placement Loan), and the establishment of a longterm capital reserve funded in annual amounts of up to $5 million to protect the County's general governmental infrastructure. For enterprise operations such as the Water and Sewer District and Solid and Hazardous Waste Management, that do not receive support from general government sources, budgeted reserves are targeted to a range of forty-five to ninety days of operating expenditures. Debt administration policies include the limitation of the debt repayment period to the useful life of the underlying assets and the establishment of a 5% benchmark for net present value savings generated by refinancing. Lesser net present value savings may be considered on a case -by -case basis. Consistent with Collier County's Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized debt will be refinanced. In addition, the debt policy establishes a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13%. The Clerk of the Circuit Court and Comptroller's Finance and Accounting Department monitors the daily cash needs of the County and invests the County's funds in accordance with the Collier County Investment Policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund (Florida PRIME), other intergovernmental pools, U.S. Treasury securities, U.S. agency securities, commercial paper, corporate bonds and bankers' acceptances. The par weighted average maturity of the total managed portfolio, to first call or maturity, was .82 years as of September 30, 2023. The total return for fiscal year 2023 was 3.92%, the result of taking advantage of favorable short term interest rates and the recovery of a portion of the unrealized losses recognized during fiscal year 2022. Investment income of $49.2 million was realized during fiscal year 2023. Changes in the fair value of investments are recorded as part of interest earnings when presented in the financial statements. MAJOR INITIATIVES While the County is currently focused on many initiatives, some of the most significant include the following: • Development of the Golden Gate Golf Course property, workforce and first responder housing and mental health initiatives • Upgrades to Information Technology infrastructure and the County's various management, financial and accounting software • Completion of the construction, and operation, of the Big Corkscrew Regional Park and the Paradise Coast Sports Complex • Hardening County facilities in preparation for natural disasters • The extension of Vanderbilt Beach Road • Enhancements in storm -water capital infrastructure and maintenance service levels • Construction of utility infrastructure in the County Water and Sewer District's northeast service area and the Golden Gate Utility service area • Construction of the public utility renewal program in Naples Park, Palm River and Old Lely GFOA Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2022. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report whose contents conform to program standards. The Annual Comprehensive Financial Report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past thirty-seven years, from fiscal year 1986 to 2022. We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2022. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the last thirty-seven consecutive years. The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court and Comptroller for its annual budget for the fiscal year beginning October 1, 2022. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. The Clerk's Office has received this award for the last twenty-one consecutive years. Popular Annual Financial Reporting Award Program: The Government Finance Officers Association of the United States and Canada (GFOA) awarded an Outstanding Achievement in Popular Annual Financial Reporting award to Collier County, Florida for its Dollars and Sense report for the fiscal year ended September 30, 2022. The Outstanding Achievement award is a national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. iv In order to be awarded an Outstanding Achievement award, a government unit must publish a report that presents information from their Annual Comprehensive Financial Report in a format that is specifically designed to be readily accessible and easily understandable to the general public without a background in public finance. An Outstanding Achievement award is valid for a period of one year only. Collier County has received this award for the past two years. We believe our current report conforms to the Popular Annual Financial Reporting program requirements, and we are submitting it to the GFOA for consideration for an award again this year. ACKNOWLEDGEMENTS The preparation and publication of this Annual Comprehensive Financial Report represents a significant effort by the Finance and Accounting Department as well as numerous County personnel who contribute to its production. In particular, we would like to express our appreciation to Suzanne Boothby, Grants Manager, Leslie Miller, Operations Manager and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to CliftonLarsonAllen, the Board of County Commissioners, the Constitutional Officers, the County Manager, Deputy County Managers, Department Heads and the Division Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Derek M. Johnssen, Director of Finance and Accounting, at 239.252.7863. Respectfully, Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Derek M. Johnssen, CPA Deputy Clerk, Director of Finance and Accounting Kew. )ag"- O Kelly Jones, CGFO Deputy Clerk, Assistant Director of Finance and Accounting v Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its annual comprehensive financial report for the fiscal year ended September 30, 2022. This was the thirty-seventh consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. w Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Collier County Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2022 Executive Director/CEO Residents Sheriff Property Appraiser Tax Collector Board County Clerk of the Circuit Courts Supervisor of Elections Judicial Courts & Judges Kevin Rambosk Abe Skinner Rob Stoneburner Commi sioners Crystal K. Kinzel Melissa Blazier Charles Rice (239)774-4434 (239)252-8141 (239)252-8171 (239)2 2-8097 (239)252-2646 (239)252-8683 (239)252-2646 County Manager Operations Community Ri development Ar as Fleet Ma agement Pelican B Services To ism County Attorney Jeffrey Klatzkow (239)252-8400 Deputy County Ma Daniel Rodrigu (239) 252-8,38 Public Services Tanya Williams Interim Public Utilities Dr. G. George Yilmaz Communit Sen i &Human ices Operatio sSupport Domestic An mal Services Engineerin Mana & Project ment Departmer t of Health Solid & Haza ManaE dous Waste ement Libr ries Sub-Regio al Utilities Mus ums Wast water Operations Se & Veteran ices W er Parks & R creation University Ext nsion Service Rick LoCastro, Distri t 1 - (239) 252-8601 Chris Hall, District 2 - (239) 252-8602 Burt Saunders, Distri t3—(239)252-8603 Dan Kowal, District 4 — (239) 252-8604 William L. McDaniel, Jr, I istrict 5 — (239) 252-8605 County Manager Amy Patterson (239)252-8383 Communications, G vernment&Public Affairs Joh i Mullins Corporate Compliance & Continuous Improvement Meg n Gaillard Corporate Compl ance& Internal Review Mich el Nieman Public Safety Michael Choate Corporate Business Operations Kenneth Kovensky Hum n Resources Informs ion Tech nology Procur ment Services Risk Management 1 rr Oom-nty Eme envy Management Emergency Medical Services Management Services Chris Johnson Facilities Management John McCormick Chief Hearing Examiner Andrew W.J. Dickman (239) 252-4446 County Manager ,d Finn Interim 9)252-8383 Growth Management Transportation Community Development Management Services James French Interim Trinity Scott Interim Building Pla i Review & Capital Project Planning & Inspe tion Impact Fees Code Enf rcement Fiscal & Grant Services Community Planning & Operations & Resili ncy Performance Mgmt Developm nt Review Public Transit& Neighborhood Enhancement Economic De ielopment & Hou ing Road Maintenance 7-- Operations& Regulatory Transpi rtation Management Enein erine CAIIL 1. i� FINANCIAL SECTION a 1 IF —. F"7—M:�M I �O er aunty CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (the County), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County, as of September 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1 to the financial statements, effective October 1, 2022 the County adopted GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This standard requires governments to recognize a right -to -use subscription -based information technology arrangement asset and corresponding subscription -based information technology arrangement liability for all arrangements with terms greater than twelve months. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. Set CLAelobal.com/disclaimer Honorable Board of County Commissioners Collier County, Florida Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the schedules of the County's proportionate share of the net pension liability and of County contributions, and the schedules of other postemployment benefits, total OPEB liability, and related ratios for the retiree health plans be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Honorable Board of County Commissioners Collier County, Florida Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The combining and individual nonmajor fund financial statements, and schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Rules of the Auditor General for Local Governmental Entity Audits, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements, and schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Rules of the Auditor General for Local Governmental Entity Audits are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2024, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida March 25, 2024 3 MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the County's financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30, 2023. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i-v of this report. Financial Highlights • Collier County's assets and deferred outflows exceeded its liabilities and deferred inflows as of September 30, 2023 by $3,862,793,312. Of this amount, $395,828,639 represents unrestricted net position and may be used to meet future County obligations. Unrestricted net position increased by $67,797,655 from the previous year. • The County's total net position increased by $323,192,513 when compared to fiscal year 2022, with a $257,068,114 increase from governmental activities and a $66,124,399 increase resulting from business -type activities. • As of September 30, 2023, Collier County's governmental fund financial statements showed combined ending fund balances of $1,334,763,849, an increase of $194,296,345 over the previous fiscal year. Of the total combined ending governmental fund balance, $107,725,156 is reported as unassigned. • The General Fund reported an unassigned fund balance of $129,009,839 at September 30, 2023, an increase in unassigned General Fund balance of $14,460,738 when compared to September 30, 2022. • The County's proportionate share of the Florida Retirement System's defined pension benefit and health insurance subsidy net pension liabilities was $448,920,803 as of September 30, 2023, an increase of $83,360,154 from the previous year. • Total bonded debt, notes, outstanding loans, leases and subscription based IT arrangements (SBITA) owed by Collier County decreased by $43,880,293 during fiscal year 2023, with a decrease in governmental activities debt of $22,898,362 and a decrease in business -type activities debt of $20,981,931. Additional information on debt activity can be found in Note 7 to the financial statements beginning on page 60. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County's basic financial statements. Collier County's basic financial statements include government -wide and fund financial statements, as well as notes to the basic financial statements. Government -Wide Financial Statements Government -wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 19 of this report. The Statement of Net Position shows the financial position of Collier County as of September 30, 2023. The statement shows the County's assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the difference being reported as net position. Changes in net position are useful indicators of financial condition. The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal period. All changes in net position are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or certain unused leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business -type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business -type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds Governmental funds, presented on pages 20 to 30, account for substantially the same functions as governmental activities reported under the government -wide Statement of Net Position and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government's near term financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government -wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County's statements include six major funds, the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies, Grants and Shared Revenue Fund, Hurricane Ian and the Infrastructure Sales Tax fund. There are many smaller governmental funds under Collier County management and they are aggregated in a total column named "other governmental funds". Combining statements for these other governmental funds have been presented elsewhere in this report. Collier County adopts an annual budget as described in Note 1 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with this budget. Budgetary comparison schedules for the Infrastructure Sales Tax capital project major fund and non -major governmental funds required to adopt an annual budget are presented in the combining statements presented elsewhere in this report. Proprietary funds Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on pages 31 to 35 of this report. Enterprise funds report, with more detail, the same functions presented as business -type activities in the government -wide financial statements for water and sewer, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund, the Solid Waste Disposal Fund and the Emergency Medical Services Fund are presented individually as major funds. Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker's compensation insurance, property and casualty insurance, fleet operations and information technology. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government. These funds are not presented in the government -wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds begin on page 36 of this report. The County uses a private purpose trust fund for the Sheriff's employee flexible spending account. The County also uses custodial funds to report amounts that the government has custody of, but does not have control over the use of the funds. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government -wide and fund financial statements. The notes appear on pages 39 to 85 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 93. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net position for enterprise funds. Also included are combining financial statements for internal service and custodial funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical section of this report. The Statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. Government -Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. Assets and deferred outflows exceed liabilities and deferred inflows by $3,862,793,312 as of the fiscal year ending September 30, 2023 for Collier County. Positive balances were reported in all categories of net position in the governmental and business -type activities for fiscal year 2023. Collier County's net position at September 30, 2023 increased by $67,797,655 for unrestricted net position and increased $147,779,830 for restricted net position. Restricted net position consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to meet the County's ongoing obligations. Increases in restricted net position were mainly due to a $72,467,869 increase in restricted net position related to Infrastructure Sales Tax capital projects and a $25,551,499 increase in restricted net position related to Conservation Collier. The increase in unrestricted net position was mainly due to the 16.7% increase in county -wide taxable value and sales tax collected. Collier County's investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 64.4% of net position as of September 30, 2023, compared to 67.2% as of September 30, 2022. During fiscal year 2023, the County's net investment in capital assets increased by $107,615,028, but decreased as a proportion of total net position due to the overall increase in combined restricted and unrestricted net position discussed above. Capital assets provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets. The following are Collier County's net position and changes in net position for the fiscal years ended September 30, 2022 and 2023, shown in condensed form: Current and other assets Capital assets, net Total assets Deferred outflows of resources Long-term liabilities Current liabilities Total liabilities Deferred inflows of resources Net position: Net investment in capital assets Restricted Unrestricted Total net position Collier County's Schedule of Net Position (in millions) Total Business -type Percentage Governmental Activities Activities Total Change 2023 2022 2023 2022 2023 2022 2022-2023 $ 1,575.7 $ 1,377.4 $ 581.2 $ 532.9 $ 2,156.9 $ 1,910.3 12.9% 1,938.7 1,856.7 1,099.1 1,076.5 3,037.8 2,933.2 3.6% 3,514.4 3,234.1 1,680.3 1,609.4 5,194.7 4,843.5 7.3% 109.8 101.4 21.9 20.9 131.7 122.3 7.6% 777.9 729.1 411.9 418.9 1,189.8 1,148.0 3.6% 180.3 1926.51.8 45.9 232.1 238.5 (2.7)% 958.2 921.7 463.7 464.8 1,421.9 1,386.5 2.6% 29.0 33.9 12.7 5.8 41.7 39.7 5.1% 1,604.9 1,509.2 882.9 871.0 2,487.8 2,380.2 4.5% 932.5 782.8 46.7 48.5 979.2 831.3 17.8% 99.6 87.9 296.2 240.2 395.8 328.1 20.6% $ 2,637.0 $ 2,379.9 $ 1,225.8 $ 1,159.7 $ 3,862.8 $ 3,539.6 9.1% Collier County's Schedule of Changes in Net Position (in millions) Total Percentage Governmental Activities Business -type Activities Total Change 2023 2022 2023 2022 2023 2022 2022-2023 Revenues Program revenues: Fines, fees and charges for services $ 83.7 $ 88.0 $ 283.6 $ 266.9 $ 367.3 $ 354.9 3.5% Operating grants and contributions 73.7 79.2 42.5 8.2 116.2 87.4 32.9% Capital grants and contributions 52.1 132.7 47.8 48.2 99.9 180.9 (44.8)% General revenues: Property taxes 518.9 447.9 - - 518.9 447.9 15.8% Other taxes and shared revenues 287.8 281.5 - 287.8 281.5 2.2% Interest earnings 62.1 (55.9) 21.6 (22.9) 83.7 (78.8) (206.2)% Miscellaneous 18.9 7.9 1.2 0.2 20.1 8.1 148.9% Total revenues 1,097.2 981.3 396.7 300.6 1,493.9 1,281.9 16.5% Expenses General government 179.6 139.0 - - 179.6 139.0 29.2% Public safety 330.0 274.3 330.0 274.3 20.3% Physical environment 47.9 30.3 47.9 30.3 58.0% Transportation 97.6 94.1 97.6 94.1 3.7% Economic environment 43.4 41.4 43.4 41.4 4.9% Human services 26.4 25.3 26.4 25.3 4.3% Culture and recreation 86.6 70.8 86.6 70.8 22.3% Interest on long-term debt 10.3 10.8 - - 10.3 10.8 (4.6)% Water and sewer - - 190.6 175.8 190.6 175.8 8.4% Solid waste 85.5 51.1 85.5 51.1 67.4% Emergency medical services 43.8 41.6 43.8 41.6 5.3% Airport authority 11.8 11.6 11.8 11.6 1.3% Mass transit - - 17.2 14.8 17.2 14.8 16.5% Total expenses 821.8 686.0 348.9 294.9 1,170.7 980.9 19.3% Increase in net position before net transfers 275.4 295.3 47.8 5.7 323.2 301.0 7.4% Transfers, net (18.3) (15.7) 18.3 15.7 - 0.0 0.0% Change in net position 257.1 279.6 66.1 21.4 323.2 301.0 7.4% Net position - beginning 2,379.9 2,100.3 1,159.7 1,138.3 3,539.6 3,238.6 9.3% Net position - ending $ 2,637.0 $ 2,379.9 $ 1,225.8 $ 1,159.7 $ 3,862.8 $ 3,539.6 9.1% Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically by function. General revenues, such as property taxes, must be used to the extent that the fees, fines, grants and contributions do not cover the cost of the governmental function. Public safety is the largest category of expenses followed by general government. 400 300 a 200 0� Revenues and Expenses Governmental Activities Fiscal Year 2023 100 0 ■ ■ _■ ■ ■■ _■ . General Public Safety Physical Transportation Economic Human Culture and Government Environment Environment Services Recreation • Revenues 0 Expenses Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by infrastructure sales tax. Revenue by Type Governmental Activities Fiscal Year 2023 Infrastructure sales tax: 12.0% miscellaneous revenue: 4.S Tourist Taxes: 4.3% Sales Taxes: 6.7% Gas Taxes: 2.4% Capital Grants and Contributions: 5.0% Operating Grants ar Contributions: 7.1 % Fines, Fees and Gnaryes for Services: 8.1% Property Taxes: 50.1% Revenues and expenses are shown by business -type activity. The Water and Sewer system is the largest business -type activity followed by the Solid Waste system. Revenues and Expenses Business -type Activities Fiscal Year 2023 250 200 150 c 0 100 50 0 ■ �� �- Water and Sewer Solid Waste Emergency Medical Airport Authority Mass Transit Services Revenues 0 Expenses Revenues for business -type activities are shown graphically by type. The largest type of revenue is fines, fees and charges for services followed by capital grants and contributions. Revenue by Type Business -type Activities Fiscal Year 2023 Other Income: 0.4% Capital Grants and Contributions: 12.7% Operating Grants and Contributions: 11.3% Fines, Fees and Charges for Services: 75.6% 0j Governmental Activities The current year increase in the net position of governmental activities amounted to $257,068,114, an increase of 10.8% when compared to the previous year's net position. The previous fiscal years' increase in net position was 13.3%. The current years' increase is mainly due to the following: Overall, revenues related to governmental activities increased by 11.8%, or $115,865,741 while expenses increased by 19.8%, or $135,911,011. Interest earnings increased as market interest rates continued their rise and a portion of the unrealized loss recognized in fiscal year 2022 was recovered during fiscal year 2023. Governmental activities revenues increased primarily due to the increase in interest earnings of $74,834,753 over the prior fiscal year. Also contributing to the increase was an increase in total ad valorem taxes collected in fiscal year 2023, when compared to fiscal year 2022, of $70,975,923. The increase in ad valorem revenues was due to a 16.7% increase in county wide taxable value. In addition, the 1 % Infrastructure Sales Tax increased $4,187,385 from the prior fiscal year, sales tax increased $3,703,476 and tourist taxes decreased $3,362,532 as the County continues to recover after Hurricane Ian. Public safety expenses increased by $55,779,411 largely due to an increase in personal services as a result of a pay plan increase in the current fiscal year as well as an increase in pension costs. In addition, general government expenses increased by $40,637,853 or 29.2% and physical environment expenses increased by $17,590,909 or 58.0% also as a result of the pay plan increases and an increase in pension costs. Interest expense decreased 4.6% over fiscal year 2022, primarily due to the final maturity of the Series 2012 Gas Tax Refunding Bonds and the decrease in interest due to the continued amortization of the existing debt. These issues are discussed in more detail in the notes to these financial statements. Business -type Activities The increase in net position related to business -type activities amounted to $66,124,399 in the aggregate, representing a 5.7% increase over the previous year's net position. The previous fiscal year's increase in net position was 1.9%. The current year's increase is mainly due to the following: • The Collier County Water and Sewer District (District) saw an increase of $52,332,728 in net position. The increase in the District's net position is largely due to a phased user fee rate increase of 5.0% in October 2022 and a 7.1 % mid -year increase in July 2023. In addition, the District had $42,318,853 of water and sewer capital grants and contributions, the majority of which is related to developer water and wastewater infrastructure contributions. • Solid Waste Disposal experienced an increase of $5,734,086 in net position. This increase is primarily due to a 3.2% rate increase, offset by a $23,297,783 increase in operating grants and contributions and a $32,132,887 increase in operating expenses primarily as a result of Hurricane Ian. • Emergency Medical Services saw an increase of $13,546,750 in net position. This increase is directly related to the $13,195,983 increase in operating grants and contributions from the Coronavirus Local Fiscal Recovery Funds. Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Permanent Funds, Debt Service Funds and Capital Project Funds. As of September 30, 2023, Collier County governmental funds reported combined fund balances of $1,334,763,849, an increase of $194,296,345 when compared to prior year combined fund balances. The governmental funds had non -spendable fund balances of $12,387,130 consisting of inventory, prepaid items, notes receivable, endowments and advances to other funds. The restricted fund balance was $964,642,344 and consists of monies whose expenditure is externally constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $357,734,375 in fund balance,$58,730,435 is classified as committed, $191,278,784 is recorded as assigned and $107,725,156 is recorded as unassigned. 10 The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2023 The General Fund is the primary operating fund of Collier County. At September 30, 2023, total fund balance in the General Fund was $163,567,506, of which $129,009,839 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 24.1 %. The total fund balance increased by $6,890,075 or 4.4%, compared to the September 30, 2022 total fund balance. The General Fund's total fund balance increased due to increased Ad Valorem Tax collections of $55,719,547. This increase was directly related to a 16.7% increase in county wide taxable value. There was also an $18.0 million increase in interest revenue as a result of increased market rates of interest and the partial recovery of unrealized losses recognized in fiscal year 2022. The increases in revenue were offset by a 9.7% increase in current expenditures primarily as a result of an 8.0% increase in salaries as part of the implementation of the County's comprehensive compensation plan. The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle community. During fiscal year 2023, the Bayshore Gateway Community Redevelopment Agency collected $3,348,900 in tax increment revenues, an increase of $665,600 from fiscal year 2022. This increase is due to the increase in taxable property values within the geographic boundary of the agency. In addition, the Agency received $39,500 in fine revenue related to a redevelopment project and $420,574 in interest earnings. Operating expenditures of $1,132,855, mainly consisting of personal services and planning and consulting services within the district. • The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2023, the Immokalee Community Redevelopment Agency collected $1,207,800 in tax increment revenues, an increase of $200,800 from the previous fiscal year. This increase is due to the increase in taxable property values within the geographic boundary of the agency. In addition, the Agency received $3,761 in impact fees, $110,006 in interest earnings and $455 in miscellaneous revenue. Operating expenditures of $458,803, mainly personal services and general operating expenditures, were associated with the Immokalee Community Redevelopment Agency. In addition, debt service expenditures of $30,934 were made for leased office space. • The Grants and Shared Revenue fund was established to account for the revenues received from federal, state and local grants. The Grants and Shared Revenue fund saw an increase in intergovernmental revenue of $1,799,724 and a decrease in economic environment expenditures of $3,603,565 and a decrease in human services expenditures of $478,495 in fiscal year 2023, primarily as a result of the economic recovery and pandemic grants winding down. Grant funded capital outlay included $8,192,383 for road improvements and $300,017 in vehicles and equipment. • The Hurricane Ian fund was established to account for the revenues and expenditure associated with the recovery from Hurricane Ian. Current operating expenditures increased $23,582,278 as the County expended funds to repair County structures and beach facilities as well as emergency sewage pumping and hauling related to the storm. Capital outlay related to Hurricane Ian included $1,706,628 for a protective berm to prevent future beach erosion and $512,631 in vehicles and equipment. Insurance proceeds of $11,670,394 have been recognized during the fiscal year. • The Infrastructure Sales Tax fund was established to account for the proceeds of the 1 % Infrastructure Sales Tax. The tax was effective as of January 1, 2019 and fiscal year 2023 collections were $124,563,002, an increase of $4,187,384 over the previous fiscal year. The Infrastructure Sales Tax Fund had interest earnings of $11,930,482 and capital outlay totaled $64,086,405. Capital outlay included $56,321,449 for road and bridge projects, $2,241,979 for the Sheriff's Forensics Building and other jail improvements, $1,675,090 for building automation and energy management system improvements, $576,094 for the Big Corkscrew Island Regional Park, $512,428 for hurricane resiliency projects, $298,391 for the new chiller plant, $603,376 for the new mental health facility, $1,305,702 for the Emergency Operations Center garage enclosure, $256,989 for the Domestic Animal Services Facility, $207,057 for the new Emergency Medical Services station in Golden Gate Estates and $87,850 for the Career and Technical Training Center. Proprietary Funds Proprietary fund statements provide the same information as the business -type activities in the government -wide financial statements, but in greater detail, and on a fund basis for enterprise funds. At September 30, 2023, total net position amounted to $1,230,982,512 for enterprise funds, as compared to $1,161,930,947, as of September 30, 2022, an increase of $69,051,565. Net position changes as a result of operations, non -operating revenues and expenses, capital contributions and grants and donations. For fiscal year 2023, the County Water and Sewer fund's activities represent the largest share of the increase in the business -type net position. For the year ended September 30, 2023, the Collier County Water and Sewer District (District) reported capital grants and contributions of $42,318,853, which consists of water and sewer impact fees of $17,586,817, $24,726,809 in developer infrastructure contributions and other capital contributions of $5,227. 11 Emergency Medical Services reported charges for services of $15,517,757 in 2023. Personal services expenses increased from $32,617,400 in fiscal year 2022 to $34,156,907 in fiscal year 2023 due to an increase in the pay plan along with an increase in pension costs. For fiscal year 2023, Emergency Medical Services relied on a $25,433,657 transfer from the General Fund to supplement the user charges to provide emergency medical services to the County. County Water and Sewer Solid Waste Disposal Emergency Medical Services Non -major enterprise funds Total Net Operating Income/(Loss) 2023 2022 $ 16,195,193 (20,077,675) (27,961,508) (18,057,376) $ (49,901,366) $ 12,998,887 9,269,912 (22,997,903) (14,616,257) $ (15,345,361) The Collier County Water and Sewer District's net operating income increased by $3,196,306, or 24.6%, when compared to fiscal year 2022. The increase in net operating income was primarily the result of a 5.0% rate increase effective October 2022 and an additional 7.1 % mid -year increase in July 2023, offset by a 7.4% increase in total operating expenses, including depreciation and amortization. Personal services expenses increased due to a pay plan increase as well as an increase of $6,985,852 for pension expense. County Water and Sewer payments in lieu of taxes paid to the General Fund of $10,048,100 were reclassified from operating expense to transfers out for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Solid Waste Disposal fund's net operating income decreased by $29,347,587, or 316.6%, when compared to fiscal year 2022. The increase in net operating loss was primarily the result of a 3.3% increase in tipping rate offset by a 66.3% increase in total operating expenses, including depreciation and amortization. This increase is due to the county -wide debris removal effort after Hurricane Ian. Solid Waste Disposal also recognized $23,404,214 in operating contributions from FEMA reimbursements. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $489,000 were reclassified from operating expense to transfers out for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Emergency Medical Services fund's net operating loss increased by $4,963,605, or 21.6%, when compared to fiscal year 2022. The increase in net operating loss was mainly brought by the increase in personal services related to a pay plan adjustment and an increase in the allocated pension plan expense of $622,888. Capital Assets Collier County's financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County's investment in capital assets for the governmental and business -type activities amounted to $3,037,720,808, net of accumulated depreciation. This investment in capital assets includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year net of accumulated depreciation increased by $104,456,060, when compared to the previous year. There was an increase in the governmental activities capital assets of $81,902,090, or 4.4%, while the business -type activities capital assets increased by $22,553,970, or 2.1 %. The major capital asset activities during the current and previous fiscal years are as follows: • Capitalization from construction in process of $90,121,763 in governmental activity costs including $25,136,215 for the Amateur Sports Complex, $17,455,903 related to the construction of the emergency protective berm along the coast and $11,453,739 for the City Gate Boulevard North road extension. The remaining $36,075,906 is related to $18,423,520 in other transportation projects, $3,985,018 in park facilities, $9,587,282 in stormwater projects and $4,080,086 in other capital projects. • The business -type activities capitalized $29,043,117 of construction in process during fiscal year 2023 including $12,280,469 to construct a Deep Injection Well Pump Station, $9,319,397 in County Water and Sewer infrastructure improvements, $4,615,846 in other Water and Sewer projects, $1,886,586 for a new scalehouse at the landfill and $807,367 for Airport security improvements. The remaining $133,452 was for $101,262 in various Solid Waste projects and $32,190 was for miscellaneous Mass Transit projects. • Developer donated water and wastewater infrastructure in fiscal year 2023 amounted to $24,726,809 and $18,426,432 in fiscal year 2022. Subdivisions are required to meet County standards when installing water and wastewater services. Once completed and inspected, these assets are donated to and accepted by the County. 12 • Collier County acquired $14,761,006 of land and non -depreciable assets in fiscal year 2023, compared to $82,708,568 for fiscal year 2022. Fiscal year 2023 land acquisitions consisted primarily of $4,631,047 for Conservation Collier, $2,648,845 for stormwater, $1,229,340 for Vanderbilt Beach Road, $1,237,169 for Randall Boulevard and Immokalee Road intersection improvements and $3,400,000 for Veterans Memorial Boulevard. Additional information regarding Collier County's capital assets can be found in Note 6 beginning on page 59 of this report. Debt Administration At September 30, 2023, Collier County had total bonded debt, notes, loans, leases and financed purchase obligations of $713,687,303, a decrease of $43,880,293 from the previous year. The following table illustrates the balances of all bonds, notes, loans, leases and subscription based information technology obligations for the fiscal years ended September 30, 2023 and 2022: Outstanding Debt Revenue Bonds Direct Placement Loans Payable Commercial Paper and Notes Payable Leases Subscription Based Information Technology Arrangements* Total outstanding debt 2023 2022 403,204,521 $ 471,978,619 257,983,264 234,133,732 37,004,848 43,538,848 7,335,790 7,916,397 8,158,880 - $ 713,687,303 $ 757,567,596 * The increase in Subscription Based Information Technology Arrangements is due to the County's adoption of GASB 96, Subscription -Based Information Technology Arrangements for the 2023 fiscal year. Collier County's Series 2020A and 2020E Special Obligation Revenue Bonds carry ratings of Aaa and AAA by Moody's and Standard and Poor's, respectively. The Series 2017, 2019, 2022A and 2022B Special Obligation Refunding Revenue Notes (Bank Term Loans) were issued as direct placements with commercial banks and therefore carry an implied rating of Aaa and AAA by Moody's and Standard and Poor's, respectively. The Series 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) was issued as a direct placement with a commercial bank. Collier County's Tourist Development Tax Revenue Bonds carry ratings of Aa3 and AA+ by Moody's and Fitch Ratings, Inc., respectively. Collier County's Senior Lien Water and Sewer Revenue Bonds carry ratings of Aaa and AAA, respectively, by Moody's and Fitch Ratings, Inc. The Series 2018 and 2023 County Water and Sewer Revenue Bonds were issued as direct placements with commercial banks and, as such, carry implied ratings of Aaa and AAA by Moody's and Fitch Ratings, Inc., respectively. The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County's long-term debt can be found in Note 7 beginning on page 60 of this report. General Fund Budgetary Highlights During the 2023 fiscal year, the General Fund expenditure appropriations increased by $8,116,164. Significant variances between the original budget and the final, amended budget are listed below: • $980,452 increase in Facilities Management operating expenditures due to increases in contract rates for repairs to County facilities. • $961,300 increase in Clerk of the Circuit Court and Comptroller personal services for pay plan adjustments. • $3,255,000 increase in Sheriff personal services for pay plan adjustments. • $724,258 increase in Economic Development operating due to re -budgeting of lapsed appropriations from the previous fiscal year primarily to provide impact fee assistance for the new Immokalee Career Path Learning Lab. • $626,350 in Domestic Animal Services as a result of a need to hire temporary staff due to vacancies and an increase in operating supply costs. • $697,037 in Parks Operations operating primarily for temporary labor and fuel as the County assumed operations of the County marinas. • $730,034 in Parks Maintenance personal services due to transferring 9 full time positions from Parks Operations and a pay plan adjustment. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2023. Tax revenues were under budget by $19,510,392 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum of 4.0% to 1.0%, depending on the date of payment. 13 Other general administrative operating was under budget $3,387,340 due to anticipated projects being put on hold as County Management evaluates priorities for the current fiscal year. The Tax Collector was $1,395,544 under budget in personal services as a result of many vacancies during the fiscal year. Sheriff personal services was also $4,647,577 under budget and capital outlay was $4,044,312 over budget for the 2023 fiscal year. The Sheriff was under budget in personal services due to many vacant positions during the year and was over budget in capital outlay as a result of purchasing additional vehicles and related equipment. Stormwater Management operating was $1,131,009 under budget as scheduled maintenance was delayed due to Hurricane Ian. Parks Operations operating under budget $1,006,335 in large part due to the Big Corkscrew Regional Park not being fully operational and lower than expected maintenance costs at the Golden Gate Golf Course property. Economic Factors and Year 2024 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2024 budget: • A 3.5% increase in countywide taxable property values. • Rolled back General Fund tax rate. • Implement the next phase of the compensation and pay plan adjustments. • Continued emphasis on capital facility repair and replacement. • Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff). During fiscal year 2023, the General Fund unassigned fund balance increased by $14,460,738 to $129,009,839. $23,338,600 of the fiscal year 2023 unassigned fund balance has been appropriated in the 2024 budget to support fiscal year 2024 operations. Contact Information This financial report is intended to give the user a general overview of Collier County Government's finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court and Comptroller Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112-5746 Our office may also be contacted via the internet at www.collierclerk.com. 14 OINANCIAL EMENTS COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION September 30, 2023 ASSETS Current assets: Cash and investments Trade receivables, net Special assessments receivable Interest receivable Due from other governments Leases receivable Internal balances Deposits Inventory Prepaid costs Restricted assets: Cash and investments Trade receivables, net Leases receivable Notes receivable Interest receivable Due from other governments Deposits Inventory Inventory for resale Prepaid costs Total current assets Noncurrent assets: Restricted assets: Cash and investments Cash with fiscal agent Leases receivable Notes receivable Impact fee receivable Leases receivable Notes receivable Capital assets: Land and non -depreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to debt Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources The notes to the financial statements are an integral part of this statement. Primary Government Governmental Business -type Component Activities Activities Total Units $ 497,128,382 $ 320,342,589 $ 817,470,971 $ 484,076 8,859,003 25,097,634 33,956,637 - 1,405 37,518 38,923 629,172 753,788 1,382,960 13,835,817 4,022,946 17,858,763 291,107 237,010 528,117 (16,443,108) 16,443,108 - 20,118 1,706,394 1,726,512 1,927,440 12, 591,970 14, 519,410 6,897,458 199,155 7,096,613 68,718,963 13,975,459 82,694,422 7,674,403 - 7,674,403 587 587 25,561 - 25,561 1,188,833 39,731 1,228,564 35,155,561 2,520,337 37,675,898 1,875 - 1,875 1,397,282 1,397,282 3,838,014 3,838,014 87,589 - 87,589 - 631,235,462 397,967,639 1,029,203,101 484,076 898,443,200 179,679,060 1,078,122,260 30,293,130 - 30,293,130 17,936 17,936 163,868 163,868 8,040,735 - 8,040,735 6,061,386 3,590,036 9,651,422 1,490,839 - 1,490,839 790,722,268 201,153,964 991,876,232 1,147,933,019 897,911,557 2,045,844,576 2,883,166,381 1,282,334,617 4,165,500,998 - 3,514,401,843 1,680,302,256 5,194,704,099 484,076 3,476,198 1,465,263 4,941,461 19,943,844 208,475 20,152,319 86,362,436 20,200,326 106,562,762 $ 109,782,478 $ 21,874,064 $ 131,656,542 $ 16 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION (continued) September 30, 2023 Primary Government Governmental Business -type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable $ 24,816,664 $ 17,464,456 $ 42,281,120 $ Wages payable 10,470,435 4,028,655 14,499,090 Retainage payable 234,872 1,547,224 1,782,096 Due to other governments 4,954,524 154,032 5,108,556 Self-insurance claims payable 11,657,455 - 11,657,455 Compensated absences 13,778,313 3,465,478 17,243,791 Unearned revenue 140,551 56,513 197,064 Total OPEB Liability 2,767,951 173,244 2,941,195 Landfill post -closure liability - 41,029 41,029 Leases payable 865,760 95,075 960,835 SBITA liability 1,696,006 55,919 1,751,925 Bonds, loans and notes payable 30,741,000 10,479,750 41,220,750 Liabilities payable from restricted assets: Accounts payable 18,233,736 4,118,251 22,351,987 Wages payable 2,838,167 24,212 2,862,379 Retainage payable 7,261,626 3,240,900 10,502,526 Refundable deposits 5,486,546 226,842 5,713,388 Interest payable 4,761,671 2,801,624 7,563,295 Due to other governments 4,041,429 130,960 4,172,389 Unearned revenue 35,571,407 140,071 35,711,478 Bonds, loans and notes payable - 3,563,098 3,563,098 Total current liabilities 180,318,113 51,807,333 232,125,446 Noncurrent liabilities: Self-insurance claims payable 2,416,047 - 2,416,047 Compensated absences 25,843,663 866,369 26,710,032 Leases payable 5,743,985 630,970 6,374,955 SBITA liability 6,026,094 380,861 6,406,955 Landfill post -closure liability - 1,405,870 1,405,870 Total OPEB liability 41,237,178 2,487,163 43,724,341 Net pension liability 368,600,133 80,320,670 448,920,803 Bonds, loans and notes payable, net 327,996,564 325,412,221 653,408,785 Arbitrage rebate - 349,008 349,008 Total noncurrent liabilities 777,863,664 411,853,132 1,189,716,796 Total liabilities 958,181,777 463,660,465 1,421,842,242 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 5,704,031 3,689,610 9,393,641 Deferred inflows of resources related to OPEB 6,802,073 460,839 7,262,912 Deferred inflows of resources related to pensions 16,485,138 2,241,734 18,726,872 Deferred inflows of resources related to debt - 6,341,662 6,341,662 Total deferred inflows of resources 28,991,242 12,733,845 41,725,087 NET POSITION Net investment in capital assets 1,604,949,936 882,903,785 2,487,853,721 Restricted for: Growth related capital expansion 200,805,526 22,016,087 222,821,613 Transportation capital projects 59,948,296 - 59,948,296 Community development 36,510,727 36,510,727 Tourist development 117,927,084 117,927,084 Conservation Collier 72,754,263 72,754,263 Community redevelopment 17,480,720 17,480,720 Infrastructure sales tax capital projects 355,579,834 - 355,579,834 Grants 31,488,053 2,292,799 33,780,852 Debt service 1,940,212 22,029,934 23,970,146 Court programs 17,989,304 - 17,989,304 Public safety 7,842,690 7,842,690 Nonexpendable purposes - other 5,522,800 5,522,800 Special revenues - other 6,682,623 - 6,682,623 Renewal and replacement - 300,000 300,000 Unrestricted 99,589,234 296,239,405 395,828,639 484,076 Total net position $ 2,637,011,302 $ 1,225,782,010 $ 3,862,793,312 S 484,076 17 COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2023 Primary Government: Governmental Activities: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Interest and fiscal charges Total governmental activities Business -type Activities: Water and sewer Solid waste Emergency medical services Airport authority Mass transit Total business -type activities Total primary government Component Units: Industrial Development Authority Health Facilities Authority Housing Finance Authority Educational Facilities Authority Total component units The notes to the financial statements are an integral part of this statement. Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions $ 179,598,624 $ 44,893,454 $ 2,200,726 $ 3,315,500 330,023,718 25,317,778 4,996,388 4,492,456 47,929,092 857,951 2,827,424 2,363,348 97,579,380 1,532,283 9,471,143 28,854,455 43,399,803 107,061 45,245,885 12,701 26,395,674 548,218 8,768,987 - 86,605,450 10,482,752 161,647 13,063,991 10,320,545 - - - 821,852,286 83,739,497 73,672,200 52,102,451 190,638,961 192,610,835 51 42,318,853 85,475,093 64,854,260 23,404,214 3,269 43,837,951 15,570,278 14,897,520 - 11,762,329 9,498,151 35,228 312,082 17,199,715 1,081,028 4,171,143 5,152,421 348,914,049 283,614,552 42,508,156 47,786,625 $ 1,170,766,335 $ 367,354,049 $ 116,180,356 $ 99,889,076 $ 32,675 $ $ $ 6,175 10,175 11,185 65,000 $ 60,210 $ $ 65,000 $ General revenues: Property taxes Gas taxes Sales tax Tourist taxes Communications services tax Infrastructure sales tax State revenue sharing Othertaxes Interest earnings Miscellaneous Transfers, net Total general revenues and transfers Change in net position Net position - beginning Net position - ending 18 Net Governmental Activities $ (129,188,944) $ (295,217,096) (41,880,369) (57,721,499) 1,965,844 (17,078,469) (62,897,060) (10,320,545) Revenue and Changes in Net Position Primary Government Business -type Activities Total $ (129,188,944) $ (295,217,096) (41,880,369) (57,721,499) 1,965,844 (17,078,469) (62,897,060) (10,320,545) Component Units (612,338,138) - (612,338,138) 44,290,778 44,290,778 2,786,650 2,786,650 (13,370,153) (13,370,153) (1,916,868) (1,916,868) (6,795,123) (6,795,123) 24,995,284 24,995,284 $ (612,338,138) $ 24,995,284 $ (587,342,854) $ (32,675) (6,175) (10,175) 53,815 $ 4,790 $ 518,876,535 $ $ 518,876,535 $ 24,846,062 24,846,062 68,746,452 68,746,452 44,107,953 44,107,953 4,079,742 4,079,742 124,563,003 124,563,003 18,830,744 18,830,744 2,610,650 2,610,650 62,110,437 21,606,002 83,716,439 3,725 18,892,173 1,265,614 20,157,787 - (18,257,499) 18,257,499 - - 869,406,252 41,129,115 910,535,367 3,725 257,068,114 66,124,399 323,192,513 8,515 2,379,943,188 1,159,657,611 3,539,600,799 475,561 $ 2,637,011,302 $ 1,225,782,010 $ 3,862,793,312 $ 484,076 19 COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2023 Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Hurricane Infrastructure Governmental Governmental Fund Agency Agency Revenue Ian Sales Tax Funds Funds ASSETS Cash and investments $ 176,955,420 $ 10,690,403 $ 3,250,914 $ 56,477,632 $ 16,878,278 $ 306,150,339 $797,502,271 $1,367,905,257 Cash with fiscal agent - - - - - 30,293,130 - 30,293,130 Receivables: Interest 217,897 13,293 3,464 72,412 7,151 361,020 1,009,736 1,684,973 Trade, net 443,293 - - 5,437,448 6,614,846 - 2,321,946 14,817,533 Notes 1,490,839 - - 189,429 1,680,268 Impact fee - 8,040,735 8,040,735 Special assessments - 1,405 1,405 Leases 362,820 - 6,008,196 6,371,016 Due from other funds 675,661 - - 455,234 - 359,955 6,664,893 8,155,743 Due from other governments 9,621,068 13,355 19 8,389,236 514,041 18,493,363 11,704,927 48,736,009 Deposits 20,118 - 625 - - - 1,250 21,993 Inventory for resale - 3,694,000 - 144,014 3,838,014 Inventory 1,045,493 - 1,567,345 2,612,838 Advances to other funds 2,268,100 37,282,965 39,551,065 Prepaid costs 384,964 - - 20,451 - - 87,138 492,553 Total assets $ 193,485,673 $ 14,411,051 $ 3,255,022 $ 70,852,413 $ 24,014,316 $ 355,657,807 $872,526,250 $1,534,202,532 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 11,571,632 $ 90,559 $ 60,575 $ 2,959,760 $ 3,016,044 $ 5,860,762 $ 16,994,825 $ 40,554,157 Wages payable 8,586,736 21,426 12,170 207,371 - - 3,960,109 12,787,812 Due to other funds 3,739,579 396 - 11,949,311 77,972 1,564,317 17,331,575 Due to other governments 4,700,489 - 227 276,352 - 3,981,638 8,958,706 Unearned revenues 3,308 - 35,453,907 118,896 35,576,111 Refundable deposits 982,691 - 4,503,855 5,486,546 Retainage payable - 410,501 74,143 4,686,370 2,325,484 7,496,498 Advances from other funds - - 32,500,000 - 19,551,065 52,051,065 Total liabilities 29,584,435 11Z381 72,972 51,257,202 35,590,187 10,625,104 53,000,189 180,242,470 Deferred inflows of resources: Unavailable revenue 2,500 5,448,947 8,040,735 13,492,182 Related to leases 331,232 - 5,372,799 5,704,031 Total deferred inflows of resources 333,732 5,448,947 13,413,534 19,196,213 Fund balances: Nonspendable 5,189,396 20,451 7,177,283 12,387,130 Restricted 75,789 14,298,670 3,182,050 14,125,813 345,032,703 587,927,319 964,642,344 Committed - - - - - 58,730,435 58,730,435 Assigned 29,292,482 161,986,302 191,278,784 Unassigned 129,009,839 - - - (11,575,871) - (9,708,812) 107,725,156 Total fund balances 163,567,506 14,298,670 3,182,050 14,146,264 (11,575,871) 345,032,703 806,112,527 1,334,763,849 Total liabilities, deferred inflows of resources and fund balances $ 193,485,673 $ 14,411,051 $ 3,255,022 $ 70,852,413 $ 24,014,316 $ 355,657,807 $872,526,250 $1,534,202,532 The notes to the financial statements are an integral part of this statement 20 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2023 Differences in amounts reported for governmental activities in the statement of net position on pages 16-17: Fund balances - total governmental funds Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land and other non -depreciable assets $ 620,499,045 Construction in progress 170,223,223 Depreciable assets, net of $1,356,253,801 in accumulated depreciation 1,125,480,983 Certain revenues will be collected after year-end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred inflows in the funds. Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net position. Balances at September 30, 2023 are: Accrued interest on bonds, loans and notes payable $ (4,761,671) Bonds, loans and notes payable (341,629,000) Lease obligations (6,606,130) SBITA obligations (6,127,372) Compensated absences (38,990,692) Total OPEB liability (43,679,888) Pension liability (360,195,945) Unamortized premiums 170,736 Unamortized discount (17,279,300) Unamortized deferred charges on refunding OPEB related deferred outflows Pension related deferred outflows OPEB related deferred inflows Pension related deferred inflows $ 1,334,763,849 1,916,203,251 13,492,182 (819,099,262) 3,476,198 19,918,358 84,334,965 (6,745,734) (16,206,027) Internal service funds are used by the County to charge self-insurance, fleet management, motor pool capital recovery and information technology services to individual funds. The assets, deferred outflows, liabilities and deferred inflows, including the cululative adjustments related to Enterprise funds, of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position at September 30, 2023 is: 106,873,522 Total net position - governmental activities The notes to the financial statements are an integral part of this statement. $ 2,637,011, 002 21 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Fiscal Year Ended September 30, 2023 Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Hurricane Infrastructure Governmental Governmental Fund Agency Agency Revenue Ian Sales Tax Funds Funds Revenues: Taxes $ 410,393,808 $ 3,348,900 $ 1,207,800 $ $ $ 124,563,002 $ 171,114,268 $ 710,627,778 Licenses, permits and impact fees 221,487 - 3,761 - 74,656,573 74,881,821 Intergovernmental 90,234,331 - 47,141,909 514,041 17,600,357 155,490,638 Charges for services 21,619,362 - 543,567 - 21,434,842 43,597,771 Fines and forfeitures 374,658 39,500 - - 2,291,171 2,705,329 Interest earnings 9,916,699 420,574 110,006 2,399,189 257,084 11,930,482 33,156,738 58,190,772 Special assessments - - - - - - 12,026,472 12,026,472 Miscellaneous 1,447,293 - 455 756,558 - 45 3,514,268 5,718,619 Total revenues 534,207,638 3,808,974 1,322,022 50,841,223 771,125 136,493,529 335,794,689 1,063,239,200 Expenditures: Current: General government 94,878,594 739,172 5,462,059 38,954,352 140,034,177 Public safety 229,388,614 1,742,303 444,559 37,935,431 269,510,907 Physical environment 8,040,267 902,476 16,086,982 15,068,452 40,098,177 Transportation 617,769 379,633 1,267,940 56,100,988 58,366,330 Economic environment 1,800,701 1,132,855 458,803 32,698,742 53,180 6,555,464 42,699,745 Human services 14,057,585 - - 4,501,712 110 6,468,243 25,027,650 Culture and recreation 23,554,181 - 554,686 876,221 39,134,578 64,119,666 Debt service Principal 1,312,365 30,914 31,733 - 31,081,116 32,456,128 Interest 199,554 20 1,232 10,713,440 10,914,246 Fiscal charges - - - - 10,000 10,000 Capital outlay 19,612,737 - - 8,492,400 2,219,259 64,086,405 83,249,556 177,660,357 Total expenditures 393,462,367 1,132,855 489,737 50,044,089 26,410,310 64,086,405 325,271,620 860,897,383 Excess (deficit) of revenues over (under) expenditures 140,745,271 2,676,119 832,285 797,134 (25,639,185) 72,407,124 10,523,069 202,341,817 Other financing sources (uses): Loans issued - - - - - 1,500,000 1,500,000 Leases 180,258 56,608 - 236,866 SBITAs 5,778,881 - - 1,634,914 7,413,795 Sale of capital assets 497,808 91 600,121 1,800 119,253 1,219,073 Insurance proceeds 540,577 - - - 11,670,394 623,624 12,834,595 Transfers in 21,699,685 221,700 92,819 5,536,806 2,000,000 175,758,681 205,309,691 Transfers out (162,552,405) (53,800) (138,700) (18,000) - (77,972) (73,718,615) (236,559,492) Total other financing sources (uses) (133,855,196) 167,991 554,240 5,575,414 13,672,194 (77,972) 105,917,857 (8,045,472) Net change in fund balances 6,890,075 2,844,110 1,386,525 6,372,548 (11,966,991) 72,329,152 116,440,926 194,296,345 Fund balances at beginning of year 156,677,431 11,454,560 1,795,525 7,773,716 391,120 272,703,551 689,671,601 1,140,467,504 Fund balances at end of year $ 163,567,506 $ 14,298,670 $ 3,182,050 $14,146,264 $ (11,575,8711 $ 345,032,703 $ 806,112,527 $1,334,763,849 The notes to the financial statements are an integral part of this statement. 22 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2023 Differences in amounts reported for governmental activities in the statement of activities on pages 18-19: Net change in fund balances - total governmental funds $ 194,296,345 Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is allocated over their estimate useful lives and reported as depreciation and amortization expense. Capital outlay $ 177,660,357 Depreciation and amortization expense (97,258,485) 80,401,872 Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net position in the statement of net position. 1,243,899 In the statement of net position, the gain or loss on the sale of capital assets is reported. However, in the governmental funds the proceeds from the sale of capital assets increase financial resources. The change in net position differs from the change in fund balances by the net book value of capital assets disposed. (2,546,862) Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. 6,208,112 Debt proceeds provide current financial resources for governmental funds, but issuing debt increases liabilities in the statement of net position. Repayment of principal on long-term debt is an expenditure in governmental funds, but a reduction of long-term liabilities in the statement of net position. Loan proceeds $ (1,500,000) Bond, loan and note principal payments 30,235,000 Lease proceeds (236,866) SBITA proceeds (7,413,795) Payments on lease obligations 934,705 Payments on SBITA obligations 1,286,423 23,305,467 Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Compensated absences $ (2,972,705) OPEB expense (2,450,202) Pension expense (56,723,553) Accrued interest on bonds, loans and notes payable (64,498) Amortization of deferred charges on refunding (477,472) Amortization of premiums and discounts, net 1,186,194 (61,502,236) The net revenues of internal service funds, including the consolidating adjustment related to Enterprise funds, are reported with governmental activities. 15,661,517 Change in net position - governmental activities $ 257,068,114 The notes to the financial statements are an integral part of this statement 23 COLLIER COUNTY, FLORIDA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2023 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Miscellaneous Total revenues Expenditures: Current: General government Board of County Commissioners personal services Board of County Commissioners operating County manager administrative personal services County manager administrative operating Corporate planning and improvement personal services Corporate planning and improvement operating Budget and management personal services Budget and management operating Administrative services personal services Administrative services operating Administrative services capital outlay Human resources administration personal services Human resources administration operating Clerk of the Circuit Court personal services Clerk of the Circuit Court operating Clerk of the Circuit Court capital outlay Property Appraiser personal services Property Appraiser operating Property Appraiser capital outlay Tax Collector personal services Tax Collector operating Tax Collector capital outlay County attorney personal services County attorney operating County attorney capital outlay Circuit court operating County court operating State Attorney operating Public Defender operating Other general administrative personal services Other general administrative operating Facilities management personal services Facilities management operating Facilities management capital outlay Sheriff personal services Sheriff operating Original Final Budget Budget Actual Variance $ 429,904,200 $ 429,904,200 $ 410,393,808 $ (19,510,392) 342,000 342,000 221,487 (120,513) 62,302,500 62,302,500 90,234,331 27,931,831 23,385,132 25,240,569 21,619,362 (3,621,207) 377,000 377,000 374,658 (2,342) 1,032,100 1,032,100 7,242,830 6,210,730 9,484,400 9,515,612 10,009,293 493,681 526,827,332 528,713,981 540,095,769 11,381,788 1,365,500 1,368,000 1,337,411 30,589 120,400 139,400 105,956 33,444 1,610,300 1,830,300 1,827,190 3,110 79,400 79,400 58,083 21,317 702,800 642,800 544,650 98,150 40,100 40,100 39,101 999 863,800 863,800 830,265 33,535 74,600 74,600 61,478 13,122 4,072,000 3,845,770 3,363,324 482,446 543,100 638,024 341,460 296,564 20,000 - - - 2,042,100 2,042,100 1,838,408 203,692 707,200 804,772 396,951 407,821 11,724,300 12,685,600 12,663,273 22,327 3,660,800 3,546,500 3,175,029 371,471 58,700 125,700 303,983 (178,283) 8,054,212 8,070,949 7,162,696 908,253 2,300,960 2,310,960 2,377,663 (66,703) 35,000 35,000 141,767 (106,767) 15,965,430 15,965,430 14,569,876 1,395,554 3,836,860 3,886,860 4,131,260 (244,400) 288,109 288,109 64,809 223,300 2,880,800 2,761,662 2,655,273 106,389 341,300 693,136 155,884 537,252 10,000 10,000 - 10,000 40,400 40,900 23,333 17,567 27,600 27,600 15,249 12,351 762,200 849,600 740,419 109,181 377,700 382,700 381,125 1,575 200,000 200,000 17,786 182,214 13,839,500 14,092,294 10,704,954 3,387,340 9,353,700 9,016,059 8,820,128 195,931 9,970,900 10,951,352 10,778,234 173,118 134,000 309,761 90,952 218,809 5,436,400 5,436,400 5,318,796 117,604 173,100 173,100 124,697 48,403 24 COLLIER COUNTY, FLORIDA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2023 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 3,060,700 3,053,200 2,914,460 138,740 Supervisor of Elections operating 1,914,100 1,921,600 1,853,973 67,627 Supervisor of Elections capital outlay 30,000 30,000 27,253 2,747 Public services operations personal services 2,361,800 1,924,131 1,860,266 63,865 Public services operations operating 189,100 228,300 204,798 23,502 Real property management personal services 869,700 871,362 852,366 18,996 Real property management operating 135,900 135,900 100,426 35,474 Total general government 110,274,571 112,393,231 102,975,005 9,418,226 Public safety Sheriff personal services 182,807,500 186,062,500 181,414,923 4,647,577 Sheriff operating 42,748,600 43,063,600 43,519,333 (455,733) Sheriff capital outlay 6,353,500 6,353,500 10,397,812 (4,044,312) Emergency management administration personal services 1,421,300 1,425,736 1,424,739 997 Emergency management administration operating 1,081,400 1,077,931 920,385 157,546 Helicopter operations operating 47,400 47,400 47,226 174 Medical examiner services operating 2,069,100 2,069,100 2,062,008 7,092 Total public safety 236,528,800 240,099,767 239,786,426 313,341 Physical environment Stormwater Management personal services 3,414,200 3,429,800 2,862,840 566,960 Stormwater Management operating 5,286,800 5,353,644 4,222,635 1,131,009 Stormwater Management capital outlay 34,000 319,985 295,662 24,323 Conservation and resource management personal services 783,700 744,232 704,981 39,251 Conservation and resource management operating 165,500 220,829 201,775 19,054 Immokalee cemetery operating 29,000 29,000 24,756 4,244 Total physical environment 9,713,200 10,097,490 8,312,649 1,784,841 Transportation Alternative transportation modes personal services 585,000 633,000 600,036 32,964 Alternative transportation modes operating 22,900 22,900 17,733 5,167 Total transportation 607,900 655,900 617,769 38,131 Economic environment Veterans services personal services 375,700 375,700 370,990 4,710 Veterans services operating 50,200 50,200 38,165 12,035 Economic development personal services 225,000 382,189 362,025 20,164 Economic development operating 1,072,800 1,797,058 1,029,521 767,537 Total economic environment 1,723,700 2,605,147 1,800,701 804,446 Human services Health Care Responsibility Act operating 46,200 46,200 - 46,200 Domestic animal services personal services 3,087,900 2,895,110 2,787,843 107,267 Domestic animal services operating 1,252,200 1,878,550 1,599,065 279,485 Health department operating 1,866,600 1,879,600 1,753,993 125,607 Mental health personal operating 3,059,500 2,902,806 2,615,722 287,084 Client assistance personal services 1,514,900 1,514,900 1,276,351 238,549 Client assistance operating 3,879,000 3,887,232 3,760,981 126,251 Public services division office personal services 362,800 272,800 259,893 12,907 Public services division office operating 39,600 33,400 27,173 6,227 Total human services 15,108,700 15,310,598 14,081,021 1,229,577 (continued) 25 COLLIER COUNTY, FLORIDA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2023 Culture and recreation Library administration personal services Library administration operating Parks operations personal services Parks operations operating Parks operations capital outlay Parks maintenance personal service Parks maintenance operating Parks maintenance capital outlay Total culture and recreation Debt service Total expenditures Excess of revenues over expenditures Other financing sources (uses): Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Original Final Budget Budget Actual Variance 6,843,700 6,596,961 6,117,503 479,458 1,919,200 1,953,814 1,915,011 38,803 5,822,500 5,305,939 5,246,431 59,508 4,603,800 5,300,837 4,294,502 1,006,335 - 35,400 - 35,400 2,244,600 2,974,634 2,942,130 32,504 2,978,600 3,157,815 3,015,103 142,712 36,000 33,902 33,901 1 24,448,400 25,359,302 23,564,581 1,794,721 1,516,300 1,516,300 1,511,919 4,381 399,921,571 408,037,735 392,650,071 15,387,664 126,905,761 120,676,246 147,445,698 26,769,452 - 180,258 180,258 30,000 39,427 10,803 (28,624) - 1,589 335,811 334,222 4,988,400 4,989,700 24,604,502 19,614,802 (165,655,961) (177,636,410) (167,457,222) 10,179,188 (160,637,561) (172,605,694) (142,325,848) 30,279,846 (33,731,800) (51,929,448) 5,119,850 57,049,298 129,205,600 132,304,759 156,677,431 24,372,672 $ 95,473,800 $ 80,375,311 $ 161,797,281 $ 81,421,970 Reconciliation: Net change in fund balance, budgetary basis $ 5,119,850 Net change in fair value of investments 2,673,869 Miscellaneous revenue related to indirect cost (8,562,000) Change in inventory 36,456 General government expenditures related to indirect cost 8,562,000 Property Appraiser general government refunds to other governments not budgeted (1,154,154) Public safety expenditures for multi -period projects not budgeted (1,785,946) Public safety capital outlay funded by outside sources not budgeted (691,771) Insurance proceeds related to Sheriff assets not budgeted 204,766 Proceeds from sale of Sheriff assets not budgeted 487,005 SBITA inception related capital outlay not budgeted (5,778,881) SBITA inception proceeds not budgeted 5,778,881 Interfund transfers in 2,904,817 Interfund transfers out (2,904,817) Advances budgeted as transfers 2,000,000 Net change in fund balance, GAAP basis $ 6,890,075 The notes to the financial statements are an integral part of this statement. 26 COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2023 Original Final Budget Budget Actual Variance Revenues: Taxes $ 3,348,900 $ 3,348,900 $ 3,348,900 $ Fines and forfeitures - - 39,500 39,500 Interest earnings 44,600 44,600 253,805 209,205 Total revenues 3,393,500 3,393,500 3,642,205 248,705 Expenditures: Economic environment Personal service Operating Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Interfund transfers in Interfund transfers out Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. 539,800 539,800 494,236 45,564 1,389,600 4,068,560 638,619 3,429,941 1,614,300 9,177,461 - 9,177,461 3,543,700 13,785,821 1,132,855 12,652,966 (150,200) (10,392,321) 2,509,350 12,901,671 - - 91 91 2,652,900 4,118,000 3,963,027 (154,973) (2,485,000) (3,950,100) (3,795,127) 154,973 167,900 167,900 167,991 91 17,700 (10,224,421) 2,677,341 12,901,762 10,226,621 11,454,560 1,227,939 $ 17,700 $ 2,200 $ 14,131,901 $ 44,129,701 $ 2,677,341 166,769 (3,741,327) 3,741,327 $ 2,844,110 27 COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2023 Revenues: Taxes Licenses, permits and impact fees Charges for services Interest earnings Miscellaneous Total revenues Expenditures: Economic environment Personal service Operating Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Interfund transfers in Interfund transfers out Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 1,207,800 $ 1,207,800 $ 1,207,800 $ - - 3,761 3,761 - 250,000 - (250,000) 13,700 13,700 63,911 50,211 - 455 455 1,221,500 1,471,500 1,275,927 (195,573) 239,500 239,500 239,337 163 330,400 1,071,573 219,466 852,107 31,000 31,000 30,934 66 520,800 3,252,900 - 3,252,900 1,121,700 4,594,973 489,737 4,105,236 99,800 (3,123,473) 786,190 3,909,663 - - 600,121 600,121 527,000 1,812,500 1,760,518 (51,982) (572,900) (1,858,400) (1,806,399) 52,001 (45,900) (45,900) 554,240 600,140 53,900 (3,169,373) 1,340,430 4,509,803 3,170,173 1,795,525 (1,374,648) $ 53,900 $ 800 $ 3,135,955 $ 3,135,155 $ 1,340,430 46,095 (1,667,699) 1,667,699 $ 1,386,525 28 COLLIER COUNTY, FLORIDA GRANTS AND SHARED REVENUE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2023 Revenues: Intergovernmental Charges for services Interest earnings Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Total expenditures Deficit of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Interfund transfers in Interfund transfers out Unbudgeted funds Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 3,000 $ 149,104,556 $ 44,835,132 $ (104,269,424) - 3,869,158 543,567 (3,325,591) 28,600 50,075 1,496,362 1,446,287 - 3,321,275 756,558 (2,564,717) 31,600 156,345,064 47,631,619 (108,713,445) 8,100 2,692,719 739,172 1,953,547 736,900 786,308 43,939 742,369 345,800 21,162,113 902,476 20,259,637 - 1,533,925 379,633 1,154,292 - 84,541,441 32,698,742 51,842,699 817,100 15,829,122 4,501,712 11,327,410 - 3,939,107 554,686 3,384,421 - 54,451,557 8,379,124 46,072,433 1,907,900 184,936,292 48,199,484 136,736,808 (1,876,300) (28,591,228) (567,865) 28,023,363 4 (4) 1,155,400 23,704,769 5,671,243 (18,033,526) (123,000) (198,790) (152,437) 46,353 1,032,400 23,505,983 5,518,806 (17,987,177) (843,900) (5,085,245) 4,950,941 10,036,186 3,288,200 7,363,315 7,773,716 410,401 $ 2,444,300 $ 2,278,070 $ 12,724,657 $ 10,446,587 $ 4,950,941 902,827 (134,437) 134,437 st a Tan J 0,J / L,.7'#0 29 COLLIER COUNTY, FLORIDA HURRICANE IAN STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2023 Original Final Budget Budget Actual Variance Revenues: Intergovernmental $ S $ 514,041 $ 514,041 Interest earnings 122,940 122,940 Total revenues 636,981 636,981 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Total expenditures Deficit of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Insurance proceeds Transfers in Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. 9,900,100 5,462,059 4,438,041 520,000 444,559 75,441 27,161,575 16,086,982 11,074, 593 3,600,000 1,267,940 2,332,060 70,000 53,180 16,820 15,000 110 14,890 7,190,000 876,221 6,313,779 12,043,325 2,219,259 9,824,066 60,500,000 26,410,310 34,089,690 (60,500,000) (25,773,329) 34,726,671 1,800 1,800 - - 11,670,394 11,670,394 2,000,000 59,500,000 2,000,000 (57,500,000) 2,000,000 59,500,000 13,672,194 (45,827,806) 2,000,000 (1,000,000) (12,101,135) (11,101,135) 1,000,000 391,120 (608,880) $ 2,000,000 $ - $ (11,710,015) $ (11,710,015) $ (12,101,135) 134,144 $ (11,966,9911 30 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2023 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds ASSETS Current assets: Cash and investments $ 234,448,541 $ 44,969,657 $ 31,266,494 $ 9,657,897 $ 320,342,589 $ 96,385,288 Receivables: Trade, net 20,873,478 1,228,178 2,974,406 21,572 25,097,634 1,715,873 Special assessments 37,518 - - - 37,518 - Interest 510,479 189,985 38,974 14,350 753,788 133,032 Leases 32,765 - - 204,245 237,010 - Due from other funds 653 171,223 8,952,142 28,718 9,152,736 32,222 Due from other governments 652,010 1,853,694 1,513,980 3,262 4,022,946 255,369 Deposits 1,706,394 - - - 1,706,394 - Inventory 11,321,191 - 1,049,163 221,616 12,591,970 711,884 Prepaid costs 137,520 40,285 - 21,350 199,155 6,492,494 Restricted assets: Cash and investments 13,216,560 140,071 292,223 326,605 13,975,459 - Interest receivable 39,377 - 354 - 39,731 Due from other governments 238,597 2,281,740 2,520,337 - Total current assets 282,976,486 48,593,093 46,326,333 12,781,355 390,677,267 105,726,162 Noncurrent assets: Restricted assets: Cash and investments 179,679,060 - - - 179,679,060 - Receivables: Leases 748,865 2,841,171 3,590,036 Advances to other funds 12,500,000 - 12,500,000 Capital assets: Land and nondepreciable capital assets 181,915,927 9,629,523 - 9,608,514 201,153,964 - Depreciable capital assets, net 781,080,648 38,978,497 11,349,811 66,502,601 897,911,557 22,452,036 Total noncurrent assets 1,155,924,500 48,608,020 11,349,811 78,952,286 1,294,834,617 22,452,036 Total assets 1,438,900,986 97,201,113 57,676,144 91,733,641 1,685,511,884 128,178,198 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to debt 1,465,263 - - - 1,465,263 - Deferred outflows of resources related to OPEB 123,997 12,027 65,864 6,587 208,475 25,486 Deferred outflows of resources related to pensions 8,955,298 835,654 9,981,829 427,545 20,200,326 2,027,471 Total deferred outflows of resources $ 10,544,558 $ 847,681 $ 10,047,693 $ 434,132 $ 21,874,064 $ 2,052,957 (Continued) 31 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2023 Business -type Activities Enterprise Funds Governmental County Emergency Activities - Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds LIABILITIES Current liabilities: Accounts payable $ 12,029,511 $ 3,369,120 $ 873,409 $ 1,192,416 $ 17,464,456 $ 2,496,243 Wages payable 2,238,683 209,641 1,471,293 109,038 4,028,655 520,790 Retainage payable 1,533,763 13,461 - - 1,547,224 - Due to other funds 8,198 928 - - 9,126 - Due to other governments 140,813 796 242 12,181 154,032 37,247 Unearned revenues 47,163 - - 9,350 56,513 135,847 Self-insurance claims payable - - - - - 11,657,455 Compensated absences 2,324,032 213,544 813,563 114,339 3,465,478 505,027 Total OPEB Liability 103,042 9,995 54,734 5,473 173,244 21,180 Landfill post -closure liability - 41,029 - - 41,029 - Lease payable 65,078 - 29,997 95,075 3,335 SBITA liability 55,919 - 55,919 276,633 Bonds, loans and notes payable 10,479,750 - 10,479,750 - Liabilities payable from restricted assets Accounts payable 3,394,022 - 724,229 4,118,251 Wages payable - 24,212 - 24,212 Retainage payable 3,240,900 - - 3,240,900 Due to other governments - 130,960 130,960 Refundable deposits 216,916 - 9,926 226,842 Unearned revenue - 140,071 - 140,071 Interest payable 2,801,624 - 2,801,624 Bonds, loans and notes payable 3,563,098 - - - 3,563,098 - Total current liabilities 42,242,512 3,998,585 3,267,450 2,307,912 51,816,459 15,653,757 Noncurrent liabilities: Arbitrage rebate 349,008 - - - 349,008 - Self-insurance claims payable - - - - - 2,416,047 Compensated absences 581,008 53,386 203,390 28,585 866,369 126,257 Lease payable 307,861 - 323,109 - 630,970 280 SBITA liability 380,861 - - - 380,861 1,318,095 Total OPEB liability 1,479,316 143,490 785,779 78,578 2,487,163 304,061 Net pension liability 37,690,060 3,540,565 37,251,268 1,838,777 80,320,670 8,404,188 Landfill post closure liability - 1,405,870 - - 1,405,870 - Bonds, loans and notes payable, net 325,41Z221 - - - 325,41Z221 - Total noncurrent liabilities 366,200,335 5,143,311 38,563,546 1,945,940 411,853,132 12,568,928 Total liabilities 408,442,847 9,141,896 41,830,996 4,253,852 463,669,591 28,222,685 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 704,460 - - 2,985,150 3,689,610 - Deferred inflows of resources related to OPEB 274,098 26,587 145,595 14,559 460,839 56,339 Deferred inflows of resources related to pensions 1,322,714 127,149 722,500 69,371 2,241,734 279,111 Deferred inflows of recources related to debt 6,341,662 - - - 6,341,662 - Total deferred inflows of resources 8,642,934 153,736 868,095 3,069,080 12,733,845 335,450 NET POSITION Net investment in capital assets 747,328,532 48,514,454 10,996,705 76,064,094 882,903,785 20,471,825 Restricted for: Grants and other purposes - - 506,962 1,785,837 2,292,799 - Growth related capital expansion 22,016,087 - - 22,016,087 Renewal and replacement 300,000 300,000 Debt service 22,029,934 - - - 22,029,934 - Unrestricted 240,685,210 40,238,708 13,521,079 6,994,910 301,439,907 81,201,195 Total net position $ 1,032,359,763 $ 88,753,162 $ 25,024,746 $ 84,844,841 1,230,982,512 $ 101,673,020 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds (5,200,502) Net position of Business -type Activities $ 1,225,782,010 The notes to the financial statements are an integral part of this statement. 32 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2023 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating revenues: Charges for services $ 192,339,407 $ 64,707,812 $ 15,517,757 $ 10,596,872 $ 283,161,848 $ 120,306,687 Miscellaneous 271,428 146,448 52,521 57,765 528,162 1,458,069 Total operating revenues 192,610,835 64,854,260 15,570,278 10,654,637 283,690,010 121,764,756 Operating expenses: Personal services General and administrative Insurance claims paid Depreciation and amortization Total operating expenses Operating income (loss) Non -operating revenues (expenses): Operating grants and contributions Interest earnings Insurance reimbursement Interest expense Gain (loss) on disposal of capital assets Rebatable arbitrage Total non -operating revenues (expenses) Income (loss) before contributions and transfers Capital grants and contributions Transfers in Transfers out Total transfers and contributions Change in net position 53,377,604 5,207,386 34,156,907 2,733,243 95,475,140 12,556,574 72,417,115 77,645,611 6,928,064 21,169,409 178,160,199 34,631,140 - - - - - 75,442,320 50,620,923 2,078,938 2,446,815 4,809,361 59,956,037 4,148,623 176,415,642 84,931,935 43,531,786 28,712,013 333,591,376 126,778,657 16,195,193 (20,077,675) (27,961,508) (18,057,376) (49,901,366) (5,013,901) 51 23,404,214 14,897,520 4,206,371 42,508,156 - 17,744,440 2,134,800 1,175,572 551,190 21,606,002 3,919,665 1,146,154 106,022 1,191 12,247 1,265,614 354,208 (10,651,308) - (7,003) (15,665) (10,673,976) (40,523) (1,375,920) (38,545) 15,021 26,921 (1,372,523) 447,142 (349,008) - - - (349,008) - 6,514,409 25,606,491 16,082,301 4,781,064 52,984,265 4,680,492 22,709,602 5,528,816 (11,879,207) (13,276,312) 3,082,899 (333,409) 42,318,853 3,269 - 5,464,503 47,786,625 - 2,253,201 1,122,387 25,433,657 5,660,410 34,469,655 13,257,760 (14,948,928) (920,386) (7,700) (410,600) (16,287,614) (190,000) 29,623,126 205,270 25,425,957 10,714,313 65,968,666 13,067,760 52,332,728 5,734,086 13,546,750 (2,561,999) 69,051,565 12,734,351 Net position - beginning 980,027,035 83,019,076 11,477,996 87,406,840 88,938,669 Net position - ending $ 1,032,359, 663 $ 88,753,162 $ 25,024,746 $ 84,844,841 $ 101,673,020 Consolidation adjustment for internal service fund activities related to enterprise funds Change in net position of Business -type Activities The notes to the financial statements are an integral part of this statement. (2,927,166) $ 66,124,399 33 ■ COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2023 Cash flows from operating activities: Cash received for services Cash received from other funds for services Cash received from other governments for services Cash received from employees for services Cash received from refundable deposits Cash received from retirees for services Cash payments on behalf of retirees Cash payments for goods and services Cash payments for self insurance claims Cash payments to employees Cash payments for interfund services Cash payments from refundable deposits Net cash provided by (used for) operating activities Cash flows from non -capital financing activities: Cash received from operating grants Cash transfers from other funds Cash transfers to other funds Net cash provided by (used for) non -capital financing activities Cash flows from capital and related financing activities: System development charges Special assessment collections Receipts from insurance reimbursements Proceeds from bond issued Proceeds from disposal of capital assets Proceeds from capital grants Proceeds from leasing activities Payments for capital acquisitions Principal payments on loans and notes Payments from escrow agents Principal payments on leases Principal payments on SBITA Interest and fiscal agent fees paid Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and investments Cash and investments, October 1, 2022 Cash and investments, September 30, 2023 Current cash and investments Current cash and investments -restricted Noncurrent cash and investments -restricted Cash and investments, September 30, 2023 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds $ 188,279,836 $ 64,221,375 $ 18,719,345 $ 10,644,782 $ 281,865,338 $ - - - - - 112,815,703 489,800 - - - 8,218,588 153,450 918,840 1,072,290 - - - - 2,303,754 (2,037,794) (59,813,361) (75,098,019) (3,175,478) (16,323,171) (154,410,029) (35,157,038) (75,784,747) (45,590,701) (4,471,354) (30,783,009) (2,257,826) (83,102,890) (10,325,540) (14,314,798) (1,615,640) (4,282,661) (4,423,077) (24,636,176) (1,499,269) (124,700) (864,311) (989,011) 68,589,726 (16,909,109) (19,521,803) (12,359,292) 19,799,522 (976,543) - 23,367,186 13,290,223 5,917,673 42,575,082 - 2,252,984 14,796,587 16,477,258 6,444,693 39,971,522 13,049,219 (25,286,411) (14,594,586) (3,443) (2,812,503) (42,696,943) (190,019) (23,033,427) 23,569,187 29,764,038 9,549,863 39,849,661 12,859,200 17,586,817 17,586,817 55,544 55,544 - 1,172,777 106,022 1,191 12,247 1,292,237 336,074 116,305 - - - 116,305 - 248,227 25,393 15,021 43,667 332,308 447,142 - 3,269 - 5,644,436 5,647,705 - 33,668 - 202,097 235,765 (49,887,746) (2,218,722) (1,379,806) (4,249,107) (57,735,381) (4,695,238) (13,644,000) (13,644,000) 21,606 21,606 (68,331) (29,448) (97,779) (3,284) (58,590) (58,590) (301,952) (11,793,179) (7,003) (11,800,182) (40,523) (56,216,902) (2,084,038) (1,400,045) 1,653,340 (58,047,645) (4,257,781) 17,675,991 2,115,782 1,163,828 550,508 21,506,109 3,896,991 17,675,991 2,115,782 1,163,828 550,508 21,506,109 3,896,991 7,015,388 6,691,822 10,006,018 (605,581) 23,107,647 11,521,867 420,328,773 38,417,906 21,552,699 10,590,083 490,889,461 84,863,421 $ 427,344,161 $ 45,109,728 $ 31,558,717 $ 9,984,502 $ 513,997,108 $ 96,385,288 $ 234,448,541 $ 44,969,657 $ 31,266,494 $ 9,657,897 $ 320,342,589 $ 96,385,288 13,216,560 140,071 292,223 326,605 13,975,459 - 179,679,060 - - - 179,679,060 $ 427,3 44,161 $ 45,109,728 $ 31,558,717 $ 9,984,502 $ 513,997,108 $ 96385,288 (Continued) 34 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2023 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating income (loss) $ 16,195,193 $ (20,077,675) $ (27,961,508) $ (18,057,376) $ (49,901,366) $ (5,013,901) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense 50,620,923 2,078,938 2,446,815 4,809,361 59,956,037 4,148,623 Net changes in assets and liabilities: Trade receivable (4,340,744) (46,312) 1,560,557 (3,098) (2,829,597) (492,803) Due from other funds - 5,567 - 5,567 (32,222) Due from other governments 318,787 (651,432) 937,403 604,758 50,775 Inventory (4,010,027) (17,869) (36,023) (4,063,919) (77,161) Prepaid costs (8,399) (40,285) - (21,350) (70,034) (4,350,059) Accounts payable 1,774,027 972,237 139,419 713,131 3,598,814 382,308 Retainage payable 132,664 - - - 132,664 - Wages payable 303,966 17,473 (15,949) 16,931 322,421 99,476 Due to other funds 70 928 (34,080) - (33,082) - Due to other governments 140,736 (1,105) (518) (524) 138,589 (2,030) Compensated absences 151,489 32,275 57,906 (2,114) 239,556 54,651 Refundable deposits 28,750 - - 28,750 - Unearned revenue - 54,529 (6,233) 48,296 (11,563) Self-insurance claims payable - - - - - 2,190,456 Total OPEB liability 112,329 5,102 153,809 8,134 279,374 49,179 Deferred outflows of resources related to OPEB (43,588) (5,800) (23,033) (3,587) (76,008) (7,671) Deferred inflows of resources related to OPEB (103,930) (10,322) (37,613) (4,149) (156,014) (17,010) Net pension liability 8,823,038 850,807 3,519,372 566,722 13,759,939 2,482,908 Deferred outflows of resources related to pensions (1,270,166) (130,144) (74,488) (99,477) (1,574,275) (424,755) Deferred inflows of resources related to pensions (186,235) (23,359) (172,026) (7,043) (388,663) (5,744) Deferred inflows of resources related to leases (49,157) - (232,597) (281,754) Landfill post closure liability - 59,469 - - 59,469 - Total adjustments 52,394,533 3,168,566 8,439,705 5,698,084 69,700,888 4,037,358 Net cash provided by (used for) operating activities $ 68,589,726 $ (16,909,109) $ (19,521,803) $ (12,359,292) $ 19,799,522 $ (976,543) Non -cash investing, capital and financing activities: Change in fair value of investments $ 6,841,760 $ 811,467 $ 479,246 $ 180,670 $ 8,313,143 $ 1,302,064 Arbitrage rebate 349,008 - - - 349,008 - Developer infrastructure contributions 24,726,809 24,726,809 Contributed capital assets 54,918 54,918 Lease right -to -use assets acquired 216,440 216,440 - SBITA right -to -use assets acquired 495,370 495,370 1,896,680 Change in capital related grant receivable - (179,933) (179,933) - Change in special assessment receivable (50,317) - - (50,317) - Capital related accounts payable 7,700,139 67,366 47,021 7,814,526 381,868 Capital related retainage 4,395,937 13,461 - 4,409,398 - The notes to the financial statements are an integral part of this statement 35 COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS September 30, 2023 Sheriff Private Purpose Custodial Trust Fund Funds ASSETS Cash and investments $ 375,805 $ 30,659,023 Trade receivable, net - 15,247 Due from other governments 13,284 Total assets LIABILITIES Due to other governments Due to individuals Total liabilities FIDUCIARY NET POSITION Restricted for individuals and governments 375,805 $ 30,687,554 10,761,836 150,680 $ $ 10,912,516 $ 375,805 $ 19,775,038 The notes to the financial statements are an integral part of this statement. 36 COLLIER COUNTY, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCUARY FUNDS For the Fiscal Year Ended September 30, 2023 ADDITIONS: Contributions for individuals Fees collected for other governments Miscellaneous Total additions DEDUCTIONS: Beneficiary payments to individuals Payment of fees to other governments Payments to other entities Total deductions Net increase in fiduciary net position Fiduciary net position - beginning of year Fiduciary net position - end of year Sheriff Private Purpose Custodial Trust Fund Funds $ 548,861 $ 22,128,844 - 1,056,619,019 617,363 548,861 1,079,365,226 484,252 21,474,988 - 1,056,418,489 389,506 484,252 1,078,282,983 64,609 1,082,243 311,196 18,692,795 $ 375,805 $ 19,775,038 The notes to the financial statements are an integral part of this statement. 37 �O er aunty NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Collier County, Florida (County) have been prepared in accordance with accounting principles generally accepted in the United States of America for governmental entities (GAAP). The more significant of the County's accounting policies are described below. THE REPORTING ENTITY Entity status for financial reporting purposes is governed by Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended. The GASB is the standard setting body for the establishment of GAAP in governmental entities. Determination of the financial reporting entity of the County is founded upon the objective of accountability. These financial statements include the County government (the primary government) and two types of legally separate component units (blended and discrete). Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board and impose its will on the organization or there is a potential specific financial benefit/burden relationship. Financial accountability also exists if an organization is fiscally dependent and there is a potential specific financial benefit/burden relationship. The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court and Comptroller, the Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court and Comptroller. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes, the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex-officio. These entities are legally separate, however the County has the financial and operational responsibility for these component units. In accordance with GASB Statement No. 14, as amended, these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District (District) - The District was established by Chapter 88-499, Laws of Florida, as amended by Chapter 03-353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Collier County Community Redevelopment Agency (CRA)_- The CRA was established by Resolution 2000-82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas. These two redevelopment areas are geographically separate and distinct. Collier County Airport Authority - The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010-10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization (MPO) - The MPO was created in 1981 by Collier County Resolution 81-222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenues fund. The County's discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units' Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB Statement No. 14, as amended, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. Collier County Housing Finance Authority - The Authority was formed in 1980 by Collier County Ordinance 80-66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Health Facilities Authority - The Authority was established in 1979 by Collier County Ordinance 79-95 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position 39 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Industrial Development Authority -The Authority was created in 1978 by Collier County Resolution 78-94, rescinded and replaced by Resolution 79-34, to facilitate the financing of projects that promote economic growth and increase opportunities for employment in the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Educational Facilities Authority - The Authority was created in 1999 by Collier County Resolution 99-17 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller. Administrative Offices Collier Water and Sewer District Collier County Airport Authority 3339 East Tamiami Trail, Suite #302 2005 Mainsail Drive, Suite #1 Naples, Florida 34112 Naples, Florida 34114 Collier County Metropolitan Planning Organization Immokalee Community Redevelopment Agency 2885 South Horseshoe Drive 750 South 5th Street Naples, Florida 34104 Immokalee, Florida 34142 Bayshore Gateway Community Redevelopment Agency Collier County Health Facilities Authority 3299 Tamiami Trail East, Bldg. F Suite #103 Collier County Housing Finance Authority Naples, Florida 34112 Collier County Industrial Development Authority Collier County Educational Facilities Authority 725 High Pines Drive Naples, Florida 34103 GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government -wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business -type activities of Collier County. The government -wide financial statements consist of a Statement of Net Position and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business -type activities. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements with the exception of interfund services provided and used. The internal service activity has also been eliminated from the government -wide financial statements. Aggregate internal service fund activity is reported in full as a single column in the proprietary fund financial statements. Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Position reports all financial and capital resources of Collier County's governmental and business -type activities. Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources, and is shown in three categories: net investment in capital assets; restricted net position and unrestricted net position. The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree the particular program has been self-supporting. Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly identifiable to a particular function. The effect of indirect expense allocations has been eliminated in the government -wide financial statements. Depreciation expense for capital assets that can specifically be identified with a function is recorded as a direct expense of that function. Depreciation for capital assets that serve all functions is recorded as a direct expense of the general government function on the government -wide Statement of Activities. All interest on general long term debt is considered indirect and is reported separately in the government -wide Statement of Activities. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. 40 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The fund financial statements follow the government -wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are reconciliations explaining the differences between the governmental fund presentation and the government -wide presentation. BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund — the General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County's consolidated General Fund. Bayshore/Gateway Community Redevelopment Area Special Revenue Fund — the Bayshore/Gateway Community Redevelopment fund is used to account for the receipt and expenditure of tax increment revenues generated by the Bayshore/ Gateway Community Redevelopment Areas. Immokalee Community Redevelopment Area Special Revenue Fund — the Immokalee Community Redevelopment fund is used to account for the receipt and expenditure of tax increment revenues generated by the Immokalee Community Redevelopment Area. Grants and Shared Revenue Special Revenue Fund — the Grants and Shared Revenue fund is used to account for the receipt and expenditure of federal, state and local grants. Hurricane Ian Fund - the Hurricane Ian fund is used to account for the receipt of resources and expenditures related to the recovery from Hurricane Ian. Infrastructure Sales Tax Capital Project Fund — the Infrastructure Sales Tax fund is used to account for the receipt and expenditure of an additional one -cent sales surtax approved by the voters. The following are reported as major enterprise funds: County Water and Sewer Fund — the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County's unincorporated area. Solid Waste Disposal Fund — the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Emergency Medical Services Fund — the Emergency Medical Services fund is used to account for the provision of emergency ambulance and paramedical services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Funds — Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Permanent Fund — Permanent funds are used to account for resources that were legally restricted to the extent that only earnings and not principal may be spent. Collier County operates a permanent fund to defray costs associated with the maintenance and management of conservation land. Debt Service Funds — Debt service funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for principal and interest related to long-term obligations. Capital Project Funds — Capital project funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. Enterprise Funds — Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds — Internal service funds are used to account for the provision of goods and services by one department to other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently reports the following Internal Service Funds: Self -Insurance, Sheriff's Self -Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology. 41 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fiduciary Funds - Private Purpose Trust Funds — Fiduciary funds - private purpose trust funds are used to account for assets held by Collier County in which the principal and income benefit individuals, private organizations or other governments. Private purpose trust funds are accounted for using the accrual basis of accounting. The Sheriff maintains this fund for the employee flexible spending account. Fiduciary Funds - Custodial Funds — Fiduciary funds - custodial funds are used to account for assets held by Collier County as an agent for individuals, private organizations and other governments. Custodial funds are custodial in nature. Custodial funds are accounted for using the accrual basis of accounting. The Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain custodial funds. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. The government -wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are recognized in the period incurred. Grant and similar revenues are recognized when eligibility requirements are met. Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. Generally, revenues are considered available when they are collected within the current period or within 60 days after the end of the fiscal year. Grant revenues are an exception and are considered available when eligibility requirements are met. Primary revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues. Property taxes are discussed later in Note 1. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include accrued compensated absences, pension, other postemployment benefits and principal and interest on long-term debt. When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses, and then unrestricted as needed. When using the unrestricted resources, committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1. Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2. Within eighty days of the certification of value, but not earlierthan sixty-five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled -back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3. Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 42 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 4. A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5. The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not laterthan thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6. The County Manager approves intradepartmental budget changes within the same fund of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as a matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7. Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board departments except for the custodial funds. The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts operates as a fee officer, and as such, prepares its non -court budget in accordance with Section 218.35, Florida Statutes. The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the Board. The Clerk of Court's budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission. Budgets are adopted for all governmental departments except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non -budgeted revenues and expenditures and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. For further information regarding encumbrances, refer to Note17 on page 84. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. CASH AND INVESTMENTS Florida Statutes Section 218.415 establishes guidelines for Florida local government investment policies. The County's current investment policy, as amended, was adopted December 9, 2014 by Resolution 2014-260 and is consistent with the requirements of that statute. This investment policy authorized the following investments: 1. U.S. Treasury and Government Guaranteed — U.S. Treasury obligations and the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S. Government; 2. Federal Agency/Government Sponsored Enterprise — Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise; 3. Corporates — U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic corporation, financial institution, non-profit or other entity; 4. Municipals — Obligations, including both taxable and tax-exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory; 5. Agency Mortgage Backed Securities — Mortgage backed securities, backed by residential, multi -family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass-throughs, collateralized mortgage obligations and real estate mortgage investment conduits; 43 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 6. Non -Negotiable Certificates of Deposit - Non-negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 7. Depository Bank Account — Negotiated Order of Withdrawal accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 8. Commercial Paper — U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation, company, financial institution, trust or other entity, including both unsecured debt and asset backed programs; 9. Repurchase Agreements — Repurchase agreements must be governed by written agreement, counterparty must be a Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank. Acceptable underlying securities must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or U.S. Agency backed mortgage related securities with an aggregate current fair value of at least 102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential; 10. Money Market Funds — Shares in open end and no load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange Commission Rule 2a-7; 11. Fixed -Income Mutual Funds — Shares in open end and no load fixed income mutual funds whose underlying investments would be permitted for purchase under the investment policy and all its restriction; 12. Local Government Investment Pools — State, local government or privately sponsored investment pools that are authorized pursuant to state law; 13. The Florida Local Government Surplus Funds Trust Funds (Florida Prime). The County maintains a cash and investment pool that is available for use by all funds. Investment income is allocated to individual funds based upon their average daily balance in the cash and investment pool. Each fund's individual equity in the County's cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time without notice or penalty. The statement of cash flows for the proprietary funds also uses this methodology. Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service. Investments in the Local Government Investment Pools (FL PALM and FLCLASS) and the Local Government Surplus Funds Trust Fund (Florida PRIME) are stated at fair value. The County categorizes its fair value measurements within the fair value hierarchy established in GASB Statement No. 72, Fair Value Measurements and Application. Florida Public Assets for Liquidity Management's FL PALM Portfolio Board of Trustees has determined that it will manage the FL PALM Portfolio in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants requirements, as applicable, for continued use of amortized cost. Therefore, the fair value of the County's position in the pool is the same as the value of the pool shares. Throughout the year, and as of September 30, 2023, FL PALM Portfolio contained certain floating and adjustable rate securities. These investments represented 34.0% of the FL PALM Portfolio's investments as of September 30, 2023. In addition, and in accordance with GASB 79, the County should disclose the presence of any limitations or restrictions on withdrawals in notes to the financial statements. The FL PALM portfolio Board of Trustees (Trustees) can suspend the right of withdrawal or postpone the date of payment if the Trustees determine that there is an emergency that makes the sale of a Portfolio's securities or determination of its net asset value not reasonably practical. Florida Cooperative Liquid Assets Securities System (FLCLASS) does not meet all of the specific criteria outlined in GASB 79 for measurement at amortized cost. FLCLASS measures its investments at fair value in accordance with paragraph 41 of GASB 79 and paragraph 11 of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as amended, and therefore a participant's investment in FLCLASS is not required to be categorized within the fair value hierarchy for purposes of paragraph 81 a(2) of GASB 72. Throughout the year, and as of September 30, 2023, FLCLASS Daily Liquidity Pool and FLCLASS Enhanced Cash Pool contained certain floating and adjustable rate securities. These investments represented 42.7% and 26.9%, respectively, of the FLCLASS Daily Liquidity Pool and Enhanced Cash Pool as of September 30, 2023. Florida PRIME, administered by the State Board of Administration (SBA) is considered a qualifying external investment pool that meets all of the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the County's position in the pool is the same as the value of the pool shares. The Florida PRIME investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2023, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 26.1 % of Florida PRIME's portfolio at September 30, 2023. 44 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, as a participant in a qualifying external investment pool, the County should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool's authority to impose liquidity fees or redemption gates) in notes to the financial statements. With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days" With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. As of September 30, 2023, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally all receivables outstanding in excess of one year, except for Emergency Medical Services receivable, which uses an estimated uncollectible percentage. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first -in, first -out method. Inventory in the governmental funds consists of supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non -spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government -wide and proprietary fund financial statements are reported as an expense when consumed. Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell. The value of these properties includes the original purchase price plus the cost of any rehabilitation. Inventory held for resale of $3,838,014 is classified as restricted, which indicates that they do not constitute available resources. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the governmental or business -type activities columns in the government -wide financial statements. Capital assets are reported at cost where historical records are available and at estimated fair value in the absence of historical cost records. Capital contributions are recorded at acquisition value on the date donated. The County capitalizes expenditures with a cost of $5,000 or more and with a useful life in excess of one year. Betterments and major improvements which significantly increase value, change capacity or extend useful lives are also capitalized. Expenditures for maintenance and repairs are charged to operating expenses. The cost of capital assets retired or sold, together with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is credited or charged to earnings in the government -wide financial statements and proprietary fund financial statements. 45 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Depreciation is calculated using the straight-line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Estimated Useful Life Buildings 20-45 years Infrastructure 3-30 years Improvements other than buildings 4-45 years Machinery and equipment 3-20 years FINANCED PURCHASE OBLIGATIONS In the government -wide financial statements and proprietary fund financial statements, financed purchase obligations and the related cost of assets acquired are reflected in the Statement of Net Position. For financed purchase obligations originating in governmental funds, an expenditure for the asset and an offsetting other financial source are reflected in the fund financial statements in the year of inception. LEASES The County is a lessee for noncancellable leases of land, building, office space and equipment. The County recognizes a lease liability and an intangible right -to -use lease asset (lease asset) in the government -wide and proprietary fund financial statements. At the commencement of a lease, the County initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the term of the lease or the useful life of the underlying asset if shorter than the term of the lease. Key estimates and judgments related to leases include how the County determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The County uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are comprised of fixed payments and any purchase option price that the County is reasonably certain to exercise. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options are only included in the lease term if the lease is reasonably certain to be extended. The County monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position. Payments due under the lease contracts include fixed payments plus, for many of the County's leases, variable payments. For office space leases that include variable payments, those payments include the County's proportionate share of property taxes, insurance, and common area maintenance. For office equipment leases for which the County has elected not to separate lease and non -lease components, maintenance services are provided by the lessor at a fixed cost and are included in the fixed lease payments. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including in -substance fixed payments), less any lease incentives receivable. • Amounts expected to be payable by the County under residual value guarantees. • The exercise price of a purchase option if it is reasonably certain the option will be executed. • Payments of penalties for terminating the lease, if the lease term reflects the County exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. Extension and termination options are included in a number of property and equipment leases across the County. These are used to maximize operational flexibility in terms of managing the assets used in the County's operations. The majority of extension and termination options held are exercisable only by the County and not by the respective lessor. 46 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, the lessee's incremental borrowing rate is used. The incremental borrowing rate is the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right -of -use asset in a similar economic environment with similar terms, security and conditions. Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are initially measured using the index or rate as of the commencement of the lease term. The County is a lessor for noncancellable leases of land, building, office space and equipment. The County recognizes a lease receivable and a deferred inflow of resources in the government -wide, proprietary fund and governmental fund financial statements. At the commencement of a lease, the County initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the term of the lease. Key estimates and judgments include how the County determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The County uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is comprised of fixed payments from the lessee. The County monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAI The County has entered into agreements for the right to use various subscription based information technology for computer software and infrastructure. The County recognizes a subscription based information technology arrangement liability and an intangible right -to -use asset (subscription based IT arrangement asset) in the government -wide and proprietary fund financial statements. At the commencement of a SBITA contract, the County initially measures the liability at the present value of payments expected to be made during the SBITA contract term. Subsequently, the SBITA liability is reduced by the principal portion of lease payments made. The SBITA asset is initially measured as the initial amount of the SBITA liability, adjusted for SBITA contract payments made at or before the SBITA contract commencement date, plus certain initial direct costs. Subsequently, the SBITA asset is amortized on a straight-line basis over the term of the SBITA contract or the useful life of the underlying asset if shorter than the term of the SBITA contract. Key estimates and judgments related to SBITA contracts include how the County determines (1) the discount rate it uses to discount the expected SBITA contract payments to present value, (2) SBITA contract term, and (3) SBITA contract payments. The County uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for SBITA contract. The SBITA contract term includes the noncancellable period of the SBITA contract. SBITA contract payments included in the measurement of the SBITA liability are comprised of fixed payments and any purchase option price that the County is reasonably certain to exercise. In determining the SBITA contract term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options are only included in the SBITA contract term if the SBITA contract is reasonably certain to be extended. The County monitors changes in circumstances that would require a remeasurement of its SBITA contract and will remeasure the SBITA asset and liability if certain changes occur that are expected to significantly affect the amount of the SBITA liability. SBITA assets are reported with other capital assets and SBITA liabilities are reported with long-term debt on the statement of net position. Payments due under the SBITA contracts include fixed payments plus, in some circumstances, variable payments. Some common variable payments are for services or per use fees. These fees are analyzed for relevancy and for values that are fixed in nature. Assets and liabilities arising from a SBITA contract are initially measured on a present value basis. SBITA liabilities include the net present value of the following lease payments: 47 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) • Fixed payments (including in -substance fixed payments), less any incentives receivable. • Amounts expected to be payable by the County under residual value guarantees. • The exercise price of a purchase option if it is reasonably certain the option will be executed • Payments of penalties for terminating the SBITA contract, if the SBITA contract term reflects the County exercising that option. SBITA contract payments to be made under reasonably certain extension options are also included in the measurement of the liability. Extension and termination options are included in a number of SBITA contracts across the County. These are used to maximize operational flexibility in terms of managing the assets used in the County's operations. The majority of extension and termination options held are exercisable only by the County and not by the respective lessor. The SBITA contract payments are discounted using the interest rate implicit in the SBITA contract. If that rate cannot be readily determined, which is generally the case for SBITA arrangements in the group, the County's incremental borrowing rate is used. The incremental borrowing rate is the rate that the County would have to pay to borrow the funds necessary to obtain an asset of similar value to the right -of -use asset in a similar economic environment with similar terms, security and conditions. Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are initially measured using the index or rate as of the commencement of the SBITA contract term. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred outflows of resources reported in the County's statement of net assets represent changes in actuarial assumptions, the net difference between projected and actual earnings on investments, changes in the proportion and differences between the County's contributions and proportionate share of contributions and the County's contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. In addition, deferred outflows related to the difference between expected and actual economic experience relating to the Florida Retirement System Pension and the Other Post Employment Benefits Plan were reported. These amounts will be recognized as increases in pension expense and OPEB expense in future years. The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of resources reported in the County's statement of net position represent the difference between expected and actual economic experience, changes in actuarial assumptions, net difference between projected and actual earnings on investments, and changes in the proportion and differences between the County's contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan, the Retiree Health Insurance Subsidy Program and the Other Post Employment Benefits Plan. These amounts will be recognized as reductions in pension expense and OPEB expense in future years. The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee agreements and leases, as deferred inflows. BOND PREMIUMS, DISCOUNTS, GAIN OR LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums, discounts and bond insurance costs for the governmental activities and the business -type activities are deferred and amortized over the term of the bonds using the straight-line method which approximates the effective interest method. Bond premiums and discounts are presented as an increase, or decrease, respectively, to the face amount of bonds payable, while bond insurance costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets. Pursuant to GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. The gain or loss is amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. 48 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In the governmental fund financials, bond premiums and discounts and issuance costs, including bond insurance costs, are recognized in the current period. The face amount of debt is reported as other financing sources. Premiums and discounts on debt issuances are also reported as other financing sources, or uses. Issuance costs, including bond insurance costs, whether or not they have been paid from debt proceeds are reported as debt service expenditures. PROPERTY TAXES Property taxes become due and payable on November 1 st of each year and become delinquent on April 1 st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2023 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1 st delinquent date as follows: November - 4%, December - 3%, January - 2%, and February -1 Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1 st of each year. No accrual for the property tax levy becoming due in November 2023 is included in the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. Key dates in the property tax cycle for the fiscal year ended September 30, 2023 are as follows: Property Tax Cycle Assessment roll compiled Assessment roll certified Millage resolution approved Beginning of fiscal year for tax levy Taxes due and payable (levy date) Collection dates Due date Delinquent (lien date) Tax certificates sold ACCOUNTING ESTIMATES Date January 1, 2022 July 1, 2022 Within 35 days of the certification of the assessment roll October 1, 2022 November 1, 2022 By November 30: 4% discount By December 31: 3% discount By January 31: 2% discount By February 28: 1 % discount March 31, 2023 April 1, 2023 Prior to June 1, 2023 The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED REVENUE In instances where assets have been received by the County for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Unearned revenues of the County as of September 30, 2023 are gift certificates issued and prepayments on accounts. ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. It is the Board of County Commissioners' policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all employees. The Sheriff's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 2,000 hours, and up to 600 hours of unused vacation time. The Clerk of the Circuit Court and Comptroller allows for a percentage of unused sick leave payout based upon years of service for employees hired before December 21, 2010, and up to 240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation. 49 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) On October 1, 2021, the Tax Collector's office transitioned from having two paid time off (PTO) policies (sick and vacation) to a single PTO policy. All full-time employees of the Tax Collector are allowed to accumulate between 136 and 240 hours of PTO annually, depending on tenure. Any accrued hours from the discontinued sick policy were valued at the employees' September 30, 2021, rate of pay with multiple options for payout. First, employees with 800 or more accumulated sick hours could choose to exchange their first 800 hours for free health insurance until covered by Medicare. Secondly, all remaining employees could choose between 1) immediate 100% payout into their Section 457(b) upon satisfying budget and Internal Revenue Service contributions limitations or 2) up to 75% payout upon separation of service. Any accrued hours from the discontinued vacation policy were rolled into the new PTO policy. Upon separation of service, employees receive 1) 100% of accumulated PTO hours at their current rate of pay and 2) a percentage of unused sick leave hours (ranging from 0%to 75%, depending on years of service), valued at the employees' September 30, 2021, rate of pay. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government -wide financial statements and the proprietary fund financials. A liability is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are considered due and payable as of year end. PENSIONS In the government -wide and proprietary funds statements of net position, liabilities are recognized for the County's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS's and HIS's fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. OTHER POST EMPLOYMENT BENEFITS (OPEB) In the government -wide and proprietary funds statements of net position, liabilities are recognized for the County's total OPEB liability as determined by an actuarial review of the healthcare coverage purchased by retirees to continue participation in the County's self -insured health plan. The County is responsible for covering the excess of retiree claims over premium payments made by retirees to the County, which creates an other post employment benefit. OPEB expense is recognized immediately for changes in the OPEB liability resulting from current year service cost, interest on the total OPEB liability and changes of benefit terms or actuarial assumptions. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS For the year ended September 30, 2023, the financial statements include the impact of the adoption of GASB Statement No. 91, Conduit Debt Obligations. The primary objective of this statement is to provide a single method of reporting conduit debt obligations by issuers. This statement establishes standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations. This statement was fully implemented for fiscal year 2023. For additional information, please see Note 8 on page 67. The financial statements also include the impact of the adoption of GASB Statement No. 96, Subscription -Based Information Technology Arrangements. The primary objective of this statement is to enhance the consistency and comparability in financial reporting by governments. This statement establishes a definition for Subscription -Based Information Technology Arrangements (SBITA) and provides uniform guidance for accounting and financial reporting for transactions that meet that definition. In the year of inception, SBITAs initiated by the County are categorized as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance. Payments made in accordance with the subscription terms are recorded as debt service expenditures in the statement of revenues, expenditure, and changes in fund balance as they are incurred. In addition, the County is required to recognize a liability (SBITA liability) for the future payment obligation and an intangible right -to -use SBITA asset. This statement was fully implemented for fiscal year 2023. For additional information, please see Note 7 beginning on page 60. 50 NOTE 2 - CASH AND INVESTMENTS As of September 30, 2023, the County had the following cash, cash equivalents and investments: Investment Final Maturities Fair Value First Call Date Call Frequency Rating Cash on hand N/A $ 96,139 N/A N/A N/A Demand deposits N/A 557,462,200 N/A N/A N/A Cash with fiscal agent N/A 30,293,130 N/A N/A N/A Money market / CD N/A 109,525 N/A N/A N/A State Board of Administration Pool: Florida PRIME N/A 44,096,769 N/A N/A AAAm Intergovernmental Pools: FLCLASS Daily Liquidity N/A 21,548,434 N/A N/A AAAm FLCLASS Enhanced Cash N/A 125,859,040 N/A N/A AAAm FL PALM N/A 153,063,577 N/A N/A AAAm US Treasury Note 10/31/23 14,941,242 none N/A AA+ US Treasury Note 10/31/23 24,902,070 none N/A AA+ Federal Home Loan Mortgage Corp. 11/02/23 24,892,892 11/02/21 annual AA+ Federal Home Loan Mortgage Corp. 11/13/23 24,853,246 05/13/22 semi-annual AA+ Federal Farm Credit Bank 11/16/23 14,902,630 05/16/22 continuously AA+ Federal Home Loan Mortgage Corp. 11/24/23 24,813,078 11/24/21 quarterly AA+ US Treasury Note 11/30/23 24,802,020 none N/A AA+ US Treasury Note 11/30/23 24,802,020 none N/A AA+ US Treasury Note 11/30/23 24,802,020 none N/A AA+ Federal Farm Credit Bank 11/30/23 545,254 none N/A AA+ CitiGroup Global Markets 01/29/24 24,412,337 01/29/22 quarterly AA+ Federal Home Loan Bank 01/29/24 16,666,698 07/29/21 quarterly AA+ Federal Home Loan Bank 01/29/24 21,827,268 07/29/21 quarterly AA+ Bank of America Corp Note STEP 02/16/24 27,515,424 02/16/22 quarterly AA+ Federal Home Loan Bank 03/12/24 24,435,898 04/12/21 monthly AA+ US Treasury Note 03/15/24 24,427,735 none N/A AA+ Federal National Mortgage Assoc. 03/28/24 34,928,145 06/28/23 quarterly AA+ Federal Farm Credit Bank 03/28/24 487,420 none N/A AA+ Farmer Mac 04/01/24 9,746,363 none N/A AA+ US Treasury Note 04/15/24 24,335,938 none N/A AA+ Federal Home Loan Bank 05/24/24 24,171,796 02/24/21 continuously AA+ US Treasury Note 07/15/24 24,025,391 none N/A AA+ US Treasury Note 08/15/24 47,841,797 none N/A AA+ Federal Home Loan Bank 08/28/24 319,264 none N/A AA+ Federal Farm Credit Bank 10/15/24 474,115 none N/A AA+ Federal Home Loan Bank 11/15/24 94,988,810 02/15/22 quarterly AA+ Federal Home Loan Bank 11/26/24 23,619,485 11/26/21 quarterly AA+ Federal Home Loan Bank 12/09/24 235,986 none N/A AA+ Federal National Mortgage Assoc. 12/16/24 23,542,617 06/16/21 quarterly AA+ Federal Home Loan Bank 12/30/24 23,533,327 09/30/21 quarterly AA+ Federal Farm Credit Bank 01/13/25 369,325 none N/A AA+ Federal Home Loan Bank 01/15/25 467,570 none N/A AA+ Federal Farm Credit Bank 02/10/25 467,040 none N/A AA+ Federal Home Loan Bank 02/26/25 23,374,642 11/26/21 quarterly AA+ Federal Home Loan Bank 03/28/25 465,425 none N/A AA+ US Treasury Note 03/31/25 481,115 none N/A AA+ US Treasury Note 04/15/25 480,900 none N/A AA+ Federal Farm Credit Bank 05/06/25 23,216,019 05/06/22 continuously AA+ US Treasury Note 05/31/25 461,055 none N/A AA+ Federal Home Loan Bank 08/27/25 23,010,101 09/27/21 monthly AA+ Federal Farm Credit Bank 09/16/25 456,649 none N/A AA+ Federal Home Loan Bank STEP 09/30/25 22,197,082 12/30/21 quarterly AA+ Federal Home Loan Mortgage Corp. 10/20/25 227,608 none N/A Aaa US Treasury Note 11/15/25 494,765 none N/A AA+ Federal National Mortgage Assoc. 11/25/25 452,615 none N/A AA+ Federal Home Loan Mortgage Corp. 12/01/25 22,636,935 12/01/21 quarterly AA+ Federal National Mortgage Assoc. 12/10/25 22,629,836 06/10/21 quarterly AA+ Federal Home Loan Mortgage Corp. 12/17/25 22,598,985 12/17/21 quarterly AA+ Federal Home Loan Mortgage Corp. 01/07/26 319,212 none N/A AA+ Federal Home Loan Bank STEP 01/29/26 225,938 none N/A AA+ Federal Home Loan Bank 01/29/26 224,338 none N/A AA+ Federal Farm Credit Bank 02/04/26 224,063 none N/A AA+ Federal Home Loan Bank STEP 02/18/26 451,660 none N/A AA+ 51 NOTE 2 - CASH AND INVESTMENTS (Continued) Investment Final Maturities Fair Value First Call Date Call Frequency Rating Federal Home Loan Bank 02/26/26 448,684 none N/A AA+ Federal Home Loan Bank STEP 03/17/26 22,819,727 06/17/21 quarterly AA+ Federal Home Loan Bank STEP 03/26/26 457,045 none N/A AA+ Federal Home Loan Bank STEP 04/28/26 22,781,350 07/28/21 quarterly AA+ Federal Home Loan Bank STEP 06/16/26 22,542,969 09/16/21 quarterly AA+ Federal Home Loan Mortgage Corp. 06/23/26 444,470 none N/A AA+ Federal Home Loan Bank STEP 06/24/26 22,523,897 09/24/21 quarterly AA+ Federal Home Loan Bank STEP 06/30/26 22,640,741 09/30/21 quarterly AA+ Federal Home Loan Mortgage Corp. 07/30/26 110,875 none N/A AA+ Federal Farm Credit Bank 08/03/26 88,662 none N/A AA+ Federal Home Loan Bank 09/01/26 22,148,872 09/01/22 continuously AA+ Federal Farm Credit Bank 09/01/26 443,780 none N/A AA+ Federal Home Loan Bank 09/16/26 13,302,574 09/16/22 quarterly AA+ Federal Home Loan Bank 09/30/26 22,209,588 12/30/21 quarterly AA+ Federal Home Loan Bank 09/30/26 221,755 none N/A AA+ Federal Home Loan Bank 10/14/26 22,230,186 01/14/22 quarterly AA+ Federal Home Loan Bank 10/21/26 22,198,161 01/21/22 quarterly AA+ Federal Home Loan Bank 10/22/26 22,230,708 11/22/21 monthly AA+ US Treasury Note 11 /30/26 426,237 none N/A AA+ Federal Home Loan Bank 02/26/27 121,741 none N/A AA+ Federal Home Loan Mortgage Corp. 07/26/27 9,917,658 10/26/23 quarterly AA+ US Treasury Note 08/28/27 227,558 none N/A AA+ Federal Home Loan Mortgage Corp. 07/27/28 9,882,416 10/27/23 monthly AA+ Federal Home Loan Mortgage Corp. 07/27/28 4,941,979 10/27/23 quarterly AA+ Total $ 2,039,615,611 *Credit ratings are Standard & Poor ratings except for Florida Enhanced Cash which is a Fitch rating The County maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is displayed on the balance sheet under the heading of Cash and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County's investment policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (Florida PRIME), other Local Government Investment Pools rated AAAm/Aaa-mf, S1 or equivalent, local direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers' acceptances rated "AA" or higher, prime commercial paper rated "A-1" and "P-1", tax-exempt obligations rated "AA" or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County's master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the fair value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. Florida PRIME is an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. As of September 30, 2023, the County had $44,096,769 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool. All of these funds are held in the Florida PRIME pool. Florida PRIME is rated "AAAm" by Standard & Poor's Global Ratings Services. Florida Cooperative Liquid Assets Securities System (FLCLASS) is an intergovernmental investment pool established pursuant to the Florida Interlocal Cooperation Act of 1969, as amended, (Section 163.01, Florida Statutes) and is an authorized investment under Section 218.415, Florida Statutes. FLCLASS is supervised by a board of trustees comprised of eligible participants of the FLCLASS program. As of September 30, 2023, the County had $147,407,474 invested in FLCLASS. Of this amount, $21,548,434 was invested in the FLCLASS Daily Liquidity Fund and $125,859,040 was invested in the FLCLASS Enhanced Cash Pool. The FLCLASS Daily Liquidity Pool and the Enhanced Cash Pool are both rated "AAAm" by Standard and Poor's Global Ratings Services. Florida Public Assets for Liquidity Management (FL PALM) is a common law trust organized under the authority of the Florida Interlocal Cooperation Act of 1969, as amended, (Section 163.01, Florida Statutes) and Section 218.415 of the Florida Statutes. FL PALM was created on October 22, 2010 by contract among its participating governmental units and is governed by trustees. The fund is an investment opportunity for State school districts, political subdivisions of the State or instrumentalities of political 52 NOTE 2 - CASH AND INVESTMENTS (Continued) subdivisions of the State. As of September 30, 2023, the County had $153,063,577 invested in FL PALM Portfolio. The FL PALM Portfolio is rated "AAAm" by Standard and Poor's Global Ratings Services. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public Deposits Act". Under the Act, all qualified public depositories are required to pledge eligible collateral having a fair value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range from 25% to 150% depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. As of September 30, 2023, the County had demand deposits of $557,462,200. All balances in excess of the Federal Depository Insurance Corporation (FDIC) insurance for these demand deposits are fully collateralized by the multiple financial institutions' collateral pool in accordance with Florida Statutes Section 280. The discretely presented component unit demand deposits of $484,076 consist of demand deposits of $280,351 and a certificate of deposit for $203,725. These demand deposits are secured by the FDIC as individual entity balances do not exceed $250,000. The certificate of deposit balance does not exceed $250,000 and as such, is also secured by FDIC insurance. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The County's investment policy requires execution of a third -party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the County's name. CREDIT RISK The County's investment policy establishes limitations on portfolio composition in order to control the concentration of credit risk. The following maximum limits per sector, are established by policy: Sector U.S. Treasury U.S. Agencies Corporates Certificates of Deposit Repurchase Agreements Commercial Paper State Investment Pools INTEREST RATE RISK Investment Policy Limit 100% 80% - Maximum 40% per issuer 25% 30% 20% 25% 50% Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. The weighted average days to maturity (WAM) of Florida PRIME on September 30, 2023, was 35 days. The weighted average life (WAL) of Florida PRIME at September 30, 2023, was 75 days. The weighted average days to maturity (WAM) of the FL PALM Portfolio was 44 days, while the weighted average life (WAL) was 76 days. The weighted average days to maturity (WAM) of the FLCLASS Liquidity Pool on September 30, 2023, was 43 days, while the weighted average life (WAL) was 71 days. The weighted average days to maturity (WAM) of the FLCLASS Enhanced Cash Pool at September 30, 2023 was 178 days, while the weighted average life (WAL) was 221 days. Next interest rate reset dates for floating rate securities are used in the calculation of the respective weighted average days to maturity. 53 NOTE 2 — CASH AND INVESTMENTS (Continued) The portion of the County's cash and investments invested in U.S. Government Agencies is detailed as follows, at September 30, 2023: Issuer Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association Federal Agricultural Mortgage Corporation Total U.S. Government Agencies Reconciliation of cash and investments to the basic financial statements: Primary government: Cash and investments Cash with fiscal agent Restricted cash and investments - current Restricted cash and investments - noncurrent Fiduciary funds: Cash and investments Total FAIR VALUE MEASUREMENTS % of Portfolio 28.17% 2.18% 7.61 % 4.26% 0.51 % 42.73% $ 817,470,971 30,293,130 82,694,422 1,078,122,260 31,034,828 $ 2,039,615,611 GASB Statement No. 72, Fair Value Measurements and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GASB Statement No. 72 are described as follows: Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the County has the ability to access. Level 2 — Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability, - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs, if any, reflect the County's own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the County's own data. The County has the following recurring fair value measurements as of September 30, 2023: US Treasury Notes and Bills classified as Level 1 of the fair value hierarchy were valued using prices quoted in active markets for those securities. As of September 30, 2023, the fair value of the County's US Treasury Notes and Bills was $237,451,863. US Agency obligations and corporate notes classified as Level 2 of the fair value hierarchy were valued using quoted prices for similar assets in active markets for those securities. As of September 30, 2023, the fair value of the County's US Agency obligations was $817,707,173 and the fair value of its corporate notes was $51,927,761. 54 NOTE 3 — TRADE RECEIVABLES Trade receivables for Governmental and Business -type Activities are net of an allowance for doubtful accounts as follows: General Fund Bayshore Gateway Community Redevelopment Agency Grants and Shared Revenue Hurricane Ian Nonmajor Governmental Funds Total receivables reported in Governmental Funds Total receivables reported in Internal Service Funds Total Governmental Activities trade receivables County Water and Sewer Solid Waste Disposal Emergency Medical Services Nonmajor Enterprise Funds Total Business -type Activities trade receivables Less Allowance Trade for Doubtful Net Trade Receivables Accounts Receivables $ 1,031,257 $ 587,964 $ 443,293 12,720 12,720 - 5,565,565 128,117 5,437,448 6,614,846 - 6,614,846 5,893,817 3,571,871 2,321,946 19,118,205 4,300,672 14,817,533 1,734,435 18,562 1,715,873 $ 20,852,640 $ 4,319,234 $ 16,533,406 $ 21,068,694 $ 195,216 $ 20,873,478 1,245,979 17,801 1,228,178 28,934,064 25,959,658 2,974,406 35,814 14,242 21,572 $ 51,284,551 $ 26,186,917 $ 25,097,634 The County has multi and single-family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP) and the State Housing Initiatives Partnership Program (SHIP), in addition to some affordable housing impact fee programs. If the homeowners remain in their homes for the full term of the agreement, the loan or deferred impact fee is forgiven. If the property is transferred or sold before the end of the agreement, the proceeds from the repayment including interest, if any, are then repaid and returned to the appropriate program. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. 55 NOTE 4 - LEASE RECEIVABLES The County leases land, building, office space and equipment to third parties. As of September 30, 2023, the County's lease receivables were valued at $10,198,062 and the deferred inflow of resources associated with these leases that will be recognized as revenue over the term of the leases was $9,393,641. The lease receivables for Governmental and Business -type Activities at September 30, 2023, were as follows: GOVERNMENTAL ACTIVITIES Land leases - annual lease payments totaling $124,595 plus interest at a rate of 2.29%, due dates ranging from January 20, 2024 to December 30, 2048. $ 5,296,869 Building and office space leases - annual lease payments totaling $95,743 plus interest at a rate ranging from 1.26%- 2.31%, due dates ranging from October 1, 2023 to December 30, 2029. 434,726 Equipment leases - annual lease payments totaling $90,778 plus interest at a rate of 2.29%, due dates ranging from December 19, 2023 to May 21, 2030. 639,421 Total Governmental Activities Lease Receivables $ 6,371, 116 BUSINESS -TYPE ACTIVITIES Land leases - annual lease payments totaling $56,224 plus interest at a rate ranging from 0.15% to 3.00%, due dates ranging from October 1, 2023 to March 01, 2062. $ 2,257,474 Building and office space leases - annual lease payments totaling $180,785 plus interest at rates ranging from of 2.29%, to 3.00% due dates ranging from October 1, 2023 to November 01, 2032. 1,569,572 Total Business -type Activities Lease Receivables $ 3,827, 446 The payments for the lease receivables are expected to be received in the subsequent years as follows: Governmental Activities Fiscal Year Principal Interest 2024 $ 311,116 $ 140,275 2025 291,850 133,230 2026 311,528 126,384 2027 335,259 119,054 2028 369,598 111,307 2029-2033 1,297,316 460,179 2034-2038 1,575,975 305,916 2039-2043 1,330,878 118,233 2044-2048 547,496 32,765 2049-2053 - - 2054-2058 2059-2063 $ 6,371,016 $ 1,5 77,343 Business -Type Activities Principal Interest $ 237,010 $ 94,639 242,969 88,116 239,944 81,754 253,577 75,301 251,495 68,727 939,771 256,881 415,898 176,671 368,132 124,904 200,120 93,850 225,830 68,140 254,772 39,198 197,528 8,251 $ 3,827,046 $ 1,176,432 56 NOTE 4 - LEASE RECEIVABLES (Continued) The County has two leasing agreements which qualify to be treated as regulated in accordance with the requirements of GASB Statement No. 87, Leases. The County leases land and a building to third parties under these agreements. The land lease is for twenty one years with an option to extend for nine years and annual lease payments of $2,448. The building lease is for ten years and monthly lease payments of $1,753. The County recognized $18,230 in lease revenue during the current fiscal year related to these leases. As of September 30, 2023, the remaining nominal amount of revenue that will be recognized as revenue over the lease term associated with these leases amounts to $61,200 which is expected to be received for each of the subsequent five years and in five-year increments thereafter as stated below: Business -type Fiscal Year Activities 2024 $ 2,448 2025 2,448 2026 2,448 2027 2,448 2028 2,448 2029-2033 12,240 2034-2038 12,240 2039-2043 12,240 2044-2048 12,240 Total $ 61,200 NOTE 5 — INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances were made to funds for the purposes of capital acquisitions and improvements. Reimbursements will take place over the next several years as funds are available. Advances to and advances from other funds at September 30, 2023 were as follows: Governmental Activities: General fund Hurricane Ian Other governmental funds: Community Development Improvement Districts Fire Control Districts Tourist Development Economic and Innovation Zones County -Wide Capital Improvements Amateur Sports Complex Other Capital Projects Total Governmental Activities Business -type Activities: County Water and Sewer Total Business -type Activities Total Advances Advance To Advance From $ 2,268,100 $ 32,500,000 9,264 - - 73,701 - 268,100 17,200,000 - - 2,000,000 20,000,000 - - 17,200,000 73,701 9,264 39,551,065 52,051,065 12,500,000 12,500,000 $ 52,051,065 $ 52,051,065 57 NOTE 5 - INTERFUND PAYABLES AND RECEIVABLES (Continued) DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. Due from and due to other funds at September 30, 2023 were as follows: Governmental Activities: General Fund Bayshore Gateway Community Redevelopment Agency Grants and Shared Revenue Infrastructure Sales Tax Other Governmental Funds: Road Districts Unincorporated Area MSTD Community Development Water Management and Pollution Control Pelican Bay Improvement Districts Fire Control Districts Lighting District 911 Enhancement Fee Tourist Development State Housing Initiative Partnership 800 MHz IRCP Fund State Court Administration Utility Fee Conservation Collier Court Information Technology Court Services Court Facilities Fee Economic and Innovation Zones Other Public Safety Special Revenue Funds Other Special Revenue Funds Forest Lakes Limited General Obligation Bonds County -Wide Capital Improvements Parks Improvements Water Management Pelican Bay Capital Improvements Road Construction Other Capital Projects Total other governmental funds Business -type Activities: County Water and Sewer Solid Waste Disposal Emergency Medical Services Other Nonmajor Business -type Funds: Collier Area Transit Internal Service Funds: Self- Insurance Total All Funds Due From Due To $ 675,661 $ 3,739,579 - 396 455,234 11,949,311 359,955 77,972 180 1 871,275 111,271 3 4,691 52,056 - 64,294 - 92,579 198 22,758 - 11,241 - - 146,660 2,188,380 1,079 - 3,779 19,725 - 58,513 - 100,000 168 378,463 247 59,040 - - 288,240 70,000 - 90 - 73,558 107,640 21,477 - - 47 8,077 530,470 8,310 - 5,719 369,826 20,608 - 2,538,246 301 - 6,664,893 1,564,317 $ 653 $ 8,198 171,223 928 8,952,142 - 28,718 32,222 - $ 17,340,701 $ 17,340,701 58 NOTE 6 - CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2023 is as follows October 1, Transfers and September 30, 2022 Additions Deductions Reclassifications 2023 Governmental Activities: Capital assets not depreciated: Land and other non -depreciable assets $ 606,346,878 $ 14,390,956 $ (238,789) $ $ 620,499,045 Construction in progress - SBITA - 117,653 117,653 Construction in progress 122,496,593 138,422,796 (692,056) (90,121,763) 170,105,570 Total capital assets not depreciated 728,843,471 152,931,405 (930,845) (90,121,763) 790,722,268 Capital assets depreciated and amortized: Buildings 533,794,042 1,856,815 (1,268,859) 575,897 534,957,895 Infrastructure 1,214,549,918 354,733 37,161,755 1,252,066,406 Improvements other than buildings 393,149,295 991,827 (825,240) 49,721,180 443,037,062 Machinery and equipment 281,712,800 18,450,755 (9,396,852) 3,013,513 293,780,216 Right -to -use leased land 450,852 - (5,671) - 445,181 Right -to -use leased buildings 3,219,172 - (205,940) 3,013,232 Right -to -use leased equipment 5,677,660 236,866 (224,222) 5,690,304 Right -to -use SBITA - 11,031,804 - 11,031,804 Total capital assets depreciated and amortized 2,432,553,739 32,922,800 (11,926,784) 90,472,345 2,544,022,100 Less accumulated depreciation and amortization: Buildings 265,993,328 17,343,586 (697,872) 282,639,042 Infrastructure 595,047,804 38,930,262 633,978,066 Improvements other than buildings 237,643,437 17,472,320 (305,806) - 254,809,951 Machinery and equipment 203,515,255 24,637,236 (8,873,111) 350,582 219,629,962 Right -to -use leased land 112,283 38,933 (5,671) - 145,545 Right -to -use leased buildings 726,687 335,372 (205,940) 856,119 Right -to -use leased equipment 1,605,219 657,675 (224,222) 2,038,672 Right -to -use SBITA - 1,991,724 - 1,991,724 Total accumulated depreciation and amortization 1,304,644,013 101,407,108 (10,312,622) 350,582 1,396,089,081 Total depreciable capital assets, net 1,127,909,726 (68,484,308) (1,614,162) 90,121,763 1,147,933,019 Total Governmental Activities capital assets, net $ 1,856,753,197 $ 84,447,097 $ (2,545,007) $ - $ 1,938,655,287 Business -type Activities: Capital assets not depreciated Land and other non -depreciable assets $ 33,175,380 $ 370,050 $ (1,365) $ - $ 33,544,065 Construction in progress 144,950,307 52,140,461 (437,752) (29,043,117) 167,609,899 Total capital assets not depreciated 178,125,687 52,510,511 (439,117) (29,043,117) 201,153,964 Capital assets depreciated and amortized: Buildings 178,184,611 12,247 (2,070) 716,316 178,911,104 Improvements other than buildings 1,479,323,919 24,877,818 (7,252,894) 26,349,036 1,523,297,879 Machinery and equipment 102,581,932 6,064,249 (2,432,753) 1,627,183 107,840,611 Right -to -use leased buildings 726,978 - - 726,978 Right -to -use leased equipment 156,982 216,440 (22,136) 351,286 Right -to -use SBITA - 520,570 - 520,570 Total capital assets depreciated and amortized 1,760,974,422 31,691,324 (9,709,853) 28,692,535 1,811,648,428 Less accumulated depreciation and amortization Buildings 111,809,022 4,674,820 (2,070) 116,481,772 Improvements other than buildings 684,080,224 47,031,717 (6,005,638) 725,106,303 Machinery and equipment 66,401,354 8,100,869 (2,427,298) (350,582) 71,724,343 Right -to -use leased buildings 202,748 67,521 270,269 Right -to -use leased equipment 95,210 37,543 (22,136) 110,617 Right -to -use SBITA - 43,567 43,567 Total accumulated depreciation and amortization 862,588,558 59,956,037 (8,457,142) (350,582) 913,736,871 Total depreciable capital assets, net 898,385,864 (28,264,713) (1,252,711) 29,043,117 897,911,557 Total Business -type Activities capital assets, net $ 1,076,511,551 $ 24,245,798 $ (1,691,828) $ $ 1,099,065,521 59 NOTE 6 - CAPITAL ASSETS (Continued) Schedule of depreciation and amortization for fiscal year 2023: General Government $ 8,979,349 Public Safety 24,604,239 Physical Environment 10,535,031 Transportation 36,417,458 Economic Environment 587,656 Human Services 305,859 Culture and Recreation 15,828,893 Subtotal 97,258,485 Internal Service Funds 4,148,623 Total Governmental Activities $ 101,407,108 Water and Sewer $ 50,620,923 Solid Waste 2,078,938 EMS 2,446,815 Airport Authority 2,610,681 Mass Transit 2,198,680 Total Business -type Activities $ 59,956,037 NOTE 7 - LONG-TERM DEBT SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations for the year ended September 30, 2023: Governmental Activities: Revenue Bonds Payable Premiums on Bonds Payable Direct Placement Loans and Notes Discount on Direct Placement Loan Commercial Paper Loans Leases Payable SBITA Liability Self -Insurance Claims Compensated Absences Total Business -type Activities: Revenue Bonds Payable Premium on Bonds Payable Direct Placement Loans and Notes Developer Note Payable Leases Payable SBITA Liability Landfill Closure Liability Compensated Absences Total 000's Omitted Premium/ October 1, Discount September Due within 2022 Additions Reductions Amortized 30, 2023 one year $ 160,200 $ $ (7,630) $ - $ 152,570 $ 3,990 18,480 (1,201) 17,279 - 209,164 (22,605) - 186,559 26,751 (185) 15 (170) - 1,000 1,500 - - 2,500 - 7,309 237 (936) 6,610 866 - 9,310 (1,588) 7,722 1,696 11,883 78,425 (76,234) 14,074 11,657 36,595 14,788 (11,761) 39,622 13,778 $ 444,446 $ 004,260 $ (120,754) $ (1,186) $ 226,766 $ 58,738 $ 251,135 $ $ (50,210) $ - $ 200,925 $ 2,210 42,164 (8,033) (1,701) 32,430 - 67,624 49,945 (11,539) 106,030 11,763 70 - - 70 70 607 217 (98) 726 95 - 496 (59) 437 56 1,387 60 - 1,447 41 4,092 3,258 (3,018) 4,332 3,465 $ 367,079 $ 53,976 $ (72,957) $ (1,701) $ 446,397 $ 17,700 Liabilities, including compensated absences, are liquidated by the individual fund to which the liability is directly associated. NOTE 7 — LONG-TERM DEBT (Continued) DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2023 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Revenue Bonds $62,965,000 2018 Tourist Development Tax Revenue Bonds, due in annual installments of $1,030,000 to $3,605,000 through October 1, 2048; interest at 4.00% to 5.00% and collateralized by a pledge on tourist development tax revenues. Bonds were issued for purposes of financing the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. $ 58,570,000 $75,100,000 2020A Special Obligation Revenue Bonds, due in annual installments of $165,000 to $6,045,000 through October 1, 2045; interest at 4.00% to 5.00% and collateralized by a pledge on legally available non - ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of providing funding for the acquisition, construction and and equipping of various capital improvements and refunding a commercial paper loan. 74,740,000 $24,075,000 2020B Taxable Special Obligation Revenue Bonds, due in annual installments of $2,275,000 to $2,920,000 through October 1, 2029; interest at 2.00% and collateralized by a pledge on legally available non - ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of financing the purchase of certain real property. 19,260,000 Total Governmental Activities Revenue Bonds Governmental Activities Direct Placement Loans $ 152,570,000 $89,780,000 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.69% and collateralized by a pledge on the combined gas tax proceeds. Loan was issued to advance refund a portion of the County's 2005 Gas Tax Revenue Bonds. $ 26,230,000 $43,713,000 2017 Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $113,000 to $3,724,000 through July 1, 2034; interest at 3.09% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to advance refund a portion of the County's 2010 Special Obligation Revenue Bonds. 35,329,000 $28,060,000 2019 Taxable Special Obligation Taxable Revenue Note (Bank Term Loan) due in annual installments of $1,555,000 to $5,165,000 through October 1, 2029; interest at 2.74% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to acquire the real property known as the Golden Gate Golf Course. 25,880,000 $32,865,000 2022A Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $8,425,000 to $1,540,000 through October 1, 2029; interest at 1.43% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to refund the Series 2011 Special Obligation Refunding Revenue Bonds. 24,440,000 M NOTE 7 — LONG-TERM DEBT (Continued) $75,560,000 2022B Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $8,295,000 to $570,000 through October 1, 2035; interest at 1.85% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to refund the Series 2013 Special Obligation Refunding Revenue Bonds. 74,680,000 Total Governmental Activities Direct Placement Loans Governmental Activities Commercial Paper Loans $ 186,559,000 $2,500,000 Commercial Paper Loan issued by the Florida Local Government Finance Commission Pooled Commercial Paper Program due on June 1, 2027; monthly variable interest for the current fiscal year of 3.56% to 4.70%, based on the underlying commercial paper that is purchased and collateralized by all legally available non -ad valorem revenues. Loan was issued for purposes of constructing sidewalk improvements in the Pelican Bay Services District. $ 2,500,000 Total Governmental Activities Commercial Paper Loans $ 2,500,000 Total Governmental Activities Obligations 341,629,000 Unamortized Direct Placement Loan Discount (170,736) Unamortized Bond Premiums 17,279,300 Total Unamortized Bond Premiums and Discounts, net 17,108,564 Governmental Activities Obligations, Net 358,737,564 Less Current Portion of Governmental Activities Obligations (30,741,000) Long -Term Portion of Governmental Activities Obligations, Net $ 327,996,564 BUSINESS -TYPE ACTIVITIES Business -type Activities Revenue Bonds $76,185,000 2019 Collier County Water and Sewer Revenue Bonds due in annual installments of $4,385,000 to $14,160,000 through July 1, 2039; interest at 3.00% to 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements within the Collier County Water and Sewer District. $ 76,185,000 $128,900,000 2021 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,055,000 to $11,300,000 through July 1, 2046; interest at 4.00% to 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of financing the acquisition, construction and equipping of various water and wastewater improvements within the Collier County Water and Sewer District. 124,740,000 Total Business -type Activities Revenue Bonds Business -type Activities Direct Placement Loans $35,965,000 2018 Collier County Water and Sewer Revenue Bond (Bank Term Loan) due in annual installments of $1,560,000 to $3,945,000 through July 1, 2029; interest at 2.41 % and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to finance the acquisition of water and wastewater utility facilities within the Golden Gate Community. $ 200,925,000 21,650,000 62 NOTE 7 — LONG-TERM DEBT (Continued) $49,945,000 2023 Taxable Collier County Water and Sewer Revenue Bond (Bank Term Loan) due in annual installments of $270,000 to $7,090,000 through July 1, 2036; interest at 4.15% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to refund the Series 2016 Collier County Water and Sewer Refunding Revenue Bonds. 49,945,000 Total Business -type Activities Direct Placement Loans Business -type Activities Note Payable $ 71,595,000 $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits. Non -interest bearing agreement. $ 69,848 $89,982,000 2016 County Water and Sewer District Refunding Revenue Note with Synovus Financial Corporation, due in monthly installments of $2,881,000 to $9,574,000 through July 1, 2029; interest at 1.80% and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. Loan was issued to currently refund all of the District's State Revolving Fund Loans. $ 34,435,000 Total Business -type Activities Note Payable Total Business -type Activities Obligations Unamortized Bond Premiums Business -type Activities Obligations, Net Less Current Portion of Business -type Activities Obligations Payable from Unrestricted Assets Less Current Portion of Business -type Activities Obligations Payable from Restricted Assets Long -Term Portion of Business -type Activities Obligations, Net SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY $ 34,504,848 $ 307,024,848 $ 32,430,221 $ 339,455,069 $ (10,479,750) (3,563,098) $ 325,412,221 The total annual debt service requirements to maturity of long-term debt, excluding compensated absences, premiums, discounts and arbitrage rebate liability, are as follows: Fiscal Year 2024 2025 2026 2027 2028 2029-33 2034-38 2039-43 2044-48 2049-53 Total Revenue Bonds Governmental Activities Direct Placement Loans and Notes Payable Commercial Paper Loans Totals Principal Interest Principal Interest Principal Interest $ 3,990,000 $ 5,987,550 $ 26,751,000 $ 4,141,518 $ $ 450,000 $ 41,320,068 4,110,000 5,863,500 27,246,000 3,517,806 450,000 41,187,306 4,235,000 5,734,900 14,309,000 2,869,089 450,000 27,597,989 4,365,000 5,601,575 14,603,000 2,544,824 2,500,000 405,000 30,019,399 4,500,000 5,463,275 14,955,000 2,198,749 - - 27,117,024 25,015,000 24,630,075 65,006,000 6,091,196 120,742,271 31,180,000 18,351,350 23,689,000 629,325 73,849,675 38,080,000 11,346,600 - - 49,426,600 33,490,000 3,440,600 36,930,600 3,605,000 72,100 3,677,100 $152,570,000 $ 86,491,525 $186,559,000 $ 21,992,507 $ 2,500,000 $ 1,755,000 $451,868,032 M NOTE 7 — LONG-TERM DEBT (Continued) Business -type Activities Fiscal Direct Placement Loans Developer Year Revenue Bonds and Notes Payable Note Payable Totals Principal Interest Principal Interest Principal Interest 2024 $ 2,210,000 $ 7,992,181 $ 11,763,000 $ 3,214,313 $ 69,848 $ $ 25,249,342 2025 2,320,000 7,881,681 11,429,000 2,980,711 - 24,611,392 2026 2,435,000 7,765,681 10,103,000 2,752,602 23,056,283 2027 2,560,000 7,643,931 8,941,000 2,547,811 21,692,742 2028 2,685,000 7,515,931 8,683,000 2,357,012 21,240,943 2029-33 34,455,000 34,098,557 34,681,000 8,062,865 111,297,422 2034-38 64,210,000 25,516,432 20,430,000 1,718,722 111,875,154 2039-43 57,435,000 12,581,000 - - 70,016,000 2044-48 32,615,000 2,643,200 - - - 35,258,200 Total $200,925,000 $113, 338,594 $106, 330,000 $ 23, 334,036 $ 69,848 $ $444, 997,478 CURRENT YEAR FINANCING ACTIVITIES On January 17, 2023, the Collier County Water and Sewer District (District) issued the Series 2023 Taxable Water and Sewer Refunding Revenue Bond (Bank Term Loan) in the par amount of $49,945,000. This taxable bond was issued for the purpose of refunding all of the District's outstanding County Water and Sewer Refunding Revenue Bonds, Series 2016. The final maturity of the Series 2023 Taxable Water and Sewer Refunding Revenue Bond is July 1, 2036, with an interest rate of 4.15%. The taxable refunding achieved a net present value savings of 3.24% on the refunded bonds, an aggregate debt service savings of $1,869,097 and an economic gain of $1,583,910. The Series 2023 Taxable Water and Sewer Refunding Revenue Bond was issued as a direct placement financing, secured with a lien on parity with all outstanding senior lien Collier County Water and Sewer Revenue Bonds. On July 1, 2026, the Series 2023 Bond is scheduled to be exchanged for a Series 2026 tax exempt bond paying fixed interest at 3.39%. The refunding, assuming an exchange to a tax-exempt Series 2026 Bond, will achieve a net present value savings of 7.31 % on the refunded debt and an aggregate debt service savings of $4,395,527. The refunded Series 2016 Collier County Water and Sewer Refunding Revenue Bonds have a redemption date of July 1, 2026. On October 6, 2022, Collier County issued a $1,500,000 commercial paper loan through the Florida Local Government Finance Commission's Pooled Commercial Paper Program. The loan was issued for purposes of sidewalk improvements in the Pelican Bay Services Municipal Services Taxing and Benefit Unit. The loan bears monthly variable interest and is collateralized by all legally available non -ad valorem revenues as defined in the loan agreement. DEFEASED DEBT The County has defeased certain outstanding bonds by placing the proceeds of new debt in an irrevocable trust to provide for all future debt service payment on the defeased bonds. Accordingly, the trust account and the defeased bonds are not included in the County's financial statements. As of September 30, 2023, the following issue was considered defeased: Original Debt Defeased Bonds Defeased Outstanding 2016 County Water and Sewer Refunding Revenue Bonds $48,105,000 $48,105,000 RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2020A and 2020B Taxable Special Obligation Refunding Revenue Bonds and Series 2017, 2019 and 2022A and 2022B Special Obligation Refunding Revenue Notes (bank term loan), the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment if necessary, from non -ad valorem revenues amounts sufficient to pay principal and interest on the combined Special Obligation Bonds and Notes. The total non -ad valorem revenue collections pledged to payment of the Special Obligation Bonds and Notes for the fiscal year ended September 30, 2023 was $162,869,951. 64 NOTE 7 — LONG-TERM DEBT (Continued) According to County resolutions authorizing the issuance of the Series 2014 Gas Tax Refunding Revenue Bond (bank term loan), the issue is payable from and secured by a lien on gas tax revenues. Total pledged gas tax revenue collections for the fiscal year ended September 30, 2023 were $24,846,062. According to County resolutions authorizing the issuance of the Series 2018 Tourist Development Tax Revenue Bonds, the issues are payable from and secured by a lien on tourist development tax revenues. Total tourist development tax revenues for the fiscal year ended September 30, 2023 were $44,107,953. The covenants of the loan agreement authorizing the Florida Local Government Finance Commission pooled commercial paper loans include appropriation in the annual budget, by amendment, if necessary, of amounts of non -ad valorem revenues or other legally available funds sufficient to satisfy the loan repayments. The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating expenses, to repay $272,520,000 in Series 2018, 2019, 2021 and 2023 senior lien revenue bonds and direct placement loans. Proceeds from the bonds and loans were used for the expansion of the District's water and sewer systems as well as the refinancing of bonds issued for purposes of rehabilitation or expansion of the District's water and sewer systems. Principal and interest are payable through July 1, 2046, solely from the net revenues and certain other fees and charges derived from operation of the County's Water and Sewer District (District). The pledge of net revenues by the District from the operation of the system does not constitute a lien upon the system or any other property of the County. The resolutions authorizing the revenue bonds include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions, which together with system development fees (impact fees) and special assessment proceeds (if applicable) received shall be at least 125% of the annual debt service requirements for the bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on the bonds. Fiscal year 2023 pledged revenues, net of operating expenses (excluding depreciation and amortization), were $83,652,362, and $101,239,179 when system development fees were included. Principal and interest paid on the bonds during fiscal year 2023 totaled $16,460,530, providing coverage of 508% and 615%, respectively. In addition, bond covenants require a renewal and replacement amount equal to $300,000 in the District funds. The District was in compliance with these covenants for the year ended September 30, 2023. In addition, the District has a note outstanding in the amount of $34,435,000 with Synovus Financial Corporation. This note is collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and system development fees. The lien is subordinate in all respects to the liens placed upon pledged revenues established by bonded and direct placement loan indebtedness. The District's note was in compliance with these covenants for the year ended September 30, 2023. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. LEASES PAYABLE The County is a lessee for noncancellable leases of land, building, office space and equipment. At September 30, 2023, the County's lease payable of $7,335,790 was composed of the following: GOVERNMENTAL ACTIVITIES Leases with options to purchase equipment - annual payments totaling $381 plus interest at a rate of 2.93%, due date of August 01, 2026. $ 1,101 Land leases - annual payments totaling $38,254 plus interest at rates ranging from 1.51 % to 2.11 %, due dates ranging from October 1, 2023 to July 1, 2051. 302,266 Building and office space leases - annual payments totaling $249,118 plus interest at rates ranging from 0.79% to 2.11%, due dates ranging from October 1, 2023 to December 1, 2039. 2,353,799 Equipment and vehicle leases - annual payments totaling $578,115 plus interest at rates ranging from 0.16% to 4.33%, due dates ranging from October 1, 2023 to September 1, 2033. 3,952,579 Total Governmental Activities Leases Payable M $ 6,609, 445 NOTE 7 - LONG-TERM DEBT (Continued) BUSINESS -TYPE ACTIVITIES Building and office space leases- annual payments totaling $66,939 plus interest at rates ranging from 1.59% to 1.93%, due dates ranging from October 1, 2023 to September 1, 2034. $ 479,578 Equipment leases - annual payments totaling $28,137, plus interest at rates ranging from 1.55%to 4.17%, due dates ranging from October 1, 2023 to Feb 1, 2048. 246,467 Total Business -type Activities Leases Payable $ 726,045 The future principal and interest Lease payments as of September 30, 2023, were as follows Fiscal Year 2024 2025 2026 2027 2028 2029-2033 2034-2038 2039-2043 2044-2048 2049-2052 Total SBITA LIABILITY Governmental Activities Principal Interest $ 865,867 $ 91,684 728,631 79,294 652,290 68,516 615,286 58,999 581,802 50,824 2,319,459 160,807 666,290 52,583 177,921 2,471 1,331 169 868 32 $ 6,609,745 $ 565,379 Business -type Activities Principal Interest $ 95,076 $ 17,213 72,415 15,733 72,915 14,476 43,759 13,371 34,524 12,700 191,179 51,764 64,094 35,447 65,020 24,819 87,063 8,178 $ 726,045 $ 193,701 The County is a customer for noncancellable arrangements for software, software as a service and other intangible right of use assets. At September 30, 2023, the County's SBITA liability of $8,158,880 was composed of the following: GOVERNMENTAL ACTIVITIES SBITA Arrangements - annual payments totaling $1,696,006, plus interest with rates ranging from .34% to 4.71 %, due dates ranging from October 1, 2023 to October 1, 2027. $ 7,722,100 Total Governmental Activities SBITA Liability $ 7,722, 000 BUSINESS -TYPE ACTIVITIES SBITA Arrangements - annual payments totaling $55,919, plus interest at a rate of 4.18%, due dates ranging from February 28, 2024 to February 28, 2029. $ 436,780 Total Business -type Activities SBITA Liability $ 436,780 The future principal and interest SBITA payments as of September 30, 2023, were as follows: Fiscal Year 2024 2025 2026 2027 2028 2029-2033 2034-2038 Total Governmental Activities Principal Interest $ 1,696,006 $ 250,131 1,543,323 188,474 1,397,468 131,880 1,483,477 72,949 885,399 23,070 706,941 51,972 9,486 23 $ 7,722, 000 $ 718,499 Business -type Activities Principal Interest $ 55,919 $ 16,531 62,246 13,826 68,756 11,120 75,734 8,136 82,925 5,139 91,200 1,267 $ 436,780 $ 56,019 NOTE 8 — CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi -family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuing authority, nor the County, has extended any additional commitments for debt service payments of the bonds beyond the collateral and the payments from the private -sector entities on the underlying mortgage or promissory notes and maintenance of the tax-exempt status of the conduit debt obligation and as such are not reported as liabilities in the accompanying financial statements. As of September 30, 2023, the outstanding principal amount payable on all component unit conduit debt was $518,595,941 and is made up of the following: Industrial development revenue bonds $ 244,599,489 Housing finance revenue bonds 77,874,658 Health facilities revenue bonds 186,161,618 Educational facilities revenue bonds 9,960,176 Total $ 518,595,941 NOTE 9 — DEFINED BENEFIT PENSION PLANS BACKGROUND The Florida Retirement System (FRS) Pension Plan was created by Chapter 121, Florida Statutes, effective December 1, 1970. The FRS is a qualified retirement plan under Section 401(a), Internal Revenue Code, created to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits are defined and described in detail. Such provisions may be amended at any time by the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' web site (www.dms.myflorida.com). The County's pension expense totaled $116,505,130 for both the FRS Pension Plan and HIS Plan for the year ended September 30, 2023. FLORIDA RETIREMENT SYSTEM PENSION PLAN PLAN DESCRIPTION The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class — Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class — Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) — Members in senior management level positions. M NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of - living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 96 months after electing to participate. Certain instructional personnel may extend their participation for an additional 24 months beyond their initial 96-month participation period. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. The following chart shows the percentage value for each year of service credit earned: % Value (per year of Class, Initial Enrollment and Retirement Age/Years of Service: _ service) Regular Class members initially enrolled before July 1, 2011 Retirement up to age 62 or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68 Regular Class members initially enrolled on or after July 1, 2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68 Elected County Officers' Class 3.00 Senior Management Service Class 2.00 Special Risk Class Service from December 1, 1970 through September 30, 1974 2.00 Service on and after October 1, 1974 3.00 As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. W. NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) CONTRIBUTIONS The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer contribution rates by job class for the periods from October 1, 2022 through June 30, 2023 and from July 1, 2023 through September 30, 2023, respectively, were as follows: Regular employees — 11.91 % and 13.57%; Special Risk — Regular-27.83% and 32.67%; County Elected Officials — 57.00% and 58.68%1- Senior Management Services — 31.57% and 34.52%; and DROP participants — 18.60% and 21.13%. The County's contributions to the FRS Plan were $41,265,309 for the year ended September 30, 2023. PENSION COSTS At September 30, 2023, the County reported a liability of $330,130,697 for its proportionate share of the FRS Plan's net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2023. The County's proportion of the net pension liability was based on the County's contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2022, through June 30, 2023, relative to the total employer contributions received from all of FRS's participating employers. At June 30, 2023, the County's proportion was 0.828499%, which was an increase of 0.043396% from its proportion measured as of June 30, 2022. For the year ended September 30, 2023, the County recognized pension expense of $70,199,397 for its proportionate share of FRS's pension expense. In addition, the County reported its proportionate share of FRS's deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences Between Expected and Actual Economic Experience $ 30,996,425 $ Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date Total 21,520,657 13,787,150 - 15,723,756 7,237,229 11,361,869 - $ 93,389,857 $ 7,237,229 Deferred outflows of resources related to pensions of $11,361,869, resulting from County contributions to the FRS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as increases or decreases in pension expense as follows: Year Ending September 30 Amount 2024 $ 10,497,877 2025 (2,065,776) 2026 56,340,924 2027 7,845,448 2028 2,172,286 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.25%, including inflation Investment Rate of Return 6.70%, Net of Pension Plan investment expense At NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018. The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward -looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation, as outlined in the FRS Plan's investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Cash 1.0% Fixed income 19.8% Global equity 54.0% Real estate (property) 10.3% Private equity 11.1 % Strategic investments 3.8% Totals 100.0% Assumed Inflation - Mean DISCOUNT RATE Compound Annual Annual Arithmetic (Geometric) Standard Return Return Deviation 2.9% 2.9% 1.1 % 4.5% 4.4% 3.4% 8.7% 7.1 % 18.1 % 7.6% 6.6% 14.8% 11.9% 8.8% 26.3% 6.3% 6.1 % 7.7% 2.4% 1.4% The discount rate used to measure the total pension liability for the FRS Plan in fiscal year 2023 was 6.70% which was the same as in fiscal year 2022. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Description Discount Rate FRS Plan Discount Rate 5.70% County's Proportionate Share of the FRS Plan Net Pension Liability $563,930,452 PENSION PLAN FIDUCIARY NET POSITION Current Discount 1 % Increase in Rate Discount Rate 6.70% $330,130,697 7.70% $134,529,226 Detailed information about the FRS Plan's fiduciary net position is available in a separately -issued FRS Pension Plan and Other State -Administered Systems Annual Comprehensive Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. RETIREE HEALTH INSURANCE SUBSIDY PROGRAM PLAN DESCRIPTION The Retiree Health Insurance Subsidy Program (HIS Plan) is a non -qualified, cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. 70 NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. BENEFITS PROVIDED For the fiscal year ended June 30, 2023, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. CONTRIBUTIONS The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. The FRS contribution rates include a 1.66% HIS Plan subsidy for the periods October 1, 2022 through June 30, 2023 and a 2.00% HIS Plan subsidy from July 1, 2023 through September 30, 2023, pursuant to Section 112.363, Florida Statutes. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County's contributions to the HIS Plan were $5,184,935 for the year ended September 30, 2023. PENSION COSTS At September 30, 2023, the County reported a liability of $118,790,106 for its proportionate share of the HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2023. The projected HIS benefits to be paid out in the next fiscal year exceed the fiduciary net position of the HIS Plan as of the end of the fiscal year. As such, the County has reported its proportion of the excess of the projected benefit payment over the fiduciary net position as a current liability. The County's proportion of the net pension liability was based on the County's contributions received during the measurement period for employer payroll paid dates from July 1, 2022, through June 30, 2023, relative to the total employer contributions received from all participating employers. At June 30, 2023, the County's proportion was 0.747986%, which was an increase of 0.054615% from its proportion measured as of June 30, 2023. For the year ended September 30, 2023, the County recognized pension expense of $46,305,733 for its proportionate share of HIS's pension expense. In addition, the County reported its proportionate share of HIS's deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on HIS Program Investments Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date Total Deferred Outflows of Resources $ 1,739,005 3,122,956 61,346 Deferred Inflows of Resources $ 278,819 10,293,564 7,298,355 917,260 951,243 $ 13,172,905 $ 11,489,643 71 NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) Deferred outflows of resources related to pensions of $951,243, resulting from County contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as increases or decreases in pension expense as follows: Year Ending September 30 Amount 2024 $ 503,621 2025 560,357 2026 175,065 2027 (745,094) 2028 23,749 Thereafter 214,321 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.25%, including inflation Municipal Bond Rate 3.65% Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018. DISCOUNT RATE The discount rate used to measure the total pension liability for HIS plan increased from 3.54% in fiscal year 2022 to 3.65% in fiscal year 2023. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current 1 % Increase in Description Discount Rate Discount Rate Discount Rate HIS Plan Discount Rate 2.65% 3.65% 4.65% County's Proportionate Share of the HIS Plan Net Pension Liability $135,520,970 $118,790,106 $104,921,341 PENSION PLAN FIDUCIARY NET POSITION Detailed information about the HIS Plan's fiduciary's net position is available in a separately -issued FRS Pension Plan and Other State -Administered Systems Annual Comprehensive Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. SUMMARY The aggregate amount of net pension liability, related deferred outflows of resources and deferred inflows of resources and pension expense for the County's defined benefit pension plans are summarized below: 72 NOTE 9 - DEFINED BENEFIT PENSION PLANS (Continued) FRS Plan HIS Plan Total Net pension liability $ 330,130,697 $ 118,790,106 $ 448,920,803 Deferred outflows of resources related to pensions 93,389,857 13,172,905 106,562,762 Deferred inflows of resources related to pensions 7,237,229 11,489,643 18,726,872 Pension expense 70,199,397 46,305,733 116,505,130 Liabilities associated with the Florida Retirement System and Retiree Health Insurance Subsidy Program are liquidated in the individual fund to which the liability is directly associated. i;t09:9111011AaIZ14RZd17►111 111111Is] ►IaA_1Z The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBAs annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of .06% of payroll from July 1, 2022 to June 30, 2023 and .06% of payroll from July 1, 2023 to June 30, 2024 in addition to forfeited benefits of plan members. The County's Investment Plan pension expense totaled $9,921,244 for the year ended September 30, 2023. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2023, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. NOTE 11 — TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to the fund that statute or budget requires they be expended from, (2) account for payments in lieu of taxes not based on an approximation of services rendered, (3) move receipts restricted to debt service to the debt service fund as payments become due and (4) use unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations. Transfers of note include the General Fund transfer of $23.9 million to the Road Districts fund and $25.4 million to the Emergency Medical Services fund to support operations. The General Fund also transferred $49.5 million to the County -Wide Capital Improvements fund to fund various projects such as $7 million for the Golden Gate Golf Course, $3.5 million for new air conditioners, $2.6 million for parking lot improvements and $1 million for the County's financial software upgrade. The Road Construction fund transferred $11.3 million to the Gas Tax Revenue Bonds fund for debt service payments. The Unincorporated Area MSTD transferred $5.4 million to the Water Management fund to help fund the Harbor Lane/Brookside stormwater project. 73 NOTE 11 - TRANSFERS (Continued) Transfers for the year ended September 30, 2023 were as follows: Transfers from Fund Transfers to Fund Governmental Activities: General Fund Grants and Shared Revenue Hurricane Ian Nonmajor Governmental Funds. County Water and Sewer Emergency Medical Services Nonmajor Business -type Internal Service Funds Bayshore Gateway Community Redevelopment Agency General Fund Immokalee Community Redevelopment Agency General Fund Bayshore Gateway Community Redevelopment Agency Grants and Shared Revenues Nonmajor Governmental Funds Infrastructure Sales Tax Grants and Shared Revenues Nonmajor Governmental Funds General Fund Bayshore Gateway Community Redevelopment Agency Immokalee Community Redevelopment Agency Grants and Shared Revenue Nonmajor Governmental Funds County Water and Sewer Internal Service Funds Business -type Activities: County Water and Sewer General Fund Immokalee Community Redevelopment Agency Nonmajor Governmental Funds Solid Waste Disposal Emergency Medical Services Nonmajor Business -type Internal Service Funds Solid Waste Disposal General Fund Internal Service Funds Emergency Medical Services Internal Service Funds Nonmajor Business -type General Fund Nonmajor Governmental Funds Internal Service Funds Internal Service Funds General Fund Nonmajor Governmental Funds Total Transfers Amount $ 1,943,299 2,000,000 118,721,552 653 25,429,400 5,659,101 8,798,400 53,800 53,800 84,900 18,000 77,972 10,282,618 136,800 92,800 3,515,535 55,354,114 2,252,548 2,084,200 10,298,081 19 1,439,415 1,122,387 4,257 1,309 2,083,460 684,786 235,600 7,700 250,000 112,200 48,400 76,600 113,400 $ 253,037,106 74 NOTE 12 — NET POSITION/FUND BALANCE CLASSIFICATION Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and is categorized as follows: Net investment in capital assets: Total capital assets, net of debt issued and deferred amounts on refundings related to the acquisition of these assets and net of depreciation is reported separately in the net position section. Restricted for growth related capital expansion: Impact fees are restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for community development: Building and permitting fees restricted for licensing, permitting and inspection services. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of ad valorem revenues restricted for the maintenance and management of environmentally sensitive land. Restricted for community redevelopment: Tax increment revenues generated in the redevelopment areas are restricted for redevelopment purposes. Restricted for infrastructure sales tax capital projects: Infrastructure sales tax proceeds are restricted for infrastructural capital improvements. Restricted for grants: State and federal government grant monies restricted for grant related purposes. Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long-term debt. Restricted for court programs: Balances are restricted for court programs. Restricted for public safety: Balances are restricted for public safety programs. Restricted for nonexpendable purposes — other: Balances are restricted in conjunction with the maintenance and management of certain conservation lands for mitigation purposes. Restricted for special revenues — other: Balances are restricted for specific uses associated with the revenue collected. Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of County Water and Sewer District Bonds for use in funding the cost of additions, replacement or major repair of District capital assets. Unrestricted: Balances are not restricted for specific purposes. Governmental funds report fund balances as either spendable or non -spendable as follows: Non -spendable fund balance: Amounts that are not in spendable form orthat are legally or contractually required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of advances, loans and notes receivable. Spendable fund balance: Restricted fund balance — Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors; or imposed by law through constitutional provisions or enabling legislation. Committed fund balance — Amounts that can be spent only for specific purposes determined by the County's highest decision making authority, the Board of County Commissioners, via ordinance. Commitments may be modified or removed by the Board of County Commissioners only by amending the ordinance that created the original commitment. Assigned fund balance — Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners, but that are neither restricted nor committed to the specific purpose. Unassigned fund balance — Unassigned fund balance is the residual classification for the County's general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless prohibited by law, grant agreements or other contractual arrangement. Further, when committed fund balance is available the County will 75 NOTE 12 - NET POSITION/FUND BALANCE CLASSIFICATION (Continued) use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. A detailed schedule of fund balances at September 30, 2023 is as follows: Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Infrastructure Governmental Governmental Fund Agency Agency Revenue Hurricane Ian Sales Tax Funds Funds Nonspendable: Endowments $ $ $ $ $ $ $ 5,522,800 $ 5,522,800 Inventory 1,045,493 1,567,345 2,612,838 Advances to other funds 2,268,100 - 2,268,100 Notes 1,490,839 - 1,490,839 Prepaid costs 384,964 20,451 87,138 492,553 Total nonspendable fund balance 5,189,396 20,451 7,177,283 12,387,130 Restricted for: Community redevelopment $ $ 14,298,670 $ 3,182,050 $ $ $ $ $ 17,480,720 Federal and state grants 75,789 - - 14,125,813 9,691,818 23,893,420 Infrastructure sales tax capital projects - - 345,032,703 - 345,032,703 Bond covenants or debt service - 6,701,883 6,701,883 Parks and recreation 11,197,057 11,197,057 Parks growth related capital expansion 56,082,233 56,082,233 Transportation capital projects 63,348,329 63,348,329 Transportation growth related capital 127,426,143 127,426,143 Community development 36,519,991 36,519,991 Tourist development 125,712,602 125,712,602 Conservation Collier 72,754,263 72,754,263 Emergency 911 growth related capital expansion 1,538,866 1,538,866 Public safety 6,303,824 6,303,824 Law enforcement growth related capital expansion 5,303,071 5,303,071 General government facilities growth related capital expansion 3,176,168 3,176,168 Water management 38,433,518 38,433,518 Libraries 514,406 514,406 Court functions 11,188,594 11,188,594 Public records modernization 6,769,542 6,769,542 Other purposes 5,265,011 5,265,011 Total restricted fund balance 75,789 14,298,670 3,182,050 14,125,813 345,032,703 587,927,319 964,642,344 Committed for: Special districts - - - - - 44,805,721 44,805,721 Natural resource management 4,033,836 4,033,836 Utility regulation 1,114,050 1,114,050 Economic development 3,521,207 3,521,207 Other purposes 5,255,621 5,255,621 Total committed fund balance 58,730,435 58,730,435 Assigned for: Parks and recreation 16,210,645 16,210,645 General building & improvements - 92,939,742 92,939,742 Water management 3,271,818 40,182,208 43,454,026 Subsequent year budget 23,338,600 - 23,338,600 Other purposes 2,682,064 12,653,707 15,335,771 Total assigned fund balance 29,292,482 161,986,302 191,278,784 Unassigned: 129,009,839 - - - (11,575,871) - (9,708,812) 107,725,156 Total Fund Balances $163,567,506 $ 14,298,670 $ 3,182,050 $14,146,264 $(11,575,871) $ 345,032,703 $806,112,527 $1,334,763,849 76 NOTE 13 — RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self-insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self-insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self-insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self-insurance fund and for all other covered risks of loss. Claim Type Property and casualty claims Auto liability claims Employee health claims Workers' compensation claims County's Coverage $100,000 - $500,000 ($250,000 named storm deductible; 5% deductible of reported values per damaged building; no deductible cap) $300,000 $1,000,000 $500,000 Excess Carrier's Coverage $500,001 - $75,000,000 $300,001 - $5,000,000 $1,000,001 - Unlimited $500,001 - Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2023 the operating departments were charged $51,663,321 for workers' compensation, health and property and casualty self-insurance programs. The claims loss reserve for workers' compensation, health and property and casualty of $10,269,502 reported at September 30, 2023 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were discounted at 3.0%. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $7,853,455 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self -Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self -Insurance Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff's Self -Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self-insurance fund providing coverage for the first $1,000,000 of every claim. Re -insurance is provided through a third party insurer for all claims exceeding $1,00,000 up to $18,000,000. Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self -insured risks are reported in the basic financial statements of the Statewide Florida Sheriff's Self -Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. The Sheriff has also established a self -funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In 2023, there was one covered individual who had higher deductible amounts because of a history of high claims. This individual had a deductible of $700,000. Specific claim excess coverage for this individual was for claims exceeding $700,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The claims loss reserve for health of $3,804,000 reported at September 30, 2023 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is recorded as a current liability. 77 NOTE 13 — RISK MANAGEMENT (Continued) CHANGES IN SELF-INSURANCE CLAIMS PAYABLE Changes in the self-insurance claims payable for fiscal years 2022 and 2023 were as follows for the County and Sheriff self- insurance programs: Balance at September 30, 2021 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2022 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2023 NOTE 14 — LANDFILL LIABILITY Property and Group Workers' Casualty Health Compensation Total $ 1,302,996 $ 8,533,000 $ 1,108,413 $ 10,944,409 1,727,189 73,562,873 533,376 75,823,438 (1,699,012) (72,646,873) (538,916) (74,884,801) 1,331,173 9,449,000 1,102,873 11,883,046 847,107 77,153,658 424,579 78,425,344 (657,898) (75,058,658) (518,332) (76,234,888) $ 1,520,382 $ 11,544,000 $ 1,009,120 $ 14,073,502 On May 1, 1995, the County entered into a landfill operating agreement with a third party for the County's landfill operations. Under the contract, the third party is responsible for the daily operations, regulatory compliance, closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County's estimated liability in connection with the landfills is included in the proprietary funds statement of net position. The landfill liability will be reassessed on an annual basis, and any changes due to inflation, changes in contract terms, changes in technology or additional postclosure care requirements will be recorded as a current cost. NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS COUNTY'S PLAN DESCRIPTION AND BENEFITS PROVIDED The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan (County's OPEB Plan) and can amend the benefits provisions. The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. The Sheriff also provides post employment healthcare benefits under a separate plan. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group rate as for active employees. The Board of County Commissioners and the Tax Collector also subsidize the cost of the post employment healthcare for qualifying retirees and each has the authority to amend benefit provisions. The Board of County Commissioners offers a subsidy for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the Board, be at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan. A subsidy is currently provided to 22 retirees. The Tax Collector offers a subsidy of 100% of the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement for employees hired prior to June 1, 2015. A subsidy is currently provided to 4 retirees. 78 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) The County's OPEB Plan is currently being funded on a pay as you go basis. No trust fund has been established for the plan. The plan does not issue a separate financial report. PARTICIPANT DATA As of September 30, 2023, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 86 Active employees 2,525 Total employees 2,611 TOTAL OPEB LIABILITY The County's total OPEB liability of $9,037,961 was measured as of September 30, 2023 and was determined by an actuarial valuation as of October 1, 2022. The following table shows the changes in the County's total OPEB liability for the year ended September 30, 2023. Total OPEB Liability Balance, as of October 1, 2022 $ 8,241,808 Changes Service cost 463,595 Interest on total OPEB liability 327,904 Changes in assumptions or other inputs 599,802 Benefit payments (595,148) Net changes 796,153 Balance, as of September 30, 2023 $ 9,037,961 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the County's total OPEB liability, as well as what the County's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current 1 % Increase in Description Discount Rate Discount Rate Discount Rate OPEB Plan Discount Rate 3.09% 4.09% 5.09% Total OPEB Liability $ 9,803,455 $ 9,037,961 $ 8,351,869 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the County's total OPEB liability, as well as what the County's total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1 % Decrease in 1 % Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 4.00% 5.00% 6.00% Total OPEB Liability $ 8,190,486 $ 9,037,961 $ 10,022,810 79 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2023, the County's OPEB expense was $481,113. In addition, the County reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ 246,664 $ 365,510 Changes in assumptions 462,054 1,229,363 Total $ 708,718 $ 1,594,873 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized over 6.63 years as increases or decreases in OPEB expense as follows: Year Ending September 30 Amount 2024 $ (275,521) 2025 (354,821) 2026 (333,237) 2027 (70,038) 2028 90,468 Thereafter 56,994 ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 4.09% (Based on the 20 year AA municipal bond rate) 6.5%, grading down to 5% over 6 years 3% None The discount rate was changed from 3.9% to 4.09% based on the 20 year AA municipal bond rate. Mortality rates were based on the Pri-2012 Mortality Fully Generational using Projection Scale MP-2021. Since the most recent valuation, the following changes have been made: The discount rate was changed from 3.9% to 4.09%. The healthcare cost trend rate changed from a flat 5% annual rate to 6.5%, reducing down to 5% over 6 years. SHERIFF'S PLAN DESCRIPTION AND BENEFITS PROVIDED The Sheriff provides post employment healthcare benefits for retirees through a single employer defined benefit plan (Sheriffs OPEB Plan) and can amend the benefit provisions. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) Prior to 2010, the Sheriff subsidized approximately 26% of the cost for both single and family healthcare for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. Approximately 9% of retirees receive the subsidy. The Sheriff's OPEB Plan is currently being funded on a pay as you go basis. No trust fund has been established for the plan. The plan does not issue a separate financial report. PARTICIPANT DATA As of September 30, 2023, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 150 Active employees 1,158 Total employees 1,308 TOTAL OPEB LIABILITY The Sheriff's total OPEB liability of $37,627,575 was measured as of September 30, 2023 and was determined by an actuarial valuation as of October 1, 2022. The following table shows the changes in the Sheriff's total OPEB liability for the year ended September 30, 2023. Total OPEB Liability Balance, as of October 1, 2022 $ 33,128,024 Changes: Service cost 778,361 Interest on total OPEB liability 1,080,092 Differences between expected and actual experience 5,877,459 Changes in assumptions or other inputs (883,713) Benefit payments (2,352,648) Net changes 4,499,551 Balance, as of September 30, 2023 $ 37,627,575 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current Discount 1 % Increase in Description Discount Rate Rate Discount Rate OPEB Plan Discount Rate 3.09% 4.09% 5.09% Total OPEB Liability $ 40,895,688 $ 37,627,575 $ 34,749,573 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1 % Decrease in 1 % Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 5.50% 6.50% 7.50% Total OPEB Liability $ 34,617,335 $ 37,627,575 $ 41,072,328 ,M NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2023, the Sheriff's OPEB expense was $4,898,268. In addition, the Sheriff reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ 17,663,915 $ 15,449 Changes in assumptions 1,779,686 5,652,590 Total $ 19,443,601 $ 5,668,039 Amounts reported as deferred inflows and outflows of resources related to OPEB will be recognized over 6.85 years as an increase in OPEB expense: Year Ending September 30 Deferred Outflows of Resources 2024 $ 3,039,815 2025 3,047,086 2026 2,918,111 2027 2,601,996 2028 1,515,523 Thereafter 653,031 ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 4.09% (Based on the 20 year AA municipal bond rate) 6.5% None None Mortality rates were based on the Pri-2012 Mortality Fully Generational using Projection Scale MP-2021 Since the most recent valuation, the following changes have been made: The discount rate was changed from 3.3% to 4.09%. 82 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) SUMMARY The aggregate amount of total OPEB liability, related deferred outflows of resources and deferred inflows of resources and OPEB expense for the County's postemployment benefits plans are summarized below: County's Sheriff's OPEB Plan OPEB Plan Total Total OPEB liability $ 9,037,961 $ 37,627,575 $ 46,665,536 Deferred outflows of resources related to OPEB 708,718 19,443,601 20,152,319 Deferred inflows of resources related to OPEB 1,594,873 5,668,039 7,262,912 OPEB expense 481,113 4,898,268 5,379,381 Liabilities associated with the County and Sheriff's OPEB plan are liquidated in the individual fund to which the liability is directly associated. NOTE 16 — SIGNIFICANT CONTINGENCIES LITIGATION The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as disclosed here, will not materially affect the financial position of the County. STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. The County Water and Sewer District reported an arbitrage liability of $349,008 as of September 30, 2023. HURRICANE IRMA On September 10, 2017, Category 3 Hurricane Irma made landfall in Collier County. The primary impacts of Hurricane Irma were widespread power outages and debris, coastal flooding and beach erosion. The County has spent approximately $108.9 million on recovery efforts and has budgeted an additional $1 million in the 2024 fiscal year. In 2023, the County recognized $80,437 in revenue from the Federal Emergency Management Agency (FEMA). At the end of 2023, the County had $5,249,655 in outstanding receivables related to FEMA claims and continues to expect reimbursements from FEMA as projects close out over the next few years. HURRICANE IAN On September 28, 2022, Hurricane Ian made landfall just north of Collier County as a Category 4 storm, bringing significant storm surge to the coastal areas. The County has spent approximately $70.1 million on recovery efforts and has budgeted an additional $60.8 million in the 2024 fiscal year. In 2023, the County recognized $23.8 million in revenue from FEMA, $23.2 million of which was advanced for countywide debris removal and $11.7 million in insurance reimbursements. At the end of 2023, the County had $521,903 in outstanding receivables related to FEMA claims and expects substantial reimbursements from FEMA and insurance in the years to come. �-'X NOTE 17 — SIGNIFICANT COMMITMENTS Collier County has active construction projects as of September 30, 2023. The projects include road construction, governmental facilities and utilities improvements. At year end, the County's significant commitments with contractors include the following: Governmental Activities: Grants and Shared Revenue Hurricane Ian Infrastructure Sales Tax Other Governmental Funds Business -type Activities: Water and Sewer Total Construction Category Commitments Transportation $ 18,168,584 Culture and Recreation 1,643,688 Public Safety 791,489 Transportation 31,795,426 Culture and Recreation 1,205,556 Physical Environment 12,326,019 Transportation 73,222,337 Culture and Recreation 2,474,596 Utilities 112,549,731 $ 254,177,426 Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods or services have been ordered but not received. Encumbrance commitments do not include construction contracts, as they are included as construction commitments. Collier County had the following significant individual encumbrances as of September 30, 2023: Governmental Activities: Bayshore Gateway Community Redevelopment Agency Grants and Shared Revenue Infrastructure Sales Tax Other Governmental Funds Business -type Activities: Water and Sewer Emergency Medical Services Solid Waste Other Enterprise Funds Internal Service Funds Total Category Economic Environment Physical Environment Transportation Economic Environment Human Services General Government Public Safety Physical Environment Transportation Human Services General Government Public Safety Physical Environment Transportation Culture and Recreation Utilities Emergency Medical Services Landfill Services Airport Authority Collier Area Transit Information Technology Encumbrance Commitments 600,000 10,318,934 2,899,695 8,154,339 824,548 3,969,256 4,968,041 1,667,988 7,159,718 2,233,864 5,152,501 1,200,000 16,326,913 10,625,778 908,846 22,997,449 3,889,356 11,980,916 1,695,132 563,477 691,216 $ 118,827,967 84 NOTE 18 — SUBSEQUENT EVENTS INFRASTRUCTURE SALES TAX In November 2018, Collier County voters approved a referendum to implement a one -cent sales surtax for designated infrastructure projects. The ordinance set a maximum collection period of 7 years with a sunset date of December 31, 2025 or December 31 st of the year in which collections reached or exceeded $490,000,000. On October 10, 2023, the Board of County Commissioners adopted an ordinance sunsetting the tax effective December 31, 2023 as the target amount of $490 million had been reached. Collier County recognized $487,049,285 in Infrastructure Sales Tax revenue from inception through September 30, 2023. NOTE 19 — FUND DEFICITS The following funds had a fund balance deficit at September 30, 2023: Fund Hurricane Ian Amateur Sports Complex Amount $ (11,575,871) (9,708,812) $ (21,284,683) The unassigned fund balance deficit in the Hurricane Ian fund is the result of disaster recovery expenditures being made before Insurance proceeds and FEMA reimbursements are able to be recognized. Advances from the County Water and Sewer fund were made during the fiscal year to provide cash flow. The Hurricane Ian fund anticipates repaying this advance in the next few years as insurance proceeds and FEMA reimbursements come in. The unassigned fund balance deficit in the Amateur Sports Complex fund is the result of advances from other funds made in prior years due to a shortfall of funding for the Complex construction. County management budgeted repayments to begin in the 2024 fiscal year and anticipates that the advance will be repaid with future years' tourist tax revenue. ,AM �O er aunty REQUIRED SUPPLEMENTARY 1 iwKclNFORMATION.._ Y f I 14.,y r ri6 i ,F ; ti# � i , r mp h Ap ti 3 47 1 r� • t COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years County's Proportion of the Net Pension Liability County's Proportionate Share of the Net Pension Liability County's Covered Payroll * County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll Plan Fiduciary Net Position as a Percentage of the total Pension Liability 2023 2022 2021 2020 2019 0.828499167% 0.785103420% 0.770303194% 0.794941674% 0.797837050% $ 330,130,697 $ 292,121,565 $ 58,187,652 $ 344,539,437 $ 274,763,972 $ 297,384,952 $ 252,964,206 $ 241,529,826 $ 234,174,659 $ 228,455,160 111.01 % 115.48% 24.09% 147.13% 120.27% 82.38 % 82.89 % 96.40% 78.85% 82.61 % * Covered Payroll consists of pensionable wages calculated as of the respective measurement date, restated for periods 2014 to 2017 pursuant to GASB No. 82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2023 2022 2021 2020 2019 Contractually Required Contribution $ 41,265,309 $ 35,022,631 $ 30,034,061 $ 27,741,964 $ 25,202,730 Contributions in Relation to the Contractually Required Contribution (41,265,309) (35,022,631) (30,034,061) (27,741,964) (25,202,730) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - County's Covered Payroll - Fiscal Year * $ 298,405,341 $ 261,931,755 $ 241,604,760 $ 240,018,783 $ 230,500,331 Contributions as a Percentage of Covered Payroll 13.83% 13.37% 12.43% 11.56% 10.93% * Covered Payroll - Fiscal Year consists of pensionable wages calculated forthe respective fiscal year, restated for periods 2014to 2017 pursuant to GASB No. 82, Pension Issues. SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2023 2022 2021 2020 2019 County's Proportion of the Net Pension Liability 0.747985695% 0.693371195% 0.682720614% 0.673478223% 0.683003525% County's Proportionate Share of the Net Pension Liability $ 118,790,106 $ 73,439,084 $ 83,745,948 $ 82,230,597 $ 76,421,260 County's Covered Payroll * $ 297,384,952 $ 252,964,206 $ 241,529,826 $ 234,174,659 $ 228,455,160 County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 39.94% 29.03% 34.67% 35.12% 33.45% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 4.12% 4.81 % 3.56% 3.00% 2.63% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2023 2022 2021 2020 2019 Contractually Required Contribution $ 5,184,935 $ 4,341,241 $ 4,008,775 $ 3,982,772 $ 3,792,652 Contributions in Relation to the Contractually Required Contribution (5,184,935) (4,341,241) (4,008,775) (3,982,772) (3,792,652) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - County's Covered Payroll - Fiscal Year * $ 298,405,341 $ 261,931,755 $ 241,604,760 $ 240,018,783 $ 230,500,331 Contributions as a Percentage of Covered Payroll 1.74% 1.66% 1.66% 1.66% 1.65% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. 88 2018 2017 2016 2015 2014 0.804668214% 0.796720676% 0.772938545% 0.736106708% 0.703655077% $ 242,370,237 $ 235,664,630 $ 195,167,590 $ 95,078,054 $ 42,933,306 $ 225,786,565 $ 212,195,163 $ 199,870,915 $ 195,154,275 $ 184,577,284 107.34% 111.06% 97.65% 48.72% 23.26% 84.26 % 83.89 % 84.88 % 92.00 % 96.09 % 2018 2017 2016 2015 2014 $ 23,401,059 $ 20,299,090 $ 20,563,824 $ 17,830,147 $ 17,287,796 (23,401,059) (20,299,090) (20,563,824) (17,830,147) (17,287,796) $ 226,283,207 $ 216,521,253 $ 206,179,415 $ 193,543,352 $ 185,505,694 10.34% 9.38% 9.97% 9.21 % 9.32% 2018 2017 2016 2015 2014 0.690065185% 0.665383863% 0.645620406% 0.642983194% 0.621385755% $ 73,037,274 $ 71,145,914 $ 75,244,385 $ 65,574,171 $ 58,101,084 $ 225,786,565 $ 212,195,163 $ 199,870,915 $ 195,154,275 $ 184,577,284 32.35% 33.53% 37.65% 33.60% 31.48% 2.15% 1.64% 0.97% 0.50% 0.99% 2018 2017 2016 2015 2014 $ 3,750,438 $ 3,593,353 $ 3,415,537 $ 2,614,704 $ 2,131,155 (3,750,438) (3,593,353) (3,415,537) (2,614,704) (2,131,155) $ 226,283,207 $ 216,521,253 $ 206,179,415 $ 193,543,352 $ 185,505,694 1.66% 1.66% 1.66% 1.35% 1.15% COLLIER COUNTY, FLORIDA SCHEDULE OF CHANGES IN THE COLLIER COUNTY TOTAL OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years Board of County Commissioners and Constitutional Officers Total OPEB liability 2023 2022 2021 2020 2019 2018 2017 Service Cost $ 463,595 $ 673,684 $ 609,931 $ 609,998 $ 438,933 $ 491,865 $ 464,531 Interest 327,904 148,910 162,236 190,846 287,048 252,345 248,849 Changes of benefit terms - - - - - - - Differences between expected and actual experience 290,477 (1,534) (588,396) (1,190) - (8,258) Changes of assumptions or other inputs 309,325 (1,585,700) 74,553 322,360 387,596 (221,309) Benefit payments (595,148) (494,511) (574,452) (474,429) (674,797) (625,275) (589,882) Net change in total OPEB liability 796,153 (1,259,151) (316,128) 647,585 438,780 (102,374) 115,240 Total OPEB liability, beginning 8,241,808 9,500,959 9,817,087 9,169,502 8,730,722 8,833,096 8,717,856 Total OPEB liability, ending $ 9, 337,961 $ 8, 441,808 $ 9, 000,959 $ 9, 117,087 $ 9, 669,502 $ 8, 330,722 $ 8, 333,096 Covered -employee payroll $ 176,269,735 $ 152,351,768 $ 141,768,412 $ 135,688,734 $ 132,769,448 $ 123,441,030 $ 121,574,778 Total OPEB liability as a percentage of covered employee payroll 5.13% 5.41 % 6.70% 7.24% 6.91 % 7.07% 7.27% Notes to the Schedule Changes in Assumptions: Change in the discount rate of 3.9 % as of September 30, 2022 to 4.09 % as of September 30, 2023. The defined benefit OPEB plan provided is not administered through a trust that meets the criteria of GASB Statement 75, paragraph 4 Note: Information is required to be presented for 10 years. However, until a full 10 year trend is compiled, the County will present information for only those years for which information is available. Sheriff Total OPEB liability 2023 2022 2021 2020 2019 2018 2017 Service Cost $ 778,361 $ 734,513 $ 777,037 $ 555,065 $ 485,365 $ 520,082 $ 491,420 Interest 1,080,092 422,604 448,520 435,838 631,825 503,525 502,621 Changes of benefit terms - - - - - - - Differences between expected and actual experience 5,877,459 10,708,734 451 5,292,054 - 2,048,462 (83,607) Changes of assumptions or other inputs (883,713) (5,446,075) 353,427 949,878 2,250,569 (898,977) Benefit payments (2,352,648) (1,461,666) (1,329,954) (1,098,451) (1,074,207) (941,061) (871,353) Net change in total OPEB liability 4,499,551 4,958,110 249,481 6,134,384 2,293,552 1,232,031 39,081 Total OPEB liability, beginning 33,128,024 28,169,914 27,920,433 21,786,049 19,492,497 18,260,466 18,221,385 Total OPEB liability, ending $ 37, 227,575 $ 33, 228,024 $ 28, 669,914 $ 27,920,433 $ 21,786,049 $ 19, 992,497 $ 18, 660,466 Covered -employee payroll $ 100,636,180 $ 95,742,481 $ 87,324,387 $ 83,944,157 $ 81,378,975 $ 80,473,682 $ 91,192,818 Total OPEB liability as a percentage of covered employee payroll 37.39% 34.60 % 32.26% 33.26% 26.77% 24.22% 20.02% Notes to the Schedule Changes in Assumptions: Change in the discount rate of 3.3 % as of September 30, 2022 to 4.09 % as of September 30, 2023. The defined benefit OPEB plan provided is not administered through a trust that meets the criteria of GASB Statement 75, paragraph 4. Note: Information is required to be presented for 10 years. However, until a full 10 year trend is compiled, the County will present information for only those years for which information is available. 90 � ti • 1 T � is + ' COMBINING & INDIVIDUAL FUND FINANC14-II.-, STATEMENTS & ' SUPPLEMENTAL INVA ' 1 7F ti 1 1 ti ti '� 4' II • F 1 I r 1• •r . 1 + ' 1 � Y� f '• �'. .StiL r 1 Lo wr C 1 :9e - •�.• ..,ti .• 7r • ;ti i •Sr S til ' 1 �O er aunty NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds ROAD DISTRICTS — To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT — To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT — To account for building permit and development fees to support licensing, permitting and inspection services. WATER MANAGEMENT AND POLLUTION CONTROL — To account for taxes levied County -wide to provide water resource management and water pollution control. PELICAN BAY — To account for taxes levied in the Pelican Bay development to provide water resource management and beautification services. IMPROVEMENT DISTRICTS — To account for taxes levied within municipal service taxing districts to provide for specified improvements and/or the maintenance of such improvements. FIRE CONTROL DISTRICTS — To account for taxes levied within municipal service taxing districts for fire prevention and control. LIGHTING DISTRICT — To account for taxes levied within a municipal service taxing district for street lighting. 911 ENHANCEMENT FEE — To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. TOURIST DEVELOPMENT — To account for the 5% tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP — To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND — To account for moving traffic violation surcharges received to fund the County's intergovernmental radio communications program. STATE COURT ADMINISTRATION — To account for County monies used to fund the operation of the court system. CONFISCATED PROPERTY — To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS — To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE — To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER — To account for the acquisition and management of environmentally sensitive lands. COURT INFORMATION TECHNOLOGY — To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES — To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION — To account for fund accumulation to meet the educational goals of the Collier County OF/IFAS extension. COURT FACILITIES FEE — To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING — To account for fees to be used to provide for affordable housing related projects. ECONOMIC AND INNOVATION ZONES — To account for the accumulation of resources for economic development in accordance with an approved tax increment financing plan. OTHER COURT SPECIAL REVENUE FUNDS — To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for modernization. 93 OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS — To account for the accumulation of resources for the Sheriff's Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate welfare, crime prevention and training programs. OTHER SPECIAL REVENUE FUNDS — To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Euclid and Lakeland Assessment Teen Court Animal Control Public Library Law Library County Drug Abuse Local Provider Participation Permanent Funds Legal Aid Society Parks and Recreation Donations Domestic Violence Juvenile Cyber Security Driver Education County Drug Abuse RESOURCE RECOVERY PARK ENDOWMENT — To account for the permanent endowment established for the benefit of the County's land conservation program. PEPPER RANCH CONSERVATION BANK — To account for the permanent endowment established for the benefit of establishing and maintaining a panther habitat land conservation bank. Debt Service Funds POOLED COMMERCIAL PAPER PROGRAM — To account for the accumulation of resources and payment of interest and principal on variable rate debt incurred for capital improvements within Pelican Bay. GAS TAX REFUNDING REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2012 Gas Tax Refunding Revenue Bonds and Series 2014 Gas Tax Refunding Revenue Bond (bank term loan) incurred in the refinancing of Gas Tax Revenue Bonds. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2007 Forest Lakes Limited General Obligation Bonds debt incurred to finance the cost of certain roadway lighting, drainage and restoration in the Forest Lakes Municipal Services Taxing Unit. SPECIAL OBLIGATION REFUNDING REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2020A and 2020B (Taxable) Special Obligation Revenue Bonds and the Series 2017 Special Obligation Refunding Revenue Note (bank term loan) incurred in the refinancing of variable rate commercial paper loans and revenue bonds. Also used to account for the accumulation of resources and payment of interest and principal on the Series 2019 Taxable Special Obligation Revenue Note (bank term loan) used to purchase the Golden Gate Golf Course and the Series 2022A and 2022B Special Obligation Revenue Notes (bank term loans) used to refinance the Series 2011 and 2013 Special Obligation Refunding Revenue Bonds. TOURIST DEVELOPMENT TAX REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2018 Tourist Development Tax Revenue Bonds incurred to pay the cost of the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. Capital Project Funds COUNTY -WIDE CAPITAL IMPROVEMENTS — To account for capital projects, designated by the Board of County Commissioners, to be funded by a County -wide one third mil levy. PARKS IMPROVEMENTS — To account for the expenditure of funds raised specifically for improvements to parks. Projects include land acquisition, design, construction and equipping of certain Community Park sites in the unincorporated areas of the County. Primary funding is ad valorem taxes. COUNTY -WIDE LIBRARY IMPACT FEES — To account for the receipt and expenditure of library impact fees collected from all qualifying new construction. These impact fees must be used for acquisition of County -wide library facilities. CORRECTIONAL FACILITIES IMPACT FEES — To account for the receipt and expenditure of correctional facilities impact fees collected from all qualifying new construction. These impact fees must be used for the acquisition/construction of correctional facilities. 94 EMERGENCY MEDICAL SERVICES IMPACT FEES — To account for the receipt and expenditure of emergency medical service impact fees collected from all qualifying new construction. These impact fees must be used for acquisition/construction of emergency service facilities. WATER MANAGEMENT — To account for the receipt and expenditure of funds raised specifically for water management purposes. Primary funding is from ad valorem taxes and bond proceeds. PELICAN BAY CAPITAL IMPROVEMENTS — To account for the receipt and expenditure of funds raised specifically for water management purposes and the restoration of the Clam Bay estuary in the Pelican Bay Development. Primary funding is a capital special assessment and commercial paper proceeds. PARKS IMPACT DISTRICTS — To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities. ROAD IMPACT DISTRICTS — To account for the receipt and expenditure of road impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of roads. ROAD CONSTRUCTION — To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to, right- of-way acquisition, design and construction of various transportation improvements. GOVERNMENT FACILITIES IMPACT FEES — To account for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition and construction of government facilities. LAW ENFORCEMENT IMPACT FEES — To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition and construction of law enforcement related facilities. ALL TERRAIN VEHICLE PARK — To account for the receipt and expenditure of funds for the creation of an All Terrain Vehicle park. AMATEUR SPORTS COMPLEX — To account for major capital expenditures related to the new Amateur Sports Complex. Primary funding is bonds proceeds and advances from other tourist tax funds. OTHER CAPITAL PROJECTS — To account for major capital expenditures financed from resources other than proceeds from the issuance of long-term debt and the one third mil levy. W" ASSETS Cash and investments Receivables: Interest Trade, net Notes Impact fee Special assessments Lease Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs Total assets Liabilities, Deferred Inflows of Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds Total liabilities Deferred inflows of resources: Unavailable revenue Related to leases Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2023 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Pelican Districts Area MSTD Development Control Bay $ 2,958,456 $ 23,438,542 $ 44,788,749 $ 2,053,748 $ 2,527,653 5,161 43,316 56,455 3,257 4,714 11,723 38,848 2,958 22 - 18,523 5,544,969 - - 36,358 180 871,275 3 52,056 64,294 6,950 760,214 135,768 2,078 840 1,397,282 31,395 - 138,668 - - 9,264 - - 20,000 - - $ 4,398,275 $ 30,748,559 $ 44,993,197 $ 2,249,829 $ 2,633,859 $ 152,826 $ 1,220,156 $ 287,077 $ 79,077 $ 41,643 842,694 967,757 1,222,823 112,125 111,960 1 111,271 4,691 - - 196 4,332 2,588,132 192 - 3,896 - - 23,268 4,370,483 12,875 - 995,717 2,343,555 8,473,206 191,202 153,795 17,830 4,951,391 34,927 17,830 4,951,391 34,927 1,397,282 51,395 - 138,668 1,987,446 - 36,519,991 - - - 23,402,218 - 1,919,959 2,445,137 3,384,728 23,453,613 36,519,991 2,058,627 2,445,137 $ 4,398,275 $ 30,748,559 $ 44,993,197 $ 2,249,829 $ 2,633,859 02 Special Revenue Funds State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts District Fee Development Partnership IRCP Fund Administration $ 20,388,179 $ 586,658 $ 909,897 $ 1,456,333 $ 103,473,561 $ 9,532,125 $ 233,954 $ 1,025,709 26,397 426 1,354 2,421 136,117 9,790 464 1,438 7,728 - - 89,752 2,063,677 7,424 - - - - - 189,429 - - - - 408,346 - 92,579 22,758 11,241 - 2,188,380 19,725 58,513 257 - - 180,979 3,620,275 4,707 486 17,200,000 $ 20,515,140 $ 609,842 $ 922,492 $ 1,729,485 $ 128,682,010 $ 9,738,768 $ 667,196 $ 1,086,146 $ 415,781 $ $ 55,903 $ 43,959 $ 2,235,254 $ 25,942 $ 46,790 $ 30,532 29,780 - - 196,501 17,229 12,642 114,649 198 146,660 1,079 3,779 - - 1,362 - - - 6,244 - 125,524 535,212 73,701 268,100 - - - - - - 651,228 268,100 55,903 190,619 2,969,408 46,950 59,432 145,181 368,651 368,651 - - - 1,538,866 125,712,602 9,691,818 - - 19,863,912 341,742 866,589 - - - 239,113 940,965 19,863,912 341,742 866,589 1,538,866 125,712,602 9,691,818 239,113 940,965 $ 20,515,140 $ 609,842 $ 922,492 $ 1,729,485 $ 128,682,010 $ 9,738,768 $ 667,196 $ 1,086,146 97 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2023 Special Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court University Property and Canals Fee Collier Technology Services Extension ASSETS Cash and investments $ 494,441 $ 2,511,815 $ 988,583 $ 72,129,816 $ 1,471,927 $ 1,589,001 $ 25,762 Receivables: Interest 636 2,679 1,263 89,646 1,987 - 30 Trade, net - - 38,368 - - 14,287 - Notes - - Impact fee Special assessments Lease - - - Due from other funds 100,000 378,463 59,040 - - Due from other governments - 198 245 17,138 5 Deposits - - - - Inventory for resale 144,014 Inventory - Advances to other funds - Prepaid costs - 31,168 - - Total assets $ 495,077 $ 2,658,508 $ 1,128,214 $ 72,598,123 $ 1, 664,367 $ 1, 220,426 $ 25,797 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ $ $ $ 17,231 $ 41,696 $ 4,650 $ Wages payable 13,996 39,434 7,110 225,360 Due to other funds 168 247 - 288,240 Due to other governments - - 187,209 987,176 Unearned revenues - 115,000 Refundable deposits - Retainage payable Advances from other funds - - - - Totalliabilities 14,164 56,912 236,015 1,620,426 Deferred inflows of resources: Unavailable revenue - - - - Related to leases Total deferred inflows of resources - Fund balances: Nonspendable - 31,168 - Restricted 495,077 2,658,508 - 72,541,211 1,297,184 25,797 Committed - - 1,114,050 - - - Assigned - Unassigned - - - - - - Total fund balances 495,077 2,658,508 1,114,050 72,541,211 1,328,352 25,797 Total liabilities, deferred inflows of resources and fund balances $ 495,077 $ 2,658,508 $ 1,128,214 $ 72,598,123 $ 1, 664,367 $ 1, 220,426 $ 25,797 98 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special Facilities Affordable Innovation Revenue Special Revenue Revenue Fee Housing Zones Funds Revenue Funds Funds Funds $ 9,809,672 $ 1,550,185 $ 8,510,838 $ 6,814,906 $ 5,613,554 $ 3,342,380 $ 328,226,444 11,738 1,883 10,279 - 1,831 4,475 417,757 - - - 47,134 25 2,321,946 - - 189,429 - - - - 6,008,196 70,000 90 73,558 21,477 4,083,632 - - - 545 4,730,685 144,014 1,567,345 17,209,264 51,168 $ 9,891,410 $ 1,552,068 $ 8,521,207 $ 6,814,906 $ 5,736,077 $ 3,368,902 $ 364,949,880 $ $ 188 $ 3,000,000 $ 2,507 $ 15,775 $ 52,597 $ 7,769,584 - - 42,857 - 3,192 3,960,109 - 107,640 - 663,974 - 105 3,768,704 - 118,896 4,399,995 - 673,611 - 2,000,000 - - - 2,341,801 188 5,000,000 45,364 123,415 55,894 23,696,674 5,372,799 5,372,799 - - - - 1,618,513 9,891,410 - - 6,769,542 5,612,662 789,345 275,531,459 - 1,551,880 3,521,207 - - 2,523,663 58,730,435 9,891,410 1,551,880 3,521,207 6,769,542 5,612,662 3,313,008 335,880,407 $ 9,891,410 $ 1,552,068 $ 8,521,207 $ 6,814,906 $ 5,736,077 $ 3,368,902 $ 364,949,880 ASSETS Cash and investments Receivables: Interest Trade, net Notes Impact fee Special assessments Lease Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs Total assets Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds Total liabilities Deferred inflows of resources: Unavailable revenue Related to leases Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2023 Permanent Funds Debt Service Funds Forest Lakes Resource Pepper Pooled Limited Recovery Ranch Total Commercial Gas Tax General Park Conservation Permanent Paper Refunding Obligation Endowment Bank Funds Program Revenue Bonds Bonds $ 1,760,420 $ 3,972,325 $ 5,732,745 $ 9 $ 1,428,099 $ 47 2,171 4,906 7,077 - 8,622 - 3,596 368,119 $ 1,762,591 $ 3,977,231 $ 5,739,822 $ 3,605 $ 1,804840 S 47 $ $ 3,300 $ 3,300 $ $ $ - - 47 670 670 - 3,970 3,970 47 1,582,800 3,940,000 5,522,800 - - 179,791 33,261 213,052 3,605 1,804,840 1,762,591 3,973,261 5,735,852 3,605 1,804,840 $ 1,7 22,591 $ 3,977,231 $ 5,739,822 $ 3,605 $ 1,804,840 $ 47 100 Debt Service Funds Capital Project Funds Tourist Special Development Total Emergency Obligation Tax Debt County -Wide County -Wide Correctional Medical Refunding Revenue Service Capital Parks Library Facilities Services Revenue Bonds Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ 2,415,831 $ 2,472,179 $ 6,316,165 $ 72,941,909 $ 25,424,625 $ 509,454 $ 1,460,803 $ 491,789 2,433 2,995 14,050 88,645 32,769 1,090 2,256 822 240,251 178,572 83,385 - 8,077 8,310 - - - 371,715 2,492,112 79,729 6,532 10,150 2,791 20,000,000 $ 2,418,264 $ 2,475,174 $ 6,701,930 $ 95,530,743 $ 25,545,433 $ 757,327 $ 1,651,781 $ 578,787 $ $ $ $ 1,849,772 $ 1,230,954 $ 2,670 $ 4,494 $ 45,214 47 530,470 - 191,852 18,907 75,157 47 2,591,001 1,306,111 2,670 4,494 45,214 - - - 240,251 178,572 83,385 240,251 178,572 83,385 2,418,264 2,475,174 6,701,883 11,197,057 514,406 1,468,715 450,188 92,939,742 13,042,265 2,418,264 2,475,174 6,701,883 92,939,742 24,239,322 514,406 1,468,715 450,188 $ 2,418,264 $ 2,475,174 $ 6,701,930 $ 95,530,743 $ 55,545,433 $ 757,327 $ 1,651,781 $ 578,787 101 ASSETS Cash and investments Receivables: Interest Trade, net Notes Impact fee Special assessments Lease Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs Total assets Liabilities, Deferred Inflows of Resources And Fund Balances Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds Total liabilities Deferred inflows of resources: Unavailable revenue Related to leases Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2023 Funds Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees $ 74,442,137 $ 7,595,006 $ 56,161,042 $ 128,464,072 $ 60,027,217 $ 3,161,958 92,946 10,298 66,327 158,485 72,842 4,615 1,885,204 5,057,565 393,276 5,719 20,608 - - 2,538,246 - 2,356 41,417 54,278 187,550 3,646,113 18,356 - - 1,250 - - - - - - - 35,970 - $ 74,543,158 $ 7,667,329 $ 58,168,101 $ 133,867,672 $ 66,320,388 $ 3,578,205 $ 1,643,704 $ 1,143,419 $ 29,967 $ 628,007 $ 2,618,474 $ 8,761 369,826 20,412 - - - 22,500 81,360 263,248 154,152 170,697 733,457 236,255 2,297,190 1,297,571 200,664 1,383,964 2,936,089 8,761 1,885,204 5,057,565 393,276 1,885,204 5,057,565 393,276 - - - 35,970 - 38,433,518 56,082,233 127,426,143 63,348,329 3,176,168 33,812,450 6,369,758 72,245,968 6,369,758 56,082,233 127,426,143 63,384,299 3,176,168 $ 74,543,158 $ 7,667,329 $ 58,168,101 $ 133,867,672 $ 66,320,388 $ 3,578,205 102 Capital Project Funds Total Total Law All Terrain Amateur Other Capital Nonmajor Enforcement Vehicle Sports Capital Project Governmental Impact Fees Park Complex Projects Funds Funds $ 3,252,026 $ 3,164,483 $ 7,484,432 $ 12,645,964 $ 457,226,917 $ 797,502,271 4,147 3,897 16,168 15,545 570,852 1,009,736 - - - - - 2,321,946 - - 189,429 202,482 - 8,040,735 8,040,735 - 1,405 1,405 1,405 - - 6,008,196 301 2,581,261 6,664,893 61,143 6,602,527 11,704,927 - 1,250 1,250 - 144,014 - - 1,567,345 73,701 20,073,701 37,282,965 - - - - 35,970 87,138 $ 3,458,655 $ 3,168,380 $ 7,500,600 $ 12,798,059 $ 495,134,618 $ 872,526,250 $ 7,093 $ $ 9,412 $ $ 9,221,941 $ 16,994,825 - - 3,960,109 - 900,296 1,564,317 212,264 3,981,638 - 118,896 103,860 4,503,855 - 1,651,873 2,325,484 - 17,200,000 9,264 17,209,264 19,551,065 7,093 17,209,412 9,264 29,299,498 53,000,189 202,482 8,040,735 8,040,735 - - 5,372,799 202,482 8,040,735 13,413,534 - - 35,970 7,177,283 3,249,080 135,088 305,480,925 587,927,319 - - - - 58,730,435 3,168,380 12,653,707 161,986,302 161,986,302 - (9,708,812) - (9,708,812) (9,708,812) 3,249,080 3,168,380 (9,708,812) 12,788,795 457,794,385 806,112,527 $ 3,458,655 $ 3,168,380 $ 7,500,600 $ 12,798,059 $ 495,134,618 $ 872,526,250 103 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Pelican Districts Area MSTD Development Control Bay Revenues: Taxes S S 62,926,751 $ - $ 3,423,722 $ 708,850 Licenses, permits and impact fees 39,730 26,652,888 - - Intergovernmental 2,098,332 - - - Charges for services 302,710 3,102,675 3,203,306 294,417 Fines and forfeitures - 506,915 - - - Interest earnings 136,411 1,626,300 1,853,660 110,389 164,732 Special assessments - - - - 4,726,626 Miscellaneous 41,019 382,738 56,873 - 62,899 Total revenues 2,578,472 68,585,109 31,766,727 3,828,528 5,663,107 Expenditures: Current: General government 6,414,964 10,236,600 Public safety 4,676,614 22,539,797 - - Physical environment - 671,662 1,609,039 3,116,379 1,307,947 Transportation 25,137,837 15,048,079 430,449 - 3,602,244 Economic environment - 47,852 - - Human services - Culture and recreation - 15,677,212 - Debt service Principal 14,772 41,461 77,031 Interest 911 7,539 6,993 Fiscal charges - - - - - Capital outlay 143,601 430,709 35,010 84,126 201,392 Total expenditures 25,297,121 43,016,092 34,850,895 3,200,505 5,195,607 Excess (deficit) of revenues over (under) expenditures (22,718,649) 25,569,017 (3,084,168) 628,023 467,500 Other financing sources (uses): Loansissued - - - - SBITAs 78,861 231,268 - - - Sale of capital assets 1,115 6,047 736 68 33,300 Insurance proceeds 298,859 204,159 1,602 - 726 Transfers in 23,953,400 2,044,313 972,605 95,273 99,196 Transfers out (1,124,300) (23,270,359) (1,539,500) (272,193) (583,385) Total other financing sources (uses) 23,207,935 (20,784,572) (564,557) (176,852) (450,163) Net change in fund balances 489,286 4,784,445 (3,648,725) 451,171 17,337 Fund balances at beginning of year 2,895,442 18,669,168 40,168,716 1,607,456 2,427,800 Fund balances at end of year $ 3,384,728 $ 23,453,613 $ 36,519,991 $ 2,058,627 $ 2,445,137 See accompanying independent auditors' report 104 Revenue Funds State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts District Fee Development Partnership IRCP Fund Administration $ 6,926,190 $ 1,660,581 $ 867,735 $ $ 44,107,953 $ $ $ - 2,452,430 337,747 4,884,742 - 259,888 - 2,175,960 - 405,202 156,545 - - - - - - - 683,932 853,516 30,574 44,995 75,326 4,293,398 308,261 25,510 42,546 2,182 - 39,650 - 4,908 436,817 164,034 - 8,041,776 1,691,155 952,380 2,527,756 50,919,966 5,629,820 594,746 883,023 - - - 1,085,585 - 3,642,202 2,047,829 - 1,606,708 1,652,387 713,783 - - - 3,950,218 - - 1,329,506 854,903 - - - - 1,320,701 1,158,157 18,101,657 - 3,563 367,197 1,872 237 39,932 1,570,174 - - - 16,093,361 - 152,960 - 4,773,492 3,642,202 854,903 2,047,829 38,149,036 1,320,701 2,166,797 2,737,972 3,268,284 (1,951,047) 97,477 479,927 12,770,930 4,309,119 (1,572,051) (1,854,949) - 10,969 2,000 3,838 29,260 - - - - - 718,000 2,143,466 11,196 3,525,269 1,438,067 2,208,486 (830,180) (48,926) (25,245) (8,602,859) (31,571) - (48,100) (80,920) 2,094,540 (14,049) - (5,062,783) (31,571) 1,438,067 2,160,386 3,187,364 143,493 83,428 479,927 7,708,147 4,277,548 (133,984) 305,437 16,676,548 198,249 783,161 1,058,939 118,004,455 5,414,270 373,097 635,528 $ 19,863,912 $ 341,742 $ 866,589 $ 1,538,866 $ 125,712,602 $ 9,691,818 $ 239,113 $ 940,965 105 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Special Revenue Funds GAC Land Court Confiscated Sales, Roads utility Conservation Information Court Property and Canals Fee Collier Technology Services Revenues: Taxes S S S 163,506 $ 29,209,162 S $ Licenses, permits and impact fees - - Intergovernmental - - 623,719 Charges for services 100,000 18 830,108 7,720,668 Fines and forfeitures 5,000 - - - - - Interest earnings 20,557 87,728 41,425 2,842,988 64,837 141,599 Special assessments - - - - - - Miscellaneous - 456,282 - 21,717 - - Total revenues 25,557 544,010 304,931 32,073,885 894,945 8,485,986 Expenditures: Current: General government - - - 1,127,588 8,906,199 Public safety 15,500 - - 8,861 - Physical environment - 308,084 1,636,170 - Transportation - - Economic environment - Human services 38,494 Culture and recreation - Debt service Principal Interest Fiscal charges - - Capital outlay - - 4,652,543 12,162 - Total expenditures 15,500 - 308,084 6,288,713 1,187,105 8,906,199 Excess (deficit) of revenues over (under) expenditures 10,057 544,010 (3,153) 25,785,172 (292,160) (420,213) Other financing sources (uses): Loansissued - - - SBITAs Sale of capital assets Insurance proceeds - - - Transfers in 378,144 245 420,213 Transfers out (8,600) (844,291) - - Total other financing sources (uses) (8,600) (466,147) 245 420,213 Net change in fund balances 10,057 544,010 (11,753) 25,319,025 (291,915) - Fund balances at beginning of year 485,020 2,114,498 1,125,803 47,222,186 1,620,267 Fund balances at end of year $ 495,077 $ 2,658,508 $ 1,114,050 $ 72,541,211 $ 1,328,352 $ See accompanying independent auditors' report 106 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Special Revenue Revenue Extension Fee Housing Zone Funds Revenue Funds Funds Funds $ $ $ $ 2,951,200 $ $ $ $ 152,945,650 - 86,250 26,778,868 - 10,396,970 19,749 - 31,150 1,061,113 1,361,198 275,606 21,300,313 - 958,050 - - - 85,972 51,302 2,291,171 850 375,905 59,496 316,529 304,282 58,879 176,446 14,057,139 - - - - - - 5,578,033 10,304,659 - - - - - - 176,552 1,845,671 20,599 1,333,955 90,646 3,267,729 1,365,395 1,506,049 6,344,189 239,920,441 52,314 3,062,663 - 153,246 31,039,159 - - 668,018 175,800 37,033,716 9,241 - - 13,322,523 - - - 46,403,018 146,638 5,040,273 - 6,555,464 - - 6,429,749 6,468,243 - 109,817 35,046,843 80,626 - 584,650 1,975 59,459 - 10,600 - - 239,762 - - 23,626,400 9,241 62,914 146,638 5,040,273 3,385,026 668,018 6,868,612 200,139,475 11,358 1,271,041 (55,992) (1,772,544) (2,019,631) 838,031 (524,423) 39,780,966 239,762 560,860 - 47,104 - - - 534,606 5 781,700 193,914 38,983,492 - - - - (37,229,509) 5 - 781,700 239,762 - 193,914 2,896,553 11,363 1,271,041 725,708 (1,772,544) (1,779,869) 838,031 (330,509) 42,677,519 14,434 8,620,369 826,172 5,293,751 8,549,411 4,774,631 3,643,517 293,202,888 $ 25,797 $ 9,891,410 $ 1,551,880 $ 3,521,207 $ 6,769,542 $ 5,612,662 $ 3,313,008 $ 335,880,407 107 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Permanent Funds Debt Service Funds Pooled Resource Pepper Ranch Total Commercial Gas Tax Forest Lakes Recovery Park Conservation Permanent Paper Refunding Limited General Endowment Bank Funds Program Revenue Bonds Obligation Bonds Revenues: Taxes $ S $ $ $ $ Licenses, permits and impact fees Intergovernmental 2,216,900 Charges for services - Fines and forfeitures - Interest earnings 70,248 158,592 228,840 5 214,118 Special assessments - - - - - Miscellaneous - 41,200 41,200 - - Total revenues 70,248 199,792 270,040 5 2,431,018 Expenditures: Current: General government - - - - - Public safety - - - Physical environment 2,067 35,499 37,566 Transportation - - - Economic environment Human services Culture and recreation - Debt service Principal - 12,215,000 Interest 107,489 1,045,827 Fiscal charges - 3,750 Capital outlay - - - - - Total expenditures 2,067 35,499 37,566 107,489 13,264,577 Excess (deficit) of revenues over (under) expenditures 68,181 164,293 232,474 (107,484) (10,833,559) Other financing sources (uses): Loans issued - - - 4,046 SBITAs - Sale of capital assets Insurance proceeds - - Transfers in 105,600 11,300,000 Transfers out - - (36,445) Total other financing sources (uses) - - - 109,646 11,300,000 (36,445) Net change in fund balances 68,181 164,293 232,474 2,162 466,441 (36,445) Fund balances at beginning of year 1,694,410 3,808,968 5,503,378 1,443 1,338,399 36,445 Fund balances at end of year $ 1,762,591 $ 3,973,261 $ 5,735,852 $ 3,605 $ 1,804,840 $ - See accompanying independent auditors' report 108 Debt Service Funds Capital Project Funds Special Tourist Total Emergency Obligation Development Debt County -Wide County -Wide Correctional Medical Refunding Tax Service Capital Parks Library Facilities Services Revenue Bonds Revenue Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees - - 624,426 1,057,418 1,720,080 486,573 2,216,900 887 - - - - 345,065 74,173 633,361 2,712,821 1,055,221 34,756 66,859 25,886 - - 48,157 404 - - - 345,065 74,173 2,850,261 2,761,865 1,680,051 1,092,174 1,786,939 512,459 7,870,567 - - 793,181 39,699 28,236 37,100 - - 97,849 2,739,269 25,314 16,885,000 1,135,000 30,235,000 89,975 6,887,421 2,582,625 10,623,362 25 5,000 1,250 10,000 - - - - - - 4,580,286 4,686,022 - - 45,193 23,777,421 3,718,875 40,868,362 13,468,983 7,425,291 25,314 39,699 73,429 (23,432,356) (3,644,702) (38,018,101) (10,707,118) (5,745,240) 1,066,860 1,747,240 439,030 4,046 - - 89,975 - - 69,325 - - - 75,968 13,050 23,750,000 3,730,300 38,885,900 52,541,234 6,012,728 - - (36,445) (1,207,700) (13,509) (1,116,400) (2,317,100) (638,000) 23,750,000 3,730,300 38,853,501 51,499,477 6,081,594 (1,116,400) (2,317,100) (638,000) 317,644 85,598 835,400 40,792,359 336,354 (49,540) (569,860) (198,970) 2,100,620 2,389,576 5,866,483 52,147,383 23,902,968 563,946 2,038,575 649,158 $ 2,418,264 $ 2,475,174 $ 6,701,883 $ 92,939,742 $ 24,239,322 $ 514,406 $ 1,468,715 $ 450,188 109 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Capital Project Funds Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees Revenues: Taxes $ $ S S $ 18,152,466 $ Licenses, permits and impact fees 11,644,936 27,199,424 - 3,202,378 Intergovernmental - - 4,985,600 - Charges for services 134,529 Fines and forfeitures - - - - Interest earnings 2,982,715 342,992 2,098,027 5,073,827 2,368,603 145,992 Special assessments - 1,721,813 - - - - Miscellaneous 528,431 - - - 1,050,405 - Total revenues 3,511,146 2,064,805 13,742,963 32,273,251 26,691,603 3,348,370 Expenditures: Current: General government - - - - - 44,626 Public safety - - - Physical environment 931,567 739,696 - - Transportation - - 447,883 9,250,087 Economic environment - - Human services - Culture and recreation 44,149 - Debt service Principal - 171,491 Interest 30,594 Fiscal charges - - - - - Capital outlay 11,301,764 3,412,715 950,366 14,524,664 5,385,433 - Total expenditures 12,233,331 4,152,411 994,515 14,972,547 14,837,605 44,626 Excess (deficit) of revenues over (under) expenditures (8,722,185) (2,087,606) 12,748,448 17,300,704 11,853,998 3,303,744 Other financing sources (uses): Loans issued 1,495,954 - - - - SBITAs - - 984,079 Sale of capital assets 2,748 76 Insurance proceeds - - - - - Transfers in 13,659,400 942,479 14,428,915 757,700 Transfers out (369,826) (179,068) (5,804,400) (1,813,267) (14,237,030) (4,799,400) Total other financing sources (uses) 13,289,574 2,259,365 (5,801,652) (1,813,267) 1,176,040 (4,041,700) Net change in fund balances 4,567,389 171,759 6,946,796 15,487,437 13,030,038 (737,956) Fund balances at beginning of year 67,678,579 6,197,999 49,135,437 111,938,706 50,354,261 3,914,124 Fund balances at end of year $ 72,245,968 $ 6,369,758 $ 56,082,233 $ 127,426,143 $ 63,384,299 $ 3,176,168 See accompanying independent auditors' report 110 Capital Project Funds Total Total Law All Terrain Amateur Other Capital Nonmajor Enforcement Vehicle Sports Capital Project Governmental Impact Fees Park Complex Projects Funds Funds $ - $ $ $ 16,152 $ 18,168,618 $ 171,114,268 1,921,643 20,827 47,877,705 74,656,573 - - 4,986,487 17,600,357 134,529 21,434,842 - - - 2,291,171 132,365 126,110 565,253 505,971 18,237,398 33,156,738 - - - - 1,721,813 12,026,472 - - - - 1,627,397 3,514,268 2,054,008 126,110 565,253 542,950 92,753,947 335,794,689 - 7,915,193 38,954,352 40,599 901,715 37,935,431 - 1,708,363 15,068,452 9,697,970 56,100,988 - 6,555,464 - - - - 6,468,243 1,150 1,005,851 174,153 4,087,735 39,134,578 261,466 31,081,116 30,619 10,713,440 - - - 10,000 14,724,000 12,713 59,623,156 83,249,556 40,599 1,150 15,729,851 186,866 84,226,217 325,271,620 2,013,409 124,960 (15,164,598) 356,084 8,527,730 10,523,069 1,495,954 1,500,000 1,074,054 1,634,914 72,149 119,253 - - 89,018 623,624 9,195,767 351,066 97,889,289 175,758,681 (1,721,400) (2,234,948) (613) (36,452,661) (73,718,615) (1,721,400) 6,960,819 350,453 64,167,803 105,917,857 292,009 124,960 (8,203,779) 706,537 72,695,533 116,440,926 2,957,071 3,043,420 (1,505,033) 12,082,258 385,098,852 689,671,601 $ 3,249,080 $ 3,168,380 $ (9,708,812) $ IIZ788,795 $ 457,794,385 $ 806,112,527 111 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Revenues: Taxes $ Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year $ Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Change in inventory SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Infrastructure Sales Tax (Major Fund) Road Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 108,653,900 $ 124,563,002 $ 15,909,102 600,000 7,355,787 6,755,787 - 45 45 109,253,900 131,918,834 22,664,934 276,646,230 64,086,405 212,559,825 276,646,230 64,086,405 212,559,825 (167,392,330) 67,832,429 235,224,759 (4,000,000) (77,972) 3,922,028 (4,000,000) (77,972) 3,922,028 (171,392,330) 67,754,457 239,146,787 373,275,662 272,703,551 (100,572,111) 201,883,332 $ 340,458,008 $ 138,574,676 $ 67,754,457 4,574,695 2,163,314 2,098,332 (64,982) 197,200 302,710 105,510 25,000 80,250 55,250 28,709 41,019 12,310 2,414,223 2,522,311 108,088 26,288,907 25,364,210 924,697 16,000 15,683 317 155,238 64,740 90,498 26,460,145 25,444,633 1,015,512 (24,045,922) (22,922,322) 1,123,600 485 1,115 630 208,599 298,859 90,260 23,949,900 23,953,400 3,500 (1,124,300) (1,124,300) - 23,034,684 23,129,074 94,390 (1,011,238) 206,752 1,217,990 1,161,137 2,895,442 1,734,305 $ 149,899 $ 3,102,194 $ 2,952,295 $ 206,752 56,161 226,373 (78,861) 78,861 112 Unincorporated Area MSTD (Budgetary Basis) Budget Actual Variance $ 65,015,400 $ 62,926,751 $ (2,088,649) 33,500 39,730 6,230 2,694,700 3,102,675 407,975 172,000 506,915 334,915 113,000 1,114, 897 1,001,897 293,200 382,738 89,538 68,321,800 68,073,706 (248,094) 8,813,038 6,414,964 2,398,074 5,417,131 4,676,614 740,517 1,016,091 671,662 344,429 22,969,362 15,045,605 7,923,757 55,600 47,852 7,748 16,273,294 15,677,212 596,082 50,000 49,000 1,000 1,103,732 199,441 904,291 55,698,248 42,782,350 12,915,898 12,623,552 25,291,356 12,667,804 - 6,047 6,047 187,971 204,159 16,188 12,081,100 12,644,313 563,213 (34,032,779) (33,870,359) 162,420 (21,763,708) (21,015,840) 747,868 (9,140,156) 4,275,516 13,415,672 16,202,693 18,669,168 2,466,475 $ 7,062,537 $ 22,944,684 $ 15,882,147 $ 4,275,516 511,403 (2,474) (231,268) 231,268 (10,600,000) 10,600,000 Community Development (Budgetary Basis) Budget Actual Variance 27,069,400 26,652,888 (416,512) 3,350,000 3,203,306 (146,694) 212,000 1,144,175 932,175 51,500 56,873 5,373 30,682,900 31,057,242 374,342 14,626,155 10,236,600 4,389,555 28,978,522 22,539,797 6,438,725 1,919,472 1,609,039 310,433 444,145 430,449 13,696 360,844 35,010 325,834 46,329,138 34,850,895 11,478,243 (15,646,238) (3,793,653) 11,852,585 736 736 - 1,602 1,602 2,696,900 2,688,694 (8,206) (1,639,500) (1,639,500) 1,057,400 1,051,532 (5,868) (14,588,838) (2,742,121) 11,846,717 37,502,238 40,168,716 2,666,478 $ 22,913,400 $ 37,426,595 $ 14,513,195 $ (2,742,121) 709,485 (100,000) 100,000 (1,616,089) 113 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Water Management and Pollution Control Pelican Bay (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 3,583,700 $ 3,423,722 $ (159,978) $ 743,400 $ 708,850 $ (34,550) Licenses, permits and impact fees - - - - Intergovernmental - - - Charges for services 189,500 294,417 104,917 Fines and forfeitures - - - - - - Interest earnings 7,000 71,187 64,187 21,500 109,211 87,711 Special assessments - - - 4,903,400 4,726,626 (176,774) Miscellaneous - - 55,700 62,899 7,199 Total revenues 3,780,200 3,789,326 9,126 5,724,000 5,607,586 (116,414) Expenditures: Current: General government - - - - - Public safety - - - - - - Physical environment 3,735,371 3,104,053 631,318 1,377,440 1,307,947 69,493 Transportation - - - 3,806,329 3,602,244 204,085 Economic environment - - - Human services Culture and recreation - - - Debt service - - - 84,300 84,024 276 Capital outlay 116,402 84,126 32,276 366,092 201,392 164,700 Total expenditures 3,851,773 3,188,179 663,594 5,634,161 5,195,607 438,554 Excess (deficit) of revenues over (under) expenditures (71,573) 601,147 672,720 89,839 411,979 322,140 Other financing sources (uses): Loansissued - - - - - Sale of capital assets 68 68 33,300 33,300 Insurance proceeds - - - - 726 726 Transfers in 45,000 95,273 50,273 34,100 99,196 65,096 Transfers out (279,100) (272,193) 6,907 (687,000) (583,385) 103,615 Total other financing sources (uses) (234,100) (176,852) 57,248 (652,900) (450,163) 202,737 Net change in fund balances (305,673) 424,295 729,968 (563,061) (38,184) 524,877 Fund balances at beginning of year 1,450,673 1,607,456 156,783 2,282,161 2,427,800 145,639 Fund balances at end of year $ 1,145, 000 $ 2,031,751 $ 886,751 $ 1,719,100 $ 2,389,616 $ 670,516 Reconciliation: Net change in fund balance, budgetary basis $ 424,295 $ (38,184) Net change in fair value of investments 39,202 55,521 Change in inventory (12,326) - SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 451,171 $ 17,337 See accompanying independent auditors' report 114 Improvement Districts Fire Control Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance $ 7,258,500 $ 6,926,190 $ (332,310) 157,300 259,888 102,588 95,700 524,474 428,774 - 2,182 2,182 7,511,500 7,712,734 201,234 5,755,454 713,783 5,041,671 3,765,485 1,329,506 2,435,979 1,211,000 1,158,157 52843 2,000 1,872 128 7,762,013 1,570,174 6,191,839 18,495,952 4,773,492 13,722,460 26,007,452 12,486,226 13,923,694 2,000 2,000 - 29,260 29,260 1,183,400 1,275,300 91,900 (1,403,400) (1,387,480) 15,920 (220,000) (80,920) 139,080 25,787,452 12,405,306 14,062,774 17,339,274 16,676,548 (662,726) $ 43,126,726 $ 29,081,854 $ 13,400,048 $ 2,858,322 329,042 (557,300) 557,300 $ 3,187,364 Budget Actual Variance $ 1,710,600 $ 1,660,581 $ (50,019) 1,000 19,274 18,274 (31,745) 1,679,855 1,711,600 3,845,092 3,642,202 202,890 3,845,092 3,642,202 202,890 5,556,692 5,322,057 171,145 2,134,271 2,143,466 9,195 (49,900) (48,926) 974 2,084,371 2,094,540 10,169 7,641,063 7,416,597 181,314 493,000 198,249 (294,751) $ 8,134, 663 $ 7,614, 446 $ (113,437) $ 132,193 11,300 $ 143,493 115 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Lighting District 911 Enhancement Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 899,900 $ 867,735 $ (32,165) $ $ $ Licenses, permits and impact fees - - Intergovernmental 2,060,100 2,452,430 392,330 Charges for services - - - Fines and forfeitures - - - - - - Interest earnings 2,500 28,465 25,965 11,000 45,353 34,353 Special assessments - - - - - - Miscellaneous - 39,650 39,650 - - - Total revenues 902,400 935,850 33,450 2,071,100 2,497,783 426,683 Expenditures: Current: General government - - - - - - Public safety 2,495,900 2,047,829 448,071 Physical environment - - - - - - Transportation 904,200 854,903 49,297 Economic environment - - - Human services Culture and recreation Debt service Capital outlay - - - - - - Total expenditures 904,200 854,903 49,297 2,495,900 2,047,829 448,071 Excess (deficit) of revenues over (under) expenditures (1,800) 80,947 82,747 (424,800) 449,954 874,754 Other financing sources (uses): Loansissued - - - Sale of capital assets Insurance proceeds - - Transfers in 11,196 11,196 Transfers out (27,500) (25,245) 2,255 Total other financing sources (uses) (27,500) (14,049) 13,451 - - Net change in fund balances (29,300) 66,898 96,198 (424,800) 449,954 874,754 Fund balances at beginning of year 683,700 783,161 99,461 2,244,500 1,058,939 (1,185,561) Fund balances at end of year $ 654,400 $ 850,059 $ 195,659 $ 1,819,700 $ 1,508,893 $ (310,8071 Reconciliation: Net change in fund balance, budgetary basis $ 66,898 $ 449,954 Net change in fair value of investments 16,530 29,973 Change in inventory - - SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 83,428 $ 479, 227 See accompanying independent auditors' report 116 Tourist Development State Housing Initiativeship Partnership (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 32,834,800 $ 44,107,953 $ 11,273,153 $ $ $ - 337,747 337,747 12,845,737 4,884,742 (7,960,995) 2,063,549 2,175,960 112,411 - - 401,900 2,611,698 2,209,798 85,048 180,436 95,388 1,000 4,908 3,908 588,025 436,817 (151,208) 35,301,249 49,238,266 13,937,017 13,518,810 5,501,995 (8,016,815) 29,830,499 3,950,218 25,880,281 13, 518,810 1,320,701 12,198,109 32,064,532 18,101,657 13,962,875 4,000 3,800 200 17,147,702 16,082,392 1,065,310 - - - 79,046,733 38,138,067 40,908,666 13,518,810 1,320,701 12,198,109 (43,745,484) 11,100,199 54,845,683 - 4,181,294 4,181,294 3,838 3,838 6,604,600 6,605,369 769 (11,658,800) (11,682,959) (24,159) (31,571) (31,571) (5,054,200) (5,073,752) (19,552) (31,571) (31,571) (48,799,684) 6,026,447 54,826,131 4,149,723 4,149,723 97,120,629 118,004,455 20,883,826 5,414,270 5,414,270 $ 48,320,945 $ 124,030,902 $ 75,709,957 $ $ 9,563,993 $ 9,563,993 $ 6,026,447 $ 4,149,723 1,681,700 127,825 (10,969) 10,969 (3,080,100) 3,080,100 $ 7,708,147 $ 4,277,548 117 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 800 MHZ IRCP Fund State Court Administration (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services 404,000 405,202 1,202 150,000 156,545 6,545 Fines and forfeitures - - - 544,500 683,932 139,432 Interest earnings 1,000 20,533 19,533 500 25,441 24,941 Special assessments - - - - - - Miscellaneous 134,000 164,034 30,034 - - - Total revenues 539,000 589,769 50,769 695,000 865,918 170,918 Expenditures: Current: General government - - - 1,412,200 1,085,585 326,615 Public safety 1,679,621 1,606,708 72,913 1,801,400 1,652,387 149,013 Physical environment - - - - - - Transportation Economic environment Human services Culture and recreation - - - Debt service 410,000 407,129 2,871 Capital outlay 185,099 152,960 32,139 - - - Total expenditures 2,274,720 2,166,797 107,923 3,213,600 2,737,972 475,628 Excess (deficit) of revenues over (under) expenditures (1,735,720) (1,577,028) 158,692 (2,518,600) (1,872,054) 646,546 Other financing sources (uses): Loansissued - - Sale of capital assets Insurance proceeds - - - - - - Transfers in 1,433,360 1,438,067 4,707 2,350,900 2,351,386 486 Transfers out - - - (191,000) (191,000) - Total other financing sources (uses) 1,433,360 1,438,067 4,707 2,159,900 2,160,386 486 Net change in fund balances (302,360) (138,961) 163,399 (358,700) 288,332 647,032 Fund balances at beginning of year 324,060 373,097 49,037 393,500 635,528 242,028 Fund balances at end of year $ 21,700 $ 234,136 $ 212,436 $ 34,800 $ 923,860 $ 889,060 Reconciliation: Net change in fund balance, budgetary basis $ (138,961) $ 288,332 Net change in fair value of investments 4,977 17,105 Change in inventory - - SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in (142,900) Interfund transfers out 142,900 Advances budgeted as transfers - Unbudgeted funds - Net change in fund balance, GAAP basis $ (133,984) $ 305,437 See accompanying independent auditors' report 118 Confiscated Property GAC Land Sales, Roads and Canals (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - 5,000 5,000 - - 2,700 12,600 9,900 13,900 52,137 38,237 - - - - 456,282 456,282 2,700 17,600 14,900 13,900 508,419 494,519 27,500 15,500 12,000 357,000 357,000 27,500 15,500 12,000 357,000 357,000 (24,800) 2,100 26,900 (343,100) 508,419 851,519 (24,800) 2,100 26,900 (343,100) 508,419 851,519 515,800 485,020 (30,780) 2,001,700 2,114,498 112,798 $ 991,000 $ 487,120 $ (3,880) $ 1,658,600 $ 2,622,917 $ 964,317 $ 2,100 $ 508,419 7,957 35,591 119 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Utility Fee Conservation Collier (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 115,000 $ 163,506 $ 48,506 $ 30,577,600 $ 29,209,162 $ (1,368,438) Licenses, permits and impact fees - - - - - Intergovernmental - - - - Charges for services 100,000 100,000 18 18 Fines and forfeitures - - - - - - Interest earnings 5,900 25,660 19,760 333,900 1,720,052 1,386,152 Special assessments - - - - - - Miscellaneous - - 39,000 21,717 (17,283) Total revenues 220,900 289,166 68,266 30,950,500 30,950,949 449 Expenditures: Current: General government - - - - - - Public safety - - - - - - Physical environment 389,400 308,084 81,316 2,111,196 1,636,170 475,026 Transportation - - - - - - Economic environment Human services Culture and recreation Debt service - - - Capital outlay - - - 33,678,146 4,652,543 29,025,603 Total expenditures 389,400 308,084 81,316 35,789,342 6,288,713 29,500,629 Excess (deficit) of revenues over (under) expenditures (168,500) (18,918) 149,582 (4,838,842) 24,662,236 29,501,078 Other financing sources (uses): Loansissued - - - Sale of capital assets Insurance proceeds - - - Transfers in 7,506,300 7,884,444 378,144 Transfers out (8,600) (8,600) (8,437,100) (8,350,591) 86,509 Total other financing sources (uses) (8,600) (8,600) (930,800) (466,147) 464,653 Net change in fund balances (177,100) (27,518) 149,582 (5,769,642) 24,196,089 29,965,731 Fund balances at beginning of year 1,114,700 1,125,803 11,103 48,166,542 47,222,186 (944,356) Fund balances at end of year $ 937,600 $ 1,098,285 $ 160,685 $ 42,396,900 $ 71,418,275 $ 29,021,375 Reconciliation: Net change in fund balance, budgetary basis $ (27,518) $ 24,196,089 Net change in fair value of investments 15,765 1,122,936 Change in inventory - - SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in (7,506,300) Interfund transfers out 7,506,300 Advances budgeted as transfers - Unbudgeted funds - Net change in fund balance, GAAP basis $ (11,753) $ 25,319,025 See accompanying independent auditors' report 120 Court Information Technology Court Services (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - - 482,185 623,719 141,534 1,000,000 830,108 (169,892) 6,534,607 7,720,668 1,186,061 4,200 39,817 35,617 15,000 141,599 126,599 7,031,792 8,485,986 1,454,194 1,004,200 869,925 (134,275) 1,381,800 1,127,588 254,212 7,479,292 8,906,199 (1,426,907) 26,700 8,861 17,839 - - 60,600 38,494 22,106 30,000 12,162 17,838 1,499,100 1,187,105 311,995 7,479,292 8,906,199 (1,426,907) (494,900) (317,180) 177,720 (447,500) (420,213) 27,287 245 245 447,500 420,213 (27,287) 245 245 447,500 420,213 (27,287) (494,900) (316,935) 177,965 - - 1,481,800 1,620,267 138,467 $ 986,900 $ 1,303,332 $ 316,432 $ $ $ $ (316,935) $ 25,020 $ R91,915) $ 121 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 University Extension Court Facilities Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services 19,749 19,749 - Fines and forfeitures - - - 960,000 958,050 (1,950) Interest earnings 400 471 71 35,000 227,370 192,370 Special assessments - - - - - - Miscellaneous - - - - - - Total revenues 400 20,220 19,820 995,000 1,185,420 190,420 Expenditures: Current: General government - - - 5,664,071 52,314 5,611,757 Public safety - - - - - - Physical environment 11,300 9,241 2,059 Transportation - - - Economic environment Human services Culture and recreation Debt service - - - Capital outlay - - - 1,163,584 10,600 1,152,984 Total expenditures 11,300 9,241 2,059 6,827,655 62,914 6,764,741 Excess (deficit) of revenues over (under) expenditures (10,900) 10,979 21,879 (5,832,655) 1,122,506 6,955,161 Other financing sources (uses): Loansissued - - - - Sale of capital assets Insurance proceeds - - Transfers in 5 5 Transfers out - - Total other financing sources (uses) 5 5 - - Net change in fund balances (10,900) 10,984 21,884 (5,832,655) 1,122,506 6,955,161 Fund balances at beginning of year 21,300 14,434 (6,866) 8,956,655 8,620,369 (336,286) Fund balances at end of year $ 10,400 $ 25,418 $ 15,018 $ 3,124,000 $ 9,742,875 $ 6,618,875 Reconciliation: Net change in fund balance, budgetary basis $ 10,984 $ 1,122,506 Net change in fair value of investments 379 148,535 Change in inventory - - SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 11,363 $ 1,271,041 See accompanying independent auditors' report 122 Affordable Housing Economic and Innovation Zones (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ $ $ $ 2,951,200 $ 2,951,200 $ 31,150 31,150 35,800 35,800 16,100 187,167 171,067 66,950 66,950 2,967,300 3,138,367 171,067 1,598,976 146,638 1,452,338 2,408,000 5,040,273 (2,632,273) 1,598,976 146,638 1,452,338 2,408,000 5,040,273 (2,632,273) (1,598,976) (79,688) 1,519,288 559,300 (1,901,906) (2,461,206) 781,700 781,700 2,000,000 (2,000,000) 781,700 781,700 - 2,000,000 (2,000,000) (817,276) 702,012 1,519,288 2,559,300 (1,901,906) (4,461,206) 825,576 826,172 596 5,537,800 5,293,751 (244,049) $ 8,300 $ 1,528,184 $ 1,519,884 $ 8,097,100 $ 3,391,845 $ (4,705,255) $ 702,012 $ (1,901,906) 23,696 129,362 $ 725,708 $ (1,772,544) 123 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Other Court Special Revenue Funds Other Public Safety Revenue Funds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services 1,810,000 1,061,113 (748,887) 75,300 76,582 1,282 Fines and forfeitures - - - 84,600 85,972 1,372 Interest earnings 17,200 304,282 287,082 6,800 35,777 28,977 Special assessments - - - - - - Miscellaneous - - - Total revenues 1,827,200 1,365,395 (461,805) 166,700 198,331 31,631 Expenditures: Current: General government 3,361,900 3,062,663 299,237 - - - Public safety - - - 650,000 104,454 545,546 Physical environment - - - Transportation Economic environment Human services Culture and recreation - - - Debt service 85,000 82,601 2,399 Capital outlay 1,243,074 - 1,243,074 - - - Total expenditures 4,689,974 3,145,264 1,544,710 650,000 104,454 545,546 Excess (deficit) of revenues over (under) expenditures (2,862,774) (1,779,869) 1,082,905 (483,300) 93,877 577,177 Other financing sources (uses): Loansissued - - - Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) - - Net change in fund balances (2,862,774) (1,779,869) 1,082,905 (483,300) 93,877 577,177 Fund balances at beginning of year 5,582,622 8,549,411 2,966,789 1,446,900 4,774,631 3,327,731 Fund balances at end of year $ 2,7 99,848 $ 6,769,542 $ 4,049,694 $ 963,600 $ 4,868,508 $ 3,904,908 Reconciliation: Net change in fund balance, budgetary basis $ (1,779,869) $ 93,877 Net change in fair value of investments 23,102 Change in inventory - SBITA inception related capital outlay not budgeted (239,762) SBITA inception proceeds not budgeted 239,762 Interfund transfers in - Interfund transfers out Advances budgeted as transfers - Unbudgeted funds - 721,052 Net change in fund balance, GAAP basis $ (1,779,869) $ 838,031 See accompanying independent auditors' report 124 Other Public Safety Revenue Funds Resource Recovery Park Endowment (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - 49,600 86,250 36,650 249,100 275,606 26,506 8,200 (8,200) 40,000 51,302 11,302 - - - 12,200 120,335 108,135 15,000 42,933 27,933 5,578,033 5,578,033 - - - - 114,500 176,552 62,052 - - - 6,043,433 6,288,078 244,645 23,200 42,933 19,733 172,500 153,246 19,254 - - - 175,800 175,800 - - - - - - 51,100 2,067 49,033 7,234,624 6,429,749 804,875 365,540 109,817 255,723 7,520 - 7,520 - - - 7,955,984 6,868,612 1,087,372 51,100 2,067 49,033 (1,912,551) (580,534) 1,332,017 (27,900) 40,866 68,766 193,700 193,914 214 193,700 193,914 214 - (1,718,851) (386,620) 1,332,231 (27,900) 40,866 68,766 4,028,466 3,643,517 (384,949) 1,772,600 1,694,410 (78,190) $ 2, 009,615 $ 3,256,897 $ 947,282 $ 1,744,700 $ 1,735,276 $ (9,424) $ (386,620) $ 40,866 56,111 27,315 $ (330,509) $ 68,181 125 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Pepper Ranch Conservation Bank Pooled Commercial Paper Program (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings 25,900 96,930 71,030 Special assessments - - - Miscellaneous 41,200 41,200 - Total revenues 67,100 138,130 71,030 Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year $ Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Change in inventory SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report 4 4 4 4 41,200 35,499 5,701 - 209,300 107,489 101,811 41,200 35,499 5,701 209,300 107,489 101,811 25,900 102,631 76,731 (209,300) (107,485) 101,815 4,046 4,046 209,300 105,600 (103,700) - - 209,300 109,646 (99,654) 25,900 102,631 76,731 - 2,161 2,161 4,008,400 3,808,968 (199,432) 1,443 1,443 4,0 44,300 $ 3,911,599 $ (122,701) $ $ 3,604 $ 3,604 $ 102,631 61,662 126 Gas Tax Refunding Revenue Bonds Forest Lakes Limited General Obligation Bonds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 2,000,000 2,216,900 216,900 1,000 103,991 102,991 400 (400) 2,001,000 2,320,891 319,891 400 (400) 13,277,900 13,264,577 13,323 13,277,900 13,264,577 13,323 - - (11,276,900) (10,943,686) 333,214 400 (400) 11,300,000 11,300,000 - - - (38,500) (36,445) 2,055 11,300,000 11,300,000 - (38,500) (36,445) 2,055 23,100 356,314 333,214 (38,100) (36,445) 1,655 1,319,400 1,338,399 18,999 38,100 36,445 (1,655) $ 1,342,500 $ 1,694,713 $ 352,213 $ $ $ $ 356,314 $ (36,445) 110,127 127 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Special Obligation Refunding Revenue Bonds Tourist Development Tax Revenue Bonds (Budgetary Basis) Obligation Bonds (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings 5,900 313,747 307,847 5,000 36,475 31,475 Special assessments - - - - - - Miscellaneous - - - - - Total revenues 5,900 313,747 307,847 5,000 36,475 31,475 Expenditures: Current: General government - - - - - - Public safety Physical environment Transportation Economic environment Human services Culture and recreation - - - - - - Debt service 23,816,700 23,777,421 39,279 3,731,200 3,718,875 12,325 Capital outlay - - - - - Total expenditures 23,816,700 23,777,421 39,279 3,731,200 3,718,875 12,325 Excess (deficit) of revenues over (under) expenditures (23,810,800) (23,463,674) 347,126 (3,726,200) (3,682,400) 43,800 Other financing sources (uses): Loansissued - - Sale of capital assets Insurance proceeds - - - - Transfers in 23,750,000 23,750,000 3,730,300 3,730,300 Transfers out - - - - Total other financing sources (uses) 23,750,000 23,750,000 3,730,300 3,730,300 - Net change in fund balances (60,800) 286,326 347,126 4,100 47,900 43,800 Fund balances at beginning of year 1,366,000 2,100,620 734,620 2,453,400 2,389,576 (63,824) Fund balances at end of year $ 1,305,200 $ 2,386,946 $ 1,081,746 $ 2,457,500 $ 2,437,476 $ (20,024) Reconciliation: Net change in fund balance, budgetary basis $ 286,326 $ 47,900 Net change in fair value of investments 31,318 37,698 Change in inventory - - SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 317,644 $ 85, 998 See accompanying independent auditors' report 128 County -Wide Capital Improvements Parks Improvements (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - - - 590,000 624,426 34,426 887 887 - - - 130,000 1,594,034 1,464,034 115,000 647,692 532,692 - 48,157 48,157 - 404 404 130,000 1,643,078 1,513,078 705,000 1,272,522 567,522 22,876,885 7,870,567 15,006,318 - - - 5,952,031 793,181 5,158,850 95,799 37,100 58,699 106,067 97,849 8,218 9,861,942 2,739,269 7,122,673 90,000 90,000 - - - - 41,467,472 4,490,311 36,977,161 14,665,270 4,686,022 9,979,248 70,588,254 13,379,008 57,209,246 24,527,212 7,425,291 17,101,921 (70,458,254) (11,735,930) 58,722,324 (23,822,212) (6,152,769) 17,669,443 - - - 69,325 69,325 - 75,968 75,968 154,090 13,050 (141,040) 51,421,100 52,541,234 1,120,134 6,405,800 6,012,728 (393,072) (35,757,700) (1,207,700) 34,550,000 (171,436) (13,509) 157,927 15,663,400 51,409,502 35,746,102 6,388,454 6,081,594 (306,860) (54,794,854) 39,673,572 94,468,426 (17,433,758) (71,175) 17,362,583 55,601,804 52,147,383 (3,454,421) 25,650,489 23,902,968 (1,747,521) $ 806,950 $ 91,820,955 $ 91,014,005 $ 8,216,731 $ 23,831,793 $ 15,615,062 $ 39,673,572 $ (71,175) 1,118,787 407,529 (89,975) 89,975 $ 40,792,359 $ 336,354 129 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) County -Wide Library Impact Fees Correctional Facilities Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 1,000,000 1,057,418 57,418 1,800,000 1,720,080 (79,920) 4,000 22,343 18,343 7,000 39,569 32,569 1,807,000 1,759,649 (47,351) 1,004,000 1,079,761 75,761 186,982 39,699 147,283 108,822 25,314 83,508 108,822 25,314 83,508 186,982 39,699 147,283 895,178 1,054,447 159,269 1,620,018 1,719,950 99,932 (1,116,400) (1,116,400) (2,317,100) (2,317,100) (1,116,400) (1,116,400) (2,317,100) (2,317,100) Net change in fund balances (221,222) (61,953) 159,269 (697,082) (597,150) 99,932 Fund balances at beginning of year 285,622 563,946 278,324 2,206,082 2,038,575 (167,507) Fund balances at end of year $ 64,400 $ 501,993 $ 437,593 $ 1,509,000 $ 1,441,425 $ (67,575) Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Change in inventory SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report $ (61,953) 1 Z413 $ (49,540) $ (597,150) 27,290 $ (569,860) 130 Emergency Medical Services Impact Fees Water Management (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - 500,000 486,573 (13,427) 7,000 16,115 9,115 350,500 1,816,727 1,466,227 - - 528,431 528,431 - 507,000 502,688 (4,312) 878,931 2,345,158 1,466,227 141,858 28,236 113,622 - - - - - - 4,262,253 931,567 3,330,686 106,962 45,193 61,769 69,656,974 11,301,764 58,355,210 248,820 73,429 175,391 73,919,227 12,233,331 61,685,896 258,180 429,259 171,079 (73,040,296) (9,888,173) 63,152,123 13,659,400 13,659,400 - (638,000) (638,000) (11,345,401) (369,826) 10,975,575 (638,000) (638,000) 2,313,999 13,289,574 10,975,575 (379,820) (208,741) 171,079 (70,726,297) 3,401,401 74,127,698 630,420 649,158 18,738 74,330,868 67,678,579 (6,652,289) $ 550,600 $ 440,417 $ 189,817 $ 3,604,571 $ 71,079,980 $ 67,475,409 $ (208,741) $ 3,401,401 9,771 1,165,988 $ (198,970) $ 4,567,389 131 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Pelican Bay Capital Improvements Parks Impact Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ - $ - $ Licenses, permits and impact fees 11,300,000 11,644,936 344,936 Intergovernmental - - - Charges for services Fines and forfeitures - - - Interest earnings 10,100 215,822 205,722 209,000 1,257,010 1,048,010 Special assessments 1,785,900 1,721,813 (64,087) - - - Miscellaneous - - - - - - Total revenues 1,796,000 1,937,635 141,635 11,509,000 12,901,946 1,392,946 Expenditures: Current: General government - - - - - - Public safety - - - Physical environment 815,047 739,696 75,351 Transportation - - - Economic environment Human services - - - Culture and recreation 261,543 44,149 217,394 Debt service - - - - - - Capital outlay 12,861,463 3,412,715 9,448,748 49,614,218 950,366 48,663,852 Total expenditures 13,676,510 4,152,411 9,524,099 49,875,761 994,515 48,881,246 Excess (deficit) of revenues over (under) expenditures (11,880,510) (2,214,776) 9,665,734 (38,366,761) 11,907,431 50,274,192 Other financing sources (uses): Loans issued 5,500,000 1,495,954 (4,004,046) - - Sale of capital assets - - 2,748 2,748 Insurance proceeds - - - - - Transfers in 917,700 942,479 24,779 Transfers out (351,200) (179,068) 172,132 (5,804,400) (5,804,400) - Total other financing sources (uses) 6,066,500 2,259,365 (3,807,135) (5,804,400) (5,801,652) 2,748 Net change in fund balances (5,814,010) 44,589 5,858,599 (44,171,161) 6,105,779 50,276,940 Fund balances at beginning of year 7,014,410 6,197,999 (816,411) 51,163,761 49,135,437 (2,028,324) Fund balances at end of year $ 1,200,400 $ 6,242,588 $ 5,042,188 $ 6,992,600 $ 55,241,216 $ 48,248,616 Reconciliation: Net change in fund balance, budgetary basis $ 44,589 $ 6,105,779 Net change in fair value of investments 127,170 841,017 Change in inventory - - SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 171, 559 $ 6,946,796 See accompanying independent auditors' report 132 Road Impact Districts Road Construction (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 16,291,800 $ 18,152,466 $ 1,860,666 19,100,000 27,199,424 8,099,424 - - - - - - 4,211,300 4,985,600 774,300 93,221 134,529 41,308 457,000 3,077,541 2,620,541 230,000 1,446,215 1,216,215 - - - 120,649 1,050,405 929,756 19,557,000 30,276,965 10,719,965 20,946,970 25,769,215 4,822,245 9,467,837 447,883 9,019,954 13,558,196 9,250,087 4,308,109 - - - 210,000 202,085 7,915 92,616,780 14,524,664 78,092,116 74,655,495 4,401,354 70,254,141 102,084,617 14,972,547 87,112,070 88,423,691 13,853,526 74,570,165 (82,527,617) 15,304,418 97,832,035 (67,476,721) 11,915,689 79,392,410 76 76 - 14,425,900 14,428,915 3,015 (5,392,123) (1,813,267) 3,578,856 (15,860,481) (14,237,030) 1,623,451 (5,392,123) (1,813,267) 3,578,856 (1,434,581) 191,961 1,626,542 (87,919,740) 13,491,151 101,410,891 (68,911,302) 12,107,650 81,018,952 117,884,654 111,938,706 (5,945,948) 81,402,968 50,354,261 (31,048,707) $ 29,964,914 $ 125,429,857 $ 95,464,943 $ 12,491,666 $ 62,461,911 $ 49,970,245 $ 13,491,151 $ 12,107,650 1,996,286 922,388 (984,079) 984,079 $ 15,487,437 $ 13,030,038 133 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Government Facilities Impact Fees Law Enforcement Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ $ $ $ Licenses, permits and impact fees 3,200,000 3,202,378 2,378 2,000,000 1,921,643 (78,357) Intergovernmental - - - - - Charges for services Fines and forfeitures - - - - - - Interest earnings 15,000 87,177 72,177 10,000 79,913 69,913 Special assessments - - - - - - Miscellaneous - - - - Total revenues 3,215,000 3,289,555 74,555 2,010,000 2,001,556 (8,444) Expenditures: Current: General government 125,531 44,626 80,905 - - - Public safety - - - 154,716 40,599 114,117 Physical environment - - - Transportation Economic environment Human services Culture and recreation Debt service - - Capital outlay - - - 200 - 200 Total expenditures 125,531 44,626 80,905 154,916 40,599 114,317 Excess (deficit) of revenues over (under) expenditures 3,089,469 3,244,929 155,460 1,855,084 1,960,957 105,873 Other financing sources (uses): Loansissued - - - - - - Sale of capital assets Insurance proceeds - - Transfers in 757,700 757,700 Transfers out (4,799,400) (4,799,400) (1,721,400) (1,721,400) Total other financing sources (uses) (4,041,700) (4,041,700) - (1,721,400) (1,721,400) - Net change in fund balances (952,231) (796,771) 155,460 133,684 239,557 105,873 Fund balances at beginning of year 3,919,331 3,914,124 (5,207) 2,746,016 2,957,071 211,055 Fund balances at end of year $ 2,967,100 $ 3,117,353 $ 150,253 $ 2,879,700 $ 3,196,628 $ 316,928 Reconciliation: Net change in fund balance, budgetary basis $ (796,771) $ 239,557 Net change in fair value of investments 58,815 52,452 Change in inventory - - SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ (737,9561 $ 992,009 See accompanying independent auditors' report 134 All Terrain Vehicle Park Amateur Sports Complex (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 15,000 77,063 62,063 150,000 375,449 225,449 15,000 77,063 62,063 150,000 375,449 225,449 210,270 1,150 209,120 1,100,000 1,005,851 94,149 - - - 28,464,705 14,724,000 13,740,705 210,270 1,150 209,120 29,564,705 15,729,851 13,834,854 (195,270) 75,913 271,183 (29,414,705) (15,354,402) 14,060,303 11,629,323 9,195,767 (2,433,556) - (2,234,948) (2,234,948) 11,629,323 6,960,819 (4,668,504) (195,270) 75,913 271,183 (17,785,382) (8,393,583) 9,391,799 3,196,070 3,043,420 (152,650) 17,792,882 (1,505,033) (19,297,915) $ 3,0 00,800 $ 3,119,333 $ 118,533 $ 7,500 $ (9,898,616) $ M 06,1161 $ 75,913 $ (8,393,583) 49,047 189,804 $ 124,960 $ 203,779) 135 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2023 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest earnings Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Change in inventory SBITA inception related capital outlay not budgeted SBITA inception proceeds not budgeted Interfund transfers in Interfund transfers out Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Other Capital Projects (Budgetary Basis) Budget Actual Variance $ 15,900 $ 16,152 $ 252 8,000 20,827 12,827 6,800 310,297 303,497 30,700 347,276 316,576 50,509 50,509 71,518 71,518 414,552 174,153 240,399 11,716,357 12,713 11,703,644 12,252,936 186,866 12,066,070 (12,222,236) 160,410 12,382,646 311,300 351,066 39,766 (101,000) (613) 100,387 210,300 350,453 140,153 (12,011,936) 510,863 12,522,799 12,502,635 12,082,258 (420,377) $ 490,699 $ 12,593,121 $ 12,102,422 $ 510,863 195,674 $ 706,537 136 NONMAJOR ENTERPRISE FUNDS AIRPORT AUTHORITY - To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT - To account for the provision of public transportation throughout the County. 137 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS September 30, 2023 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds ASSETS Current assets: Cash and investments $ 7,145,283 $ 2,512,614 $ 9,657,897 Receivables: Trade, net 4,567 17,005 21,572 Interest 9,561 4,789 14,350 Leases 204,245 - 204,245 Due from other funds - 28,718 28,718 Due from other governments 2,182 1,080 3,262 Inventory 221,616 - 221,616 Prepaid costs - 21,350 21,350 Restricted assets: Cash and investments 41,213 285,392 326,605 Due from other governments 3,531 2,278,209 2,281,740 Total current assets 7,632,198 5,149,157 12,781,355 Noncurrent assets: Receivables: Leases 2,841,171 - 2,841,171 Capital assets: Land and nondepreciable capital assets 1,993,887 7,614,627 9,608,514 Depreciable capital assets, net 47,663,104 18,839,497 66,502,601 Total noncurrent assets 52,498,162 26,454,124 78,952,286 Total assets 60,130,360 31,603,281 91,733,641 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB 5,155 1,432 6,587 Deferred outflows of resources related to pensions 323,540 104,005 427,545 Total deferred outflows of resources 328,695 105,437 434,132 LIABILITIES Current liabilities: Accounts payable 275,728 916,688 1,192,416 Wages payable 80,758 28,280 109,038 Due to other governments 6,144 6,037 12,181 Unearned revenues 9,350 - 9,350 Compensated absences 85,222 29,117 114,339 Total OPEB Liability 4,283 1,190 5,473 Liabilities payable from restricted assets Accounts payable 4,414 719,815 724,229 Due to other governments - 130,960 130,960 Refundable deposits 9,826 100 9,926 Total current liabilities 475,725 1,832,187 2,307,912 Noncurrent liabilities: Compensated absences 21,306 7,279 28,585 Total OPEB liability 61,496 17,082 78,578 Net pension liability 1,402,191 436,586 1,838,777 Total noncurrent liabilities 1,484,993 460,947 1,945,940 Total liabilities 1,960,718 2,293,134 4,253,852 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 2,985,150 - 2,985,150 Deferred inflows of resources related to OPEB 11,394 3,165 14,559 Deferred inflows of resources related to pensions 54,188 15,183 69,371 Total deferred inflows of resources 3,050,732 18,348 3,069,080 NET POSITION Net investment in capital assets 49,652,577 26,411,517 76,064,094 Restricted for: Grants and other purposes 30,504 1,755,333 1,785,837 Unrestricted 5,764,524 1,230,386 6,994,910 Total net position LH5.447.605 S 29.397.236 S 84.844.841 See accompanying independent auditors' report 138 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For The Fiscal Year Ended September 30, 2023 Operating revenues: Charges for services Miscellaneous Total operating revenues Operating expenses: Personal services General and administrative Depreciation and amortization Total operating expenditures Operating loss Non -operating revenues (expenses): Operating grants and contributions Interest earnings Insurance reimbursement Interest expense Gain on disposal of capital assets Total non -operating revenues (expenses) Loss before contributions and transfers Capital grants and contributions Transfers in Transfers out Total transfers and contributions Changes in net position Net position - beginning Net position - ending See accompanying independent auditors' report Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds $ 9,549,206 $ 1,047,666 $ 10,596,872 24,403 33,362 57,765 9,573,609 1,081,028 10,654,637 2,088,958 644,285 2,733,243 7,021,751 14,147,658 21,169,409 2,610,681 2,198,680 4,809,361 11,721,390 16,990,623 28,712,013 (2,147,781) (15,909,595) (18,057,376) 35,228 4,171,143 4,206,371 381,780 169,410 551,190 12,247 - 12,247 (15,665) (15,665) 26,921 - 26,921 440,511 4,340,553 4,781,064 (1,707,270) (11,569,042) (13,276,312) 312,082 5,152,421 5,464,503 230 5,660,180 5,660,410 (410,600) - (410,600) (98,288) 10,812,601 10,714,313 (1,805,558) (756,441) (2,561,999) 57,253,163 30,153,677 87,406,840 $ 55, 447,605 $ 29,397,236 S 84,844,841 139 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For The Fiscal Year Ended September 30, 2023 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Cash flows from operating activities: Cash received for services $ 9,564,522 $ 1,080,260 $ 10,644,782 Cash payments for goods and services (6,678,495) (9,644,676) (16,323,171) Cash payments to employees (1,697,938) (559,888) (2,257,826) Cash payments for interfund services (594,251) (3,828,826) (4,423,077) Net cash provided by (used for) operating activities 593,838 (12,953,130) (12,359,292) Cash flows from non -capital financing activities: Cash received from operating grants 53,095 5,864,578 5,917,673 Cash transfers from other funds 785,813 5,658,880 6,444,693 Cash transfers to other funds (2,812,503) - (2,812,503) Net cash provided by (used for) non -capital financing activities (1,973,595) 11,523,458 9,549,863 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 12,247 - 12,247 Proceeds from disposal of capital assets 30,667 13,000 43,667 Proceeds from capital grants 1,141,549 4,502,887 5,644,436 Proceeds from leasing activities 202,097 - 202,097 Payments for capital acquisitions (705,827) (3,543,280) (4,249,107) Net cash provided by capital and related financing activities 680,733 972,607 1,653,340 Cash flows from investing activities: Interest on investments 381,049 169,459 550,508 Net cash provided by investing activities 381,049 169,459 550,508 Net decrease in cash and investments (317,975) (287,606) (605,581) Cash and investments, October 1, 2022 $ 7,504,471 $ 3,085,612 $ 10,590,083 Cash and investments, September 30, 2023 $ 7,1 66,496 $ 2,798,006 $ 9,984,502 Cash and investments $ 7,145,283 $ 2,512,614 $ 9,657,897 Cash and investments - restricted 41,213 285,392 326,605 Cash and investments, September 30, 2023 $ 7,186,496 $ 2,798,006 $ 9,984,502 Operating loss $ (2,147,781) $ (15,909,595) $ (18,057,376) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation expense 2,610,681 2,198,680 4,809,361 Net changes in assets and liabilities: Trade receivable (2,330) (768) (3,098) Inventory (36,023) - (36,023) Prepaid costs - (21,350) (21,350) Accounts payable 17,625 695,506 713,131 Wages payable 14,537 2,394 16,931 Due to other governments (524) - (524) Compensated absences (7,651) 5,537 (2,114) Unearned revenue (6,233) - (6,233) Total OPEB liability 7,116 1,018 8,134 Deferred outflows of resources related to OPEB (3,190) (397) (3,587) Deferred inflows of resources related to OPEB (2,836) (1,313) (4,149) Net pension liability 474,853 91,869 566,722 Deferred outflows of resources related to pensions (87,430) (12,047) (99,477) Deferred inflows of resources related to pensions (4,379) (2,664) (7,043) Deferred inflows of resources related to leases (232,597) - (232,597) Total adjustments 2,741,619 2,956,465 5,698,084 Net cash provided by (used for) operating activities $ 593,838 $ (12,953,130) $ (12,359,292) Non -cash investing, capital and financing activities: Change in fair value of investments $ 119,021 $ 61,649 $ 180,670 Change in capital related grant receivable (829,467) 649,534 (179,933) Capital related accounts payable 4,414 42,607 47,021 See accompanying independent auditors' report 140 INTERNAL SERVICE FUNDS SELF-INSURANCE — To account for the self-insurance costs of providing coverage for property, general and vehicle liability. To account for the provisions of health benefits to Board and participating constitutional officer employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. SHERIFF'S SELF-INSURANCE — To account for the provisions of health benefits to Sheriff employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. FLEET MANAGEMENT — To account for fuel, oil, lubricants, repairs and maintenance of County vehicles and the use of certain County owned vehicles by County employees. MOTOR POOL CAPITAL RECOVERY — To account for the accumulation of resources for the replacement of vehicles and heavy equipment for County governmental activities. INFORMATION TECHNOLOGY — To account for the costs of operating the County data processing facility and telephone communication system. 141 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS September 30, 2023 ASSETS Current assets: Cash and investments Receivables: Trade, net Interest Due from other funds Due from other governments Inventory Prepaid costs Total current assets Noncurrent assets: Capital assets: Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Wages payable Due to other governments Unearned revenues Self-insurance claims payable Compensated absences Total OPEB Liability Lease payable SBITA liability Total current liabilities Noncurrent liabilities: Self-insurance claims payable Compensated absences Lease payable SBITA liability Total OPEB liability Net pension liability Total noncurrent liabilities Total liabilities Deferred inflows of resources related to OPEB Deferred inflows of resources related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position See accompanying independent auditors' report Sheriff's Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total $ 45,599,114 $ 17,554,268 $ 2,567,765 $ 22,252,607 $ 8,411,534 $ 96,385,288 1,162,830 547,615 5,428 - - 1,715,873 62,183 26,826 2,474 28,389 13,160 133,032 32,222 - - - - 32,222 313 251,459 3,597 255,369 - 711,884 - 711,884 4,433,498 - - 2,058,996 6,492,494 51,290,160 18,128,709 3,539,010 22,280,996 10,487,287 105,726,162 1,494,605 7,355,058 8,713,568 4,888,805 22,452,036 1,494,605 7,355,058 8,713,568 4,888,805 22,452,036 52,784,765 18,128,709 10,894,068 30,994,564 15,376,092 128,178,198 4,582 8,591 286 12,027 25,486 364,753 615,650 16,065 1,031,003 2,027,471 369,335 624,241 16,351 1,043,030 2,052,957 1,196,670 506,703 349,984 442,886 2,496,243 89,080 167,306 4,437 259,967 520,790 5,023 - 32,224 - - 37,247 27,652 108,195 - 135,847 7,853,455 3,804,000 - - - 11,657,455 83,145 - 133,370 850 287,662 505,027 3,808 7,139 238 9,995 21,180 3,335 - - - 3,335 146,973 - - - 129,660 276,633 9,409,141 3,912,195 846,742 355,509 1,130,170 15,653,757 2,416,047 - - - 2,416,047 20,786 33,343 213 71,915 126,257 280 - - - 280 1,187,993 - - 130,102 1,318,095 54,662 102,493 3,416 143,490 304,061 1,505,542 2,609,087 72,052 4,217,507 8,404,188 5,185,310 2,744,923 75,681 4,563,014 12,568,928 14,594,451 3,912,195 3,591,665 431,190 5,693,184 28,222,685 10,128 18,991 633 26,587 56,339 49,198 93,778 3,074 133,061 279,111 59,326 112,769 3,707 159,648 335,450 156,024 - 7,355,058 8,363,584 4,597,159 20,471,825 38,344,299 14,216,514 458,817 22,212,434 5,969,131 81,201,195 $ 38,500,323 $ 14,216,514 $ 7,813,875 $ 30,576,018 $ 10,566,290 $ 101,673,020 142 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2023 Sheriff's Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating revenues: Charges for services $ 60,152,734 $ 32,509,201 $ 12,877,199 $ 4,536,800 $ 10,230,753 $ 120,306,687 Miscellaneous 1,419,788 - 37,777 - 504 1,458,069 Total operating revenues 61,572,522 32,509,201 12,914,976 4,536,800 10,231,257 121,764,756 Operating expenses: Personal services 2,282,151 - 3,988,318 106,132 6,179,973 12,556,574 General and administrative 14,867,583 3,335,095 9,228,891 7,700 7,191,871 34,631,140 Insurance claims paid 46,964,472 28,477,848 - - - 75,442,320 Depreciation and amortization 230,940 - 642,383 1,979,217 1,296,083 4,148,623 Total operating expenditures 64,345,146 31,812,943 13,859,592 2,093,049 14,667,927 126,778,657 Operating income (loss) (2,772,624) 696,258 (944,616) 2,443,751 (4,436,670) (5,013,901) Non -operating revenues (expenses): Interest earnings 2,009,041 498,231 80,782 909,808 421,803 3,919,665 Insurance reimbursement 318,681 - - 35,527 - 354,208 Interest expense (39,620) - - (903) (40,523) Gain on disposal of capital assets 148 - 28,500 416,900 1,594 447,142 Total non -operating revenues (expenses) 2,288,250 498,231 109,282 1,362,235 422,494 4,680,492 Income (loss) before contributions and transfers (484,374) 1,194,489 (835,334) 3,805,986 (4,014,176) (333,409) Transfers in 4,000,313 - 253,247 853,500 8,150,700 13,257,760 Transfers out (76,600) (113,400) - - (190,000) Total transfers and contributions 3,923,713 - 139,847 853,500 8,150,700 13,067,760 Changes in net position 3,439,339 1,194,489 (695,487) 4,659,486 4,136,524 12,734,351 Net position - beginning 35,060,984 13,022,025 8,509,362 25,916,532 6,429,766 88,938,669 Net position - ending $ 38,500, 223 $ 44,216,514 $ 7,813,875 $ 00,576,018 $ 10,566,290 $ 101,673,020 See accompanying independent auditors' report 143 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2023 Cash flows from operating activities: Cash received from other funds for services Cash received from other governments for services Cash received from employees for services Cash received from retirees for services Cash payments on behalf of retirees Cash payments for goods and services Cash payments for self insurance claims Cash payments to employees Cash payments for interfund services Net cash provided by (used for) operating activities Cash flows from non -capital financing activities: Cash transfers from other funds Cash transfers to other funds Net cash provided by (used for) non -capital financing activities Cash flows from capital and related financing activities: Receipts from insurance reimbursements Proceeds from disposal of capital assets Payments for capital acquisitions Principal payments on leases Principal payments on SBITA Interest and fiscal agent fees paid Net cash provided by (used for) capital and related financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Net increase in cash and investments Cash and investments, October 1, 2022 Cash and investments, September 30, 2023 Sheriff's Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total $ 54,677,122 $ 30,900,000 $ 12,470,523 $ 4,536,800 $ 10,231,258 $ 112,815,703 - - 489,800 - - 489,800 8,218,588 - - 8,218,588 745,845 1,557,909 2,303,754 (2,037,794) - (2,037,794) (14,123,435) (3,284,319) (8,841,580) (8,907,704) (35,157,038) (47,346,448) (28,438,299) (75,784,747) (1,889,766) (3,233,871) (75,161) (5,126,742) (10,325,540) (781,340) (347,134) (7,700) (363,095) (1,499,269) (2,537,228) 735,291 537,738 4,453,939 (4,166,283) (976,543) 4,000,019 45,000 853,500 8,150,700 13,049,219 (76,619) (113,400) - - (190,019) 3,923,400 (68,400) 853,500 8,150,700 12,859,200 300,547 - 35,527 - 336,074 148 28,500 416,900 1,594 447,142 - (108,655) (1,947,524) (2,639,059) (4,695,238) (3,284) (3,284) (172,730) (129,222) (301,952) (39,620) (903) (40,523) 85,061 (80,155) (1,495,097) (2,767,590) (4,257,781) 2,005,016 489,893 80,243 903,275 418,564 3,896,991 2,005,016 489,893 80,243 903,275 418,564 3,896,991 3,476,249 1,225,184 469,426 4,715,617 1,635,391 11,521,867 42,122,865 16,329,084 2,098,339 17,536,990 6,776,143 84,863,421 $ 45,599,114 $ 17,554,268 $ 2,567,765 $ 22,252,607 $ 8,411,534 $ 96,385,288 144 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2023 Sheriff's Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating income (loss) $ (2,772,624) $ 696,258 $ (944,616) $ 2,443,751 $ (4,436,670) $ (5,013,901) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization expense 230,940 - 642,383 1,979,217 1,296,083 4,148,623 Net changes in assets and liabilities: Trade receivable (187,924) (299,451) (5,428) - - (492,803) Due from other funds (32,222) - (32,222) Due from other governments 50,775 50,775 Inventory (77,161) (77,161) Prepaid costs (2,356,563) - (1,993,496) (4,350,059) Accounts payable 347,541 120,198 (85,431) 382,308 Wages payable 20,348 34,536 4,437 40,155 99,476 Due to other governments 830 (2,860) - - (2,030) Compensated absences (21,215) - 1,166 1,001 73,699 54,651 Unearned revenue (11,047) (516) - - - (11,563) Self-insurance claims payable 1,851,456 339,000 - - - 2,190,456 Total OPEB liability 13,610 - 19,912 203 15,454 49,179 Deferred outflows of resources related to OPEB (1,634) (3,504) (90) (2,443) (7,671) Deferred inflows of resources related to OPEB (1,650) (4,665) (257) (10,438) (17,010) Net pension liability 460,543 835,816 24,072 1,162,477 2,482,908 Deferred outflows of resources related to pensions (79,136) (136,507) (1,056) (208,056) (424,755) Deferred inflows of resources related to pensions 1,519 - 7,693 2,661 (17,617) (5,744) Total adjustments 235,396 39,033 1,482,354 Z010,188 270,387 4,037,358 Net cash provided by (used for) operating activities $ (2,537,228) $ 735,291 $ 537,738 $ 4,453,939 $ (4,166,283) $ (976,543) Non -cash investing, capital and financing activities: Change in fair value of investments $ 756,991 $ - $ 36,227 $ 354,694 $ 154,152 $ 1,302,064 SBITA right -to -use assets acquired 1,507,696 - - 388,984 1,896,680 Capital related accounts payable - - 349,984 31,884 381,868 See accompanying independent auditors' report 145 �O er aunty FIDUCIARY FUNDS CLERK OF COURTS CUSTODIAL FUND —To account for monies held in Trust by the Clerk of the Circuit Court prior to disbursement. SHERIFF CUSTODIAL FUND — To account for monies held in a custodial capacity by the Sheriff. TAX COLLECTOR CUSTODIAL FUND — To account for assets held by the Tax Collector prior to legal disbursement. 147 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS September 30, 2023 Clerk Tax of Courts Sheriff Collector Custodial Fund Custodial Fund Custodial Fund Total ASSETS Cash and investments $ 24,851,118 $ 633,353 $ 5,174,552 $ 30,659,023 Trade receivable, net - 6,369 8,878 15,247 Due from other governments - 13,284 13,284 Total assets $ 24,851,118 $ 639,722 $ 5,196,714 $ 30,687,554 LIABILITIES Due to other governments $ 5,640,054 $ 74,773 $ 5,047,009 $ 10,761,836 Due to individuals - 975 149,705 150,680 Total liabilities $ 5,640,054 $ 75,748 $ 5,196,714 $ 10,912,516 FIDUCIARY NET POSITION Restricted for individuals and governments $ 19,211,064 $ 563,974 $ - $ 19,775,038 See accompanying independent auditors' report 148 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS For The Fiscal Year Ended September 30, 2023 Clerk Tax of Courts Sheriff Collector Custodial Fund Custodial Fund Custodial Fund Total ADDITIONS: Contributions for individuals $ 18,216,947 $ 3,911,897 $ - $ 22,128,844 Fees collected for other governments 166,822,144 784,508 889,012,367 1,056,619,019 Miscellaneous - 10,713 606,650 617,363 Total additions 185,039,091 4,707,118 889,619,017 1,079,365,226 DEDUCTIONS: Beneficiary payments to individuals 17,568,732 3,906,256 - 21,474,988 Payment of fees to other governments 166,650,883 148,589 889,619,017 1,056,418,489 Payments to other entities - 389,506 - 389,506 Total deductions 184,219,615 4,444,351 889,619,017 1,078,282,983 Net increase in fiduciary net position 819,476 262,767 - 1,082,243 Fiduciary net position - beginning of year 18,391,588 301,207 18,692,795 Fiduciary net position - end of year $ 19,211,064 $ 563,974 $ $ 19,775,038 149 �O er aunty COMPONENT UNITS COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY - The authority was established for the purpose of facilitating projects that promote economic growth and opportunities for employment in Collier County. COLLIER COUNTY HEALTH FACILITIES AUTHORITY - The authority was established for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. COLLIER COUNTY HOUSING FINANCE AUTHORITY - The authority was established forthe purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY - The authority was established for the purpose of assisting institutions of higher education in the construction, financing and refinancing of projects. 151 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS September 30, 2023 Industrial Health Housing Educational Development Facilities Finance Facilities Authority Authority Authority Authority Total ASSETS Cash and investments $ 91,038 $ 47,417 $ 279,969 $ 65,652 $ 484,076 Total assets $ 91,038 $ 47,417 $ 279,969 $ 65,652 $ 484,076 NET POSITION Unrestricted $ 91,038 $ 47,417 $ 279,969 $ 65,652 $ 484,076 Total Net Position $ 91,038 $ 47,417 $ 279,969 $ 65,652 $ 484,076 See accompanying independent auditors' report 152 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS For The Fiscal Year Ended September 30, 2023 Program Revenues Fees, Fines and Operating Grants Functions/Programs Expenses Charges for Services and Contributions Industrial Development Authority Health Facilities Authority Housing Finance Authority Educational Facilities Authority Total See accompanying independent auditors' report Net(Expense) Revenue and Changes in Net Position Governmental Activities $ 32,675 $ $ $ (32,675) 6,175 (6,175) 10,175 (10,175) 11,185 65,000 53,815 $ 60,210 $ $ 65,000 $ 4,790 General revenues: Miscellaneous revenue Total general revenues Change in net position Net position - beginning Net position - ending 3,725 3,725 8,515 475,561 $ 484,076 153 �O er aunty OTHER SUPPLEMENTAL INFORMATION Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. 155 COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL For The Fiscal Year Ended September 30, 2023 Amount Amount Received Expended in the in the 2023 2023 Source Fiscal Year Fiscal Year British Petroleum: Gulf Seafood and Tourism Promotional Fund S S Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2023 fiscal year. 156 STATISTICAL SECTION 4M. y �O er aunty Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non -accounting data. These schedules reflect social and economic data, and financial trends of Collier County, Florida. FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government's financial perfomance and wellbeing have changed over time. NetPosition by Component....................................................................................................................................... 160 Changein Net Position............................................................................................................................................... 162 Governmental Activities Tax Revenues by Source.................................................................................................. 164 Fund Balances of Governmental Funds.................................................................................................................... 165 Changes in Fund Balances of Governmental Funds...............................................................................................166 REVENUE CAPACITY These schedules contain trend information to help the reader assess the County's most significant local revenue source, Property Tax. Assessed Value and Estimated Actual Value of Taxable Property.......................................................................168 Property Tax Rates — All Direct and Overlapping Governments............................................................................170 PrincipalTaxpayers County-Wide.............................................................................................................................. 171 Property Tax Levies and Collections......................................................................................................................... 172 DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Ratios of Outstanding Debt by Type.......................................................................................................................... 173 LegalDebt Margin Information.................................................................................................................................. 174 Direct, Overlapping and Underlapping Governmental Activities Debt...................................................................174 Pledged -Revenue Coverage....................................................................................................................................... 175 DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place. Demographic and Economic Statistics.................................................................................................................... 176 PrincipalEmployers..................................................................................................................................................... 177 OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Budgeted Full -Time Equivalent County Employees by Function...........................................................................178 Operating Indicators by Function.............................................................................................................................. 179 Capital Asset Statistics by Function......................................................................................................................... 180 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. 159 COLLIER COUNTY, FLORIDA NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2023 2022 2021 2020 2019 2018 Governmental Activities: Net investment in capital assets $ 1,604,950 $ 1,509,272 $ 1,396,962 $ 1,331,163 $ 1,302,980 $ 1,287,184 Restricted 932,472 782,820 660,442 559,050 478,719 362,045 Unrestricted 99,589 87,851 42,882 (23,652) (32,158) (29,328) Total governmental activities net position $ 2,637,011 $ 2,379,943 $ 2,100,286 $ 1,866,561 $ 1,749,541 $ 1,619,901 Business -type Activities: Net investment in capital assets $ 882,904 $ 870,966 $ 846,257 $ 818,092 $ 777,814 $ 763,259 Restricted 46,639 48,511 50,827 42,036 39,371 31,982 Unrestricted 296,239 240,180 241,239 215,623 205,756 143,198 Total business -type activities net position $ 1,225,782 $ 1,159,657 $ 1,138,323 $ 1,075,751 $ 1,022,941 $ 938,439 Primary Government: Net investment in capital assets $ 2,487,854 $ 2,380,238 $ 2,243,219 $ 2,149,255 $ 2,080,794 $ 2,050,443 Restricted 979,111 831,331 711,269 601,086 518,090 394,027 Unrestricted 395,828 328,031 284,121 191,971 173,598 113,870 Total primary government net position $ 3,862,793 $ 3,539,600 $ 3,238,609 $ 2,942,312 $ 2,772,482 $ 2,558,340 160 Fiscal Year 2017 2016 2015 2014 $ 1,257,685 $ 1,225,520 $ 1,217,176 $ 1,207,751 336,922 327,968 298,360 223,526 (24,011) 2,478 13,109 169,633 $ 1,570,596 $ 1,555,966 $ 1,528,645 $ 1,600,910 $ 741,912 $ 723,000 $ 714,239 $ 705,065 32,619 35,760 31,511 29,749 168,602 169,287 165,128 185,420 $ 943,133 $ 928,047 $ 910,878 $ 920,234 $ 1,999,597 $ 1,948,520 $ 1,931,415 $ 1,912,816 369,541 363,728 329,871 253,275 144,591 171,765 178,237 355,053 $ 2,513,729 $ 2,484,013 $ 2,439,523 $ 2,521,144 161 COLLIER COUNTY, FLORIDA CHANGE IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2023 2022 2021 2020 2019 2018 Expenses Governmental activities: General government $ 179,599 $ 138,961 $ 129,810 $ 135,978 $ 134,018 $ 126,920 Public safety 330,024 274,244 237,435 266,736 254,341 223,177 Transportation 97,579 94,079 88,679 89,954 88,200 83,386 Culture and recreation 86,605 70,800 59,348 56,900 59,401 58,042 Other activities 117,725 97,039 114,798 54,967 52,500 64,822 Interest on long-term debt 10,320 10,818 14,601 12,321 13,223 9,736 Total governmental activities expenses $ 821,852 $ 685,941 $ 644,671 $ 616,856 $ 601,683 $ 566,083 Business -type activities: Water and Sewer $ 190,639 $ 175,794 $ 166,035 $ 155,368 $ 153,602 $ 144,113 Solid Waste 85,475 51,071 51,896 49,158 47,529 106,823 Emergency Medical Services 43,838 41,626 27,782 33,761 34,871 32,275 Airport Authority 11,762 11,612 7,805 6,168 6,361 5,533 Mass Transit 17,200 14,766 13,638 13,716 13,090 12,680 Total business -type activities expenses 348,914 294,869 267,156 258,171 255,453 301,424 Total primary government expenses S 1.170.766 S 980.810 S 111.827 S 775.027 $857.136 S 667.507 Program Revenues Governmental activities: Charges for services: General government $ 44,893 $ 46,133 $ 40,237 $ 39,204 $ 39,981 $ 37,703 Public safety 25,318 28,900 29,790 25,037 26,137 28,040 Transportation 1,532 1,700 1,897 1,425 1,206 2,111 Culture and recreation 10,483 10,015 7,617 5,055 7,808 7,886 Other activities 1,513 1,257 3,566 1,959 1,862 Z235 Operating Grants and Contributions 73,672 79,246 98,708 34,025 30,313 29,549 Capital Grants and Contributions 52,102 132,702 50,311 47,343 56,268 47,645 Total governmental activities program revenues 209,513 299,953 232,126 154,048 163,575 155,169 Business -type activities: Charges for services: Water and Sewer $ 192,611 $ 177,260 $ 168,017 $ 162,702 $ 155,839 $ 145,757 Solid Waste 64,854 60,340 59,078 53,885 51,928 50,449 Emergency Medical Services 15,570 18,491 14,206 13,069 13,854 12,836 Airport Authority 9,498 9,633 7,242 4,959 4,639 3,951 Mass Transit 1,081 1,140 1,086 978 1,203 1,129 Operating Grants and Contributions 42,508 8,172 26,394 11,548 46,592 16,426 Capital Grants and Contributions 47,787 48,197 42,974 42,099 37,888 38,670 Total business -type activities program revenues 373,909 323,233 318,997 289,240 311,943 269,218 Total primary government program revenues 583,422 623,186 551,123 443,288 475,518 424,387 Net (expense)/revenue: Governmental activities (612,339) (385,988) (412,545) (462,808) (438,108) (410,914) Business -type activities 24,995 28,364 51,841 31,069 56,490 (32,206) Total primary government net expense S (587,344) S (357.624) S (360.704) S (431.739) S (381.618) S (443.120) General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property taxes $ 518,877 $ 447,901 $ 400,607 $ 376,140 $ 356,099 $ 337,447 Gas taxes 24,846 24,196 22,920 21,005 24,485 22,749 Sales taxes 68,746 65,043 55,732 45,228 49,550 44,093 Infrastructure sales tax 124,563 120,376 99,588 81,735 60,787 - Tourist taxes 44,108 47,470 36,192 26,062 31,653 27,962 Other taxes 6,690 6,658 6,289 6,438 7,140 6,914 State revenue sharing 18,831 17,758 13,776 12,343 13,194 12,564 Interest earnings 62,110 (55,942) 1,639 14,336 24,113 6,857 Miscellaneous 18,892 7,899 18,407 11,523 17,594 18,121 Transfers, net (18,257) (15,714) (8,880) (15,020) (16,837) (16,487) Total governmental activities $ 869,406 S 665,645 $ 646270 $ 579,790 $ 567778 $ 460220 Business -type Activities: Interest earnings $ 21,606 $ (22,905) $ 394 $ 5,870 $ 9,699 $ Z602 Miscellaneous 1,266 161 1,457 851 1,476 8,423 Transfers, net 18,257 15,714 8,880 15,020 16,837 16,487 Total business -type activities 41,129 (7,030) 10,731 21,741 28,012 27,512 Total primary government S 110,535 S 658.615 S 557.001 S 001,531 S 595.790 S 487.732 Change in Net Position Governmental activities $ 257,067 $ 279,657 $ 233,725 $ 116,982 $ 129,670 $ 49,306 Business -type activities 66,124 21,334 62,572 52,810 84,502 (4,694) Total primary government S 323,191 $ 300,991 $ 296,297 S 169,792 $ 214,172 S 44,612 162 Fiscal Year 2017 2016 2015 2014 $ 108,388 $ 104,188 $ 93,644 $ 92,176 225,360 205,347 174,874 177,267 75,589 70,560 70,296 71,623 51,889 49,526 45,117 41,630 41,899 48,256 45,621 39,171 11,294 1 Z077 12,912 12,674 $ 514,419 $ 489,954 $ 442,464 $ 434,541 $ 144,850 $ 130,792 $ 122,858 $ 112,643 43,664 39,271 36,411 33,787 28,644 26,529 24,094 23,208 4,905 4,402 4,771 3,764 11,354 11,333 10,416 10,306 233,417 21 Z327 198,550 183,708 S 747.836 S 702,281 S 641,014 S 618,249 $ 33,377 $ 35,184 $ 34,240 $ 34,662 24,240 25,276 25,227 21,765 2,024 4,880 1,094 959 8,192 8,393 8,685 7,943 1,467 1,230 4,237 2,661 26,539 26,387 35,521 31,444 38,124 36,818 29,986 28,945 133,963 138,168 138,990 128,379 $ 135,045 $ 123,856 $ 116,645 $ 107,924 45,209 41,918 39,121 35,368 11,812 13,161 12,327 9,922 3,734 3,073 3,350 2,589 1,267 1,225 1,719 1,641 5,025 4,435 5,142 3,077 26,993 25,367 21,165 30,662 229,085 213,035 199,469 191,183 363,048 351,203 338,459 319,562 (380,456) (351,786) (303,474) (306,162) (4,332) 708 919 7,475 S (384,788) S (351.078) S (302,555) S (298.687) $ 312,633 $ 281,136 $ 259,779 $ 244,404 21,799 20,478 19,547 18,556 41,799 40,659 38,573 35,786 21,961 21,838 21,188 19,137 7,478 7,280 7,322 7,840 11,602 11,100 10,589 9,657 3,574 4,891 5,069 2,599 9,714 5,976 17,510 13,333 (14,793) (14,250) (14,192) (13,185) $ 415,767 $ 379108 $ 365,385 $ 338,127 $ 1,379 $ 2,011 $ Z209 $ 1,301 126 200 94 68 14,793 14,250 14,192 13,184 16,298 16,461 16,495 14,553 S 432.065 S 395,569 S 381,880 S 352,680 $ 35,311 $ 27,322 $ 61,911 $ 31,965 11,966 17,169 17,414 22,028 S 47,277 S 44,491 S 79,325 S 53,993 163 COLLIER COUNTY, FLORIDA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Property Gas Sales Infrastructure Tourist Other Year Tax Tax Tax Sales Tax Tax Taxes Total 2014 $ 244,404 $ 18,556 $ 35,786 $ $ 19,137 $ 7,840 $ 325,723 2015 259,779 19,547 38,573 21,188 7,322 346,409 2016 281,136 20,478 40,659 21,838 7,280 371,391 2017 312,633 21,799 41,799 21,961 7,478 405,670 2018 337,447 22,749 44,093 27,962 6,914 439,165 2019 356,099 24,485 49,550 60,787 31,653 7,140 529,714 2020 376,140 21,005 45,228 81,735 26,062 6,438 556,608 2021 400,607 22,920 55,732 99,588 36,192 6,289 621,328 2022 447,901 24,196 65,043 120,376 47,470 6,658 711,644 2023 518,877 24,846 68,746 124,563 44,108 6,690 787,830 164 COLLIER COUNTY, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 General fund Nonspendable $ 5,189 $ 3,811 $ 2,785 $ 2,779 $ 2,383 $ 2,645 $ 3,386 $ 3,675 $ 3,546 $ 19,843 Restricted 76 197 580 1,087 461 306 2,440 264 345 125 Assigned 29,293 35,243 12,281 11,664 1,115 1,736 1,598 1,674 1,299 850 Unassigned 129,010 114,549 117,116 104,299 103,707 77,342 54,805 53,961 55,002 57,781 Total general fund $ 163,568 $ 1 33,800 $ 332,762 $ 119,829 $ 007,666 $ 22,029 $ 62,229 $ 59,574 $ 00,192 $ 88,599 All other governmental funds Nonspendable $ 7,198 $ 6,993 $ 6,623 $ 3,490 $ 2,887 $ 8,135 $ 2,385 $ 3,055 $ 3,112 $ 53,544 Restricted 964,567 822,398 722,297 560,480 522,311 354,514 328,447 324,334 293,281 242,981 Committed 58,730 48,432 44,582 41,517 40,355 34,788 32,759 26,069 25,663 27,349 Assigned 161,986 110,481 84,392 52,613 31,977 21,129 33,822 28,644 30,800 28,391 Unassigned (21,285) (1,636) - - - (246) - (89) (514) (62,085) Total all other governmental funds $ 1,1 11,196 $ 986,668 $ 857,894 $ 558,100 $ 997,530 $ 4 88,320 $ 997,413 $ 3 22,013 $ 3 22,342 $ 2 00,180 165 COLLIER COUNTY, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2023 2022 2021 2020 2019 2018 Revenues: Taxes $ 710,628 $ 637,798 $ 556,387 $ 503,593 $ 471,127 $ 386,814 Licenses, permits and impact fees 74,882 87,077 79,468 68,989 78,182 75,102 Intergovernmental 155,490 159,873 174,230 96,684 100,191 92,206 Charges for services 43,598 44,586 38,570 34,959 37,255 36,981 Fines and forfeitures 2,705 2,498 2,567 2,334 2,491 2,375 Interest earnings 58,191 (51,856) 1,575 13,178 22,046 6,133 Special assessments 12,026 15,228 5,610 5,619 7,452 4,789 Miscellaneous 5,719 6,454 11,851 6,799 5,566 4,527 Total revenues 1,063,239 901,658 870,258 732,155 724,310 608,927 Expenditures: Current: General government 140,034 118,232 109,729 108,008 103,445 101,198 Public safety 269,511 247,700 226,655 219,808 213,829 198,097 Physical environment 40,098 25,747 21,050 20,986 23,728 31,994 Transportation 58,366 59,272 53,788 53,316 45,245 45,904 Economic environment 42,700 40,858 13,824 9,395 8,378 9,942 Human services 25,028 25,208 77,191 20,242 17,005 15,849 Culture and recreation 64,120 56,473 49,493 46,246 48,793 47,671 Debt service: Principal 32,456 28,761 31,084 26,507 23,127 21,864 Interest 10,914 13,519 13,151 12,731 11,521 10,165 Redemption of debt - - 10,000 - - - Other fiscal charges 10 171 1,084 21 801 128 Capital outlay 177,660 127,836 164,344 129,056 107,881 82,871 Total expenditures 860,897 743,777 771,393 646,316 603,753 565,683 Excess of revenues over expenditures 202,342 157,881 98,865 85,839 120,557 43,244 Other financing sources (uses): Bonds issued - - 99,175 62,965 - Loans issued 1,500 1,000 - 28,060 12,000 Refunding loans issued - 108,425 - - 43,713 Premiums on bonds issued - 16,925 3,238 - Discount on loans issued (189) - - Payment to refunding escrow - (108,044) - - (44,525) Leases 237 865 2,658 358 Subscription based information technology arrangements 7,414 - - - - - Sale of capital assets 1,219 4,662 337 712 376 1,065 Insurance proceeds 12,834 842 4,157 2,104 6,416 3,762 Transfers in 205,310 185,203 236,502 144,991 140,633 114,358 Transfers out (236,560) (200,834) (246,785) (161,271) (157,399) (132,910) Total other financing sources (uses) (8,046) (8,070) 112,969 (13,106) 84,289 (2,537) Net change in fund balances $ 194,296 $ 149,811 $ 211,834 $ 72,733 $ 204,846 $ 40,707 Debt service as a percentage of noncapital expenditures 6.35°i 6.86% 7.41°i 7.59% 6.99°i 6.63% 166 Fiscal Year 2017 2016 2015 2014 $ 355,885 $ 322,915 $ 300,341 $ 282,315 59,217 61,033 51,319 40,631 86,656 83,949 92,818 89,392 34,008 38,362 37,172 35,149 2,263 2,708 2,866 3,252 3,233 4,440 4,606 2,393 4,350 3,746 3,132 2,922 8,705 6,600 16,063 11,553 554,317 523,753 508,317 467,607 89,193 84,599 78,147 73,739 197,762 177,375 167,788 163,169 12,465 15,283 16,157 11,276 41,003 36,011 36,992 38,789 8,199 11,061 9,159 9,265 15,058 14,038 13,151 12,367 42,889 40,886 37,523 34,114 21,439 20,743 20,039 18,510 11,908 12,713 13,555 14,177 5,588 - - - 48 19 21 173 80,495 67,198 62,186 63,613 526,047 479,926 454,718 441,278 28,270 43,827 53,599 26,329 5,293 89,780 (89,622) 1,915 155 306 595 314 339 796 379 316 117,833 121,654 196,026 97,854 (133,834) (137,530) (208,760) (110,052) (10,214) (14,774) (9,845) (11,410) $ 18,056 $ 29,053 $ 43,754 $ 14,919 7.58% 8.11% 8.56% 8.66% 167 COLLIER COUNTY, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Year Government Ended Residential Commercial Institutional and Industrial Agricultural September 30 Property Property Other Property Property Property 2014 $ 57,656,527 $ 3,912,768 $ 4,523,093 $ 629,143 $ 266,888 2015 61,457,718 4,082,445 4,692,490 651,646 268,161 2016 66,559,709 4,377,974 5,067,190 682,762 282,725 2017 73,334,846 4,681,110 5,252,880 763,216 282,376 2018 79,459,537 5,047,802 5,438,701 841,128 280,507 2019 83,819,751 5,360,190 5,681,034 923,980 283,625 2020 87,951,024 6,001,743 5,936,391 1,073,086 282,370 2021 93,113,447 6,691,606 6,257,252 1,195,303 276,441 2022 98,746,606 6,636,506 6,516,129 1,274,347 292,672 2023 114,910,903 7,662,665 7,158,582 1,469,083 297,269 Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year. (') The basis of assessed value required by the state is 100 i of actual value including tax exemptions. Source: Property Appraiser Recapitulation Report Personal Property $ 2,200,895 2,186,145 2,353,841 2,342,953 2,448,008 2,534,892 2,619,748 2,755,010 2,835,230 3,052,293 168 Centrally Assessed Property Less: Tax Exempt Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value Assessed Value as a Percentage of Actual Value0) $ 152 $ 8,539,822 $ 60,649,644 4.1592 $ 69,189,466 100% 195 8,741,753 64,597,047 4.1582 73,338,800 100% 134 9,235,508 70,088,827 4.1572 79,324,335 100% 211 9,537,260 77,120,332 4.2029 86,657,592 100% 246 9,905,942 83,609,987 4.1851 93,515,929 100% 244 10,317,449 88,286,267 4.1827 98,603,716 100% 232 10,676,611 93,187,983 4.1876 103,864,594 100% 221 11,121,148 99,168,132 4.1906 110,289,280 100% 193 11,622,676 104,679,007 4.4407 116,301,683 100% 200 12,400,782 122,150,213 4.4391 134,550,995 100% 169 COLLIER COUNTY, FLORIDA PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (unaudited) Collier County Other Special Debt Capital Fiscal General Revenue Service Project Collier County Independent Year Fund Funds Funds Funds Total School District Districts Total 2014 3.5645 0.5873 0.0074 0.0000 4.1592 5.6900 1.2228 11.0720 2015 3.5645 0.5860 0.0077 0.0000 4.1582 5.5800 1.1853 10.9235 2016 3.5645 0.5856 0.0071 0.0000 4.1572 5.4800 1.1331 10.7703 2017 3.5645 0.6323 0.0061 0.0000 4.2029 5.2450 1.1138 10.5617 2018 3.5645 0.6145 0.0061 0.0000 4.1851 5.1220 1.2375 10.5446 2019 3.5645 0.6122 0.0060 0.0000 4.1827 5.0490 1.2331 10.4648 2020 3.5645 0.6172 0.0059 0.0000 4.1876 5.0830 1.2272 10.4978 2021 3.5645 0.6202 0.0058 0.0001 4.1906 5.0160 1.2262 10.4328 2022 3.5645 0.8761 0.0000 0.0001 4.4407 4.8890 1.2155 10.1152 2023 3.5645 0.8745 0.0000 0.0001 4.4391 4.4590 1.1988 10.0969 Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year. Sources: Property Appraiser Recapitulation Report Collier County Adopted Budget 170 COLLIER COUNTY, FLORIDA PRINCIPAL TAXPAYERS COUNTY -WIDE 2023 TAX ROLL (unaudited) 2023 Property Taxes Owner/Taxpayer Levied Siena Lakes, LLC $ 1,808,904 The Moorings, Inc. 1,526,495 WSR-NB, LLC 1,481,360 Naples Beach Club Land Trust 1 1,469,319 Marco Hotel, LLC 1,373,795 PR Mercato, LLP 1,370,978 Pearl at Founders Sq, LLC 1,280,693 HHR Naples, LLC 1,137,629 Naples Beach Club Land Trust 1 1,127,813 SD Livingston, LLC 1,044,785 Florida Power & Light Company - Century Link Lee County Electric Naples HMA, Inc. Wal-Mart Stores East, LP Coastland Center Joint Venture - Total $ 13,621,771 Total Property Taxes Levied - County -Wide $ 1,423,612,295 Amounts for taxpayers with similar names have not been combined Sources: Property Appraiser's taxpayer listing in order of taxes levied. Property Appraiser Recapitulation Report. Rank 1 2 3 4 5 6 7 8 9 10 2014 Percent of Total Taxes Levied Property Taxes Levied Rank Percent of Total Taxes Levied 0.13% $ - 0.11 % 1,083,753 3 0.15% 0.10% - 0.00% 0.10% - 0.00% 0.10% 972,845 4 0.14% 0.10% 729,373 8 0.10% 0.09% - 0.00% 0.08% 1,476,622 2 0.21% 0.08 % - 0.00% 0.07% - 0.00% 0.00% 3,200,226 1 0.44% 0.00% 912,077 5 0.13% 0.00% 908,657 6 0.13% 0.00% 760,708 7 0.11 % 0.00% 720,495 9 0.10% 0.00% 685,444 10 0.10% 0.96% $ 11,450,200 1.61 % $ 719,514,055 171 COLLIER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Year Total County Tax Collected within the Total County Tax Ended Levy for Fiscal Year of the Levy Levy Cost September 30 Population(') Fiscal YearM Amount Percentage of Levy Per Person 2014 336,783 $ 252,323 $ 243,084 96.5% $ 749 2015 343,802 268,604 259,121 96.5% 781 2016 350,202 291,369 281,114 96.4% 832 2017 357,470 324,123 312,507 96.4% 907 2018 367,347 349,928 337,361 96.4% 953 2019 376,706 369,257 356,075 96.4% 980 2020 375,752 390,115 376,086 96.4% 1,038 2021 382,680 415,635 400,531 96.4% 1,086 2022 390,912 464,860 447,901 96.4% 1,189 2023 399,480 542,294 518,859 95.7% 1,357 Property taxes levied apply only to General, Special Revenue, Debt Service Funds and Capital Projects Funds. Property tax levies are based on assessed values as of January 1 st and become due and payable on November 1 st of each year. A four percent discount is allowed if the taxes are paid by November 30, with the discount declining by one percent each month thereafter. Accordingly, taxes collected are not 100 percent of the amount levied. Taxes become delinquent on April 1 st of each year and tax certificates for the unpaid taxes must be sold no later than June 1 st of each year. Property taxes receivable and a corresponding reserve for uncollectible property taxes are not included in the financial statements as there are no significant delinquent taxes as of September 30, 2023. Sources: (') https://www.bebr.ufl.edu/population/population-data-archive/ (I) Property Appraiser Recapitulation Report 172 COLLIER COUNTY, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities Fiscal Year Limited General Obligation Bonds') Direct Placement Revenue Loans and BondsM Notes Payable Other Loans, Leases and SBITA(1) 2014 $ 4,223 $ 277,885 $ 96,861 $ 23 2015 3,369 259,563 95,116 151 2016 2,941 246,135 87,360 93 2017 2,499 232,147 79,227 31 2018 2,037 175,975 102,930 23 2019 1,560 226,896 145,952 15 2020 1,063 209,822 136,549 7,31 2021 - 309,856 111,582 7,42 2022 178,680 208,979 8,30 2023 169,849 186,388 16,83 (') Amounts include the unamortized premium or discount Business -type Activities Direct Placement Other Loans, Total Percentage Revenue Loans and Leases Primary of Personal Per BondsM Notes Payable(') and SBITA(1) Government Income(2) Capita(1) $ 78,470 $ 17,100 $ 114,235 $ 589,004 2.47% $ 1,749 60,976 28,714 105,549 554,806 2.05% 1,614 59,954 24,727 96,954 519,008 1.74% 1,482 59,351 108,278 931 482,749 1.53% 1,350 58,748 129,141 587 469,654 1.38% 1,278 139,382 113,576 239 627,758 1.65% 1,666 138,524 98,165 957 592,391 1.44% 1,577 297,456 82,476 703 809,498 1.91 % 2,115 293,299 67,624 677 757,568 1.66% 1,938 233,355 106,030 1,233 713,687 1.37% 1,787 (1) See the Schedule of Demographic and Economic Statistics for personal income and population data. (3) Collier County adopted GASB Statement No. 87, Leases in the 2020 fiscal year and GASB Statement 96, Subscription -Based Information Technology Arrangements in the 2023 fiscal year. (4) Does not include private development note payable. 173 COLLIER COUNTY, FLORIDA LEGAL DEBT MARGIN INFORMATION As Of September 30, 2023 (unaudited) The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. DIRECT, OVERLAPPING AND UNDERLYING DEBT As of September 30, 2023 (unaudited) Estimated Estimated Percentage Share of Debt Applicable Based Overlapping Outstanding on Population (1) Debt Direct Debt: Governmental Activities Special Obligation Revenue Bonds (1)(3) $ 108,580,664 Tourist Development Tax Revenue Bonds 61,268,636 Direct Placement Loans and Notes Payable 186,388,264 Leases, SBITA and Other Loans (3) 16,593,116 Total Governmental Activities Direct Debt 372,830,680 Overlapping Debt: N/A - Underlying Debt: City of Naples (°) 1,787,391 City of Marco Island (5) 16,731,482 City of Everglades (6) - Subtotal, Underlying Debt 18,518,873 Total Direct, Overlapping and Underlying Debt $ 391,349,553 (') Amounts include the unamortized premium or discount. (2) Population numbers obtained from University of Florida Bureau of Economic and Business Research. Totals consist of more than one issuance. �0 Governmental activities debt outstanding amount obtained from the City of Naples. (5) Governmental activities debt outstanding amount obtained from the City of Marco Island. (6) Governmental activities debt outstanding amount obtained from the City of Everglades. 100.00% $ 108,580,664 100.00% 61,268,636 100.00 % 186,388,264 100.00% 16,593,116 372,830,680 0.00% 4.83°i 86,331 4.05% 677,625 0.09 i - 8.97°i 763,956 $ 373,594,636 174 COLLIER COUNTY, FLORIDA PLEDGED -REVENUE COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities: Gas Tax Bonds and Direct Placement Loans Special Obligation Bonds and Direct Placement LoansM Legally Available Gas Non -Ad Fiscal Tax Debt Service Valorem Debt Service Year Collections Principal Interest CoverageM Collections(') Principal Interest CoverageM 2014 $ 18,556 $ 8,040 $ 4,018 1.54 $ 91,043 $ 9,145 $ 9,674 4.84 2015 19,547 9,440 3,697 1.49 102,375 8,885 9,426 5.59 2016 20,478 9,900 3,242 1.56 107,268 9,280 9,020 5.86 2017 21,799 10,195 2,939 1.66 108,577 9,705 8,591 5.93 2018 22,749 10,510 2,737 1.72 118,725 10,258 7,012 6.87 2019 22,709 10,830 2,542 1.70 125,162 10,865 7,191 6.93 2020 21,005 11,170 2,178 1.57 124,638 11,362 7,244 6.70 2021 22,920 11,515 1,802 1.72 129,594 11,841 8,458 6.38 2022 24,196 11,875 1,413 1.82 152,914 14,798 9,354 6.33 2023 24,776 12,215 1,046 1.87 165,483 16,885 6,887 6.96 Business -type Activities: Water and Sewer Revenue Bonds and Direct Placement Loans Water/ Sewer Less: Net Fiscal Charges Operating Available Debt Service Year and Other() ExpensesM Revenue Principal Interest Coverage (1) 2014 $ 109,514 $ 69,710 $ 39,804 $ 5,967 $ 3,986 4.00 2015 118,066 74,344 43,722 6,073 3,639 4.50 2016 125,456 84,474 40,982 3,986 2,841 6.00 2017 136,064 97,904 38,160 3,902 2,818 5.68 2018 155,847 90,507 65,340 5,528 3,050 7.62 2019 163,653 98,281 65,372 6,261 4,091 6.31 2020 169,444 100,866 68,578 6,384 6,189 5.45 2021 170,927 106,913 64,014 6,500 6,066 5.09 2022 160,302 113,392 46,910 9,016 10,959 2.35 2023 209,447 125,794 83,653 5,610 10,851 5.08 Gas Tax Collections divided by annual total debt service requirements for the respective fiscal year. ts� The revenues that comprise the legally available non -ad valorem revenues are defined by bond documents; these revenues include Sales Tax and certain impact fees and are averaged over two fiscal years. (3) Legally Available Non -Ad Valorem Collections divided by annual total debt service requirements for the respective fiscal year. Current year collections are $168,095,843. (°) Operating revenues plus other income; certain interest earnings, gain on disposal of assets, capital grants and contributions and transfers in are not included. (1) Total operating expenses, excluding depreciation and amortization; loss on disposal of assets, interest expense and transfers out are not included. (1) Net available revenue divided by annual total senior lien debt service requirements for the County Water and Sewer District. Coverage must be at least 1.00. 175 COLLIER COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years (unaudited) Fiscal Year Population(') Personal Income() Per Capita Personal Income Median Age(') School Enrollment() Unemployment Rate(5) 2014 336,783 $ 23,834,645,000 $70,772 47.6 44,415 6.3% 2015 343,802 27,082,008,000 78,772 48 45,228 5.2% 2016 350,202 29,889,525,000 85,349 48.5 47,289 4.9% 2017 357,470 31,512,180,000 88,153 49.2 49,394 3.6% 2018 367,347 33,958,713,000 92,443 49.7 47,934 3.3% 2019 376,706 38,058,323,000 101,029 50.3 48,441 3.2% 2020 375,752 41,014,314,000 109,153 50.8 47,048 5.7% 2021 382,680 42,413,331,000 110,832 51.3 48,838 3.6% 2022 390,912 45,539,558,000 116,496 51.5 49,692 2.8% 2023 399,480 52,200,912,000 130,672 52.2 49,662 3.3% Sources: rid OF BEBR Florida Estimates of Population 2023 fred stlouisfed.org/series/PI12021 fred.stlouisfed.ora/series/B01002001E012021 (') collierschools.com/Page/34 (5) floridaiobs.org 176 COLLIER COUNTY, FLORIDA PRINCIPAL EMPLOYERS (unaudited) 2023 2014 Percent of Percent of Total County Total County Employer Employees Rank Employment Employees Rank Employment Collier County Public Schools 6,927 1 4.22% 5,281 1 4.20°% NCH Healthcare System 4,247 2 2.58% 4,000 2 3.18% Arthex, Inc. 3,973 3 2.42% 1,056 8 0.84% Publix Supermarkets 3,457 4 2.10% 2,805 3 2.23% Collier County Government (excl. Sheriff) 2,649 5 1.61 % 2,211 4 1.76% Collier County Sheriffs Office 1,446 6 0.88% 1,389 5 1.10% JW Marriott- Marco Island 1.130 7 0.69% Ritz Carlton Hotel Seminole Casino - Immokalee City of Naples Gargiulo, Inc. Hometown Inspection Svs. Waldorf Astoria (Registry Resort) Other employers Totals Sources: Southwest Florida Economic Development Alliance Collier County Public Schools NCH Healthcare System Publix Corporate Office Arthrex, Inc. 1,100 8 0.67% 900 9 0.55% 514 10 0.31 % 138,015 164,358 1,110 6 0.88% 1,110 900 760 83.97°% 105,140 100.00% 125,762 7 0.88% 9 0.72 % 10 0.61 % 177 COLLIER COUNTY, FLORIDA BUDGETED FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION 0) Last Ten Fiscal Years (unaudited) Fiscal Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Function: General government 1,456 1,434 1,374 1,366 1,342 1,299 1,351 1,262 1,217 1,216 Public safety 1,133 1,104 1,111 1,100 1,080 1,089 1,112 1,124 1,096 1,072 Physical environment 105 97 94 90 80 73 73 70 69 67 Transportation 236 232 233 235 228 224 219 211 192 187 Economic environment 40 31 26 27 31 30 29 26 27 28 Human services 70 70 70 61 58 58 58 56 56 53 Culture and recreation 361 354 370 340 347 337 324 304 298 294 Water and Sewer 476 467 434 438 436 414 410 384 342 340 Solid Waste 44 44 45 44 45 43 31 28 27 28 Emergency Medical Services 228 202 202 202 202 199 194 193 193 172 Airport Authority 18 17 15 15 15 15 15 15 14 14 Collier Area Transit 5 5 5 5 5 5 4 4 3 3 Total 4,172 4,057 3,979 3,923 3,869 3,786 3,820 3,677 3,534 3,474 (') Includes the Board of County Commissioners and the Constitutional Officers 178 COLLIER COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Function: Police: Physical arrests 8,224 7,285 6,519 6,227 9,072 9,266 8,269 9,359 9,347 9,418 Parking violations 410 429 362 333 817 894 1,068 867 931 964 Traffic violations 30,041 32,146 24,674 22,370 26,773 17,157 15,473 14,462 16,355 19,868 Fire: Fires reported ** ** ** ** ** ** ** 31 82 37 Emergency responses (exclude fires) ** ** ** ** ** ** ** 839 1,093 1,080 Number of calls answered 962 737 886 680 870 804 795 870 1,175 1,117 Transportation: Collier Area Transit ridership 722,918 662,396 649,391 723,423 913,569 944,931 996,687 1,082,519 1,177,029 1,181,530 Street resurfacing (lane miles) 57 93 42 34 43 40 38 34 34 80 Culture and recreation: Beach parking stickers issued 142,338 150,078 144,254 131,645 146,500 143,500 149,490 139,828 134,051 181,878 Library circulation 2,083,700 2,063,261 2,554,082 2,080,277 2,471,878 2,253,555 2,193,351 2,349,418 2,302,017 2,578,588 Water: New connections 1,695 2,368 2,864 2,031 2,297 2,776 1,951 2,023 2,204 1,878 Wastewater: Average daily sewage treatment 23,586 22,220 21,603 21,015 20,426 18,030 18,555 17,866 17,231 16,200 (millions of gallons) ** Due to the consolidation of Fire Districts, this information is no longer being tracked. Sources: Police -Collier County Sheriffs Department Fire -Collier County Bureau of Emergency Services, Greater Naples Fire District Transportation -Collier County Alternative Transportation and Road and Bridge Departments Culture and Recreation -Collier County Parks and Recreation and Public Library Departments Water -Collier County Utility Billing Department Wastewater -Collier County Wastewater Department 179 COLLIER COUNTY, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Function: Public Safety: Police stations 7 7 7 7 7 7 7 7 7 7 Patrol units 267 268 273 273 272 272 270 274 276 276 Fire: Fire stations 4 4 4 4 4 4 4 4 4 4 Highways and streets: Streets* (miles) 1,170 1,170 1,167 1,172 1,169 1,166 1,161 1,159 1,149 1,151 Streetlights 5,511 5,412 5,378 5,364 4,635 5,083 5,074 5,182 4,958 4,958 Traffic signals 407 382 381 377 377 377 374 365 360 370 Culture and recreation: Parks acreage 1,524 1,524 1,561 1,560 1,521 1,521 1,521 1,521 1,521 1,521 Parks 67 67 66 66 61 61 61 61 61 61 Swimming pools 17 11 9 9 9 9 8 8 8 8 Tennis courts 32 42 40 40 45 45 45 45 45 45 Community centers 10 10 9 9 9 9 9 9 9 8 Libraries 10 10 10 10 10 10 10 10 10 10 Number of volumes in libraries 722,042 699,760 653,726 659,112 663,811 593,378 557,188 567,248 605,408 683,237 Water: Number of customers 84,452 82,790 81,339 75,837 73,854 71,614 66,010 61,830 59,443 57,548 Water mains (miles) 1,207 1,205 1,191 1,166 1,149 1,132 1,067 1,015 986 925 Maximum daily capacity (per million gallons) 36,373 34,811 32,726 33,658 32,113 30,956 32,243 33,877 31,376 30,460 Wastewater: Sanitary sewers (miles) 1,246 1,212 1,201 1,186 1,181 1,156 1,085 1,021 1,028 1,030 Primary and secondary drainage facilities 330 330 325 325 322 312 289 294 306 306 Sources: Police -Collier County Sheriffs Department Fire -Collier County Bureau of Emergency Services Department Highway and Streets -Collier County Traffic Operations, Transportation Engineering and Road and Bridge Departments Culture and Recreation -Collier County Parks and Recreation and Public Library Departments Water -Collier County Water and Utility Billing Departments Wastewater -Collier County Stormwater and Wastewater Departments 180 VAMOtHOPEE _ F L . ..r �O er aunty CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (the County), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated March 25, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 183 Honorable Board of County Commissioners Collier County, Florida Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 25, 2024 184 0 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project Qualified and Unmodified Opinions We have audited Collier County, Florida's (the County) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement and the requirements described in the State of Florida Department of Financial Services' State Projects Compliance Supplement that could have a direct and material effect on each of the County's major federal programs and state projects for the year ended September 30, 2023. The County's major federal programs and state projects are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Qualified Opinions on Highway Planning and Construction and National Infrastructure Investments In our opinion, except for the noncompliance described in the Basis for Qualified and Unmodified Opinions section of our report, the County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on Highway Planning and Construction and National Infrastructure Investments for the year ended September 30, 2023. Unmodified Opinion on Each of the Other Major Federal Programs In our opinion, the County 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 other major federal programs and state projects identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs for the year ended September 30, 2023. Basis for Qualified and Unmodified Opinions We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General Local Governmental Entity Audits (Chapter 10.550). Our responsibilities under those standards and the Uniform Guidance and Chapter 10.550 are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 185 Honorable Board of County Commissioners Collier County, Florida We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program and state project. Our audit does not provide a legal determination of the County's compliance with the compliance requirements referred to above. Matter Giving Rise to Qualified Opinion on Highway Planning and Construction and National Infrastructure Investments As described in the accompanying schedule of findings and questioned costs, the County did not comply with requirements regarding Assistance Listing No. 20.205 Highway Planning and Construction as described in finding number 2023-001 for Equipment and Real Property Management and Assistance Listing No. 20.933 National Infrastructure Investments in finding 2023-002 for Special Tests and Provisions — Wage Rate Requirements. Compliance with such requirements is necessary, in our opinion, for the County to comply with the requirements applicable to that program. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the County's federal programs and state projects. Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the County's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance and Chapter 10.550 will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the County's compliance with the requirements of each major federal program or state project as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, and Chapter 10.550, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the County's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. 186 Honorable Board of County Commissioners Collier County, Florida • Obtain an understanding of the County's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters The results of our auditing procedures disclosed other instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and Chapter 10.550 and which are described in the accompanying schedule of findings and questioned costs as item 2023-003. Our opinion on each major federal program and state project is not modified with respect to these matters. Government Auditing Standards require the auditor to perform limited procedures on the County's response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The County's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control Over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2023-001 and 2023-002 to be material weaknesses. 187 Honorable Board of County Commissioners Collier County, Florida A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2023-003 to be a significant deficiency. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Government Auditing Standards requires the auditor to perform limited procedures on the County's response to internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The County's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 25, 2024 :: COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 FEDERAL AGENCY PASS -THROUGH ENTITY FEDERAL PROGRAM ASSISTANCE LISTING NUMBER GRANT/CONTRACT IDENTIFYING NUMBER EXPENDITURES TRANSFERS TO SUBRECIPIENTS FEDERAL AWARDS U.S. Department of Housing and Urban Development Direct Programs: Assistant Secretary for Community Planning and Development: CDBG - Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants 14.218 B-11-UN-12-0003 $ 126,099 $ - Community Development Block Grants/EntitlementGrants 14.218 B-19-UC-12-0016 139,789 139,789 Community Development Block Grants/Entitlement Grants 14.218 B-20-UC-12-0016 762,927 706,497 COVID-19- Community Development Block Grants/Entitlement Grants 14.218 B-20-UW-12-0016 2,005,437 1,882,034 Community Development Block Grants/Entitlement Grants 14.218 B-21-UC-12-0016 1,397,537 1,210,001 Community Development Block Grants/Entitlement Grants 14.218 B-22-UC-12-0016 594,654 280,325 Total Assistance Listing 5,026,443 4,218,646 Total CDBG - Entitlement Grants Cluster 5,026,443 4,218,646 Emergency Solutions Grant Program 14.231 E-20-UC-12-0016 23,470 10,582 COVID-19 - Emergency Solutions Grant Program 14.231 E-20-UW-12-0016 113,465 72,770 Emergency Solutions Grant Program 14.231 E-21-UC-12-0016 72,423 27,909 Emergency Solutions Grant Program 14.231 E-22-UC-12-0016 112,885 94,336 Emergency Solutions Grant Program 14.231 E-22-UW-12-0016 169,500 - Total Assistance Listing 491,743 205,597 Home Investment Partnerships Program 14.239 M16-UC120217 6,545 6,545 Home Investment Partnerships Program 14.239 M17-UC120217 203,178 - Home Investment Partnerships Program 14.239 M18-UC120217 169,637 50,436 Home Investment Partnerships Program 14.239 M20-UC120217 1,755 1,775 Home Investment Partnerships Program 14.239 M21-UC120217 12,308 3,516 COVID-19 - Home Investment Partnerships Program 14.239 M21-UP120217 15,560 - Home Investment Partnerships Program 14.239 M22-UC120217 59,048 - Total Assistance Listing 468,031 62,272 Total U.S. Department of Housing and Urban Development 5,986,217 4,486,515 U.S. Department of the Interior Direct Programs: Departmental Offices: Payments in Lieu of Taxes 15.226 Collier County 1,611,585 - Total U.S. Department of the Interior 1,611,585 - U.S. Department of Justice Direct Programs: Office of Community Oriented Policing Service: Public Safety Partnership and Community Policing Grants 16.710 202OULWX0029 196,769 - Office of Justice Programs: Treatment Court Discretionary Grant Program 16.585 2020-DC-BX-0138 58,500 50,020 Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-2I-GG-01326-JAGX 71,659 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-22-GG-04994-JAGX 1,102 - Total Assistance Listing 72,761 Pass -Through Programs: Florida Office of the Attorney General: Florida Department of Legal Affairs: Crime Victim Assistance 16.575 VOCA-2022-960 187,500 - Institute for Intergovernmental Research (IIR): Comprehensive Opioid, Stimulant, and other Substances Use Program 16.838 2020-BRIDGES-0063 34,174 30,448 Total U.S. Department of Justice 549,704 80,468 (Continued) See accompanying Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance. 189 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 FEDERAL AGENCY PASS -THROUGH ENTITY FEDERAL PROGRAM ASSISTANCE LISTING NUMBER GRANT/CONTRACT IDENTIFYING NUMBER TRANSFERS TO EXPENDITURES SUBRECIPIENTS FEDERAL AWARDS (Continued) U.S. Department of Transportation Direct Programs: Federal Aviation Administration: Airport Improvement Program, COVID-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0021-006-2021 $ 44,670 $ COVID-19 - Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0031-016-2022 15,641 COVID-19 - Airport Improvement Program, COVID-19 Airports Programs and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0142-015-2022 19,587 Airport Improvement Program, COVID-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs 20.106 3-12-0142-016-2022 153,334 Total Assistance Listing 233,232 Office of the Secretary: National Infrastructure Investments 20.933 693JJ32040007 2,574,315 Federal Transit Administration: Federal Transit Cluster: Federal Transit Formula Grants 20.507 FL-95-XO62-00 1,440 Federal Transit Formula Grants 20.507 FL-95-XO85-00 23,700 Federal Transit Formula Grants 20.507 FL-95-XO86-00 11,660 Federal Transit Formula Grants 20.507 FL-2017-055-00 3,072 Federal Transit Formula Grants 20.507 FL-2018-024-00 665 Federal Transit Formula Grants 20.507 FL-2018-025-00 34,168 Federal Transit Formula Grants 20.507 FL-2019-028-00 221 Federal Transit Formula Grants 20.507 FL-2019-041-00 458,083 COVID-19- Federal Transit Formula Grants 20.507 FL-2020-046-00 586,180 Federal Transit Formula Grants 20.507 FL-2020-091-00 20,010 Federal Transit Formula Grants 20.507 FL-2020-103-00 133,129 Federal Transit Formula Grants 20.507 FL-2020-115-00 25,548 Federal Transit Formula Grants 20.507 FL-2021-032-00 500 Federal Transit Formula Grants 20.507 FL-2022-005-00 194,936 COVID-19 - Federal Transit Formula Grants 20.507 FL-2022-015-00 936,339 Federal Transit Formula Grants 20.507 FL-2023-011-00 1,811,401 Total Assistance Listing 4,241,052 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2017-017-00 2,535 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2018-084-00 54,256 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2019-097-00 8,125 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2020-103-00 333,904 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2021-033-00 1,919,644 Pass -Through Programs: Florida Department of Transportation: Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 G2692 115,421 Total Assistance Listing 2,433,885 Total Federal Transit Cluster 6,674,937 (Continued) 190 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 FEDERAL AGENCY PASS -THROUGH ENTITY FEDERAL PROGRAM ASSISTANCE LISTING NUMBER GRANT/CONTRACT IDENTIFYING NUMBER EXPENDITURES TRANSFERS TO SUBRECIPIENTS FEDERAL AWARDS (Continued) Highway Planning and Construction 20.205 GIM49 $ 37 $ - Highway Planning and Construction 20.205 G1002 141,763 - Highway Planning and Construction 20.205 G2189 834,535 Highway Planning and Construction 20.205 G2759 703,526 - Highway Planning and Construction 20.205 G2821 507,160 Highway Planning and Construction 20.205 G2A77 91 - Highway Planning and Construction 20.205 G2A87 347,550 Highway Planning and Construction 20.205 G21VI06 88 - Highway Planning and Construction 20.205 G2M22 88 Total Assistance Listing 2,534,838 - Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research 20.505 G1J00 5,705 Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research 20.505 G1V40 39,149 Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research 20.505 G2594 34,541 Total Assistance Listing 79,395 - Formula Grants for Rural Areas and Tribal Transit Program 20.509 G1S83 46,310 - Formula Grants for Rural Areas and Tribal Transit Program 20.509 G2690 504,624 Total Assistance Listing 550,934 - Highway Safety Cluster: State and Community Highway Safety 20.600 G2C04 47,005 - State and Community Highway Safety 20.600 G2E45 96,382 Total Assistance Listing 143,387 - Total Highway Safety Cluster 143,387 - Total U.S. Department of Transportation 12,791,038 - U.S. Department of the Treasury Direct Programs: Departmental Offices: COVID-19 - Emergency Rental Assistance Program 21.023 ERA0334 129,612 - COVID-19 - Emergency Rental Assistance Program 21.023 ERAE0037 2,946,269 120,010 Total Assistance Listing 3,075,881 120,010 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 SLFRP3243 23,460,162 2,444,854 COVID-19 - Local Assistance and Tribal Consistency Fund 21.032 LATCFC00202 21,934 - Total U.S. Department of the Treasury 26,557,977 2,564,864 Gulf Coast Ecosystem Restoration Council Pass -Through Programs: The Gulf Consortium: Gulf Coast Ecosystem Restoration Council Oil Spill Impact Program 87.052 200097221.01 65,828 Total Gulf Coast Ecosystem Restoration Council 65,828 Election Assistance Commission Pass -Through Programs: Florida Department of State and Secretary of State: Division of Elections: HAVA Election Security Grants 90.404 23.e.es.100.011 118,610 Total Election Assistance Commission 118,610 U.S. Department of Health and Human Services Pass -Through Programs: Florida Department of Elder Affairs: Area Agency on Aging for Southwest Florida, Inc.: Aging Cluster: COVID-19 - Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 ARPA 203.22 105,972 - (Continued) 191 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 FEDERALAGENCY PASS -THROUGH ENTITY FEDERAL PROGRAM ASSISTANCE LISTING NUMBER GRANT/CONTRACT IDENTIFYING NUMBER EXPENDITURES TRANSFERS TO SUBRECIPIENTS FEDERAL AWARDS (Continued) Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 OAA 203.22 $ 69,378 $ - Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 OAA 203.23 181,814 - Total Assistance Listing 357,164 Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.22 226,198 Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.23 658,940 - Total Assistance Listing 885,138 Nutrition Services Incentive Program 93.053 OAA 203.22 5,786 Nutrition Services Incentive Program 93.053 OAA 203.23 40,299 - Total Assistance Listing 46,085 Total Aging Cluster 1,288,387 National Family Caregiver Support, Title III, Part E 93.052 OAA 203.22 43,110 National Family Caregiver Support, Title III, Part E 93.052 OAA 203.23 78,188 - Total Assistance Listing 121,298 - Low -Income Home Energy Assistance 93.568 EHEAP 203.21 39,868 COVID-19 - Low -Income Home Energy Assistance 93.568 EHEAP ARPA 203.22 63,812 - Total Assistance Listing 103,680 Florida Department of Revenue: Child Support Services 93.563 COC11 100,766 - Child Support Services 93.563 Collier County FFY 2020 2,913 Child Support Services 93.563 Collier County FFY 2021 3,047 - Total Assistance Listing 106,726 Florida Developmental Disabilities Council, Inc.: Developmental Disabilities Basic Support and Advocacy Grants 93.630 1045TRP20 13,978 - Total U.S. Department of Health and Human Services 1,634,069 - Corporation for National and Community Service Direct Programs: AmeriCorps Seniors Retired and Senior Volunteer Program (RSVP) 94.002 94.002 21SRHFLO16 84,624 Total Corporation for National and Community Service 84,624 - U.S. Executive Office of the President Direct Programs: High Intensity Drug Trafficking Areas Program 95.001 G20MI0015A 30,963 - High Intensity Drug Trafficking Areas Program 95.001 G21MI0015A 29,472 High Intensity Drug Trafficking Areas Program 95.001 G22MI0015A 85,746 - Total U.S. Executive Office of the President 146,181 - U.S. Department of Homeland Security Pass -Through Programs: Executive Office of the Governor: Florida Division of Emergency Management: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Z0001 75,075 - Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Z2967 23,791,985 - Total Assistance Listing 23,867,060 Emergency Management Performance Grants 97.042 G0380 93,964 Fire Management Assistance Grant 97.046 D0056 11,689 Homeland Security Grant Program 97.067 R0417 21,073 Total U.S. Department of Homeland Security 23,993,786 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 73,539,619 $ 7,131,847 (Continued) 192 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 STATE AGENCY GRANT/CONTRACT PASS -THROUGH ENTITY CSFA IDENTIFYING TRANSFERS TO STATE PROJECT NUMBER NUMBER EXPENDITURES SUBRECIPIENTS STATE FINANCIAL ASSISTANCE Florida Executive Office of the Governor Direct Projects: Florida Division of Emergency Management Emergency Management Programs 31.063 A0246 $ 101,323 $ Total Florida Executive Office of the Governor 101,323 Florida Department of Environmental Protection Direct Projects: Beach Management Funding Assistance Program 37.003 20001 243,487 Beach Management Funding Assistance Program 37.003 21COl 6,848 _ Total CSFA 250,335 Statewide Water Quality Restoration Projects 37.039 LPA0008 30,772 Statewide Water Quality Restoration Projects 37.039 LPA0154 138,292 _ TotaICSFA 169,064 Innovative Technologies 37.103 RT015 104,678 Total Florida Department of Environmental Protection 524,077 Florida Housing Finance Corporation Direct Projects: State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2019-2020 65,115 State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2020-2021 80,178 State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2021-2022 783,112 State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2022-2023 232,891 State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2022-2023 DR 50,461 State Housing Initiatives Partnership Program (SHIP) 40.901 Collier County FY 2022-2023 HHRP 108,734 Total Florida Housing Finance Corporation 1,320,491 Florida Department of State and Secretary of State Direct Projects: State Aid to Libraries 45.030 18-ST-08 614 State Aid to Libraries 45.030 20-ST-08 1,225 State Aid to Libraries 45.030 21-ST-08 139,193 Total Florida Department of State and Secretary of State 141,032 Florida Department of Transportation Direct Projects: Florida Highway Beautification Grant Program 55.003 G2178 100,000 Florida Highway Beautification Grant Program 55.003 G2179 100,000 Florida Highway Beautification Grant Program 55.003 G2180 100,000 Florida Highway Beautification Grant Program 55.003 G2181 100,000 _ Total CSFA 400,000 Aviation Grant Programs 55.004 GOZ16 102,027 Aviation Grant Programs 55.004 G2J23 3,531 _ Total CSFA 105,558 County Incentive Grant Program (CIGP) 55.008 G1S82 198,824 Public Transit Block Grant Program 55.010 G21`05 1,156,410 Transit Corridor Development Program 55.013 G21.71 124,416 Local Transportation Projects 55.039 G1A39 31,860 Pass -Through Projects: Florida Commission for the Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G2A00 595,554 Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G21(36 186,108 _ Total CSFA 781,662 (Continued) 193 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 STATE AGENCY PASS -THROUGH ENTITY STATE PROJECT STATE FINANCIAL ASSISTANCE (Continued) Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program Total CSFA Total Florida Department of Transportation Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program Total Florida Department of Children and Families Florida Department of Health Direct Projects: County Grant Awards Total Florida Department of Health Florida Department of Elder Affairs Pass -Through Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly Home Care for the Elderly TotaICSFA Alzheimer's Respite Services Alzheimer's Respite Services TotalCSFA Community Care for the Elderly Community Care for the Elderly TotaICSFA Total Florida Department of Elder Affairs Florida Department of Law Enforcement Direct Projects: Multi -County Forensic Genetic Genealogy Testing (Collier, Orange, Hillsborough, Palm Beach) Total Florida Department of Law Enforcement Florida Department of Management Services Direct Projects: Florida Emergency Communications Board: Prepaid Next Generation 911 (NG911) State Grant Program Total Florida Department of Management Services TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE GRANT/CONTRACT CSFA IDENTIFYING TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS 55.002 G2926 $ 22,643 $ 55.002 G2178 4,390 27,033 2,825,763 60.115 LH823 205,595 177,053 205,595 177,053 64.005 C1011 239 239 65.001 HCE 203.22 8,940 65.001 HCE 203.23 6,081 15,021 65.004 ADI203.22 539,941 65.004 ADI 203.23 138,307 678,248 65.010 CCE 203.22 699,908 65.010 CCE 203.23 181,018 880,926 1,574,195 71.104 L8026 25,797 - 25,797 72.003 S20-22-02-03 64,172 - 64,172 - $ 6,782,684 $ 177,053 194 COLLIER COUNTY, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 2023 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the Schedule) includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on the modified accrual basis of accounting for expenditures accounted for in the governmental funds and the accrual basis of accounting for expenditures in proprietary funds. Under the modified accrual basis, revenue is recognized if it is both measurable and available for use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if measurable. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Section 215.97, Florida Statutes. Therefore, some amounts presented in the Schedule may differ from amounts presented, or used in the preparation of, the basic financial statements for the fiscal year ended September 30, 2023. 2. Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the County. 3. Indirect Cost Rate The County has not elected to use the 10 percent de minimus cost rate allowed under the Uniform Guidance. 4. Disaster Grants - Public Assistance (Presidentially Declared Disasters) (97.036) After a presidentially declared disaster, FEMA provides Disaster Grants — Public Assistance (Presidentially Declared Disasters) (Assistance Listing 97.036) to reimburse eligible costs associated with debris removal, emergency protective measures and the repair, restoration, reconstruction or replacement of public facilities or infrastructure damaged or destroyed. Reimbursements are provided in the form of cost -shared grants. Hurricane Irma (FEMA-4337-DR) made landfall in Collier County on September 10, 2017. All the $75,075 reported on the Schedule for grant Z0001 was incurred in fiscal years 2018 through 2022. Hurricane Ian (FEMA-4673-DR) made landfall in Collier County on September 28, 2022. All the $23,791,985 reported on the Schedule for grant Z2967 was incurred in fiscal year 2023. 195 COLLIER COUNTY, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 2023 S. Local Assistance and Tribal Consistency Fund (21.032) The Department of Treasury awarded the County $1,790,192 from the Local Assistance and Tribal Consistency Fund (LATCF). The two tranches were received in 2023 and of that amount only $21,934 was expended in 2023. The balance of the revenue is restricted in the fund until the County incurs additional expenditures. Year Ending September 30 Amount 2023 LATCF Revenue 2023 LATCF Expenditures Total $ 1,790,192 (21,934) S 1,768 258 196 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2023 SECTION I - SUMMARY OF AUDITORS' RESULTS Financial Statements Type of auditors' report issued? Unmodified Internal control over financial reporting: • Material weakness(es) identified? No • Significant deficiency(s) identified that are not considered to be material weaknesses? None reported Noncompliance material to the financial statements noted? No Federal Awards Section Internal control over major programs: • Material weakness(s) identified? Yes • Significant deficiency(s) identified that are not considered to be material weaknesses? Yes Type of auditors' report issued on compliance for major programs? See below Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes Identification of major programs: AL Numbers Name of Federal Program or Cluster Opinion 14.218 CDBG — Entitlement Grants Cluster Unmodified 20.205 Highway Planning and Construction Qualified 20.933 National Infrastructure Investments Qualified 21.023 COVID-19 — Emergency Rental Assistance Program Unmodified COVID-19 — Coronavirus State and Local Fiscal Recovery 21.027 Funds Unmodified Disaster Grants — Public Assistance (Presidentially 97.036 Declared Disasters) Unmodified Dollar threshold used to distinguish between type A and type B programs: $2,206,189 Auditee qualified as low -risk auditee? Yes 197 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 SECTION I - SUMMARY OF AUDITORS' RESULTS (CONTINUED) State Financial Assistance Section Internal control over major projects: Material weakness(s) identified? No Significant deficiency(s) identified that are not considered to be material weaknesses? None reported Type of auditors' report issued on compliance for major projects? Unmodified Any audit findings disclosed that are required to be reported in accordance with Chapter 10.557? No Identification of major State projects: State CSFA Name of State Program or Cluster 37.003 Beach Management Funding Assistance Program 40.901 State Housing Initiatives Partnership Program (SHIP) 55.001 Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.010 Public Transit Block Grant Program Dollar threshold used to distinguish between type A State projects $750,000 SECTION 11- FINANCIAL STATEMENT FINDINGS Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. W. COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 SECTION III - FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL PROGRAMS 2023 — 001 Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) The non -Federal entity must (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non -Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County's equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment's location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No 199 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 SECTION III - FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL PROGRAMS Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan. 2023 — 002 Federal Agency: U.S. Department of the Transportation Federal Program Name: National Infrastructure Investments Assistance Listing Number: 20.933 Federal Award Identification Number and Year: 693JJ32040007 - 2020 Award Period: 08/03/2020 — 10/31/2024 Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under Davis -Bacon Act - 40 U.S.C. §§ 3141, et seq., as applicable under 23 U.S.C. 113, prevailing wage requirements each contractor must submit weekly certified payrolls to the contracting agency or entity certified payrolls providing information for each covered worker. Each certified payroll must be accompanied by a "Statement of Compliance" certifying compliance with applicable requirements. Per 2 CFR Section 200.303(a) the non -Federal entity must (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non -Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County did not obtain, maintain, or review certified payrolls as required for special provisions Davis Bacon Act for all vendors. Questioned costs: None Context: For two out of the eight payrolls selected for testing, the County did not properly obtain and review certified payrolls provided by subcontractor. The certifications were subsequently collected and reviewed when they were selected for audit testing. Cause: The County did not follow its policies, procedures and internal controls related to obtaining and reviewing certified payrolls from vendors. 00 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 SECTION III - FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL PROGRAMS Effect: The County was not in compliance with the special provision compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County to implement a process and to update its policies and procedures to ensure that all certified payrolls are properly verified and maintained accurately through grant award period and beyond. Views of responsible officials: Management agrees with the finding. See corrective action plan. 2023 — 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: CDBG — Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Under reporting for Federal Funding Accountability and Transparency Act (FFATA) requires awardees such as prime contractors and subcontractors to file a FFATA subaward report by the end of the month following the month in which the prime contractor awards or prime grant recipient is awarded any subcontract or grant greater than $30,000. Per 2 CFR Section 200.303(a) the non -Federal entity must (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non -Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County did submit FFATA reports after grant award or grant award modifications were made by the dates required. Questioned costs: None Context: For three out of the five FFATA reports selected for testing, the County submitted reports after the due date. Cause: The County's internal controls did not prevent or detect the noncompliance. Effect: The County was not in compliance with the reporting compliance requirements of the program 201 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 SECTION 111 - FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL PROGRAMS (CONTINUED) Repeat Finding: No Recommendation: We recommend the County strengthen policies and procedures to ensure that reporting due dates are adhered to as required by the Federal regulations and that internal processes mirror the requirements of the Federal regulations. Views of responsible officials: Management agrees with the finding. See corrective action plan. SECTION IV - FINDINGS AND QUESTIONED COSTS — MAJOR STATE PROJECTS Our audit did not disclose any matters required to be reported in accordance with Rule 10.554(1)(1)4, Rules of the Florida Auditor General. 202 Office of the County Manager Amy Patterson 3299 Tamiami Trail East, Suite 202 • Naples Florida 34112-5746 • (239) 252-8383 COUNTY, FLORIDA COLLIER CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2023 U.S. Department of Transportation Collier County respectfully submits the following corrective action plan for the year ended September 30, 2023. Audit period: October 1, 2022 — September 30, 2023 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS —FEDERAL AWARD PROGRAMS AUDITS U.S. DEPARTMENT OF TRANSPORTATION 2023-001 Highway Planning and Construction —Assistance Listing No. 20.205 Recommendation: Expand capital asset inventory policies and procedures to ensure equipment purchased with Federal funds include all required information, is accurate, updated and certified for accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Transportation Management Services staff will perform an initial review to be maintained annually thereafter of equipment inventory purchased with federal funds to ensure all required information by Federal rule is accurate and up to date. The County will expand its policies and procedures over equipment inventory records funded by Federal funds including the Grant Administration Handbook. The County will engage its Consultant to incorporate additional fields in its existing asset management module within the electronic financial system. A separate communication regarding grant -funded inventory will be created and distributed to staff for review and certification. Name(s) of the contact person(s) responsible for corrective action: Trinity Scott, Transportation Management Services Department Head, 239-252-5873; Therese Stanley, Grants Compliance Manager, 239-252-2959. Planned completion date for corrective action plan: September 30, 2024 203 COUNTY, FLORIDA COLLIER CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2023 U.S. DEPARTMENT OF TRANSPORTATION 2023-002 National Infrastructure Investments — Assistance Listing No. 20.933 Recommendation: Implement a process and to update its policies and procedures to ensure that all certified payrolls are properly verified and maintained accurately through the grant award period and beyond. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Staff will conduct a documented compliance review no less than monthly comparing the certified payroll tracker against supporting documentation including the payrolls collected by the third -party administrator (TPA). Any discrepancies will be conveyed to the TPA and Contractor and monitored until resolved. The Grants Administration Handbook will be updated for procedures for verification of certified payrolls. Name(s) of the contact person(s) responsible for corrective action: Trinity Scott, Transportation Management Services Department Head, 239-252-5873. Planned completion date for corrective action plan: May 30, 2024 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2023-003 CDBG — Entitlement Grants Cluster — Assistance Listing No. 14.CDBG Recommendation: Strengthen policies and procedures to ensure that reporting due dates are determined by the Federal regulations and that internal processes mirror the requirements of the Federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Staff will submit revised FY 2023 reports as applicable update procedures to ensure report deadlines are based on the subaward execution date and update internal controls to ensure deadlines are met per the Federal regulations. Name(s) of the contact person(s) responsible for corrective action: Therese Stanley, Grants Compliance Manager, 239-252-2959 Planned completion date for corrective action plan: May 30, 2024 If the U.S. Department of Transportation has questions regarding this plan, please call Therese Stanley at 239-252-2959. 204 CliftonLarsonAllen LLP . CLAconnect.com MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the financial statements of Collier County, Florida, (the County) as of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated March 25, 2024. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors' Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated March 25, 2024, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations made in the preceding financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information is included in the notes to the basic financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 205 Honorable Board of County Commissioners Collier County, Florida Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the County met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the County. It is management's responsibility to monitor the County's financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Specific Information (For a dependent special district or an independent special district, or a local government entity that includes the information of a dependent special district) As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Airport Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 18. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 17. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $2,088,958. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $216,839. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $15,458,274. r1. Honorable Board of County Commissioners Collier County, Florida As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Community Redevelopment Agency reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 5. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 2. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $733,573. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $53,089. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $17,735,921. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Educational Facilities Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $6,000. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $-0-. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Health Facilities Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. 207 Honorable Board of County Commissioners Collier County, Florida c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $6,000. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $-0-. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Housing Finance Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $10,000. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $-0-. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Industrial Development Authority reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $7,500. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. r1: Honorable Board of County Commissioners Collier County, Florida f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $-0-. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Metropolitan Organization reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 5. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 0. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $375,336. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $-0-. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $2,614,982. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Water -Sewer District reported: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 433. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year as 18. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $53,377,04. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $473,086. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: See Appendix A. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $679,233,689. rl• Honorable Board of County Commissioners Collier County, Florida Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such finding. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 25, 2024 210 Appendix A Listing of Special District Construction Projects September 30, 2023 Affiliated Entity Name of Project Total Expenditures 300542 - Collier County Water -Sewer District Naples Park Area Basin $ 844,131 300542 - Collier County Water -Sewer District New NCWRF Headworks 1,258,150 300542 - Collier County Water -Sewer District Golden Gate City Compliance Assurance 609,582 300542 - Collier County Water -Sewer District Collections Operating TSP 332,649 300542 - Collier County Water -Sewer District Golden Gate City WWTP Expansion 666,747 300542 - Collier County Water -Sewer District GGC Transmission Water Main Improvments 1,161,769 300542 - Collier County Water -Sewer District Palm River Public Utility 4,142,995 300542 - Collier County Water -Sewer District Goodland PS Improvement 319,237 300542 - Collier County Water -Sewer District NCWRF Electrical Service Upgrade 185,030 300542 - Collier County Water -Sewer District Fac Infrastructure Maint Wastewater 106,295 $ 9,626,587 CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida's (the County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.173(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2023. Management of the County is responsible for the County's compliance with the specified requirements. Our responsibility is to express an opinion on the County's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the County's compliance with specified requirements. In our opinion, the County complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.173(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2023. This report is intended solely for the information and use of the County and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 25, 2024 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 212 ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal year ended September 30, 2023. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios �O er aunty TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2023 Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes $ 518,876,536 Governmental Impact Fees 47,262,219 Half Cent Sales Tax 68,746,452 Developmental Fees 29,204,124 State Revenue Sharing 18,830,744 5th Cent Local Option Gas Tax 6,926,110 6th Cent Local Option Gas Tax 9,287,979 Constitutional Gas Tax 4,985,600 Seventh Cent Gas Tax 2,050,570 Ninth Cent Gas Tax 1,938,377 Parks and Recreation Fees 6,981,049 Tourist Development Tax 44,107,953 Court Facilities Fee 958,050 Communications Services Tax 4,079,743 Total bondable revenues $ 764,235,506 Fiscal 2023 governmental debt service requirements: Series 2012 Gas Tax Refunding Bonds Principal: $ 3,760,000 Interest: 112,800 Series 2014 Gas Tax Refunding Bond Principal: 8,455,000 Interest: 933,026 Series 2017 Special Obligation Refunding Note Principal: 2,665,000 Interest: 1,174,015 Series 2019 Taxable Special Obligation Note Principal: 2,180,000 Interest: 738,978 Series 2020A Special Obligation Bonds Principal: 195,000 Interest: 3,133,875 Series 2020B Taxable Special Obligation Bonds Principal: 2,540,000 Interest: 410,600 Series 2022A Special Obligation Refunding Note Principal: 8,425,000 Interest: 429,113 Series 2022E Special Obligation Refunding Note Principal: 880,000 Interest: 1,020,840 Series 2018 Tourist Development Tax Bonds Principal: 1,135,000 Interest: 2,582,625 Commercial Paper Program Principal: - Interest: 107,489 Total fiscal 2023 governmental debt service requirements $ 40,878,361 Governmental debt ratio of fiscal year 2023 debt service requirements to total bondable revenues (13.0% maximum allowed by County policy) 5.3% Notes: Debt service is based upon current amortization tables forth e fiscal year indicated. Debt prepayments, if any, are not included as debt service requirements TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2023 Collier County Water and Sewer District: Total Sales Revenues $ 190,684,401 Miscellaneous Revenues 1,926,434 Total Operating Revenues 192,610,835 Non -Operating Revenues 16,836,247 Gross Revenues 209,447,082 Less: Operation and Maintenance Expense (excluding Depreciation and Amortization) 125,794,719 Net Revenues Available for Debt Service (1) $ 83,652,363 Total Fiscal Year 2023 Debt Service on Bonds (2) $ 16,460,530 Net Revenues Debt Service Coverage on Bonded Debt (100% Required) - (1/2) 508% Other Pledged Funds: System Development Fees (Impact Fees) $ 17,586,817 Total Pledged Funds Available for Debt Service (3) $ 101,239,180 Total Fiscal Year 2023 Debt Service on Bonds (4) $ 16,460,530 Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) - (3/4) 615% Total Pledged Funds Available for Debt Service After Payment of Bonds (5) $ 84,778,650 Total Fiscal Year 2023 Debt Service on Subordinated Indebtedness (6) $ 8,798,047 Calculated Coverage on Subordinated Indebtedness - (5/6) 964% Total Pledged Funds Available for System Purposes $ 75,980,603 Notes: Coverage calculations utilitize definitions of Gross Revenues, Net Revenues, System Development Fees and Pledged Funds established in Resolution CWS 85-5, as Amended and Restated. `a Summary Debt Statement for Fiscal Year 2023 General Governmental Debt: While the Florida State Constitution and the Florida Statutes set no legal debt limit at the local level, prudent fiscal management requires a self-imposed level of restraint. Collier County's Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this threshold. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County's Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged for the payment of debt service pursuant to voter referendum. The governmental debt ratio decreased by .5% for the fiscal year ended September 30, 2023, to 5.3% (see Table 1), or less than half of the allowable ratio. This decrease is mainly reflective of increases in ad valorem tax and half cent sales tax collections. These revenue increases were accompanied by a .7% decrease in debt service. Overall, governmental revenues increased by 8.5% over fiscal year 2022. Again, this increase was largely the result of a 15.8% increase in FY-2023 ad valorem collections and a 6.0% increase in FY-2023 half cent sales tax collections. Aggressive debt restructuring over the last ten years, coupled with the growth of general governmental revenues, produced several consecutive years of decreases in the general governmental debt ratio. The trend in the governmental debt ratio is shown in the table below: Comparison of Governmental Debt Ratio to Maximum Allowable Governmental Debt Ratio Collier County, Florida (FY16 - FY23) 14.00% 12.00% 10.00% 13.0% 8.00% 7.0% 0 6.5% 6.5/ 6.0% 6.0% 6.0% 5.g% 6.00% 5.3% 4.00% 2.00% 0.00% FY-2016 FY-2017 FY-2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio i1 Summary of Existing and Newly Issued General Government Debt Existing General Government Debt The following table lists outstanding General Governmental Debt as of September 30, 2023: Issue Amount Interest Rates Final Purpose Maturity Series 2017 Special $35,329,000 3.09% July 1, 2034 Advance refund a portion of the Obligation Refunding Series 2010 Special Obligation Revenue Note (Direct Revenue Bonds. Placement Loan) Series 2019 Special $25,880,000 2.74% October 1, Fund the purchase of the Golden Obligation Revenue Note 2029 Gate Golf Course. (Taxable Direct Placement Loan) Series 2020A Special $74,740,000 4.00% - 5.00% October 1, Fund stormwater and parks Obligation Revenue Bonds 2045 capital improvements and refinance sports complex land purchase. Series 2020B Special $19,260,000 2.00% October 1, Fund the purchase of the HHH Obligation Revenue Bonds 2029 Ranch and the Camp Keais (Taxable) property. Series 2022A Special $24,440,000 1.43% October 1, Refund all outstanding Series Obligation Refunding 2029 2011 Special Obligation Revenue Note (Direct Refunding Revenue Bonds. Placement Loan) Series 2022B Special $74,680,000 1.85% October 1, Refund all outstanding Series Obligation Refunding 2035 2013 Special Obligation Revenue Note (Direct Refunding Revenue Bonds. Placement Loan) Series 2014 Gas Tax $26,230,000 2.33% June 1, 2025 Advance refund a portion of the Refunding Revenue Bond Series 2005 Gas Tax Revenue (Direct Placement Loan) Bonds. Series 2018 Tourist $58,570,000 4.00% - 5.00% October 1, Fund the construction and Development Tax Revenue 2048 equipping of a regional Bonds tournament caliber amateur sports complex. Commercial Paper Loan — $2,500,000 3.56% - 4.70% June 1, 2027 Construct sidewalk Florida Local Government improvements in the Pelican Bay Finance Commission (Variable Rate) Services District. Total $341,629,000 New General Government Debt On October 6, 2022, Collier County issued a $1,500,000 commercial paper loan through the Florida Local Government Finance Commission's Pooled Commercial Paper Program. The loan was issued for purposes of sidewalk improvements in the Pelican Bay Services District. The loan bears monthly variable interest and is collateralized by all legally available non -ad valorem revenues as defined in the loan agreement. Collier County Governmental Bonded Debt Ratings Table: Current Ratings (as of 1/23/2024) Fitch Moody's Standard & Poor's Gas Tax Revenue Refunding Bond* - - - Special Obligation Bonds** - Aaa AAA Tourist Development Tax Bonds*** AA+ Aa3 - * The Series 2014 Gas Tax Refunding Revenue Bond (Direct Placement Loan) does not carry a rating. ** Fitch does not currently rate the Special Obligation Bonds. *** Standard & Poor's does not currently rate the Tourist Development Tax Bonds. A rating of AA by Fitch Ratings denotes the expectations of very low default risk and indicates very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. Fitch also uses intermediate +/- modifiers for each AA category. Fitch also maintains an Issuer Default Rating of AAA for Collier County which indicates the lowest expectation of default risk and exceptionally strong capacity for payment of financial commitments. A Moody's Investors Service rating of Aaa is indicative of an investment grade instrument of the highest quality, with minimum credit risk. A Moody's Investors Service rating of Aa is indicative of a high -quality investment grade instrument with very low credit risk. Moody's uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa range. Moody's also maintains an Issuer Rating of Aaa for Collier County which indicates excellent overall credit worthiness. An obligation rated AAA has the highest rating assigned by Standard and Poor's Global Ratings. The obligor's capacity to meet its financial commitments on the obligation is extremely strong. Standard and Poor's also maintains an Issuer Credit Rating of AAA for Collier County which indicates excellent overall credit worthiness. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District's debt are set by bond covenants. Net revenues, defined as operating revenues plus specific non -operating revenues less operating expenses, excluding depreciation, must cover senior lien bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover senior lien bonded debt service at 125%. Net revenue coverage on senior lien bonded debt was 508% and total pledged funds coverage on senior lien bonded debt was 615% for FY-2023, up from 235% and 334%, respectively, for FY-2022 (see Table 2). Bonded debt coverages for FY-2023 increased primarily due to increases in non -operating revenues and a decrease in the amount of senior lien debt service paid in FY-2023. Non -operating revenues increased due to increased interest income and the recognition of unrealized gains related to investments when compared to FY-2022. The Federal Reserve's rate hikes during FY-2022 had a negative impact upon the District's portfolio valuation and a significant portion of the unrealized loss related to FY-2022 was recovered in FY- 2023. Senior lien debt service decreased for FY-2023 due to the final maturity of the Series 2015 Water and Sewer Refunding Revenue Bond. The District's calculated coverage on subordinated debt, all in the form of a bank loan with Synovus Bank, also increased from 531 % to 964% (see Table 2). The total pledged funds coverage required by the subordinated loan agreement is equivalent to 115% of total subordinated debt service in each fiscal year, after payment of bonded senior lien debt service. User rates for potable water, wastewater and irrigation water, as well as miscellaneous revenues, offset system operating, maintenance, debt service and capital costs. Effective July 1, of 2023, the District Board adopted a 7.07% mid -year increase to the existing water, wastewater and irrigation quality rates in response to inflationary increases that were impacting District operations. In December of 2023, the following rate increases were adopted by the District Board: Rate Type Effective January 1, 2024 Effective October 1, 2024 Effective October 1, 2025 Water User 9.0% 4.5% 4.5% Wastewater User 9.5% 7.5% 7.5% Irrigation Quality User 9.5% 9.5% 9.5% The District's focus remains the optimization of resources, risk -based prioritization of capital projects and infrastructure expansion in Golden Gate City and the northeast service area to serve future residents and businesses. Summary of Existing and Newly Issued Enterprise Debt Existing Entelprise Debt The following table lists outstanding Enterprise Debt as of September 30, 2023: Issue Amount Interest Rates Final Maturity Purpose Series 2016 Water and Sewer $34,435,000 1.80% July 1, 2029 Refund all outstanding State Refunding Revenue Note Revolving Fund Loans. (Subordinated) Series 2018 Water and Sewer $21,650,000 2.41% July 1, 2029 Fund the purchase of water and Revenue Bond (Bank Term wastewater facilities within the Loan) Golden Gate Community. Series 2019 Water and Sewer $76,185,000 3.00% - 5.00% July 1, 2039 Fund utility improvements in the Revenue Bonds northeast area of the District. Series 2021 Water and Sewer $124,740,000 4.00% - 5.00% July 1, 2046 Fund utility improvements in Revenue Bonds Golden Gate City and the northeast area of the District. Series 2023 Water and Sewer $49,945,000 4.15% July 1, 2036 Refund all outstanding Series Revenue Bond (Bank Term 2016 Water and Sewer Loan) (Taxable) Refunding Revenue Bonds. Total $306,955,000 New Enterprise Debt On January 17, 2023, the Collier County Water and Sewer District (District) issued the Series 2023 Taxable Water and Sewer Refunding Revenue Bond (Bank Term Loan) in the par amount of $49,945,000. This taxable bond was issued for the purpose of refunding all of the District's outstanding County Water and Sewer Refunding Revenue Bonds, Series 2016. The final maturity of the Series 2023 Taxable Water and Sewer Refunding Revenue Bond is July 1, 2036, with an interest rate of 4.15%. The Series 2023 Taxable Water and Sewer Refunding Revenue Bond was issued as a direct placement financing, secured with a lien on parity with all outstanding senior lien Collier County Water and Sewer Revenue Bonds. On July 1, 2026, the Series 2023 Bond is scheduled to be exchanged for a Series 2026 tax exempt bond paying fixed interest at 3.39%. The refunding, assuming an exchange to a tax-exempt Series 2026 Bond, will achieve a net present value savings of 7.31% on the refunded debt and an aggregate debt service savings of $4,395,527. The refunded Series 2016 Collier County Water and Sewer Refunding Revenue Bonds have a redemption date of July 1, 2026. Collier County Enterprise Debt Ratings Table: Current Ratings (as of 1/23/2024) Fitch Moody's Standard & Poor's* Water and Sewer Revenue Bonds AAA Aaa - * Standard & Poor's does not currently rate County Water and Sewer Revenue Bonds. A rating of AAA by Fitch Ratings denotes the lowest expectation of default risk. A rating of AAA is only assigned in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. A Moody's Investors Service rating of Aaa is indicative of an investment grade instrument of the highest quality, with minimum credit risk. �O er aunty Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Staten Supplemental l Year Ended Septem CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Statements and Other Reports Year Ended September 30, 2023 Contents IndependentAuditors' Report .......................................................................................................... I Financial Statements Balance Sheet — Governmental Funds........................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — GovernmentalFunds................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual— General Fund.............................................................................................................6 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Court Services Fund..................................................................................................7 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Other Special Revenue Fund.....................................................................................8 Statement of Fiduciary Net Position — Custodial Funds.............................................................9 Statement of Changes in Fiduciary Net Position — Custodial Funds........................................10 Notes to Financial Statements...................................................................................................I I Supplementary Information Combining Statement of Fiduciary Net Position — All Custodial Funds..................................29 Combining Statement of Changes in Fiduciary Net Position — All Custodial Funds ...............30 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...................................................................31 ManagementLetter....................................................................................................................33 Independent Accountants' Report ..............................................................................................35 CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida, Clerk of the Circuit Court and Comptroller (Clerk), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Clerk as of September 30, 2023, and the respective changes in financial position and the respective budgetary comparisons for the General Fund, Court Services Fund, and Other Special Revenue Fund for the year ended September 30, 2023, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Clerk and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Clerk referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position and changes in financial position of only that portion of each major fund and the aggregate remaining fund information of the Collier County, Florida that is attributable to the transactions of the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2023, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller As discussed in Note 12, effective October 1, 2022, the Clerk adopted GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This standard requires governments to recognize a right -to -use subscription -based information technology arrangement asset and corresponding subscription -based information technology arrangement liability for all arrangements with terms greater than 12 months. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Pa Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Required Supplementary Information Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk's basic financial statements. The combining custodial fund statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining custodial fund statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 26, 2024, on our consideration of the Clerk's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Clerk's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida February 26, 2024 Collier County, Florida Clerk of the Circuit Court and Comptroller Balance Sheet — Governmental Funds Assets Cash and cash equivalents Accounts receivable, net Due from Collier County, Florida Board of County Commissioners Due from other governments Total assets September 30, 2023 Court $ 1,808,291 $ 1,588,971 7,773 11,286 Other Total Special Governmental Revenue Funds $ 6,814,906 $ 10,212,168 - 19,059 12,907 - - 12,907 10,505 17,138 - 27,643 $ 1,839,476 $ 1,617,395 $ 6,814,906 $ 10,271,777 Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities $ 725,474 Due to Collier County, Florida Board of County Commissioners 210,395 Due to other governments - Unearned revenue - Deposits 903,607 Total liabilities 1,839,476 Fund balance: Restricted Total fund balance Total liabilities and fund balance $ 226,979 $ 45,365 $ 997,818 288,240 - 498,635 987,176 - 987,176 115,000 - 115,000 - - 903,607 1,617,395 45,365 3,502,236 6,769,541 6,769,541 - - 6,769,541 6,769,541 $ 1,839,476 $ 1,617,395 $ 6,814,906 $ 10,271,777 See accompanying Notes to Financial Statements. 4 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2023 Revenues: Intergovernmental Charges for services Miscellaneous Interest income Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Subscription -based information technolog} arrangements Transfers in: Collier County, Florida Board of County Commissioners appropriations Operating transfers in Transfers out: Distribution of excess fees to State of Florida Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Operating transfers out Total other financing sources (uses) Net change in fund balance Fund balances — beginning of year Fund balances — end of year Other Total Court Special Governmental General Services Revenue Funds $ - $ 623,719 $ - $ 623,719 3,799,806 7,720,668 1,061,112 12,581,586 8,261 - - 8,261 433,994 141,599 304,282 879,875 4,242,061 8,485,986 1,365,394 14,093,441 12,663,273 7,115,269 480,805 20,259,347 2,689,622 284,906 2,581,858 5,556,386 651,473 - 239,762 891,235 203,581 - 80,626 284,207 12,877 - 1,975 14,852 16,220,826 7,400,175 3,385,026 27,006,027 (11,978,765) 1,085,811 (2,019,632) (12,912,586) 527,123 - 239,762 766,885 12,080,000 - - 12,080,000 420,213 420,213 - (1,506,024) - (1,506,024) (208,145) - - (208,145) (420,213) (420,213 ) 11,978,765 (1,085,811) 239,762 11,132,716 - (1,779,870) (1,779,870) - 8,549,411 8,549,411 $ 6,769,541 $ 6,769,541 See accompanying Notes to Financial Statements. 5 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual General Fund Year Ended September 30, 2023 Revenues: Charges for services Miscellaneous Interest income Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Subscription -based information technology Arrangements Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Operating transfers out Total other financing sources (uses) Net change in fund balance Fund balance — beginning of year Fund balance — end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 4,253,600 $ 4,253,600 $ 3,799,806 $ (453,794) - - 8,261 8,261 31,100 31,100 433,994 402,894 4,284,700 4,284,700 4,242,061 (42,639) 11,724,300 12,685,600 12,663,273 22,327 3,242,400 3,105,900 2,689,622 416,278 58,700 125,700 651,473 (525,773) - - 203,581 (203,581) - - 12,877 (12,877) 15,025,400 15,917,200 16,220,826 (303,626) (10,740,700) (11,632,500) (11,978,765) (346,265) 527,123 527,123 10,740,700 12,080,000 12,080,000 - - (208,145) (208,145) - (447,500) (420,213) 27,287 10,740,700 11,632,500 11,978,765 346,265 See accompanying Notes to Financial Statements. 6 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Court Services Fund Year Ended September 30, 2023 Revenues: Intergovernmental Charges for services Interest income Total revenues Expenditures: General government: Personal services Operating expenditures Total expenditures Excess of revenues over expenditures Other financing uses: Transfers in: Operating transfers in Transfers out: Distribution of excess fees to State of Florida Total other financing uses Net change in fund balance Fund balance — beginning of year Fund balance — end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 482,185 $ 482,185 $ 623,719 $ 141,534 6,534,607 6,534,607 7,720,668 1,186,061 15,000 15,000 141,599 126,599 7,031,792 7,031,792 8,485,986 1,454,194 6,695,056 7,142,556 7,115,269 27,287 336,736 336,736 284,906 51,830 7,031,792 7,479,292 7,400,175 79,117 - (447,500) 1,085,811 1,533,311 447,500 420,213 (27,287) - - (1,506,024) (1,506,024) 447,500 (1,085,811) (1,533,311) $ - $ - $ - $ - See accompanying Notes to Financial Statements. 7 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Other Special Revenue Fund Year Ended September 30, 2023 Revenues: Charges for services Interest income Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Debt service principal Debt service interest Total expenditures Excess of revenues over expenditures Other financing sources (uses): Subscription -based information technology arrangements Total other financing sources (uses) Net change in fund balance Fund balance — beginning of year Fund balance — end of year See accompanying Notes to Financial Statements. Budget Original Final Actual Variance With Final Budget Positive (Negative) $1,810,000 $1,810,000 $19061,112 $ (7489888) 17,200 179200 304,282 2879082 1,827,200 1,827,200 1,365,394 (461,806) 1,283,000 1,283,000 480,805 802,195 2,163,900 4,363,900 2,581,858 1,782,042 1,243,074 188,900 239,762 (50,862) - - 80,626 (80,626) - - 1,975 (1,975) 4,689,974 5,835,800 3,385,026 2,450,774 (2,862,774) (4,008,600) (2,019,632) 1,988,968 - - 239,762 239,762 - - 239,762 239,762 (2,862,774) (4,008,600) (1,779,870) 2,228,730 5,582,622 8,311,106 8,549,411 238,305 $ 2,719,848 $ 4,302,506 $ 6,769,541 $ 2,467,035 n. Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Fiduciary Net Position Custodial Funds September 30, 2023 Assets Cash and cash equivalents $ 24,851,118 Total assets 24,851,118 Liabilities Due to other governments 5,640,054 Total liabilities 5,640,054 Fiduciary Net Position Restricted for: Individuals, organizations, and other governments 19,211,064 Total fiduciary net position 19,211,064 Total liabilities and fiduciary net position $ 24,851,1 18 See accompanying Notes to Financial Statements. 9 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended September 30, 2023 Additions Fees/Fines collected for other governments $ 166,822,144 Registry and other deposits collected 18,216,947 Total additions 185,039,091 Deductions Fees/Fines disbursed to other governments 166,650,883 Registry and other deposits disbursed 17,568,732 Total deductions 184,219,615 Change in fiduciary net position 819,476 Fiduciary net position - beginning of year 18,391,588 Fiduciary net position - end of year $ 19,211,064 See accompanying Notes to Financial Statements. 10 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Florida. The Clerk's Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and custodial funds of the Clerk's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida (the County) that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of the County in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the County Annual Comprehensive Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk's general fund. Court -related operations are funded by the collection of fines, fees, costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 11 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund —The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund — The court services fund is a special revenue fund established to account for court -related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund — The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office; and revenues mandated by Section 28.24(12)(e) and Section 28.37(5), Florida Statutes, to be used exclusively for funding court -related technology needs. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. 12 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk's activities are classified as court -related and non -court -related. The Clerk's general fund activity, which is classified as non -court -related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of the County rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds — Custodial Funds — Custodial funds are used to account for assets held by the Clerk in a fiduciary capacity or as an agent for individuals, private organizations, and other governments. Custodial funds are accounted for using the accrual basis of accounting. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Unearned Revenues In instances where assets have been received by the Clerk for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Unearned revenue of the Clerk as of September 30, 2023, is related to a bond forfeiture. 13 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk's funds, but rather is reported in the basic financial statements of the County. Prepaid Items The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non -spendable fund balances at the Clerk as of September 30, 2023. 14 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund -Type Definitions (continued) Spendable fund balances are classified based on a hierarchy of the Clerk's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk's fund baltmces for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk's annual budget. The Clerk prepares and approves the budget for the Clerk's non -court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court -related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ended September 30, 2023, the Clerk had sufficient revenues to meet expenditures. 15 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 2. Budgetary Process (continued) The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk's fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. The Clerk exceeded appropriations related to capital outlay due to the implementation of GASB 96 Subscription -based Information Technology Arrangements, the budget was not amended for these additional capital outlay expenditures. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 3. Cash and Cash Equivalents At September 30, 2023, the carrying value of the Clerk's cash and cash equivalents was as follows: Type Maturity Cash on hand Demand deposits Total cash and cash equivalents Carrying Value N/A $ 11,200 N/A 35,052,086 $ 35,063,286 Credit Rating N/A N/A The Clerk maintains a cash pool for the deposits of all governmental and custodial funds. Each fund type's portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. 16 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2023 are reported as $10,212,168 and $24,851,118 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2023, the Clerk's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Clerk's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter -local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk's funds is based on maintaining 24-hour liquidity. All Clerks funds are held in local banks or short-term investment instruments. 17 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 4. Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of $433,994 is reported in the general fund for the year ended September 30, 2023, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of the County rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of the County. The following is a summary of changes in capital assets, which are reported in the basic financial statements of the County: 10 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 October 1, Transfer- September 30, 2022 Additions Deductions out 2023 Capital assets not depreciated: Construction in progress subscription -based information technology arrangements $ - $ 117,653 $ - $ - $ 117,653 Total assets not depreciated - 117,653 - - 117,653 Machinery and equipment 6,891,021 124,350 (33,758) - 6,981,613 Right -to -use leased equipment 87,527 - - - 87,527 Right -to -use subscription -based information technology arrangements - 649,232 - - 649,232 Total capital assets 6,978,548 773,582 (33,758) - 7,718,372 Less accumulated depreciation and amortization Machinery and equipment Right -to -use leased equipment Right -to -use subscription -based information technology arrangements Total accumulated depreciation Total capital assets, net (6,234,894) (329,474) 33,758 - (6,530,610) (25,378) (20,600) - - (45,978) - (178,364) - - (178,364) (6,260,272) (528,438) 33,758 - (6,754,952) $ 718,276 $ 362,797 $ - $ - $ 1,081,073 19 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 5. Capital Assets (continued) Leases The Clerk leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Clerk's leases can be found in the County Annual Comprehensive Financial Report or County -wide financial statements. Leases entered into by the Clerk are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2023, the Clerk did not enter into new leases. During the year ended September 30, 2023, the Clerk's payments on leases totaled $21,404. Subscription -Based Information Technology Arrangements The Clerk contracts for the right to use another party's information technology software for various terms under certain agreements that meet the definition of a subscription -based information technology arrangement under GASB Statement No. 96 - Subscription -Based Information Technology Arrangements (SBITAs). Detailed information about the Clerk's SBITAs can be found in the County Annual Comprehensive Financial Report or County -wide financial statements. SBITAs entered into by the Clerk are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the subscription terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2023, the Clerk's SBITAs totaled $766,885 and total payments on SBITAs totaled $277,655. 20 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 6. Long -Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of the County: October 1, September 30, 2022 Additions Deletions 2023 Accrued compensated absences S 2,125,994 S 1,304,999 S (99.0361 S 3.33L957 Of these liabilities, $1,432,921 is expected to be paid during the fiscal year ending September 30, 2024. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State - administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www. dms.myflorida. com). 21 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 7. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 if vested, or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 55, if vested, or at any age after 25 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost - of -living adjustments to eligible participants. 22 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 7. Pension Plans (continued) Plan Description (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre - July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 23 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 7. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2023, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State - administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member 24 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 7. Pension Plans (continued) FRS Investment Plan (continued) accounts and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2023, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk's contributions made to the plans during the years ended September 30, 2023, 2022, and 2021 were $2,034,343, $1,591,676, and $1,323,776, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County Annual Comprehensive Financial Report or County -wide financial statements. 25 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 8. Related Party Transactions The Board provided funding for the Clerk in the amount of $12,080,000. The Supervisor of Elections provided funding in the amount of a $53,500 fee for financial services performed by the Clerk. At September 30, 2023, the Clerk had a payable due to the Board of $498,635, comprised as follows: Distribution of excess fees $ 210,395 Amounts due for various court fees 288,240 Total due to Board of County Commissioners $ 498,635 9. Risk Management The County is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2023, the Clerk was charged $2,802,471 by the County for participation in the risk management program. 26 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 9. Risk Management (continued) The County retains the first $500,000 per claim for workers' compensation and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for $300,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3 % wind deductible and a $50,000 deductible for all other perils. The County retains the first $300,000 each claim for public official errors and omissions and $100,000 each loss for the crime coverage and has purchased outside excess coverage for up to $5 million per claim for E&O and $1,000,000 each loss for Crime. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $1,000,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Other Postemployment Healthcare Benefits (OPEB) Plan In accordance with Section 112.0801, Florida Statutes, the Clerk participates with the County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 27 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2023 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a "party in interest" in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2023, the Clerk was involved in approximately 127,940 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in 348 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are 2 active actions for foreclosure of property in which the Clerk has been a named defendant. In the opinion of the Clerk and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk. The Clerk's Office carries insurance to protect against loss. 12. Adoption of New Accounting Pronouncements During the year ended September 30, 2023, the Clerk adopted GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs). The primary objective of this statement is to establish a definition for SBITAs and provide uniform guidance for accounting and financial reporting for transactions that meet that definition. Detailed information about the Clerk's SBITAs can be found in the County Annual Comprehensive Financial Report or County -wide financial statements. SBITAs entered into by the Clerk are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the subscription terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. W. Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statement of Fiduciary Net Position Custodial Funds September 30, 2023 Jury and Clerk's Court Ordinary Total Agency Registry Witness Custodial Funds Assets Cash and cash equivalents $ 7,385,619 $ 17,445,187 $ 20,312 $ 24,851,118 Total assets 7,385,619 17,445,187 20,312 24,851,118 Liabilities Due to other governments 5,640,054 - - 5,640,054 Total liabilities 5,640,054 - - 5,640,054 Fiduciary Net Position Restricted for: Individuals, organizations, and other governments 1,745,565 17,445,187 20,312 19,211,064 Total fiduciary net position 1,745,565 17,445,187 20,312 19,211,064 Total liabilities and fiduciary net position $ 7,385,619 $ 17,445,187 $ 20,312 $ 24,851,118 29 Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended September 30, 2023 Additions Fees/Fines collected for other governments Registry and other deposits collected Total additions Deductions Fees/Fines disbursed to other governments Registry and other deposits disbursed Total deductions Change in fiduciary net position Fiduciary net position - beginning of year Fiduciary net position - end of year Clerk's Court Agency Registry Jury and Ordinary Total Witness Custodial Funds $ 166,822,144 $ - $ - $ 166,822,144 - 18,161,947 55,000 18,216,947 166,822,144 18,161,947 55,000 185,039,091 166,650,883 - - 166,650,883 - 17,528,394 40,338 17,568,732 166,650,883 17,528,394 40,338 184,219,615 171,261 633,553 1,574,304 16,811,634 $ 1,745,565 $ 17,445,187 $ 14,662 819,476 5,650 18,391,588 20,312 $ 19,211,064 30 CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida, Clerk of the Circuit Court and Comptroller (Clerk), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements, and have issued our report thereon dated February 26, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 31 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida February 26, 2024 32 CliftonLarsonAllen LLP . CLAconnect.com MANAGEMENT LETTER Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Clerk of the Circuit Court and Comptroller (Clerk) as of and for the year ended September 30, 2023, and have issued our report thereon dated February 26, 2024. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated February 26, 2024 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings reported in the prior audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 33 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Clerk and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida February 26, 2024 91 CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida We have examined the Collier County, Florida, Clerk of the Circuit Court and Comptroller's (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets during the year ended September 30, 2023. Management of the Clerk is responsible for the Clerk's compliance with the specified requirements. Our responsibility is to express an opinion on the Clerk's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Clerk complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Clerk complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Clerk's compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets during the year ended September 30, 2023. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida February 26, 2024 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 35 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Collier County, Florida Property Appraiser Financial Statements and Supplementary Reports Year Ended September 30, 2023 CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2023 Contents IndependentAuditors' Report ..........................................................................................................1 Financial Statements Balance Sheet — General Fund......................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance— General Fund.............................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget (Non-GAAP) and Actual — General Fund....................................................6 Notesto Financial Statements.......................................................................................................7 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................22 ManagementLetter........................................................................................................................24 Independent Accountants' Report ..................................................................................................27 Schedule of Findings and Responses.............................................................................................29 0 INDEPENDENT AUDITORS' REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the general fund of the Collier County, Florida, Property Appraiser (the Property Appraiser), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Property Appraiser's basic financial statements, as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Property Appraiser as of September 30, 2023, and the changes in financial position and the budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Property Appraiser and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements of the Property Appraiser referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position, and the changes in financial position of only that portion of the general fund of Collier County, Florida that is attributable to the transactions of the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2023 and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. CLA (Clifton LarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Abe Skinner Property Appraiser Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. PA Honorable Abe Skinner Property Appraiser Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements are not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 4, 2023, on our consideration of the Property Appraiser's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control over financial reporting and compliance. Clifton LarsonAllen LLP Naples, Florida December 4, 2023 3 Collier County, Florida Property Appraiser Balance Sheet — General Fund September 30, 2023 Assets Cash and cash equivalents $ 2,545,013 Total assets $ 2,545,013 Liabilities and fund balance Liabilities: Accounts payable and accrued expenses $ 232,931 Due to Collier County, Florida Board of County Commissioners 1,135,189 Due to other taxing districts 1,176,893 Total liabilities 2,545,013 Fund balance - Total liabilities and fund balance $ 2,545,013 See accompanying Notes to Financial Statements. 2 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2023 Revenues: Commissions and fees $ 11,510,420 Charges for services 205,253 Miscellaneous 5,349 Total revenues 11,721,022 Expenditures: General government: Personal services 7,162,696 Operating 2,159,914 Capital outlay 141,767 Debt service - principal 18,623 Debt service - interest 1,368 Total expenditures 9,484,368 Excess of revenues over expenditures 2,236,654 Other financing Sources (uses): Proceeds from lease 52,689 Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (1,135,189) Distribution of excess fees and commissions to other governmental agencies (1,154,154) Total other financing Sources (uses) (2,236,654) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year $ - See accompanying Notes to Financial Statements. 5 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2023 Revenues: Commissions and fees Miscellaneous Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service - principal Debt service - interest Total expenditures Excess of revenues over expenditures Other financing uses: Proceeds from lease Distribution of excess fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions and fees to other governmental agencies Total other financing uses Net change in fund balance Fund balance, beginning of year Fund balance, end of year Budget Original Final Actual Variance With Final Budget Positive (Negative) $ 10,194,772 $ 10,211,509 $ 10,211,509 $ - - - 5,349 5,349 10,194,772 10,211,509 10,216,858 5,349 8,054,212 8,070,949 2,105,560 2,105,560 35,000 35,000 1 V, 17-T, / / /- 1 V,/ L 1,JV7 See accompanying Notes to Financial Statements. 7,162,696 908,253 1,672,448 433,112 141,767 (106,767) 18,623 (18,623) 1,368 (1,368) 8,996,902 1,214,607 - - 1,219,956 1,219,956 - - 52,689 52,689 - - (1,135,189) (1,135,189) (137,456) (137,456) - (1,219,956) (1,219,956) 2 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida, Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of Collier County, Florida (the County), pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser's total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser's office. The Property Appraiser's financial statements include only the funds of the Property Appraiser's office. For financial reporting purposes, the Property Appraiser is deemed to be part of the primary government of the County, and, therefore, is included as such in the County's Annual Comprehensive Financial Report (ACFR). There are no component units included in the Property Appraiser's financial statements. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the ACFR. These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 7 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds' present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser's only governmental fund is the general fund. The general fund is used to account for the general operations of the Property Appraiser. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services and interest income are recognized as they are earned and become measurable and available to pay liabilities of the current period. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the "susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each govermnental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental fund of the Property Appraiser. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Refund of Excess Fees Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as another financing use -transfer out in the accompanying financial statements. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave and up to 200 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of the County. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends costs as they are incurred and does not allocate the cost between periods. 9 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Adoption of New Accounting Standard In May 2020, GASB introduced a new standard, statement No 96 Subscription -Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (Governments). This Statement. (1) defines SIBTA; (2) establishes that a SBITA results in a right -to -use subscription asset an intangible asset and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding SBITA. The Property Appraiser adopted the requirements of the guidance in 2023. Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser's annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser's total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 10 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) 2. Budgetary Process (continued) The Property Appraiser's budget is prepared under a budgetary basis of accounting that differs from generally accepted accounting principles (GAAP). Certain revenues received from TRIM notices, non -ad valorem commissions, expenditures of such revenue, and other financing uses related to non -ad valorem revenue are not recognized under the budgetary basis of accounting; however, these items have been recognized under GAAP. A reconciliation of revenues, expenditures, and other financing uses on a budgetary basis to a GAAP is as follows: Total revenues - budgetary basis Revenues not budgeted: Non -ad valorem commissions are not budgeted TRIM reimbursements are not budgeted Total revenues - GAAP basis Total expenditures - budgetary basis Expenditures not budgeted: Non -ad valorem related expenditures are not budgeted TRIM expenditures are not budgeted Total expenditures - GAAP basis Total other financing uses - budgetary basis Other financing uses not budgeted: Distribution of non -ad valorem excess fees are not budgeted Total other financing uses - GAAP basis $ 10,216,858 1,298,911 205,253 $ 11,721,022 $ 8,996,902 282,213 205,253 $ 9,484,368 $ (1,219,956) (1,016,698) $ (2,236,654) 11 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 3. Cash At September 30, 2023, the carrying value of the Property Appraiser's cash was as follows: Cash on hand Demand deposits Total cash Custodial Credit Risk Carrying Type Value $ 125 2,544,888 $ 2,545,013 At September 30, 2023, the Property Appraiser's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Property Appraiser's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 12 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2023: October 1, September 30, 2022 Additions Deductions 2023 Improvements other than buildings $ 15,332 $ - $ - $ 15,332 Machinery and equipment 1,494,569 89,078 - 1,583,647 Right -to -use leased equipment 83,939 52,689 - 136,628 Total capital assets 1,593,840 141,767 - 1,735,607 Accumulated depreciation: Improvements other than buildings (10,083) (927) - (11,010) Machinery and equipment (1,430,124) (36,132) - (1,466,256) Accumulated amortization: Right -to -use leased equipment (65,167) (20,446) - (85,613) Total Depreciable capital assets, net (1,505,374) (57,505) - (1,562,879) Total capital assets, net $ 88,466 $ 84,262 $ - $ 172,728 13 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of the County: October 1, September 30, 2022 Increase Decrease 2023 Accrued compensated absences $ 490,778 $ 516,637 $ (510,155) $ 497,260 Of these liabilities, approximately $100,000 is expected to be paid during the fiscal year ending September 30, 2024, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 14 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. • Special Risk Administrative Support Class —Members who provide administrative support for a special risk employer. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55, if vested, or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 55, if vested, or at any age after 25 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. 15 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3% FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 16 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2023, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. 17 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) FRS Investment Plan (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2023, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. UK Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Cnntrihutians The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser's employer contributions to the plan for the years ended September 30, 2023, 2022, and 2021, were $803,360, $693,093, and $650,648, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County's financial statements. 7.Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Property Appraiser participates with the County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 8. Related Party Transactions During the fiscal year ended September 30, 2023, the Board paid fees to the Property Appraiser that amounted to $9,105,097. At September 30, 2023, the Property Appraiser had a payable due to the Board of $1,135,189. 19 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 9. Risk Management The County is exposed to various risks of loss including but not limited to, general liability, health and life, property, and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County's self-insurance program. During the year ended September 30, 2023, the Property Appraiser was charged $1,217,501 by the County for participation in the risk management program. The County retains the first $600,000 per claim for workers' compensation and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $100,000 deductible for all other perils. The County retains the first $300,000 per claim/$100,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all its employees and their eligible dependents. The County retains the first $750,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 20 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2023 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser. Leases The Property Appraiser leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Property Appraiser's leases can be found in the County's financial statements. Leases entered by the Property Appraiser are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2023, the Property Appraiser entered into one lease in the amount of $52,689. During the year ended September 30, 2023, the Property Appraiser's payments of principal on leases totaled $18,623. 21 . Clifton La rsonAl len LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County, Florida, Property Appraiser (the Property Appraiser), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Property Appraiser's basic financial statements, and have issued our report thereon dated December 4, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. 22 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Abe Skinner Property Appraiser We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as item 2023-001 that we consider to be a material weakness. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The Property Appraiser's Response to the Finding Government Auditing Standards requires the auditor to perform limited procedures on the Property Appraiser's response to the finding identified in our audit and described in the accompanying schedule of findings and responses. The Property Appraiser's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Clifton LarsonAllen LLP Naples, Florida December 4, 2023 23 0 MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements Clifton LarsonAllen LLP CLAconnect.com We have audited the financial statements of the Collier County, Florida, Property Appraiser (the Property Appraiser) as of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated December 4, 2023 Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated December 4, 2023, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. 24 CLA (Clifton LarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Abe Skinner Property Appraiser Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we identified one such matter which is described below: 2023 — 002 Florida Statutes (FS) 145.10(2)(a) — Compensation of County Officials Condition: As part of the audit, we noted that the Property Appraiser's salary for 2023 exceeded specified limits required by Florida Statutes 145.10(2)(a). Criteria of specific requirement: Florida Statutes 145.10(2)(a) states that each property appraiser shall receive as salary the amount indicated, based on the population of his or her county. In addition, a compensation shall be made for population increments over the minimum for each population group, which shall be determined by multiplying the population in excess of the minimum for the group times the group rate. There shall be an additional $2,000 per year special qualification salary for each property appraiser who has met the requirements of the Department of Revenue and has been designated a certified Florida property appraiser. Effect: The Property Appraiser was non -compliant with Florida Statutes 145.10(2)(a) for 2023. The Property Appraiser rectified the overpayment subsequent to year end. Cause: The Property Appraiser's internal controls failed to detect or prevent the error. Repeated Finding: No Recommendation: We recommend that management strengthen internal controls related to the payroll process, to ensure that clerical errors are detected during review. View responsible officials: The Property Appraiser will have two members collect the document from office of Demographic Research Salaries of Elected County Constitutional Officers, and the financial budget for that year. They will review both documents and sign off on the Property Appraisers' salary for that year. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor 25 Honorable Abe Skinner Property Appraiser General, Federal and other granting agencies, the Property Appraiser, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 4, 2023 26 0 INDEPENDENT ACCOUNTANTS' REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com We have examined the Collier County, Florida, Property Appraiser's (the Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2023. Management of the Property Appraiser is responsible for the Property Appraiser's compliance with the specified requirements. Our responsibility is to express an opinion on the Property Appraiser's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Property Appraiser complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Property Appraiser complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on ourjudgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Property Appraiser's compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2023. 27 CLA (Clifton LarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Abe Skinner Property Appraiser This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida December 4, 2023 WO PROPERTY APPRAISER SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED SEPTEMBER 30, 2023 2023 — 001 Audit Adjustments Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: As part of the audit, we proposed audit adjustments to correct the Property Appraiser's financial statements at year-end. Criteria of specific requirement: The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Framework states that control activities are a component of internal control. Control activities are policies and procedures established to ensure that management directives are carried out, and consist of two elements, a policy that establishes what should be done and the procedure that implements the policy. COSO Framework states that control activities must be in place for there to be adequate internal control procedures over financial reporting. Internal control procedures affect the Property Appraiser's ability to ensure financial transactions are authorized and accurate. The Property Appraiser's management is responsible for establishing and maintaining internal controls for year-end financial reporting and the proper recording of all transactions. Effect: The proposed audit adjustments were recorded by management to correct the financial statements. Cause: The Property Appraiser's internal controls over financial reporting did not detect or prevent the misstatements requiring correction. Repeated Finding: No Recommendation: While we understand that the Property Appraiser utilizes CLA to make certain adjustments to the financial statements to convert their records to GAAP basis, we cannot be part of the Property Appraiser's internal control structure. We recommend that management strengthen internal controls over the review processes related to the Property Appraiser's transactions and activity to ensure the financial statements are presented in accordance with accounting principles generally accepted in the United States of America. View responsible official and planned corrective actions: The Property Appraiser's office will continue to improve and create procedures to make appropriate Journal entries with recommendations from CLA. 29 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Collier County, Florida Sheriff Financial Staterr Supplemental 1 Year Ended Septem CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Contents IndependentAuditors' Report......................................................................................................... 1 Financial Statements Balance Sheet — Governmental Funds............................................................................................ 5 Statement of Revenues, Expenditures, and Changes in Fund Balances — GovernmentalFunds.................................................................................................................... 6 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget (Non-GAAP) and Actual — General Fund........................................................................7 Statement of Net Position — Internal Service Fund......................................................................... 8 Statement of Revenues, Expenses, and Changes in Net Position — InternalService Fund................................................................................................................... 9 Statement of Cash Flows — Internal Service Fund........................................................................ 10 Statement of Fiduciary Net Position — Fiduciary Funds................................................................ 11 Statement of Changes in Fiduciary Net Position — Fiduciary Funds ............................................. 12 Notesto Financial Statements....................................................................................................... 13 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios...............................................39 Combining Financial Information — Supplementary Information Combining Statement of Fiduciary Net Position — Custodial Funds ............................................ 40 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds ...........................41 Contents (continued) Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards................................................................................................ 42 ManagementLetter....................................................................................................................... 44 Independent Accountants' Report ................................................................................................. 46 Independent Accountants' Report on Applying Agreed -Upon Procedures ................................... 47 0 Honorable Kevin Rambosk Sheriff Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida, Sheriff (Sheriff), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Sheriff's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Sheriff as of September 30, 2023, and the respective changes in financial position, and where applicable, cash flows thereof, and the budgetary comparison for the general fund for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Sheriff and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Sheriff referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position, the changes in financial position, and where applicable, cash flows of only that portion of each major fund and the aggregate remaining fund information of Collier County, Florida that is attributable to the transactions of the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2023, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Kevin Rambosk Sheriff As discussed in Note 5, effective October 1, 2022, the Sheriff adopted GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This standard requires governments to recognize a right -to -use subscription -based information technology arrangement asset and corresponding subscription -based information technology arrangement liability for all arrangements with terms greater than 12 months. As a result of the implementation of this standard, the beginning fund balance of the general fund was restated. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. 2 Honorable Kevin Rambosk Sheriff We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the schedule of changes in total OPEB liability and related ratios, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff's basic financial statements. The combining statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Honorable Kevin Rambosk Sheriff Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 2, 2024, on our consideration of the Sheriff's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Sheriff's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff's internal control over financial reporting and compliance. Clifton LarsonAllen LLP Naples, Florida February 2, 2024 11 Collier County, Florida Sheriff Balance Sheet - Governmental Funds September 30, 2023 Grant Other Non -Major Special Prisoner Special Revenue General Revenue Fund Welfare Funds Assets Cash and cash equivalents $ 12,318,246 $ 1,974,883 $ 4,115,930 $ - Accounts receivable 75,492 - - - Other receivable 71,632 - 47,134 - Due from other funds 266,414 - 62,659 - Due from other governments 94,465 943,294 - - Due from Collier County, Florida Board of Total $ 18,409,059 75,492 118,766 329,073 1,037,759 County Commissioners - 154,948 - 221,577 376,525 Prepaid items 107,090 - - - 107,090 Total assets $ 12,933,339 $ 3,073,125 $ 4,225,723 $ 221,577 $ 20,453,764 Liabilities and fund balances Liabilities: Accounts payable $ 1,239,271 $ 60,243 $ 9,960 $ 40,204 $ 1,349,678 Accrued liabilities 11,313,381 26,347 2,565 7,006 11,349,299 Due to other funds 79,933 174,367 254,300 Due to Collier County, Florida Board of County Commissioners 349,399 - - - 349,399 Unearned revenue 3,298 118,155 - - 121,453 Total liabilities 12,905,349 204,745 92,458 221,577 13,424,129 Deferred inflow of resources Unavailable revenue - Grants - 12,804 - - 12,804 Total deferred inflow of resources - 12,804 - - 12,804 Fund balances: Non -spendable - Prepaid items 107,090 - - - 107,090 Restricted - Grants - 2,855,576 - 2,855,576 Restricted -Prisoner welfare - - 4,133,265 - 4,133,265 Unassigned (79,100) - - - (79,100) Total fund balance 27,990 2,855,576 4,133,265 - 7,016,831 Total liabilities and fund balances $ 12,933,339 $ 3,073,125 $ 4,225,723 $ 221,577 $ 20,453,764 See accompanying Notes to Financial Statements 5 Collier County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds Year Ended September 30, 2023 Revenues: Grant revenue Charges for services Total revenues Exp enditures: General government: Personal services Operating expenditures Public safety: Personal services Operating expenditures Capital outlay Debt service -principal Debt service - interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Leases Subscription Based Information Technology Arrangements Transfers in: Collier County, Florida Board of County Commissioners appropriations Collier County, Florida Board of County Commissioners Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balances Fund balances — beginning of year, as restated Fund balances — end of year Grant Other Non -Major Special Prisoner Special Revenue General Revenue Fund Welfare Funds Total $ 80,964 $ 2,306,777 $ — $ — $ 2,387,741 1,340,224 — 1,284,616 — 2,624,840 1,421,188 2,306,777 1,284,616 — 5,012,581 5,318,796 — — — 5,318,796 124,697 — — — 124,697 181,414,923 596,172 377,330 723,546 183,111,971 39,993,742 1,102,192 186,121 1,444,350 42,726,405 12,979,400 113,276 — — 13,092,676 300,234 31,733 — — 331,967 11,746 1,232 — — 12,978 240,143,538 1,844,605 563,451 2,167,896 244,719,490 (238,722,350) 462,172 721,165 (2,167,896) (239,706,909) 127,569 56,608 — — 184,177 2,120,545 — — — 2,120,545 236,274,800 — — — 236,274,800 450,000 2,167,896 2,617,896 (264,619) — — — (264,619) 238,708,295 56,608 — 2,167,896 240,932,799 (14,055) 518,780 721,165 — 1,225,890 42,045 2,336,796 3,412,100 — 5,790,941 $ 27,990 $ 2,855,576 $ 4,133,265 $ — $ 7,016,831 See accompanying Notes to Financial Statements 6 Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balance — Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2023 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ $ 1,170,000 $ 1,340,224 $ 170,224 Grant revenue — — — $ Total revenues — 1,170,000 1,340,224 170,224 Expenditures: General government: Personal services 5,436,400 5,436,400 5,318,796 117,604 Operating expenditures 173,100 173,100 124,697 48,403 Public safety: Personal services 182,807,500 186,062,500 181,414,923 4,647,577 Operating expenditures 39,104,300 39,107,200 39,993,742 (886,542) Capital outlay 6,353,500 6,353,500 12,529,400 (6,175,900) Debt service - principal — 300,300 300,234 66 Debt service - interest — 11,800 11,746 54 Total expenditures 233,874,800 237,444,800 239,693,538 (2,248,738) Excess of expenditures over revenues (233,874,800) (236,274,800) (238,353,314) (2,078,514) Other financing sources (uses): Leases — — 127,569 127,569 Subscription Based Information Technology Arrangements — — 2,120,545 2,120,545 Transfers in: Collier County, Florida Board of County Commissioners appropriations 233,874,800 236,274,800 236,274,800 — Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners — — (264,619) (264,619) Total other financing sources 233,874,800 236,274,800 238,258,295 1,983,495 Net change in fund balance — — (14,055) (14,055) Non-sp endable fund balance —beginning of year — — 42,045 42,045 Non -spendable fund balance — end of year $ — $ — $ 27,990 $ 27,990 Total revenues - budgetary basis $ 1,340,224 Revenues not budgeted: Revenues for mutual aid cost reimbursements that are not budgeted 80,964 Total revenues - GAAP basis $ 1,421,188 Total expenditures -budgetary basis $ 239,693,538 Expenditures not budgeted: Expenditures for multi -period projects that are not budgeted 450,000 Total expenditure - GAAP basis $ 240,143,538 Total other financing sources - budgetary basis $ 238,258,295 Transfers in from Collier County Florida Board of County Commissioners (non -appropriations) 450,000 1 otal other tmancmg sources (uses) - UAAF basis $ 238,708,295 See accompanying Notes to Financial Statements 7 Collier County, Florida Sheriff Statement of Net Position — Internal Service Fund September 30, 2023 Assets: Cash and cash equivalents $ 6,122,619 Investments 11,431,649 Due from stop loss 547,615 Interest receivable 26,826 Total assets 18,128,709 Liabilities: Self insurance claims payable 3,804,000 Unearned revenue 108,195 Total liabilities 3,912,195 Net position: Unrestricted 14,216,514 Total net position $ 14,216,514 See accompanying Notes to Financial Statements 8 Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position — Internal Service Fund Year Ended September 30, 2023 Operating revenues: Charges for services $ 32,509,201 Total operating revenues 32,509,201 Operating expenses: Claims and claims expenses 28,477,848 Reinsurance premiums 2,889,551 Administrative and other expenses 445,544 Total operating expenses 31,812,943 Operating income 696,258 Nonoperating revenues: Interest income, net of management fees 266,358 Net increase in fair value of investments 231,873 Total nonoperating revenues 498,231 Change in net position 1,194,489 Net position — beginning of year 13,022,025 Net position — end of year $ 14,216,514 See accompanying Notes to Financial Statements 9 Collier County, Florida Sheriff Statement of Cash Flows — Internal Service Fund Year Ended September 30, 2023 Cash flows from operating activities: Cash payments for claims and claims related services Cash payments for reinsurance premiums Cash payments for administrative services and supplies Cash received from other funds for services Cash received from retirees for services Net cash provided by operating activities Cash flows from investing activities: Interest earnings, net of management fees Purchase of securities Proceeds from sales of securities Net cash provided by investing activities Net increase in cash, cash equivalents, and investments Cash, cash equivalents, and investments — beginning of year Cash, cash equivalents, and investments — end of year Reconciliation of operating income to net cash provided by operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Increase in due from stop loss Increase in self-insurance claims payable Decrease in unearned revenue Net cash provided by operating activities Non -cash investing activities Change in fair value of investments $ (28,438,299) (2,889,551) (445,544) 30,900,000 1,608,685 735,291 164,806 (502,263) 411,824 74,367 911,211 5,211,408 $ 6,122,619 $ 696,258 (299,451) 339,000 (516) $ 735,291 $ 232,889 See accompanying Notes to Financial Statements 10 Collier County, Florida Sheriff Statement of Fiduciary Net Position — Fiduciary Funds Assets: Cash and cash equivalents Due from individuals and businesses Total assets Liabilities: Due to other funds Due to other Total liabilities Fiduciary Net Position: Restricted for: Individuals and Organizations September 30, 2023 Private Purpose Custodial Funds Trust Fund $ 375,805 $ 633,353 — 6,369 $ 3752805 $ 639,722 $ — $ 74,773 975 75,748 $ 375,805 $ 563,974 See accompanying Notes to Financial Statements 11 Collier County, Florida Sheriff Statement of Changes in Fiduciary Net Position — Fiduciary Funds Year Ended September 30, 2023 Additions: Contributions: Individuals Fees collected for other governments Miscellaneous Total additions Deductions: Beneficiary payments to individuals Payment of fees to other governments Payments to other entities Total deductions Net increase in Fiduciary Net Position Fiduciary Net Position - Beginning of year Fiduciary Net Position - End of year Private Purpose Trust Fund Custodial Funds $ 548,861 $ 3,911,897 — 784,508 — 10,713 548,861 4,707,118 484,252 3,906,256 — 148,589 — 389,506 484,252 4,444,351 64,609 262,767 311,196 301,207 $ 375,805 $ 563,974 See accompanying Notes to Financial Statements 12 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff's budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County's corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and fiduciary funds of the Sheriff's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions, results of operations, or where applicable, the cash flows of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government - wide financial statements and related disclosures, including management's discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2023 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Annual Comprehensive Financial Report. Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated general fund balance is carried forward. However, the Sheriff currently has $107,090 in non -spendable fund balance to account for prepaid items that cover multiple fiscal years. This non -spendable fund balance will be reduced each fiscal year proportionate to the expenditure incurred for each fiscal year until the balance is $0. 13 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation (continued) The fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Sheriff considers revenues to be available if they are collected within 60 days after year-end with the exception of grants, which have a period of availability of one year. Grants are recognized as revenue as soon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, debt service principal and interest on leases, and SBITAs which are recognized as expenditures to the extent they have matured. Substantially all of the Sheriff's funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, money must be expended on the specific purpose or project before any amounts will be paid to the Sheriff, therefore, revenue is recognized based upon the expenditures incurred. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the "susceptible to accrual" criteria are met. Other revenue is recognized as earned and becomes measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. 14 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has three major governmental funds: General Fund — The general fund is used to account for the general operations of the Sheriff and includes all transactions which are not accounted for in another fund. Grant Special Revenue Fund — This fund is used to account for the proceeds of federal and state grant revenues that are legally restricted to specified purposes. It also includes funds donated to the Collier County Sheriff's Office. Donated funds are used in accordance with how each donor designates the use of funds. The majority of donated funds are usually designated for youth programs, however, funds have also been donated for officer safety, use by specific districts/substations for community activities, or other programs/activities in the community. Prisoner Welfare Fund — This fund is used to account for the proceeds of inmate -related services and is legally restricted to specified purposes, which benefit the inmate population. The Sheriff also has the following non -major funds: Reported as Other Non -major Special Revenue Funds Confiscated Trust Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. Civil Citation — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. Education Trust Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911 — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. 15 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Criminal Justice Education and Training — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Domestic Violence Training Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 938.08. Funds are used to defray of incarcerating persons sentenced under Florida Statute 741.283 and to provide additional training to law enforcement personnel in combating domestic violence. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. Fiduciary Funds Custodial Funds — These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Custodial funds are custodial in nature. Custodial funds are accounted for using the accrual basis of accounting. Private Purpose Trust Fund — These funds are used to account for flexible spending contributions from agency members. The private purpose trust fund is accounted for using the accrual basis of accounting. Proprietary Fund Internal Service Fund — This fund is used to account for the health and dental insurance services provided to departments and retirees of the Sheriff on a cost -reimbursement basis. Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods. The operating revenues of the internal service fund consists of charges for services. Operating expenses include claims, stop loss premiums, and other administrative expenses. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. 16 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Sheriff invests funds throughout the year with Florida PRIME, an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. Florida PRIME is considered a qualifying external investment pool that meets all the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the Sheriff's position in the pool is the same as the value of the pool shares. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2023, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 31.4% of Florida PRIME's portfolio at September 30, 2023. In accordance with GASB Statement No. 79, as a participant in a qualifying external investment pool, the Sheriff should disclose the presence of any limitations or restrictions on withdrawals such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool's authority to impose liquidity fees or redemption gates in the notes to the financial statements. With regards to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days." 17 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments (continued) With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. At September 30, 2023, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. Prepaid Items Prepaid items consist of certain costs which have been paid prior to the end of the fiscal year but represent items which are applicable to future accounting periods. Reported amounts in governmental funds are classified as non -spendable fund balance, in the fund financial statements, which indicates that these amounts do not constitute "available spendable resources" even though they are a component of current assets. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 600 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 2,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these immature obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff has $107,090 as a non -spendable fund balance as of September 30, 2023. Spendable fund balances are classified based on a hierarchy of the Sheriff's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned, and unassigned. The Sheriff's fund balances for the Grant Special Revenue Fund and Prisoner Welfare Fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund and Prisoner Welfare Fund are constrained for specific purposes that are externally imposed by donors, grantors, laws, or regulations, or imposed by law through constitutional provisions or enabling legislation, and are reported as restricted fund balances. The Sheriff has implemented fund balance and spending policies to clearly define the process for tracking the various classifications of fund balance. The policy states when an expenditure is incurred in which restricted, committed, assigned or unassigned amounts are available to be used, the Sheriff will first use restricted amounts, then committed, then assigned amounts, and finally unassigned amounts. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Sheriff's annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that certain expenditures for long-term projects which are reimbursed by the Board, and mutual aid reimbursements for previous year expenditures are not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. The Sheriff exceeded appropriations related to capital outlay, the budget was not amended for these additional capital outlay expenditures. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. 19 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 2. Budgetary Process (continued) Additionally, the prisoner welfare fund does not have a legally adopted budget. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 20 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 3. Cash, Cash Equivalents and Investments At September 30, 2023, the carrying value of the Sheriff's cash, cash equivalents, and investments was as follows: Carrying Credit Type Maturity Value Rating Cash on hand N/A 27,602 N/A Demand deposits N/A 24,667,721 N/A Local government surplus funds trust fiord: Florida Prime (SBA) N/A 845,513 AAAm Total cash and cash equivalents 25,540,836 Money Market N/A 109,525 Not rated Federal Home Loan Bank 1/15/2025 467,569 AA+ Federal Home Loan Bank STEP 1/29/2026 225,938 AA+ Federal Home Loan Bank 1/29/2026 224,338 AA+ Federal Home Loan Bank 2/26/2026 448,684 AA+ Federal Home Loan Bank STEP 2/18/2026 451,660 AA+ Federal Home Loan Bank 2/26/2027 121,741 AA+ Federal Home Loan Bank STEP 3/26/2026 457,045 AA+ Federal Home Loan Bank 12/9/2024 235,986 AA+ Federal Home Loan Bank 3/28/2025 465,425 AA+ Federal Home Loan Bank 9/30/2026 221,755 AA+ Federal Home Loan Bank 8/28/2024 319,264 AA+ Federal Farm Credit Bank 8/3/2026 88,662 AA+ Federal Farm Credit Bank 9/16/2025 456,649 AA+ Federal Farm Credit Bank 9/l/2026 443,780 AA+ Federal Faun Credit Bank 3/28/2024 487,420 AA+ Federal Faun Credit Bank 10/15/2024 474,115 AA+ Federal Farm Credit Bank 11/30/2023 545,254 AA+ Federal Farm Credit Bank 1/13/2025 369,325 AA+ Federal Farm Credit Bank 2/4/2026 224,063 AA+ Federal Farm Credit Bank 2/10/2025 467,040 AA+ Federal Home Loan Mortgage Corp. 7/30/2026 110,875 Aaa Federal Home Loan Mortgage Corp. 10/20/2025 227,608 Aaa Federal Home Loan Mortgage Corp. 6/23/2026 444,470 Aaa Federal Home Loan Mortgage Corp. 1/7/2026 319,212 Aaa Federal Home Loan Mortgage Assn. 11/25/2025 452,615 AA+ Treasury Note 3/31/2025 481,115 AA+ Treasury Note 5/31/2025 461,055 AA+ Treasury Note 11/30/2026 426,237 AA+ Treasury Note 8/28/2027 227,558 AA+ Treasury Note 4/15/2025 480,900 AA+ Treasury Note 11/15/2025 494,765 AA+ Total Investments 11,431,649 Total cash, cash equivalents and investments 36,972,485 *Credit ratings are Standard & Poor ratings except for FHLMC which are Moody ratings. 21 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 3. Cash, Cash Equivalents and Investments (continued) The total cash, cash equivalent and investments balances at September 30, 2023, were as follows: General fund 12,318,246 Grant special revenue fund 1,974,883 Prisoner welfare fund 4,115,930 Internal service fund 17,554,268 Fiduciary fiords 1,009,158 36,972,485 Custodial Credit Risk At September 30, 2023, the Sheriff's demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Employer Benefits Trust (FSEBT) and are administered by FSEBT. FSEBT's policy requires execution of a third - party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff's name. Credit Risk The Sheriff's policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff's Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest -bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the U.S. Treasury. 22 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 3. Cash, Cash Equivalents and Investments (continued) Credit Risk (continued) Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2023, the Sheriff had $845,513 invested in Florida PRIME. Florida PRIME is rated "AAAm" by Standard and Poor's. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Concentration of Credit Risk The Sheriff's investments are included in the internal service fund which is used to account for the Sheriff's self -insured health plan. FSEBT administers the investments for the Sheriff's self -insured health plan and has an investment policy that allows for the investment of funds that exceed one month's required funding by more than $100,000. Investments can be made in government securities. The Sheriff's portfolio managed by FSEBT includes investments in U.S. government instrumentalities, money market accounts, and demand deposits. There are also demand deposits that are not managed by FSEBT and are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff s portfolio invested in FSEBT is detailed as follows, at September 30, 2023: Money Market Treasury Note Federal Home Loan Mortgage Corp. Federal Home Loan Mortgage Assn. Federal Home Loan Bank Federal Farm Credit Bank Total % of Portfolio 100% 23 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 3. Cash, Cash Equivalents and Investments (continued) Fair Value Measurements The Sheriff categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Sheriff has the following recurring fair value measurements as of September 30, 2023: • U.S. Treasury Notes classified as level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. • U.S. Agency obligations classified as level 2 of the fair value hierarchy are valued using quoted prices for similar assets in active markets. 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at acquisition value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the county's basic financial statements. 24 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 4. Capital Assets (continued) The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 20221 Additions Reclassifications 2023 Governmental Activities Capital assets not depreciated: Construction in progress $ 592,981 $ 1,243,307 $ (539,141) $ 1,297,147 Total capital assets not depreciated 592,981 1,243,307 (539,141) 1,297,147 Capital assets depreciated and amortized: Machinery and equipment ROU leased equipment Subscription based information technology arrangements' Total capital assets depreciated and amortized Less accumulated depreciation and amortization: Machinery and equipment ROU leased equipment Subscription based information technology arrangements' Total accumulated depreciation and amortization Total depreciable capital assets, net Total Governmental Activities capital assets, net 125,808,860 9,942,252 (6,001,809) 129,749,303 637,073 184,177 (224,222) 597,028 1,113,164 2,120,545 — 3,233,709 127,559,097 12,246,974 (6,226,031) 133,580,040 (79,877,047) (14,309,761) 6,046,069 (88,140,739) (387,617) (172,569) 224,222 (335,964) (42,045) (538,938) — (580,983) (80,306,709) (15,021,268) 6,270,291 (89,057,686) 47,252,388 (2,774,294) 44,260 44,522,354 $ 47,845, 669 $ (1,530,987) $ (494,881) $ 45,819,501 1 The Sheriffs Office implemented GASB Statement No. 96 SBrrA in Fiscal Year 2023. Subscription based information technology arrangements under GASB Statement No. 96 were added to the financial statement disclosure in Fiscal Year 2023, resulting in a change in beginning balances. 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2022 Additions Reclassificatiom 2023 Compensated Absences $24,205,261 $6,076,056 ($4,004,816) $ 26,276,501 Of these liabilities, approximately $1,000,000 is expected to be paid during the fiscal year ending September 30, 2024. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 25 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 5. Long -Term Liabilities (continued) The Sheriff leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Sheriff's leases can be found in the Collier County Annual Comprehensive Financial Report or County -wide financial statements. Leases entered into by the Sheriff are included as other financing sources and capital outlay expenditures in the Statement of Revenues, Expenditures, and Changes in Fund Balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the Statement of Revenues, Expenditures, and Changes in Fund Balance as they are incurred. During the year ended September 30, 2023, the Sheriff entered into leases in the amount of $184,177. During the year ended September 30, 2023, the Sheriff's principal and interest payments on leases totaled $179,700. Subscription -Based Information Technology Arrangements (SBITAs) For the fiscal year ending on September 30, 2023, the Sheriffs Office implemented GASB Statement No. 96, Subscription -Based Information Technology Arrangements (SBITAs). This statement offers guidance on the accounting and financial reporting aspects related to subscription - based information technology arrangements. Its primary goal is to define SBITAs and establish consistent guidelines for accounting and financial reporting for transactions falling within that definition. Detailed information concerning the Sheriffs SBITAs is available in the County's annual comprehensive financial report. In the year of inception, SBITAs initiated by the Sheriff are categorized as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance. Payments made in adherence to the subscription terms are recorded as debt service expenditures in the same statement as they are incurred. This change requires the restatement of the September 30, 2022 fund balance as follows: Fund balance September 30, 2022, as previously reported $ 1,137,685 Cumulative effect of application of GASB 96 (1,095,640) Fund balance September 30, 2022, as restated $ 42,045 During the year ended September 30, 2023, Sheriff entered into SBITAs in the amount of $2,120,545, with total principal and interest payments on SBITAs totaling $165,245. 26 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2023, were as follows: General Fund Prisoner Welfare Fund Internal Service Fund Other non -major special revenue funds Custodial funds Total Due From $ 266,414 62,659 Due To 79,933 174,367 — 74,773 $ 329,073 $ 329,073 Interfund receivables and payables generally represent recurring activities between funds. 7. Related Party Transactions The Board provided funding for the Sheriff for the year of $236,274,800. At September 30, 2023, the Sheriff had a payable due to the Board of $349,399 comprised of the following: General fund: Distributions of excess appropriations $ 264,619 Distribution of interest collected 56,220 Miscellaneous payables 28,560 Total $ 349,399 Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $376,525 at September 30, 2023. 27 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. An annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 8. Pension Plans (continued) Plan Description (continued) • Renewed Membership Class —Members who retired from July 1, 1991 through June 30, 2010, and are reemployed in a regularly established position with a covered employer, upon vesting again, are eligible for an additional retirement benefit based on service as a renewed member. Retirees of the FRS Investment Plan who are employed on or after July 1, 2017 are eligible for renewed membership in the Investment Plan. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55, if vested, or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 55, if vested, or at an age after 25 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 29 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 8. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. Retiree Health Insurance Subsidv Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 30 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2023, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan Plan Description The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. 31 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 8. Pension Plans (continued) Benefits Provided For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2023, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff's contributions made to the plans during the years ended September 30, 2023, 2022, and 2021 were $28,542,478, $24,143,503, and $20,409,973, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's annual comprehensive financial report. 32 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). The liability, expense, deferred outflows of resources, and deferred inflows of resources for OPEB, calculated in accordance with GASB Statement No. 75, are reported in the financial statements of the County. Plan Description The Sheriff administers a single -employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for retirees who have six years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 26% for both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 9% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. Participant Data At September 30, 2023, the Sheriff's plan participation consisted of - Active employees 1,158 Inactive employees or beneficiaries currently receiving benefit payments 150 Funding Policy The Sheriff has the authority to establish and amend the funding policy. The OPEB Plan is currently being funded on a pay -as -you go basis. No trust fund has been established for the plan. 33 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 9.Other Postemployment Benefits (continued) Total OPEB Liability The Sheriff's OPEB liability of $37,627,575 was measured as of September 30, 2023, and was determined by an actuarial valuation as of October 1, 2022. The following table shows the changes in the Sheriff's total OPEB liability for the year ended September 30, 2023. Total OPEB Liability Balance, as of October 1, 2022 $ 33,128,024 Changes: Service cost 778,361 Interest 1,080,092 Differences between expected and actual experience 5,877,459 Changes in assumptions or other inputs (883,713) Benefit payments (2,352,648) Net changes 4,499,551 Balance, as of September 30, 2023 $ 37,627,575 The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease Discount Rate 1% Increase (3.09%) (4.09%) (5.09%) Total OPEB Liability $ 40,895,688 $ 37,627,575 $ 34,749,573 34 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 9.Other Postemployment Benefits (continued) Total OPEB Liability (continued) The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1.5% point lower (5.5% decreasing to 4%) or 1.5% point higher (7.5% decreasing to 6%) than the current healthcare cost trend rates: Healthcare rate sensitivity 1% Decrease Healthcare Cost 1% Increase Trend Rates (5.50%/4.00%) (6.50%/5.00%) (7.50%/6.00%) Total OPEB Liability $ 34,617,335 $ 37,627,575 $ 41,072,328 Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2023, the Sheriff's OPEB expense was $4,898,268. In addition the Sheriff had deferred outflow of resources and deferred inflow of resources from the following sources: Description Differences between expected and actual experience Changes in assumptions Total Deferred Outflows of Resources $ 17,663,915 1,779,686 $ 19,443,601 Deferred Inflows of Resources $ 15,449 5,652,590 $ 5,668,039 Amounts reported as net deferred outflows of resources and deferred inflows of resources as an increase/decrease to OPEB expense will be recognized as follows: Year beginning October 1 2023 2024 2025 2026 2027 Thereafter Net Deferred Outflows of Resources $ 3,039,815 3,047,086 2,918,111 2,601,996 1,515,523 653,031 35 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 9. Other Postemployment Benefits (continued) Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate thepotential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 4.09% (20-year AA Municipal bond rate) 6.5% 3% None Mortality rates were based on the Pri-2012 Mortality Tables, separated for males and females and for employees and retirees, projected using Generational Projection Scale MP-2021 for retirees and dependents separately. The following changes have been made since the prior year valuation: • The discount rate was changed from 3.3% to 4.09% • The health care cost assumption and morbidity aging scale has been updated to reflect experience through August 31, 2023. • The health care trend assumption has been updated from a flat 5.0% annual rate to 6.5% grading down to 5.0% over six years to reflect the recent inflation increases. • Benefits for current Medicare eligible retirees enrolled in the health plans are being valued at their current contribution rates. 36 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 10. Self -Insurance Program The Sheriff's Office participates in the Statewide Florida Sheriff's Self -Insurance Fund (the Fund) for its professional liability insurance. The Fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers' compensation coverage. The Florida Sheriffs Workers' Compensation Self Insurance Program is a self-insurance program providing coverage for the first $1,000,000 of every claim. Reinsurance is purchased by the Program to cover claims exceeding $1,000,000 (or $500,000 or $350,000 where applicable, based upon occurrence year of claim) up to $18,000,000. Reinsurance coverage up to $20,000,000 for any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third -party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self -insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self -funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In FY23 there was one covered individual who had a higher deductible amount because of a history of high claims. This individual had a deductible of $700,000. Specific claim excess coverage for this individual is for claims exceeding $700,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriff's Office uses a Third -Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2023 and 2022 are as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2022 $3,236,000 $29,060,254 ($28,831,254) $3,465,000 2023 $3,465,000 $28,777,299 ($28,438,299) $3,804,000 37 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2023 It. Commitments and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. Purchase Commitment On May 5, 2023, the Sheriff signed a Letter of Intent with Lenco Armored Vehicles to purchase one Lenco Bearcat totaling $393,894 obligating the Sheriff to purchase this vehicle. Delivery of the vehicle is scheduled for after February 1, 2024. Payment was made with a 10% non- refundable deposit of $39,389, a non-refundable progress payment of 40% for $157,558 on September 22, 2023, and final payment of 50% for $196,947 within 30 days of delivery. On June 5, 2023, the Sheriff signed a Letter of Intent with Life Proof Boats to purchase 1 Life Proof boat totaling $282,641 obligating the Sheriff to purchase this boat. Delivery of the boat is scheduled for after January 1, 2025. Payment is to be made with a 10% deposit of $28,264, 40% for $113,056 at the start of welding, 35% for $98,924 at the start of rigging, and the final 15% for $42,397 at final inspection and acceptance. Collier County, Florida Sheriff Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios September 30, 2023 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability Service cost $ 778,361 $ 734,513 $ 777,037 $ 555,065 $ 485,365 $ 520,082 $ 491,420 Interest 1,080,092 422,604 448,520 435,838 631,825 503,525 502,621 Differences between expected and actual experien 5,877,459 10,708,734 451 5,292,054 — 2,048,462 (83,607) Changes in assumptions or other inputs (883,713) (5,446,075) 353,427 949,878 2,250,569 (898,977) — Benefit payments (2,352,648) (1,461,666) (1,329,954) (1,098,451) (1,074,207) (941,061) (871,353) Net change in total OPEB Liability 4,499,551 4,958,110 249,481 6,134,384 2,293,552 1,232,031 39,081 Total OPEB Liability, beginning Total OPEB Liability, ending Covered -employee payroll Total OPEB Liability as a percentage of covered - employee payroll Notes to Schedule 33,128,024 28,169,914 27,920,433 21,786,049 19,492,497 18,260,466 18,221,385 $ 37,627,575 $ 33,128,024 $ 28,169,914 $ 27,920,433 $ 21,786,049 $19,492,497 $18,260,466 $ 100,636,180 $ 95,742,481 $ 87,324,387 $ 85,054,216 $ 82,604,011 $ 80,473,682 $79,806,491 37.39% 34.60% 32.26% 32.83% 26.37% 24.22% 22.88% Changes in Assumptions: Change in the discount rate of 3.3% as of September 30, 2022 to 4.09% as of September 30, 2023. The mortality assumption used was the PRI-2012 Mortality Table, separated for males and females and for employees and retirees, projected using Generational Projection Scale MP-2021 for retirees and dependents separately. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is completed, the County will present information for only those years for which information is available. 39 Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position — Custodial Funds September 30, 2023 Total Civil Evidence Inmate Custodial Custodial Fund Custodial Fund Custodial Fund Explorers Funds Assets: Cash and cash equivalents $ 276,339 $ 214,650 $ 101,028 $ 41,336 $ 633,353 Due from individuals and businesses — — 6,369 — 6,369 Total assets $ 276,339 $ 214,650 $ 107,397 $ 41,336 $ 639,722 Liabilities: Due to other funds $ — $ — $ 74,773 $ $ 74,773 Due to others — — 975 — 975 Total liabilities — — 75.748 — 75,748 Restricted for individuals and organizations $ 276,339 $ 214,650 $ 31,649 $ 41,336 $ 563,974 M1 Collier County, Florida Sheriff Combining Statement of Changes in Fiduciary Net Position — Custodial Funds Additions: Contributions: Individuals Fees Collected for Other Governments Miscellaneous Total additions Deductions: Beneficiary Payments to Individuals Payment of Fees to Other Governments Payments to Other Entities Total deductions Net Increase (Decrease) in Fiduciary Net Position Fiduciary Net Position - Beginning of Year Fiduciary Net Position - End of Year Year Ended September 30, 2023 Total Civil Evidence Inmate Custodial Custodial Fund Custodial Fund Custodial Fund Explorers Funds $ $ — $ 3,897,204 $ 14,693 $ 3,911,897 784,508 — — — 784,508 10,713 — 10,713 784,508 10,713 31897,204 14,693 4,707,118 — 684 3,905,572 — 3,906,256 148,589 — — — 148,589 384,111 — 5,395 389,506 532,700 684 3,905,572 5,395 4,444,351 251,808 10,029 (8,368) 9,298 262,767 24,531 204,621 40,017 32,038 301,207 $ 276,339 $ 214,650 $ 31,649 $ 41,336 $ 563,974 41 CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida, Sheriff (Sheriff), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Sheriff's basic financial statements, and have issued our report thereon dated February 2, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff's internal control. Accordingly, we do not express an opinion on the effectiveness of the Sheriff's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 42 Honorable Kevin Rambosk Sheriff Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Clifton LarsonAllen LLP Naples, Florida February 2, 2024 43 0 Honorable Kevin Rambosk Sheriff Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated February 2, 2024. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and our Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 2, 2024, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 44 Honorable Kevin Rambosk Sheriff Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal, and other granting agencies, and the Sheriff and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida February 2, 2024 45 CliftonLarsonAllen LLP . CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida, Sheriff's (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2023. Management of the Sheriff is responsible for the Sheriff's compliance with the specified requirements. Our responsibility is to express an opinion on Sheriff's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Sheriff complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Sheriff complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on ourjudgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Sheriff's compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2023. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. LLB Clifton LarsonAllen LLP Naples, Florida February 2, 2024 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 46 0 Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED -UPON PROCEDURES Honorable Kevin Rambosk Sheriff Collier County, Florida We have performed the procedures enumerated below related to the Collier County, Florida, Sheriff's (Sheriff) compliance with its policies and procedures as defined by the Sheriff over its investigative funds during the year ended September 30, 2023. The Sheriff's management is responsible for its compliance with those requirements. The Sheriff has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of applying procedures and reporting associated findings related to the Sheriffs compliance with specified requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures and the associated findings are as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2023 (the population sampled included transactions from October 1, 2022 through September 30, 2023), and performed the following procedures with respect to the Sheriff's policies and procedures over investigative funds: We obtained the "Disbursement for Investigation" form and observed the form was properly completed and authorized by appropriate personnel. No exceptions were noted. 2. We obtained the "Purchase of Evidence/Information Voucher" and observed the form was properly completed to reflect the expenses incurred within the investigation procedures, the investigative expenditures were properly supported, and the use of funds was for authorized purposes. No exceptions were noted. 3. We observed the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed the amount deposited agreed to the amount returned per the "Receipt for Funds Received" form detail. No exceptions were noted. We were engaged by the Sheriff to perform this agreed -upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Sheriff's compliance with specified requirements. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. CLA (Clifton LarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 47 Honorable Kevin Rambosk Page 2 We are required to be independent of the Sheriff and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed -upon procedures engagement. This report is intended solely for the information and use of the Sheriff and the management of the Sheriff and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 11, 2023 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Collier County Supervisor of 1 Financial Stater. Supplemental Year Ended Septerr CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2023 Contents Independent Auditors' Report .......................................................................................................... I Financial Statements Balance Sheet — Governmental Funds.............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances — GovernmentalFunds.....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual— General Fund..................................................................................................................6 Notes to Financial Statements..........................................................................................................7 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards..............................................22 ManagementLetter........................................................................................................................24 Independent Accountants' Report ..................................................................................................26 OPF Honorable Melissa Blazier Supervisor of Elections Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of each major fund of the Collier County, Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Supervisor's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2023, and the respective changes in financial position and budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Supervisor and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Supervisor referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position and changes in financial position of only that portion of each major fund of Collier County, Florida that is attributable to the transactions of the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2023, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Melissa Blazier Supervisor of Elections Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Governmental Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements is not affected by this missing information. 2 Honorable Melissa Blazier Supervisor of Elections Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 8, 2023 on our consideration of the Supervisor's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Supervisor's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisor's internal control over financial reporting and compliance. Clifton LarsonAllen LLP Naples, Florida December 8, 2023 3 Collier County, Florida Supervisor of Elections Balance Sheet — Governmental Funds September 30, 2023 Assets Cash and cash equivalents Prepaid items Total assets Liabilities and fund balance Liabilities: Accounts payable Accrued liabilities Due to Collier County, Florida Board of County Commissioners Total liabilities Fund balances: Nonspendable Unassigned Total fund balances Total liabilities and fund balances Grant Special General Revenue Total $ 332,679 $ - $ 332,679 51,395 - 51,395 $ 384,074 $ - $ 384,074 $ 50,581 83,398 250,095 384,074 51,395 (51,395) $ - $ 50,581 - 83,398 250,095 384,074 51,395 (51,395) $ 384,074 $ - $ 384,074 See accompanying Notes to Financial Statements. 4 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds Year Ended September 30, 2023 Revenues: Intergovernmental Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of expenditures over revenues Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations: Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balances Fund balances — beginning of the year Fund balances — end of the year Grant Special General Revenue Total $ - $ 118,610 $ 118,610 118,610 118,610 2,914,460 - 2,914,460 1,771,588 110,610 1,882,198 27,253 8,000 35,253 7,009 - 7,009 225 - 225 4,720,535 118,610 4,839,145 (4,720,535) - (4,720,535) 4,916,800 - 4,916,800 (196,265) - (196,265) 4,720,535 - 4,720,535 See accompanying Notes to Financial Statements. 5 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual General Fund Year Ended September 30, 2023 Revenues Expenditures: General government: Personal services Operating Capital outlay Debt Service principal Debt Service interest Total expenditures Deficiency of expenditures over revenues Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations: Collier County, Florida Board of County Commissioners Total other financing sources Net change in fund balance Fund balance — beginning of the year Fund balance — end of the year Budget Original Final Variance With Final Budget _ Positive Actual (Negative) 3,060,700 3,053,200 2,914,460 138,740 1,826,100 1,833,600 1,771,588 62,012 30,000 30,000 27,253 2,747 - - 7,009 (7,009) - - 225 (225) 4,916,800 4,916,800 4,720,535 196,265 (4,916,800) (4,916,800) (4,720,535) 196,265 4,916,800 4,916,800 4,916,800 - - (196,265) (196,265) 4,916,800 4,916,800 4,720,535 (196,265) See accompanying Notes to Financial Statements. 6 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections' budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor's office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida (County) that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Annual Comprehensive Financial Report. There are no separate legal entities (component units) for which the SOE is considered to be financially accountable. The general operations of the Supervisor are funded by appropriations from the Board and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the general fund. The special revenue fund of the Supervisor is not budgeted and governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Annual Comprehensive Financial Report. 7 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds: General Fund — The general fund is used to account for the general operations of the Supervisor, and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund — The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. 9 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non -spendable fund balances as of September 30, 2023. Spendable fund balances are classified based on a hierarchy of the Supervisor's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor's fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements, and have been presented in the fund financial statements in accordance with Governmental Accounting Standards Board (GASB) Statement No. 54. Prepaid Items Prepaid items consist of certain costs which have been paid prior to the end of the fiscal year, but represent items which are applicable to future accounting periods. Reported amounts in governmental funds are classified as nonspendable fund balance, in the fund financial statements, which indicates that these amounts do not constitute "available spendable resources" even though they are a component of current assets. 10 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Adoption of New Accounting Pronouncements For the year ended September 30, 2023, the Supervisor of Elections adopted GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs). The primary objective of this statement is to establish a definition for SBITAs and provide uniform guidance for accounting and financial reporting for transactions that meet that definition. The Supervisor of Elections has not entered into any contracts that meet the criteria under this pronouncement for the 2023 fiscal year. 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor's annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor's total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- e n d . Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor does not budget for the grant special revenue fund as it is funded by state grants and is governed by those documents. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 11 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 3. Cash and Cash Equivalents At September 30, 2023, the carrying value of the Supervisor's cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand Demand deposits Total cash and cash equivalents Custodial Credit Risk $ 200 N/A 332,479 N/A $332,679 At September 30, 2023, the Supervisor's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. 12 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 3. Cash and Cash Equivalents (continued) Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the general fund of the Supervisor and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their acquisition value on the date received. The Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: Machinery and equipment Right -to -use leased equipment Total capital assets Less accumulated depreciation: October 1, September 30, 2022 Additions Deductions 2023 $ 1,026,441 $ 35,253 $ (7,964) $ 1,053,730 36,733 - - 36,733 1,063,174 35,253 (7,964) 1,090,463 Machinery and equipment (821,196) (92,295) 7,964 (905,527) Right -to -use leased equipment (11,888) (7,026) - (18,914) Total accumulated depreciation (833,084) (99,321) 7,964 (924,441) Total capital assets, net $ 203,090 $(64,068) $ - $ 166,022 13 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2022 Increase Deductions 2023 Accrued compensated absences $ 271,677 $ 178,314 $ (208,311) $ 241,680 Of these liabilities, approximately $207,845 is expected to be paid during the fiscal year ending September 30, 2023, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Supervisor are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer 14 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Background (continued) defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida. com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class — Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class — Members who hold specified elective offices in local government. Senior Management Service Class (SMSQ — Members in senior management level positions. Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55, if vested, or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. 15 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 16 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2023, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State - administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. SOE employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. 17 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) FRS Investment Plan (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the SOE. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 18 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor's contributions made to the plans during the years ended September 30, 2023, 2022 and 2021, were $257,126, $220,264, and $181,001 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's annual comprehensive financial report. 7. Related -Party Transactions For the year ended September 30, 2023, the Board provided funding for the Supervisor that amounted to $4,916,800. At September 30, 2023, the Supervisor had a payable due to the Board of $250,095 comprised as follows: Distribution of excess appropriations $ 196,265 Distribution of interest earnings 32,521 Amounts due for various services 21,309 Total due to Board of County Commissioners $ 250,095 8. Risk Management The County is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self- insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County's self-insurance program. During the year ended September 30, 2023, the Supervisor was charged $357,290 by the County for participation in the risk management program. 19 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 8. Risk Management (continued) The County retains the first $600,000 per claim for workers' compensation and has purchased excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5 percent wind deductible and a $100,000 deductible for all other perils. The County retains the first $300,000 per claim for general liability, public official errors and omissions, automobile liability, and crime coverage and has purchased excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -parry carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $1,000,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9.Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Supervisor participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 20 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2023 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor's grants. Transfers were not required for the year ending September 30, 2023. 21 Clifton LarsonAllen LLP PAW CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Melissa Blazier Supervisor of Elections Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of Collier County, Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Supervisor's basic financial statements, and have issued our report thereon dated December 8, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor's internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 22 Honorable Melissa Blazier Supervisor of Elections Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. ZZ->7;> CliftonLarsonAllen LLP Naples, Florida December 8, 2023 23 OPF Honorable Melissa Blazier Supervisor of Elections Collier County, Florida Report on the Financial Statements Clifton LarsonAllen LLP CLAconnect.com MANAGEMENT LETTER We have audited the financial statements of the Collier County, Supervisor of Elections (Supervisor) as of and for the fiscal year ended September 30, 2023 and have issued our report thereon dated December 8, 2023. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated December 8, 2023, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 24 Honorable Melissa Blazier Supervisor of Elections Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Supervisor, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 8, 2023 25 OPF Honorable Melissa Blazier Supervisor of Elections Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT We have examined Collier County, Supervisor of Elections (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2023. Management of the Supervisor is responsible for the Supervisor's compliance with the specified requirements. Our responsibility is to express an opinion on the Supervisor's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Supervisor complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Supervisor complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Supervisor's compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2023. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida December 8, 2023 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 26 Collier County, Tax Collet Financial Staten Supplemental l Year Ended Septem CPAs I CONSULTANTS I WEALTH ADVISORS C LAconnect.com Collier County, Florida Tax Collector Financial Statements and Other Reports Year Ended September 30, 2023 Contents IndependentAuditors' Report ..........................................................................................................1 Financial Statements BalanceSheet — General Fund......................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — General Fund.............................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — General Fund.............................................................................6 Statement of Fiduciary Net Position — Custodial Fund.................................................................7 Statement of Changes in Fiduciary Net Position - Custodial Fund..............................................8 Notesto Financial Statements.......................................................................................................9 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards..............................................26 ManagementLetter........................................................................................................................28 Independent Accountants' Report ..................................................................................................30 0 Honorable Rob Stoneburner Tax Collector Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida, Tax Collector (Tax Collector), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Tax Collector's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the remaining aggregate fund information of the Tax Collector as of September 30, 2023, and the respective changes in financial position and the budgetary comparison for the general fund for the year ended September 30, 2023, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Tax Collector and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Tax Collector referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the financial statements are intended to present the financial position and changes in financial position of only that portion of the general fund and the aggregate remaining fund information of Collier County, Florida that is attributable to the transactions of the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2023, and the changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer Honorable Rob Stoneburner Tax Collector As discussed in Note 11, effective October 1, 2022, the Tax Collector adopted GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This standard requires governments to recognize a right -to -use subscription -based information technology arrangement asset and corresponding subscription -based information technology arrangement liability for all arrangements with terms greater than 12 months. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 2 Honorable Rob Stoneburner Tax Collector Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2023, on our consideration of the Collier County, Florida, Tax Collector's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Tax Collector's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector's internal control over financial reporting and compliance. Clifton LarsonAllen LLP Naples, Florida December 14, 2023 Collier County, Florida Tax Collector Balance Sheet — General Fund September 30, 2023 Assets Cash and cash equivalents Accounts receivable Prepaid rent Prepaid expenditures Security deposit Total assets Liabilities and fund balance Liabilities: Accounts payable Due to Collier County, Florida Board of County Commissioners Due to other governmental agencies Other current liabilities Total liabilities Fund balance: Nonspendable Unassigned Total fund balance Total liabilities and fund balance See accompanying Notes to Financial Statements. $ 18,079,660 297 17,108 209,371 14,868 $ 18,321,304 $ 37,930 15,687,928 2,243,801 351,645 18,321,304 241,347 (241,347) $ 18,321,304 0 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2023 Revenues: Comnn scions and fees $ 31,654,258 Miscellaneous 763,912 Total revenues 32,418,170 Expenditures: General government: Personal services 14,569,876 Operating 1,853,809 Capital outlay 3,361,620 Debt service - principal 503,060 Debt service - interest 149,267 Total expenditures 20,437,632 Excess of revenues over expenditures 11,980,538 Other financing sources (uses): Subscription -based information technology arrangements 3,296,811 Distribution of excess coma fissions and fees to Collier County, Florida Board of County Commissioners (13,144,509) Distribution of excess commissions and fees to other governmental agencies (2,132,840) Total other financing sources (uses) (11,980,538) Net change in fiord balance - Fund balance, beginning of year - Fund balance, end of year $ - See accompanying Notes to Financial Statements. 5 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual General Fund Revenues: Commissions and fees Miscellaneous Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service - principal Debt service - interest Total expenditures Excess of revenues over expenditures Other financing sources (uses): Subscription -based information technology arrangements Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions and fees to other governmental agencies Total other financing sources (uses) Net change in fund balance Fund balance, beginning of year Fund balance, end ofyear Year Ended September 30, 2023 Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 27,812,060 $ 27,812,060 $ 31,654,258 $ 3,842,198 217,200 217,200 763,912 546,712 28,029,260 28,029,260 32,418,170 4,388,910 15,965,430 15,965,430 14,569,876 (1,395,554) 2,991,282 2,991,282 1,853,809 (1,137,473) 288,109 288,109 3,361,620 3,073,511 - - 503,060 503,060 - - 149,267 149,267 19,244,821 19,244,821 20,437,632 1,192,811 8,784,439 8,784,439 11,980,538 3,196,099 3,296,811 3,296,811 (7,558,061) (7,558,061) (13,144,509) (5,586,448) (1,226,378) (1,226,378) (2,132,840) (906,462) (8,784,439) (8,784,439) (11,980,538) (3,196,099) See accompanying Notes to Financial Statements. 0 Collier County, Florida Tax Collector Statement of Fiduciary Net Position Custodial Fund September 30, 2023 Assets Cash and cash equivalents Accounts receivable Due from other governmental agencies Total assets Liabilities Due to other governmental agencies Due to individuals and businesses Total liabilities Fiduciary Net Position See accompanying Notes to Financial Statements. $ 5,174,552 8,878 13,284 5,196,714 5,047,009 149,705 5,196,714 7 Collier County, Florida Tax Collector Statement of Fiduciary Net Position Custodial Fund September 30, 2023 Additions Tax Collections for Other Governments License and Fee Collections for Other Governments Miscellaneous Total Additions Deductions Payments of Tax to Other Governments Payments of Licenses and Fees to Other Governments Total Deductions Change in Fiduciary Net Position Fiduciary Net Position - Beginning of Year Fiduciary Net Position - End of Year See accompanying Notes to Financial Statements. $ 847,455,485 41,556,882 606,650 889,619,017 R 847,455,485 42,163,532 889,619,017 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section l(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector's operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector's office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector's financial statements include only the funds of the Tax Collector's office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida (the County) that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of the County in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the County's Annual Comprehensive Financial Report. These fund financial statements report detailed information about the Tax Collector. 0 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheets. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector's only governmental fund is the general fund. The general fund is used to account for the general operations of the Tax Collector and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days after year- end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Tax Collector's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the "susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of the County rather than in the governmental funds of the Tax Collector. 10 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Custodial funds — Fiduciary funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Custodial funds do not involve measurement of results of operations or have a measurement focus (assets equal liabilities). Custodial funds are accounted for using the accrual basis of accounting. Refund of "Excess Fees" Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use -transfer out in the accompanying financial statements. Compensated Absences On October 1, 2021, the Tax Collector's office transitioned from having two paid time off (PTO) policies (sick and vacation) to a single PTO policy. All full-time employees of the Tax Collector are allowed to accumulate a limited number of PTO hours (between 136 and 240 annually), depending on tenure. Any accrued hours from the discontinued sick policy were valued at the employees' September 30, 2021, rate of pay with multiple options for payout. First, employees with 800 or more accumulated sick hours could choose to exchange their first 800 hours for free health insurance until covered by Medicare. Secondly, all remaining employees could choose between 1) immediate 100% payout into their Section 457(b) upon satisfying budget and Internal Revenue Service contributions limitations or 2) up to 75% payout upon separation of service. Any accrued hours from the discontinued vacation policy were rolled into the new PTO policy. Upon separation of service, employees receive 1) 100% of accumulated PTO hours at their current rate of pay and 2) a percentage of unused sick leave hours (ranging from 0% to 75%, depending on years of service), valued at the employees' September 30, 2021, rate of pay. PTO and sick leave payments are included in the operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of the County. 11 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Florida Statutes, Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. Chapter 197, Florida Statutes, governs property tax collections as follows: Current Taxes All property taxes become due and payable on November 1 and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1% for payment in February. Unpaid Tares — Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. The Tax Collector must receive payment before the certificates are delivered. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tax Deeds Two years after the purchase of a tax certificate the owner may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. 12 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these financial statements requires management of the Tax Collector to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions In accordance with Governmental Accounting Standards Board Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, fund balances are classified as nonspendable or spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and internal constraints on the spending of these fund balances. These classifications are described as follows: The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in a spendable form, or (B) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash. As of September 30, 2023, the Tax Collector's General Fund reported a nonspendable fund balance of $241,347 for prepaid items. Spendable fund balances are classified as follows: Restricted fund balances are constrained for a specific purpose by creditors, grantors, contributors, laws or regulations, or through constitutional provisions or enabling legislation. Committed fund balances are constrained for a specific purpose imposed by a formal action of the Tax Collector's highest level of decision authority. Assigned fund balances are intended to be used for specific purposes, but which are neither restricted nor committed. Unassigned fund balances represent the residual fund balances that do not meet the other fund balance classification requirements. As of September 30, 2023, the Tax Collector's General Fund reported a negative unassigned fund balance of $241,347 since all excess fees are returned to the County and the General Fund reports a nonspendable fund balance for its prepaid items. 13 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector's annual budget. The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector's total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 3. Cash At September 30, 2023, the carrying value of the Tax Collector's cash was as follows: 2023 Type Carrying Value Cash on hand $ 32,967 Demand deposits 23,221,245 Total cash and cash equivalents $ 23,254,212 Such amounts are reported as $18,079,660 and $5,174,552 for 2023 in the general and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2023, the Tax Collector's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. 14 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 3. Cash (continued) Credit Risk The Tax Collector's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Tax Collector are capitalized in the basic financial statements of the County rather than in the governmental funds of the Tax Collector. Upon acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of the County. 15 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2023: Capital assets not depreciated: Construction in progress Total assets not depreciated Capital assets - depreciable: Infrastructure Improvements other than buildings Machinery and equipment Right -to -use leased building Right -to -use leased equipment Right -to -use SBITA equipment 1 Total depreciable capital assets Accumulated depreciation: Infrastructure Improvements other than buildings Machinery and equipment Total accumulated depreciation Accumulated amortization: Right -to -use leased building Right -to -use leased equipment Right -to -use SBITA equipment' Total accumulated amortization Total depreciable capital assets, net Total capital assets, net October1, Deletions/ September30, 2022 Additions Reclassifications 2023 $ 55,518 $ 38,646 $ (81,162) $ 13,002 55,518 38,646 (81,162) 13,002 6,117 - - 6,117 26,760 - - 26,760 1,385,749 26,163 (24,348) 1,387,564 1,894,005 - - 1,894,005 35,205 - - 35,205 - 3,296,811 - 3,296,811 3,347,836 3,322,974 (24,348) 6,646,462 (5,263) (854) (6,117) (26,760) - - (26,760) (1,017,508) (70,580) 46,300 (1,041,788) (1,049,531) (71,434) 46,300 (1,074,665) (280,631) (93,458) - (374,089) (14,749) (7,037) - (21,786) - (551,818) - (551,818) (295,380) (652,313) - (947,693) 2,002,925 2,599,227 21,952 4,624,104 $ 2,058,443 $ 2,637,873 $ (59,210) $ 4,637,106 1 The Tax Collector implemented GASB Statement No. 96 Subscription -Based Information Technology Arrangements (SBITAs) in Fiscal Year 2023. During the fiscal year ended September 30, 2023, equipment of $107,325 was transferred to the County. 16 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of the County: October 1, September 30, 2022 Increase Decrease 2023 Accrued compensated absences $ 570,308 $ 902,105 $ (1,054,366) $ 418,047 Of these liabilities, approximately $370,000 is expected to be paid during the fiscal year ending September 30, 2024, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. 17 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Background (continued) Essentially all regular employees of the Tax Collector are required to enroll as members of the State -administered FRS, except for some re-employed retirees. Provisions relating to the FRS are established by Chapters 121 and 123, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. The annual comprehensive financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. • Special Risk Administrative Support Class — Members who provide administrative support for a special risk employer. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55, if vested, or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. Special risk employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, and death benefits to eligible participants. Annual cost -of -living adjustments are limited to members initially employed before July 1, 2011. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 19 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 20 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2023, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. 21 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2023, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump - sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector's contributions made to the plans during the years ended September 30, 2023, 2022, and 2021 were $1,422,304, $1,156,878, and $992,718, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's financial statements. 22 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 7. Other Postemployment Benefits (OPEB) In accordance with Section 112.0801, Florida Statutes, the Tax Collector participates with the County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 8. Related Party Transactions During the fiscal year ended September 30, 2023, the Board paid commissions and fees to the Tax Collector that amounted to $23,617,138. At September 30, 2023, the Tax Collector had a payable due to the Board of $15,687,928 comprised as follows: 2023 Distribution of unused commissions and fees $ 13,303,392 Tax and fee collections due to the Board 2,384,620 Payable 844 Negative Distribution Receivable (928) Total $ 15,687,928 9. Risk Management The County is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. The Tax Collector participates in the County's self-insurance program. During the year ended September 30, 2023, the Tax Collector was charged $3,057,455 by the County for participation in the risk management program. 23 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 9. Risk Management (continued) The County retains the first $600,000 per claim for workers' compensation and has purchased excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5 percent wind deductible and a $100,000 deductible for all other perils. The County retains the first $300,000 per claim for general liability, public official errors and omissions, automobile liability and crime coverage and has purchased excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $750,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 - Leases. Detailed information about the Tax Collector's leases can be found in the County's financial statements. Leases entered into by the Tax Collector are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. 24 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2023 10. Commitments and Contingencies (continued) Leases (continued) During the year ended September 30, 2023, the Tax Collector did not enter into any new leases. During the year ended September 30, 2023, the Tax Collector's payments on leases totaled $108,048. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector. 11. Adoption of New Accounting Pronouncements During the year ended September 30, 2023, the Tax Collector adopted GASB Statement No. 96, Subscription -Based Information Technology Arrangements. This statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs). The primary objective of this statement is to establish a definition for SBITAs and provide uniform guidance for accounting and financial reporting for transactions that meet that definition. Detailed information about the Tax Collector's SBITAs can be found in the County's financial statements. SBITAs entered into by the Tax Collector are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the subscription terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2023, the Tax Collector's new SBITAs totaled $3,296,811 and total payments on SBITAs totaled $544,279. 25 0 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Rob Stoneburner Tax Collector Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida, Tax Collector (Tax Collector) as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Tax Collector's basic financial statements, and have issued our report thereon dated December 14, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector's internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 26 Honorable Rob Stoneburner Tax Collector Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Clifton LarsonAllen LLP Naples, Florida December 14, 2023 27 0 Honorable Rob Stoneburner Tax Collector Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Tax Collector (Tax Collector) as of and for the year ended September 30, 2023, and have issued our report thereon dated December 14, 2023. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated December 14, 2023 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings reported in the prior audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 28 Honorable Rob Stoneburner Tax Collector Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 14, 2023 29 0 Honorable Rob Stoneburner Tax Collector Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT We have examined the Collier County, Florida, Tax Collector (Tax Collector)'s compliance with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2023. Management of the Tax Collector is responsible for the Tax Collector's compliance with the specified requirements. Our responsibility is to express an opinion on the Tax Collector's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Tax Collector complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Tax Collector complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Tax Collector's compliance with specified requirements. In our opinion, the Tax Collector's complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; during the year ended September 30, 2023. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. Clifton LarsonAllen LLP Naples, Florida December 14, 2023 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer 30 Prepared under the supervision of: Crystal K. Kinzel Clerk of the Circuit Court and County Comptroller Prepared and edited by: Derek M. Johnssen, CPA Director of Finance CollierClerk.com COUNTy Fl • CENTENNIAL •