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FY24 Immokalee Fire Control District Audit ReportMarch 26, 2025 lmmokalee Fire Control District 5368 Useppa Drive, Ave Maria, FL. 34142 Michael J. Choate, Fire Chief Mr. Derek Johnson, General Accounting Manager Clerk of the Circuit Court, Finance Department 3299 Tamiami Trail East, #403 Naples, FL 34112 Dear Mr. Johnson: Enclosed please a copy of the District's audit for the fiscal year ended 9-30-24. Please contact me if you have any questions or would like to receive an electronic copy of the audit. Very truly yours, ~~c#dtV-to~ BECKY BRONSDON Chief Financial Officer Enclosures Headquarters (239) 657-2111 Fire Prevention (239) 597-9227 Fax (239) 657-9489 IMMOKALEE FIRE CONTROL DISTRICT BASIC FINANCIAL STATEMENTS TOGETHER WITH ADDITIONAL REPORTS YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT ..................................................................... . MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) ......................................... . BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS: Statement of Net Position ...................................................................................... . Statement of Activities ......................................................................................... . FUND FINANCIAL STATEMENTS: Governmental Funds: Balance Sheet -Governmental Funds ...................................................................... . Reconciliation of the Balance Sheet -Governmental Funds to the Statement of Net Page(s) 1-4 I-VII 5 6 7 Position.................................................................................................................... 8 Statement of Revenues, Expenditures and Changes in Fund Balance -Governmental Funds ....... 9 Re conciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance -Governmental Funds to the Statement of Activities ............................... 10 NOTES TO THE FINANCIAL STATEMENTS............................................................... I 1-54 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A BUDGET TO ACTUAL COMPARISON -MAJOR FUNDS (General and Special Revenue Funds) Statement of Re venues , Expenditures and Changes in Fund Balance -Budget and Actual - General Fund -Summary Statement ........................................................................... . Statement of Revenues , Expenditures and Changes in Fund Balance -Budget and Actual - General Fund -Detailed Statement ............................................................................. . Statement of Revenues , Expenditures and Changes in Fund Balance -Budget and Actual -Impact Fee Fund -Summary Statement. ................................................... . OTHER REQUIRED SUPPLEMENT ARY INFORMATION Schedule of District Proportionate Share of the Net Pension Liability -Florida Retirement System (FRS) Pension Plan ................................................................................. . Schedule of District Contributions -Florida Retirement System (FRS) Pension Plan ................. . Schedule of District Proportionate Share of the Net Pension Liability -Health Insurance Subsidy (HIS) Pension Plan ................................................................................. . Schedule of District Contributions -Health Insurance Subsidy (HIS) Pension Plan ................... . Notes to the Required Supplementary Information ............................................................... . Schedule of Changes in the Net OPEB Liability and Related Ratios , GASB No . 75 and Related Notes to the Schedule ......................................................................... . 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 ......................................... . Independent Accountant's Report on Compliance with Section 2 I 8.4 I 5, Florida Statutes ............. . Independent Auditor's Report to Management ................................................................ . Management's Response to Independent Auditor's Report to Management ............................... . Florida Rules of the Auditor General -Rule I 0.554( I )(i)6-8 Compliance -Unaudited ................. . 55 56-58 59 60 60 61 61 62-63 64 65-66 67 68-70 Exhibit I Exhibit 2 HSC/Tuscan & Company, PA CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS Board of Commissioners Immokalee Fire Control District 5368 Useppa Dr. Ave Maria , Florida 34142 Opinions INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the governmental activities and each maj or fund oflmmokalee Fire Control District (the "District") as of and for the year ended September 30 , 2024, and the related notes to the financial statements, which collecti vely comprise the District's basic financial statements as listed in the table of contents . Summary of Opinions Opinion Unit Governmental Activities General Fund Impact Fee Fund Type of Opinion Unmodified Unmodified Unmodified In our opinion , bas ed on our audit and the report of other auditors , the financial statements referred to above present fairly , in all material respects , the respective financial position of the governmental activities and each major fund of Immokalee Fire Control District as of September 30 , 2024 , and the respective changes in financial position , for the year then end ed in accordance with accounting principles generally accepted in the United States of America . Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America . Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District, and to meet our other ethical responsibilities , in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions . We did not audit the financial statements of Florida Retirement Systems Pension Plan (FRS) or Health Insurance Subsidy Pension Plan (HIS) as of and for the year ended June 30 , 2024 . The District is required to record its proportionate share of the FRS and HIS liability in the District's government-wide financial statements as of September 30, 2024 , and for the year then ended. Those financial statements were audited by other auditors whose report thereon has been furnished to us , and our opinion , insofar as it relates to the amounts included for Immokalee Fire Control Di strict's government-wide financial statements, is based on the report of the other auditors . Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America ; this includes the design , implementation , and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. INTEGRITY _ ..... _SERVICE ............. EXPERIENCE 1470 Royal Palm Square Blvd.• Fort Myers , FL 33919-1049 Phone : (239) 939-2233 • Fax : (239) 939-0554 • www .hsctuscan.com Board of Commissioners Immokalee Fire Control District Page 2 In preparing the financial statements, management is required to evaluate whether there are conditions or events , considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for twelve months beyond the financial statement date , including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions . Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists . The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion , forgery , intentional omissions , misrepresentations , or the override of internal control. Misstatements are considered material ifthere 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 go vernance 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 Supplem entary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages i -vii , Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan (FRS), Schedule of District Contributions -Florida Retirement System Pension Plan (FRS), Schedule of th e District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions -Health Insurance Subsidy Pension Plan (HIS), Notes to the Required Supplementary Information and Schedule of Changes in the Total OPEB Liability and Related Ratios GASB No . 75 and related Notes to the Schedule, as listed in the table of contents , be presented to supplement the basic financial statements. Such information , although not a part of the basic financial statements , is required by the Governmental Accounting Standards Board which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational , economic , or historical context. We have applied certain limited procedures to the required supplementary information -management's discussion and analysis (MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability -Florida Retirement System Pension Plan (FRS), Schedule of District Contributions - Florida Retirement System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension Liability -Health Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions -Health Insurance Subsidy Pension Board of Commissioners lmmokalee Fire Control District Page 3 Plan (HIS), Notes to the Required Supplementary Information and Schedule of Changes in the Total OPEB Liability and Related Ratios GASB No . 75 and related Notes to the Schedule, as listed in the table of contents , in accordance with auditing standards generally accepted in the United States of America , which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements , and other knowledge we obtained during our audit of the basic financial statements . We do not express an opinion or provide any assurance on the required supplementary information - management's discussion and analysis (MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability -Florida Retirement System Pension Plan (FRS), Schedule of District Contributions -Florida Retirement System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension Liability -Health Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions -Health Insurance Subsidy Pension Plan (HIS), Notes to the Required Supplementary Information and Schedule of Changes in the Total OPEB Liability and Related Ratios GASB No . 75 and related Notes to the Schedule, as listed in the table of contents , because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Oth er Required Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collecti vely comprise Immokalee Fire Control District's basic financial statements. Th e required supplementary information other than MD&A - budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic financial statements . The required supplementary information other than MD&A -budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements . Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves , and other additional procedures in accordance with auditing standards generally accepted in the United States of America . In our opinion , the required supplementary information other than MD&A -budgetary comparison information is fairly stated , in all material respects, in relation to the basic financial statements as a whole . Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District's basic financial statements . The Exhibit I -Management's Response to Independent Auditor's Report to Management and Exhibit 2 -Florida Rules of the Auditor General -Rule 10 .554(1)(i)6-8 Compliance -Unaudited are not a required part of the basic financial statements but are required by Government Auditing Standards and/or Rules of the Auditor General , Section J0 .554(i), respectively. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and , accordingly, we do not express an opinion or provide any assurance on it. In connection with our audit of the basic financial statements, our responsibility is to read the other information and con sider whether a material inconsistency exists between the other information and the basic financial statements , or the other information otherwise appears to be materially misstated . If, based on the work performed , we conclude that an uncorrected material misstatement of the other information exists , we are required to describe it in our report . Other Reporting Required by Section 218.415, Florida Statutes In accordance with Section 218.415 , Florida Statutes , we have also issued a report dated February 3, 2025 , on our consideration of Immokalee Fire Control District's compliance with provisions of Section 218.415 , Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing , and to provide an opinion on compliance with the aforementioned Statute. That report is an integral part of an audit performed in accordance with Sections 218 .39 and 21 8.415 , Florida Statutes in considering Immokalee Fire Control District's compliance with Section 218.415 , Florida Statutes . Bo ard of Co mmi ssio ners lmmokalee Fire Control District Page 4 Other Reporting Required by Government Auditing Standards In accordance wi th Government Auditing Standards. we ha ve also iss ued our report dated February 3, 2025. on our con si deration of th e District's internal control over financial reporting and on our tests of its compliance with certain provi sion s of laws, regulation s, contract and grant agreements and other matters . The purpose of that report is to de sc ribe the sco pe ofour te sting o f internal control over financial reportin g and compliance and the results of that te sti ng, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an a udit performed in accordance wi th Government Auditing Standards in considering lmmoka lee Fir e Control District's internal control over financial reporting and compliance. HS C/TUSCAN & COMPANY . P.A . Fort Myers , Florida February 3, 2025 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) General Information lmmokalee Fire Control District Management's Discussion and Analysis September 30, 2024 The lmmokalee Fire Control District's (the "District") discussion and analysis is designed to assist the reader in focusing on significant financial issues, provide an overview of the District's financial activity, identify changes in the District's financial ability to address the next and subsequent fiscal years challenges, identify any material deviations from the approved budget, and identify individual fund issues and concerns. Management's Discussion and Analysis (MD&A) is intended to serve as an introduction to the District's basic financial statements which are composed of 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. It is designed to focus on the current fiscal year's activities, resulting changes and currently known facts, and should be read in conjunction with the District's financial statements. Fiscal Year Highlights As expected, the District's financial position increased during the fiscal year ended September 30, 2024 by $703,707 substantially due to the use of impact fees in the amount of $1,993,284. As expected, the District's financial position increased during the fiscal year ended September 30, 2023 by $209,688 substantially due to an increase in ad valorem tax revenue. Effective September 30, 2015, the District adopted the provisions of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions (Statement No. 68). The implementation of this standard required the District to annually report its actuarially determined net pension liability in the government-wide financial statements. It also requires additional disclosure in the notes related to the financial statements. Effective September 30, 2018, the District adopted the provisions of Governmental Accounting Standards Board Statement No. 75 "Accounting and Financial Reporting for Post Employment Benefits Other Than Pensions (OPEB)" (Statement No. 75). This accounting standard requires the District to annually report its actuarially determined net OPEB liability. lmmokalee Fire Control District Management's Discussion and Analysis September 30, 2024 Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District's finances in a manner similar to a private-sector business. The statements combine and consolidate governmental fund short-term spendable resources with capital assets and long-term obligations. The statements include a Statement of Net Position and a Statement of Activities that are designed to provide consolidated financial information about governmental activities of the District presented on the accrual basis of accounting. The Statement of Net Position presents information on all of the District's assets and liabilities, with the difference between the two reported as net position. Over time, the increases or decreases to net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The government-wide financial statements can be found on pages 5 and 6 of this report at September 30: Assets: Current Assets Noncurrent Assets Total Assets Deferred Outflows of Resources Liabilities: Accounts Payable and Other Current Liabilities Unearned Revenue-impact fees Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources Net Position: Net Investment in Capital Assets Unrestricted Net Assets (Deficit) Total Net Position 2024 2023 $5,814,642 $6,568,462 24.298.399 23.630.892 30.113.041 30.199.354 2.591 .771 1,470.945 979,817 3,905,398 3,271,351 3,306,227 16,473.722 13,492.240 20.724.890 20.703.865 649.714 339.933 14,506,609 13,273,534 (3.176,401} (2.647.033} $11,330,208 $10,626,501 The Statement of Activities presents information showing how the District's net position changed during the fiscal years. The focus is on both gross and net costs of various activities that are supported by the District's ad valorem tax and other revenues. Thus, ii lmmokalee Fire Control District Management's Discussion and Analysis September 30, 2024 Government-wide Financial Statements (Continued) revenues and expenses are reported in this Statement for some items that will only result in cash flows in a future fiscal period (e.g. uncollected taxes earned). This Statement is intended to summarize and simplify the user's analysis of the cost of various governmental services. An increase or decrease in net position may be an indication of whether the District's financial health is improving or deteriorating. The following reflects the revenues, expenses and changes in financial position for the years ended September 30: 2024 2023 Revenues: Ad Valorem Taxes $7,475,221 $6,100,838 Interest Income 334,482 303,203 Grant Revenue 105,155 160,659 Impact Fees 1,993,284 1,414,108 Other Revenue 166,742 359,352 Total Revenue 10,074,884 8,338,160 Expenses Public Safety Expenses 9,371.177 8,128,472 Change in Net Position 703,707 209,688 Net Position -Beginning 10,626,501 10,416,813 Net Position -Ending of the fiscal year $ 11,330,208 $10,626,501 Both of the financial statements distinguish the functions of the District that are principally supported by ad valorem taxes and intergovernmental revenues. The governmental activities of the District are for public safety. General Revenues During fiscal year 2023, the District received $1, 113,318 more in ad valorem tax dollars over the prior fiscal year due to an increase in assessable value of property within the District. This represents a 22% increase. During fiscal year 2024, the District received $1,374,383 more in ad valorem tax dollars over the prior fiscal year due to an increase in assessable value of property within the District. This represents a 23% increase. iii . lmmokalee Fire Control District Management's Discussion and Analysis September 30, 2024 Government-wide Financial Statements (Continued) Expenses During the fiscal year of 2023 expenses increased by $1 ,638,102 vs. the prior fiscal year due to increases in personnel costs and debt service costs related to pay ing off the original Station 30 construction loan. During the fiscal year of 2024 expenses increased by $1,242,705 vs. the prior fiscal year due to increases in costs and depreciation expense on Station #32. These costs included an increase in personnel costs , pension liability, OPEB costs and interest expense related to debt service. Net Position During fiscal year 2023, net position increased by $209,688. During fiscal year 2024, net position increased by $703,707. Liabilities During the year ended September 30 , 2023 , the District entered 3 capital leases totaling $902 ,825 for a pumper truck, 1 officer vehicle and 1 service vehicle. The District also refinanced the construction loan for Station 30 . During the year ended September 30, 2024, the District entered 2 capital leases of $202 ,325 for two staff vehicles and $2 ,700 ,000 for refinancing Station #30 debt (New Market Road). Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives . The District uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements , governmental fund financial statements focus on the short-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Both the governmental fund balance sheet and the governmental fund statement of revenues, iv lmmokalee Fire Control District Management's Discussion and Analysis September 30, 2024 Governmental Funds (Continued) expenditures, and changes in fund balance provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The District maintains two governmental funds, the General Fund and the Special Revenue Fund for impact fees. Each fund's activity is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. These statements can be found on pages 7 and 9 of this report. Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements and can be found beginning on page 11 of this report. General Fund Budgetary Highlights The District adopts an annual appropriated budget for each of its governmental funds. The most significant original budget variances for the year ended September 30, 2024 was due to receipt of approximately $220,298 in ad valorem tax more than budgeted in unanticipated grant revenue and debt principal reduction of $2,163,164 due to refinancing the Station #30 debt. The actual expenditures in the General Fund were $2,383,277 less than the final amended budget. The actual expenditures were less than budget in general due to not having to use as much reserves as budgeted to cover expenditures. The District amended its original budget to adjust for the September 30, 2024 audit fund balance carryover and various other changes in anticipated revenues and expenditures. The District adopts an annual appropriated budget for each of its governmental funds. The most significant original budget variance for the year ended September 30, 2023 was due to receipt of approximately $137,000 in ad valorem tax more than budgeted in unanticipated grant revenue. The actual expenditures in the General Fund were $2,735,939 less than the final amended budget. The actual expenditures were less than budget in general due to not having to use any reserves to cover expenditures. The District amended its original budget to adjust for the September 30, 2023 audit fund balance carryover and various other changes in anticipated revenues and expenditures. V Capital Assets lmmokalee Fire Control District Management's Discussion and Analysis September 30, 2024 The following is a schedule of the District's capital assets at September 30: Capital Assets September 30 Capital Assets not being depreciated : Land Construction in progress Total Capital Assets not being depreciated Capital Assets being depreciated: Build i ngs and building improvements Machinery & equipment Vehicles Total Capital Assets being depreciated Less : Accumulated Depreciation Capital Assets. being depreciated , net Capital Assets , Net $ $ 2024 2023 390,256 $ 390,256 6,508,106 390 ,256 6,898,362 20 ,173 ,872 13 ,316,996 2,442 ,330 2,309,079 6,193 ,691 4 ,840.528 28 ,809 ,893 20,466,603 {4,901 ,750) 3 ,798.722) 23 ,908 ,143 16,667,881 24,298.399 $ 23 ,566,243 The District purchased capital assets during the year ended September 30, 2023 in the amount of $5,173,822 which consisted substantially of a new pumper truck, an officer vehicle and a service truck. The District purchased various equipment totaling $304,945. The District also incurred costs related to construction of the new lmmokalee station (St 30) in the amount of $3,943,445. During the year ended September 30, 2024, the District purchased capital assets of $1,985,560 which consisted of $348,770 for the completion of Station #30 and $1,636,790 for three staff vehicles, equipment to outfit these vehicles, a pumper and other equipment. vi lmmokalee Fire Control District Management's Discussion and Analysis September 30, 2024 Long Term Liabilities The following is a summary of changes in long-term liabilities for the year ended September 30: 2024 2023 Net pension liability -FRS $ 5,488,296 $ 4,616 ,173 Net pension liability -HIS 1,143,073 1,099,842 Compensated absences 523,656 533,435 Capital leases 2,468,625 2 ,662,274 Net OPEB liability 356,758 266,641 Construction Loans 7,323,165 7,630,435 $ 17,303,573 '$ 16,808,800 During the year ended September 30, 2023, the District issued $2,700,000 in an additional construction loan to finish construction of Station #30. The District also entered 3 financing leases for a pumper truck, an officer vehicle and a service truck. During the year ended September 30, 2024, the District refinanced the Station #30 construction loan to permanent financing. Station #30 was completed and placed in service during the year. The District also leased two staff vehicles. Economic Factors and Next Year's Budget Rates The following were factors considered when next year's budget (2024-2025) was prepared: • The estimated property taxes increased by approximately $1 ,241 , 386 or 17% for budgeting purposes for 2025 as compared to 2024. The millage rate stayed consistent at 3.75 mills for the fiscal year ending September 30, 2025. Request for information This financial report is designed to provide the reader an overview of the District. Questions regarding any information provided in this report should be directed to: lmmokalee Fire Control District, 5368 Useppa Drive, Ave Maria, Florida 34142, attention Becky Bronsdon, Chief Financial Officer, telephone (239) 657-2111. vii IMMOKALEE FIRE CONTROL DISTRICT STATEMENT OF NET POSITION September 30, 2024 ASSETS Current assets : Cash and cash equivalents Restricted cash and cash equivalents Investments Investments -restricted Due from other governments , including restricted amount of$77,837 Prepaid expenses Right of use subscription asset, current Total current assets Noncurrent assets: Right of use subscription asset, net of current Capital assets: Land Construction in progress Depreciable buildings , equipment and vehicles (net of $4 ,901 ,750 accumulated depreciation) Total noncurrent assets TOT AL ASSETS DEFERRED OUTFLOWS OF RESOURCES LIABILITIES Current liabilities : Accounts payable Accrued liabilities Due to other governments Unearned revenue -land easement Unearned revenue -impact fees Retainage payable Current portion oflong-term obligations Right of use subscription liability , current Total current liabilities Noncurrent liabilities : Noncurrent portion of long-term obligations Right of use subscription liability, net of current TOT AL LIABILITIES DEFERRED INFLOWS OF RESOURCES NET POSITION Net investment in capital assets Restricted Unrestricted (deficit) TOT AL NET POSITION (DEFICIT) The accompanying notes are an integral part of this statement. $ $ Governmental Activities Page 5 of70 2,172 ,677 3,063,443 26 ,806 166 ,299 185,126 135,642 64 ,649 5,814 ,642 390,256 23,908.143 24,298,399 30,113 ,041 2,591 ,771 1,949 71,368 12 ,000 3 ,271,351 829 ,851 64 ,649 4 ,251 ,168 16 ,473,722 20 ,724,890 649 ,714 14 ,506,609 (3,176 ,401) 11 ,330,208 IMMOKALEE FIRE CONTROL DISTRICT STATEMENT OF ACTIVITIES Year Ended September 30, 2024 EXPENSES Governmental Activities Public Safety -Fire Protection Personnel services Operating expenses Depreciation Interest and fiscal charges TOTAL EXPENSES -GOVERNMENTAL ACTIVITIES PROGRAM REVENUES Charges for services Operating/capital grants and contributions TOTAL PROGRAM REVENUES NET PROGRAM EXPENSES GENERAL REVENUES Ad Valorem taxes Impact fees Interest Gain on disposition of capital assets Other TOT AL GENERAL REVENUES INCREASE (DECREASE) IN NET POSITION NET POSITION (DEFICIT) -Beginning of year NET POSITION (DEFICIT) -End of the year The accompanying notes are an integral part of this statement. $ $ Governmental Activities Page 6 of70 6 ,353 ,014 1,391 ,348 1,250,043 376 ,772 9 ,371 ,177 105,155 105 ,155 9 ,266 ,022 7 ,475 ,221 1,993 ,284 334,482 36,639 130 ,103 9,969,729 703 ,707 10 ,626,501 11 ,330,208 IMMOKALEE FIRE CONTROL DISTRICT BALANCE SHEET-GOVERNMENTAL FUNDS September 30, 2024 General Fund ASSETS Cash and ca sh equi valents $ 2 ,172 ,677 Restricted ca sh and ca sh equi valents 23 ,450 Investments 26,806 Due from other go vernments 107 ,289 Due from other funds Prepaid expenditures 135 ,642 TOT AL ASSETS $ 2,465 ,864 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 1,949 Accrued liabilitie s 70 ,590 Due to other go vernments Due to other fund s Retainage payable Unearned revenue -land easement Unearned revenue -impact fee s TOT AL LIABILITIES 72 ,539 FUND BALANCE Nonspendable 135 ,642 Assigned 2 ,257 ,683 Unassigned TOT AL FUND BALANCE 2,393 ,325 TOT AL LIABILITIES AND FUND BALANCE $ 2 ,465 ,864 The accompanying notes are an integral part of this statement. Page 7 of70 Total Impact Fee Governmental Fund Funds $ -$ 2 ,172 ,677 3,039 ,993 3 ,063 ,443 166 ,299 193 ,105 77 ,8 37 185 ,126 135 ,642 $ 3,284 ,129 $ 5,749 ,993 $ -$ 1,949 778 71 ,368 12 ,000 12 ,000 3,271 ,351 3,271 ,351 3,284 ,129 3,356 ,668 135 ,642 2 ,257 ,683 2 ,393 ,325 $ 3,284 ,129 $ 5,749 ,993 IMMOKALEE FIRE CONTROL DISTRICT RECONCILIATION OF THE BALANCE SHEET -GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2024 Total fund balance for governmental funds Amounts reported for governmental activities in the statement of net position are different because : Right of use-subscription asset Capital assets used in governmental activities are not financial resources and, therefore , are not reported in the governmental funds . Capital assets not being depreciated: Land Construction in progress Governmental capital assets being depreciated: Building, Equipment and Vehicles Less accumulated depreciation Deferred outflows and deferred inflows related to pensions are applied to future periods and, therefore , are not reported in the governmental funds . Deferred outflows related to pensions Deferred inflows related to pensions Right of use-subscription liability Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds. Net pension liability -FRS Net pension liability -HIS Capital leases Construction loan Compensated absences Net OPEB liability Elimination of interfund amounts: Due from other funds Due to other funds Total net position (deficit) of governmental activities The accompanying notes are an integral part of this statement. 64,649 390,256 28,809 ,893 (4,901 ,750) 2,591,771 (649,714) (64 ,649) (5,488,296) (1 ,143 ,073) (2 ,468 ,625) (7,323 ,165) (523 ,656) (356,758) Page 8 of70 Amount $ 2,393,325 64 ,649 390,256 23 ,908,143 2 ,591,771 (649,714) (64,649) (17 ,303 ,573) $ 11 ,330 ,208 IMMOKALEE FIRE CONTROL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -GOVERNMENTAL FUNDS Year Ended September 30, 2024 REVENUES Ad Valorem taxes Intergovernmental revenues: Federal public safety grants -CDBG State public safety grants Other grants State firefighter supplemental Fees: Inspection fees Impact fees Miscellaneous : Interest Other EXPENDITURES Current Public safety TOT AL REVENUES Personnel services Operating expenditures Capital outlay Debt service Principal reduction Interest and fiscal charges TOT AL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from issuance of financing lease Proceeds from disposition of capital assets Proceeds from issuance of construction loans TOT AL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE $ General Fund 7,475 ,221 $ 101 ,665 3,490 192 ,8 65 130 ,103 7,903 ,344 6,168 ,367 1,371 ,804 495 ,184 2 ,962 ,164 192 ,871 11 ,190 ,390 (3,287,046) 202 ,325 40 ,000 2 ,700 ,000 2,942 ,325 (344 ,721) Impact Fee Fund -$ 1,993 ,284 141 ,6 17 2,134 ,901 19 ,544 1,490 ,376 441 ,080 183,901 2,134 ,901 Total Governmental Funds Page 9 of70 7,475 ,221 101,665 3,490 1,993 ,284 334,482 130,103 10 ,038 ,245 6,168,367 1,391 ,348 1,985 ,560 3,403 ,244 376,772 13,325,291 (3,287,046) 202 ,325 40 ,000 2,700 ,000 2,942 ,325 (344,721) FUND BALANCE -Beginning of the year FUND BALANCE-End of the year 2 ,738 ,046 2,738 ,046 $ 2,393 ,325 $ -$ 2,393 ,325 ====== ============ The accompanying notes are an integral part of this statement. IMMOKALEE FIRE CONTROL DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTALFUNDSTOTHESTATEMENT OF ACTIVITIES Year Ended September 30, 2024 Net change (excess ofrevenues over (under) expenditures) in fund balance -total governmental funds The decrease (change) in net position reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities , the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense . Plus : Expenditures for capital assets Less: proceeds from disposition of capital assets Plus : gain on disposition of capital assets Less : current year depreciation The issuance of debt is reported as a financing source in governmental funds and thus contributes to the change in fund balance. In the Statement of Net Position , however, issuing debt increases long-term liabilities and does not affect the Statement of Activities . Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the Statement of Net Position. Proceeds from issuance of capital lease Proceeds from issuance of construction loans Repayments (principal retirement) for capital leases Repayments (principal retirement) for construction loan Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore , are not reported as expenditures in the governmental funds. Increase (decrease) in deferred outflows -Pensions (Increase) decrease in deferred inflows -Pensions (Increase) decrease in net pension liability -FRS (Increase) decrease in net pension liability -HIS (Increase) decrease in compensated absences, net (Increase) decrease in net OPEB liability Increase (decrease) in net position of governmental activities The accompanying notes are an integral part of this statement. 1,985 ,560 (40 ,000) 36,639 (1 ,250 ,043) (202 ,325) (2,700,000) 395,974 3,007 ,270 1,120 ,826 (309 ,781) (872 ,123) (43 ,231) 9,779 (90 ,117) Page 10 of 70 Amount $ (344,721) 732,156 500,919 (184,647) $ 703 ,707 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 11 of 70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Immokalee Fire Control District (the "District"), is an independent special district established on May 3, 1955 , by Laws of Florida, Chapter 55-30666 , as amended. The District has the general and specific powers prescribed by Florida Statutes Chapters 189 ,633 and Chapter 191. Laws of Florida, Chapter 2000-393 codified, reenacted, amended and repealed its prior enabling acts. Also , as a result of Laws of Florida, Chapter 2000-393 , the District's name was changed from Immokalee Fire Control and Rescue District to Immokalee Fire Control District. Laws of Florida, Chapter 2001-330 amended Laws of Florida , Chapter 2000-393 and authorized the District to levy impact fees on new construction within the District. During January 2012, the voters within the District passed a referendum increasing the District's millage cap from 3 mills to 3 .75 mills effective for the year ended September 30, 2013 and thereafter. The District was created for the purpose of providing fire control and protection services as well as crash and rescue services for a designated area in eastern Collier County. The District operates three (3) station houses and has approximately 46 employees including part-time employees plus five (5) Commissioners. The District is governed by an elected five (5) member Board of Commissioners serving staggered four (4) year terms . Summary of Significant Accounting Policies The following is a summary of the significant accounting policies used in the preparation of these basic financial statements. Reporting Entity The District adheres to Governmental Accounting Standards Board (GASB) Statement Number 14 , "Financial Reporting Entity" (GASB 14), as amended by GASB Statement Number 39 , "Determining Whether Certain Organizations Are Component Units" (GASB 39) and GASB Statement Number 61, "The Financial Reporting Entity: Omnibus -An Amendment of GASB Statements No. 14 and No. 34" (GASB 61). These statements require the basic financial statements of the District (the primary government) to include its component units , if any . A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable . Based on the criteria established in GASB Statement No . 14 , as amended, there are no component units required to be included or included in the District's basic financial statements. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 12 of70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED The basic financial statements of the District are comprised of the following : -Government-wide financial statements -Fund financial statements -Notes to the financial statements Government-wide Financial Statements The government-wide financial statements (i .e ., the Statement of Net Position and the Statement of Acti v ities) report information on all of the activities of the District and do not emphasize fund types. These governmental activities comprise the primary government. General governmental and intergovernmental revenues support the governmental activities . The purpose of the government-wide financial statements is to allow the user to be able to determine if the District is in a better or worse financial position than the prior year. The effect of all interfund activity between governmental funds has been removed from the government-wide financial statements . Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting , revenues , expenses, gains , losses , assets , and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place . Revenues, expenses , gains , losses , assets , and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement Number 33, "Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33). Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements , rather than reported as expenditures . Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability in the government-wide financial statements, rather than as expenditures. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 13 of70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Government-wide Financial Statements, continued The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues . Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include : 1) charges to customers or applicants who purchase , use or directly benefit from goods , services , or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital improvements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues . Program revenues are considered to be revenues generated by services performed and/or by fees charged such as inspection fees . Since the year ended September 30, 2018 , the District has contracted another fire district to perform all fire inspections within the Immokalee Fire Control District. As such , the contracted District was entitled to all fire inspection fee revenues. Capital grant revenues are grants from other governmental entities restricted for the purchase of specific capital assets. Fund Financial Statements The District adheres to GASB Statement Number 54 , "Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54). The accounts of the District are organized on the basis of funds , each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets , liabilities , fund equity or retained earnings , revenues , and expenditures or expenses , as appropriate . Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the District's governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds , in aggregate , for governmental funds. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 14 of 70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Governmental Funds When both restricted and unrestricted resources are combined in a fund , expenditures are considered to be paid first from restricted resources, as appropriate, and then from unrestricted resources . Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period . The District's major funds are presented in separate columns on the governmental fund financial statements. The definition of a major fund is one that meets certain criteria set forth in GASB Statement Number 34 , "Basic Financial Statements -and Management's Discussion and Analysis -for State and Local Governments" (GASB 34). The funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a single column on the governmental fund financial statements. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported in separate columns on the fund financial statements. Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures , or expenses , are recognized in the accounts and reported in the basic financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting . Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 15 of 70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Measurement Focus and Basis of Accounting, continued Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available . Revenues are considered to be available when they are collectible within the current period and soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers tax revenues to be available if they are collected within sixty days of the end of the current fiscal period. Revenues susceptible to accrual are property taxes, interest on investments , and intergovernmental revenues. Property taxes are recorded as revenues in the fiscal year in which they are levied, provided they are collected in the current period or within sixty days thereafter. Interest on invested funds is recognized when earned . Intergovernmental revenues that are reimbursements for specific purposes or projects are recognized when all eligibility requirements are met. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) principal and interest on the long-term debt, if any, which is recognized when due; and (2) expenditures are generally not divided between years by the recording of prepaid expenditures. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Separate financial statements are provided for governmental funds. Non-current Government Assets/Liabilities GASB 34 requires non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as notes payable and capital leases, to be reported in the governmental activities column in the government-wide Statement of Net Position . IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 16 of 70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Maior Funds The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the District, except those required to be accounted for in the Impact Fee Fund. The Impact Fee Fund consists of fees imposed and collected by Collier County based on new construction within the District. The fees are restricted and can only be used for certain capital expenditures and/or the related debt associated with growth within the District. Budgetary Information The District has elected to report budgetary comparison of major funds as required supplementary information (RSI). Investments The District adheres to the requirements of Governmental Accounting Standards Board (GASB) Statement Number 31 , "Accounting and Financial Reporting for Certain Investments and for External Investment Pools" (GASB 31), in which all investments are reported at fair value . Capital Assets Capital assets , which include land , construction in progress , buildings , equipment and machinery and vehicles are reported in the government-wide financial statements in the Statement of Net Position. The District follows a capitalization policy which calls for capitalization of all fixed assets that have a cost or donated value of $2 ,000 or more and have a useful life in excess of one year. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 17 of70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Capital Assets, continued All capital assets are valued at historical cost, or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Public domain (infrastructure) capital assets consisting of certain improvements other than building , including curbs , gutters and drainage systems, are not capitalized , as the District generally does not acquire such assets. No debt-related interest expense is capitalized as part of capital assets in accordance with GASB 34. Maintenance , repairs and minor renovations are not capitalized. The acquisition of land and construction projects utilizing resources received from Federal and State agencies are capitalized when the related expenditure is incurred . Expenditures that materially increase values, change capacities, or extend useful lives are capitalized. Upon sale or retirement, the cost is eliminated from the respective accounts. Expenditures for capital assets are recorded in the fund statements as current expenditures. However, such expenditures are not reflected as expenses in the government-wide statements , but rather are capitalized and depreciated. Depreciable capital assets are depreciated using the straight-line method over the following estimated useful lives: Asset Buildings Equipment and Machinery Vehicles 30 3-20 4-10 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 18 of70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and Budgetary Accounting The District has adopted an annual budget for the General Fund. The District has also adopted an annual budget for its Special Revenue Fund, the Impact Fee Fund. The District follows these procedures in establishing budgetary data for the General Fund and the Impact Fee Fund: 1. During the summer of each year, the District Fire Chief submits to the Board of Commissioners a proposed operating budget for the fiscal year commencing on the upcoming October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3 . The budget is adopted by approval of the Board of Commissioners. 4 . Budget amounts, as shown in these financial statements, are as originally adopted or as amended by the Board of Commissioners. 5. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America . 6 . The level of control for appropriations is exercised at the fund level. 7. Appropriations lapse at year-end . The District did amend the General Fund budget during the year ended September 30 , 2024 , in the amount of $3,238 ,706. The District did amend the Impact Fee Fund budget during the year ended September 30 , 2024, in the amount of $18,573. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 19 of70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Impact Fees/Deferred Revenue Through an inter-local agreement, the District levies an impact fee on new construction within the District. The intent of the fee is for growth within the District to pay for capital improvements needed due to the growth. The fee is collected by Collier County and is remitted to the District. The fee is refundable if not expended by the District within a reasonable period from the date of collection. The District, therefore, records this fee as restricted cash and as deferred revenue until the date of expenditure, at which time it is recognized as revenue and charged to capital outlay in the fund financial statements and capital assets in the government-wide financial statements. Due To/From Other Funds Interfund receivables and payables arise from interfund transactions and are recorded in the fund statements by funds affected in the period in which transactions are executed. Due From Other Governments No allowance for losses on uncollectible accounts has been recorded since the District considers all amounts to be fully collectible. Compensated Absences The District's employees accumulate annual leave, based on the number of years of continuous service. Upon termination of employment, employees can receive payment of accumulated annual leave, if certain criteria are met. The costs of sick, vacation and personal leave benefits (compensated absences) are expended in the respective operating funds when payments are made to employees. However, the liability for all accrued sick, vacation and personal leave benefits is recorded in the government-wide Statement of Net Position. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because, at present, it is not necessary in order to assure effective budgetary control or to facilitate effective cash planning and control. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 20 of70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Net Position In the government-wide financial statements , no net position has been identified as restricted. Restricted net position reflects those net assets that have constraints as to their use externally imposed by creditors, through debt covenants , by grantors , or b) law. Fund Balances The governmental fund financial statements the District maintains may include nonspendable, restricted , committed, assigned and unassigned fund balances . Nonspendable fund balances are those that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Criteria include items that are not expected to be converted into cash , for example prepaid expenses. Restricted fund balance consists of amounts that can be spent only on specific purposes stipulated by constitutional provisions or enabling legislation or externally imposed by creditors , grantors , contributors , or laws or regulations of other governments . The District maintained no restricted fund balances at September 30, 2024. Committed fund balance consists of amounts that represent resources whose use is constrained by limitations the Board (highest decision making) imposes upon itself. These constraints made by the Board remain binding unless removed in the same manner. The District maintained no committed fund balance at September 30 , 2024. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 21 of 70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Balances, continued Assigned fund balance represents the portion of fund balance that reflects the District's intended use of resources . Such intent can only be established by the Board. The District maintained assigned fund balance for various uses at September 30, 2024. The Board's minimum fund balance policy is to maintain not less than three (3) months budgeted expenditures in assigned fund balance as well as other specifically assigned amounts. Unassigned fund balance is the portion of fund balance representing resources in excess of what can properly be classified in one of the other categories . Interfund Transactions The District considers interfund receivables (due from other funds) and interfund liabilities (due to other funds) to be loan transactions to and from other funds to cover temporary (three months or less) cash needs. Transactions that constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund are recorded as expenditures in the reimbursing funds and as reduction of expenditures in the fund that is reimbursed. Pensions In the government-wide Statement of Net Position, liabilities are recognized for the District's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) and the Health Insurance Subsidy (HIS) defined benefit plans and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments, (including refunds of employees contributions) are recognized when due and payable in accordance with the benefit terms. The District's retirement plans and related amounts are described in a subsequent note. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 22 of70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Accounting Guidance GASB 94: Public-Private and Public-Public Partnerships and Availability Payment Arrangements In March 2020, the GASB issued Statement No. 94 (Public-Private and Public- Public Partnerships and Availability Arrangements) to bring a uniform guidance on how to report public-private and public-public partnership arrangements, will recognize receivables for installment payments, deferred inflows of resources, and, when applicable, capital assets. Operators will recognize liabilities for installment payments and intangible right-to-use assets, and when applicable, deferred outflows of resources and liabilities for assets being transferred . This Statement also provides guidance for accounting and financial reporting for availability payment arrangement in which a government compensates an operator for services such as designing , constructing, financing , maintaining, or operating an underlying asset for a period of time in an exchange or exchange-like transaction. The provisions of this Statement were effective for the District's financial statements for the year ended September 30, 2023. The District, however, had no arrangements that met this Statement's reporting criteria and/or the related arrangement costs were considered immaterial for the year ended September 30, 2024. 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 SBIT As and provides accounting and financial reporting for SBIT As by governments. This Statement requires a government to recognize a subscription liability and an intangible right-to-use subscription asset for the SBIT As. The provisions of this Statement were effective for the District's financial statements for the year ended September 30 , 2023. The District had arrangements that met this Statement's reporting criteria and have reported them as subscription right of use asset and liability, respectively, on the Government-Wide financial statements for the year ended September 30, 2024. For further discussion see Note R. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 23 of70 NOTE A -ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Deferred Outflows/Inflows of Resources In addition to assets, the Statement of Net Position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources , represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense /expenditure) until then. The deferred amount on pensions is reported in the government-wide Statement of Net Position. The deferred outflows of resources related to pensions and OPEB are discussed in a subsequent note. In addition to liabilities , the Statement of Net Position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources , represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow ofresources (revenue) until that time . The deferred amount on pensions and OPEB is reported only in the government-wide Statement of Net Position. A deferred amount on pensions and OPEB results from the difference in the expected and actual amounts of experience, earnings , and contributions. This amount is deferred and amortized over the service life of all employees that are provided with benefits through the plans except earnings which are amortized over five to seven years. Subsequent Events Subsequent events have been evaluated through February 3, 2025, which is the date the financial statements were available to be issued . NOTE B -CASH AND CASH EQUIVALENTS At September 30 , 2024 , cash and cash equivalents were $5 ,236 ,120 , which included unrestricted cash of $2 ,172 ,677 and restricted cash of $23 ,450 in the General Fund and restricted cash of $3 ,039 ,993 , which was held in the Impact Fee Fund. Restricted cash is comprised of the debt sinking fund of $22 ,212 and donations of $1,238 in the general fund and of impact fees which are restricted for capital asset acquisition and/or improvement due to growth within the District. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 24 of70 NOTE B -CASH AND CASH EQUIVALENTS, CONTINUED Deposits The District's deposit policy allows deposits to be held in demand deposit or money market accounts and other investments per Florida Statutes, Chapter 218.415(17). All District deposits were held in a financial institution designated as a qualified depository by the State Treasurer. At September 30, 2024, the carrying amounts of the District's deposits were $2,196,127 and $3,039,993 in the General Fund and the Impact Fee Fund, respectively. At September 30, 2024, bank balances were $2,291,605 and $3,039,993 in the General Fund and Impact Fee Fund, respectively. These deposits were entirely insured by federal depository insurance or by collateral pursuant to the Public Depository Security Act (Florida Statute 280) of the State of Florida. NOTE C -INVESTMENTS Florida Statutes and the District's investment policy authorize investments in the Florida Fixed Income Trust (FL FIT). Specifically, the District's investment policy is consistent with Florida Statutes, Chapter 218.415(17). At September 30, 2024, the District's investments in the FL FIT-Cash Pool (CP) consist of the following: General Fund Florida Fixed Income Trust FL FIT -Cash Pool (CP) Total investments -General Fund Impact Fee Fund Florida Fixed Income Trust FL FIT -Cash Pool (CP) Total investments -Impact Fee Fund $ $ $ $ Cost Basis Fair Value (NA V)/ Carrying Amount 26,806 _$ ____ 2_6,_80_6 26,806 _$ ____ 2 __ 6,_80_6 166 ,2 99 _$ ___ 1_6~6,2_9_9 166 ,299 _$ ___ 1_66 __ ,2_9_9 The Florida Fixed Income Trust (FL FIT) Cash Pool (CP) was established in accordance with Florida Statute 163.01 to provide local and state government entities access to diversified, high credit quality strategies for their cash reserves. The Florida Fixed Income Trust (FL FIT) Cash Pool is a floating net asset value (NA V) pool, managed to dollar-in/dollar-out and provides same-day liquidity for participants. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE C -INVESTMENTS, CONTINUED Page 25 of70 The Florida Fixed Income Trust (FL FIT) Cash Pool (CP) is an external 2a7-like investment pool , which is self administered . The Florida Fixed Income Trust (FL FIT) Cash Pool (CP) is not categorized as it is not evidenced by securities that exist in physical or book entry form . The Florida Fixed Income Trust (FL FIT) Cash Pool are stated at fair value, as provided by paragraph 11 of GASB Statement #31. These investments are subject to the risk that the market value of an investment, collateral protecting a deposit or securities underlying an investment will decline and lose value . The Pool is not SEC registered . The Pool reports at fair market value. FL FIT is not required to register (and has not registered) with the SEC; however, the fund is an external investment pool that has historically adopted operating procedures consistent with those required by Florida Statutes . The District's investment in the Florida Fixed Income Trust (FL FIT) Cash Pool (CP) represented approximately less than 1 % of the Fund's total investments. At September 30, 2024, the Cash Pool's investments consisted of the following: 17% with commercial paper; 76% with institutional money market deposits and mutual funds; and 7% with certificates of deposit. These short-term investments are stated at fair value. Investment income is recognized as earned and is allocated to participants of the Fund based on their equity participation. The District adheres to GASB Statement No. 79 but does not meet all the GASB Statement No. 79 criteria. Therefore, the Fund meets the criteria to make GASB Statement No. 31 disclosures which are required related to its FL FIT Cash Pool investment: Limitation on Participant Contributions and Withdrawals: FL FIT-Cash Pool has no limitations or restrictions on participant withdrawals , does not charge liquidity fees , and has not put in place a redemption gate. Each participant has the ability to withdraw 100 percent of its account balance any business day that the Investment Advisor is open for trading . The Investment Advisor is open for trading , and the funds will settle on the trading date for trades placed prior to 2:00 PM Eastern Time, and trade date plus one business day (T+l) for trades placed after 2:00 PM Eastern Time. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE C -INVESTMENTS, CONTINUED Page 26 of70 Investment Income , Unrealized Gains/Losses , and Realized Gains /Losses : FL FIT-Cash Pool follows industry practice and records security transactions on a trade date basis. Dividend and interest income is recognized on an accrual basis . Net investment income is distributed to participants at least monthly . Unrealized and realized gains and losses , if any , are distributed to participants on a daily and monthly basis. Distributions to participants are recorded on the ex-dividend date. Valuation: Fair value of the investments in the FL FIT-Cash Pool is determined on a daily basis . Fair value increases and decreases are included in the change in unrealized gains and losses during th e period . Net realized gains and losses on sales of securities are computed based on specific identification . Mutual fund securities are recorded at fair value as determined by using net position value as furnished by a pricing service and the number of shares owned . Redemption Gates : Per the Administrator there are no redemption gates . Liquidity Fees: Per the Administrator there are no liquidity fees. Redemption Fees : As of September 30, 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. Fair Value : The carrying value of the investments held by the District approximate fair value. However, it is the opinion of the management of Florida Fixed Income Trust (FL FIT) it is exempt from GASB Statement No .72 financial hierarchy disclosures . Foreign Currency Risk: Florida Fixed Income Trust (FL FIT) Cash Pool is not exposed to foreign currency risk during the year ended September 30 , 2024 . Securities Lending: Florida Fixed Income Trust (FL FIT) Cash Pool did not participate in securities lending program during the period October 1, 2023 , through September 30 , 2024. Florida Fixed Income Trust (FL FIT) Cash Pool does provide separate audited financial statements for the year ended June 30 , 2024 . At September 30, 2024 , the District reported Florida Fixed Income Trust (FL FIT) Cash Pool investments of $193,105. The Florida Fixed Income Trust (FL FIT) Cash Pool carried a credit rating of AAAf/S 1 by Fitch Rating and had a dollar weighted average days to maturity (W AM) of 50 days at September 30, 2024 . The Florida Fixed Income Trust (FL FIT) Cash Pool weighted average days to final maturity (WAL) was 305 days at September 30, 2024. The Cash Pool's duration is as follows: expected target duration 0-.5 years; effective duration of .140 years. Rule 2a7 allows funds to use a constant of $1.00 per share. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE D -DUE TO/FROM OTHER GOVERNMENTS Page 27 of70 Due from other governments at September 30, 2024, are as follows: Description Collier County Tax Collector Other governments Collier County BOCC -Impact fees $ General Fund 101 ,957 5,332 107 ,28 9 Impact Fee Fund 77 ,8 37 $ 185 ,126 Management of the District believes the due from other governments amounts to be fully collectible . NOTE E -DUE TO/FROM OTHER FUNDS lnterfund receivables and payables at September 30 , 2024 , are as follows : General Fund : Impact Fee Total General Fund Special Revenue Fund: Impact Fee : General Total Special Revenue Fund Total $ $ Due From Other Funds $ $ Due To Other Funds lnterfund receivables and payables were eliminated for presentation purposes in the Statement of Net Position at September 30 , 2024. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE F -CAPITAL ASSETS ACTIVITY Page 28 of70 The following is a summary of changes in capital assets activity for the year ended September 30, 2024: Balance Balance October 1 Increases/ Decreases/ Adjustments/ September 30 2023 Additions Deletions Reclassifications 2024 Capital Assets Not Being Depreciated : Land $ 390 ,256 $ -$ -$ -$ 390,256 Construction in Progress 6,508 ,106 348 ,770 (6 ,856 ,876) Total Capital Assets Not Being Depreciated 6,898 ,362 348 ,770 (6,856,876) 390,256 Capital Assets Being Depreciated : Buildings 13 ,3 16 ,996 6 ,856 ,876 20 ,173,872 Equipment & Machinery 2,309 ,079 167 ,999 (34 ,748) 2,442 ,330 Vehicles 4,840 ,528 1,468,791 (115 ,628) 6,193,691 Total Capital Assets Being Depreciated 20,466 ,603 1,636,790 (150 ,376) 6,856,876 28,809,893 Less Accumulated Depreciation : Buildings (I , 194 ,828) (459 ,978) (1,654 ,806) Equipment & Machinery (958 ,190) (336 ,078) 31 ,387 (1,262,881) Vehicles {1,645 ,704) (453 ,987) I 15,628 (1 ,984 ,063) Total Accumulated Depreciation {3 ,798,722) (1 ,250,043) 147 ,015 (4,901 ,750) Total Capital Assets Being Depreciated , Net 16 ,667 ,881 386 ,747 (3 ,361) 6,856 ,876 23 ,908 ,143 Capital Assets , Net $23 ,566 ,243 $ 735 ,51 7 $ (3,361) _$_~~-24,298 ,399 Related debt (9,791 ,790) Net investment in capital assets $ 14 ,506 ,609 Depreciation expense was charged to the following functions during the year ended September 30, 2024: Amount General Government $ 1,250 ,043 Total Depreciation Expense $ 1,250,043 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE F-CAPITAL ASSETS ACTIVITY, CONTINUED Page 29 of70 The District has capital assets held under financing leases with a total cost of $3,798,589 at September 30, 2024. The capital assets held under financing lease had accumulated depreciation of $1,303,150 and depreciation expense of $407 ,608 as of and for the year ended September 30, 2024. NOTE G · LONG-TERM LIABILITIES The following is a summary of changes in long-term liabilities for the year ended September 30, 2024: Balance Balance Amounts October I Retirements / September 30 Due Within 2023 Additions Adjustments 2024 One Year Net pension liability -FRS $ 4 ,616 ,173 $ 872 ,123 $ -$ 5,488 ,296 $ Net pension liability -HIS 1,099 ,842 43,231 1,143 ,073 Financing lease -BC Explorer 29 ,099 (4,431) 24 ,668 7,884 Financing lease -F250 68 ,690 (9,676) 59 ,014 13 ,849 Financing lease -pumper 454 ,474 (85,679) 368 ,795 89,271 Financing lease -radios 114 ,059 (36 ,067) 77 ,992 37,986 Financing lease -ladder truck 959,192 (126 ,017) 833 ,175 129,520 Financing lease -tanker truck 285 ,483 (17 ,740) 267 ,743 18,357 Financing lease -F250 40,263 (7 ,792) 32 ,471 10 ,361 Financing lease -Pierce pumper 711 ,014 (70 ,648) 640 ,366 72,605 Financing lease -Expedition 105,616 (19 ,797) 85 ,819 14 ,863 Financing lease -Expedition 96 ,709 (18 ,127) 78 ,582 13 ,609 Construction loan (Sta 32) 4 ,930 ,435 (307 ,270) 4,623 ,165 317 ,638 Construction loan (Sta 30) 2,700 ,000 (2 ,700 ,000) Construction loan (Sta 30) 2,700 ,000 2,700,000 103,908 Compensated Absences 533 ,435 (9 ,779) 523,656 Net OPEB Liability 266 641 90 I 17 356,758 $ 16,808 ,800 $ 3,907,796 $ (3,413 ,023) $ 17 ,303,573 $ 829,851 The following is a summary of the long-term obligations at September 30, 2024: Net pension obligation -FRS pension plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida Retirement Plan. Net pension obligation -HIS plan . This amount is actuarially determined through calculation based upon the audited financial statements of the Florida Retirement Plan. The District entered into a six year $46 ,444 financing lease agreement. Annual payments are $8 ,929 including interest at 4 .2%. Payments began on May 31 , 2022, with a final payment due May 31 , 2027 . The lease is collateralized by the Ford Explorer. The District entered into a six year $85,039 financing lease agreement. Annual payments are $16 ,349 including interest at 4 .2%. Payments began on June 26, 2023 , with a final payment due June 26 , 2028 . The lease is collateralized by the F250 truck . Amount $ 5,488 ,296 1,143,073 24,668 59,014 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE G · LONG-TERM LIABILITIES, CONTINUED The District entered into a eight year $764 ,0 74 financing lease agreement. Annual payments are$ I 04,731 including fixed intere st of 4 .19 %. Payments began on January 7, 2020 with a final payment due January 7, 2027. The lease agreement is collateralized by the respective pumper truck . The District entered into a seventy-five (75) month $23 1,7 13 financing lea se agreement. Initial payment of $23,171, then six (6) annual payments of $42,135 including fixed interest of 5.32%. Payments began on October I , 2019, with a final payment due October I , 2025. The lease is collateralized by the respective radio equipment. The District entered into a ten (I 0) year $1,315,897 financing lease agreement. Annual payments are $152,682 including fixed interest of 2. 78 %. Payments began on June 20, 2021, with a final payment due on April 20, 2030. The lease is collateralized by the respective ladder truck. The District entered into a fifteen ( 15) year $319 ,193 financing lease agreement. Annual payments are $27,675 including fixed interest of 3.48%. Payments began on October 19 , 2021, with a final payment due on October 19 , 2035 . The lease is collateralized by the tanker truck . Th e District entered into a six ye ar $61,330 financing lease agreement. Annual payments are $11,791 including interest at 4.4%. Payments began on May I 0 , 2022 , with a final payment due May 10 , 2027. The lease is collateralized by the respective F250 truck . The District entered into a ten year $779 ,758 financing lease agreement. Annual payments are $90,339 including interest at 2.77%. Payments began on December 20 , 2022 , with a final payment due December 20 , 203 I . The lease is collateralized by the respective Pierce pumper. The District entered into a six year $105,6 I 6 financing lease agreement. Annual payments are $21,048 including interest at 7.2%. Payments began on April 30 , 2024 , with a final payment due April 30, 2029 . The lease is collateralized by the respective Ford Expedition . The District entered into a six year $96,709 financing lease agreement. Annual payments are $19 ,273 indluding interest at 7.2 %. Payments began on April 30, 2024 , with a final payment due April 30 , 2029. The lease is collateralized by the respective Ford Expedition. The District entered a $5,500 ,000 loan March 2, 2020, to fund the construction of Station 32 . The loan is payable in one hundred eighty ( 180) payments of principal and interest of $38,388 beginning October 21 , 2022 . The loan matures September 21 , 2036 . Interest accrues at 3.15 % per year. Thi s loan is collateralized by Impact Fees . The District entered into a $2 ,700,000 interest only loan on September I , 2023, to fund the construction of Station 30. Monthly interest payments at 4.55 % are due monthly begi nning October 21 , 2023 . Final payment of principal plus accrued interest was due on September 21, 2024 . The loan was replaced with the $2 ,700 ,000 long term loan . The loan was collateralized by Ad Valorem revenues. This loan replaced the original $3 ,000 ,000 construction loan for Station 30. Page 30 of70 368,795 77,992 833,175 267,743 32,471 640,366 85 ,819 78 ,582 4 ,6 23 ,165 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE G · LONG-TERM LIABILITIES, CONTINUED The District entered into a $2,700,000 loan on September 20 , 2024 to refinance the loan for construction of Station 30. Payments of $22 ,212 including interest at 5 .5% are due monthly beginning November 1, 2024, with a final payment due on October 1, 2039 . The loan is collateralized by impact fees and Gaming Compact revenues . This loan replaced the $2 ,700 ,000 construction loan for Station 30. Non-current portion of compensated absences. Employees of the District are entitled to paid leave (sick, vacation and comp time) based on length of service and job classification . Net OPEB liability • actuarially determined -GASB No . 75 . Total long-term liabilities Current portion Noncurrent portion Page 31 of 70 2,700,000 523,656 356,758 17 ,3 03,573 (829,85 I) $ 16 ,473 ,722 The annual debt service requirements at September 30, 2024, were as follows: Years Ending Total Total September 30 Princieal Interest Total 2025 $ 829,851 $ 379,510 $ 1,209,361 2026 876,636 345,526 1,222 ,162 2027 955,837 311,657 1,267 ,494 2028 779,050 275,526 1,054 ,576 2029 792,666 245,560 1,038 ,226 2030-2034 3,383 ,8 97 814,221 4,198 ,118 2035-2039 2,151,743 213,471 2,365 ,214 2040 22 ,110 103 22,213 Total debt 9,791 ,790 2,585 ,574 12 ,377,364 Net pension liability -FRS 5,488,296 5,488 ,296 Net pension liability -HIS 1,143,073 1,143 ,073 Accrued compensated absences -vacation 523 ,6 56 523,656 Net OPEB obligation 356,758 356,758 Total long-term debt $ 17 ,303,573 $ 2,585,574 $ 19 ,889,147 Interest expense related to the capital leases payable was $98,484 for the year ended September 30, 2024. Interest expense related to the construction loans was $278,288 for the year ended September 30, 2024. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN General Information about the Florida Retirement System The Florida Retirement System ("FRS") was created in Chapter 121 , Florida Page 32 of70 Statutes. The FRS was created to provide a defined benefit pension plan ("Pension Plan") for participating public employees. All District employees are participants in the Statewide Florida Retirement System (FRS) under authority of Article X , Section 14 of the State Constitution and Florida Statutes , Chapters 112 and 121. The FRS was amended in 1998 to add the Deferred Retirement Option Program ("DROP") under the defined benefit plan and amended in 2000 to provide an integrated defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112 , Florida Statutes , established the Retiree Health Insurance Subsidy (HIS) Program , a separate cost-sharing, multiple-employer defined benefit pension plan to assist retired members of any State-administered retirement system in paying the costs of health insurance . Essentially all regular employees of the District are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122 , Florida Statutes; Chapter 112, Part IV , Florida Statutes; Chapter 238, Florida Statutes ; and Florida Retirement System Rules , Chapter 60S , Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services , Division of Retirement, and consists of two cost-sharing, multiple-employer defined benefit plans (Pension and HIS Plans) and other nonintegrated programs. A comprehensive annual financial report of the FRS , which includes its financial statements , required supplementary information , actuarial report, and other relevant information dated June 30 , 2024 , is available from the Florida Department of Management Services' Website (www.dms .mytlorida.com). The District's total pension expense, $1 ,206 ,428 for the year ended September 30 , 2024, is recorded in the government-wide financial statements. Total District actual retirement contribution expenditures were $1 ,102,119, $751 ,548 and $645 ,398 for the years ended September 30 , 2024 , 2023 , and 2022 , respectively . The District contributed 100 % of the required contributions . IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 33 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan Plan Description. The FRS Pension Plan ("Plan") is a cost-sharing, multiple- employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class -Members of the FRS who do not qualify for membership in the other classes. Senior Management Service Class (SMSC) -Members in senior management level positions. Special Risk Class -Members who are employed as certified firefighters and meet the criteria to qualify for this class. Elected Officials -Members who are elected by the voters within the District boundaries . Employees enrolled in the Plan prior to July 1, 2011 , vest at six years of creditable service and employees enrolled in the Plan on or after July 1, 2011, vest at eight years of creditable service. All vested members , enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service , except for those members classified as special risk who are eligible for normal retirement benefits at age 55 and 6 years of service or at any age after 25 years of service . All members enrolled in the Plan on or after July 1, 2011 , once vested, are eligible for normal retirement benefits at age 65 and 8 years of service or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 with 8 years of service or at any age after 30 years of service. However, effective July 1, 2023 , for special risk who enrolled on or after July 1, 2011, normal retirement date changed to the earlier of 25 years of creditable service or age 55. Members of both Plans (Pension and HIS) may include up to 4 years of credit for military service toward creditable service. The Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date . The Plan provides retirement, disability, death benefits, and annual cost of living adjustments to eligible participants. DROP , subject to provisions of Section 121.091 , Florida Statutes, permits employees eligible for normal retirement under the Plan to defer receipt of monthly benefit payments while continuing employment with an FRS employer. An employee may elect to participate in DROP at any time after reaching normal retirement date. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 34 of70 NOTE H-RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued Effective July 1, 2023, an employee may participate in DROP for a period not to exceed 96 months (8 years) after electing to participate except for certain instructional personnel who can participate for 120 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. Interest accrues at 4% on DROP accumulation held on or after July 1, 2023, and at 1.3 % prior. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. The restricted 12 month election window was removed. Participants may elect to enter DROP at anytime after becoming fully vested and reaching normal retirement age. Benefits Provided. Benefits under the Plan are computed on the basis of age, and/or years of service , average final compensation , and credit service . Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the five highest fiscal years' earnings; for the members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on retirement plan and/or the class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. The following chart shows the percentage value of each year of service credit earned: Class, Initial Enrollment, and Retirement Age/Years of Service Regular Class and elected members initially enrolled before July I , 20 I I Retirement up to age 62, or up to 30 years of service Retirement at age 63 or with 3 I years of service Retirement at age 64 or with 32 years of service Retirement at age 65 or with 33 or more years of service Regular Class and elected members initially enrolled on or after July 1, 2011 Retirement up to age 65 or up to 33 years of service Retirement at age 66 or with 34 years of service Retirement at age 67 or with 35 years of service Retirement at age 68 or with 36 or more years of service Special Risk Regular Service from December 1, 1970 through September 30, 1974 Service on or after October 1, 1974 %Value 1.60 1.63 1.65 1.68 1.60 1.63 1.65 1.68 2 .00 3 .00 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 35 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued Senior Management Servic e Class El ected Officers' Class 2 .00 3.00 As provided in Section 121.101 , Florida Statutes , if the member is initially enrolled in the FRS before July 1, 2011 , and all service credit was accrued before July 1, 2011 , the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011 , and has service credit on or after July 1, 2011 , there is an indiv idually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by di v iding the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. Plan members initially enrolled on or after July 1, 2011 , will not have a cost-of-li v ing adjustment after retirement. Contributions. The Florida Legislature establishes contribution rates for participating employers and employees. Contribution rates during the year ended September 30 , 2024 , were as follows : Percent of Gro ss Sal a!}'.* Class (I) Florida Retirement System, Reg ular Florida Retirement Sys tem, Senio r Man age ment Servic e Florida Retirement Sys tem, Special Ri sk Deferred Retirement Option Program -A pplicabl e to Memb ers fr om All of th e Above Cla sses Flo ri da Retirement Sys tem, Re empl oyed Retiree Florida Retirement Sys tem, Ele cted Offici a l No tes: Emelo~ee 3.00 3.00 3.00 0.00 (2) 3.00 (I) Co ntribu tion rates are depend ent upon re tireme nt class in whi ch reempl oyed. Emelo~er (2) 13.63 34.52 32.79 2 1.1 3 NI A 58 .68 (2) Empl oyer rates include 2.0 perce nt fo r th e pos t empl oyment hea lth in surance sub sidy. Also, empl oyer rates , oth er than fo r DROP parti cip ants , includ e .06 percent fo r administrati ve costs for th e I nves trn en t Pl an . Rates fo r 711124 -6130/2 5. (3) Empl oyer rates include 2.0 perce nt fo r th e post employment hea lth in sura nce sub si dy. A lso , em pl oyer rates , other than for DR OP pa rti cipants , inc lud e .06 percent fo r admin istrative cos ts fo r th e In ves tm ent Pl an. Rates fo r 7/1 123 -6130124 . As defined by the Pl an . Emelo~er (3) 13.57 34 .52 32.67 21.13 NI A 58.68 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 36 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Def erred Inflows of Resources Related to the Pension Plan. At September 30, 2024, the District reported a pension liability of $5,488 ,296 for its proportionate share of the net pension liability . The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2024. The District's proportionate share of the net pension liability was based on the District's 2023-24 fiscal year contributions relative to the total 2023-24 fiscal year contributions of all participating members. At September 30, 2024, the District's proportionate share was .014187252 percent, which was an increase of .002602459 percent from its proportionate share measure as of September 30 , 2023 . For the year ended September 30, 2024, the District recognized a pension expense of $1,134,042. In addition, the District reported deferred outflows of resources and deferred inflows of resources related to the pension from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences between expected and actual experience $ 554,465 $ Change of assumptions 752,219 Net difference between projected and actual earnings on pension plan investments 364,781 Changes in proportion and differences between District contribution s and proportionate share of contributions 830,847 137 ,273 District contributions subsequent to the measurement date 244 ,169 Total $ 2,381 ,700 $ 502 ,054 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 37 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued The deferred outflows ofresources related to the FRS pension , totaling $244,169, resulting from District contributions subsequent to the measurement date , will be recognized as a reduction on the net pension liability in the fiscal year ended September 30 , 2025 . Other amounts reported as deferred outflows ofresources and deferred inflows of resources related to the pension will be recognized in pension expense over the remaining service period of 5.3 years as follows: Fiscal Years Ending September 30 2025 2026 2027 2028 2029 Thereafter Total Amount $ 373,981 373 ,981 373 ,981 373 ,980 465 ,176 (325 ,622) $ 1,635,477 Actuarial Assumptions. The total pension liability in the July 1, 2024 , actuarial valuation was determined using the following actuarial assumptions , applied to all periods included in the measurement: Valuation date Measurement date Inflation Real payroll growth Salary increases Investment rate of return Actuarial cost method July 1, 2024 June 30 , 2024 2.40 percent 1.1 percent 3 .50 percent, average , including inflation 6 . 70 percent, net of pension plan investment expense, including inflation Individual entry age Mortality rates were based on the Generational PUB-2010 with Projection Scale MP-2021. The actuarial assumptions used in the July 1, 2024, valuation were based on the results of an actuarial experience study for the period July 1, 2018 , through June 30 , 2023. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 38 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation {I) Return Return Deviation Cash 1.00% 3.3% 3.3 % 1.1% Fixed income 29 .00 % 5.7% 5.6 % 3.9 % Global equity 45.00% 8.6% 7.0 % 18.2% Real estate (property) 12.00% 8.1% 6.8 % 16 .6% Private equity 11.00% 12.4% 8.8 % 28.4% Strategic investments 2 .00% 6.6% 6.2 % 8 .7% Total 100.00% Assumed inflation -Mean 2.40% 1.50% (1) As outlined in the Plan's investment policy Money-weighted Rate of Return. The annual money-weighted rate of return on the FRS Pension Plan investments for the year ended September 30, 2024, was 10.33%. Discount Rate. The discount rate used to measure the total pension liability was 6.70 percent. The Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 39 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS Pension Plan, continued Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the District's proportionate share of the net pension liability calculated using the discount rate of 6.70 percent, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I-percentage-point lower (5.70 percent) or I-percentage-point higher (7.70 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase {5.70%) {6.70%) (7 .70%) District's proportionate share of the net FRS pension liability $ 9,653 ,721 $ 5,488 ,296 $ 1,998 ,870 Pension Plan Fiduciary Net Position. Detailed information about pension plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Annual Comprehensive Financial Report (FRS ACFR) dated June 30, 2024. The FRS ACFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O . Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http://www . dms .myflorida. com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30, 2024 , the District reported a payable of $14,074 for the outstanding amount of contributions in the pension plan required for the year ended September 30, 2024. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 40 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED Health Insurance Subsidy {HIS) Plan Plan Description. The Health Insurance Subsidy Plan ("HIS Plan") is a cost-sharing, multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Division of Retirement within the Florida Department of Management Services. Benefits Provided. For the year ended September 30 , 2022 , eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of creditable service completed at the time of retirement multiplied by $5 . The payments are at least $30 but not more than $150 per month, pursuant to Section 112 .363 , Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage , which can include Medicare. Contributions. The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members . For the years ended September 30 , 2024 and 2023 , the contribution rate was 2.0 percent of payroll pursuant to Section 112.363 , Florida Statutes. The District contributed 100 percent of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which HIS payments are authorized . HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants , benefits may be reduced or cancelled. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Def erred Inflows of Resources Related to the HIS Plan. At September 30, 2024, the District reported a HIS liability of $1 ,143,073 for its proportionate share of the net HIS Plan's net pension liability . The net pension liability was measured as of June 30 , 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July I , 2024 . The District's proportionate share of the net HIS liability was based on the District's IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 41 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED Health Insurance Subsidy (HIS) Plan, continued 2023-24 fiscal year contributions relative to the total 2023-24 fiscal year contributions of all participating members. At September 30, 2024, the District's proportionate share was .007619993 percent, which was an increase of .000694615 percent from its proportionate share measured as of September 30, 2023 . For the fiscal year ended September 30, 2024, the District recognized HIS expense of $72,386. In addition , the District reported deferred outflows ofresources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences between expected and actual experience $ 11,037 $ 2,195 Change of assumptions 20 ,230 135 ,325 Net difference between projected and actual earnings on HIS pension plan investments 413 Changes in proportion and differences between District HIS contributions and proportionate share of HIS contributions 159 ,574 9,727 District contributions subsequent to the measurement date 19,230 Total $ 210,071 $ 147,660 The deferred outflows of resources related to HIS, totaling $19,230, resulting from District contributions subsequent to the measurement date, will be recognized as a reduction on the net pension liability in the year ended September 30 , 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense over the remaining service period of 6.3 years as follows: Fiscal Years Ending September 30 2025 2026 2027 2028 2029 Thereafter Total Amount $ 8,122 8,122 8,122 8,121 8,225 2 ,469 $ 43 ,181 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 42 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED Health Insurance Subsidy (HIS) Plan, continued Actuarial Assumptions. The total pension liability in the July 1, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Real Payroll Growth Salary Increases Municipal Bond Rate Annual Cost Method 2 .40 percent I. I percent 3 .50 percent , average, including inflation 3.93 percent Individual entry age Mortality rates were based on the Generational PUB-2010 with Projected Scale MP-2021. Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has been completed for the Plan. Discount Rate. The discount rate used to measure the total HIS liability was 3.93 percent. In general, the discount rate for calculating the total HIS liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index . Sensitivity of the District's Proportionate Share of the Net HIS Liability to Changes in the Discount Rate. The following presents the District's proportionate share of the net HIS liability calculated using the discount rate of 3.93 percent, as well as what the District's proportionate share of the net HIS liability would be if it were calculated using a discount rate that is I-percentage-point lower (2.93 percent) or I-percentage-point higher (4 .93 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase {2.93 %) (3.93%) (4.93 %) District's proportionate share of the net HIS liability $ 1,301,242 $ 1,143,073 $ 1,011,768 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 43 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED Health Insurance Subsidy (HIS) Plan, continued Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Annual Comprehensive Financial Report (FRS ACFR) dated June 30, 2024 . The FRS ACFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P .O . Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http ://www .dms .myflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30 , 2024 , the District reported a payable of $898 for the outstanding amount of contributions to the HIS plan required for the fiscal year ended September 30 , 2024 . FRS -Defined Contribution Pension Plan The SBA administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501 , Florida Statutes , eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. District employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law , but the ultimate benefit depends in part on the performance of investment funds . Benefit terms, including contribution requirements , for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class , Elected County Officers , etc.), as the FRS defined benefit plan . Contributions IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 44 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS -Defined Contribution Pension Plan, continued are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Allocations to the investment member's accounts during the 2023-24 fiscal year were as follows: Percent of Gross Salary* Class (I) Employee Employer (2) Employer (3) Florida Retirement System , Regular Florida Retirement System, Senior Management Service Florida Retirement System, Special Risk Florida Retirement System, Elected Official Notes : 3.00 3.00 3.00 3.00 (I) Contribution rates are dependent upon retirement class in which reemployed . 8.30 9.67 16 .0 13 .34 (2) Employer rate s include 1.66 percent for the post employment health insurance subsidy . Also, employer rates , other than for DROP participants, include .06 percent for administrative costs for the In vestm ent Plan . Rates for 7/1/22 -6/30/23 . (3) Employer rates include 2.0 percent for the post employment health insurance subsidy. Also , employer rates, other than for DROP participants, include .06 percent for administrative costs for the Investment Plan . Rate s for 7/1/23 -6/30/24 . * As defined by the Plan . 8.3 0 9.67 16 .0 13.34 Effective July 1, 2023, employer contribution rates increased by 2% in all membership classes. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5 year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2024, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the District. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 45 of70 NOTE H -RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN, CONTINUED FRS -Defined Contribution Pension Plan, continued After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan , or remain in the Investment Plan and rely upon that account balance for retirement income . The District's Investment Plan pension expense totaled $279,304 for the fiscal year ended September 30, 2024. Payables to the Investment Plan. At September 30, 2024, the District reported a payable of $0 for the outstanding amount of contributions to the Plan required for the fiscal year ended September 30, 2024. Other Retirement Plan Effective June 2020, the District initiated a 401(a) plan for the District's Fire Chief. Effective January 2019, the District began offering two (2) 457(b) Deferred Compensation Plans to all employees which allows for salary deferrals with no employer contributions. NOTE I -PROPERTY TAXES Property taxes are levied after formal adoption of the District's budget and become due and payable on November 1 of each year and are delinquent on April 1 of the following year. Discounts on property taxes are allowed for payments made prior to the April 1 delinquent date. Tax certificates are sold to the public for the full amount of any unpaid taxes and must be sold not later than June I of each year. The billing, collection, and related recordkeeping of all property taxes is performed for the District by the Collier County Tax Collector. No accrual for the property tax levy becoming due in November 2024, is included in the accompanying financial statements , since such taxes are collected to finance expenditures of the subsequent period. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE I -PROPERTY TAXES, CONTINUED Page 46 of70 Procedures for collecting delinquent taxes, including applicable tax certificate sales and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is approximately two years after taxes become delinquent and occurs only upon request of a holder of a delinquent tax certificate. As of September 30 , 2024, $101,957 was due from the Collier County Tax Collector for ad valorem taxes and excess fees . Important dates in the property tax cycle are as follows: Assessment roll certified Millage resolution approved Beginning of fiscal year for which taxes have been levied Taxes due and payable (levy date) Property taxes payable - maximum discount (4 percent) Due date Taxes become delinquent (lien date) Tax certificates sold by the Collier County Tax Collector July 1 No later than 93 days following certification of assessment roll October I November I with various discount provisions through March 31 30 days after levy date March 31 April I Prior to June I For the year ended September 30, 2024, the Board of Commissioners of the District levied ad valorem taxes at a millage rate of $3.75 per $1,000 (3.75 mills) of the 2023 net taxable value of real property located within the District. NOTE J -IMP ACT FEE FUND ACTIVITY During the year ended September 30, 2024, the Impact Fee Fund had the following activity: Unearned revenue , October I , 2023 Impact fee receipts* Debt proceeds Interest income Professional fees (impact fee study) Commissions (admin fee) -paid to Collier County Debt service -principal Debt service -interest Capital outlay Unearned revenue, September 30 , 2024 * Includes $77 ,837 due from Collier County. $ $ Amount 3,306,227 1,958 ,408 141,617 (19 ,544) (441 ,080) (183 ,901) (1 ,490 ,376) 3,271 ,351 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE J -IMPACT FEE FUND ACTIVITY, CONTINUED Page 47 of70 The District used impact fees to purchase a Pumper truck. The District placed the order in March 2024 and delivery is expected to occur 40 months after the date of purchase. NOTE K -RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets ; errors and omissions ; injuries to employees; and natural disasters. Insurance programs for general/professional liability, automobile and property are covered by commercial insurance. The District retains the risk of loss up to a deductible amount (ranging from $0 to $2 ,500) with the risk ofloss in excess of this amount transferred to the insurance carrier with limits of liability of $1 ,000 ,000 per occurrence and $10,000 ,000 in the aggregate . The District is third party insured for employee health, dental and vision as well as workers' compensation. NOTE L-FUND BALANCE ALLOCATIONS Fund balance was allocated for the following purposes at September 30 , 2024: Nonspendable Fund Balance General Fund Prepaid expenditures Total Nonspendable Fund Balance -General Fund Assigned Fund Balance General Fund Assigned for fiscal year startup (90 day operations) Vehicle Capital purchases Disaster/Emergency Debt reduction Budgeted deficit COVID Grant Replacement Vehicle Building Station 31 Total Assigned Fund Balance -General Fund Unassigned Fund Balance Unassigned Total Fund Balance -General Fund $ Amount 135 ,642 135 ,642 1,400 ,000 26 ,500 97,000 197 ,128 102 ,798 361 ,103 25 ,000 48 ,154 2,257 ,683 $ 2,393 ,325 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 48 of70 NOTE M-POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB) Plan Description The District's defined contribution OPEB Plan provides the opportunity to obtain health insurance , pharmacy, dental and vision benefits to its retired employees and their dependents. The year ended September 30 , 2018 , was the District's transition year and as such , the District implemented GASB No. 75 "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions". GASB No. 75 requires the District record its actuarially determined total OPEB liability . All retired full-time employees are eligible for OPEB benefits if actively employed by the District immediately before retirement. As of September 30, 2024, there were no retirees eligible to receive benefits . At September 30, 2024, there were forty-four (44) active full time eligible District employees and zero (0) inactive. The benefits are provided both with contractual or labor agreements. The benefits require 100% contribution from the retirees, depending on certain specified criteria and, in particular, length of creditable employment. There is no requirement for the District to contribute toward this benefit and the District does not contribute toward this benefit. The minimum retirement age is 62 for administrative and 55 years old for special risk. The minimum years of service requirement is 10 years consistent with the FRS Plan. The District's contributions for these benefits totaled $0 during the year ended September 30 , 2024. Funding Policy The District's OPEB benefits are unfunded . The retiree is eligible for benefits under the District's health and pharmacy plan, but is obligated to reimburse the District for 100% of the cost of the retiree's health coverage. As such , the District has no ultimate obligation (explicit subsidy) for the retiree's health insurance premium. The District acts as agent for the retiree on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due. The District does , however, incur the cost of premium rate being increased on its active employees (implicit subsidy) due to providing coverage to its retirees. The District has not determined if a separate trust fund or equivalent arrangement will be established into which the District would make contributions to advance-fund the obligation. Therefore , no separate financial statement is issued. All required disclosures are presented herein . The Plan's measurement date was September 30, 2024. The Plan's valuation date was September 30 , 2024 . IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 49 of70 NOTE M -POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Funding Policy, continued The retiree pays 100% of the retiree health coverage therefore there is no explicit subsidy. The retiree may purchase dependent coverage through the District. At age 65, the retiree then must move to Medicare but may continue to purchase dental and vision coverage through the District. The District finances the benefits on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due. The District subsidizes the premium rates paid by retirees by allowing them to participate at blended premium rates for both active and retired employees . These rates provide an implicit subsidy for retirees because, on an actuarial basis, retiree claims are expected to result in higher costs to the plan on average than those of active employees. The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 50 of70 NOTE M -POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Actuarial Methods and Assumptions, continued At September 30, 2024, the District's Net OPEB Liability of $356,758 was measured as of September 30, 2024, and was determined by an actuarial valuation as of that date using the alternate measurement method. The following actuarial assumptions and other inputs were applied to all periods included in the measurement: The following simplifying assumptions were made: Mortality -Life expectancies were based on PubG-2010 Mortality Tables for Males and Females projected 10 years using MP-2019. Actuarial Cost Method -Entry age normal cost method . (level% of pay) Annual healthcare cost trend using the Society of Actuaries Long-Run Medical Cost Trend Model baseline assumptions with an initial rate of 6 .75% per year trending to ultimate 4 .00% by 2075. Turnover -Derived from data maintained by the US Office of Personnel Management regarding the most recent experience of the employee group covered by the Federal Employees Retirement System. Amortization Period: Rolling 20 year amortization Amortization Method: Level percentage of payroll The discount rate was 4.87% for 2023 (4.77% for 2022) (2.43% for 2021) (2.41 % for 2020) (2.21 % for 2019) (4.23 % for 2018) (2.8% for 2017) and was based on the 20 Year Municipal Bond Rate with Aa2/ AA or higher. Salary Increases Discount Rate Inflation Rate Years to Ultimate The FRS salary scale was used. Participation percentage: 20% Valuation Date 2.50% 4.06% 2.50% 51 years September 30, 2024 The actuarial assumptions used in the September 30, 2024 (valuation date) were calculated using alternative measurement method in accordance with GASB methodology. The rationales for selecting each of the assumptions used in the financial accounting valuation and for the assumptions changes summarized above are to best reflect the current market conditions and recent plan experience. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 51 of70 NOTE M -POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Changes in the Net OPEB Liability Balance at September 30, 2023 Changes for the Year: Service Cost Interest Cost on Total OPEB Liability Change in Benefit Terms Difference Between Expected and Actual Experience Changes in Assumptions Benefit Payments Net Changes Balance at September 30, 2024 Amount $ 266,641 14,564 13,633 21,138 43,308 (2,526) 90,117 $ 356,758 The following presents the net OPEB liability of the District as well as what the District's net OPEB liability would be if it were calculated using a discount rate that is I percent higher or 1 percent lower than the current discount rate. I% Decrease Current Rate I% Increase 3.06% 4.06% 5.06% Net OPEB Liability $ 421 ,745 $ 356,758 $ 304 ,308 The following presents the net OPEB liability of the District as well as what the District's net OPEB liability would be if it were calculated using healthcare trend rates that are I percent higher or I percent lower than the current healthcare trend rate. Net OPEB Liability I% Decrease Trend Rate I% Increase 3.0-5.75% 4 .0-6.75% 5.0-7.75% $ 301 ,290 $ 356 ,758 $ 425 ,587 IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 Page 52 of70 NOTE M -POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Changes in the Net OPEB Liability, continued For the year ended September 30 , 2024, the District recognized OPEB expense ( credit) of $96,418. At September 30 , 2024 , the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Differences Between Expected and Actual Experience Changes in Assumptions Net difference between projected and actual earnings Employer contribution subsequent to measurement date Total Deferred Outflows of Resources* $ $ Deferred Inflows of Resources* $ $ Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended September 30: 2025 2026 2027 2028 2029 Total Thereafter Amount* $ $ *Per GASB No. 75 paragraph 43(a) since the District used the alternative measurement method the effects of assumptions are recognized immediately. As such, since the Plan holds no assets, their deferred inflows/outflows are zero . Change in assumptions: Discount rate decreased from 4.87% to 4 .06%. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE N -COMMITMENTS AND CONTINGENCIES Page 53 of70 In March 2024, the District entered into an agreement to lease a pumper to replace an aging pumper. Lease escrow payments are scheduled to begin March 1, 2026. Delivery of the pumper is expected 40 months after date of purchase and is contingent upon final inspections at time of delivery. Escrow is refundable if not accepted. NOTE 0-457(b) DEFERRED COMPENSATION PLANS The District offers the employees the opportunity to participate in two (2) 457(b) deferred compensation plans. These Plans have a third party trustee/custodian that holds I 00% of Plan assets. The Plans are 100% third party administered. The Plans accept only employee contributions. NOTE P -401(a) RETIREMENT PLAN The Board of Fire Commissioners established the 401(a) Plan (the "Plan") for the Fire Chief. This retirement Plan is in addition to the benefits the Chief is entitled to from FRS /HIS. The Plan was effective on June 18, 2020. At September 30, 2024, the Plan has one (I) active participant and allows only the Chief to participate. The Plan permits employer contributions only. Amounts contributed by the employer are equal to $5,000 per fiscal year as required by the Chiefs employment contract. Employee contributions are prohibited. Employer contributions are I 00% vested upon deposit into the Plan. Total District contributions to the Plan for the year ended September 30, 2024, were $5,000 . NOTE Q -RETIREMENT HEALTH SAVINGS PLAN Effective November 2023, the District established an IRS Section 115 retirement health savings plan. Plan participation is available to both the bargaining unit and non bargaining employees . The Plan provides tax free benefits to pay health related insurance premiums, dental and vision coverage, prescriptions, long-term care insurance and out of pocket medical expense upon separation or retirement from the District. The District elects annually whether to fund the Plan which is based upon certain job categories and years of service. The bargaining unit employees contribute I% to the Plan. Non bargaining unit employees elect annually a contribution amount. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 NOTE Q · RETIREMENT HEAL TH SA VIN GS PLAN, CONTINUED Page 54 of70 Employees are 100% immediately vested in their account. Participants can apply for reimbursement of various insurance costs upon separation or retirement. During the year ended September 30, 2024, the District contributed $54,167 to the Plan. NOTER-SUBSCRIPTION LIABILITY The District entered into multiple subscription-based information technology arrangements for various software. The software have 1 year terms and have fixed payments. The District aggregated the subscriptions for reporting purposes. The District used a discount rate of 4.45% (incremental borrowing rate) to record the present value of the future minimum payments as of the date of implementation. The District is capitalizing the arrangements over a 3-year term consistent with its fixed asset capitalization policy. The future minimum subscription payments as of September 30, 2024 is as follows: Years Ending September 30 2025 Impact of present value discount Present value Amount $ 67 ,585 $ 67 ,585 (2 ,936) 64,649 The amortization of the subscription liability for the year ended September 30, 2024 , was $5 ,379. At September 30, 2024, the right of use-subscription asset and right of use- subscription liability balances are as follows: Right of use subscription asset, current Right of use subscription asset, noncurrent Right of use subscription liability , current Right of use subscription liability, noncurrent Amount $ 64,649 $ 64 ,649 $ 64,649 $ 64 ,649 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A IMMOKALEE FIRE CONTROL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND - SUMMARY STATEMENT Year Ended September 30, 2024 REVENUES Ad Valorem taxes Intergovernmental re ven ues : Federal public safety grant -CDBG State grants Other grants State firefighter supplemental inspection fees Public safety services Miscellaneous: Interest Other Reserves brought fmward TOTAL REVENUES EXPENDITURES Current Public safety Personnel services Operating expenditures Capital outlay Debt service Principal reduction interest and fiscal charges Assigned -90 day reserve Assigned -Prepaid expenses Assigned -Fleet Reserves Assigned-Emergency Assigned -COVID Grant Replacement Vehicle Assigned-Budgeted deficit Assigned -Replacement Station 30 TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from issuance of financing lease Proceeds from issuance of construction loans $ Original Budget 7,254 ,923 $ 2,500 110 ,000 241,743 2,700,795 10 ,309,961 5,486 ,349 1,240,693 75 ,000 799,000 1,400,000 775,000 75,000 458,919 25 ,000 10,334,96 1 (25 ,000) Proceeds from disposition of capita l assets 25,000 TOT AL OTHER FINANCING SOURCES (USES) _____ 2_5-'--,0_0_0 General Fund Final Budget 7,475,221 $ 101,665 2,500 192 ,865 121 ,045 2,738,046 10,631,342 6,171 ,119 1,358 ,823 495,325 2,992 ,154 179,303 1,400,000 280,796 26 ,500 180,746 25 ,000 361 ,103 102 ,798 13,573,667 (2 ,942 ,325) 202,325 2,700,000 40,000 2,942 ,325 Actual 7,475 ,221 $ 101 ,665 3,490 192,865 130,103 7,903,344 6,168 ,367 1,371 ,804 495,184 2,962,164 192 ,871 11 ,190,390 (3 ,287 ,046) 202,325 2,700,000 40,000 2,942 ,325 Page 55 of70 Variance Favorable (U nfa vorable) 990 9,058 (2 ,738 ,046) (2,727 ,998) 2,752 (12,981) 141 29 ,990 (13 ,568) 1,400 ,000 280,796 26 ,500 180,746 25 ,000 361 ,103 102,798 2,383,277 (344 ,721) NETCHANGEINFUNDBALANCE ""'$ ______ -.a..$ ____ _ (344 ,721) .a..$ ___ """"""(3_44_.,7-"2_,1) FUND BALANCE -Beginning 2,738 ,046 FUND BALANCE -Ending $ 2,393 ,325 The accompanying notes are an integral part of this statement. IMMOKALEE FIRE CONTROL DISTRICT Page 56 of70 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND DETAILED STATEMENT Year Ended September 30, 2024 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable} REVENUES Ad Valorem taxes $ 7,2 54 ,923 $ 7,475,221 $ 7,475,221 $ In tergovernmental revenues : Federal grants 101 ,665 101 ,665 State grants Other grants State firefighter supp lemental 2,500 2,500 3,490 990 Inspection fees Public safety services Miscellaneous: Interest income 110,000 192 ,8 65 192,865 PIL T -Seminole 200,000 PIL T farm workers village 6,000 Donations 9,743 9,643 9,646 3 User fees -rent 15 ,000 53,064 54,632 1,568 Other income 11,000 58,338 65 ,825 7,487 Subtotal 7,609 ,166 7,893,296 7,903,344 10,048 Reserves brought forward 2,700,795 2,738,046 (2,738,046) TOT AL REVENUES 10 ,309,961 10 ,631,342 7,903 ,344 (2,727,998) EXPENDITURES PERSONNEL SERVJCES Salaries Firefighters & administrative 2,815,311 2,918 ,506 2,918 ,506 Overtime pay 368,539 626,674 631,336 (4,662) Holiday pay 75 ,958 75,958 79 ,8 62 (3,904) Vacation & sick sell back pay 20 ,000 89,500 89,078 422 Payroll taxes Social Security 251 ,431 278,839 278 ,83 9 Benefits Retirement 918,610 1,107,118 1,107,119 (1) Group insurance 882,500 920,524 917,371 3,153 Health insurance -Commissioners 4,000 4,000 7,773 (3 ,773) Workers' compensation 150 ,000 150,000 138,483 11 ,517 Unemployment SUBTOTAL-PERSONNEL SERVICES 5,486,349 6,171,119 6,168 ,367 2,752 OPERATING Contracted Services Physicals 20,000 8,510 8,510 Legal & professional fees 58 ,000 64 ,000 63,144 856 Property appraiser fees 45 ,000 45 ,000 44,750 250 Tax collection fees 145 ,289 145,289 150,98 1 (5,692) Contracted services 35 ,000 35 ,000 41 ,022 {6,022) Subtotal -Contracted services 303,289 297,799 308,407 {10,608) The accompanying notes are an integral part of this statement. IMMOKALEE FIRE CONTROL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND DETAILED STATEMENT -CONTINUED Year Ended September 30, 2024 General Fund Original Final Budget Budget Actual OPERATING, CONTINUED Operating Educ ation and training 30 ,000 41,01 I 41 ,01 I Travel 30,000 30 ,000 39 ,127 Communications -telephone 60,000 60 ,000 33 ,463 Postage/shipping 1,000 1,000 894 Uti li ties 130,000 130,000 137,754 Liabi lity insurance 248 000 234 650 231 650 Subtotal -Operating 499,000 496,661 483 ,899 Maintenance Vehi cle 75 ,000 93 ,500 93 ,260 Equipment -firefighter and res c ue 25 ,000 25 ,000 33 ,285 Generators 5,759 Equipment lease 5,000 5,000 1,402 HVAC 16,122 Building 65,000 132,000 I 10,263 Bunker gear 4,500 4,500 2,584 Cascade system 2,496 Subtotal -Maintenance 174,500 260,000 265,171 Legal advertising 4,000 4,000 2,056 Supplies Office 3,500 3,500 6,105 Firefighter rescue/E MS 15,000 30,000 27 ,253 Station -janitorial 11 ,775 PPE 16 ,500 Station -non janitorial 20 ,000 15,000 8,060 Education & training 3,000 3,000 2,170 Fuel and oil 70,000 70,000 77 ,132 Uniforms & PPE 25,000 25 ,000 28 ,845 Hurricane expense Computer software and training 70,000 70 ,000 69 ,055 Miscellaneous 5,000 5,000 3,267 Communication 15,000 5,000 5,034 Public education 8,863 8,863 Compu ter equipment 17 ,500 17 ,500 12 ,896 Minor equipment 9,904 25 ,000 46,031 The accompanying notes are an integral part of this statement. Page 57 of70 Variance Favorable (Unfavorable} (9,127) 26 ,537 106 (7 ,754) 3 000 12 ,762 240 (8 ,285) (5 ,759) 3,598 (16,122) 21 ,737 1,9 16 {2,496) {5 ,171) 1,944 (2 ,605) 2,747 (11 ,775) 16,500 6,940 830 (7,132) (3 ,845) 945 1,733 (34) 4,604 (21 ,031) IMMOKALEE FIRE CONTROL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND DETAILED STATEMENT -CONTINUED Year Ended September 30, 2024 Books and dues Subtotal -Supplies SUBTOTAL -OPERA TING EXPENDITURES Capital Outlay Land Firefighter equipment-grant match Training equipment Firefighter rescue equipment Bunker gear Building an d CIP Covid Grant vehicle & equipment Vehicles Communications equipment Computer equipment SUBTOTAL -CAPITAL OUTLAY Debt service Principal retirement Interest charges an d fiscal SUBTOTAL-DEBT SERVJCE Assigned -First Q of Operation Assigned -Building Assigned-Vehicle Assigned-Emergency Assigned-COVID Grant Replacement Vehicle Assigned-Budgeted deficit Assigned -Debt TOT AL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from issuance of financing lease Proceeds from issuance of construction loans Original Budget 6,000 259,904 1,240,693 5,000 30 ,000 10,000 10,000 20,000 75,000 799,000 799,000 1,400 ,000 775,000 75,000 458,919 25 ,000 10,334 ,961 (25,000) Proceeds from disposition of capital assets 25,000 TOTAL OTHER FINANCING SOURCES (USES) ____ 25~,o_o_o NET CHANGE IN FUND BALANCE $ FUND BALANCE -BEGINNING FUND BALANCE -ENDING ------$ General Fund Final Budget 6,000 300,363 I ,358 ,823 290,000 202,325 3,000 495,325 2,992,154 179,303 3,171,457 1,400,000 280,796 26,500 180,746 25,000 361 ,103 102,798 13,573 ,667 (2 ,942 ,325) 202,325 2,700,000 40,000 2,942,325 $ The accompanying notes are an integral part of this statement. Actual 5,785 312,271 1,371,804 289,479 202,325 3,380 495,184 2,962 ,164 192 ,87 1 3,155,035 11 ,190,390 (3 ,287,046) 202,325 2,700,000 40 ,000 2,942,325 (344 ,721) 2,738,046 2,393,325 $ Page 58 of70 Variance Favorable (Unfavorable) 215 (I 1,908) (12,981) 521 (380) 141 29 ,990 (13,568) 16,422 1,400,000 280,796 26,500 I 80 ,746 25 ,000 361,103 102,798 2,383,277 (344 ,721) (344,721) IMMOKALEE FIRE CONTROL DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - IMPACT FEE FUND SUMMARY STATEMENT Year Ended September 30, 2024 Imeact Fee Fund Original Final Budget Budget Actual REVENUES Impact fees $ 2,000 ,000 $ 1,958,408 $ 1,993 ,284 Miscellaneous: Interest 85,000 141,617 141 ,617 Cash brought forward 3,302,680 3,306,228 TOT AL REVENUES 5,387 ,680 5,406,253 2,134,901 EXPENDITURES Current Public safety Operating expenditures 25 ,000 20,000 19,544 Capital outlay 300,000 1,504,738 1,490 ,376 Debt service Principal reduction 1,057 ,38 2 450,382 441,080 Interest and fiscal charges 198,456 181,000 183 ,901 Cash carried forward 3,806,842 3,250,133 TOTAL EXPENDITURES 5,387,680 5,406,253 2,134,901 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from issuance of financing lease Proceeds from construction loan TOT AL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE $ -$ - FUND BALANCE -Beginning FUND BALANCE -Ending $ The accompanying notes are an integral part of this statement. Page 59 of70 Variance Favorable {Unfavorable} $ 34,876 (3,306,228) (3,271 ,352) 456 14,362 9,302 (2,901) 3,250,133 3,271,352 $ IMMOKALEE FIRE CONTROL DISTRICT SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN (1) 2024 2023 2022 202 1 Di stri ct's pro porti on of the net pension li abili ty 0 .0 14 187252% 0 .0 11 584793% 0.0 11 4 18826% 0 .01 0400522 % Di strict's pro porti o nate share of th e net pension liabil ity $ 5,488,296 $ 4,6 16,173 $ Di strict's covered-empl oyee payroll $ 3,7 18,78 1 $ 2,699,060 $ Di strict's proportion ate share of th e net pension lia bil ity as a percentage of its covered-empl oyee payroll 147 .58% 17 1.03 % Pl an fi duc iary ne t posi ti on as a percentage of the total pens ion li abili ty 83 .78 % 82 .38% Notes: (I) The amoun ts presented for each fi sca l year were detenn ined as of Se pte mber 30 . SCHEDULE OF DISTRICT CONTRIBUTIONS - FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN (1) Contractuall y required contri bution Contri butions in relation to the contractua ll y requi re d contributi on $ 202 4 1,035 ,992 $ 1,035,992 2023 706,455 $ 706 ,45 5 4,248,721 $ 7 85,64 1 2,407,158 $ 2,290,487 176 .50% 34 .30% 82.89% 96.40% 2022 202 1 60 1,974 $ 507,5 48 60 1,9 74 507 ,5 48 Contribu tion de fi ciency (excess) _$ _____ -_$ _____ -_$ _____ -_$ ____ _ Di strict's covered-empl oyee payro ll Contrib utio ns as a perce ntage of covered -empl oyee payro ll $ 3,7 18,78 1 $ 27 .86 % Notes: (I ) The amoun ts present ed for each fi scal year were determin ed as of Se ptem ber 30 . 2,699,060 $ 2,407 ,15 8 $ 2,290,487 26 .17% 25.0 1% 22 .16% GASB 68 require s information for 10 years . However, until a full 10-year trend is compiled , governments should present information for only those years for which information is available. Page 60 of70 2020 2019 2018 2017 2016 2015 0.011823008% 0.017687900% 0.012139622 % 0.011523968% 0.009463726% 0.006183105 % $ 5,124 ,266 $ 4,053 ,007 $ 3,656,517 $ 3,408 ,712 $ 2,389,598 $ 798,63 1 $ 2,129,835 $ 2,092,7 19 $ 2,199 ,8 04 $ 2,117 ,6 20 $ 1,735,883 $ 1,29 8,57 8 240 .59 % 193.67% 166.22 % 160 .97% 137 .66% 61.50% 78.85% 82.6 1% 84.26% 83 .89% 84.88% 92 .00 % 2020 2019 2018 20 17 2016 2015 $ 480,781 $ 464,854 $ 454,867 $ 38 1,8 58 $ 365,318 $ 236,175 480,78 I 464,854 454,867 381,858 365 ,318 236,175 $ -$ -$ -$ -$ -$ $ 2,129,835 $ 2,092 ,7 19 $ 2,199 ,8 04 $ 2,117 ,6 20 $ 1,73 5,883 $ 1,298,578 22.57% 22 .2 1% 20 .68 % 18.03% 21.05 % 18.19% IMMOKALEE FIRE CONTROL DISTRICT SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1) 2024 2023 2022 District's proportion of the net pension liability 0.007619993% 0.006925 378% 0.006653126% District's proportionate share of the net pension liability $ 1,143 ,073 $ 1,099,842 $ 704,672 District's covered-employee payroll $ 3,781,781 $ 2,699,060 $ 2,407,158 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 30.23% 40.75 % 29.27 % Plan fiduciary net position as a percentage of the total pension liability 4.80% 4 .12% 4 .8 1% Notes : (I) The amounts presented for each fiscal year were determined as of September 30. SCHEDULE OF DISTRICT CONTRIBUTIONS - HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1) 2024 2023 2022 $ $ Contractually required contribution Contributions in relation to the contractually required contribution $ 66,127 $ 45 ,093 $ 38,424 $ 66,127 45,093 38,424 Contribution deficiency (excess) $ -$ -$ -$ 2021 0.006097996% 748 ,01 I 2,290,487 32 .66% 3.56% 2021 32,397 32,397 -------------------- District's covered-employee payroll Contributions as a percentage of covered-employee payroll $ 3,781,781 $ 1.75% Notes: (I) The amounts presented for each fiscal year were determined as of September 30. 2,699,060 $ 2,407,158 $ 2,290,487 1.67% 1.60% 1.41 % GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled, governments should present information for only those years for which information is available. Page 61 of 70 2020 2019 2018 2017 2016 2015 0 .005936679% 0.006157845 % 0.006303007% 0.005951814% 0.005168356% 0.004192421 % $ 724,859 $ 689,001 $ 677,117 $ 636,395 $ 602,350 $ 427,561 $ 2,129,835 $ 2,092,719 $ 2,199,804 $ 2,11 7,620 $ 1,735,883 $ 1,298,578 34 .03% 32 .92 % 30.78% 30.05% 34 .70% 32.93% 3.00% 2.63 % 2.15% 1.64% 0 .97% 0.50% 2020 2019 2018 2017 201 6 2015 $ 36,18 8 $ 34,989 $ 34,237 $ 28,742 $ 29 ,194 $ 19 ,237 36 ,188 34,989 34,237 28,742 29,194 19,23 7 $ -$ $ -$ -$ -$ $ 2,129 ,83 5 $ 2,092 ,7 19 $ 2,199 ,804 $ 2,117 ,620 $ 1,735,883 $ 1,298,578 1.70% 1.67% 1.56% 1.36% 1.68% 1.48% IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION September 30, 2024 Changes of Assumptions Page 62 of70 Actuarial assumptions for both cost-sharing defined benefit plans are reviewed annually by the Florida Retirement System Actuarial Assumptions Conference. The FRS Pension Plan has a valuation performed annually. The HIS Program has a valuation performed biennially that is updated for GASB reporting in the year a valuation is not performed. The most recent experience study for the FRS Pension Plan is for the period July 1, 2018, through June 30, 2023. Because the HIS Program is funded on a pay-as-you-go basis , no experience study has been completed for that program. The actuarial assumptions that determined the total pension liability for the HIS Program were based on certain results of the most recent experience study for the FRS Pension Plan. The total pension liability for each cost-sharing defined benefit plan was determined using the individual entry age actuarial cost method. Inflation increases for both plans is assumed at 2.40%. Payroll growth, including inflation, for both plans is assumed at 3.50%. Both the discount rate and the long-term expected rate ofreturn used for FRS Pension Plan investments remained unchanged at 6.70%. The Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return . Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond rate was increased from 3.65% to 3.93% and was used to determine the total pension liability for the program (Bond Buyer General Obligation 20-Bond Municipal Bond Index). Mortality assumptions for both plans were based on the Generational PUB-2010 with Projection Scale MP-2021. Florida Retirement System Pension Plan There were changes in actuarial assumptions. As of June 30, 2024, the inflation rate assumption remained at 2.4 percent, the real payroll growth assumption increased to 1.1 percent, and the overall payroll growth rate assumption increased to 3.50 percent. The long-term expected rate ofreturn was unchanged at 6 .70%. Health Insurance Subsidy Pension Plan The municipal rate used to determine total pension liability increased from 3.65 percent to 3 .93 percent. IMMOKALEE FIRE CONTROL DISTRICT NOTES TO THE REQUIRED SUPPLEMENT ARY INFORMATION September 30, 2024 Pension Expense and Deferred Outflows/Inflows of Resources Page 63 of70 In accordance with GASB 68 , paragraphs 54 and 71 , changes in the net pension liability are recognized in pension expense in the current measurement period, except as indicated below. For each of the following , a portion is recognized in pension expense in the current reporting period, and the balance is amortized as deferred outflows or deferred inflows of resources using a systematic and rational method over a closed period , as defined below : • Differences between expected and actual experience with regard to economic and demographic factors -amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan ( active and inactive employees) • Changes of assumptions or other inputs -amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan ( active and inactive employees) • Changes in proportion and differences between contributions and proportionate share of contributions -amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan (active and inactive employees) • Differences between expected and actual earnings on pension plan investments -amortized over five years Employer contributions to the pension plans from employers are not included in collective pension expense . However, employee contributions are used to reduce pension expense . The average expected remaining service life of all employees provided with pensions through the pension plans at September 30 , 2024, remained at 5.3 years for FRS and remained constant at 6.3 years for HIS . IMMOKALEE FIRE CONTROL DISTRICT SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS GASB 75 Changes in Employer's Net OPEB Liability and Related Ratios as of September 30: Net OPEB Liability 2024 Service Cost $ 14,564 Interest Cost on Total OPEB Liability 13,633 Changes in Benefit Terms Differences Between Expected and Actual Experience 21,138 Changes in Assumptions 43,308 Benefit Payments (2,526) Net Change in net OPEB Liability 90,117 Net OPEB Liability -Beginning of Year 266 ,641 Net OPEB Liability -End of Year $ 356,758 NOTE: Information for FY 2017 and earlier is not available . Plan Fiduciary Net Position as of September 30: 2024 Contributions -Employer $ 2,526 Net Investment Income Benefit Payments (2,526) Administrative Expense Net Change in Fiduciary Net Position Fiduciary Net Position -Beginning of Year Fiduciary Net Position -End of Year $ - Net OPEB Liability $ 356,758 Fiduciary Net Position as a % of Net OPEB Liability 0.00% Covered-Employee Payroll * Net OPEB Liability as a % of Payroll * * Because this OPEB plan does not depend on salary , no information is provided. NOTE : Information for FY 2017 and earlier is not available. Notes to the Schedule: Benefit Changes Changes of Assumptions 9/30/18 9/30/19 9/30/20 9/30/21 9/30/22 9/30 /23 9/30/24 None The discount rate was changed as follows: 4 .23% 2.21% 2.41% 2.43% 4 .77% 4.87% 4 .06% Updated healthcare costs and premiums Population covered by Plan : 44 active O retired Plan has no specific trust established . $0 assigned for OPEB . 2023 $ 15 ,066 $ 14,580 (18 ,102) (34 ,823) {1,343) (24 ,622) 291,263 $ 266,641 $ 2023 $ 1,343 $ (1,343) $ -$ $ 266 ,641 $ 0.00% 2022 22 ,854 9,904 (125,584) {1,249) (94 ,075) 385,338 291,263 2022 1,249 (1,249) 291 ,263 0 .00% Page 64 of70 2021 2020 2019 2018 $ 30 ,006 $ 29 ,274 $ 29 ,274 $ 31 ,359 13 ,675 12 ,282 16 ,639 13 ,731 42 ,653 (8 ,694) 85 ,904 116 ,389 (234 ,430) (14 ,191) (75 ,615) (100 ,573) (7 ,930) (7 ,559) (33 ,008) {25 ,607) (156,026) 11 ,112 23 ,194 35 ,299 541 ,364 530 ,252 507,058 471 ,759 $ 385 ,338 $ 541 ,364 $ 530 ,252 $ 507 ,058 2021 2020 2019 2018 $ 7,930 $ 7,559 $ 33 ,008 $ 25,607 (7 ,930) (7 ,559) (33 ,008) (25 ,607) $ -$ -$ -$ ==== ==== ==== ==== $ 385 ,338 $ 541 ,364 $ 530 ,252 $ 507 ,058 0.00% 0.00 % 0.00% 0.00% ADDITIONAL REPORTS HSC/Tuscan & Company, PA CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Immokalee Fire Control District 5368 Useppa Dr. Ave Maria, Florida 34142 Page 65 of70 We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America, the basic financial statements of the governmental activities and each major fund oflmmokalee Fire Control District (the "District") as of and for the year ended September 30, 2024, and the related notes to the financial statements which collectively comprise the District's basic financial statements as listed in the table of contents and have issued our report thereon dated February 3, 2025. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. INTEGRITY ....... SERVICE ............. EXPERIENCE 1470 Royal Palm Square Blvd.• Fort Myers , FL 33919-1049 Phone : (239) 939-2233 • Fax : (239) 939-0554 • www .hsctuscan .com Page 66 of70 A material weakness is a deficiency, or a combination of deficiencies , in internal control, such that there is a reasonable possibility that a material misstatement of the Immokalee Fire Control District's basic financial statements will not be pre vented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness , yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies . Gi ven these limitations during our audit , we did not identify any deficiencies in internal control that we consider to be material weaknesses as defined previously. However, material weaknesses may exist that were not identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Immokalee Fire Control District's basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws , regulations , contracts and grant agreements , noncompliance with which could ha ve a direct and material effect on the basic financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and , accordingly , we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards . Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing , and not to provide an opinion on the effectiveness of the District's internal control or on compliance . This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance . Accordingly , this communication is not suitable for any other purpose. HSC /TUSCAN & COMPANY, P.A. Fort Myers , Florida February 3, 2025 HSC/Tuscan & Company, PA CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS INDEPENDENT ACCOUNT ANT'S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES Board of Commissioners lmmokalee Fire Control District 5368 Useppa Dr. Ave Maria, Florida 34142 Page 67 of 70 We have examined Immokalee Fire Control District's compliance with Section 218.415 , Florida Statutes, regarding the investment of public funds during the year ended September 30, 2024. Management is responsible for Immokalee Fire Control District's compliance with those requirements. Our responsibility is to express an opinion on Immokalee Fire Control District's compliance based on our examination . Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly , included examining, on a test basis , evidence about Immokalee Fire Control District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion . Our examination does not provide a legal determination on Immokalee Fire Control District's compliance with specified requirements . In our opinion, Immokalee Fire Control District complied, in all material respects, with the aforementioned requirements for the year ended September 30 , 2024. This report is intended solely for the information and use of Immokalee Fire Control District and the Auditor General , State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. $t/~f~/~1 1\4. HSC/TUSCAN & COMPANY , P .A. Fort Myers , Florida February 3 , 2025 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 INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT Board of Commissioners Immokalee Fire Control District 5368 Useppa Dr. Ave Maria , Florida 34142 Page 68 of70 We have audited the accompanying basic financial statements of Immokalee Fire Control District (the "District") as of and for the year ended September 30 , 2024 , and have issued our report thereon dated February 3 , 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 and Chapter 10 .550 , Rules of the Auditor General. Disclosures in those reports , which are dated February 3, 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 includes the following information, which is not included in the aforementioned auditor's reports: Section 10 .554(1)(i)l., Rules of the Auditor General , requires that we determine whether or not corrective actions ha ve been taken to address findings and recommendations made in the preceding annual financial audit report . There were no financially significant prior year comments. Section 10 .554(l)(i)2., Rules of the Auditor General , requires that we address in the management letter any recommendations to improve financial management. Such recommendations were noted to improve financial management. INTEGRITY ....... SERVICE ............. EXPERIE NCE 1470 Royal Palm Squ are Blvd.• Fort Myers, FL 339 19-10 49 Phone: (23 9) 939-2233 • Fax: (239) 939-05 54 • www .hsctu sc an .com Page 69 of70 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(l)(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 re v iew of financial information provided by same. In connection with our audit, we determined that the District did not meet any of the criteria of a deteriorating financial condition described in Auditor General Rule Section 10.554(1)(i)(5).a. Pursuant to Section 10 .554(l)(i)5b.2, Rules of the Auditor General , if a deteriorating financial condition(s) is noted then a statement is so required along with the conditions causing the auditor to make such a conclusion. No such conditions were noted. Pursuant to Section 10.554(1)(i)5.c ., Rules of the Auditor General , requires a statement indicating a failure , if any , of a component unit Special District to provide financial information necessary to a proper reporting of the component unit within the audited financial statements of this District (F.S . Section 218 .39(3)(b)). There are no known component special districts required to report within these financial statements . Pursuant to Section 10.554(l)(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 70 of 70 Section 10.554(1)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(1 0)(a), Rules of the Auditor General , requires that the scope of our audit to determine the District'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 February 3, 2025 , included herein . PRIOR YEAR COMMENTS: There were no financially significant prior year comments. CURRENT YEAR COMMENTS: There were no financially significant current year comments noted. Pursuant to Chapter 119, Florida Statutes , this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Board of Commissioners , management , the Auditor General of the State of Florida and other federal and state agencies. This report is not intended to be and should not be used by anyone other than these specified parties . j A fltt)~i ~1°1) I 1 ' HSC/TUSCAN & COMPANY , P.A. Fort Myers , Florida February 3, 2025 EXHIBIT 1 March 5, 2025 lmmokalee Fire Control District 5368 Useppa Drive, Ave Maria, FL. 34142 Michael J. Choate, Fire Chief Auditor General's Office Local Government Audits/342 Claude Pepper Building, Room 401 111 West Madison Street Tallahassee, FL 32399-1450 In connection with the audit for the fiscal year ended 9-30-24, we are pleased to report there are no current or prior year comments. The District continues to refine and enhance financial reporting and compliance functions, and internal controls, policies and procedures. The Board of Fire Commissioners and management staff are committed to avoiding future possible comments and we maintain our assurance that future audits will reflect the actions we have taken. Sincerely, IMMOKALEE FIRE CONTROL DISTRICT Headquarters (239) 657-2111 Fire Prevention (239) 597-9227 Fax (239) 657-9489 EXHIBIT 2 EXHIBIT 2 UNAUDITED COMPLIANCE WITH REPORTING REQUIRED BY: Auditor General Rule 10.554(l)(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). 51 (including 5 commissioners) b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year being reported (see information required in Section 218.32(1)(e)2 .b., Florida Statutes). 6 c . All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency (see information required in Section 218.32(1)(e)2.c., Florida Statutes). (Total wage compensation for the fiscal year being audited) $3 ,718 ,782 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(l)(e)2.d., Florida Statutes). (Amounts paid that would be reported on a Form 1099 for FYE) $116 ,609 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). None f. A budget variance report based on the budget adopted under section 189.016( 4 ), Florida Statutes, before the beginning of the fiscal year reported if the district amends a final adopted budget under Section 189.016( 6), Florida Statutes (see information required in Section 218.32(1)(e)3 ., Florida Statutes). If there were amendments then include budget variance ( original budget vs. actual at FYE). See attached pages 3 -4 . Page 1 Auditor General Rule 10.554(1)(i)7 For an independent special district that imposes ad valorem taxes, the following specific information provided by management (with explanatory verbiage that the auditor provides no assurance on the information): (see information required in Section 218.32(1 )( e )4., Florida Statutes). a. The millage rate or rates imposed by the district. 3.75 mills b. The current year gross amount of ad valorem taxes collected by or on behalf of the district. $7,475,221 c. The total amount of outstanding bonds issued by the district and terms of such bonds. $0 Auditor General Rule 10.554(1)(i)8 For an independent special district that imposes non-ad valorem special assessments, the following specific information provided by management (with explanatory verbiage that the auditor provides no assurance on the information): (see information required in Section 218.32(1)(e)5., Florida Statutes). a. The rate or rated of such assessment imposed by the district. NI A b. The total amount of special assessments collected by or on behalf of the district. N I A c. The total amount of outstanding bonds issued by the district and the terms of such bonds. N I A Page 2 IMMOKALEE FIRE CONTROL DISTRICT ORIGINAL BUDGET vs. ACTUAL COMPARISON REPORT -UNAUDITED - GENERAL FUND Year Ended September 30, 2024 REVENUES Original Budget Ad Valorem taxes Intergovernmental revenues: $ 7,254 ,923 $ Federal public safety grant -CDBG State grants Other grants State firefighter supplemental Inspection fees Publi c safety services Miscellaneous : Interest Other Reserves brought forward TOT AL REVENUES EXPENDITURES Current Public safety Personnel services Operating expend itures Capital outlay Debt service Principal reduction Interest and fiscal charges Assigned -90 day reserve Assigned -Prepapid expenses Assigned-Vehicle Assigned-Emergency Ass igned-COVID Grant Replacement Vehicle Assigned -Budgeted deficit Assigned -Replacement Station 30 TOT AL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from issuance of financi ng lease Proceeds from issuance of construction loan 2,500 I 10,000 241,743 2,700,795 10,309,961 5,486,349 1,240,693 75 ,000 799,000 1,400,000 775,000 75,000 458,919 25 ,000 10,334,961 (25,000) Proceeds from disposition of capital assets 25 ,000 TOT AL OTHER FINANCING SOURCES (USES) _____ 2_5~,o_o_o NET CHANGE IN FUND BALANCE -'-$ _____ _ FUND BALANCE -Beginning FUND BALANCE -Ending $ General Fund Actua l 7,475,221 $ 101 ,665 3,490 192,865 130 ,103 7,903 ,344 6,168,367 1,371 ,804 495,184 2,962 ,164 192 ,87 1 I 1,190 ,390 (3,287,046) 202,325 2,700,000 40,000 2,942 ,3 25 Variance Favorable (Unfavorable) 220,298 101 ,665 990 82 ,865 (111,640) (2,7 00 ,795) (2 ,406 ,617) (682 ,018) (131 ,111) (420,184) (2,163,164) (192,871) 1,400,000 775 ,000 75 ,000 458 ,9 19 25,000 (855,429) (3 ,262 ,046) 202,325 2,700,000 15 ,000 2,917,325 (344,72 1) .;..$ ___ ....._(3_44_., 7_2_,1) 2,738,046 2,393,325 The accompanying notes are an integral part of this statement. Page 3 IMMOKALEE FIRE CONTROL DISTRICT ORIGINAL BUDGET vs. ACTUAL COMPARISON REPORT - UNAUDITED -IMPACT FEE FUND Year Ended September 30 , 2024 REVENUES Impact fees Miscellaneous : Interest Cash brought forward TOT AL REVENUES EXPENDITURES Current Public safety Operating expenditures Capital outlay Debt service Principal reduction Interest and fiscal charges Cash carried forward TOT AL EXPEND ITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCE S (USES) Proceeds from issuance of financing lease Proceeds from issuance of construction loan Original Budget $ 2,000 ,000 85,000 3,302,680 5,387,680 25,000 300,000 1,057,382 198,456 3,806,842 5,387,680 TOTAL OTHER FINANCING SOURCES (USES) _____ _ NET CHANGE IN FUND BALANCE $ ------ FUND BALANCE -Beginning FUND BALANCE -Ending Impact Fee Fund Variance Favorabl e Actual (Unfavorable) $ 1,993 ,284 $ (6,716) 141,617 56,617 (3 ,302,680) 2,134,901 {3,252,779) 19,544 5,456 1,490 ,3 76 (1,190,376) 441,080 616,302 183,90 1 14,555 3,806,842 2,134,901 3,252,779 -$ ----- $ The accompanying notes are an integral part of this statement. 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