Final Audit - 2024 IMMOKALEE WATER & SEWER DISTRICT
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
TOGETHER WITH ADDITIONAL REPORTS
YEARS ENDED
SEPTEMBER 30, 2024 AND 2023
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT...........................................................................................1-4
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A).......................................................I-VIII
BASIC FINANCIAL STATEMENTS
Statements of Net Position.................................................................................................................... 5
Statements of Revenues, Expenses, and Changes in Net Position........................................................ 6
Statements of Cash Flows..................................................................................................................... 7
Notes to the Financial Statements......................................................................................................... 8-37
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
Schedule of Revenues, Expenses and Changes in Net Position - Budget
(Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP
Basis - Year Ended September 30, 2024............................................................................................. 38-44
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…………………………………………………45-46
Independent Accountant's Report on Compliance with
Section 218.415, Florida Statutes……………………………………………………………………47
Independent Auditor's Report to Management………………………………………………….……48-52
Management's Response to the Independent Auditor's Report to Management………………………Exhibit 1
Florida Rules of the Auditor General - Rule 10.554(1)(i)6-8 Compliance - Unaudited………………Exhibit 2
HSC/Tuscan
& Company, PA
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
INTEGRITY ....... SERVICE ............. EXPERIENCE
1470 Royal Palm Square Blvd.• Fort Myers, FL 33919-1049
Phone: (239) 939-2233 • Fax: (239) 939-0554 • www.hsctuscan.com
INDEPENDENT AUDITOR’S REPORT
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
Opinion
We have audited the accompanying basic financial statements of the business-type activities of
Immokalee Water & Sewer District (an independent special district) (the "District") as of and for the
years ended September 30, 2024 and 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.
In our opinion, based on our audits, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the business-type activities of Immokalee Water &
Sewer District as of September 30, 2024 and 2023, and the respective changes in financial position and
cash flows thereof, for the years then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinion
We conducted our audits 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 audits. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinions.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the District's ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Board of Commissioners
Immokalee Water & Sewer District
Page 2
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with 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 - VIII be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information - management's discussion
and analysis (MD&A) in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information
Board of Commissioners
Immokalee Water & Sewer District
Page 3
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the required supplementary
information - management's discussion and analysis (MD&A) because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise Immokalee Water & Sewer District's basic financial statements. The required
supplementary information other than MD&A - budgetary comparison information - Schedule of
Revenues, Expenses and Changes in Net Position - Budget (Non-GAAP Budgetary Basis) and Actual
with Reconciliation to GAAP Basis - year ended September 30, 2024, is presented for purposes of
additional analysis and is not a required part of the basic financial statements. The required
supplementary information other than MD&A - budgetary comparison information - Schedule of
Revenues, Expenses and Changes in Net Position - Budget (Non-GAAP Budgetary Basis) and Actual
with Reconciliation to GAAP Basis - year ended September 30, 2024, is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the required supplementary information other than MD&A budgetary
comparison information - Schedule of Revenues, Expenses and Changes in Net Position - Budget
(Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP Basis - year ended September
30, 2024, 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
is required by Government Auditing Standards and/or Rules of the Auditor General, Section 10.554(i),
respectively. Such information has not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance
on it.
Other Reporting Required by Section 218.415, Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have also issued a report dated January 16,
2025, on our consideration of Immokalee Water & Sewer District's compliance with provisions of
Section 218.415, Florida Statutes. The purpose of that report is to describe the scope of our testing of
compliance and the results of that testing, and to provide an opinion on compliance with the
aforementioned Statute. That report is an integral part of an audit performed in accordance with
Sections 218.39 and 218.415, Florida Statutes in considering Immokalee Water & Sewer District's
compliance with Section 218.415, Florida Statutes.
Board of Commissioners
Immokalee Water & Sewer District
Page 4
Other Reporting Required by Government Auditins Standards
In accordance with Govemment Auditine Standards, we have also issued our report dated January 16,
2025, on our consideration of the District's intemal 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 intemal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the District's internal
control over financial reporting and compliance.
I I/*fru )t
HSC/TUSCAN & COMPANY, P.A
Fort Myers, Florida
January 16,2025
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2024
MDA I
The management of the Immokalee Water & Sewer District offers readers of our
financial statements the following narrative overview and analysis of our financial
activities for the year ended September 30, 2024.
Basic Financial Statements
Our basic financial statements are prepared using proprietary fund (enterprise fund)
accounting that uses the same basis of accounting as private-sector business enterprises.
The District is operated under one enterprise fund. Under this method of accounting, an
economic resources measurement focus and an accrual basis of accounting is used.
Revenue is recorded when earned and expenses are recorded when incurred. The basic
financial statements include a statement of net position, a statement of revenues, expenses
and changes in net position, a statement of cash flows, and a reconciliation of operating
profit (loss) to net cash provided by operating activities. These financial statements are
followed by notes to the financial statements. In addition to the basic financial
statements, this report also contains required supplementary information pertaining to
budgetary reconciliations.
The statement of net position presents information on the District's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position
of the District is improving or deteriorating.
The statement of revenues, expenses, and changes in net position reports the operating
revenues and expenses and nonoperating revenues and expenses of the District for the
fiscal year. The difference, the net income or loss, is combined with any capital grants to
determine the increase or decrease in net position for the fiscal year. The increase or
decrease, combined with the net position at the end of the previous year, total to the net
position at the end of the current fiscal year.
The statement of cash flows reports cash and cash equivalent activities for the fiscal year
resulting from operating activities, capital and related financing activities, noncapital and
related financing activities and investing activities. The net result of these activities added
to the beginning of the year cash balance, total to the cash and cash equivalent balance at
the end of the current fiscal year.
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2024
MDA II
2024 2023
Current and other assets 21,345,628$ 18,981,624$
Capital assets, net 59,317,324 59,129,680
Total assets 80,662,952$ 78,111,304$
Current liabilities 4,521,890$ 3,365,011$
Long-term liabilities 28,259,154 29,250,513
Total liabilities 32,781,044 32,615,524
Net position:
Net Investment in capital assets 30,262,509 29,096,323
Restricted 3,305,854 2,949,407
Unrestricted 14,313,545 13,450,050
Total net position 47,881,908 45,495,780
Total liabilities and net position 80,662,952$ 78,111,304$
Operating revenue:
Water service 5,148,198$ 4,598,844$
Wastewater service 7,311,558 6,570,231
Meter service charges 1,070,257 953,604
Late fees 164,083 167,046
Reconnection /transfer fee 139,725 134,803
Miscellaneous revenue 112,668 267,070
Cross connection control fees 491,821 474,518
Total operating revenues 14,438,310 13,166,116
Operating expenses:
Water treatment and distribution expense 3,292,291 2,907,341
Wastewater treatment expense 2,734,939 2,512,050
Wastewater collection expense 948,747 1,030,895
Customer service and administrative expense 2,253,802 2,561,572
Maintenance 605,927 554,303
Total operating expenses, excluding depreciation 9,835,706 9,566,161
Depreciation 2,542,168 2,536,348
Total operating expenses, including depreciation 12,377,874 12,102,509
Operating profit (loss) 2,060,436 1,063,607
Net nonoperating revenue/(expense) 19,250 (131,763)
Profit (loss) before capital grants 2,079,686 931,844
Capital grants and contributions 306,442 1,348,900
Increase (Decrease) in net position 2,386,128 2,280,744
Net position, beginning of year 45,495,780 43,215,036
Net position, end of year 47,881,908$ 45,495,780$
(Continued)
September 30,
Condensed Financial Statement
Condensed financial information from the statements of net position and revenues, expenses and changes in net position
for the years ended September 30, 2024 and 2023 are as follows:
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2024
MDA III
The information contained in the condensed financial information table is used as the
basis for the discussion presented on the following pages, surrounding the District's
activities for the fiscal year ended September 30, 2024.
Financial Highlights
The District completed a rate study and adopted the related rate increase of 9.5%
per year for FY23-25. Rate increases are effective on October 1.
The District ended the year September 30, 2024, with a net position of
$47,881,908 of which $30,262,509 represented the net investment in capital
assets, $3,305,854 represents restricted net position and $14,313,545 was
unrestricted. The ending net position was $2,386,128 more than the net position at
the beginning of the year. This was primarily the result of the implementation of
the previous rate increases.
The District ended the year September 30, 2023, with a net position of
$45,495,780 of which $29,096,323 represented the net investment in capital
assets, $2,949,407 represented restricted net position and $13,450,050 was
unrestricted. The ending net position was $2,280,744 more than the net position at
the beginning of the year. This was primarily the result of the implementation of
the rate increases.
The District had profit before capital contributions, for the years ended September
30, 2024 and 2023 of $2,079,686 and $931,844, respectively.
The District had minimized interest expense, because of utilizing low interest
bonds/loans for capital projects funded through USDA Rural Development.
These interest rates range from 2.0% to 4.0% in FY 23. During FY 22, the
District paid off 2 bond issues and refinanced 5 others to lower the annual debt
service and reduce interest costs. The new Refunding Series 2022 bond has a
fixed 4% interest rate. Now bond interest rates range from 2% to 4%. District
projects are financed through a combination of bonds, loans and grants.
The District ended the year September 30, 2024 with cash and cash equivalents
and investments of approximately $19,310,212. However, only $12,751,452 of
this amount is available for operations, with the remainder of these assets being
restricted for specific purposes and unavailable for the District's general use.
The District ended the year September 30, 2023 with cash and cash equivalents
and investments of approximately $16,758,602. However, only $12,172,394 of
this amount is available for operations, with the remainder of these assets being
restricted for specific purposes and unavailable for the District's general use.
The statement of cash flows identifies the sources and uses of cash activity for the
fiscal year. For fiscal year 2024, cash and cash equivalents increased by $736,760
compared to a decrease of $12,798,353 for the year ended September 30, 2023.
This change resulted primarily from less capital projects and the rate increase.
The servicing of the District's debt (principal and interest) resulted in the spending
of cash of nearly $1,774,339 and $1,802,712 for the years ended September 30,
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2024
MDA IV
2024 and 2023, respectively.
The statement of cash flows identifies the sources and uses of cash activity for the
fiscal year. For fiscal year 2023, cash and cash equivalents decreased by
$12,798,353 compared to a decrease of $223,918 for the year ended September
30, 2022. This change resulted primarily from the transferring of cash to
investments in the amount of $12,838,746. The servicing of the District's debt
(principal and interest) resulted in the spending of nearly $1,774,356.
Revenue
As in previous years, the wastewater service revenues make up half or more of the
operating revenues, accounting for 51% in 2024 and 50% in 2023. Water revenue
accounted for 36% in 2024 and 35% in 2023. Meter service charges, late fee charges,
reconnection fees, and miscellaneous revenues also remained constant between the two
years. Cross connection control fees were 3% in 2024 and 4% in 2023.
The District was successful in receiving an increase in the District boundaries by the
Florida Legislature, during the Spring 2005 session. This change in the boundaries is
expected to result in increased opportunities for new users, in future years. We will be
working on a revised capital improvement plan, in conjunction with the Immokalee
Master Plan, to identify the needs within the next fiscal year.
Expenses
Due to the significant investments the District has in capital assets, depreciation
continues to be one the largest operating expenses at 21% and 21% of total operating
expenses for the year ended September 30, 2024 and 2023, respectively. Unlike the other
expenses listed, depreciation is not a cash expense.
In FY 24 the administrative department was the third largest department at 18% of total
expense. The largest expense, in this department, other than salaries and benefits are
engineering and legal fees. The first largest department in FY 23, by expenses, was the
administration department. The related operating expenses was 21% of total expenses in
FY 23.
The water treatment and distribution departments consist of 27% and 24% of total
expenses for the years ended September 30, 2024 and 2023, respectively. The District is
programming a new advanced metering infrastructure project to use cellular data to read
meters from the office. This interactive technology will allow staff access to real time
data for customer inquiries on usage, quicker leak detection, efficient maintenance
planning and ultimately effective monitoring of the water system.
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2024
MDA V
The wastewater treatment department, by expenses, consist of 22% and 31% of total
operating expenses which remained constant between 2024 and 2023, respectively. This
department is one of the largest. One of the largest expenses, excluding salaries and
benefits, in this department is electric, which accounted for over $308,915 and $328,441
in expenses in 2024 and 2023, respectively.
The wastewater collection department consists of 8% and 9% of total expenses for the
years ended September 30, 2024 and 2023, respectively.
The smallest department is the maintenance department, which was created in fiscal year
2004 to reduce maintenance-related expenses from third-party vendors. It accounts for
5% and 5% of total operating expenses in 2024 and 2023, respectively. Labor costs in
this department, except for those relating to the supervisor, are charged to the appropriate
departments, based on the maintenance projects they are working on.
Wages and benefits account for 36% and 37% of the total operating expenses in 2024 and
2023, making it the largest expense category.
The District continues to monitor costs. The District considers cost of living increases
during the budget cycle and provides merit increases based upon performance
evaluations. The District follows best practices for water and wastewater systems in
promoting employees who meet specified criteria for certification and licensing. The
District bids out contracts for major expenses, such as health insurance, property
insurance, residuals management and chemicals. The District has an arrangement with
Collier County Fleet Management allowing the District to access their fuel tanks, located
in Immokalee, to take advantage of bulk-usage savings.
General Fund Budgetary Highlights
Over the course of the 2024 fiscal year the Board of Commissioners amended the District
budget. These budget amendments were done primarily to a) increase operating revenue,
and to b) increase operating expenses, capital funding primarily related to the District’s
projects, bond refinancing related costs and adjust designated funds.
Original to Final Budget Variance
For the fiscal year 2024 total operating revenues were increased by approximately
$46,458 more than originally budgeted, and total operating expenses, excluding
depreciation expense, were decreased by nearly $2,103,912.
Capital outlay – capital outlay was decreased by nearly $24,518,467.
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2024
MDA VI
Capital Assets
The District's net capital assets as of September 30, 2024 and 2023 amounted to
$59,317,324 and $59,129,680 (net of accumulated depreciation), respectively. This
investment in capital assets includes land, construction in progress, buildings and
improvements, water and wastewater plants and systems, and machinery and equipment.
Net capital asset additions included the following for the years ended September 30:
2024 2023
Construction in progress 1,199,902$ 2,548,992$
Land 1,028,794 -
Water and wastewater plants and systems 404,540 747,104
Machinery and equipment 96,576 99,415
2,729,812$ 3,395,511$
Construction in progress for 2024 was primarily for the clarifier project and clay pipe
replacement.
Construction in progress for 2023 was primarily for the clarifier project, clay pipe
replacement, improvements to the wastewater system and design/engineering for the new
administration building.
The District primarily acquires its assets with the proceeds from federal capital grants and
revenue bonds, supplemented by user fees. USDA Rural Development is the primary
source of proceeds, because they offer low interest loans for capital improvements. We
also received contributed capital in the form of new water and sewer infrastructure from
developers. New equipment purchases and a system expansion are part of the District's
capital improvement program. Capital purchases are acquired using bids, or Florida State
Contract prices.
Debt
As of September 30, 2024, the District had $28,521,300 of revenue bonds outstanding. The
total amount outstanding for this category of debt decreased by $889,500 in principal
payments by the District.
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2024
MDA VII
As of September 30, 2023, the District had $29,410,800 of revenue bonds outstanding. The
total amount outstanding for these categories of debt decreased, to reflect the principal
payments by the District of $865,200.
Unrestricted Net Assets
As of September 30, 2024, the District had designated $14,313,545 in unrestricted net
assets, as recommended by the auditor. The District designated $941,631 for emergencies,
$4,911,488 for operations, $607,483 for vehicle replacement, $1,000,000 for capital
equipment, $1,000,000 for future capital projects, and $5,852,944 for maintenance reserve.
As of September 30, 2023, the District had designated $13,450,050 in unrestricted net
assets, as recommended by their auditor. The District designated $941,631 for
emergencies, $4,800,738 for operations, $607,483 for vehicle replacement, $2,000,000 for
capital equipment and projects, and $5,100,198 for maintenance reserve.
Upcoming Significant Changes or Impacts
Rate Increases: October 1, 2024, was the last 9.5% rate increase pending an updated rate
study. The District has retained Raftelis Financial Consultants Inc to conduct the updated
analysis in 2025.
Additionally, Raftelis Financial Consultants Inc has been retained to perform an impact fee
study to consider implementation of impact fees beginning October 1, 2025.
New Development: There are several new non-profit developments under construction
including Fair Housing Alliance (128 units), Habit for Humanity (Kaicasa) (280 units),
Redlands Christian Migrant Association (RCMA) (daycare/charter school,
office/community center, 160 multifamily units). Other new non-profit developments via
Pulte Family Foundation and Catholic Charities are now in the permitting stages.
Williams Ranch, which includes an approved Planned Unit Development (PUD) for 366
dwelling units, is being purchased by Collier County. The County has indicated the PUD
will be used for workforce housing.
Alico has started the process to develop a Stewardship District for a new development in
the northwest quadrant of the District’s boundaries. The District and Alico are discussing
water & sewer infrastructure including new plants.
Capital Improvements: The District has begun implementation of the Smart Utility
project. Phase I for wastewater is nearly completed. To-date, four (4) sanitary sewer
overflows (SSOs) have been prevented by real-time detection and clearance of
blockages/obstacles. One (1) illegal discharge was detected, but District staff was not able
IMMOKALEE WATER & SEWER DISTRICT
Required Supplementary Information
Management's Discussion and Analysis
September 30, 2024
MDA VIII
to identify the contributor. Phase II encompassing the water distribution system will begin
mid-2025. New billing software is required to accommodate the data collection.
The Reuse/Reclaimed Water Treatment project is under design. Construction is anticipated
by the end of 2025.
The engineering design contract for the Water Softening Treatment is under negotiation.
Due to the detection of per- and polyfluoroalkyl (PFAS) substances, emerging contaminant
treatment is being rolled into the project. The District is requesting $21M in appropriations
for the PFAS improvements.
The District is entering into a Developer Cost Share Agreement for the upgrade of Lift
Station C to a Master Lift Station. Upgrades to an electrical panel and re-routing a force
main is required as part of this project. The work will begin in February 2025.
A feasibility study is underway to plan for a new water and wastewater treatment plant to
serve the northwest quadrant of the District’s boundaries.
Collier County Projects: Collier County is continuing to construct improvements via the
Tiger Grant. There are significant utility relocations associated with this project that the
District may be responsible for funding. The project is scheduled to be completed in 2025.
Lake Trafford Road Stormwater/Pedestrian/Bike Improvements – Collier County is still
planning to construct stormwater improvements to address severe flooding issues along
approximately 3 miles of Lake Trafford Road. The plans indicate that relocation of a water
main and sewer lines is necessary. This work has not started.
Request For Information
This financial report is intended to provide an overview of the finances of the District for
those with an interest in this organization. Questions concerning any information within
this report, may be directed to the Executive Director of the District, 1020 Sanitation Road,
Immokalee, Florida 34142.
IMMOKALEE WATER & SEWER DISTRICT
STATEMENTS OF NET POSITION
September 30, 2024 and 2023
2024 2023
ASSETS
CURRENT ASSETS
Cash 1,275,394$ 651,061$
Investments - CDs - 656,362
Investments - Cash Pools 11,476,058 10,864,971
Accounts receivable, net 913,834 803,378
Other receivables 16,866 14,023
Inventory 278,887 354,399
Deposits - 10,000
TOTAL CURRENT ASSETS 13,961,039 13,354,194
RESTRICTED ASSETS
Cash 2,744,003 2,631,576
Investments - Cash Pools 3,814,757 1,954,632
Grant and assessment receivables 825,829 1,041,222
TOTAL RESTRICTED ASSETS 7,384,589 5,627,430
CAPITAL ASSETS
Capital assets not being depreciated:
Land 3,674,735 2,645,941
Construction in progress 1,760,343 5,564,556
Capital assets being depreciated:
Buildings and improvements 1,730,742 1,821,026
Water and wastewater plants and systems 96,524,434 91,025,495
Machinery and equipment 3,808,350 3,711,774
Less:
Accumulated depreciation (48,181,280) (45,639,112)
59,317,324 59,129,680
TOTAL ASSETS 80,662,952$ 78,111,304$
The accompanying notes are an integral part of this statement.
Page 5 of 52
2024 2023
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts and contracts payable 362,386$ 597,072$
Other accrued expenses 80,769 67,985
Capital lease payable, current portion - 21,931
TOTAL CURRENT LIABILITIES 443,155 686,988
CURRENT LIABILITIES (Payable from Restricted Assets)
Unearned revenue 1,258,303 -
Revenue bonds payable, current portion 919,900 889,147
Loans payable - SRF, current portion 40,856 39,820
Accrued revenue bond interest 85,826 70,596
Customer deposits 1,773,850 1,678,460
TOTAL CURRENT LIABILITIES
(Payable from Restricted Assets) 4,078,735 2,678,023
LONG-TERM LIABILITIES
Revenue bonds payable, net of current portion 27,825,592 28,773,135
Loans payable - SRF, net of current portion 268,467 309,324
Capital lease payable, net of current portion - -
Accrued compensated absences 165,095 168,054
TOTAL LONG-TERM LIABILITIES 28,259,154 29,250,513
Commitments - -
TOTAL LIABILITIES 32,781,044 32,615,524
NET POSITION
Net investment in capital assets 30,262,509 29,096,323
Restricted 3,305,854 2,949,407
Unrestricted 14,313,545 13,450,050
TOTAL NET POSITION 47,881,908 45,495,780
TOTAL LIABILITIES AND NET POSITION 80,662,952$ 78,111,304$
IMMOKALEE WATER & SEWER DISTRICT Page 6 of 52
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Years ended September 30, 2024 and 2023
2024 2023
OPERATING REVENUES
Water service 5,148,198$ 4,598,844$
Wastewater service 7,311,558 6,570,231
Meter service charge 1,070,257 953,604
Late fees 164,083 167,046
Reconnect and transfer fees 139,725 134,803
Miscellaneous charges, fees and other income 112,668 267,070
Cross connection control fee 491,821 474,518
TOTAL OPERATING REVENUES 14,438,310 13,166,116
OPERATING EXPENSES
Water treatment 1,374,458 1,387,112
Water distribution 1,917,833 1,520,229
Wastewater treatment 2,734,939 2,512,050
Wastewater collection 948,747 1,030,895
Customer service and administrative 2,253,802 2,561,572
Maintenance 605,927 554,303
TOTAL OPERATING EXPENSES
PRIOR TO DEPRECIATION 9,835,706 9,566,161
Depreciation 2,542,168 2,536,348
TOTAL OPERATING EXPENSES 12,377,874 12,102,509
OPERATING PROFIT (LOSS) 2,060,436 1,063,607
NON-OPERATING REVENUES (EXPENSES)
Interest income 801,158 556,449
Gain (loss) on disposition of capital assets - 5,051
Interest expense (795,797) (823,804)
Bond issuance costs - -
Bad debt expense adjustment - (33,372)
Covid 19 expense - -
Other income 13,889 163,913
NET NON-OPERATING EXPENSES 19,250 (131,763)
PROFIT (LOSS) BEFORE CAPITAL
CONTRIBUTIONS 2,079,686 931,844
CAPITAL CONTRIBUTIONS
FDEP - grants 126,417 -
USDA - grants - 434,696
Customers 180,025 167,100
Developers - 747,104
TOTAL CAPITAL CONTRIBUTIONS 306,442 1,348,900
INCREASE (DECREASE) IN NET POSITION 2,386,128 2,280,744
NET POSITION - Beginning of the year 45,495,780 43,215,036
NET POSITION - End of the year 47,881,908$ 45,495,780$
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT
STATEMENTS OF CASH FLOWS
Years ended September 30, 2024 and 2023
2024 2023
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Cash received from customers 16,791,064$ 13,155,278$
Cash payments to suppliers and employees (10,944,660) (9,993,192)
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 5,846,404 3,162,086
CASH FLOWS FROM (USED IN) NONCAPITAL FINANCING:
Other income received 13,889 186,041
Bond issuance cost - -
NET CASH PROVIDED BY (USED IN)
NONCAPITAL FINANCING 13,889 186,041
CASH FLOWS FROM (USED IN) CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (2,729,812) (3,501,157)
Proceeds from sale of capital assets (gain) - 5,051
(Deposit) use of escrow for land purchase 10,000 (10,000)
Principal paid on revenue bonds (889,500) (865,200)
Principal paid on loans - SRF (39,821) (38,809)
Interest paid on bonds and other obligations (823,087) (854,842)
Proceeds from special assessment collections 77,868 77,882
Principal paid on capital lease (21,931) (43,861)
Capital contributions - developers - 747,104
Capital contributions - USDA 126,417 452,549
Membership/customer/developer connection fees/assessment 180,025 167,100
NET CASH PROVIDED BY (USED IN) CAPITAL
AND RELATED FINANCING ACTIVITIES (4,109,841) (3,864,183)
CASH FLOWS FROM (USED IN)
INVESTING ACTIVITIES:
Interest earned on investments 801,158 556,449
Maturity of CD's 656,362 -
Purchase of investments (2,471,212) (12,838,746)
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (1,013,692) (12,282,297)
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 736,760 (12,798,353)
CASH AND CASH EQUIVALENTS-
BEGINNING OF YEAR 3,282,637 16,080,990
CASH AND CASH EQUIVALENTS-
END OF YEAR 4,019,397$ 3,282,637$
The accompanying notes are an integral part of this statement.
Page 7 of 52
2024 2023
RECONCILIATION OF OPERATING PROFIT TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
OPERATING PROFIT (LOSS)2,060,436$ 1,063,607$
Adjustments to reconcile operating profit to
net cash provided by operating activities:
Depreciation (non cash) 2,542,168 2,536,348
Increase (decrease) in accrued compensated absences (non cash) (2,959) (5,841)
(Increase) decrease in accts. receivable, net of bad debt expense 24,226 (105,360)
(Increase) decrease in inventory 75,512 (124,520)
Increase (decrease) in accounts and contracts payable (234,686) (274,948)
Increase (decrease) in other accrued expenses 28,014 (23,987)
Increase (decrease) in unearned revenue 1,258,303 -
Increase (decrease) in customer deposits 95,390 96,797
TOTAL ADJUSTMENTS 3,785,968 2,098,489
NET CASH PROVIDED BY
OPERATING ACTIVITIES 5,846,404$ 3,162,096$
IMMOKALEE WATER & SEWER DISTRICT Page 8 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization
Immokalee Water & Sewer District (the "District") was created by Laws of Florida,
(Section) Chapter 78-494 on July 5, 1978, under the provisions of Florida Statutes,
Chapter 153.53 and 189.031 for the purpose of providing water and sewer services
to Immokalee, an unincorporated area of eastern Collier County, Florida. The
District's enabling legislation was repealed, updated, reenacted, and codified by Laws
of Florida, Chapter 98-495 on May 28, 1998. On July 1, 2005, Laws of Florida,
Chapter 2005-298 amended Laws of Florida, Chapter 98-495 by expanding the
District's boundaries. On June 10, 2015, Laws of Florida, Chapter 2015-205
amended Laws of Florida, Chapter 98-495 to provide for salaries/honorariums for
appointed District Board of Commissioner members up to $250 each per month.
On June 20, 2021, Laws of Florida, Chapter 2021-263 amended Laws of Florida,
Chapter 98-495 to allow Board member terms to be 4 years or until a successor is
appointed by the Governor.
Effective June 24, 2022, Laws of Florida 2022-258 amended, codified, reenacted
and repealed the previously approved District's Laws of Florida.
The District owns, operates, maintains and regulates its water and sewer plants and
systems as an independent special district of the State of Florida. The District is
governed by a seven (7) member Board of Commissioners appointed by the
Governor of the State of Florida. The Board of Commissioners (the "Board")
administers the District, independent from any other local governing body and serve
staggered four (4) year terms.
Reporting Entity
Immokalee Water & Sewer District is financially independent of all other units of
government. It is responsible for financing its own activities and the payment of its
own debt. The Board of Commissioners (the "Board") has the responsibility to
employ management that is responsible for the day-to-day operations of the District.
The Board has absolute authority over all funds included in the entity. Immokalee
Water & Sewer District is not a component unit of any other governmental unit.
IMMOKALEE WATER & SEWER DISTRICT Page 9 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Reporting Entity, continued
The District adheres to Statement of Governmental Accounting Standards Board
(GASB) Statement No. 14, "Financial Reporting Entity", as amended by GASB
Statement Number 39, "Determining Whether Certain Organizations Are Component
Units" and GASB Statement No. 61, "The Financial Reporting Entity: Omnibus - An
Amendment of GASB Statements No. 14 and No. 34". These Statements require
the financial statements of the District (the primary government) to include its
component units, if any. A component unit is a legally separate agency for which the
primary government is financially accountable or organizations whose exclusion would
cause the financial statements to be misleading because of the nature and significance
of their relationship with the primary government. Financial accountability is
determined by the primary government's ability to appoint the voting majority of the
District's Board, impose its will on the organization, the existence of a financial
benefit/burden relationship or fiscal dependency. Based on this criteria, there are no
component units included or required to be included in the District's financial
statements.
The Immokalee Water & Sewer District adheres to the requirements of
Governmental Accounting Standards Board Statement Number 33 "Accounting and
Financial Reporting for Non-Exchange Transactions." As such, capital related grant
revenue is recorded as non-operating revenue and is reflected on the Statements of
Revenues, Expenses and Changes in Net Position.
The following is a summary of the significant accounting polices used in the
preparation of these financial statements:
The District adheres to the requirements of Governmental Accounting Standards
Board Statement Number 34, "Basic Financial Statement and Management's
Discussion and Analysis for State and Local Governments" (GASB 34). The
government-wide financial statements along with the notes to the financial statements
and the RSI, as noted below comprise the basic financial statements.
The basic financial statements of the District are comprised of the following:
- Government-wide financial statements
- Notes to the financial statements
- Required supplementary information other than MD&A
IMMOKALEE WATER & SEWER DISTRICT Page 10 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government-Wide Financial Statements
The government-wide financial statements (i.e., the Statements of Net Position, the
Statements of Revenues, Expenses and Changes in Net Position and Statements of
Cash Flows) report information on all of the activities of the District and do not
emphasize fund types. These business-type activities comprise the primary
government. Business-type activities rely on user fees and charges to support its
activities rather than taxes and intergovernmental revenues. The purpose of the
government-wide financial statements is to allow the user to be able to determine if
the District is in a better or worse financial position than the prior year. The District
uses only one fund.
Government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange-like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets, and liabilities resulting from
nonexchange transactions are recognized in accordance with the requirements of
GASB Statement Number 33 "Accounting and Financial Reporting for Nonexchange
Transactions."
Amounts paid to acquire capital assets are capitalized as assets in the
government-wide financial statements, rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government-wide
financial statements, rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government-wide financial statements, rather than as
expenditures.
The Statements of Revenues, Expenses and Changes in Net Position demonstrates
the degree to which the direct expenses of a given function are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include: 1) charges to customers or
applicants who purchase, use or directly benefit from goods, services, or privileges
provided by a given function and 2) grants and contributions that are restricted to
meeting the operational or capital improvements of a particular function.
IMMOKALEE WATER & SEWER DISTRICT Page 11 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Government-Wide Financial Statements, continued
Operating revenues are considered to be revenues generated by services performed
and/or by fees charged such as water and sewer usage, connection, inspection fees
and flow testing.
Budgetary Information
As required, the District uses only one fund to account for its activities and, therefore,
it is considered a major fund. The District has elected to report budgetary
comparison of its major fund as required supplementary information (RSI).
Fund Accounting
The District's financial practices are based upon fund accounting concepts. A fund is
defined as a fiscal and accounting entity with a self-balancing set of accounts,
recording cash and other financial resources, together with all related liabilities and net
assets (fund equity balances) and changes therein.
The accompanying financial statements reflect Business - Type Activities and are
classified as a single Proprietary Fund Type - Enterprise Fund. This fund accounts
for the cost of services provided by the District as well as the revenues earned by the
District.
Business - Type Activities - Proprietary Fund Type
Enterprise Fund - An enterprise fund is used to account for operations (1) that are
financed and operated in a manner similar to private business enterprises where the
intent of the governing body is that the costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or (2) where the governing body has
decided that periodic determination of revenues earned, expenses incurred, and/or
net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
IMMOKALEE WATER & SEWER DISTRICT Page 12 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Measurement Focus
Proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, assets and liabilities associated with the
operation of these funds are included on the statements of net position. Proprietary
fund-type operating statements present increases (i.e. revenues) and decreases (i.e.
expenses) in total net position. Operating revenues and expenses result from
providing water distribution as well as wastewater collection and treatment to
members within the District's boundaries. Generally, other revenues and expenses
are treated as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the
District's policy to use restricted resources first, then unrestricted resources as they
are needed.
Basis of Accounting
The proprietary fund type is presented on the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recorded in the period earned and expenses
are recorded in the period the liability is incurred.
Budgetary Process
The District operates under a fixed budget for control purposes. The budget and
amendments, if any, are approved by the Board of Commissioners. The budget is
prepared on a Non-GAAP accrual basis, whereby items such as capital expenditures
and debt principal payments are budgeted as expenses.
The annual budget serves as the legal authorization for expenditures. Expenditures
cannot legally exceed the total amount budgeted. All budget amendments, which
change the legally adopted total appropriation, are approved by the Board.
The District follows these procedures in establishing budgetary data.
1. During the summer of each year, management submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
October 1. The operating budget includes proposed expenditures and the means
of financing them.
IMMOKALEE WATER & SEWER DISTRICT Page 13 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Budgetary Process, continued
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these financial statements, are as originally adopted
or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America, except as reflected in the
supplementary information and as noted above.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
The Board of Commissioners did amend the budget during the fiscal year ended
September 30, 2024, to decrease total budgeted net revenue by $21,729,618 and a
decrease in budgeted expenses (including net non-operating revenue and expense) by
$21,729,618.
Cash
For the purpose of the Statements of Cash Flows, the District considers all highly
liquid investments, including both unrestricted and restricted, with a maturity of three
months or less, when purchased, to be a cash equivalent, in accordance with District
policy.
Accounts Receivable/Allowance for Doubtful Accounts
Receivables include user fees for water and wastewater services provided as part of
the operations by the District. The accounts receivable are recorded net of the
estimated allowance for doubtful accounts. The District operates using an allowance
and collection policy that ultimately provides for discontinuance of water service due
to nonpayment by the user. The policy also provides for application of the respective
user's security deposit upon certain criteria.
IMMOKALEE WATER & SEWER DISTRICT Page 14 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Inventory
Inventory consists of utility system parts and hardware supplies at year end. The
inventories are valued at cost, which approximates net realizable value. The method
used to determine the value of the inventory is the FIFO (first in-first out) method.
Capital Assets and Depreciation
Capital assets acquired by proprietary funds are reported in those funds at historical
cost or estimated historical cost if actual historical cost is not available.
Donated assets are reported at estimated fair market value at the time received.
Certain infrastructure-type fixed assets consisting of certain improvements such as
roads, curbs, gutters and lighting systems have not been capitalized, as the District
does not generally incur such expenditures. However, the systems' distribution and
collection lines and pumps are capitalized and depreciated as part of the overall
system. Assets acquired with a cost or fair value of $5,000 or more and a useful life
of 1 year or more are capitalized. Maintenance, repairs and minor renovations are
not capitalized. The acquisition of land and construction projects utilizing resources
received from Federal and State agencies are capitalized when the related
expenditure is incurred.
The capital assets are depreciated using the straight-line method of depreciation over
the following estimated useful lives:
Asset Years
Buildings/Plant and Plant Equipment 10-40
Capital Improvements, Distribution Lines 5-40
Furniture, Fixtures and Equipment 3-20
Vehicles 3-7
Restricted Assets
These monies are restricted by the applicable debt covenants and grant agreements or
as customer deposits.
IMMOKALEE WATER & SEWER DISTRICT Page 15 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Vacation Leave
Accumulated unpaid vacation pay is accrued when incurred in the proprietary fund.
The District provides for the measurement of accrued vacation leave using the
pay or salary rates in effect at the balance sheet date. It also requires additional
amounts to be accrued for certain salary related payments associated with the
payment of compensated absences such as FICA and retirement benefits only.
Accrued unused vacation is accrued and paid at termination. Accrued unused sick
time is not paid at termination.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because at
present it is not considered necessary to assure budgetary control or to facilitate
effective cash planning and control.
Membership (Connection) Fees
Water (connection) service installation fees are dedicated for the system expansion
and are treated as contributed capital but recognized as revenue when received (due
to the District) by the District.
Income Taxes
The District, as a governmental unit, is exempt from income taxes under current
provisions of the Internal Revenue Code and Florida State Law.
Fund Equity
Grants, entitlements or shared revenues which are externally restricted for capital
acquisition or construction are treated as contributed capital but recorded as revenue
when due to the District. Contributed or donated fixed assets are also treated as
contributed capital but recorded as revenue when due the District. Reserved retained
earnings represent those portions of fund equity legally restricted by debt covenants
for current and future debt service.
IMMOKALEE WATER & SEWER DISTRICT Page 16 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Use of Estimates
The preparation of basic financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Reclassifications
Certain amounts in the financial statements have been reclassified to conform with the
current year presentation. These reclassifications had no effect on the results of
operations or net assets.
Subsequent Events
Subsequent events have been evaluated through January 16, 2025, which is the date
the basic financial statements were available to be issued.
Application of FASB Pronouncements to Proprietary Funds
In accordance with Governmental Accounting Standards Board (GASB) Statement
No. 20, "Accounting and Financial Reporting for Proprietary Funds and Other
Governmental Entities That Use Proprietary Fund Accounting", the District has
elected not to apply those FASB Statements and Interpretations issued after
November 30, 1989. Only GASB pronouncements issued after this date will be
adopted by the District.
Accounting Pronouncement GASB Statement No. 42
The District adheres to Government Accounting Standards Board Statement No. 42,
"Accounting and Financial Reporting for Impairment of Capital Assets and for
Insurance Recoveries" (GASB Statement No. 42). GASB Statement No. 42
establishes accounting and financial reporting standards for impairment of capital
assets.
IMMOKALEE WATER & SEWER DISTRICT Page 17 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
Accounting Pronouncement GASB Statement No. 42, continued
A capital asset is considered impaired when its service utility has declined significantly
and unexpectedly. Governments are required to evaluate prominent events or
changes in circumstances affecting capital assets to determine whether impairment of
a capital asset has occurred. Such events or changes in circumstances that may be
indicative of impairment include evidence of physical damage, enactment or approval
of laws or regulations or other changes in environmental factors, technological
changes or evidence of obsolescence, changes in the manner or duration of a capital
asset, and construction stoppage. A capital asset generally should be considered
impaired if both (a) the decline in service utility of the capital asset is large in
magnitude and (b) the event or change in circumstance is outside the normal life cycle
of the capital asset.
The District incurred no capital asset impairment activity for the years ended
September 30, 2024 and 2023.
Leases
During fiscal year ended September 30, 2023, the District adopted GASB Statement
87 - Leases. This Statement required the recognition of certain lease assets and
liabilities in the Statements of Net Position for leases that previously were classified as
operating leases. The District determined their current operating lease agreements to
be immaterial and/or did not meet the recording criteria. Therefore, there was no
effect from GASB Statement 87 at September 30, 2024 or 2023.
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, 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.
IMMOKALEE WATER & SEWER DISTRICT Page 18 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES, CONTINUED
New Accounting Guidance, continued
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
years ended September 30, 2024 or 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 years ended September 30,
2024 or 2023. The District, however, had no arrangements that met this Statement's
reporting criteria and/or the related arrangement costs were considered immaterial.
NOTE B - CASH AND INVESTMENTS
At September 30, 2024 and 2023, cash and cash equivalents (including both
restricted and unrestricted cash and cash equivalents) were $4,019,397 and
$3,282,637 respectively, including unrestricted cash on hand of $3,400 and
$3,400, respectively.
Deposits
The District's deposit policy allows deposits to be held in demand deposits, savings
accounts, certificates of deposit, direct obligations of the U.S. Treasury, Local
Government Surplus Trust Funds, direct obligations of Federal agencies and
IMMOKALEE WATER & SEWER DISTRICT Page 19 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE B - CASH AND INVESTMENTS, CONTINUED
Deposits, continued
instrumentalities and money market accounts. All cash deposits are held in qualified
public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for
Public Deposits Act."
Deposits consist of the following at September 30:
Insured/ Bank Carrying
Collateralized Balance Amount
September 30, 2024
Unrestricted
Depository accounts 931,028$ 931,028$ 718,520$
Money market 553,474 553,474 553,474
1,484,502 1,484,502 1,271,994
Restricted
Depository accounts 1,769,054 1,769,054 1,769,054
Money market 974,949 974,949 974,949
2,744,003 2,744,003 2,744,003
4,228,505$ 4,228,505$ 4,015,997$
September 30, 2023
Unrestricted
Depository accounts 763,282$ 763,282$ 647,312$
Money market 349 349 349
763,631 763,631 647,661
Restricted
Depository accounts 1,648,709 1,648,709 1,645,863
Money market 985,713 985,713 985,713
2,634,422 2,634,422 2,631,576
3,398,053$ 3,398,053$ 3,279,237$
Unrestricted and Restricted Deposits
The District's deposits were categorized to give an indication of the level of risk
assumed by the District at year-end. All deposits were fully insured by Federal
Depository Insurance or collateral pursuant to the Public Depository Act (Florida
Statute 280). As such, the District resolved to abide by Florida Statute 218.415(17).
IMMOKALEE WATER & SEWER DISTRICT Page 20 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE B - CASH AND INVESTMENTS, CONTINUED
Restricted Deposits
Restricted deposits are required by the District's outstanding debt agreements as well
as grant and other agreements. Restricted deposits also include customer deposits.
Restricted deposits (carrying amounts) consist of the following at September 30:
2024 2023
Construction account/Clarifier 60$ 57$
Bond sinking fund reserve 831,712 708,839
Department of Environmental Protection-
Deep Well Injection Reserve* 10,392 249,466
Customer deposits 1,769,054 1,645,863
Loan debt service 48,431 25,104
Special assessment - ArrowHead 57,962 1,889
Special assessment - SR 29 26,392 358
2,744,003$ 2,631,576$
*At September 30, 2024, the Deep Well Injection bank account balance was
$10,392. The District held sufficient unrestricted cash to properly fund this account
in its other general operating accounts at September 30, 2024. Once the District was
informed by the Auditors during this audit of the need to hold and fully fund the
reserve in a separate account, the account was immediately properly funded.
Investments
Florida Statutes and the District's investment policy authorize investments in
certificates of deposit (CD's). Certificates of deposit whose values exceed the
amount of the Federal Depository Insurance are collateralized pursuant to the Public
Depository Security Act of the State of Florida. The District had $0 and
$656,362 (bank and book balance) invested in certificates of deposit at September
30, 2024 and 2023, respectively. The CDs carried interest rates of 2.96% at
September 30, 2023. The CDs matured on June 18, 2024, and were not renewed.
Florida Statutes and the District's investment policy also authorize investments in local
government surplus investment pools.
IMMOKALEE WATER & SEWER DISTRICT Page 21 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE B - CASH AND INVESTMENTS, CONTINUED
Investments, continued
The District's investments in the three (3) local government surplus investment pools
consist of the following at September 30:
Fair Value (NAV)/
Cost Carrying
2024 Basis Amount
Local Government Surplus Trust Fund (SBA)
(LGIP) Prime 6,609,440$ 6,609,440$
Florida Surplus Asset Fund Trust (FL SAFE)
Stable Net Asset Value 2,171,530 2,171,530
Florida Cooperative Liquid Assets Security System
(FLCLASS)
Prime-Style Fund 6,509,845 6,509,845
Total investments 15,290,815$ 15,290,815$
Fair Value (NAV)/
Cost Carrying
2023 Basis Amount
Local Government Surplus Trust Fund (SBA)
(LGIP) Prime 6,254,095$ 6,254,095$
Florida Surplus Asset Fund Trust (FL SAFE)
Stable Net Asset Value 2,057,897 2,057,897
Florida Cooperative Liquid Assets Security System
(FLCLASS)
Prime-Style Fund 4,507,611 4,507,611
Total investments 12,819,603$ 12,819,603$
The Local Government Surplus Funds Trust Fund (Florida PRIME (formerly Fund
"A")) is an external 2a7-like investment pool, administered by the Florida State
Board of Administration. The Local Government Surplus Funds Investment Pool
Trust Fund is not categorized as it is not evidenced by securities that exist in physical
or book entry form. The Local Government Surplus Trust Funds Investment Pool's
(LGIP) shares are stated at amortized cost (NAV), which approximates fair value.
These investments are subject to the risk that the market value of an investment,
collateral protecting a deposit or securities underlying a repurchase agreement, will
decline. The District's investment in the Fund represented less than 1% of the Fund's
total investments. Investments held in the Fund include, but are not limited to,
short-term federal agency obligations, treasury bills, repurchase agreements and
commercial paper. These short-term investments are stated at amortized cost, which
approximates market. Investment income is recognized as earned and is allocated to
participants of the Fund based on their equity participation.
IMMOKALEE WATER & SEWER DISTRICT Page 22 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE B - CASH AND INVESTMENTS, CONTINUED
At September 30, 2024, the District reported SBA investments of $6,609,440 fair
value/cost for amounts held in Florida PRIME. The Florida PRIME carried a credit
rating of AAAm by Standard and Poors and had a weighted average days to maturity
(WAM) of 39 days at September 30, 2024. The weighted average life (WAL) of
PRIME was 74 days at September 30, 2024.
The District adheres to GASB Statement No. 79 which requires the following
disclosures related to its Florida PRIME investment:
Redemption Gates: Chapter 218.409(8)(a), Florida Statutes, states that “The
principal, and any part thereof, of each account constituting the trust fund is
subject to a payment at any time from the moneys in the trust fund. However,
the Executive Director of the fund may, in good faith, on the occurrence of an
event that has a material impact on liquidity or operations of the trust fund, for
48 hours limit contributions to or withdrawals from the trust fund to ensure that
the board can invest moneys entrusted to it in exercising its fiduciary
responsibility. Such action must be immediately disclosed to all participants. The
Trustees, the Joint Legislative Auditing Committee, the Investment Executive
Director have instituted such measures to review the necessity of those measures.
If the Trustees are unable to convene an emergency meeting before the
expiration of the 48-hour moratorium on the contributions and withdrawals, the
moratorium may be extended by the Executive Director until the Trustees are able
to meet to review the necessity for the moratorium. If the Trustees agree with
such measures, the Trustees shall vote to continue the measures for up to an
additional 15 days. The Trustees must convene and vote to continue any such
measures before the expiration of the time limit set, but in no case may the time
limit set by the Trustees exceed 15 days.”
Foreign Currency Risk: Prime was not exposed to any foreign risk during the
period October 1, 2023 to September 30, 2024.
Liquidity Fees: Florida Statute 218.409(4) provides authority for the SBA to
impose penalties for early withdrawal, subject to disclosures in the enrollment
materials of the amount and purpose of such fees. At September 30, 2024, no
such disclosure has been made.
Redemption Fees: As of September 30, 2024, 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.
IMMOKALEE WATER & SEWER DISTRICT Page 23 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE B - CASH AND INVESTMENTS, CONTINUED
Fair Value: The cost and carrying value of the cash, cash equivalents, and
investments held by the District approximate fair value and as such are reported at
amortized cost.
Security Lending: PRIME did not participate in a securities lending program
during the year October 1, 2023 through September 30, 2024.
PRIME audited financial statements for the year ended June 30, 2024, are
available online.
At September 30, 2024, the District held investments of $6,509,845 in the Florida
Cooperative Liquid Assets Securities System (FL CLASS), a local government
investment pool organized under the laws of the State of Florida pursuant to Florida
Statutes (FS) 163.01 and is an authorized investment under FS 218.415, is
presented at Net Asset Value (NAV), which reflects fair value. The objectives of FL
CLASS are to generate investment income while maintaining safety and liquidity.
There are no restrictions or terms and conditions on the District in redeeming the
investment and the District has no unfunded commitments related to this investment.
General Description: According to the Governmental Accounting Standards
Board (GASB), in order for an investment pool to qualify for the use of
amortized cost accounting for financial reporting purposes, it must meet all the
criteria listed in GASB Statement No. 79. FL CLASS is managed as stable value
NAV pool, while FL CLASS Enhanced Cash is managed with a floating NAV,
but FL CLASS does not meet all of the specific criteria outlined in GASB 79
Paragraph 4, therefore the District reports this investment in the pool at fair value.
Fair Value: FL CLASS measures this investment at fair value and therefore, the
District's investment in this pool is not required to be categorized within the fair
value hierarchy for purposes of paragraph 81a(2) of Statement 72.
FL CLASS is rated by S&P Global Ratings. The current rating is "AAAm." FL
CLASS Enhanced Cash is rated by Fitch Ratings. The current rating is
'AAAf/S1.'
Custodial Credit Risk: FL CLASS is an external investment pool and therefore is
not subject to custodial credit risk; the investment in this pool is exempt from the
reporting requirement.
IMMOKALEE WATER & SEWER DISTRICT Page 24 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE B - CASH AND INVESTMENTS, CONTINUED
Interest Rate Risk: The dollar weighted average days to maturity (WAM) of FL
CLASS at September 30, 2024, was 30 days and the weighted average life
(WAL) was 83 days.
A "AAAM" rating by S&P Global Ratings is obtained after S&P evaluated a number
of factors including credit quality, market prices exposure, and management. Ratings
are subject to change and do not remove credit risk.
Weighted Average Maturity (WAM) calculates the average number of days until
maturity for a portfolio of securities. WAM uses the next interest rate reset date, call
dated or put date in the calculation and therefore should always be less than or equal
to weighted average life (WAL).
Weighted Average Life (WAL) calculates the average number of days until maturity
for a portfolio of securities using the stated maturity date for all securities, including
variable rate, callable or puttable securities.
The FL CLASS financial audit is available at: http://www.FLCLASS.com
At September 30, 2024, the District also held $2,171,530 in the Florida Surplus
Asset Fund Trust (FL SAFE) Stable NAV, a local government investment pool. FL
SAFE is organized pursuant to Florida Statutes (FS) 163.01 and is an authorized
investment under FS 218.415. The Indenture of Trust provides for the creation of
multiple separate investment portfolios called "Series" within the FL SAFE and sets
forth the manner in which the Series can be created and managed. Currently FL
SAFE is a liquid stable net asset value $1.00 fund (Stable NAV), a variable net asset
value fund (Variable NAV). FL SAFE is governed by a Board of Trustees consisting
of representatives from its local government members. The Administrator is Florida
Management and Administrative Services, LLC, and the Investment Advisor is
Prudent Man Advisors, LLC.
The FL SAFE Stable NAV Fund is a liquid money market-like investment rated
AAAm by Standard & Poor's. The fund invests in high-quality fixed income
investments with a weighted average maturity of less than 60 days and a weighted
average life not to exceed 120 days. It seeks to maintain, but does not guarantee, a
constant net asset value at $1.00 per share. The FL SAFE Variable NAV Fund
invests in high-quality fixed income investments with an average maturity of about one
year. It is rated AAAf/S1 by Standard & Poor's.
IMMOKALEE WATER & SEWER DISTRICT Page 25 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE B - CASH AND INVESTMENTS, CONTINUED
The District has no unfunded commitments to FL SAFE, FL CLASS or Florida
PRIME, and is allowed daily redemptions and investments with a 1-day minimum
holding period.
Following is a discussion of the various risks applicable to the District's FL CLASS
and FL SAFE investments and how the District responds to those risks.
Interest Rate Risk: Interest rate risk exists when changes in interest rates could
adversely affect an investment's fair value. When interest rates rise, the value of
fixed rate securities fall. The District manages its exposure by adhering to
FS 218.415(17).
Credit Risk: Credit quality risk results from potential default of investments that
are not financially sound. The District assures the credit quality of its portfolio by
investing in state-approved investment pools and U.S. government/agency
securities. In addition, the investment policy requires specific ratings for
investments in money market funds, bankers' acceptances, and state/local
government obligations. The District manages its exposure by adhering to
FS 218.415(17).
Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in
event of the failure of the counterparty, the District will not be able to recover the
value of its investment or collateral securities that are in the possession of an
outside party. The District limits this risk by permitting investments permitted by
FS 218.415(17).
Concentration of Credit Risk: Concentration of credit risk is the risk of loss
attributable to the dollar amount of investments with a single issuer. The District
limits this risk by limiting investments permitted by FS 218.415(17).
Foreign Currency Risk: Foreign currency risk is the risk that changes in exchange
rates will adversely affect the fair value of an investment. The District's investment
policy limits investments to investments permitted by FS 218.415(17).
The Fund does not invest in derivatives, asset backed commercial paper or
mortgage backed securities.
The Fund management believes it is exempt from GASB 72 fair value hierarchy
disclosures.
The FL SAFE financial audit is available at: http://FLASAFE.org
IMMOKALEE WATER & SEWER DISTRICT Page 26 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE C - ACCOUNTS RECEIVABLE, NET
Accounts receivable, net, consist of the following at September 30:
2024 2023
Customer receivables (water/sewer) 1,003,098$ 892,642$
Less allowance for doubtful accounts (89,264) (89,264)
Net receivables 913,834$ 803,378$
Bad debt expense was $0 and $33,372 for the years ended September 30, 2024
and 2023, respectively.
NOTE D - GRANT AND ASSESSMENT RECEIVABLES
Grant and assessment receivables consisted of the following at September 30:
2024 2023
Grant receivable 705$ 138,230$
Special Assessments 825,124 902,992
825,829$ 1,041,222$
The District levied a special assessment of $1,060,900 on system users benefiting
from the system improvements (ArrowHead) funded by the $4,932,000 Series 2013
Revenue Bonds during the year ended September 30, 2014. The assessment
collections are restricted to principal reduction of the Series 2013 Revenue Bonds.
The assessment was initially levied through the Collier County Tax Collector on
November 1, 2013. The assessment is a one time assessment payable in full or over
20 years by the affected system users. The special assessment had the following
activity for the years ended September 30:
2024 2023
Balance, beginning of year 530,444$ 583,489$
Assessment levied - -
Collections (53,032) (53,045)
Balance, end of year 477,412$ 530,444$
The District levied a special assessment of $496,731 on system users benefiting from
system improvements on State Road 29 during the year ended September 30, 2019.
The assessment was initially levied through the Collier County Tax Collector on
IMMOKALEE WATER & SEWER DISTRICT Page 27 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE D - GRANT AND ASSESSMENT RECEIVABLES, CONTINUED
November 1, 2018 (FY19). The assessment is a one time assessment payable in full
or over 20 years by the affected system users. The special assessment had the
following activity for the years ended September 30:
2024 2023
Balance, beginning of year 372,548$ 397,385$
Assessment levied - -
Collections (24,836) (24,837)
Balance, end of year 347,712$ 372,548$
NOTE E - CAPITAL ASSET ACTIVITY
The following is a summary of changes in capital asset activity for the year ended
September 30, 2024:
Balance Balance
October 1 Adjustments/ September 30
2023 Additions Retirements Reclassifications 2024
Capital Assets Not
Being Depreciated:
Land 2,645,941$ 1,028,794$ -$ -$ 3,674,735$
Construction in Progress 5,564,556 1,199,902 - (5,004,115) 1,760,343
Total Capital Assets Not
Being Depreciated 8,210,497 2,228,696 - (5,004,115) 5,435,078
Capital Assets
Being Depreciated:
Buildings & Improvements 1,821,026 - - (90,284) 1,730,742
Water and Wastewater
Plant and Systems 91,025,495 404,540 - 5,094,399 96,524,434
Machinery & Equipment 3,711,774 96,576 - - 3,808,350
Total Capital Assets
Being Depreciated 96,558,295 501,116 - 5,004,115 102,063,526
Less Accumulated
Depreciation:
Buildings & Improvements (1,038,465) (47,936) - - (1,086,401)
Plant and Systems (42,595,269) (2,443,235) - - (45,038,504)
Machinery & Equipment (2,005,378) (50,997) - - (2,056,375)
Total Accumulated Depreciation (45,639,112) (2,542,168) - - (48,181,280)
Capital Assets, Net 59,129,680$ 187,644$ -$ -$ 59,317,324
Related debt (29,054,815)
Net Investment in Capital Assets 30,262,509$
IMMOKALEE WATER & SEWER DISTRICT Page 28 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE E - CAPITAL ASSET ACTIVITY, CONTINUED
The depreciation expense for the years ended September 30, 2024 and 2023, was
$2,542,168 and $2,536,348, respectively. During the years ended September 30,
2024 and 2023, the District continued construction on its system-wide
improvements.
During the year ended September 30, 2018, the District early implemented GASB
Statement No. 89, "Accounting for Interest Cost Incurred Before the End of a
Construction Period". The implementation of the pronouncement requires the interest
cost incurred before the end of a construction period be recognized as an expense in
the period in which the cost is incurred for financial statement prepared using the
economic resources measurement focus. As a result, no interest costs were
capitalized on the project for fiscal years ended September 30, 2024 and 2023.
NOTE F - RETIREMENT PLANS
Plan Description and Provisions
Section 401(a) Plan
The District had historically offered all its employees the opportunity to participate in
an individual government employer-sponsored defined contribution 414(h) Money
Purchase Pick-Up Retirement Plan and Trust (the "Plan"). Effective January 1, 2009,
the District restated its retirement plan. As such, the restated plan qualifies as a
401(a) Money Purchase defined contribution plan. The Plan is administered by a
third party administrator. The employer funds substantially all the administrative costs
of the Plan.
The Plan allows all employees to participate after three (3) months creditable
employment. Employees who elect to participate must contribute three (3%) percent
of their gross wages, excluding overtime compensation, up to $3,000. If the
employee desires to defer more than $3,000 they can defer those amounts into the
available IRC Section 457 Plan. The employer is required to contribute six (6%)
percent of the respective participating employees' gross wages, excluding overtime
compensation. Employer contributions into the 401(a) Plan are only required for
those participating employees who contribute three (3%) of their gross wages, as
defined. During the years ended September 30, 2024, 2023, and 2022, the District
contributed 100% of its required contributions.
IMMOKALEE WATER & SEWER DISTRICT Page 29 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE F - RETIREMENT PLANS, CONTINUED
Plan Description and Provisions, continued
Section 401(a) Plan
The District's gross contributions (employer portion) to the Plan for the years ended
September 30, 2024, 2023, and 2022, were $167,904, $169,897 and $156,771
respectively. Employee contributions to the Plan were $86,243, $76,759 and
$85,337, respectively for the years ended September 30, 2024, 2023, and 2022,
respectively. There were no forfeitures used to reduce employer contributions.
Benefits available are limited to the value of the respective employee's individual
account. Individuals direct the investment of their individual account. Benefits vest at
a rate of twenty (20%) percent per year of creditable service and vest in full after five
years of creditable service. A creditable year of service is defined as a year in which
an eligible participant completes 1,000 hours of service. Employees immediately vest
in their contributions. Normal retirement shall be considered to be attainment of age
55 and completion of five (5) creditable years of service. Employees who fail to
complete five (5) years creditable service vest in their respective accounts at twenty
(20%) percent per completed year of creditable service. The Plan requires
retirement at April 1 following the date the participant reaches age 70 1/2. The Plan
provides that forfeitures of employer contributions by non-vested terminated
employees are to be used to offset future employer contributions. Therefore,
employer contributions made to employee accounts who fail to complete the
respective year revert back to the employer. Benefits available to the employee
from the Plan are those generated from the respective employees account. The
employees account may lose principal. The District has no liability for losses, if
any, incurred by the plan. Loans to participants are permitted from the participant's
specific account. Participants should refer to the complete plan document for
specific detail of the Plan.
Section 457 Plan
Effective November 1, 2012, the District approved a resolution to establish a
Deferred Compensation Plan to be made available to all eligible District employees
pursuant to Section 457 of the Internal Revenue Code (IRC). The Plan is
administered by a third party administrator. The employer funds substantially all
administrative costs of the Plan. All contributions made to the Plan are voluntary
deductions from employees' wages, with no contributions to the Plan made by the
District. Employees are eligible to participate after 3 months employment and
attainment of age 18. Deferral amounts are limited per IRS Code Section
457(e)(15). For the year ended September 30, 2024, the deferral limit to the Plan
was $23,500. Employees are immediately vested in their salary deferral amounts.
IMMOKALEE WATER & SEWER DISTRICT Page 30 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE G - REVENUE BONDS PAYABLE
The following is a summary of the District's revenue bonds payable for the years
ended September 30:
Amount
Balances - September 30, 2022 30,276,000$
Principal retired (865,200)
Bonds issued -
Balances - September 30, 2023 29,410,800
Principal retired (889,500)
Bonds issued -
Balances - September 30, 2024 28,521,300
Issuance premium - unamortized 224,192
28,745,492$
Revenue Bonds payable is comprised of the following at September 30:
2024 2023
$4,932,000 Series 2013, Water and Sewer Revenue
Bonds, issued March 1, 2013, through USDA Rural
Development. Principal and interest are payable
annually beginning September 1, 2016, through
September 1, 2052; interest payable annually at the rate
of 2.5%; collateralized by the gross operating revenues
of the system and a special assessment levied on the
lands benefited by the system. 4,368,000$ 4,434,000$
$17,134,000 Series 2018 A & B, Water and Sewer
Revenue Bonds, issued May 3, 2018, through USDA
Rural Development. Interest only due September 1,
2018, then principal and interest are payable annually
beginning September 1, 2019, through September 1,
2057; interest payable annually at the rate of 2.25%;
collateralized by the gross operating revenues of the
system and a special assessments levied on the lands
benefited by the system. 15,362,000 15,674,000
$9,570,000 Refunding Bonds Series 2022, issued May
12, 2022, through US Bank to refund the Series 1989,
1996, 1998, 2001 and 2008 USDA Rural Development
Bonds. Principal is payable annually beginning
September 1, 2022, and semi-annual interest payable
each March 1 and September 1, beginning September
1, 2022, through September 1, 2042; interest payable at
the rate of 4%; collateralized by the gross operating
revenues of the system. 7,880,000 8,375,000
IMMOKALEE WATER & SEWER DISTRICT Page 31 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
2024 2023
$944,000 Series 2022, Water and Sewer Revenue
Bonds, issued June 25, 2022, through USDA Rural
Development. Interest only due September 1, 2022,
then principal and interest are payable annually
beginning September 1, 2023, through September 1,
2062; interest payable annually at the rate of 2.00%;
collateralized by the gross operating revenues of the
system. These bonds were issued at a premium of 911,300 927,800
$280,761.
28,521,300 29,410,800
Less: Current portion (due in one year) (919,900) (889,147)
Long-term portion 27,601,400 28,521,653
Plus: Unamortized premium on refunding 224,192 251,482
Balance, less current portion 27,825,592$ 28,773,135$
Bond Resolutions
The bond resolutions established certain accounts and determined the order in
which certain revenues are to be deposited into those accounts. In addition, there
are various other covenants established by the respective bond official statements
and District resolutions, including such items as debt service coverage, reporting
requirements, and maintenance of facilities. The bond issues require certain sinking
fund balances be maintained. At September 30, 2024, the District had fully
funded the sinking fund via 3 separate cash accounts. Management believes that
it has complied, in all material respects, with these covenants. All Reserve
balances at September 30, 2024 and 2023, are reflected as restricted deposits
within these financial statements.
IMMOKALEE WATER & SEWER DISTRICT Page 32 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE G - REVENUE BONDS PAYABLE, CONTINUED
Bond Resolutions
A summary of revenue bond debt service requirements to maturity is as follows
September 30:
Years Ending
September 30 Principal Interest Total
2025 903,000$ 770,045$ 1,673,045$
2026 948,805 758,938 1,707,743
2027 984,144 728,089 1,712,233
2028 1,015,490 696,000 1,711,490
2029 1,050,843 662,850 1,713,693
2030 - 2034 6,174,767 2,788,132 8,962,899
2035 - 2039 4,363,725 1,921,049 6,284,774
2040 - 2044 3,823,729 1,322,594 5,146,323
2045 - 2049 3,503,890 894,856 4,398,746
2050 - 2054 3,587,329 475,743 4,063,072
2055 - 2059 2,064,179 106,314 2,170,493
2060 - 2062 101,399 4,124 105,523
28,521,300 11,128,734 39,650,034
Premium 224,192 - 224,192
28,745,492$ 11,128,734$ 39,874,226$
Revenue bond debt interest expense was $814,704 and $845,439 for the years
ended September 30, 2024 and 2023, respectively. No revenue bond debt interest
expense was capitalized in either year.
The District paid a premium of $280,761 when it issued the 2022 refunding bonds.
As such, it is amortizing the premium over 20 years (the life of the related bonds).
The District recognized amortization expense of $27,290 and $28,356 for the years
ended September 30, 2024 and 2023, respectively. Accumulated amortization at
September 30, 2024 and 2023 was $56,568 and $29,249, respectively.
IMMOKALEE WATER & SEWER DISTRICT Page 33 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE H - LOANS PAYABLE - SRF
The following is a summary of the District's loans payable activity for the year
ended September 30:
DEP.SRF DEP.SRF
DW110120 DW110121 Total
Balance-September 30, 2022 216,899$ 171,054$ 387,953$
Principal retired (21,588) (17,221) (38,809)
Balance-September 30, 2023 195,311 153,833 349,144
Principal retired (22,177) (17,644) (39,821)
Balance-September 30, 2024 173,134$ 136,189$ 309,323$
The loans payable - SRF activity for the year ended September 30 is as follows:
2024 2023
$419,681 loan payable representing 15% of a grant/loan payable to Florida
Department of Environmental Protection. The maximum amount of the loan is
$2,735,112, in which the FDEP has forgiven $2,324,845 of the note. The loan
also required the District to capitalize interest of $9,414 during the year
ended September 30, 2011. Interest accrues at 2.71%. Principal and interest is
payable in forty (40) semi-annual payments of $13,660 in May and November
beginning November 15, 2011. Final payment due May 2031. The loan is
collateralized by the gross operating revenues of the system and
assessments levied on the lands benefited by the system. 173,134$ 195,311$
$335,504 loan payable to Florida Department of Environmental Protection.
The loan requires forty (40) semi-annual payments of $10,637 in November
and May beginning November 15, 2011. The loan required the District to
capitalize interest of $7,346 during the year ended September 30, 2011. Final
payment date May 2031. Interest accrues at 2.43%. The loan is collateralized
by the gross operating revenues of the system and assessments levied on
the lands benefited by the system. 136,189 153,833
Total loans payable 309,323 349,144
Less current portion: (40,856) (39,820)
268,467$ 309,324$
IMMOKALEE WATER & SEWER DISTRICT Page 34 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE H - LOANS PAYABLE - SRF, CONTINUED
Years Ending
September 30 Principal Interest Total
2025 40,856$ 7,739$ 48,595$
2026 41,920 6,675 48,595
2027 43,010 5,584 48,594
2028 44,131 4,465 48,596
2029 45,280 3,316 48,596
2030 - 2031 94,126 3,064 97,190
309,323$ 30,843$ 340,166$
Loans payable - SRF related interest expense was $8,383 and $9,403 for the
years ended September 30, 2024 and 2023, respectively. No loan interest costs
were capitalized in either year.
NOTE I - CAPITAL LEASE
On October 31, 2018, the District entered into a sixty (60) month, 0% interest
capital lease agreement, for the lease of eight (8) vehicles, in the amount of
$219,307. Monthly payments are $3,655 plus monthly maintenance fees.
Payments began in April, 2019 with final payment due in March 2024. The lease
agreement is collateralized by the respective eight (8) vehicles. The lease has
been extended on a month-to-month basis until the District can obtain
replacement vehicles in FY25.
The following is a summary of the District's capital lease payable for the years
ended September 30:
Amount
Balances - September 30, 2022 65,792$
Proceeds -
Principal payments (43,861)
Balances - September 30, 2023 21,931
Proceeds -
Principal payments (21,931)
Balances - September 30, 2024 -$
The cost of capital assets under lease was $219,307 at September 30, 2024. The
accumulated depreciation was $219,307 and the current year depreciation expense
was $21,931 on those capital assets.
IMMOKALEE WATER & SEWER DISTRICT Page 35 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE I - CAPITAL LEASE, CONTINUED
A summary of capital lease debt service requirements to maturity is as follows at
September 30:
Principal Interest Total
-$ -$ -$
-$ -$ -$
Interest expense related to the capital lease was $0 and $0 for the years ended
September 30, 2024 and 2023, respectively.
NOTE J - ACCRUED COMPENSATED ABSENCES
Employees of the District are entitled to paid vacation based on length of service and
job classification at termination. Unused accrued sick time is not paid at termination.
Accrued compensated absences had the following activity for the year ended
September 30:
Amount
Accrued compensated absences,
September 30, 2022 173,895$
Net decrease (5,841)
Accrued compensated absences,
September 30, 2023 168,054
Net decrease (2,959)
Accrued compensated absences,
September 30, 2024 165,095$
NOTE K - CONTINGENCIES
Litigation
The District, from time to time, is involved as a defendant or a plaintiff in certain
litigation and claims arising in the ordinary course of operations. As such, the District
maintains third party insurance coverages. In the opinion of legal counsel, the range
of potential recoveries or liabilities will not materially affect the financial position of the
District. The District intends to vigorously defend all claims unless first settled.
Potential losses, if any, may be recoverable through insurance coverages.
2025
Years Ending
September 30
IMMOKALEE WATER & SEWER DISTRICT Page 36 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE K - CONTINGENCIES, CONTINUED
Federal Grants
Grant monies received by the District are for specific purposes and are subject to
review by the grantor agencies. Such audits may result in requests for reimbursement
due to disallowed expenditures. Based upon prior experience, the District does not
believe that such disallowances, if any, would have a material effect on the financial
position of the District.
The operations of the District are dependent upon the condition of the District's
facilities. These facilities are currently being rehabilitated and improved substantially
through the receipt of federal funding. Loss or reduction of such funding would have
a material effect on the operations of the District.
NOTE L - NET POSITION (NET ASSETS)
Restricted net assets consist of the following at September 30:
2024 2023
Restricted assets 7,384,589$ 5,627,430$
Less: liabilities payable from restricted cash (4,078,735) (2,678,023)
3,305,854$ 2,949,407$
Unrestricted net assets consist of the following at September 30:
2024 2023
Designated for emergencies 941,631$ 941,631$
Designated for operations 4,911,487 4,800,738
Designated for vehicle replacement 607,483 607,483
Designated for capital equipment 1,000,000 1,000,000
Designated for future capital projects 1,000,000 1,000,000
Designated for maint. reserve - wastewater 1,000,000 -
Designated for maint. reserve - water 4,852,944 5,100,198
Total Designated 14,313,545 13,450,050
Undesignated - -
Total unrestricted net assets 14,313,545$ 13,450,050$
IMMOKALEE WATER & SEWER DISTRICT Page 37 of 52
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2024 and 2023
NOTE M -RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to
and destruction of assets; errors and omissions; injuries to employees, and natural
disasters.
Insurance programs for general/professional liability, automobile, and property are
through commercial insurance. The District retains the risk of loss, on insured claims,
up to a deductible amount (ranging from 0% to 5% of total insured value depending
on the type of loss) with the risk of loss in excess of this amount transferred to the
insurance carrier. Limits of general liability are $1,000,000 per occurrence. The
District is third party insured for employee health as well as workers' compensation.
NOTE N - COMMITMENTS
On June 30, 2023, the District entered into an agreement to purchase land for future
construction of an administrative building. The purchase price was approximately
$1,025,000, contingent on the District being able to obtain a use permit and gaining
approval to relocate power lines. As of September 30, 2023, a $10,000 deposit was
placed by the District in escrow toward the purchase of this parcel of land. The
purchase closed during the year ended September 30, 2024.
As noted above, the District intends to construct a new administrative building on the
site in the future. As of September 30, 2024, the District has expended $182,061 in
preconstruction and clean up costs. The District has no immediate plan to begin
construction.
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
IMMOKALEE WATER & SEWER DISTRICT Page 38 of 52
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS
Year ended September 30, 2024
Original Final
Budget Budget Actual Variance
OPERATING REVENUES
Water service 5,116,510$ 5,148,198$ 5,148,198$ -$
Wastewater service 7,333,006 7,311,558 7,311,558 -
Meter service charge 957,177 1,070,257 1,070,257 -
Late fees 161,386 164,083 164,083 -
Reconnect and transfer fees 135,059 139,725 139,725 -
Miscellaneous charges, fees and other income 220,000 119,195 112,668 (6,527)
Cross connection control fee 475,241 491,821 491,821 -
TOTAL OPERATING REVENUES 14,398,379 14,444,837 14,438,310 (6,527)
OPERATING EXPENSES
WATER TREATMENT
Salaries and wages 345,054 340,870 340,456 414
Overtime 17,521 14,996 14,996 -
FICA 27,737 27,224 27,224 -
Unemployment taxes 1,777 227 227 -
Employer pension contribution 20,703 20,194 20,194 -
Health/life insurance 93,065 108,713 109,126 (413)
Workers' compensation 3,776 2,850 2,850 -
Engineering services - 2,018 2,018 -
Travel and training 14,000 3,354 3,354 -
Telephone and fax 7,529 8,271 8,271 -
Electric 210,181 216,675 216,675 -
General liability insurance 12,780 13,013 13,013 -
Comprehensive auto insurance 2,309 2,348 2,348 -
Other insurance 40,447 68,227 68,227 -
Equipment maintenance 2,222 357 357 -
Repairs and maintenance 291,841 189,580 189,580 -
Other contract services 18,939 20,871 20,871 -
Vehicle fuel 7,407 9,351 9,351 -
Vehicle maintenance 2,272 3,177 3,177 -
Vehicle Lease - - - -
Diesel Fuel - Vehicle 1,354 5,510 5,510 -
Office expense 13,428 1,014 1,014 -
Licenses and permits 574 75 75 -
Chemicals 126,759 177,463 177,463 -
Other materials 81,701 81,743 81,729 14
Tools 1,550 220 220 -
Safety and security 16,389 30,441 30,441 -
Laboratory fees 28,059 24,535 24,535 -
Uniforms/clothing allowance 1,800 1,013 1,013 -
Memberships/periodicals/books 1,000 143 143 -
SUB-TOTAL WATER TREATMENT 1,392,174 1,374,473 1,374,458 15
accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 39 of 52
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2024
Original Final
Budget Budget Actual Variance
WATER DISTRIBUTION
Salaries and wages 620,736 611,092 611,152 (60)
Overtime 44,100 38,761 38,761 -
FICA 50,860 48,511 48,511 -
Unemployment taxes 3,258 567 567 -
Employer pension contribution 37,244 36,101 36,101 -
Health/life insurance 280,581 217,518 217,458 60
Workers' compensation 9,441 8,016 8,016 -
Temporary Labor - 26,598 26,598 -
Engineering services 21,500 - - -
Travel and training 6,100 13,507 13,507 -
Telephone and fax - 5,844 5,844 -
Electric - - - -
General liability insurance 13,036 13,266 13,266 -
Comprehensive auto insurance 7,503 7,630 7,630 -
Other insurance 2,020 2,741 2,741 -
Repairs and maintenance 1,441,200 310,119 310,119 -
Water meter & registers replacement - - - -
Other contract services 12,500 11,374 11,374 -
Vehicle fuel 31,800 29,783 29,783 -
Vehicle maintenance 10,000 8,621 8,621 -
Vehicle Lease 300 2,851 2,851 -
Diesel Fuel - Vehicle 1,500 738 738 -
Licenses and permits 1,300 50 50 -
Office expense 4,000 2,263 2,263 -
Other materials 92,000 489,134 489,134 -
Tools 12,000 13,929 13,929 -
Safety and security 11,000 14,618 14,618 -
Laboratory fees - - - -
Uniforms/clothing allowance 4,425 3,428 3,428 -
Memberships/periodicals/books 1,600 773 773 -
SUB-TOTAL WATER DISTRIBUTION 2,720,004 1,917,833 1,917,833 -
SUB-TOTAL WATER PLANTS/DISTRIBUTION 4,112,178 3,292,306 3,292,291 15
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 40 of 52
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2024
Original Final
Budget Budget Actual Variance
WASTEWATER TREATMENT
Salaries and wages 647,383 612,952 612,952 -
Overtime 52,075 41,279 41,279 -
FICA 53,508 48,898 48,898 -
Unemployment taxes 3,295 511 511 -
Employer pension contribution 38,843 35,607 35,607 -
Health/life insurance 190,504 186,341 186,341 -
Workers' compensation 7,930 6,056 6,056 -
Other professional services - - - -
Engineering services - 35,318 35,318 -
Travel and training 28,000 7,113 7,113 -
Telephone and fax 4,980 2,778 2,778 -
Electric 368,897 308,915 308,915 -
Section 8 electric 3,853 3,492 3,492 -
General liability insurance 25,284 25,747 25,747 -
Comprehensive auto insurance 3,463 3,522 3,522 -
Other insurance 138,759 232,162 232,162 -
Repairs and maintenance 414,884 367,910 367,470 440
Other contract services 230,004 156,416 156,416 -
Vehicle fuel 3,734 3,385 3,385 -
Vehicle maintenance 4,863 7 7 -
Vehicle Lease 286 2,379 2,379 -
Diesel Fuel - Vehicle 5,205 9,242 9,242 -
Office expense 4,733 2,694 2,694 -
Licenses and permits 1,001 13,768 13,768 -
Chemicals 169,916 81,677 81,677 -
Other materials 38,369 14,492 14,492 -
Tools 1,500 - - -
Safety & security 12,532 24,549 24,549 -
Laboratory fees 90,014 53,589 53,589 -
Residuals management 359,175 437,786 450,333 (12,547)
Uniforms/clothing allowance 3,075 3,054 3,054 -
Memberships/periodicals/books 528 1,193 1,193 -
SUB-TOTAL WASTEWATER TREATMENT 2,906,593 2,722,832 2,734,939 (12,107)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 41 of 52
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2024
Original Final
WASTEWATER COLLECTION Budget Budget Actual Variance
Salaries and wages 399,859 351,678 351,678 -
Overtime 32,550 33,282 33,282 -
FICA 33,079 28,899 28,899 -
Unemployment taxes 2,119 327 327 -
Employer pension contribution 23,992 20,241 20,241 -
Health/life insurance 170,218 107,654 107,654 -
Workers' compensation 5,665 3,622 3,622 -
Other professional services - 1,268 1,268 -
Engineering services - - - -
Travel and training 21,000 4,519 4,519 -
Telephone and fax 3,500 6,267 6,267 -
Electric 67,963 60,367 60,367 -
General liability insurance 16,303 16,601 16,601 -
Comprehensive auto insurance 5,771 5,869 5,869 -
Other insurance 7,372 12,095 12,095 -
Repairs and maintenance 459,500 185,756 185,756 -
Other contract services 5,000 8,822 8,822 -
Vehicle fuel 10,350 10,253 10,253 -
Vehicle maintenance 16,000 5,250 5,250 -
Vehicle Lease 1,000 8,435 8,435 -
Diesel Fuel - Vehicle 4,000 4,366 4,366 -
Office expense 3,000 4,174 4,174 -
Licenses and permits 400 500 500 -
Chemicals 18,000 23,643 23,643 -
Other materials 30,000 27,714 27,856 (142)
Tools 3,000 988 988 -
Safety security 6,500 13,943 13,943 -
Uniforms/clothing allowance 2,175 1,754 1,754 -
Memberships/periodicals/books 674 318 318 -
SUB-TOTAL WASTEWATER COLLECTION 1,348,990 948,605 948,747 (142)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 42 of 52
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2024
Original Final
Budget Budget Actual Variance
CUSTOMER SERVICE / ADMIN
Salaries and wages 803,714 762,275 762,385 (110)
Overtime 10,500 13,855 13,835 20
FICA 62,287 51,540 51,540 -
Unemployment taxes 3,840 778 777 1
Employer pension contribution 47,143 37,537 37,537 -
Health/life insurance 263,154 215,342 215,252 90
Workers' compensation 10,763 6,765 6,765 -
Legal services 190,000 136,591 136,591 -
Other professional services 170,000 47,285 47,285 -
Accounting/auditing 45,000 41,750 41,750 -
Engineering services 700,000 473,913 473,913 -
Travel and training 40,280 24,188 24,188 -
Telephone and fax 5,000 2,431 2,431 -
Postage and freight 43,000 44,582 44,582 -
General liability insurance 12,951 13,168 13,168 -
Comprehensive auto insurance 577 587 587 -
Other insurance 45,335 51,553 51,553 -
Other contract services 130,000 179,021 179,021 -
Repairs and maintenance 6,000 7,119 7,119 -
Vehicle fuel 2,600 1,977 1,977 -
Vehicle maintenance 1,000 8 8 -
Vehicle Lease 1,000 3,654 3,654 -
Office expense 45,000 49,761 49,761 -
Miscellaneous bank fees 6,000 8,761 8,761 -
Miscellaneous expense 10,000 12,101 12,101 -
Arrowhead Assessment fees/discount 6,500 4,529 4,529 -
Community outreach programs 8,000 3,963 3,963 -
Advertising 93,000 26,718 26,718 -
Licenses and permits 200 1,130 1,130 -
Other materials - 961 961 -
Safety & security 12,800 19,866 19,866 -
Uniforms/clothing allowance 1,825 3,332 3,332 -
Memberships/periodicals/books 10,000 6,702 6,762 (60)
Hurricane Ian - Supplies - - - -
SUB-TOTAL CUSTOMER SERVICE / ADMIN 2,787,469 2,253,743 2,253,802 (59)
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 43 of 52
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year ended September 30, 2024
Original Final
Budget Budget Actual Variance
MAINTENANCE
Salaries and wages 381,346 307,634 307,633 1
Overtime 21,000 15,958 15,958 -
FICA 30,779 23,560 23,560 -
Unemployment taxes 1,971 227 227 -
Employer pension contribution 22,881 18,224 18,224 -
Health/life insurance 170,844 100,299 100,299 -
Workers' compensation 5,665 3,670 3,670 -
Temporary labor - 23,144 23,144 -
Travel and training 21,000 1,683 1,683 -
Telephone and fax 4,201 4,588 4,588 -
General liability insurance 10,460 10,645 10,645 -
Comprehensive auto insurance 8,080 8,217 8,217 -
Other insurance 2,343 3,714 3,714 -
Repairs and maintenance 5,500 18,657 19,096 (439)
Other contract services 4,000 3,717 3,717 -
Vehicle fuel 6,299 7,568 7,568 -
Vehicle maintenance 40,000 12,803 12,803 -
Diesel Fuel - Vehicle 1,000 719 719 -
Vehicle lease 700 8,802 8,802 -
Licenses and permits 1,200 - - -
Chemicals - 4,887 4,887 -
Office expense 5,000 1,321 1,321 -
Other materials 15,513 16,497 16,497 -
Tools 5,000 535 535 -
Safety & security 3,000 6,371 6,371 -
Uniforms/clothing allowance 2,475 1,217 1,217 -
Memberships/periodicals/books 1,400 832 832 -
SUB-TOTAL MAINTENANCE 771,657 605,489 605,927 (438)
DEPRECIATION
Depreciation - - 2,542,168 (2,542,168)
SUB-TOTAL DEPRECIATION - - 2,542,168 (2,542,168)
TOTAL OPERATING EXPENSES 11,926,887 9,822,975 12,377,874 (2,554,899)
OPERATING PROFIT 2,471,492$ 4,621,862$ 2,060,436$ (2,561,426)$
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 44 of 52
SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION - BUDGET (NON-GAAP BUDGETARY BASIS) AND
ACTUAL WITH RECONCILIATION TO GAAP BASIS, CONTINUED
Year Ended September 30, 2024
Original Final
Budget Budget Actual Variance
OPERATING PROFIT,
BROUGHT FORWARD 2,471,492$ 4,621,862$ 2,060,436$ (2,561,426)$
NON-OPERATING REVENUES (EXPENSES)
Interest income 732,157 801,158 801,158 -
State Appropriations 6,800,000 - - -
Contributed capital - grant - FDEP - 1,384,720 126,417 (1,258,303)
Contributed capital - grant - USDA/FHA 15,341,500 - - -
Contributed capital - customers 70,000 180,025 180,025 -
Contributed capital - developers 70,000 - - -
Contributed capital - special assessments 77,882 - 77,868 77,868
Other non-operating revenue 18,350 15,700 13,889 (1,811)
Capital outlay (27,264,279) (2,745,812) (2,729,812) 16,000
Principal retirement - bonds (889,200) (889,500) (889,500) -
Principal retirement - SRF (39,820) (39,820) (39,820) -
Principal retirement - capital lease (21,931) (21,931) (21,931) -
Net Assets - brought forward 14,500,000 13,450,050 - (13,450,050)
Net Assets - carryforward (11,032,981) (15,935,525) - 15,935,525
Interest expense (826,170) (823,087) (795,797) 27,290
Bad debt expense (7,000) - - -
Gain (Loss) on disposal of capital assets - 2,160 - (2,160)
NET NON-OPERATING
REVENUES (EXPENSES)(2,471,492) (4,621,862) (3,277,503) 1,344,359
NET PROFIT (LOSS)-$ -$ (1,217,067)$ (1,217,067)$
Reconciliation:
Net profit (loss) (Non-GAAP Budgetary Basis) (1,217,067)$
Capital outlay 2,729,812
Principal retirement - bonds 889,500
Principal retirement - SRF 39,820
Principal retirement - capital lease 21,931
Capital contributions - special assessments (77,868)
Increase in Net Position (GAAP Basis) 2,386,128
Net position - beginning of the year 45,495,780
Net position - end of the year 47,881,908$
The accompanying notes are an integral part of this statement.
ADDITIONAL REPORTS
HSC/Tuscan
& Company, PA
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
INTEGRITY ....... SERVICE ............. EXPERIENCE
1470 Royal Palm Square Blvd.• Fort Myers, FL 33919-1049
Phone: (239) 939-2233 • Fax: (239) 939-0554 • www.hsctuscan.com
Page 45 of 52
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF
BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States of America, the basic financial
statements of the business-type activities of Immokalee Water & Sewer District (the "District")
which comprise the statement of net position as of September 30, 2024, and the related
statements of revenues, expenses and changes in net position and cash flows for the year then
ended and the related notes to the financial statements and have issued our report thereon dated
January 16, 2025.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Immokalee Water
& Sewer District's internal control over financial reporting (internal control) as a basis for designing
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of Immokalee Water & Sewer District's internal control. Accordingly, we do not
express an opinion on the effectiveness of the Immokalee Water & Sewer District's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the basic financial statements will not be prevented or detected and
Page 46 of 52
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 identifz all deficiencies in intemal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did not
identiff any deficiencies in internal control that we consider to be material weaknesses, as defined
previously. However, material weaknesses may exist that were not identified.
We, however, noted certain other matters that we have reported in our Report to Management
dated January 16,2025.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Immokalee Water & Sewer District's
financial statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grants, noncompliance with which could have
a direct and material effect on the financial statements. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance that are
required to be reported under Government Auditing S .
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District's intemal control or on compliance. This report is an integral part of an audit performed in
accordance with Govemment Auditine Standards in considering the District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
tBc /l*tK , D,/-
HSC/TUSCAN & COMPANY, P.A.
Fort Myers, Florida
January 16,2025
Page47 of52
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 2I8.4I FLORIDA STATUTES
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have examined Immokalee Water & Sewer District's compliance with Section2l8.4l5,
Florida Statutes, regarding the investment of public funds during the year ended September 30,
2024. Management is responsible for Immokalee Water & Sewer District's compliance with
those requirements. Our responsibility is to express an opinion on Immokalee Water & Sewer
District's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a test
basis, evidence about Immokalee Water & Sewer District's compliance with those requirements
and performing such other procedures as we considered necessary in the circumstances. We
believe that our examination provides a reasonable basis for our opinion. Our examination does
not provide a legal determination on Immokalee Water & Sewer District's compliance with
specifi ed requirements.
In our opinion, Immokalee Water & Sewer District complied, in all material respects, with the
aforementioned requirements for the year ended September 30,2024.
This report is intended solely for the information and use of the Immokalee Water & Sewer
District and the Auditor General, State of Florida, and is not intended to be and should not be
used by anyone other than these specified parties.
,) ,1,
HSC/TUSCAN & COMPANY, P.A
Fort Myers, Florida
January 16,2025
tl<cfirau-) / /*fru
HSC/Tuscan
& Company, PA
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
INTEGRITY ....... SERVICE ............. EXPERIENCE
1470 Royal Palm Square Blvd.• Fort Myers, FL 33919-1049
Phone: (239) 939-2233 • Fax: (239) 939-0554 • www.hsctuscan.com
HSC/Tuscan
& Company, PA
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
INTEGRITY ....... SERVICE ............. EXPERIENCE
1470 Royal Palm Square Blvd.• Fort Myers, FL 33919-1049
Phone: (239) 939-2233 • Fax: (239) 939-0554 • www.hsctuscan.com
Page 48 of 52
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
Immokalee Water & Sewer District
1020 Sanitation Road
Immokalee, Florida 34142
We have audited the accompanying basic financial statements of Immokalee Water & Sewer
District (the "District") as of and for the year ended September 30, 2024 and have issued our
report thereon dated January 16, 2025.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America and Chapter
10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report
on Internal Control over Financial Reporting and Compliance and Other Matters based on an
Audit of the Financial Statements Performed in Accordance with Government Auditing Standards.
Disclosures in that report, which is dated January 16, 2025, should be considered in conjunction
with this report to management.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter included the following information, which is not included in the aforementioned
auditor's report:
∙Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether
or not corrective actions have been taken to address findings and recommendations
made in the preceding annual financial audit report. Prior year comments that have not
been resolved are repeated and updated below.
∙Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. No such
recommendations were noted to improve financial management except as noted below.
Page 49 of 52
∙Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address
noncompliance with provisions of contracts or grant agreements, or abuse, that have an
effect on the financial statements that is less than material but more than inconsequential.
In connection with our audit, we did not have any such findings.
∙Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title
and legal authority for the primary government and each component unit of the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. The District discloses this information in the notes to the financial statements.
∙Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included
as to whether or not the local government entity has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific
condition(s) met. In connection with our audit, we determined that the District did not
meet any of the conditions described in Section 218.503(1), Florida Statutes.
∙Pursuant to Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, we
have applied financial condition assessment procedures. It is management's responsibility
to monitor the District's financial condition, and our financial condition assessment was
based in part on representations made by management and the review of financial
information provided by same. In connection with our audit, we determined that the
District did not meet any of the criteria of a deteriorating financial condition as
described in Auditor General Rule Section 10.554(1)(i)(5).a.
∙Pursuant to Section 10.544(1)(i)5.b.2., Rules of the Auditor General, if a deteriorating
financial condition(s) is noted then a statement is so required along with the conditions
causing the auditor to make such a conclusion. No such conditions were noted.
∙Pursuant to Section 10.554(1)(i)5.c., Rules of the Auditor General, requires a statement
indicating a failure, if any, of a component unit special district to provide financial
information necessary to a proper reporting of the component unit within the audited
financial statements of this entity (F.S. Section 218.39(3)(b)). There are no known
component special districts required to report within these financial statements.
∙Pursuant to Section 10.554(1)(i)7, Rules of the Auditor General, requires disclosure of
certain unaudited data. See Exhibit 2.
∙Pursuant to Section 10.554(1)(i)8, Rules of the Auditor General, requires an independent
special district that imposes ad valorem taxes to disclose certain related unaudited data.
See Exhibit 2.
Page 50 of 52
∙Section 10.554(l)9, Rules of the Auditor General, requires an independent special district
that imposes a non-ad valorem special assessment to disclose certain unaudited data. See
Exhibit 2.
∙Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our audit
to determine the entity's compliance with the provisions of Section 218.415, Florida
Statutes, regarding the investment of public funds. In connection with our audit, we
determined that the District complied with Section 218.415, Florida Statutes as
reported in our Independent Accountant's Report on Compliance with Section 218.415,
Florida Statutes dated January 16, 2025, included herein.
∙Section 10.557(3)(m), Rules of the Auditor General, requires a notarized affidavit,
related to impact fees, signed and sworn to be the Chief Financial Officer be included
in the audit report. No such affidavit is included as the District has not implemented any
Impact Fees.
PRIOR YEAR COMMENTS:
2022-2 Fixed Asset Listing Should Include Identifying Tag Number
During fixed asset observation, it was noted that the fixed asset listing provided did not
include the identifying tag number of the assets. The District does maintain a separate
listing of the fixed assets which includes the tag number, however this information was not
available on the fixed asset listing provided to us. We recommend that the fixed asset
listing should be modified to include the asset tag number to ensure compliance with
Florida Statutes and Florida Administrative Code 69I-73.
2023 Addendum
We continue to recommend that the fixed asset listing include the asset tag number.
2024 Addendum
The District's recently hired Finance Director is actively working on reviewing and
revising the District's capital asset records. As such, the District's capital asset records
are being reconciled to the physical inventory of assets and assets are being renumbered and
properly marked. The District is committed to having this issue resolved by end of
fiscal year 25. We expect this comment will be resolved in fiscal year 25.
2023-1 Commissioners Should be Bonded
The District's Enabling Act LOF 78-494 and LOF 2022-258 requires each member of
its Board of Commissioners to be bonded. The District currently has 6 Board seats filled.
We noted at September 30, 2023 one of the six Board members was not properly
bonded. We recommend the District immediately bond this Board member and ensure all
members are properly bonded in the future.
Page 51 of 52
2024 Addendum
The District currently has 5 Board seats filled. We noted at September 30, 2024, one of
the five Board members was not properly bonded. We recommend the District
immediately bond this Board member and ensure all members are properly bonded in the
future. It should be noted once the District was notified of the issue, the District initiated
the process of renewing the expired bond.
2023-2 Security Deposits Bank Account Should Be Kept Funded
During the audit, we noted the district was not funded in the security deposits bank
account to match the security deposits liability at fiscal year-end.
We recommend that the District client transfer money from other operating bank
accounts to the security deposits bank account to maintain a balance that meets the
amount of the liability.
2024 Addendum
We recommend that the District client transfer money from other operating bank
accounts to the security deposits bank account to maintain a balance that meets the
amount of the liability.
2023-3 Outstanding Checks Should be Investigated
During the audit, we noted the District had outstanding checks that were outstanding for
over twelve months.
We recommend that the District regularly investigate old outstanding checks and properly
dispose of the outstanding checks over twelve months old.
2024 Addendum
This comment appears to be resolved.
CURRENT YEAR COMMENTS:
No financially significant comments noted.
Page 52 of 52
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.
J /*o*t/4,;'lrru
HSC/TUSCAN & COMPANY, P.A.
Fort Myers, Florida
January 16,2025
EXHIBIT 1
l IM MOKALEE
WATER&SEWER
DISTRICT
Febtuary L2,2025
Sherrill F. Norman, CPA
Auditor General, state of Florida
claude Denson Pepper Building
111 West Madison Street
Tallahassee, Florida 32399-1450
Dear Ms. Norman I
This letter is in response to the Management Letter in the lmmokalee water and sewer District's Year
Ending September 30, 2024 audit, performed by Tuscan & company, P A., which was presented to and
accepted by the Board on February 12,2025.
PRIOR YEAR COMMENTS:
2022-2 Fixed Asset Listine Should lnclude ldentifvins Tas Number
During fixed asset observation, it was noted that the fixed asset listing provided did not include
the identifying tag number of the assets. The District does maintain a separate listing of the fixed
assets which includes the tag number; however this information was not available on the fixed
asset listing provided to us. We recommend that the fixed asset listing should be modified to
include the asset tag number to ensure compliance with Florida Statutes and Florida
Administrative Code 691-73.
2022 |WSD Response: fhe District is in the process of plqcing tog numbers on ossets ond recording the tag
numbers in the osset system, We will ensure that ony new toq numbers ploced on ossets ore odded to the
osset system in o timelY monner.
2023 Addendum We continue to recomm end that the fixed asset listin includes the asset taq number
2023 \WSD Response: The District is in the process of estobtishinq o numbering system for oll ossets -
fixed ond rolling stock. Numbers will be ploced on ossets and those numbers will be recorded by the osset
in the osset system.
2024 Ad dendum - The District's recentl y hired Finance Director is actively working on reviewing and
revising the District's capital asset records. As such, the District's capital asset records are being reconciled
to the physical inventory of assets and assets are being renumbered and properly marked. The District is
committed to having this issue resolved by end of fiscal year 25. we expect this comment will be resolved
in the fiscalyear 25.
2024 |WSD Response: District stoff, the FinOnce Director, ond Executive Director hove been reconciling the
osset inventory since 2024. The District onticipotes hoving the osset inventory reconciled by the end of the
second quarter of colendor yeot 2025. The Finonce Director is working weekly with the oudit teom to
ensure oll ossets ore recorded ond properly numbered. This issue is expected to be resolved in 2025.
IWSD Board of
Mr,lo6eph Erister
Chair
GoodniSht
Ms, Bonnie (een
Secretary
[4r. Robert Helman
Ms. Magda Ayala
HELPING YOUR LIFE FLOW
,
I
Io2o sanhation Road I l mmokale e, FL f4142 1 239'658'!630 l www'iw-sd'com
Morch 78,2024
lmmokolee Woter ond Sewer District Response to Monagement Letter
Audit for Year Ending September j0, 202j
Poge 2
*a IMMOKALEE
WATER&SEWER
DISTRICT
2023-t Commissioners Should be Bonded
The District's Enabling Act LOF 78-494 and LOF 2022-258 requires each member of
its Board of Commissioners to be bonded. The District currently has 6 Board seats filled.
We noted at Septembe r 30,2023 one of the six Board members was not properly
bonded. We recommend the District immediately bond this Board member and ensure all
members are properly bonded in the future.
2023 1WSD Response: The Commissioner's bond hos since been renewed retroactively to the expiration
date. Alt of the bonds for Commissioners ond executive monogement will be consolidated to one (1) bond
compony for efficiency in managing renewols. Currently, bonds are held with various componies moking it
difficult to monitor.
2024Addendum -The District currently has 5 Board seats filled. We noted at September 30,2024, one of
the five Board members was not properly bonded. We recommend the District immediately bond this
Board member and ensure all members are properly bonded in the future. lt should be noted once the
District was notified of the issue, the District initiated the process of renewing the expired bond.
2024 \WSD Response: The expired bond for the Commissioner hos been renewed. The Finance Director
discovered that the bonds were handled by different ogents at seporote offices even though they were
insured through one (1) company. All of the bonds have been consolidoted in one (1) office with one (1)
agent to ossure consistency with renewol. All of the bonds will be renewed ot that same time onnually.
2023-2 Securitv Deposits Bank Account Should Be Kept Funded
During the audit, we noted the district was not funded in the security deposits bank
account to match the security deposits liability at fiscal year-end. We recommend that the District client
transfer money from other operating bank accounts to the security deposits bank account to maintain a
balance that meets the amount of the liability.
2023 IWSD Response: The issue is a timing issue to year-end (September j0, 2023). The District was
between Finonce Directors ond stoff did not perform the monthly fund transfer from the revenue occount
to the security deposit occount and did not bolonce this with the generol ledger system (Cougor Mountoin)
and the billing system (BillMaster). A process will be mapped out to ensure staff understonds how the
systems should balonce monthly.
2024 Addendum - We recommend that the District client transfer money from other operating bank
accounts to the security deposits bank account to maintain a balance that meets the amount of the
liability.
2024 IWSD Response: The District will transfer security deposits on a weekly basis ratherthan monthly
with all new deposits.
ESTABLISHED IN 1978 lO2O Sanitation Road i lmmokalee, FL 34142 i: 239-658-363O i www.iw-sd.com
Morch 18, 2024
lmmokolee Wdter ond Sewer District Response to Monqgement Letter
Audit for Yeor Endinq September j0, 2023
Poge 3 *-
IM MOKALEE
WATER&SEWER
DISIRICT
2023 3 Outstandins Checks Should be lnvestieated
During the audit, we noted the District had outstanding checks that were outstanding for over twelve (12)
months. We recommend that the District investigate old outstanding checks and properly dispose of the
outstanding checks over twelve (12) months.
2023 IWSD Response: ln the post, the District hos used, ond will continue to use, the check register os o
log for oll outstondinq checks throuqhout the yeor. On o monthly bosis stoff will review oll outstonding
checks to communicote to consumers obout ony outstondinq checks older thon six (6) months. This will be
continued untilthe check becomes port of uncloimed propefty. At thot time, the district will void the check
ond send the money to the stote os port of the uncloimed property process
The District appreciates the efficient planning and performance of Tuscan & Company, P.A. during the
audit to obtain reasonable assurance about the District's basic financial statements as well as their
evaluation of the presentation of those statements. The District respects and values their effort, work
product, and feedback.
sincerely,
Sarah Catala, Executive Director Director
2024 Addendum - This comment appears to be resolved.
ESTABLISHED IN I978 IO2O Sanhation Road I lmmokalee I FL 34142 I 239-658-1630 I www'iw-5d'com
EXHIBIT 2
Page 1
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). 45
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). 3
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)
3,144,367$
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) 135,773$
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 - 9.
EXHIBIT 2
UNAUDITED
COMPLIANCE WITH REPORTING REQUIRED BY:
Page 2
Auditor General Rule 10.554(1)(i)7
For an independent special district that imposes ad valorem taxes, the following
specific information provided by management (with explanatory verbiage that the
auditor provides no assurance on the information): (see information required in
Section 218.32(1)(e)4., Florida Statutes).
a. The millage rate or rates imposed by the district. N/A
b. The current year gross amount of ad valorem taxes collected by or on behalf of
the district. N/A
c. The total amount of outstanding bonds issued by the district and terms of such
bonds. $ 28,521,300
Auditor General Rule 10.554(1)(i)8
For an independent special district that imposes non-ad valorem special assessments,
the following specific information provided by management (with explanatory
verbiage that the auditor provides no assurance on the information): (see information
required in Section 218.32(1)(e)5., Florida Statutes).
a. The rate or rated of such assessment imposed by the district. Initially levied in a
prior year and collected over 20 years.
SR 29 219$
Arrowhead 47$
b. The total amount of special assessments collected by or on behalf of the district.
Arrowhead $53,032 total for current year
SR 29 $24,836 total for current year
c. The total amount of outstanding bonds issued by the district and the terms of
such bonds. 28,521,300$
IMMOKALEE WATER & SEWER DISTRICT Page 3
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED -
Year ended September 30, 2024
Original
Budget Actual Variance
OPERATING REVENUES
Water service 5,116,510$ 5,148,198$ 31,688$
Wastewater service 7,333,006 7,311,558 (21,448)
Meter service charge 957,177 1,070,257 113,080
Late fees 161,386 164,083 2,697
Reconnect and transfer fees 135,059 139,725 4,666
Miscellaneous charges, fees and other income 220,000 112,668 (107,332)
Cross connection control fee 475,241 491,821 16,580
TOTAL OPERATING REVENUES 14,398,379 14,438,310 39,931
OPERATING EXPENSES
WATER TREATMENT
Salaries and wages 345,054 340,456 4,598
Overtime 17,521 14,996 2,525
FICA 27,737 27,224 513
Unemployment taxes 1,777 227 1,550
Employer pension contribution 20,703 20,194 509
Health/life insurance 93,065 109,126 (16,061)
Workers' compensation 3,776 2,850 926
Engineering services - 2,018 (2,018)
Travel and training 14,000 3,354 10,646
Telephone and fax 7,529 8,271 (742)
Electric 210,181 216,675 (6,494)
General liability insurance 12,780 13,013 (233)
Comprehensive auto insurance 2,309 2,348 (39)
Other insurance 40,447 68,227 (27,780)
Equipment maintenance 2,222 357 1,865
Repairs and maintenance 291,841 189,580 102,261
Other contract services 18,939 20,871 (1,932)
Vehicle fuel 7,407 9,351 (1,944)
Vehicle maintenance 2,272 3,177 (905)
Vehicle Lease - - -
Diesel fuel - vehicle 1,354 5,510 (4,156)
Office expense 13,428 1,014 12,414
Licenses and permits 574 75 499
Chemicals 126,759 177,463 (50,704)
Other materials 81,701 81,729 (28)
Tools 1,550 220 1,330
Safety and security 16,389 30,441 (14,052)
Laboratory fees 28,059 24,535 3,524
Uniforms/clothing allowance 1,800 1,013 787
Memberships/periodicals/books 1,000 143 857
SUB-TOTAL WATER TREATMENT 1,392,174 1,374,458 17,716
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 4
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2024
Original
Budget Actual Variance
WATER DISTRIBUTION
Salaries and wages 620,736 611,152 9,584
Overtime 44,100 38,761 5,339
FICA 50,860 48,511 2,349
Unemployment taxes 3,258 567 2,691
Employer pension contribution 37,244 36,101 1,143
Health/life insurance 280,581 217,458 63,123
Workers' compensation 9,441 8,016 1,425
Temporary Labor - 26,598 (26,598)
Engineering services 21,500 - 21,500
Travel and training 6,100 13,507 (7,407)
Telephone and fax - 5,844 (5,844)
Electric - - -
General liability insurance 13,036 13,266 (230)
Comprehensive auto insurance 7,503 7,630 (127)
Other insurance 2,020 2,741 (721)
Repairs and maintenance 1,441,200 310,119 1,131,081
Water meter & registers replacement - - -
Other contract services 12,500 11,374 1,126
Vehicle fuel 31,800 29,783 2,017
Vehicle maintenance 10,000 8,621 1,379
Vehicle Lease 300 2,851 (2,551)
Diesel fuel - vehicle 1,500 738 762
License and permits 1,300 50 1,250
Office expense 4,000 2,263 1,737
Other materials 92,000 489,134 (397,134)
Tools 12,000 13,929 (1,929)
Safety and security 11,000 14,618 (3,618)
Laboratory fees - - -
Uniforms/clothing allowance 4,425 3,428 997
Memberships/periodicals/books 1,600 773 827
SUB-TOTAL WATER DISTRIBUTION 2,720,004 1,917,833 802,171
SUB-TOTAL WATER PLANTS/DISTRIBUTION 4,112,178 3,292,291 819,887
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 5
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2024
Original
Budget Actual Variance
WASTEWATER TREATMENT
Salaries and wages 647,383 612,952 34,431
Overtime 52,075 41,279 10,796
FICA 53,508 48,898 4,610
Unemployment taxes 3,295 511 2,784
Employer pension contribution 38,843 35,607 3,236
Health/life insurance 190,504 186,341 4,163
Workers' compensation 7,930 6,056 1,874
Other professional services - - -
Engineering services - 35,318 (35,318)
Travel and training 28,000 7,113 20,887
Telephone and fax 4,980 2,778 2,202
Electric 368,897 308,915 59,982
Section 8 electric 3,853 3,492 361
General liability insurance 25,284 25,747 (463)
Comprehensive auto insurance 3,463 3,522 (59)
Other insurance 138,759 232,162 (93,403)
Repairs and maintenance 414,884 367,470 47,414
Other contract services 230,004 156,416 73,588
Vehicle fuel 3,734 3,385 349
Vehicle maintenance 4,863 7 4,856
Vehicle Lease 286 2,379 (2,093)
Diesel Fuel - Vehicle 5,205 9,242 (4,037)
Office expense 4,733 2,694 2,039
Licenses and permits 1,001 13,768 (12,767)
Chemicals 169,916 81,677 88,239
Other materials 38,369 14,492 23,877
Tools 1,500 - 1,500
Safety & security 12,532 24,549 (12,017)
Laboratory fees 90,014 53,589 36,425
Residuals management 359,175 450,333 (91,158)
Uniforms/clothing allowance 3,075 3,054 21
Memberships/periodicals/books 528 1,193 (665)
SUB-TOTAL WASTEWATER TREATMENT 2,906,593 2,734,939 171,654
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 6
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2024
Original
Budget Actual Variance
WASTEWATER COLLECTION
Salaries and wages 399,859 351,678 48,181
Overtime 32,550 33,282 (732)
FICA 33,079 28,899 4,180
Unemployment taxes 2,119 327 1,792
Employer pension contribution 23,992 20,241 3,751
Health/life insurance 170,218 107,654 62,564
Workers' compensation 5,665 3,622 2,043
Other professional services - 1,268 (1,268)
Engineering services - - -
Travel and training 21,000 4,519 16,481
Telephone and fax 3,500 6,267 (2,767)
Electric 67,963 60,367 7,596
General liability insurance 16,303 16,601 (298)
Comprehensive auto insurance 5,771 5,869 (98)
Other insurance 7,372 12,095 (4,723)
Repairs and maintenance 459,500 185,756 273,744
Other contract services 5,000 8,822 (3,822)
Vehicle fuel 10,350 10,253 97
Vehicle maintenance 16,000 5,250 10,750
Vehicle Lease 1,000 8,435 (7,435)
Diesel Fuel - Vehicle 4,000 4,366 (366)
Office expense 3,000 4,174 (1,174)
Licenses and permits 400 500 (100)
Chemicals 18,000 23,643 (5,643)
Other materials 30,000 27,856 2,144
Tools 3,000 988 2,012
Safety security 6,500 13,943 (7,443)
Uniforms/clothing allowance 2,175 1,754 421
Memberships/periodicals/books 674 318 356
SUB-TOTAL WASTEWATER COLLECTION 1,348,990 948,747 400,243
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 7
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2024
Original
Budget Actual Variance
CUSTOMER SERVICE / ADMIN
Salaries and wages 803,714 762,385 41,329
Overtime 10,500 13,835 (3,335)
FICA 62,287 51,540 10,747
Unemployment taxes 3,840 777 3,063
Employer pension contribution 47,143 37,537 9,606
Health/life insurance 263,154 215,252 47,902
Workers' compensation 10,763 6,765 3,998
Legal services 190,000 136,591 53,409
Other professional services 170,000 47,285 122,715
Accounting/auditing 45,000 41,750 3,250
Engineering services 700,000 473,913 226,087
Travel and training 40,280 24,188 16,092
Telephone and fax 5,000 2,431 2,569
Postage and freight 43,000 44,582 (1,582)
General liability insurance 12,951 13,168 (217)
Comprehensive auto insurance 577 587 (10)
Other insurance 45,335 51,553 (6,218)
Other contract services 130,000 179,021 (49,021)
Repairs and maintenance 6,000 7,119 (1,119)
Vehicle fuel 2,600 1,977 623
Vehicle maintenance 1,000 8 992
Vehicle Lease 1,000 3,654 (2,654)
Office expense 45,000 49,761 (4,761)
Miscellaneous bank fees 6,000 8,761 (2,761)
Miscellaneous expense 10,000 12,101 (2,101)
Arrowhead Assessment fees/discount 6,500 4,529 1,971
Community outreach programs 8,000 3,963 4,037
Advertising 93,000 26,718 66,282
Licenses and permits 200 1,130 (930)
Other materials - 961 (961)
Safety & security 12,800 19,866 (7,066)
Uniforms/clothing allowance 1,825 3,332 (1,507)
Memberships/periodicals/books 10,000 6,762 3,238
Hurricane Ian - Supplies - - -
SUB-TOTAL CUSTOMER SERVICE / ADMIN 2,787,469 2,253,802 533,667
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 8
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2024
Original
Budget Actual Variance
MAINTENANCE
Salaries and wages 381,346 307,633 73,713
Overtime 21,000 15,958 5,042
FICA 30,779 23,560 7,219
Unemployment taxes 1,971 227 1,744
Employer pension contribution 22,881 18,224 4,657
Health/life insurance 170,844 100,299 70,545
Workers' compensation 5,665 3,670 1,995
Temporary labor - 23,144 (23,144)
Travel and training 21,000 1,683 19,317
Telephone and fax 4,201 4,588 (387)
General liability insurance 10,460 10,645 (185)
Comprehensive auto insurance 8,080 8,217 (137)
Other insurance 2,343 3,714 (1,371)
Repairs and maintenance 5,500 19,096 (13,596)
Other contract services 4,000 3,717 283
Vehicle fuel 6,299 7,568 (1,269)
Vehicle maintenance 40,000 12,803 27,197
Diesel Fuel - Vehicle 1,000 719 281
Vehicle lease 700 8,802 (8,102)
Licenses and permits 1,200 - 1,200
Chemicals - 4,887 (4,887)
Office expense 5,000 1,321 3,679
Other materials 15,513 16,497 (984)
Tools 5,000 535 4,465
Safety & security 3,000 6,371 (3,371)
Uniforms/clothing allowance 2,475 1,217 1,258
Memberships/periodicals/books 1,400 832 568
SUB-TOTAL MAINTENANCE 771,657 605,927 165,730
DEPRECIATION
Depreciation - 2,542,168 (2,542,168)
SUB-TOTAL DEPRECIATION - 2,542,168 (2,542,168)
TOTAL OPERATING EXPENSES 11,926,887 12,377,874 (450,987)
OPERATING PROFIT 2,471,492$ 2,060,436$ (411,056)$
The accompanying notes are an integral part of this statement.
IMMOKALEE WATER & SEWER DISTRICT Page 9
ORIGINAL BUDGET (NON-GAAP) vs. ACTUAL WITH RECONCILIATION
TO GAAP BASIS COMPARISON REPORT - UNAUDITED - CONTINUED
Year ended September 30, 2024
Original
Budget Actual Variance
OPERATING PROFIT,
BROUGHT FORWARD 2,471,492$ 2,060,436$ (411,056)$
NON-OPERATING REVENUES (EXPENSES)
Interest income 732,157 801,158 69,001
State Appropriations 6,800,000 - (6,800,000)
Contributed capital - grant - FDEP - 126,417 126,417
Contributed capital - grant - USDA/FHA 15,341,500 - (15,341,500)
Contributed capital - customers 70,000 180,025 110,025
Contributed capital - developers 70,000 - (70,000)
Contributed capital - special assessments 77,882 77,868 (14)
Other non-operating revenue 18,350 13,889 (4,461)
Capital outlay (27,264,279) (2,729,812) 24,534,467
Principal retirement - bonds (889,200) (889,500) (300)
Principal retirement - SRF (39,820) (39,820) -
Principal retirement - capital lease (21,931) (21,931) -
Net Assets - brought forward 14,500,000 - (14,500,000)
Net Assets - carryforward (11,032,981) - 11,032,981
Interest expense (826,170) (795,797) 30,373
Bad debt expense (7,000) - 7,000
Gain (Loss) on disposal of assets - - -
NET NON-OPERATING
REVENUES (EXPENSES) (2,471,492) (3,277,503) (806,011)
NET PROFIT (LOSS) -$ (1,217,067)$ (1,217,067)$
Reconciliation:
Net profit (loss) (Non-GAAP Budgetary Basis) (1,217,067)$
Capital outlay 2,729,812
Principal retirement - bonds 889,500
Principal retirement - SRF 39,820
Principal retirement - Capital lease 21,931
Capital contributions - special assessments (77,868)
Increase in Net Position (GAAP Basis) 2,386,128
Net position - beginning of the year 45,495,780
Net position - end of the year 47,881,908$
The accompanying notes are an integral part of this statement.