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Immokalee Fire District audit FY 161 B1 ,�,Mo►�LFF Immokalee Fire Control District *01% E E I I E 5368 Useppa Drive, Ave Maria, FL. 34142 Michael J. Choate, Fire Chief Ave Maria March 25, 2024 Mr. Derek Johnson, General Accounting Manager Clerk of the Circuit Court, Finance Department 3299 Tamiami Trail East, #403 Naples, FL 34112 Dear Mr. Johnson: Enclosed please a copy of the District's audit for the fiscal year ended 9-30-23. Please contact me if you have any questions or would like to receive an electronic copy of the audit. Very truly yours, BECKY BRONSDON Chief Financial Officer Enclosures Headquarters(239)657-2111 Fire Prevention(239)597-9227 Fax(239)657-9489 t6 B1 IMMOKALEE FIRE CONTROL DISTRICT BASIC FINANCIAL STATEMENTS TOGETHER WITH ADDITIONAL REPORTS YEAR ENDED SEPTEMBER 30,2023 16 I B "► TABLE OF CONTENTS Page(s) INDEPENDENT AUDITOR'S REPORT 1-4 MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-vii BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS: Statement of Net Position 5 Statement of Activities 6 FUND FINANCIAL STATEMENTS: Governmental Funds: Balance Sheet-Governmental Funds 7 Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Position 8 Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds 9 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds to the Statement of Activities 10 NOTES TO THE FINANCIAL STATEMENTS 11-54 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS(General and Special Revenue Funds) Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Summary Statement 55 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Detailed Statement 56-58 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-Impact Fee Fund-Summary Statement 59 OTHER REQUIRED SUPPLEMENTARY INFORMATION Schedule of District Proportionate Share of the Net Pension Liability-Florida Retirement System(FRS)Pension Plan 60 Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan 60 Schedule of District Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan 61 Schedule of District Contributions-Health Insurance Subsidy(HIS)Pension Plan 61 Notes to the Required Supplementary Information 62-63 Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No.75 and Related Notes to the Schedule 64 ADDITIONAL REPORTS Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards 65-66 Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes 67 Independent Auditor's Report to Management 68-70 Management's Response to Independent Auditor's Report to Management Exhibit 1 Florida Rules of the Auditor General-Rule 10.554(1)(i)6-8 Compliance-Unaudited Exhibit 2 1 a 161 B1 TI4 s cAN Affiliations Florida Institute of Certified Public Accountants Company, PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division INDEPENDENT AUDITOR'S REPORT Board of Commissioners Immokalee Fire Control District 5368 Useppa Dr. Ave Maria,Florida 34142 Opinions We have audited the accompanying financial statements of the governmental activities and each major fund of Immokalee Fire Control District(the"District")as of and for the year ended September 30,2023,and the related notes to the financial statements,which collectively comprise the District's basic fmancial statements as listed in the table of contents. Summary of Opinions Opinion Unit Type of Opinion Governmental Activities Unmodified General Fund Unmodified Impact Fee Fund Unmodified In our opinion,based on our audit and the report of other auditors,the financial statements referred to above present fairly,in all material respects,the respective fmancial position of the governmental activities and each major fund of Immokalee Fire Control District as of September 30,2023,and the respective changes in financial position,for the year then ended in accordance with accounting principles generally accepted in the United States of America. Matter of Emphasis During the year ended September 30,2023,the District implemented GASB Statement No.96"Subscription-based Information Technology Arrangements(SBITA's)"as further described in Note Q. The net position was not required to be restated as of October 1,2022. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District,and to meet our other ethical responsibilities,in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. We did not audit the financial statements of Florida Retirement Systems Pension Plan(FRS)or Health Insurance Subsidy Pension Plan(HIS)as of and for the year ended June 30,2023. The District is required to record its proportionate share of the FRS and HIS liability in the District's government-wide financial statements as of September 30,2023 and for the year then ended.Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion,insofar as it relates to the amounts included for Immokalee Fire Control District's government-wide financial statements,is based on the report of the other auditors. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design,implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907•Phone: (239)333-2090•Fax: (239)333-2097 t6 I Bi Board of Commissioners Immokalee Fire Control District Page 2 In preparing the financial statements,management is required to evaluate whether there are conditions or events, considered in the aggregate,that raise substantial doubt about the District's ability to continue as a going concern for twelve months beyond the financial statement date,including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error,and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion,forgery,intentional omissions,misrepresentations,or the override of internal control. Misstatements are considered material if there is a substantial likelihood that,individually or in the aggregate,they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error,and design and perform audit procedures responsive to those risks. Such procedures include examining,on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluate the overall presentation of the financial statements. • Conclude whether,in our judgment,there are conditions or events,considered in the aggregate,that raise substantial doubt about the District's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding,among other matters,the planned scope and timing of the audit,significant audit findings,and certain internal control-related matters that we identified during the audit. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages i-vii,Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS),Notes to the Required Supplementary Information and Schedule of Changes in the Total OPEB Liability and Related Ratios GASB No.75 and related Notes to the Schedule,as listed in the table of contents,be presented to supplement the basic fmancial statements. Such information,although not a part of the basic financial statements,is required by the Governmental Accounting Standards Board which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,economic,or historical context. We have applied certain limited procedures to the required supplementary information-management's discussion and analysis(MD&A),Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions- Florida Retirement System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability -Health Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension { n 11B1 Board of Commissioners Immokalee Fire Control District Page 3 Plan(HIS),Notes to the Required Supplementary Information and Schedule of Changes in the Total OPEB Liability and Related Ratios GASB No.75 and related Notes to the Schedule,as listed in the table of contents,in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the basic financial statements,and other knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any assurance on the required supplementary information- management's discussion and analysis(MD&A),Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS),Notes to the Required Supplementary Information and Schedule of Changes in the Total OPEB Liability and Related Ratios GASB No. 75 and related Notes to the Schedule,as listed in the table of contents,because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Required Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Immokalee Fire Control District's basic financial statements. The required supplementary information other than MD&A- budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The required supplementary information other than MD&A-budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the required supplementary information other than MD&A-budgetary comparison information is fairly stated,in all material respects,in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District's basic financial statements. The Exhibit 1-Management's Response to Independent Auditor's Report to Management and Exhibit 2-Florida Rules of the Auditor General-Rule 10.554(1)(i)6-8 Compliance-Unaudited are not a required part of the basic financial statements but are required by Government Auditing Standards and/or Rules of the Auditor General,Section 10.554(i),respectively. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and,accordingly,we do not express an opinion or provide any assurance on it. 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 Section 218.415,Florida Statutes In accordance with Section 218.415,Florida Statutes,we have also issued a report dated February 1,2024,on our consideration of Immokalee Fire Control District's compliance with provisions of Section 218.415,Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing,and to provide an opinion on compliance with the aforementioned Statute. That report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415,Florida Statutes in considering Immokalee Fire Control District's compliance with Section 218.415,Florida Statutes. 16181 Board of Commissioners Immokalee Fire Control District Page 4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated February 1,2024,on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,regulations,contract and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Immokalee Fire Control District's internal control over financial reporting and compliance. ilvaki/814/1) i 44411/4°1 / /11 • TUSCAN&COMPANY,P.A. Fort Myers,Florida February 1,2024 16IB1 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) 16IB1 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2023 General Information The Immokalee Fire Control District's (the "District") discussion and analysis is designed to assist the reader in focusing on significant financial issues, provide an overview of the District's financial activity, identify changes in the District's financial ability to address the next and subsequent fiscal years challenges, identify any material deviations from the approved budget, and identify individual fund issues and concerns. Management's Discussion and Analysis (MD&A) is intended to serve as an introduction to the District's basic financial statements which are composed of 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements, It is designed to focus on the current fiscal year's activities, resulting changes and currently known facts, and should be read in conjunction with the District's financial statements. Fiscal Year Highlights As expected, the District's financial position increased during the fiscal year ended September 30, 2022 by $1 ,753,527 substantially due to the use of impact fees in the amount of$1,253,069 and construction related grant income of$1,841,389. As expected, the District's financial position increased during the fiscal year ended September 30, 2023 by $209,688 substantially due to an increase in ad valorem tax revenue. Effective September 30, 2015, the District adopted the provisions of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions (Statement No. 68). The implementation of this standard required the District to annually report its actuarially determined net pension liability in the government-wide financial statements. It also requires additional disclosure in the notes related to the financial statements. Effective September 30, 2018, the District adopted the provisions of Governmental Accounting Standards Board Statement No. 75 "Accounting and Financial Reporting for Post Employment Benefits Other Than Pensions (OPEB)" (Statement No. 75). This accounting standard requires the District to annually report its actuarially determined net OPEB liability. 16IB1 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2023 Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District's finances in a manner similar to a private-sector business. The statements combine and consolidate governmental fund short-term spendable resources with capital assets and long-term obligations. The statements include a Statement of Net Position and a Statement of Activities that are designed to provide consolidated financial information about governmental activities of the District presented on the accrual basis of accounting. The Statement of Net Position presents information on all of the District's assets and liabilities, with the difference between the two reported as net position. Over time, the increases or decreases to net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The government-wide financial statements can be found on pages 5 and 6 of this report at September 30: 2022 2023 Assets: Current Assets $ 8,781,915 $ 6,568,462 Noncurrent Assets 19,542,073 23,630,892 Total Assets 28,323,988 30,199,354 Deferred Outflows of Resources 1,571,803 1,470,945 Liabilities: Accounts Payable and Other Current Liabilities 4,240,612 3,905,398 Unearned Revenue-impact fees 2,417,180 3,306,227 Noncurrent Liabilities 12,371,978 13,492,240 Total Liabilities 19,029,770 20,703,865 Deferred Inflows of Resources 449,208 339,933 Net Position: Net Investment in Capital Assets 9,181,660 13,273,534 Unrestricted Net Assets (Deficit) 1,235,153 (2,647,033) Total Net Position $10,416,813 $10,626.501 The Statement of Activities presents information showing how the District's net position changed during the fiscal years. The focus is on both gross and net costs of various activities that are supported by the District's ad valorem tax and other revenues. Thus, ii 16IB1 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2023 Government-wide Financial Statements (Continued) revenues and expenses are reported in this Statement for some items that will only result in cash flows in a future fiscal period (e.g. uncollected taxes earned). This Statement is intended to summarize and simplify the user's analysis of the cost of various governmental services. An increase or decrease in net position may be an indication of whether the District's financial health is improving or deteriorating. The following reflects the revenues, expenses and changes in financial position for the years ended September 30: 2022 2023 Revenues: Ad Valorem Taxes $ 4,987,520 $ 6,100,838 Interest Income 20,162 303,203 Grant Revenue 1,849,921 160,659 Impact Fees 1,253,069 1,414,108 Other Revenue 133,225 359,352 Total Revenue 8,243,897 8,338,160 Expenses Public Safety Expenses 6,490,370 8,128,472 Change in Net Position 1,753,527 209,688 Net Position — Beginning 8,663,286 10,416,813 Net Position - Ending of the fiscal year $ 10,416,813 $10.626,501 Both of the financial statements distinguish the functions of the District that are principally supported by ad valorem taxes and intergovernmental revenues. The governmental activities of the District are for public safety. General Revenues During fiscal year 2023, the District received $1,113,318 more in ad valorem tax dollars over the prior fiscal year due to an increase in assessable value of property within the District. This represents a 22% increase. During fiscal year 2022, the District received $333,550 more in ad valorem tax dollars over the prior fiscal year due to an increase in assessable value of property within the District. This represents a 7% increase. Grant revenue also increased $849,921 net over the prior fiscal year due principally to construction related grants. 16IB1 . Immokalee Fire Control District Management's Discussion and Analysis September 30, 2023 Government-wide Financial Statements (Continued) Expenses During the fiscal year of 2023 expenses increased by $1,638,102 vs. the prior fiscal year due to increases in personnel costs and debt service costs related to paying off the original Station 30 construction loan. During the fiscal year of 2022 expenses increased by $2,086,722 vs. the prior fiscal year due to increases in costs and depreciation expense on Station #32. These costs included an increase in personnel costs for the new station, pension liability, OPEB costs and interest expense related to debt service. Net Position During fiscal year 2023, net position increased by $209,688. During fiscal year 2022, net position increased by $1,753,527. Liabilities During the year ended September 30, 2023, the District entered 3 capital leases totaling $902,825 for a pumper truck, 1 officer vehicle and 1 service vehicle. The District also refinanced the construction loan for Station 30. During the year ended September 30, 2022, the District entered a capital leases of $61,330 for a staff vehicle, $2,301,929 for Station #32 (Ave Maria) and $3,000,000 for Station #30 (New Market Road). Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on the short-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Both the governmental fund balance sheet and the governmental fund statement of revenues, iv 16IB1 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2023 Governmental Funds (Continued) expenditures, and changes in fund balance provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The District maintains two governmental funds, the General Fund and the Special Revenue Fund for impact fees. Each fund's activity is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. These statements can be found on pages 7 and 9 of this report. Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements and can be found beginning on page 11 of this report. General Fund Budgetary Highlights The District adopts an annual appropriated budget for each of its governmental funds. The most significant original budget variance for the year ended September 30, 2023 was due to receipt of approximately $137,000 in ad valorem tax more than budgeted in unanticipated grant revenue. The actual expenditures in the General Fund were $2,735,939 less than the final amended budget. The actual expenditures were less than budget in general due to not having to use any reserves to cover expenditures. The District amended its original budget to adjust for the September 30, 2021 audit fund balance carryover and various other changes in anticipated revenues and expenditures. The District adopts an annual appropriated budget for each of its governmental funds. The most significant budget variance for the year ended September 30, 2022 was due to entering the capital lease for communication equipment. The actual expenditures in the General Fund were $5,667,814 less than the final amended budget. The actual expenditures were less than budget in general due to not having to use any reserves to cover expenditures. The significant difference between the original and final budget for the year ended September 30, 2022, was the adjustment of the carry forward to the prior year audited balance. V 16I81 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2023 Capital Assets The following is a schedule of the District's capital assets at September 30: Capital Assets September 30 2022 2023 Capital Assets not being depreciated: Land $ 390,256 $ 390,256 Construction in progress 2,564,661 6,508,106 Total Capital Assets not being depreciated 2,954,917 6,898,362 Capital Assets being depreciated: Buildings and building improvements 13,298,314 13,316,996 Machinery& equipment 2,664,664 2,309,079 Vehicles 3,951,660 4,840,528 Total Capital Assets being depreciated 19,914,638 20,466,603 Less: Accumulated Depreciation (3,327,482) (3,798,722) Capital Assets, being depreciated, net 16,587,156 16,667,881 Capital Assets, Net $ 19,542,073 $ 23,566,243 The District purchased capital assets during the year ended September 30, 2023 in the amount of$5,173,822 which consisted substantially of a new pumper truck, an officer vehicle and a service truck. The District purchased various equipment totaling $304,945. The District also incurred costs related to construction of the new Immokalee station (St 30) in the amount of$3,943,445. During the year ended September 30, 2022, the District purchased capital assets of $5,030,219 which consisted of construction in progress of$2,152,084 related to new stations, and $2,878,135 for a staff vehicle, a brush truck, a tanker and other equipment to outfit Station #32. vi 161B1 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2023 Long Term Liabilities The following is a summary of changes in long-term liabilities for the year ended September 30: 2022 2023 Net pension liability - FRS $ 4,248,721 $ 4,616,173 Net pension liability - HIS 704,672 1,099,842 Compensated absences 343,068 533,435 Capital leases 2,131,502 2,662,274 Net OPEB liability 291,263 266,641 Construction Loans 8,228,911 7,630,435 $ 15,948,137 '$ 16,808,800 During the year ended September 30, 2023, the District issued $2,700,000 in an additional construction loan to finish construction of Station #30. The District also entered 3 financing leases for a pumper truck, an officer vehicle and a service truck. During the year ended September 30, 2022, the District issued $5,301,929 in additional construction loans to continue construction of Stations #32 and #30. Station #32 was completed and placed in service during the year. Economic Factors and Next Year's Budget Rates The following were factors considered when next year's budget (2023-2024) was prepared: • The estimated property taxes increased by approximately $1,154,085 or 19% for budgeting purposes for 2024 as compared to 2023. The millage rate stayed consistent at 3.75 mills for the fiscal year ending September 30, 2024. The District plans to complete the construction of the New Market Road Fire Station #30 during FY 2024. Request for information This financial report is designed to provide the reader an overview of the District. Questions regarding any information provided in this report should be directed to: Immokalee Fire Control District, 5368 Useppa Drive, Ave Maria, Florida 34142, attention Becky Bronsdon, Chief Financial Officer, telephone (239) 657-2111. vii 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 5 of 70 STATEMENT OF NET POSITION September 30,2023 Governmental Activities ASSETS Current assets: Cash and cash equivalents $ 2,874,576 Restricted cash and cash equivalents 3,049,636 Investments 25,373 Investments-restricted 157,411 Due from other governments,including restricted amount of$179,311 254,940 Prepaid expenses 152,743 Right of use subscription asset,current 53,783 Total current assets 6,568,462 Noncurrent assets: Right of use subscription asset,net of current 64,649 Capital assets: Land 390,256 Construction in progress 6,508,106 Depreciable buildings,equipment and vehicles (net of$3,798,722 accumulated depreciation) 16,667,881 Total noncurrent assets 23,630,892 TOTAL ASSETS 30,199,354 DEFERRED OUTFLOWS OF RESOURCES 1,470,945 LIABILITIES • Current liabilities: Accounts payable 137,330 Accrued liabilities 27,513 Due to other governments - Unearned revenue-land easement 12,000 Unearned revenue-impact fees 3,306,227 Retainage payable 293,563 Current portion of long-term obligations 3,381,209 Right of use subscription liability,current 53,783 Total current liabilities 7,211,625 Noncurrent liabilities: Noncurrent portion of long-term obligations 13,427,591 Right of use subscription liability,net of current 64,649 TOTAL LIABILITIES 20,703,865 DEFERRED INFLOWS OF RESOURCES 339,933 NET POSITION Net investment in capital assets 13,273,534 Restricted - Unrestricted(deficit) (2,647,033) TOTAL NET POSITION(DEFICIT) $ 10,626,501 The accompanying notes are an integral part of this statement. 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 6 of 70 STATEMENT OF ACTIVITIES Year Ended September 30,2023 Governmental Activities EXPENSES Governmental Activities Public Safety-Fire Protection Personnel services $ 5,415,117 Operating expenses 1,222,826 Depreciation 1,147,565 Interest and fiscal charges 342,964 TOTAL EXPENSES-GOVERNMENTAL ACTIVITIES 8,128,472 PROGRAM REVENUES Charges for services - Operating/capital grants and contributions 160,659 TOTAL PROGRAM REVENUES 160,659 NET PROGRAM EXPENSES 7,967,813 GENERAL REVENUES Ad Valorem taxes 6,100,838 Impact fees 1,414,108 Interest 303,203 Gain on disposition of capital assets 24,155 Other financial assistance-CARES Act - Other 335,197 TOTAL GENERAL REVENUES 8,177,501 INCREASE(DECREASE) IN NET POSITION 209,688 NET POSITION(DEFICIT)-Beginning of year 10,416,813 NET POSITION(DEFICIT)-End of the year $ 10,626,501 The accompanying notes are an integral part of this statement. 16I81 IMMOKALEE FIRE CONTROL DISTRICT Page 7 of 70 BALANCE SHEET - GOVERNMENTAL FUNDS September 30,2023 Total General Impact Fee Governmental Fund Fund Funds ASSETS Cash and cash equivalents $ 2,874,576 $ - $ 2,874,576 Restricted cash and cash equivalents - 3,049,636 3,049,636 Investments 25,373 157,411 182,784 Due from other governments 75,629 179,311 254,940 Due from other funds 66,342 - 66,342 Prepaid expenditures 152,743 - 152,743 TOTAL ASSETS $ 3,194,663 $ 3,386,358 $ 6,581,021 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 135,541 $ 1,789 $ 137,330 Accrued liabilities 27,513 - 27,513 Due to other governments - - - Due to other funds - 66,342 66,342 Retainage payable 293,563 - 293,563 Unearned revenue-land easement - 12,000 12,000 Unearned revenue-impact fees - 3,306,227 3,306,227 TOTAL LIABILITIES 456,617 3,386,358 3,842,975 FUND BALANCE Nonspendable 152,743 - 152,743 Assigned 2,585,303 - 2,585,303 Unassigned - - - TOTAL FUND BALANCE 2,738,046 - 2,738,046 TOTAL LIABILITIES AND FUND BALANCE $ 3,194,663 $ 3,386,358 $ 6,581,021 The accompanying notes are an integral part of this statement. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 8 of 70 RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30,2023 Amount Total fund balance for governmental funds $ 2,738,046 Amounts reported for governmental activities in the statement of net position are different because: Right of use-subscription asset 118,432 118,432 Capital assets used in governmental activities are not financial resources and,therefore,are not reported in the governmental funds. Capital assets not being depreciated: Land 390,256 Construction in progress 6,508,106 6,898,362 Governmental capital assets being depreciated: Building,Equipment and Vehicles 20,466,603 Less accumulated depreciation (3,798,722) 16,667,881 Deferred outflows and deferred inflows related to pensions are applied to future periods and,therefore,are not reported in the governmental funds. Deferred outflows related to pensions 1,470,945 1,470,945 Deferred inflows related to pensions (339,933) (339,933) Right of use-subscription liability (118,432) (118,432) Long-term liabilities are not due and payable in the current period and,therefore,are not reported in the governmental funds. Net pension liability-FRS (4,616,173) Net pension liability-HIS (1,099,842) Capital leases (2,662,274) Construction loan (7,630,435) Compensated absences (533,435) Net OPEB liability (266,641) (16,808,800) Elimination of interfund amounts: Due from other funds 66,342 Due to other funds (66,342) Total net position(deficit)of governmental activities $ 10,626,501 The accompanying notes are an integral part of this statement. 161 Bi IMMOKALEE FIRE CONTROL DISTRICT Page 9 of 70 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Year Ended September 30,2023 Impact Total General Fee Governmental Fund Fund Funds REVENUES Ad Valorem taxes $ 6,100,838 $ - $ 6,100,838 Intergovernmental revenues: Federal public safety grants-CDBG 158,139 - 158,139 State public safety grants - - - Other grants - - - State firefighter supplemental 2,520 - 2,520 Fees: Inspection fees - - - Impact fees - 1,414,108 1,414,108 Miscellaneous: Interest 200,514 102,689 303,203 Other 335,197 - 335,197 TOTAL REVENUES 6,797,208 1,516,797 8,314,005 EXPENDITURES Current Public safety Personnel services 4,495,167 - 4,495,167 Operating expenditures 1,143,017 79,809 1,222,826 Capital outlay 4,361,815 812,007 5,173,822 Debt service Principal reduction 3,237,808 432,721 3,670,529 Interest and fiscal charges 150,704 192,260 342,964 TOTAL EXPENDITURES 13,388,511 1,516,797 14,905,308 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (6,591,303) - (6,591,303) OTHER FINANCING SOURCES(USES) Proceeds from issuance of financing lease 123,067 - 123,067 Proceeds from disposition of capital assets 26,242 - 26,242 Proceeds from issuance of construction loans 3,479,758 - 3,479,758 TOTAL OTHER FINANCING SOURCES(USES) 3,629,067 - 3,629,067 NET CHANGE IN FUND BALANCE (2,962,236) - (2,962,236) FUND BALANCE-Beginning of the year 5,700,282 - 5,700,282 FUND BALANCE-End of the year $ 2,738,046 $ - $ 2,738,046 The accompanying notes are an integral part of this statement. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 10 of 70 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended September 30,2023 Amount Net change(excess of revenues over(under)expenditures) in fund balance-total governmental funds $ (2,962,236) The decrease(change)in net position reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlays as expenditures. However,in the Statement of Activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Plus:Expenditures for capital assets 5,173,822 Less:proceeds from disposition of capital assets (26,242) Plus:gain on disposition of capital assets 24,155 Less: current year depreciation (1,147,565) 4,024,170 The issuance of debt is reported as a financing source in governmental funds and thus contributes to the change in fund balance. In the Statement of Net Position,however,issuing debt increases long-term liabilities and does not affect the Statement of Activities. Similarly,repayment of principal is an expenditure in the governmental funds but reduces the liability in the Statement of Net Position. Proceeds from issuance of capital lease (902,825) Proceeds from issuance of construction loans (2,700,000) Repayments(principal retirement)for capital leases 372,053 Repayments(principal retirement)for construction loan 3,298,476 67,704 Some expenses 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. Increase(decrease)in deferred outflows-Pensions (100,858) (Increase)decrease in deferred inflows-Pensions 109,275 (Increase)decrease in net pension liability-FRS (367,452) (Increase)decrease in net pension liability-HIS (395,170) (Increase)decrease in compensated absences,net (190,367) (Increase)decrease in net OPEB liability 24,622 (919,950) Increase(decrease)in net position of governmental activities $ 209,688 The accompanying notes are an integral part of this statement. 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 11 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Immokalee Fire Control District(the "District"), is an independent special district established on May 3, 1955 by Laws of Florida, Chapter 55-30666, as amended. The District has the general and specific powers prescribed by Florida Statutes Chapters 189, 633 and Chapter 191. Laws of Florida, Chapter 2000-393 codified, reenacted, amended and repealed its prior enabling acts. Also, as a result of Laws of Florida, Chapter 2000-393, the District's name was changed from Immokalee Fire Control and Rescue District to Immokalee Fire Control District. Laws of Florida, Chapter 2001-330 amended Laws of Florida, Chapter 2000-393 and authorized the District to levy impact fees on new construction within the District. During January 2012,the voters within the District passed a referendum increasing the District's millage cap from 3 mills to 3.75 mills effective for the year ended September 30, 2013 and thereafter. The District was created for the purpose of providing fire control and protection services as well as crash and rescue services for a designated area in eastern Collier County. The District operates three (3) station houses and has approximately 37 employees including part-time employees plus five (5) Commissioners. The District is governed by an elected five (5) member Board of Commissioners serving staggered four(4) year terms. Summary of Significant Accounting Policies The following is a summary of the significant accounting policies used in the preparation of these basic financial statements. Reporting Entity The District adheres to Governmental Accounting Standards Board (GASB) Statement Number 14, "Financial Reporting Entity" (GASB 14), as amended by GASB Statement Number 39, "Determining Whether Certain Organizations Are Component Units" (GASB 39) and GASB Statement Number 61, "The Financial Reporting Entity: Omnibus -An Amendment of GASB Statements No. 14 and No. 34" (GASB 61). These statements require the basic financial statements of the District(the primary government)to include its component units, if any. A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable. Based on the criteria established in GASB Statement No. 14, as amended, there are no component units required to be included or included in the District's basic financial statements. 1 6 I B 1 IMMOKALEE FIRE CONTROL DISTRICT Page 12 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED The basic financial statements of the District are comprised of the following: - Government-wide financial statements - Fund financial statements -Notes to the financial statements During the year ended September 30, 2022,the District adopted GASB Statement No. 87 - Leases (GASB 87). The District, however, determined its current lease agreements to be immaterial, therefore, do not meet the recording criteria of GASB 87 at September 30, 2023. Government-wide Financial Statements The government-wide financial statements (i.e.,the Statement of Net Position and the Statement of Activities) report information on all of the activities of the District and do not emphasize fund types. These governmental activities comprise the primary government. General governmental and intergovernmental revenues support the governmental activities. The purpose of the government-wide financial statements is to allow the user to be able to determine if the District is in a better or worse financial position than the prior year. The effect of all interfund activity between governmental funds has been removed from the government-wide financial statements. Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting,revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement Number 33, "Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33). Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability in the government-wide financial statements, rather than as expenditures. 16I B1 IMMOKALEE FIRE CONTROL DISTRICT Page 13 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Government-wide Financial Statements, continued The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital improvements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Program revenues are considered to be revenues generated by services performed and/or by fees charged such as inspection fees. Since the year ended September 30, 2018, the District has contracted another fire district to perform all fire inspections within the Immokalee Fire Control District. As such,the contracted District was entitled to all fire inspection fee revenues. Capital grant revenues are grants from other governmental entities restricted for the purchase of specific capital assets. Fund Financial Statements The District adheres to GASB Statement Number 54, "Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54). The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity or retained earnings, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the Districts governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds, in aggregate, for governmental funds. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 14 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Governmental Funds When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid first from restricted resources, as appropriate, and then from unrestricted resources. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. The District's major funds are presented in separate columns on the governmental fund financial statements. The definition of a major fund is one that meets certain criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments" (GASB 34). The funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a single column on the governmental fund financial statements. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported in separate columns on the fund financial statements. Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures, or expenses, are recognized in the accounts and reported in the basic financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government-wide financial statements are reported 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. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 15 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Measurement Focus and Basis of Accounting, continued Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period and soon enough thereafter to pay liabilities of the current period. For this purpose,the District considers tax revenues to be available if they are collected within sixty days of the end of the current fiscal period. Revenues susceptible to accrual are property taxes, interest on investments, and intergovernmental revenues. Property taxes are recorded as revenues in the fiscal year in which they are levied,provided they are collected in the current period or within sixty days thereafter. Interest on invested funds is recognized when earned. Intergovernmental revenues that are reimbursements for specific purposes or projects are recognized when all eligibility requirements are met. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) principal and interest on the long-term debt, if any,which is recognized when due; and (2) expenditures are generally not divided between years by the recording of prepaid expenditures. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Separate financial statements are provided for governmental funds. Non-current Government Assets/Liabilities GASB 34 requires non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as notes payable and capital leases,to be reported in the governmental activities column in the government-wide Statement of Net Position. 16IBi IMMOKALEE FIRE CONTROL DISTRICT Page 16 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Major Funds The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the District, except those required to be accounted for in the Impact Fee Fund. The Impact Fee Fund consists of fees imposed and collected by Collier County based on new construction within the District. The fees are restricted and can only be used for certain capital expenditures and/or the related debt associated with growth within the District. Budgetary Information The District has elected to report budgetary comparison of major funds as required supplementary information (RSI). Investments The District adheres to the requirements of Governmental Accounting Standards Board (GASB) Statement Number 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools" (GASB 31), in which all investments are reported at fair value. Capital Assets Capital assets, which include land, construction in progress, buildings, equipment and machinery and vehicles are reported in the government-wide financial statements in the Statement of Net Position. The District follows a capitalization policy which calls for capitalization of all fixed assets that have a cost or donated value of$2,000 or more and have a useful life in excess of one year. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 17 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Capital Assets, continued All 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 estimated fair market value on the date donated. Public domain (infrastructure) capital assets consisting of certain improvements other than building, including curbs, gutters and drainage systems, are not capitalized, as the District generally does not acquire such assets. No debt-related interest expense is capitalized as part of capital assets in accordance with GASB 34. Maintenance, repairs and minor renovations are not capitalized. The acquisition of land and construction projects utilizing resources received from Federal and State agencies are capitalized when the related expenditure is incurred. Expenditures that materially increase values, change capacities, or extend useful lives are capitalized. Upon sale or retirement, the cost is eliminated from the respective accounts. Expenditures for capital assets are recorded in the fund statements as current expenditures. However, such expenditures are not reflected as expenses in the government-wide statements, but rather are capitalized and depreciated. Depreciable capital assets are depreciated using the straight-line method over the following estimated useful lives: Asset Years Buildings 30 Equipment and Machinery 3-20 Vehicles 4-10 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 18 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and Budgetary Accounting The District has adopted an annual budget for the General Fund. The District has also adopted an annual budget for its Special Revenue Fund,the Impact Fee Fund. The District follows these procedures in establishing budgetary data for the General Fund and the Impact Fee Fund: 1. During the summer of each year,the District Fire Chief submits to the Board of Commissioners a proposed operating budget for the fiscal year commencing on the upcoming October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is adopted by approval of the Board of Commissioners. 4. Budget amounts, as shown in these financial statements, are as originally adopted or as amended by the Board of Commissioners. 5. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America. 6. The level of control for appropriations is exercised at the fund level. 7. Appropriations lapse at year-end. The District did amend the General Fund budget during the year ended September 30, 2023 in the amount of$4,369,661. The District did amend the Impact Fee Fund budget during the year ended September 30, 2023 in the amount of$422,893. 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 19 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Impact Fees/Deferred Revenue Through an inter-local agreement, the District levies an impact fee on new construction within the District. The intent of the fee is for growth within the District to pay for capital improvements needed due to the growth. The fee is collected by Collier County and is remitted to the District. The fee is refundable if not expended by the District within a reasonable period from the date of collection. The District, therefore, records this fee as restricted cash and as deferred revenue until the date of expenditure, at which time it is recognized as revenue and charged to capital outlay in the fund financial statements and capital assets in the government-wide financial statements. Due To/From Other Funds Interfund receivables and payables arise from interfund transactions and are recorded in the fund statements by funds affected in the period in which transactions are executed. Due From Other Governments No allowance for losses on uncollectible accounts has been recorded since the District considers all amounts to be fully collectible. Compensated Absences The District's employees accumulate annual leave, based on the number of years of continuous service. Upon termination of employment, employees can receive payment of accumulated annual leave, if certain criteria are met. The costs of sick, vacation and personal leave benefits (compensated absences) are expended in the respective operating funds when payments are made to employees. However, the liability for all accrued sick,vacation and personal leave benefits is recorded in the government-wide Statement of Net Position. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because, at present, it is not necessary in order to assure effective budgetary control or to facilitate effective cash planning and control. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 20 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Net Position In the government-wide financial statements, no net position has been identified as restricted. Restricted net position reflects those net assets that have constraints as to their use externally imposed by creditors,through debt covenants, by grantors, or by law. Fund Balances The governmental fund financial statements the District maintains may include nonspendable, restricted, committed, assigned and unassigned fund balances. Nonspendable fund balances are those that cannot be spent because they are either (a) not in spendable form or(b) legally or contractually required to be maintained intact. Criteria include items that are not expected to be converted into cash, for example prepaid expenses. Restricted fund balance consists of amounts that can be spent only on specific purposes stipulated by constitutional provisions or enabling legislation or externally imposed by creditors, grantors, contributors, or laws or regulations of other governments. The District maintained no restricted fund balances at September 30, 2023. Committed fund balance consists of amounts that represent resources whose use is constrained by limitations the Board(highest decision making) imposes upon itself. These constraints made by the Board remain binding unless removed in the same manner. The District maintained no committed fund balance at September 30, 2023. 16 { B1 IMMOKALEE FIRE CONTROL DISTRICT Page 21 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Balances, continued Assigned fund balance represents the portion of fund balance that reflects the District's intended use of resources. Such intent can only be established by the Board. The District maintained assigned fund balance for various uses at September 30, 2023. The Board's minimum fund balance policy is to maintain not less than three (3) months budgeted expenditures in assigned fund balance as well as other specifically assigned amounts. Unassigned fund balance is the portion of fund balance representing resources in excess of what can properly be classified in one of the other categories. Interfund Transactions The District considers interfund receivables (due from other funds) and interfund liabilities (due to other funds)to be loan transactions to and from other funds to cover temporary (three months or less) cash needs. Transactions that constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund are recorded as expenditures in the reimbursing funds and as reduction of expenditures in the fund that is reimbursed. Pensions In the government-wide Statement of Net Position, liabilities are recognized for the District's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) and the Health Insurance Subsidy (HIS) defined benefit plans and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments, (including refunds of employees contributions) are recognized when due and payable in accordance with the benefit terms. The District's retirement plans and related amounts are described in a subsequent note. 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 22 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING New Accounting Guidance GASB 94:Public-Private and Public-Public Partnerships and Availability Payment Arrangements In March 2020,the GASB issued Statement No. 94 (Public-Private and Public- Public Partnerships and Availability Arrangements) to bring a uniform guidance on how to report public-private and public-public partnership arrangements, will recognize receivables for installment payments, deferred inflows of resources, and,when applicable, capital assets. Operators will recognize liabilities for installment payments and intangible right-to-use assets, and when applicable, deferred outflows of resources and liabilities for assets being transferred. This Statement also provides guidance for accounting and financial reporting for availability payment arrangement in which a government compensates an operator for services such as designing, constructing, financing, maintaining, or operating an underlying asset for a period of time in an exchange or exchange-like transaction. The provisions of this Statement are effective for the District's financial statements for the year ended September 30, 2023. The District, however, had no arrangements that met this Statement's reporting criteria and/or the related arrangement costs were considered immaterial. GASB 96: Subscription-Based Information Technology Arrangements (SBITAs) In May 2020, the GASB issued Statement No. 96 (Subscription-Based Information Technology Arrangements (SBITAs)), which defined the SBITAs and provides accounting and financial reporting for SBITAs by governments. This Statement requires a government to recognize a subscription liability and an intangible right-to-use subscription asset for the SBITAs. The provisions of this Statement are effective for the District's financial statements for the year ended September 30, 2023. The District had arrangements that met this Statement's reporting criteria and have reported them as subscription right of use asset and liability, respectively, on the Government-Wide financial statements. For further discussion see Note Q. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 23 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Deferred Outflows/Inflows of Resources In addition to assets,the Statement of Net Position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred amount on pensions is reported in the government-wide Statement of Net Position. The deferred outflows of resources related to pensions and OPEB are discussed in a subsequent note. In addition to liabilities, the Statement of Net Position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The deferred amount on pensions and OPEB is reported only in the government-wide Statement of Net Position. A deferred amount on pensions and OPEB results from the difference in the expected and actual amounts of experience, earnings, and contributions. This amount is deferred and amortized over the service life of all employees that are provided with benefits through the plans except earnings which are amortized over five to seven years. Subsequent Events Subsequent events have been evaluated through February 1, 2024, which is the date the financial statements were available to be issued. NOTE B- CASH AND CASH EQUIVALENTS At September 30, 2023, cash and cash equivalents were $5,924,212, which included unrestricted cash of$2,874,576 in the General Fund and restricted cash of $3,049,636, which was held in the Impact Fee Fund. Restricted cash is comprised of impact fees which are restricted for capital asset acquisition and/or improvement due to growth within the District. 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 24 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED Deposits The District's deposit policy allows deposits to be held in demand deposit or money market accounts and other investments per Florida Statutes, Chapter 218.415(17). All District deposits were held in a financial institution designated as a qualified depository by the State Treasurer. At September 30, 2023,the carrying amounts of the District's deposits were $2,874,576 and $3,049,636 in the General Fund and the Impact Fee Fund, respectively. At September 30, 2023, bank balances were $2,994,568 and $3,056,344 in the General Fund and Impact Fee Fund, respectively. These deposits were entirely insured by federal depository insurance or by collateral pursuant to the Public Depository Security Act(Florida Statute 280) of the State of Florida. NOTE C - INVESTMENTS Florida Statutes and the District's investment policy authorize investments in the Florida Fixed Income Trust(FL FIT). Specifically, the District's investment policy is consistent with Florida Statutes, Chapter 218.415(17). At September 30, 2023,the District's investments in the FL FIT-Cash Pool (CP) consist of the following: Fair Value(NAV)/ Cost Carrying Basis Amount General Fund Florida Fixed Income Trust FL FIT-Cash Pool(CP) $ 25,373 $ 25,373 Total investments-General Fund $ 25,373 $ 25,373 Impact Fee Fund Florida Fixed Income Trust FL FIT-Cash Pool(CP) $ 157,411 $ 157,411 Total investments-Impact Fee Fund $ 157,411 $ 157,411 The Florida Fixed Income Trust(FL FIT) Cash Pool (CP)was established in accordance with Florida Statute 163.01 to provide local and state government entities access to diversified, high credit quality strategies for their cash reserves. The Florida Fixed Income Trust(FL FIT) Cash Pool is a floating net asset value (NAV)pool, managed to dollar-in/dollar-out and provides same day liquidity for participants. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 25 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE C - INVESTMENTS, CONTINUED The Florida Fixed Income Trust(FL FIT) Cash Pool (CP) is an external 2a7-like investment pool,which is self administered. The Florida Fixed Income Trust(FL FIT) Cash Pool (CP) is not categorized as it is not evidenced by securities that exist in physical or book entry form. The Florida Fixed Income Trust(FL FIT) Cash Pool are stated at fair value, as provided by paragraph 11 of GASB Statement#31. These investments are subject to the risk that the market value of an investment, collateral protecting a deposit or securities underlying an investment will decline and lose value. The Pool is not SEC registered. FL FIT is not required to register(and has not registered)with the SEC; however, the fund is an external investment pool that has historically adopted operating procedures consistent with those required by Florida Statutes. The District's investment in the Florida Fixed Income Trust(FL FIT) Cash Pool (CP) represented approximately less than 1% of the Fund's total investments. At September 30, 2023, the Cash Pool's investments consisted of the following: 48% with commercial paper; 23%with institutional money market deposits and mutual funds; and 29%with certificates of deposit. These short-term investments are stated at fair value. Investment income is recognized as earned and is allocated to participants of the Fund based on their equity participation. The District adheres to GASB Statement No. 79 and where the Fund meets the criteria to make GASB Statement No. 31 disclosures which are required related to its FL FIT Cash Pool investment: Limitation on Participant Contributions and Withdrawals: FL FIT-Cash Pool has no limitations or restrictions on participant withdrawals, does not charge liquidity fees, and has not put in place a redemption gate. Each participant has the ability to withdraw 100 percent of its account balance any business day that the Investment Advisor is open for trading. The Investment Advisor is open for trading, and the funds will settle on the trading date for trades placed prior to 2:00 PM Eastern Time, and trade date plus one business day(T+1)for trades placed after 2:00 PM Eastern Time. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 26 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE C - INVESTMENTS, CONTINUED Investment Income, Unrealized Gains/Losses, and Realized Gains/Losses: FL FIT-Cash Pool follows industry practice and records security transactions on a trade date basis. Dividend and interest income is recognized on an accrual basis. Net investment income is distributed to participants at least monthly. Unrealized and realized gains and losses, if any, are distributed to participants on a daily and monthly basis. Distributions to participants are recorded on the ex-dividend date. Valuation: Fair value of the investments in the FL FIT-Cash Pool is determined on a daily basis. Fair value increases and decreases are included in the change in unrealized gains and losses during the period. Net realized gains and losses on sales of securities are computed based on specific identification. Mutual fund securities are recorded at fair value as determined by using net position value as furnished by a pricing service and the number of shares owned. Redemption Gates: Per the Administrator there are no redemption gates. Liquidity Fees: Per the Administrator there are no liquidity fees. Redemption Fees: 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. Fair Value: The carrying value of the investments held by the District approximate fair value. However, it is the opinion of the management of Florida Fixed Income Trust(FL FIT)it is exempt from GASB Statement No.72 financial hierarchy disclosures. Foreign Currency Risk: Florida Fixed Income Trust(FL FIT) Cash Pool is not exposed to foreign currency risk during the year ended September 30,2023. Securities Lending: Florida Fixed Income Trust(FL FIT)Cash Pool did not participate in securities lending program during the period October 1,2022 through September 30,2023. Florida Fixed Income Trust(FL FIT) Cash Pool does provide separate audited financial statements for the year ended June 30, 2023. At September 30, 2023, the District reported Florida Fixed Income Trust(FL FIT) Cash Pool investments of$182,784. The Florida Fixed Income Trust(FL FIT) Cash Pool carried a credit rating of AAAf/S1 by Fitch Rating and had a dollar weighted average days to maturity (WAM) of 23 days at September 30, 2023. The Florida Fixed Income Trust(FL FIT) Cash Pool weighted average days to final maturity (WAL)was 94 days at September 30, 2023. The Cash Pool's duration is as follows: expected target duration 0-.5 years; effective duration of.063 years. Rule 2a7 allows funds to use a constant of$1.00 per share. • 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 27 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE D - DUE TO/FROM OTHER GOVERNMENTS Due from other governments at September 30, 2023, are as follows: Description General Fund Collier County Tax Collector $ 69,479 Other governments 6,150 75,629 Impact Fee Fund Collier County BOCC-Impact fees 179,311 $ 254,940 Management of the District believes the due from other governments amounts to be fully collectible. NOTE E - DUE TO/FROM OTHER FUNDS Interfund receivables and payables at September 30, 2023, are as follows: Due From Due To Other Funds Other Funds General Fund: Impact Fee $ 66,342 $ - Total General Fund 66,342 - Special Revenue Fund: Impact Fee: General - 66,342 Total Special Revenue Fund - 66,342 Total $ 66,342 $ 66,342 Interfund receivables and payables were eliminated for presentation purposes in the Statement of Net Position at September 30, 2023. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 28 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE F - CAPITAL ASSETS ACTIVITY The following is a summary of changes in capital assets activity for the year ended September 30, 2023: Balance Balance October 1 Increases/ Decreases/ Adjustments/ September 30 2022 Additions Deletions Reclassifications 2023 Capital Assets Not Being Depreciated: Land $ 390,256 $ - $ - $ - $ 390,256 Construction in Progress 2,564,661 3,943,445 - - 6,508,106 Total Capital Assets Not Being Depreciated 2,954,917 3,943,445 - - 6,898,362 Capital Assets Being Depreciated: Buildings 13,298,314 18,682 - - 13,316,996 Equipment&Machinery 2,664,664 304,945 (660,530) - 2,309,079 Vehicles 3,951,660 906,750 (17,882) - 4,840,528 Total Capital Assets Being Depreciated 19,914,638 1,230,377 (678,412) - 20,466,603 Less Accumulated Depreciation: Buildings (754,850) (439,978) - - (1,194,828) Equipment&Machinery (1,341,677) (277,043) 660,530 - (958,190) Vehicles (1,230,955) (430,544) 15,795 - (1,645,704) Total Accumulated Depreciation (3,327,482) (1,147,565) 676,325 - (3,798,722) Total Capital Assets Being Depreciated,Net 16,587,156 82,812 (2,087) - 16,667,881 Capital Assets,Net $19,542,073 $4,026,257 $ (2,087) $ - 23,566,243 Related debt (10,292,709) Net investment in capital assets $13,273,534 Depreciation expense was charged to the following functions during the year ended September 30, 2023: Amount General Government $ 1,147,565 Total Depreciation Expense $ 1,147,565 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 29 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE F- CAPITAL ASSETS ACTIVITY, CONTINUED The District has capital assets held under financing leases with a total cost of$3,700,117 at September 30,2023.The capital assets held under financing lease had accumulated depreciation of$1,011,170 and depreciation expense of$391,787 as of and for the year ended September 30,2023. NOTE G • LONG-TERM LIABILITIES The following is a summary of changes in long-term liabilities for the year ended September 30, 2023: Balance Balance Amounts October 1 Retirements/ September 30 Due Within 2022 Additions Adjustments 2023 One Year Net pension liability-FRS $ 4,248,721 $ 367,452 $ - $ 4,616,173 $Net pension liability-HIS 704,672 395,170 - 1,099,842 - Financing lease-2 vehicles 10,167 - (10,167) - - Financing lease-BC Expedition - 38,028 (8,929) 29,099 8,929 Financing lease-F250 - 85,039 (16,349) 68,690 16,349 Financing lease-pumper 536,705 - (82,231) 454,474 85,679 Financing lease-radios 148,304 - (34,245) 114,059 36,067 Financing Lease-ladder truck 1,081,800 - (122,608) 959,192 126,017 Financing Lease-tanker truck 302,626 - (17,143) 285,483 17,740 Financing lease-vehicle 51,900 - (11,637) 40,263 9,924 Financing lease-Pierce pumper - 779,758 (68,744) 711,014 70,648 Construction loan(Sta 32) 5,228,911 - (298,476) 4,930,435 309,856 Construction loan(Sta 30) 3,000,000 - (3,000,000) - - Construction loan(Sta 30) - 2,700,000 - 2,700,000 2,700,000 Compensated Absences 343,068 190,367 - 533,435 Net OPEB Liability 291,263 - (24,622) 266,641 - $15,948,137 $ 4,555,814 $(3,695,151) $ 16,808,800 $ 3,381,209 The following is a summary of the long-term obligations at September 30, 2023: Amount Net pension obligation-FRS pension plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida Retirement Plan. $ 4,616,173 Net pension obligation-HIS plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida Retirement Plan. 1,099,842 The District entered into a five year$89,857 financing lease agreement.Monthly payments are$1,654 and are interest free.Payments began on March 20,2018 with a final payment due February 20,2023.The lease was collateralized by the respective two vehicles. This lease was paid in full during the year ended - September 30,2023. The District entered into a six year$38,028 financing lease agreement.Annual payments are$8,929 and are interest free.Payments began on May 31.2022 with a final payment due May 31,2027.The lease is collateralized by the vehicle. 29,099 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 30 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE G- LONG-TERM LIABILITIES, CONTINUED The District entered into a six year$85,039 financing lease agreement.Annual payments are$16,349 and are interest free.Payments began on October 31.2022 with a final payment due October 31,2027.The lease is collateralized by the vehicle. 68,690 The District entered into a eight year$764,074 financing lease agreement.Annual payments are$104,731 including fixed interest of 4.19%.Payments began on January 7,2020 with a final payment due January 7,2027.The lease agreement is collateralized by the respective pumper truck. 454,474 The District entered into a seventy-five(75)month$231,713 financing lease agreement. Initial payment of$23,171,then six(6)annual payments of$42,135 including fixed interest of 5.32%.Payments began on October 1,2019 with a final payment due October 1,2025.The lease is collateralized by the respective radio equipment. 114,059 The District entered into a ten(10)year$1,315,897 financing lease agreement. Annual payments are$152,682 including fixed interest of 2.78%. Payments began on June 20,2021 with a fmal payment due on April 20,2030.The lease is collateralized by the respective ladder truck. 959,192 The District entered into a fifteen(15)year$319,193 fmancing lease agreement. Annual payments are$27,675 including fixed interest of 3.48%. Payments began on October 19,2021 with a final payment due on October 19,2035.The lease is collateralized by the tanker truck. 285,483 The District entered into a six year$61,330 financing lease agreement.Annual payments are$11,791 including interest at 4.4%.Payments began on May 10,2022 with a final payment due May 10,2027.The lease is collateralized by the respective vehicle. 40,263 The District entered a$5,500,000 loan March 2,2020 to fund the construction of Station 32.The loan is payable in one hundred eighty(180)payments of principal and interest of$38,388 beginning October 21,2022.The loan matures March 2,2026. Interest accrues at 3.15% per year. This loan is collateralized by Impact Fees. 4,930,435 The District entered into a$3,000,000 interest only loan on August 23,2022 to fund the construction of Station 30.Monthly interest payments at 2.67%are due monthly beginning October 1,2022.Final payment of principal plus accrued interest was due on August 1,2023.The loan was collateralized by Ad Valorem taxes and Impact Fees. This loan was paid in full during the year ended September 30,2023. The District entered into a$2,700,000 interest only loan on September 1,2023 to fund the construction of Station 30.Monthly interest payments at 4.55%are due monthly beginning October 21,2023.Final payment of principal plus accrued interest is due on September 21,2024.The loan is collateralized by Ad Valorem revenues.This loan replaced the$3,000,000 construction loan for Station 30. 2,700,000 The District entered into a ten year$779,758 financing lease agreement.Annual payments are$90,339 including interest at 2.77%.Payments began on December 20, 2022 with a fmal payment due December 20,2031.The lease is collateralized by the respective Pierce pumper. 711,014 16181 EXHIBIT 2 Page 1 UNAUDITED COMPLIANCE WITH REPORTING REQUIRED BY: Auditor General Rule 10.554(1)(i)6 For a dependent special district or an independent special district, or a local government entity that includes the information of a dependent special district as provided in Section 218.39(3)(a), Florida Statutes, the following specific information provided by management(with explanatory verbiage that the auditor provides no assurance on the information): a. The total number of district employees compensated in the last pay period of the district's fiscal year being reported (see information required in Section 218.32(1)(e)2.a., Florida Statutes). 42 (including 5 commissioners) b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year being reported (see information required in Section 218.32(1)(e)2.b., Florida Statutes). 5 c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency (see information required in Section 218.32(1)(e)2.c., Florida Statutes). (Total wage compensation for the fiscal year being audited) $2,699,060 d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency (see information required in Section 218.32(1)(e)2.d., Florida Statutes). (Amounts paid that would be reported on a Form 1099 for FYE) $67,400 e. Each construction project with a total cost of at least$65,000 approved by the district that was scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project(see information required in Section 218.32(1)(e)2.e., Florida Statutes). See Note N f. A budget variance report based on the budget adopted under section 189.016(4),Florida Statutes, before the beginning of the fiscal year reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes (see information required in Section 218.32(1)(e)3., Florida Statutes). If there were amendments then include budget variance (original budget vs. actual at FYE). See attached pages 3 - 4. 161 B1 Page 2 Auditor General Rule 10.554(1)(i)7 For an independent special district that imposes ad valorem taxes, the following specific information provided by management(with explanatory verbiage that the auditor provides no assurance on the information): (see information required in Section 218.32(1)(e)4., Florida Statutes). a. The millage rate or rates imposed by the district. 3.75 mills b. The current year gross amount of ad valorem taxes collected by or on behalf of the district. $6,100,838 c. The total amount of outstanding bonds issued by the district and terms of such bonds. $0 Auditor General Rule 10.554(1)(i)8 For an independent special district that imposes non-ad valorem special assessments, the following specific information provided by management(with explanatory verbiage that the auditor provides no assurance on the information): (see information required in Section 218.32(1)(e)5., Florida Statutes). a. The rate or rated of such assessment imposed by the district.N/A b. The total amount of special assessments collected by or on behalf of the district. N/A c. The total amount of outstanding bonds issued by the district and the terms of such bonds.N/A 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 3 ORIGINAL BUDGET vs. ACTUAL COMPARISON REPORT -UNAUDITED - GENERAL FUND Year Ended September 30,2023 General Fund Variance Original Favorable Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 5,963,864 $ 6,100,838 $ 136,974 Intergovernmental revenues: Federal public safety grant-CDBG - 158,139 158,139 State grants - - - Other grants - - - State firefighter supplemental 840 2,520 1,680 Inspection fees - - - Public safety services - - - Miscellaneous: Interest 2,500 200,514 198,014 Other 208,100 335,197 127,097 Reserves brought forward 5,554,485 - (5,554,485) TOTAL REVENUES 11,729,789 6,797,208 (4,932,581) EXPENDITURES Current Public safety Personnel services 4,436,514 4,495,167 (58,653) Operating expenditures 1,061,777 1,143,017 (81,240) Capital outlay 3,077,000 4,361,815 (1,284,815) Debt service Principal reduction 649,000 3,237,808 (2,588,808) Interest and fiscal charges - 150,704 (150,704) Assigned-90 day reserve 1,200,000 - 1,200,000 Assigned-Prepapid expenses 23,987 - 23,987 Assigned-Replacement Station 30 1,000,000 - 1,000,000 Assigned-Emergency 306,511 - 306,511 Assigned-COVID Grant Replacement Vehicle - - - Assigned-Capital purchases - - - Assigned-Replacement Station 30 - - - TOTAL EXPENDITURES 11,754,789 13,388,511 (1,633,722) EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (25,000) (6,591,303) (6,566,303) OTHER FINANCING SOURCES(USES) Proceeds from issuance of financing lease - 123,067 123,067 Proceeds from issuance of construction loan - 3,479,758 3,479,758 Proceeds from disposition of capital assets 25,000 26,242 1,242 TOTAL OTHER FINANCING SOURCES(USES) 25,000 3,629,067 3,604,067 NET CHANGE IN FUND BALANCE $ - (2,962,236) $ (2,962,236) FUND BALANCE-Beginning 5,700,282 FUND BALANCE-Ending $ 2,738,046 The accompanying notes are an integral part of this statement. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 4 ORIGINAL BUDGET vs. ACTUAL COMPARISON REPORT- UNAUDITED -IMPACT FEE FUND Year Ended September 30,2023 Impact Fee Fund Variance Original Favorable Budget Actual (Unfavorable) REVENUES Impact fees $ 2,000,000 $ 1,414,108 $ (585,892) Miscellaneous: Interest 3,500 102,689 99,189 Cash brought forward 2,395,927 - (2,395,927) TOTAL REVENUES 4,399,427 1,516,797 (2,882,630) EXPENDITURES Current Public safety Operating expenditures 75,000 79,809 (4,809) Capital outlay 1,125,000 812,007 312,993 Debt service Principal reduction 760,131 432,721 327,410 Interest and fiscal charges 198,456 192,260 6,196 Cash carried forward 2,240,840 - 2,240,840 TOTAL EXPENDITURES 4,399,427 1,516,797 2,882,630 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES OTHER FINANCING SOURCES(USES) Proceeds from issuance of financing lease - - - Proceeds from issuance of construction loan - TOTAL OTHER FINANCING SOURCES(USES) - _NET CHANGE IN FUND BALANCE $ - - $ - FUND BALANCE-Beginning - FUND BALANCE-Ending $ - • The accompanying notes are an integral part of this statement. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 31 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE G - LONG-TERM LIABILITIES, CONTINUED Non-current portion of compensated absences. Employees of the District are entitled to paid leave(sick,vacation and comp time)based on length of service and job classification. 533,435 Net OPEB liability-actuarially determined-GASB No.75. 266,641 Total long-term liabilities 16,808,800 Current portion (3,381,209) Noncurrent portion $ 13,427,591 The annual debt service requirements at September 30, 2023, were as follows: Years Ending Total Total September 30 Principal Interest Total 2024 $ 3,381,209 $ 358,982 $ 3,740,191 2025 695,986 212,156 908,142 2026 718,673 189,468 908,141 2027 787,482 165,989 953,471 2028 609,305 140,179 749,484 2029-2033 2,676,416 431,980 3,108,396 2034-2037 1,423,638 73,093 1,496,731 Total debt 10,292,709 1,571,847 11,864,556 Net pension liability-FRS 4,616,173 - 4,616,173 Net pension liability-HIS 1,099,842 - 1,099,842 Accrued compensated absences-vacation 533,435 - 533,435 Net OPEB obligation 266,641 - 266,641 Total long-term debt $ 16,808,800 $ 1,571,847 $ 18,380,647 Interest expense related to the capital leases payable was $151,510 for the year ended September 30, 2023. Interest expense related to the construction loans was $191,454 for the year ended September 30, 2023. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 32 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H - RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN General Information about the Florida Retirement System The Florida Retirement System ("FRS")was created in Chapter 121,Florida Statutes. The FRS was created to provide a defined benefit pension plan ("Pension Plan") for participating public employees. All District employees are participants in the Statewide Florida Retirement System (FRS) under authority of Article X, Section 14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS was amended in 1998 to add the Deferred Retirement Option Program ("DROP") under the defined benefit plan and amended in 2000 to provide an integrated 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 separate 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 District 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 Florida Retirement System 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 two cost-sharing, multiple-employer defined benefit plans (Pension and HIS 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 dated June 30, 2022, is available from the Florida Department of Management Services' Website (www.dm s.myflorida.com). The District's total pension expense, $1,505,753 for the year ended September 30, 2023, is recorded in the government-wide financial statements. Total District actual retirement contribution expenditures were $751,548, $645,398 and $539,945 for the years ended September 30, 2023, 2022, and 2021, respectively. The District contributed 100%of the required contributions. 161B1 IMMOKALEE FIRE CONTROL DISTRICT Page 33 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H - RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan Plan Description. The FRS Pension Plan ("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. Senior Management Service Class (SMSC) - Members in senior management level positions. Special Risk Class -Members who are employed as certified firefighters and meet the criteria to qualify for this class. Elected Officials - Members who are elected by the voters within the District boundaries. Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable service and employees enrolled in the Plan on or after July 1, 2011, vest at eight 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 those members classified as special risk who are eligible for normal retirement benefits at age 55 and 6 years of service or at any age after 25 years of service. All members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 and 8 years of service 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 with 8 years of service or at any age after 30 years of service. However, effective July 1, 2023, for special risk who enrolled on or after July 1, 2011, normal retirement date changed to the earlier of 25 years of creditable service or age 55. Members of both Plans (Pension and HIS)may include up to 4 years of credit for military service toward creditable service. The 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 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 Plan to defer receipt of monthly benefit payments while continuing employment with an FRS employer. An employee may elect to participate in DROP at any time after reaching normal retirement date. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 34 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H - RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued Effective July 1, 2023, an employee may participate in DROP for a period not to exceed 96 months (8 years) after electing to participate except for certain instructional personnel who can participate for 120 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. Interest accrues at 4% on DROP accumulation held on or after July 1, 2023 and at 1.3%prior. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. The restricted 12 month election window was removed. Participants may elect to enter DROP at anytime after becoming fully vested and reaching normal retirement age. Benefits Provided. Benefits under the Plan are computed on the basis of age, and/or years of service, average final compensation, and credit service. 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 five highest fiscal years' earnings; for the members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight 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 retirement plan and/or the 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 of each year of service credit earned: Class,Initial Enrollment,and Retirement Age/Years of Service %Value Regular Class and elected 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 and elected 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 Special Risk Regular Service from December 1, 1970 through September 30, 1974 2.00 Service on or after October 1, 1974 3.00 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 35 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H- RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued Senior Management Service Class 2.00 Elected Officers'Class 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. Plan members initially enrolled on or after July 1, 2011,will not have a cost-of-living adjustment after retirement. Contributions. The Florida Legislature establishes contribution rates for participating employers and employees. Contribution rates during the year ended September 30, 2023 were as follows: Percent of Gross Salary* Class(2) Employee Employer(1) Employer(3) Florida Retirement System,Regular 3.00 11.91 13.57 Florida Retirement System,Senior Management Service 3.00 31.57 34.52 Florida Retirement System,Special Risk 3.00 27.83 32.67 Deferred Retirement Option Program-Applicable to Members from All of the Above Classes 0.00 18.60 21.13 Florida Retirement System,Reemployed Retiree (2) N/A N/A Florida Retirement System,Elected Official 3.00 57.00 58.68 Notes: (1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/22-6/30/23. (2) Contribution rates are dependent upon retirement class in which reemployed. (3) Employer rates include 2.0 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/23-6/30/24. * As defined by the Plan. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 36 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30, 2023 NOTE H - RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Pension Plan. At September 30, 2023, the District reported a pension liability of$4,616,173 for its proportionate share of the 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 District's proportionate share of the net pension liability was based on the District's 2022-23 fiscal year contributions relative to the total 2022-23 fiscal year contributions of all participating members. At September 30, 2023,the District's proportionate share was .011584793 percent,which was an increase of.000165967 percent from its proportionate share measure as of September 30, 2022. For the year ended September 30, 2023,the District recognized a pension expense of$1,415,408. In addition, the District reported deferred outflows of resources and deferred inflows of resources related to the pension from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences between expected and actual experience $ 433,419 $ - Change of assumptions 300,917 Net difference between projected and actual earnings on pension plan investments 192,784 - Changes in proportion and differences between District contributions and proportionate share of contributions 227,393 226,948 District contributions subsequent to the measurement date 170,208 - Total $ 1,324,721 $ 226,948 161131 IMMOKALEE FIRE CONTROL DISTRICT Page 37 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H - RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued The deferred outflows of resources related to the FRS pension, totaling $170,208, resulting from District contributions subsequent to the measurement date, will be recognized as a reduction on the net pension liability in the fiscal year ended September 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the pension will be recognized in pension expense over the remaining service period of 5.3 years as follows: Fiscal Years Ending September 30 Amount 2024 $ 219,075 2025 219,075 2026 219,075 2027 219,075 2028 170,879 Thereafter (119,614) Total $ 927,565 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: Valuation date July 1, 2023 Measurement date June 30, 2023 Inflation 2.40 percent Real payroll growth 0.85 percent Salary increases 3.25 percent, average, including inflation Investment rate of return 6.70 percent, net of pension plan investment expense, including inflation Actuarial cost method Individual entry age Mortality rates were based on the Generational PUB-2010 with Projection Scale MP-2018. The actuarial assumptions used in the July 1, 2023, valuation were based on the results of an actuarial experience study for the period July 1, 2013 through June 30, 2018. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 38 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H- RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued 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 and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation(1) Return Return Deviation Cash 1.00% 2.9% 2.9% 1.1% Fixed income 19.80% 4.5% 4.4% 3.4% Global equity 54.00% 8.7% 7.1% 18.1% Real estate(property) 10.30% 7.6% 6.6% 14.8% Private equity 11.10% 11.9% 8.8% 26.3% Strategic investments 3.80% 6.3% 6.1% 7.7% Total 100.00% Assumed inflation-Mean 2.40% 1.40% (1)As outlined in the Plan's investment policy Money-weighted Rate of Return. The annual money-weighted rate of return on the FRS Pension Plan investments for the year ended September 30, 2023, was 7.58%. Discount Rate. The discount rate used to measure the total pension liability was 6.70 percent. The 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 discount rate for calculating the total pension liability is equal to the long-term expected rate of return. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 39 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H - RETIREMENT PLAN- DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the District's proportionate share of the net pension liability calculated using the discount rate of 6.70 percent, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower(5.70 percent) or 1-percentage-point higher(7.70 percent)than the current rate: 1% Current 1% Decrease Discount Rate Increase (5.70%) (6.70%) (7.70%) District's proportionate share of the net FRS pension liability $ 7,885,364 $ 4,616,173 $ 1,881,104 Pension Plan Fiduciary Net Position. Detailed information about pension plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Annual Comprehensive Financial Report(FRS ACFR) dated June 30, 2023. The FRS ACFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O. Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http://www.dms.myflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30, 2023,the District reported a payable of$0 for the outstanding amount of contributions in the pension plan required for the year ended September 30, 2023. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 40 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H - RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED Health Insurance Subsidy (HIS)Plan Plan Description. The Health Insurance Subsidy Plan ("HIS Plan") is a cost-sharing, multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes. 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 Division of Retirement within the Florida Department of Management Services. Benefits Provided. For the year ended September 30, 2022, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of creditable service completed at the time of retirement multiplied by $5. The payments are at least$30 but not more than $150 per month,pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage,which can 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. For the years ended September 30, 2023 and 2022,the contribution rate ranged between 2.0 percent and 1.66 percent of payroll pursuant to Section 112.363, Florida Statutes. The District contributed 100 percent of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which HIS 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 cancelled. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the HIS Plan. At September 30, 2023,the District reported a HIS liability of$1,099,842 for its proportionate share of the net 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 District's proportionate share of the net HIS liability was based on the District's 1b1B1 IMMOKALEE FIRE CONTROL DISTRICT Page 41 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H - RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED Health Insurance Subsidy (HIS) Plan, continued 2022-23 fiscal year contributions relative to the total 2022-23 fiscal year contributions of all participating members. At September 30, 2023, the District's proportionate share was .006925378 percent,which was an increase of.000272252 percent from its proportionate share measured as of September 30, 2022. For the fiscal year ended September 30, 2023,the District recognized HIS expense of$90,345. In addition,the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences between expected and actual experience $ 16,101 $ 2,581 Change of assumptions 28,915 95,305 Net difference between projected and actual earnings on HIS pension plan investments 568 - Changes in proportion and differences between District HIS contributions and proportionate share of HIS contributions 87,017 15,099 District contributions subsequent to the measurement date 13,623 - Total $ 146,224 $ 112,985 The deferred outflows of resources related to HIS, totaling $13,623, resulting from District contributions subsequent to the measurement date,will be recognized as a reduction on the net pension liability in the year ended September 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense over the remaining service period of 6.3 years as follows: Fiscal Years Ending September 30 Amount 2024 $ 3,736 2025 3,736 2026 3,736 2027 3,736 2028 3,594 Thereafter 1,078 Total $ 19,616 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 42 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN, CONTINUED Health Insurance Subsidy (HIS) Plan, continued 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 percent Real Payroll Growth 0.85 percent Salary Increases 3.25 percent,average,including inflation Municipal Bond Rate 3.65 percent Annual Cost Method Individual entry age Mortality rates were based on the Generational PUB-2010 with Projected Scale MP-2018. Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has been completed for the Plan. Discount Rate. The discount rate used to measure the total HIS liability was 3.65 percent. In general,the discount rate for calculating the total HIS 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 plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Sensitivity of the District's Proportionate Share of the Net HIS Liability to Changes in the Discount Rate. The following presents the District's proportionate share of the net HIS liability calculated using the discount rate of 3.65 percent, as well as what the District's proportionate share of the net HIS liability would be if it were calculated using a discount rate that is 1-percentage-point lower(2.65 percent) or 1-percentage-point higher(4.65 percent)than the current rate: 1% Current 1% Decrease Discount Rate Increase (2.65%) (3.65%) (4.65%) District's proportionate share of the net HIS liability $ 1,254,749 $ 1,099,842 $ 971,436 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 43 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H- RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED Health Insurance Subsidy (HIS)Plan, continued Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Annual Comprehensive Financial Report(FRS ACFR) dated June 30, 2023. The FRS ACFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O. Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http://www.dms.myflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30, 2023, the District reported a payable of$0 for the outstanding amount of contributions to the HIS plan required for the fiscal year ended September 30, 2023. FRS -Defined Contribution Pension Plan The 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. District 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 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 44 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H- RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED FRS -Defined Contribution Pension Plan, continued 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 FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Allocations to the investment member's accounts during the 2022-23 fiscal year were as follows: Percent of Gross Salary* Class(2) Employee Employer(1) Employer(3) Florida Retirement System,Regular 3.00 6.3 8.30 Florida Retirement System,Senior Management Service 3.00 7.67 9.67 Florida Retirement System,Special Risk 3.00 14.0 16.0 Florida Retirement System,Elected Official 3.00 11.34 13.34 Notes: (1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/22-6/30/23. (2) Contribution rates are dependent upon retirement class in which reemployed. (3) Employer rates include 2.0 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/23-6/30/24. * As defined by the Plan. Effective July 1, 2023, employer contribution rates increased by 2% in all membership classes. 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. Nonvested 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 September 30, 2022,the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the District. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 45 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE H- RETIREMENT PLAN - DEFINED BENEFIT PENSION PLAN, CONTINUED FRS -Defined Contribution Pension Plan, continued After termination and applying to receive benefits,the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. The District's Investment Plan pension expense totaled $225,666 for the fiscal year ended September 30, 2023. Payables to the Investment Plan. At September 30, 2023,the District reported a payable of$0 for the outstanding amount of contributions to the Plan required for the fiscal year ended September 30, 2023. Other Retirement Plan Effective June 2020,the District initiated a 401(a)plan for the District's Fire Chief. Effective January 2019, the District began offering two (2) 457(b) Deferred Compensation Plans to all employees which allows for salary deferrals with no employer contributions. NOTE I - PROPERTY TAXES Property taxes are levied after formal adoption of the District's budget and become due and payable on November 1 of each year and are delinquent on April 1 of the following year. Discounts on property taxes are allowed for payments made prior to the April 1 delinquent date. Tax certificates are sold to the public for the full amount of any unpaid taxes and must be sold not later than June 1 of each year. The billing, collection, and related recordkeeping of all property taxes is performed for the District by the Collier County Tax Collector. 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. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 46 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE I - PROPERTY TAXES, CONTINUED Procedures for collecting delinquent taxes, including applicable tax certificate sales and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is approximately two years after taxes become delinquent and occurs only upon request of a holder of a delinquent tax certificate. As of September 30, 2023, $69,479 was due from the Collier County Tax Collector for ad valorem taxes and excess fees. Important dates in the property tax cycle are as follows: Assessment roll certified July 1 Millage resolution approved No later than 93 days following certification of assessment roll Beginning of fiscal year for which taxes have been levied October 1 Taxes due and payable(levy date) November 1 with various discount provisions through March 31 Property taxes payable- maximum discount(4 percent) 30 days after levy date Due date March 31 Taxes become delinquent(lien date) April 1 Tax certificates sold by the Collier County Tax Collector Prior to June 1 For the year ended September 30, 2023, the Board of Commissioners of the District levied ad valorem taxes at a millage rate of$3.75 per $1,000 (3.75 mills) of the 2022 net taxable value of real property located within the District. NOTE J- IMPACT FEE FUND ACTIVITY During the year ended September 30, 2023,the Impact Fee Fund had the following activity: Amount Unearned revenue,October 1,2022 $ 2,405,180 Impact fee receipts* 2,315,155 Debt proceeds - Interest income 102,689 Professional fees(impact fee study) (58,940) Commissions(admin fee)-paid to Collier County (20,869) Debt service-principal (432,721) Debt service-interest (192,260) Capital outlay (812,007) Unearned revenue,September 30,2023 $ 3,306,227 *Includes$179,311 due from Collier County. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 47 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE K- RISK MANAGEMENT The District is exposed to various risks of loss related to torts;theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Insurance programs for general/professional liability, automobile and property are covered by commercial insurance. The District retains the risk of loss up to a deductible amount(ranging from $0 to $2,500)with the risk of loss in excess of this amount transferred to the insurance carrier with limits of liability of$1,000,000 per occurrence and $10,000,000 in the aggregate. The District is third party insured for employee health, dental and vision as well as workers' compensation. NOTE L - FUND BALANCE ALLOCATIONS Fund balance was allocated for the following purposes at September 30, 2023: Nonspendable Fund Balance Amount General Fund Prepaid expenditures $ 152,743 Total Nonspendable Fund Balance-General Fund 152,743 Assigned Fund Balance General Fund Assigned for fiscal year startup(90 day operations) 1,200,000 Capital purchases 100,000 Disaster/Emergency 265,303 COVID Grant Replacement Vehicle 20,000 Replacement Station 30 1,000,000 Total Assigned Fund Balance-General Fund 2,585,303 Unassigned Fund Balance Unassigned - Total Fund Balance-General Fund $ 2,738,046 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 48 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB) Plan Description The District's defined contribution OPEB Plan provides the opportunity to obtain health insurance, pharmacy, dental and vision benefits to its retired employees and their dependents. The year ended September 30, 2018 was the District's transition year and as such,the District implemented GASB No. 75 "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions". GASB No. 75 requires the District record its actuarially determined total OPEB liability. All retired full-time employees are eligible for OPEB benefits if actively employed by the District immediately before retirement. As of September 30, 2023, there were no retirees eligible to receive benefits. At September 30, 2023, there were thirty-five (35) active full time eligible District employees and zero (0) inactive. The benefits are provided both with contractual or labor agreements. The benefits require contribution from the retirees, depending on certain specified criteria and, in particular, length of creditable employment. There is no requirement for the District to contribute toward this benefit and the District does not contribute toward this benefit. The minimum retirement age is 62 for administrative and 55 years old for special risk. The minimum years of service requirement is 10 years. The retiree's premiums for these benefits totaled $0 during the year ended September 30, 2023. Funding Policy The District's OPEB benefits are unfunded. The retiree is eligible for benefits under the District's health and pharmacy plan, but is obligated to reimburse the District for 100%of the cost of the retiree's health coverage. As such,the District has no ultimate obligation (explicit subsidy) for the retiree's health insurance premium. The District acts as agent for the retiree on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due. The District does, however, incur the cost of premium rate being increased on its active employees (implicit subsidy) due to providing coverage to its retirees. The District has not determined if a separate trust fund or equivalent arrangement will be established into which the District would make contributions to advance-fund the obligation. Therefore, no separate financial statement is issued. All required disclosures are presented herein. The Plan's measurement date was September 30, 2023. The Plan's valuation date was September 30, 2023. 161Bi IMMOKALEE FIRE CONTROL DISTRICT Page 49 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Funding Policy, continued The retiree pays 100% of the retiree health coverage therefore there is no explicit subsidy. The retiree may purchase dependent coverage through the District. At age 65 the retiree then must move to Medicare but may continue to purchase dental and vision coverage through the District. The District finances the benefits on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due. The District subsidizes the premium rates paid by retirees by allowing them to participate at blended premium rates for both active and retired employees. These rates provide an implicit subsidy for retirees because, on an actuarial basis, retiree claims are expected to result in higher costs to the plan on average than those of active employees. The projection of future benefit payments for an ongoing plan involves 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. The schedule of funding progress presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The 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, consistent with the long-term perspective of the calculations. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 50 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Actuarial Methods and Assumptions, continued At September 30, 2023, the District's Net OPEB Liability of$266,641 was measured as of September 30, 2023, and was determined by an actuarial valuation as of that date using the alternate measurement method. The following actuarial assumptions and other inputs were applied to all periods included in the measurement: The following simplifying assumptions were made: Mortality-Life expectancies were based on PubG-2010 Mortality Tables for Males and Females projected 10 years using MP-2019. Actuarial Cost Method-Entry age normal cost method.(level%of pay) Annual healthcare cost trend using the Society of Actuaries Long-Run Medical Cost Trend Model baseline assumptions with an initial rate of 7.0%per year trending to ultimate 4.00%by 2028. Turnover-Derived from data maintained by the US Office of Personnel Management regarding the most recent experience of the employee group covered by the Federal Employees Retirement System. Amortization Period: Rolling 20 year amortization Amortization Method: level percentage of payroll The discount rate was 4.87%for 2023 (4.77%for 2022)(2.43%for 2021)(2.41%for 2020)(2.21% for 2019)(4.23%for 2018)(2.8%for 2017)and was based on the 20 Year Municipal Bond Rate with Aa2/AA or higher. Salary Increases 2.50% Discount Rate 4.87% Inflation Rate 2.50% Years to Ultimate 51 years The FRS salary scale was used. Participation percentage:20% Valuation Date September 30,2023 The actuarial assumptions used in the September 30,2023 (valuation date)were calculated using alternative measurement method in accordance with GASB methodology. The rationales for selecting each of the assumptions used in the financial accounting valuation and for the assumptions changes summarized above are to best reflect the current market conditions and recent plan experience. 16IBi IMMOKALEE FIRE CONTROL DISTRICT Page 51 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Changes in the Net OPEB Liability Amount Balance at September 30, 2022 $ 291,263 Changes for the Year: Service Cost 15,066 Interest Cost on Total OPEB Liability 14,580 Change in Benefit Terms - Difference Between Expected and Actual Experience (18,102) Changes in Assumptions (34,823) Benefit Payments (1,343) Net Changes (24,622) Balance at September 30, 2023 $ 266,641 The following presents the net OPEB liability of the District as well as what the District's net OPEB liability would be if it were calculated using a discount rate that is 1 percent higher or 1 percent lower than the current discount rate. 1%Decrease Current Rate 1%Increase 3.87% 4.87% 5.87% Net OPEB Liability $ 312,434 $ 266,641 $ 229,208 The following presents the net OPEB liability of the District as well as what the District's net OPEB liability would be if it were calculated using healthcare trend rates that are 1 percent higher or 1 percent lower than the current healthcare trend rate. 1%Decrease Trend Rate 1%Increase 3.0-6.0% 4.0-7.0% 5.0-8.0% Net OPEB Liability $ 226,977 $ 266,641 $ 315,283 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 52 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Changes in the Net OPEB Liability, continued For the year ended September 30, 2023, the District recognized OPEB expense (credit) of($19,579). At September 30, 2023,the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources* Resources* Differences Between Expected and Actual Experience $ - $ - Changes in Assumptions - - Net difference between projected and actual earnings - - Employer contribution subsequent to measurement date - - Total $ - $ - Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended September 30: Amount* 2024 $ - 2025 - 2026 - 2027 - 2028 - Total Thereafter - $ - *Per GASB No. 75 paragraph 43(a) since the District used the alternative measurement method the effects of assumptions are recognized immediately. As such, since the Plan holds no assets, their deferred inflows/outflows are zero. 161131 IMMOKALEE FIRE CONTROL DISTRICT Page 53 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE N - COMMITMENTS AND CONTINGENCIES In April 2021,the District entered into contract in the amount of$4,716,802 for the construction of Station 30. During the year ended September 30, 2023, there was a net increase in change orders in the amount of$1,372,246, bringing the sum of the contract to a total of$6,089,048. The District is funding the Station 30 project through a State Fire Service Grant in the amount of$900,000, a Federal CBDG grant in the amount of$1,016,647 and the remaining cost will be funded through a$2,700,000 construction loan and District funds (general and impact fees). Payments made under this contract total $5,777,369 and are included in Construction in Progress and Capital Outlay in the General Fund. At September 30, 2023,the balance of retainage is $293,563. NOTE O - 457(b) DEFERRED COMPENSATION PLANS The District offers the employees the opportunity to participate in two (2)457(b) deferred compensation plans. These Plans have a third party trustee/custodian that holds 100%of Plan assets. The Plans are 100%third party administered. The Plans accept only employee contributions. NOTE P - 401(a) RETIREMENT PLAN The Board of Fire Commissioners established the 401(a)Plan (the "Plan") for the Fire Chief. This retirement Plan is in addition to the benefits the Chief is entitled to from FRS/HIS. The Plan was effective on June 18, 2020. At September 30, 2023, the Plan has one (1) active participant and allows only the Chief to participate. The Plan permits employer contributions only. Amounts contributed by the employer are equal to $5,000 per fiscal year as required by the Chiefs employment contract. Employee contributions are prohibited. Employer contributions are 100%vested upon deposit into the Plan. Total District contributions to the Plan for the year ended September 30, 2023 were $5,000. 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 54 of 70 NOTES TO THE FINANCIAL STATEMENTS September 30,2023 NOTE Q - SUBSCRIPTION LIABILITY The District entered into multiple subscription-based information technology arrangements for various software. The software have 1 year terms and have fixed payments. The District aggregated the subscriptions for reporting purposes. The District used a discount rate of 4.45%(incremental borrowing rate)to record the present value of the future minimum payments as of the date of implementation. The District is capitalizing the arrangements over a 3 year term consistent with its fixed asset capitalization policy. The future minimum subscription payments as of September 30, 2023 is as follows: Years Ending September 30 Amount 2024 $ 59,162 2025 67,585 126,747 Impact of present value discount (8,315) Present value $ 118,432 The amortization of the subscription liability for the year ended September 30, 2023, was $7,707. At September 30, 2023,the right of use-subscription asset and right of use- subscription liability balances are as follows: Amount Right of use subscription asset,current $ 53,783 Right of use subscription asset,noncurrent 64,649 $ 118,432 Right of use subscription liability,current $ 53,783 Right of use subscription liability,noncurrent 64,649 $ 118,432 161 B1 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A • u 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 55 of 70 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL - GENERAL FUND - SUMMARY STATEMENT Year Ended September 30,2023 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 5,963,864 $ 6,100,838 $ 6,100,838 $ - Intergovernmental revenues: Federal public safety grant-CDBG - 158,139 158,139 - State grants - - - - Other grants - - - - State firefighter supplemental 840 2,840 2,520 (320) Inspection fees - - - - Public safety services - - - - Miscellaneous: Interest 2,500 200,401 200,514 113 Other 208,100 334,125 335,197 1,072 Reserves brought forward 5,554,485 5,700,282 - (5,700,282) TOTAL REVENUES 11,729,789 12,496,625 6,797,208 (5,699,417) EXPENDITURES Current Public safety Personnel services 4,436,514 4,500,535 4,495,167 5,368 Operating expenditures 1,061,777 1,153,277 1,143,017 10,260 Capital outlay 3,077,000 4,361,849 4,361,815 34 Debt service Principal reduction 649,000 3,251,000 3,237,808 13,192 Interest and fiscal charges - 145,408 150,704 (5,296) Assigned-90 day reserve 1,200,000 1,200,000 - 1,200,000 Assigned-Prepaid expenses 23,987 - - - Assigned-Fleet Reserves 1,000,000 1,000,000 - 1,000,000 Assigned-Emergency 306,511 239,637 - 239,637 Assigned-COVID Grant Replacement Vehicle - 20,000 - 20,000 Assigned-Capital purchases - 100,000 - 100,000 Assigned-Replacement Station 30 - 152,744 - _ 152,744 TOTAL EXPENDITURES 11,754,789 16,124,450 13,388,511 2,735,939 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (25,000) (3,627,825) (6,591,303) (2,963,478) OTHER FINANCING SOURCES(USES) Proceeds from issuance of financing lease - - 123,067 123,067 Proceeds from issuance of construction loans - 3,602,825 3,479,758 (123,067) Proceeds from disposition of capital assets 25,000 25,000 26,242 1,242 TOTAL OTHER FINANCING SOURCES(USES) 25,000 3,627,825 3,629,067 1,242 NET CHANGE IN FUND BALANCE $ - $ - (2,962,236) $ (2,962,236) FUND BALANCE-Beginning 5,700,282 FUND BALANCE-Ending $ 2,738,046 The accompanying notes are an integral part of this statement. 16IB1 IMMOKALEE FIRE CONTROL DISTRICT Page 56 of 70 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND DETAILED STATEMENT Year Ended September 30,2023 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 5,963,864 $ 6,100,838 $ 6,100,838 $ - Intergovernmental revenues: Federal grants - 158,139 158,139 - - - State grants - - - Other grants - - State firefighter supplemental 840 2,840 2,520 (320) - Inspection fees - - - Public safety services - Miscellaneous: Interest income 2,500 200,401 200,514 113 PILT-Seminole 100,000 102,025 102,025 - PILT farm workers village 6,000 6,000 6,150 150 Donations 80,100 80,100 80,020 (80) User fees-rent 15,000 15,000 12,966 (2,034) Other income 7,000 131,000 134,036 3,036 Subtotal 6,175,304 6,796,343 6,797,208 865 Reserves brought forward 5,554,485 5,700,282 - (5,700,282) TOTAL REVENUES 11,729,789 12,496,625 6,797,208 (5,699,417) EXPENDITURES PERSONNEL SERVICES Salaries Firefighters&administrative 2,245,724 2,220,922 2,220,922 - Overtime pay 316,542 412,542 409,234 3,308 Holiday pay 67,518 67,518 65,886 1,632 Vacation&sick sell back pay 35,000 3,500 3,018 482 Payroll taxes Social Security 203,856 203,856 204,829 (973) Benefits Retirement 696,991 753,991 756,548 (2,557) Group insurance 735,000 716,000 716,251 (251) Health insurance-Commissioners - 6,323 6,323 - Workers'compensation 135,883 115,883 112,156 3,727 - - Unemployment - - SUBTOTAL-PERSONNEL SERVICES 4,436,514 4,500,535 4,495,167 5,368 OPERATING Contracted Services Physicals 5,000 12,000 12,220 (220) Legal&professional fees 58,000 58,000 60,209 (2,209) Property appraiser fees 30,000 45,000 41,165 3,835 Tax collection fees 119,777 119,777 123,335 (3,558) Contracted services 30,500 35,000 39,267 (4,267) Subtotal-Contracted services 243,277 269,777 276,196 (6,419) The accompanying notes are an integral part of this statement. 161 B1 IMMOKALEE FIRE CONTROL DISTRICT Page 57 of 70 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND DETAILED STATEMENT - CONTINUED Year Ended September 30,2023 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) OPERATING,CONTINUED Operating Education and training 20,000 42,000 42,604 (604) Travel 12,500 31,500 31,268 232 Communications-telephone 40,000 40,000 46,247 (6,247) Postage 1,000 1,000 720 280 Utilities 127,000 127,000 128,170 (1,170) Liability insurance 135,000 125,000 125,900 (900) Subtotal-Operating 335,500 366,500 374,909 (8,409) Maintenance Vehicle 70,000 70,000 88,413 (18,413) Equipment-firefighter and rescue 15,000 27,000 21,600 5,400 Generators - - 1,532 (1,532) Equipment lease - - 9,277 (9,277) HVAC - - 5,035 (5,035) Building 75,000 75,000 75,446 (446) Bunker gear 4,500 4,500 8,685 (4,185) Cascade system - - 2,395 (2,395) Subtotal-Maintenance 164,500 176,500 212,383 (35,883) Legal advertising 4,000 4,000 2,682 1,318 Supplies Office 3,500 3,500 1,963 1,537 Printing - - - - Shipping - - 83 (83) Firefighter rescue 17,500 17,500 17,784 (284) Station-janitorial - - 10,819 (10,819) CDBG COVID-PPE - - - Station-non janitorial 45,000 45,000 8,018 36,982 Education&training 5,000 5,000 - 5,000 Fuel and oil 85,000 85,000 71,052 13,948 Uniforms&PPE 20,000 20,000 25,527 (5,527) Hurricane expense - - - - Computer software and training 65,000 60,000 57,267 2,733 Miscellaneous 5,000 5,000 744 4,256 Communication(radio) 5,000 15,000 12,007 2,993 Communication(phone) - - 1,839 (1,839) Public education - - - - Furniture - 25,000 24,917 83 Computer equipment 17,500 17,500 12,092 5,408 Operating - - 2,780 (2,780) Minor equipment 40,000 32,000 23,891 8,109 The accompanying notes are an integral part of this statement. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 58 of 70 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND DETAILED STATEMENT -CONTINUED Year Ended September 30,2023 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) Books and dues 6,000 6,000 6,064 (64) Subtotal-Supplies 314,500 336,500 276,847 59,653 SUBTOTAL-OPERATING EXPENDITURES 1,061,777 1,153,277 1,143,017 10,260 Capital Outlay Land - - - - Firefighter equipment-grant match 5,000 5,000 45,145 (40,145) Training equipment - - - - Firefighter rescue equipment 15,000 15,000 19,333 (4,333) Bunker gear 32,000 - - - Building and CIP 3,000,000 3,245,000 3,244,048 952 Covid Grant vehicle&equipment - 95,733 95,733 - Vehicles - 902,825 902,825 - Communications equipment - 45,200 - 45,200 Computer equipment 25,000 53,091 54,731 (1,640) SUBTOTAL-CAPITAL OUTLAY 3,077,000 4,361,849 4,361,815 34 Debt service Principal retirement 649,000 3,251,000 3,237,808 13,192 Interest charges and fiscal - 145,408 150,704 (5,296) SUBTOTAL-DEBT SERVICE 649,000 3,396,408 3,388,512 7,896 Assigned-First Q of Operation 1,200,000 1,200,000 - 1,200,000 Assigned-Projected Deficit 23,987 - - - Assigned-Replacement Station 30 1,000,000 1,000,000 - 1,000,000 Assigned-Emergency 306,511 239,637 - 239,637 Assigned-COVID Grant Replacement Vehicle - 20,000 - 20,000 Assigned-Capital purchases - 100,000 - 100,000 Restricted-Prepaid Expenses - 152,744 - 152,744 TOTAL EXPENDITURES 11,754,789 16,124,450 13,388,511 2,735,939 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (25,000) (3,627,825) (6,591,303) (2,963,478) OTHER FINANCING SOURCES(USES) Proceeds from issuance of financing lease - - 123,067 123,067 Proceeds from issuance of construction loans - 3,602,825 3,479,758 (123,067) Proceeds from disposition of capital assets 25,000 25,000 26,242 1,242 TOTAL OTHER FINANCING SOURCES(USES) 25,000 3,627,825 3,629,067 1,242 NET CHANGE IN FUND BALANCE $ - $ - (2,962,236) $ (2,962,236) FUND BALANCE-BEGINNING 5,700,282 FUND BALANCE-ENDING $ 2,738,046 The accompanying notes are an integral part of this statement. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 59 of 70 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL- IMPACT FEE FUND SUMMARY STATEMENT Year Ended September 30,2023 Impact Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Impact fees $ 2,000,000 $ 2,315,154 $ 1,414,108 $ (901,046) Miscellaneous: Interest 3,500 101,986 102,689 703 Cash brought forward 2,395,927 2,405,180 - (2,405,180) TOTAL REVENUES 4,399,427 4,822,320 1,516,797 (3,305,523) EXPENDITURES Current Public safety Operating expenditures 75,000 86,000 79,809 6,191 Capital outlay 1,125,000 818,683 812,007 6,676 Debt service Principal reduction 760,131 557,382 432,721 124,661 Interest and fiscal charges 198,456 198,456 192,260 6,196 Cash carried forward 2,240,840 3,161,799 - 3,161,799 TOTAL EXPENDITURES 4,399,427 4,822,320 1,516,797 3,305,523 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES - - - - OTHER FINANCING SOURCES(USES) Proceeds from issuance of financing lease - - - - Proceeds from construction loan - - - - TOTAL OTHER FINANCING SOURCES(USES) - - _ - NET CHANGE IN FUND BALANCE $ - $ - - $ - FUND BALANCE-Beginning - FUND BALANCE-Ending $ - The accompanying notes are an integral part of this statement. 16181 IMMOKALEE FIRE CONTROL DISTRICT SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN (1) 2023 2022 2021 2020 Districts proportion of the net pension liability 0.0 1 1 584793% 0.011418826% 0.010400522% 0.011823008% District's proportionate share of the net pension liability $ 4,616,173 $ 4,248,721 $ 785,641 $ 5,124,266 District's covered-employee payroll $ 2,699,060 $ 2,407,158 $ 2,290,487 $ 2,129,835 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 171.03% 176.50% 34.30% 240.59% Plan fiduciary net position as a percentage of the total pension liability 82.38% 82.89% 96.40% 78.85% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. SCHEDULE OF DISTRICT CONTRIBUTIONS - FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN(1) 2023 2022 2021 2020 Contractually required contribution $ 706,455 $ 601,974 $ 507,548 $ 480,781 Contributions in relation to the contractually required contribution 706,455 601,974 507,548 480,781 Contribution deficiency(excess) $ - $ - $ - $ - District's covered-employee payroll $ 2,699,060 $ 2,407,158 $ 2,290,487 $ 2,129,835 Contributions as a percentage of covered-employee payroll 26.17% 25.01% 22.16% 22.57% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled, governments should present information for only those years for which information is available. 16181 Page 60 of 70 2019 2018 2017 2016 2015 2014 0.017687900% 0.012139622% 0.011523968% 0.009463726% 0.006183105% 0.006001750% $ 4,053,007 $ 3,656,517 $ 3,408,712 $ 2,389,598 $ 798,631 $ 366,195 $ 2,092,719 $ 2,199,804 $ 2,117,620 $ 1,735,883 $ 1,298,578 $ 1,199,275 193.67% 166.22% 160.97% 137.66% 61.50% 30.53% 82.61% 84.26% 83.89% 84.88% 92.00% 96.09% 2019 2018 2017 2016 2015 2014 $ 464,854 $ 454,867 $ 381,858 $ 365,318 $ 236,175 $ 209,820 464,854 454,867 381,858 365,318 236,175 209,820 $ - $ - $ - $ - $ - $ $ 2,092,719 $ 2,199,804 $ 2,117,620 $ 1,735,883 $ 1,298,578 $ 1,199,275 22.21% 20.68% 18.03% 21.05% 18.19% 17.50% 16181 IMMOKALEE FIRE CONTROL DISTRICT SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1) 2023 2022 2021 2020 Districts proportion of the net pension liability 0.006925378% 0.006653126% 0.006097996% 0.005936679% Districts proportionate share of the net pension liability $ 1,099,842 $ 704,672 $ 748,011 $ 724,859 Districts covered-employee payroll $ 2,699,060 $ 2,407,158 $ 2,290,487 $ 2,129,835 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 40.75% 29.27% 32.66% 34.03% Plan fiduciary net position as a percentage of the total pension liability 4.12% 4.81% 3.56% 3.00% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. SCHEDULE OF DISTRICT CONTRIBUTIONS - HEALTH INSURANCE SUBSIDY (HIS)PENSION PLAN (1) 2023 2022 2021 2020 Contractually required contribution $ 45,093 $ 38,424 $ 32,397 $ 36,188 Contributions in relation to the contractually required contribution 45,093 38,424 32,397 36,188 Contribution deficiency(excess) $ - $ - $ - $ - District's covered-employee payroll $ 2,699,060 $ 2,407,158 $ 2,290,487 $ 2,129,835 Contributions as a percentage of covered-employee payroll 1.67% 1.60% 1.41% 1.70% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled, governments should present information for only those years for which information is available. 16181 • Page 61 of 70 2019 2018 2017 2016 2015 2014 0.006157845% 0.006303007% 0.005951814% 0.005168356% 0.004192421% 0.004035317% $ 689,001 $ 677,117 $ 636,395 $ 602,350 $ 427,561 $ 377,312 $ 2,092,719 $ 2,199,804 $ 2,117,620 $ 1,735,883 $ 1,298,578 $ 1,199,275 32.92% 30.78% 30.05% 34.70% 32.93% 31.46% 2.63% 2.15% 1.64% 0.97% 0.50% 0.99% 2019 2018 2017 2016 2015 2014 $ 34,989 $ 34,237 $ 28,742 $ 29,194 $ 19,237 $ 14,244 34,989 34,237 28,742 29,194 19,237 14,244 $ - $ - $ - $ - $ - $ - $ 2,092,719 $ 2,199,804 $ 2,117,620 $ 1,735,883 $ 1,298,578 $ 1,199,275 1.67% 1.56% 1.36% 1.68% 1.48% 1.19% t61 Bi IMMOKALEE FIRE CONTROL DISTRICT Page 62 of 70 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION September 30,2023 Changes of Assumptions Actuarial assumptions for both cost-sharing defined benefit plans are reviewed annually by the Florida Retirement System Actuarial Assumptions Conference. The FRS Pension Plan has a valuation performed annually. The HIS Program has a valuation performed biennially that is updated for GASB reporting in the year a valuation is not performed. The most recent experience study for the FRS Pension Plan is for the period July 1, 2013,through June 30, 2018. Because the HIS Program is funded on a pay-as-you-go basis,no experience study has been completed for that program. The actuarial assumptions that determined the total pension liability for the HIS Program were based on certain results of the most recent experience study for the FRS Pension Plan. The total pension liability for each cost-sharing defined benefit plan was determined using the individual entry age actuarial cost method. Inflation increases for both plans is assumed at 2.40%. Payroll growth, including inflation, for both plans is assumed at 3.25%. Both the discount rate and the long-term expected rate of return used for FRS Pension Plan investments remained unchanged at 6.70%. The 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 discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond rate was increased from 3.54%to 3.65%and was used to determine the total pension liability for the program (Bond Buyer General Obligation 20-Bond Municipal Bond Index). Mortality assumptions for both plans were based on the Generational PUB-2010 with Projection Scale MP-2018. Florida Retirement System Pension Plan There were changes in actuarial assumptions. As of June 30, 2023,the inflation rate assumption remained at 2.4 percent,the real payroll growth assumption remained at 0.85 percent, and the overall payroll growth rate assumption remained at 3.25 percent. The long-term expected rate of return was unchanged at 6.70%. Health Insurance Subsidy Pension Plan The municipal rate used to determine total pension liability increased from 3.54 percent to 3.65 percent. 16181 IMMOKALEE FIRE CONTROL DISTRICT Page 63 of 70 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION September 30,2023 Pension Expense and Deferred Outflows/Inflows of Resources In accordance with GASB 68, paragraphs 54 and 71, changes in the net pension liability are recognized in pension expense in the current measurement period, except as indicated below. For each of the following, a portion is recognized in pension expense in the current reporting period, and the balance is amortized as deferred outflows or deferred inflows of resources using a systematic and rational method over a closed period, as defined below: • Differences between expected and actual experience with regard to economic and demographic factors - amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan (active and inactive employees) • Changes of assumptions or other inputs - amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan (active and inactive employees) • Changes in proportion and differences between contributions and proportionate share of contributions - amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan(active and inactive employees) • Differences between expected and actual earnings on pension plan investments - amortized over five years Employer contributions to the pension plans from employers are not included in collective pension expense. However, employee contributions are used to reduce pension expense. The average expected remaining service life of all employees provided with pensions through the pension plans at September 30, 2023, decreased from 5.5 years to 5.3 years for FRS and decreased from 6.4 years for 2022 to 6.3 years for HIS for 2023. 161 Bi IMMOKALEE FIRE CONTROL DISTRICT SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS GASB 75 Changes in Employer's Net OPEB Liability and Related Ratios as of September 30: Net OPEB Liability 2023 2022 2021 Service Cost $ 15,066 $ 22,854 $ 30,006 Interest Cost on Total OPEB Liability 14,580 9,904 13,675 Changes in Benefit Terms - - - Differences Between Expected and Actual Experience (18,102) - 42,653 Changes in Assumptions (34,823) (125,584) (234,430) Benefit Payments (1,343) (1,249) (7,930) Net Change in net OPEB Liability (24,622) (94,075) (156,026) Net OPEB Liability-Beginning of Year 291,263 385,338 541,364 Net OPEB Liability-End of Year $ 266,641 $ 291,263 $ 385,338 NOTE: Information for FY 2017 and earlier is not available. Plan Fiduciary Net Position as of September 30: 2023 2022 2021 Contributions-Employer $ 1,343 $ 1,249 $ 7,930 Net Investment Income - -Benefit Payments (1,343) (1,249) (7,930) Administrative Expense - -Net Change in Fiduciary Net Position - - - Fiduciary Net Position-Beginning of Year - - - Fiduciary Net Position-End of Year $ - $ - $ - Net OPEB Liability $ 266,641 $ 291,263 $ 385,338 Fiduciary Net Position as a%of Net OPEB Liability 0.00% 0.00% 0.00% Covered-Employee Payroll* Net OPEB Liability as a%of Payroll * *Because this OPEB plan does not depend on salary,no information is provided. NOTE: Information for FY 2017 and earlier is not available. Notes to the Schedule: Benefit Changes None Changes of Assumptions The discount rate was changed as follows: 9/30/18 4.23% 9/30/19 2.21% 9/30/20 2.41% 9/30/21 2.43% 9/30/22 4.77% 9/30/23 4.87% Updated healthcare costs and premiums Population covered by Plan: 35 active 0 retired Plan has no specific trust established. $0 assigned for OPEB. 16181 Page 64 of 70 2020 2019 2018 $ 29,274 $ 29,274 $ 31,359 12,282 16,639 13,731 (8,694) 85,904 116,389 (14,191) (75,615) (100,573) (7,559) (33,008) (25,607) 11,112 23,194 35,299 530,252 507,058 471,759 $ 541,364 $ 530,252 $ 507,058 2020 2019 2018 $ 7,559 $ 33,008 $ 25,607 (7,559) (33,008) (25,607) $ - $ - $ - $ 541,364 $ 530,252 $ 507,058 0.00% 0.00% 0.00% 161B1 ADDITIONAL REPORTS 16181 Affiliations Florida Institute of Certified Public Accountants ®II1�Darfl�s �� American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 65 of 70 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Immokalee Fire Control District 5368 Useppa Dr. Ave Maria,Florida 34142 We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America,the basic financial statements of the governmental activities and each major fund of Immokalee Fire Control District (the "District") as of and for the year ended September 30, 2023, and the related notes to the financial statements which collectively comprise the District's basic financial statements as listed in the table of contents and have issued our report thereon dated February 1, 2024. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements,we considered the District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly,we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,to prevent or detect and correct misstatements on a timely basis. INTEGRITY ......... SERVICE ......... EXPERIENCE 12621 World Plaza Lane,Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090• Fax: (239)333-2097 16181 Page 66 of 70 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 Immokalee Fire Control District's basic 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 as defined previously. However, material weaknesses may exist that were not identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Immokalee Fire Control District's basic 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 basic 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 District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. 7 ,1144,641) 4411/)12,440 TUSCAN& COMPANY, P.A. Fort Myers,Florida February 1, 2024 161E31 Affiliations Tu S CAN Florida Institute of Certified Public Accountants QCompany, �A American Institute of Certified Public Accountants & Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 67 of 70 INDEPENDENT ACCOUNTANTS REPORT ON COMPLIANCE WITH SECTION 218.415,FLORIDA STATUTES Board of Commissioners Immokalee Fire Control District 5368 Useppa Dr. Ave Maria, Florida 34142 We have examined Immokalee Fire Control District's compliance with Section 218.415, Florida Statutes,regarding the investment of public funds during the year ended September 30, 2023. Management is responsible for Immokalee Fire Control District's compliance with those requirements. Our responsibility is to express an opinion on Immokalee Fire Control District's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Immokalee Fire Control District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Immokalee Fire Control District's compliance with specified requirements. In our opinion, Immokalee Fire Control District complied, in all material respects, with the aforementioned requirements for the year ended September 30,2023. This report is intended solely for the information and use of Immokalee Fire Control District and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. \-444,044) k, 4,,,,„1/0„/ TUSCAN&COMPANY, P.A. Fort Myers, Florida February 1, 2024 INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090 •Fax: (239)333-2097 161 Bi T - s cA Affiliations Florida Institute of Certified Public Accountants & Company, �A American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 68 of 70 INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT Board of Commissioners Immokalee Fire Control District 5368 Useppa Dr. Ave Maria, Florida 34142 We have audited the accompanying basic financial statements of Immokalee Fire Control District (the "District") as of and for the year ended September 30, 2023, and have issued our report thereon dated February 1, 2024. We conducted our audit in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America and Chapter 10.550,Rules of the Florida Auditor General. We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards and Chapter 10.550, Rules of the Auditor General. Disclosures in those reports,which are dated February 1, 2024, should be considered in conjunction with this report to management. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,which governs the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information,which is not included in the aforementioned auditor's reports: • Section 10.554(1)(i)1., Rules of the Auditor General,requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no financially significant prior year comments. • Section 10.554(1)(i)2., Rules of the Auditor General,requires that we address in the management letter any recommendations to improve financial management. Such recommendations were noted to improve financial management. INTEGRITY ,..,..,,, SERVICE EXPERIENCE 12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907 • Phone: (239)333-2090 •Fax: (239)333-2097 16181 Page 69 of 70 • Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have an effect on the financial statements that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. • Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter,unless disclosed in the notes to the financial statements. The District discloses this information in the notes to the financial statements. • Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included as to whether or not the local government entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s)met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes. • Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General,we have applied financial condition assessment procedures. It is management's responsibility to monitor the District's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. In connection with our audit,we determined that the District did not meet any of the criteria of a deteriorating financial condition described in Auditor General Rule Section 10.554(1)(i)(5).a. • Pursuant to Section 10.554(1)(i)5b.2, Rules of the Auditor General, if a deteriorating financial condition(s) is noted then a statement is so required along with the conditions causing the auditor to make such a conclusion. No such conditions were noted. • Pursuant to Section 10.554(1)(i)5.c., Rules of the Auditor General, requires a statement indicating a failure, if any, of a component unit Special District to provide financial information necessary to a proper reporting of the component unit within the audited financial statements of this District(F.S. Section 218.39(3)(b)). There are no known component special districts required to report within these financial statements. • Pursuant to Section 10.554(1)(i)6, Rules of the Auditor General, requires disclosure of certain unaudited data. See Exhibit 2. • Pursuant to Section 10.554(1)(i)7, Rules of the Auditor General, requires an independent special district that imposes ad valorem taxes to disclose certain related unaudited data. See Exhibit 2. 16181 Page 70 of 70 • Section 10.554(1)8,Rules of the Auditor General, requires an independent special district that imposes a non-ad valorem special assessment to disclose certain unaudited data. See Exhibit 2. • Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our audit to determine the Districts compliance with the provisions of Section 218.415, Florida Statutes,regarding the investment of public funds. In connection with our audit, we determined that the District complied with Section 218.415, Florida Statutes as reported in our Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes dated February 1, 2024, included herein. PRIOR YEAR COMMENTS: There were no financially significant prior year comments. CURRENT YEAR COMMENTS: There were no financially significant current year comments noted. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Board of Commissioners,management,the Auditor General of the State of Florida and other federal and state agencies. This report is not intended to be and should not be used by anyone other than these specified parties. 71 TUSCAN & COMPANY, P.A. Fort Myers, Florida February 1,2024 161B1 EXHIBIT 1 \MMOK4(FF 16 r s I F � E Immokaiee Fire Control District E ' ' 5368 Useppa Drive, Ave Maria, FL. 34142 Ave Maria Michael J. Choate, Fire Chief February 26, 2024 Auditor General's Office Local Government Audits/342 Claude Pepper Building, Room 401 111 West Madison Street Tallahassee, FL 32399-1450 In connection with the audit for the fiscal year ended 9-30-23, we are pleased to report there are no current or prior year comments. The District continues to refine and enhance financial reporting and compliance functions, and internal controls, policies and procedures. The Board of Fire Commissioners and management staff are committed to avoiding future possible comments and we maintain our assurance that future audits will reflect the actions we have taken. Sincerely, IMMOKALEE FIRE CONTROL DISTRICT Headquarters(239)657-2111 Fire Prevention(239)597-9227 Fax(239)657-9489 16 Bi EXHIBIT 2