CAFR Year End 09-30-2009 COLLIER COUNTY, FLORIDA
Comprehensive Annual Financial Report
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Year Ended September 30, 2009
The Comprehensive Annual Financial Report (CAFR) is prepared each year by the Clerk of the Circuit Court.
On the cover:
Collier County is located in southwest Florida.
The logo of Collier County as well as the logo of each constitutional office is represented on the
cover including:
Clerk of Courts - Dwight E. Brock
Property Appraiser - Abe Skinner
Sheriff's Office - Kevin J. Rambosk
Supervisor of Elections - Jennifer J. Edwards
Tax Collector - Larry H. Ray
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED
SEPTEMBER 30, 2009
COLLIER COUNTY, FLORIDA
BOARD OF COUNTY COMMISSIONERS
DONNA L. FIALA, CHAIRMAN - DISTRICT 1
FRED W. COYLE, VICE-CHAIRMAN - DISTRICT 4
FRANK HALAS - DISTRICT 2
THOMAS K. HENNING - DISTRICT 3
JAMES N. COLETTA, Jr. - DISTRICT S
COUNTY MANAGER
JAMES V. MUDD
COUNTY ATTORNEY
JEFFREY A. KLATZKOW
CLERK OF THE CIRCUIT COURT AND CHIEF FINANCIAL OFFICER
DWIGHT E. BROCK
DIRECTOR OF FINANCE AND ACCOUNTING
CRYSTAL K. KINZEl
Prepared by the Finance and Accounting Department
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COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Transmittal Letter.................................................................................................................................................................. ......... i
Certificate of Achievement.... ............................. .............. ........................ .,_..,. '..',. ...,.................. '..... '...'.................................... vii
FINANCIAL SECTION
Report of Independent Certified Public Accountants................................................................................... .............................. 1
Management's Discussion and Analysis (Unaudited).................................................................................................................. 3
Basic Financial Statements:
Statement of Net Assets...................................................................................................................................................... ... 14
Statement of Activities..................................................................................................................................................... ....... .16
Ba la nce Sheet - Govern mental Fu nds.................................................................................................................................... 18
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ............................................ 19
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds............................................20
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental
Fu nds to the Statement of Activities.............................................................................................................................. 21
General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
(N on-GAAP)............................................................................................................................................... ..................... 22
Community Redevelopment - Statement of Revenues, Expenditures and Changes in Fund Balances-
Budget and Actua I (Non-GAAP)............................................................................................................................................. 2S
Statement of Net Assets - Proprietary Funds ......................................................................................................................... 26
Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds ....................................................28
Statement of Cash Flows - Proprietary Funds ........................................................................................................................ 29
Statement of Fiduciary Assets and Liabilities - Agency Funds................................................................................................31
Notes to the Fina ncia I Statements.......................................................................................................................................... 33
Required Supplementary Information.................................................................. ..................................................................... 74
Combining and Individual Fund Financial Statements:
Nonmaior Governmental Funds
Com bini ng Balance Sheet ............................................................................................................................................................. 80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances.....................................................................88
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) ............... 96
Nonmaior Enterprise Funds
Com bin i ng Statement of Net Assets.......................................................................................................................................... 120
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ..................................................................... 121
Combining Statement of Cash Flows ..........................................................................................................................................122
Internal Service Funds
Combining Statement of Net Assets ............................................................................
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets .......
Combining Statement of Cash Flows .....................................................................
............................................................. 126
.............................................................U7
.............................................................128
Fiduciarv Funds
Combining Statement of Fiduciary Assets and Liabilities ....................
Combining Statement of Changes in Assets and Liabilities ...........
.....................................................................................132
.....................................................................................133
Component Units
Combining Statement of Net Assets .......................................................................................................................................... 136
Combining Statement of Revenues, Expenditures and Changes in Net Assets .........................................................................137
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS - CONTINUED
STATISTICAL SECTION (UNAUDITED)
Net Assets by Component.......................................................................................................................................................... .140
Change in Net Assets................................................................................................................................................................. . 141
Governmenta I Activities Tax Revenues by Source......................................... ..............................................................,........,.... .143
Fund Balances of Governmental Funds ..................................................................................................................................... 144
Changes in Fund Balances of Governmental Funds................................................................................................................... 145
Assessed Value and Estimated Actual Value ofTaxable Property ............................................................................................ 146
Property Tax Rates - All Direct and Overlapping Governments................................................................................................ 147
Principa I Tax Payers Cou nty-Wide ............................................................................................................................................. 148
Property Tax Levies and Collections........................................................................................................................................... 149
Ratios of Outstanding Debt by Type .......................................................................................................................................... 150
Ratios of Genera I Bonded Debt Outstandi ng............................................................................................................................. 151
Legal Debt Margi n Information............................................................................................................................................... ... 152
Direct and Overlapping Governmental Activities Debt ............................................................................................................. 152
Pledged-Revenue Coverage........................................................................................................................................... ............. 153
Demograph ic a nd Economic Statistics....................................................................................................................................... 154
Princi pal Em ployers ............................................................................................................................................... ..................... 155
Full- Ti me Eq u ivalent Cou nty Employees by Fu nction................................................................................................................ 156
Operating I nd icators by Fu nction............................................................................................................................................... 157
Capita I Asset Statistics by Fu nction ............................................................................................................................................ 158
SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Stondords................161
Report of Independent Certified Public Accountants on Compliance With Requirements Applicable to Each
Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB
Circular A-133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor Genero/....................................163
Schedule of Expenditures of Federal Awards and State Projects...............................................................................................166
Notes to the Schedule of Expenditures of Federal Awards and State Projects .........................................................................174
Schedule of Findings and Questioned Costs ...............................................................................................................................177
Schedu Ie of Prior Au dit Find i ngs ................................................................................................................................................ .193
THIS PAGE INTENTIONAllY lEFT BLANK
Dwight E. Brock
Clerk of Courts
1~u;rtY.,ofe611ier
CLERK OF mE CIRCUIT COURT
, '
COLLIER COUNTY qoURT@USE
3301 TAMIAMI TRAIL EA~T
P.O. BOX 4t~044 \
NAPLES, FLORIDA '341 01-30':t4
11' I
~
Clerk of Courts
Accountant
Auditor
Custodian of County Funds
--l
March 9, 2010
To the Citizens and
Members of the Board of County Commissioners,
Collier County, Florida
It is with extreme pleasure that we present to you, the citizens of Collier County and
members of the Board of County Commissioners, the Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended September 30, 2009. Responsibility for the
accuracy of the data and the completeness and fairness of the presentation, including
all disclosures, rests with the Board of County Commissioners and County management.
The Clerk of the Circuit Court's Finance and Accounting Department, as well as County
management, is responsible for establishing and maintaining internal controls to
provide reasonable, but not absolute, assurance regarding the safeguarding of assets
against loss from unauthorized use or disposition, the reliability of financial records for
preparing financial statements, and maintaining accountability of assets. The concept of
reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived, and the evaluation of costs and benefits requires estimates
and judgments by management. The Clerk is not capable of representing that the
internal controls of the County provide reasonable assurance as his office has been
precluded from examining those controls as a result of the ongoing dispute regarding
the role of the Clerk of the Circuit Court as County Auditor. The District Court of Appeals
reaffirmed its rulings to uphold the Clerk's right to audit. The Board of County
Commissioners has indicated that it will continue pursuing this issue, seeking
discretionary review by the Florida Supreme Court.
Chapter 11.45 of the Florida Statutes requires an independent certified public
accountant's financial audit of counties in the State. For the fiscal year ended
September 30, 2009, the report of the independent auditor, Ernst and Young llP, is
included in the financial section of this report. In addition to meeting the requirements
set forth in State statutes, the audit was also designed to meet the requirements of the
Federal 1996 Single Audit Act Amendments and the related OMB Circular A-133.
Phone (239)252-2646
Website: www.collierc1erk.com
Fax (239) 252-2755
Email: collierc1erM:ilcollicrclerk.com
The Florida Single Audit is required by Florida Statute 215.97. Information relating to
the Single Audits, including the schedule of expenditures of federal awards and state
projects and the independent auditors' report on compliance and internal control over
compliance with requirements applicable to each major federal and state program, are
included in the Federal and State Single Audit Section ofthis report.
Governmental accounting and auditing principles require that management provide a
narrative introduction, overview and analysis to accompany the basic financial
statements in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to compliment MD&A and the two should be read in concert.
Collier County's MD&A can be found in the Financial Section immediately following the
independent auditors' report.
PROFILE OF THE GOVERNMENT
Collier County is a Non-Charter County established in 1923 under the Constitution and
the laws of the State of Florida. The Board of County Commissioners is the legislative
body for Collier County and is made up of five residents elected by voters. In addition to
the County Commissioners, voters elect the following five constitutional officers: the
Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax
Collector.
Services provided by Collier County include public safety, emergency management,
transportation services, water and wastewater services, parks, libraries and solid waste
collection and disposal.
Budgets are prepared annually. Formal budgetary integration is employed as a
management control device during the year. The Board of County Commissioners
conducts budget workshops during June of each year. The Board's proposed budget is
released by July 15, in accordance with Florida Statutes. The budgets of Constitutional
Officers are presented to the appropriate authorizing bodies according to state statute.
Public hearings are held in September to allow taxpayer input and to adopt the budget
as final.
The General Fund ad valorem tax millage for fiscal year 2009 was unchanged from the
previous fiscal year at 3.1469. The General Fund ad valorem tax millage for fiscal year
2008 was reduced to 9% below the rolled back millage rate, (the rate which generates
the same tax revenue as levied in the previous year, exclusive of new construction) in
accordance with property tax reform measures adopted during special legislative
session. On January 29, 2008 Florida voters approved statutory revisions that included
increases to the homestead exemption, portability of Save Our Homes tax breaks up to
$500,000, a 10% cap on future assessment increases for non-homesteaded property
starting in 2009 and a new tangible equipment exemption of $25,000.
ii
ECONOMIC CONDITION AND OUTLOOK
Collier County, the state's largest county at 2,026 square miles, is on the southwest
coast of Florida, directly west of Miami. With a 2009 population of 333,032 (a 52
percent increase over the 1999 level), the County has been considered to be one of the
fastest growing counties in the state over the last ten years. The County's economic
base is concentrated in tourism and agriculture, fishing, ranching and forestry with a
growing services economy and an emerging high technology sector. Gulf of Mexico
beaches and the Everglades National Park are important attractions to this area.
Taxable property market valuation for fiscal year 2009 totaled just over $78.7 billion, or
a very high $236,202 per capita. Unemployment levels in recent years approximate, or
are slightly above, the statewide average. The 2009 annual County unemployment rate
stood at 10.0%, while the statewide average is 9.5%. Income levels are high, with a per
capita personal income of $63,276.
The County's financial operations have been managed with recurring General Fund
operating surpluses contributing to historically strong cash and General Fund balance
positions. This trend has been negatively impacted by property tax legislation and a
general slowing of the economy. The County's millage for General Fund operations in
fiscal year 2009 remained at only 31% of the statutory 10 mill limit, or $3.15 per
thousand dollars of taxable value.
Relevant financial policies include the appropriation of carryforward as revenue in the
following year, recommended General Fund unreserved fund balance of between 10%
and 15% of actual expenditures, the maximization of impact fees as allowed by law and
the use of gas taxes for the Road Construction Capital Improvement Program. The
Collier County debt policy provides for a maximum ratio of total general governmental
debt service to bondable revenues from current sources of 13%.
The major focus of the Capital Improvement Plan for FY-10 will be to complete the
transportation network, public service and life, health and safety related projects
initiated over the past two years. Funding for road construction will be provided by
remaining unspent Road Construction Fund monies and impact fees. Water and
wastewater projects will be focused on maintenance and will be funded primarily by
water and wastewater user fees.
LONG TERM FINANCIAL PLANNING
long term financial planning in Collier County focuses on the provisions of the Local
Government Comprehensive Planning and land Development Regulation Act. The
provisions of this Act require that local government comprehensive plans include a
Capital Improvement Element (ClE). The CIE is a planning document that identifies
public facilities that will be required during the next five or more years. The Capital
Hi
Improvement Element is the foundation of Collier County's annual Capital Improvement
Program (CIP). Included in the County's current CIP for fiscal years 2010-2014 are
approximately $330 million for transportation projects and approximately $267 million
for water and wastewater facilities and various replacement and rehabilitation projects.
Solid waste projects of approximately $7 million are planned, as well as $43 million for
stormwater management projects. A study is currently underway to determine the type
of infrastructure improvements necessary for development east of Collier Boulevard, in
the rural area of the County. The results of this study have major long term service
delivery issues and associated costs.
As a result of the State's 2008 tax reform legislation, the taxable value within the
jurisdiction of each taxing authority used in calculation of the rolled back rate will be
increased by an amount equal to the reduction in taxable value occurring as a result of
recent State Constitutional amendments. This legislation did not impact the Collier
County levy for FY-2010 as the Board of County Commissioners adopted a millage
neutral policy. The roll back calculation for all future fiscal years will be impacted.
In summary, residential and commercial development and an established tourism
economy will continue to contribute to a tax base that has averaged S% growth annually
for the last five years. While recent growth has moderated, this was not unexpected
given the exceptional growth rates of recent years. New home construction is
hampered by the number of existing homes available and a growing number of
foreclosures. The overall housing market remains relatively soft, however there
continues to be activity in the high end real estate market. Historically, Collier County's
economy has proven to be better insulated from economic downturns than other
Florida counties, or the nation. Future years will be challenging, given the current issues
in the housing market and the state budget, inflationary concerns, and revenue
limitations imposed by tax reform. However, Collier County continues to attract
affluent retirees, and the growing services economy and an emerging high technology
sector should continue to attract population growth and development throughout the
County.
CASH MANAGEMENT
The Finance and Accounting Division monitors the daily cash needs of the County and
invests the County's portfolio in accordance with the County's written investment
policy. The primary objective of the investment policy is the preservation of capital and
the protection of investment principal. Authorized investments include certificates of
deposit, the Local Government Funds Surplus Trust Fund, U.S. treasury securities, U.S.
agency securities, commercial paper and bankers' acceptances. The weighted average
maturity of the total managed portfolio was 1.03 years as of September 30, 2009. The
average yield for fiscal year 2009 was 1.90%, on an accrual basis. Changes in the fair
value of investments are recorded separately from interest income in the financial
statements.
iv
AWARDS
GFOA Certificate of Achievement:
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier
County, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year
ended September 30, 2008. The Certificate of Achievement is a prestigious national
award, recognizing conformance with the highest standards for preparation of state and
local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized Comprehensive Annual Financial Report whose
contents conform to program standards. The CAFR must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. Collier County has
received this award for the past twenty-three years, from fiscal year 1986 to 2008. We
believe our current report conforms to the Certificate of Achievement program
requirements, and we are submitting it to the GFOA for consideration for an award
again this year.
Distinguished Budget Presentation Awards:
The Government Finance Officers Association of the United States and Canada
presented an award for Distinguished Presentation to Collier County for its annual
budget for the fiscal year beginning October 1, 2008. In order to receive this award, a
government unit must publish a budget document that meets program criteria as a
policy document, as an operations guide, as a financial plan, and as a communications
device, The Distinguished Budget Presentation Award is valid for a period of one year
only. Collier County has received this award for the last twenty consecutive years.
The Government Finance Officers Association of the United States and Canada
presented an award for Distinguished Presentation to the Office of the Collier County
Clerk of the Circuit Court for its annual budget for the fiscal year beginning October 1,
2008. In order to receive this award, a government unit must publish a budget
document that meets program criteria as a policy document, as an operations guide, as
a financial plan, and as a communications device. The Distinguished Budget
Presentation Award is valid for a period of one year only. The Clerk's Office has received
this award for the last eight consecutive years.
v
ACKNOWLEDGEMENTS
The preparation and publication of this Comprehensive Annual Financial Report
represents a significant effort by the Finance and Accounting Department as well as
numerous County personnel who contribute to its production. In particular we would
like to express our appreciation to Kelly Jones, CGFO, Edith Manuel, CPA, Precious
Corrado, June Wathen, Liz Willis, Suzanne Boothby, Dan Tripaldi, Ashley Pearson and
Karen Oberrath, all Accountants, along with Constance Murray, CGFO, General
Operations Manager, Raymond Milum, Jr., Clerk's Fiscal Operations Manager, Nancy
Fragione, Senior Financial Specialist and Michele Bettencourt, Office Assistant, and all of
the staff of the Finance and Accounting Department.
Sincere appreciation is also expressed to Ernst and Young LLP, the Board of County
Commissioners, the Constitutional Officers, the County Manager, Division
Administrators and the Department Directors for their assistance throughout the year in
matters pertaining to the financial affairs of the County.
We hope you find this report informative, accurate and easily readable. If you should
have any questions related to this report or if additional information is desired, do not
hesitate to contact Crystal K. Kinzel, Director of Finance and Accounting, at (239) 252-
6299.
Dwigh . Brock
Clerk of the Circuit Court
Chief Financial Officer
~,k.~
Deputy Clerk
Directo~. Finance and Accounting
l "',,,- m
Deputy Clerk
General Accounting Manager
vi
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Collier County
Clerk of the Circuit Court
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
~/~
Executive Director
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for
its comprehensive annual financial report for the fiscal year ended September 30, 2008. This
was the twenty-third consecutive year that the government has achieved this prestigious
award, In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The Comprehensive Annual Financial Report (CAFR) is prepared each year by the Clerk of the Circuit Court.
On the cover:
Collier County is located in southwest Florida.
The logo of Collier County as well as the logo of each constitutional office is represented on the
cover including:
Clerk of Courts - Dwight E. Brock
Property Appraiser - Abe Skinner
Sheriff's Office - Kevin J. Rambosk
Supervisor of Elections - Jennifer J. Edwards
Tax Collector - Larry H. Ray
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED
SEPTEMBER 30, 2009
COLLIER COUNTY, FLORIDA
BOARD OF COUNTY COMMISSIONERS
DONNA L. FIALA, CHAIRMAN - DISTRICT 1
FRED W. COYLE, VICE-CHAIRMAN - DISTRICT 4
FRANK HALAS - DISTRICT 2
THOMAS K. HENNING - DISTRICT 3
JAMES N. COLETTA, Jr. - DISTRICT S
COUNTY MANAGER
JAMES V. MUDD
COUNTY ATTORNEY
JEFFREY A. KLATZKOW
CLERK OF THE CIRCUIT COURT AND CHIEF FINANCIAL OFFICER
DWIGHT E. BROCK
DIRECTOR OF FINANCE AND ACCOUNTING
CRYSTAL K. KIN2EL
Prepared by the Finance and Accounting Department
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COLLIER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Transmittal Letter'''''''''.'''..'''''''' ,,,,,,..'.,,,,.,,.,,,,,,,,., """,,,..,,.,.",.,,,,,,,,.,,,,,,,.,,.",,,,,,,,,,,,,,,,,,,,,,,,...,,'.'.'" """,,,,,,,,,,,,,,,,,,,,,,,,.,,.,,,,,. i
Certificate of Achievement"""",,,,,,.,,,,.,,,,,,,,,.,,,,,,,,,,,,.,.,,.,,.,,,,,,,,,,,,,,.,,,,,,,,., ,,,,,,,,,,,,,,,,,,.,,...,,,,,,,,,,,,.,,,, """,,,,,.,,,,.,,,..'''.'',,,,,,,,,, vii
FINANCIAL SECTION
Report of Independent Certified Public Accountants",,, ,,""""""""""',,"'"''''''''''''''''''''''''''',,''''''''''''''''''''''''''''''''''''''''',,'''''' 1
Management's Discussion and Analysis (Unauditedj".".,,,,,,,,,,,.,,,,,., ""'''''''''''''''''''',,''''''''''''''''''''''''''''''''''',''.._.,'''''''',."",,,,, 3
Basic Financial Statements:
Statement of Net Assets,."."".,.,,,,,.,,,,,.,,,,,.,,,,,..,,,,,,,,,,,,,,,,,,,,,,..,.,,,,,.,,.,,,,,,,,,,,,.,,,.,,,,,,,.,,,,,,,,,,,,,, """,,,,,,,,,,,,....',,.,, ".'",,,,,,,, 14
Statement of Activities,.""..,.,."",,,,.,,,,,,.,. _'..,,,,,.,,.,,,,,,,,.,...,,,,,,,,,,,,,,,,,,,,,,,....,,.,.,,.,,.,,,,,,,,,,,,,.,.,,".,,.".'.,,.,'''''''''''''''''''''',,.,,.,, 16
Ba la nee Sheet - Govern mental Fu nds.,...,,,,,,,,,,,,,,,,.,,,,.,,,.,,,,,,,,,,,,,,.,,.,.,,...,,,,.,,.,,,,,,,,,,,,.,,.,,,,.,,,,,, """'''''''''' '" ",,,,,.,,,,.,,,,,,,,, 18
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets "'"'''''''''','',''''''''''''''''''''''''' 19
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds"""""""""""""",,,,,,,,,,,,,,,,20
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental
Fu nds to the Statement of Activities,,,,,,,.,.,,,..,,,,.,,,,,,,,.,,.,,..,.,,.,,,,,,. ,,,,,,,.,,,,,,,,,,.,,.",,.,,,,,,,,,.,,.,,,,,,,,,,,,.,,.".....'..",,,,,,,,,, 21
General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
(N on-GAAP)" ,,"" """'''''''''' ,,""'"'''' '" '" '" '" ",,,"" "'''' '" """ "',,""'" """"'"'''' "" ''','''''''''''''''''' """ """ "" "''',,'' """ "" '" 22
Community Redevelopment - Statement of Revenues, Expenditures and Changes in Fund Balances-
Bu dget a nd Actual (N on-GAAP) ",,,,,.,,.,,,,,.,.",,.,,,,,.,.,,,,,,,,.,,,,. _"",."",,,,.,,,,,,,,.,,,,,,,,,,,,,,,.,,,,,,.,,,,,.,,,,..... _'''''..,.'''''''''''''''''''''' 2S
Statement of Net Assets - Proprietary Funds ,,,"""'''''''''''''''''''',''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''"",,"""""'"'''''''''' 26
Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds """"",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,, 28
Statement of Cash Flows - Proprietary Funds ,,,."'..,,.,,,,,.,,,,,,,,,,,,,".",,,,,,,,,,,,,,,,,.,,.,'''',.,''',."."",,,,,,,,,,,,,.,,,...,.,,,,,.,,.,,,,,,,,.,,, 29
Statement of Fiduciary Assets and Liabilities - Agency Funds""",,,,,,,,,,,,,,___,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,""""",,31
Notes to the Fi nancia I Statements"",,,,,,.,.,,,,,.,,.,,.,,,,,,,,,..,.,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,., ,,,,,,,,,,,,,,.,,,,,,,,,.,,.,,,,,,,,,,,,,,,,,,,,,,,..,,....',,,,,,, 33
Required Supplementary Information ,,,,,,,,,,,,,".",,,,,,,,,,,,,,,.,,.,,,,,,.,,,,,,,,,,,,,.,,.,,...,,.,,.,,,,,,,,,,,,.,,.,.,,',.,,.,,.,'''''''''' ",,,,,.,,.,,..' -""'" 74
Combining and Individual Fund Financial Statements:
Nonmaior Governmental Funds
Com bini ng Bala nee Sheet "."",,,,,.,,,,,,,,,,,,,,...,,...,,.,,.,,,,,,,,.,,.,,,.,,.,,,,.,,,,,,,,,,,,,,,,...,,,,,,,,,,,,,,,,,,,,.,,,,.,,.,,',,""''''''''''''''''''''''''''''',,.,,. 80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances""_""""""",,,,,,,,,,,,___,,_,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,88
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) .__"'''''''''' 96
Nonmaior Enterorise Funds
Combining Statement of Net Assets .'",,,,,,,,,,,,,,,.,,,..,,,,,.,,,,,,,,,,,,.,.,._,,,,,,,,,,,,,,,,,,,,,',,'"_,,,,,,,,,,,,,,,,,,,,..,,,.",,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,.. 120
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets """""',,"",""'''''''''''''''''''''''''''''','''''''''''''''' 121
Combin i ng Statement of Cash Flows _,,,,,,,,,,,.,,,,'.',.',.,,.,,.,,.,,.,,,,,,,,,...,,.,,,,,,,,,,,,,,,,,.,' _"."",,,,,,,,,,,,,,.,,,,,,,.,.,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,122
Internal Service Funds
Combining Statement of Net Assets ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,".",,,,,,,,,,,,,,,.,,.,,'"'''''''''''''''''' .....".",,,,,,,,,,,,,,,,,,,,,,,,_,,,,.,,,...",,,,,,,,,,,,,, 126
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets """"",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. 127
Com bin i ng Statement of Cash Flows" _"."",,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,.,,.,,,,.,,.,,.,,.,,,,,,,,,.,,.'.,,'"'''''''''''''',.,,.,''''''''''''''''''''''''''' 128
Fiduciary Funds
Combining Statement of Fiduciary Assets and Liabilities """"",,,,,,,,,,,,,.",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,""'"'''''' 132
Combining Statement of Changes in Assets and Liabilities "",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,, ",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,133
Comoonent Units
Combining Statement of Net Assets ...",,,,,.,,,,,,,,,,,,,,,.',,,,,,,,,,,,,,,,,,,,,,,.,,."',,"",.,,.,''''"."..".".""",,,,,,,,.,,,,,,,,,,,,,.,,.....,,,,,,,,,,,,,,, 136
Combining Statement of Revenues, Expenditures and Changes in Net Assets ",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,_,,,,,,,,,,,,,,,,,,137
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS - CONTINUED
STATISTICAL SECTION (UNAUDITED)
Net Assets by Component,,',,''.''..',,',,',,'',,'.''.'',,',,..'.,,',,',,',,',,',,',,'.''.''.'',,',,',,',,',,',,',,',,''.'',,',,',,',,'',,',,',,',,',,''..'.'.,,',, ,,,,,,,,,,,,,,, ,140
Cha nge in Net Assets.."".,,,, ,,,,,,,,,,....,,,,,,,,,,,,,,,,,,,,,,.,.....,,,,,.,,,, ,,,,,,,,,,,,'.,,,,,.,,,,,,,,,,,,,,,,,.,,,,.,,..",,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. .....".,,, 141
Govern mental Activities Tax Revenues by Sou ree.........".".".............................................. ...................................................... ..143
Fund Balances of Governmental Funds ",,,.",,,,,,,,,,,,,,,,,,,,,.,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,'..,''''''''''"""""",,,,,,.,,."..",,,,,,,,,,,,,,,,,,,,,,,,,, 144
Changes in Fund Balances of Governmental Funds"""",,,,___,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,""""""""""",,,,,,,, 145
Assessed Value and Estimated Actual Value ofTaxable Property ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 146
Property Tax Rates - All Direct and Overlapping Governments""""",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.",,,,,,, 147
Princi pal Tax Payers Cou nty-Wide ",,,,,.,,,,,.,,.,,.,,.....,.,,.,,.,,,,,,,,.,,,,,,,,..,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,.,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 148
Property Tax Levies a nd Collections.,."",,,,,,,,,,,,,,,,,,.,,,..,,,,,.,,,,,,,,,,,,,,,,.,,,,,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...,,.,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,. 149
Ratios of Outstanding Debt by Type ,,,,,,,,,.,,,,.,,.,,,,,,,,.,,,,,,,,.,,..,,.",,,,,,,,.,,,,,.,,,,,..,".".",,,,,,,,.,,.,,,,,,,,,.,,.,,,,,,,,,.,,,...,..,,".",,,,,,,,,,, 150
Ratios of Genera I Bonded Debt Outstandi ng,."."",,,,,,,.,,,,,.,,.,,.,,..,..,.,,.,,,,,,,,,,,,,,,,,,.,,.,,..,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,..,,,,.,, 151
Legal Debt Ma rgin Information",,,,,,...,,.,,,,,,,,,,,,,,,,,,,,,,.,.,,,,,,,,,,,,,,,,,,,,,,...,,.,,,,.,,.,,.,,,,,,,,.,,,,,,.,.,,.,,,,,,,.,,.,,,,,,,,,,,,.,,,,,.,,,,,,,,.,.,,,,,. 152
Direct and Overlapping Governmental Activities Debt ",,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,'''''''''',,,,,,,,,,,,,,,,, 152
Pledged-Reven ue Coverage".""."",,,,,,,,.,,..,,,,,,,,,,,,,,,,,,,.,,,,,,,,..,,,.,,,,.,,,,,,,,,,,,,,,,,,,,.,,.,,..,,,,,,,,,,,.,,,,,,,,,,,,.,,.,.,,,,,.,.,,.,,.,,,,,.,,.,,,, ,,, 153
Demogra ph ic and Econom ic Statistics",,,,,,,,,.,.,,.,,.,,.,,.,,.,,.,,.,,,...,,.,,.,,,, ,,,,.,,,,,,,,,,,,,,,,,,.,,,,,.,,,,,,,,,.,,.,,,,,,,,,,,,.',...,,,,,,,,,,,,,.,,,,,.,,, 154
Pri nci pal Em ployers "".".".""'...,."",,,,,,,,,,,,,,.,.",,,,.,,,,,,,,,,,,.,,,,.,.",,,,.,,.,,,,,,,,,,,,,,,,,,,',.,,.,,.,,.,'''',.,''''''',.,,.,',,.,,''''.....'.'',.,' ",,,,.,,, 155
Fu 11- Ti me Eq u ivalent County Employees by Fu nction"",,,,,.,,,,,,,,,,,.,,,,,.,,,,,,,,,,,.,,,,,.,,.,,,,.,,,,.,,.,,,,,,.,,.,,.,,,,,,,,,,,,.,,.,..,,...,,.,,..,,,,,, 156
Operating I ndicators by Fu nction",,,,,,,,,,,,,,.,,.,,..,.,,,,,.,,.,,,,,.,,.,,.,,.,,.,,....,,..,,,,,,,.,,,,,,,,,,,,.,,,.,,,,,,,,.,,.,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,....,,.. 157
Ca pita I Asset Statistics by Function...,,,,,,,,,,,,,,,,,,,,.,,,,,,.,.,,,,.,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,.,,.,,,,,,,...,,..,.,,,,,,.,,.,,,,,,,,,,,,,,,,,,,,,,,,.,,.,,,,, 158
SINGLE AUDIT ISCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards,,,,,,,,,,,,,,,, 161
Report of Independent Certified Public Accountants on Compliance With Requirements Applicable to Each
Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB
Circular A-133, Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,163
Schedule of Expenditures of Federal Awards and State Projecls,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,""",,,,,,166
Notes to the Schedule of Expenditures of Federal Awards and State Projects ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,174
Schedule of Findings and Questioned Costs "."",,,,,,,,,,...",,,,,,,,,,,,,,,,,,,.,.......,,,.,,,,,.,,,,,,,,,,"."",,,,,,.,,,,.,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,..177
Schedule of Prior Audit Fi ndings ,,,,,,,,.,,,,..',,,,,,,,,,,,,,,,,,,,.,,,.,,.,.,,,,,,,,,,,,,,,,,,,,,,,,,...,,.,.,,.,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,."''''''''''''''''''''''''',. 193
THIS PAGE INTENTIONALLY LEFT BLANK
Dwight E. Brock
Clerk of Courts
;(;eupfY.:~-f e6~lier
CLERK OF mE ClRCCrIT COURT
COLLIER COUNTY <:p. URTI)pUSE
3301 TAMIAMI TltAIL EA'tT
P.O. BOX 4j~044 '\
NAPLES, FLORIDA 14101-30~4
*1
.J
Clerk of Courts
Accountant
Auditor
Custodian of County Funds
March 9, 2010
To the Citizens and
Members of the Board of County Commissioners,
Collier County, Florida
It is with extreme pleasure that we present to you, the citizens of Collier County and
members of the Board of County Commissioners, the Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended September 30, 2009, Responsibility for the
accuracy of the data and the completeness and fairness of the presentation, including
all disclosures, rests with the Board of County Commissioners and County management.
The Clerk of the Circuit Court's Finance and Accounting Department, as well as County
management, is responsible for establishing and maintaining internal controls to
provide reasonable, but not absolute, assurance regarding the safeguarding of assets
against loss from unauthorized use or disposition, the reliability of financial records for
preparing financial statements, and maintaining accountability of assets. The concept of
reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived, and the evaluation of costs and benefits requires estimates
and judgments by management, The Clerk is not capable of representing that the
internal controls of the County provide reasonable assurance as his office has been
precluded from examining those controls as a result of the ongoing dispute regarding
the role of the Clerk of the Circuit Court as County Auditor. The District Court of Appeals
reaffirmed its rulings to uphold the Clerk's right to audit, The Board of County
Commissioners has indicated that it will continue pursuing this issue, seeking
discretionary review by the Florida Supreme Court,
Chapter 11.45 of the Florida Statutes requires an independent certified public
accountant's financial audit of counties in the State. For the fiscal year ended
September 30, 2009, the report of the independent auditor, Ernst and Young LLP, is
included in the financial section of this report. In addition to meeting the requirements
set forth in State statutes, the audit was also designed to meet the requirements of the
Federal 1996 Single Audit Act Amendments and the related OMB Circular A-133.
Phone (239)252-2646
Website: www.collierclerk.com
Fax (239) 252-2755
Email: collierclerk(akollierclerk.com
The Florida Single Audit is required by Florida Statute 215,97. Information relating to
the Single Audits, including the schedule of expenditures of federal awards and state
projects and the independent auditors' report on compliance and internal control over
compliance with requirements applicable to each major federal and state program, are
included in the Federal and State Single Audit Section ofthis report,
Governmental accounting and auditing principles require that management provide a
narrative introduction, overview and analysis to accompany the basic financial
statements in the form of Management's Discussion and Analysis (MD&A), This letter of
transmittal is designed to compliment MD&A and the two should be read in concert.
Collier County's MD&A can be found in the Financial Section immediately following the
independent auditors' report,
PROFILE OF THE GOVERNMENT
Collier County is a Non-Charter County established in 1923 under the Constitution and
the laws of the State of Florida, The Board of County Commissioners is the legislative
body for Collier County and is made up of five residents elected by voters. In addition to
the County Commissioners, voters elect the following five constitutional officers: the
Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax
Collector.
Services provided by Collier County include public safety, emergency management,
transportation services, water and wastewater services, parks, libraries and solid waste
collection and disposal.
Budgets are prepared annually. Formal budgetary integration is employed as a
management control device during the year. The Board of County Commissioners
conducts budget workshops during June of each year. The Board's proposed budget is
released by July 15, in accordance with Florida Statutes, The budgets of Constitutional
Officers are presented to the appropriate authorizing bodies according to state statute.
Public hearings are held in September to allow taxpayer input and to adopt the budget
as final.
The General Fund ad valorem tax millage for fiscal year 2009 was unchanged from the
previous fiscal year at 3.1469, The General Fund ad valorem tax millage for fiscal year
2008 was reduced to 9% below the rolled back millage rate, (the rate which generates
the same tax revenue as levied in the previous year, exclusive of new construction) in
accordance with property tax reform measures adopted during special legislative
session. On January 29, 2008 Florida voters approved statutory revisions that included
increases to the homestead exemption, portability of Save Our Homes tax breaks up to
$500,000, a 10% cap on future assessment increases for non-homesteaded property
starting in 2009 and a new tangible equipment exemption of $25,000.
ii
ECONOMIC CONDITION AND OUTLOOK
Collier County, the state's largest county at 2,026 square miles, is on the southwest
coast of Florida, directly west of Miami. With a 2009 population of 333,032 (a 52
percent increase over the 1999 level), the County has been considered to be one of the
fastest growing counties in the state over the last ten years. The County's economic
base is concentrated in tourism and agriculture, fishing, ranching and forestry with a
growing services economy and an emerging high technology sector. Gulf of Mexico
beaches and the Everglades National Park are important attractions to this area.
Taxable property market valuation for fiscal year 2009 totaled just over $78,7 billion, or
a very high $236,202 per capita. Unemployment levels in recent years approximate, or
are slightly above, the statewide average, The 2009 annual County unemployment rate
stood at 10.0%, while the statewide average is 9.5%, Income levels are high, with a per
capita personal income of $63,276.
The County's financial operations have been managed with recurring General Fund
operating surpluses contributing to historically strong cash and General Fund balance
positions, This trend has been negatively impacted by property tax legislation and a
general slowing of the economy, The County's millage for General Fund operations in
fiscal year 2009 remained at only 31% of the statutory 10 mill limit, or $3.15 per
thousand dollars of taxable value.
Relevant financial policies include the appropriation of carryforward as revenue in the
following year, recommended General Fund unreserved fund balance of between 10%
and 15% of actual expenditures, the maximization of impact fees as allowed by law and
the use of gas taxes for the Road Construction Capital Improvement Program, The
Collier County debt policy provides for a maximum ratio of total general governmental
debt service to bondable revenues from current sources of 13%,
The major focus of the Capital Improvement Plan for FY-10 will be to complete the
transportation network, public service and life, health and safety related projects
initiated over the past two years. Funding for road construction will be provided by
remaining unspent Road Construction Fund monies and impact fees. Water and
wastewater projects will be focused on maintenance and will be funded primarily by
water and wastewater user fees.
LONG TERM FINANCIAL PLANNING
Long term financial planning in Collier County focuses on the provisions of the Local
Government Comprehensive Planning and Land Development Regulation Act, The
provisions of this Act require that local government comprehensive plans include a
Capital Improvement Element (ClE), The CIE is a planning document that identifies
public facilities that will be required during the next five or more years, The Capital
Hi
Improvement Element is the foundation of Collier County's annual Capital Improvement
Program (CIP), Included in the County's current CIP for fiscal years 2010-2014 are
approximately $330 million for transportation projects and approximately $267 million
for water and wastewater facilities and various replacement and rehabilitation projects.
Solid waste projects of approximately $7 million are planned, as well as $43 million for
stormwater management projects. A study is currently underway to determine the type
of infrastructure improvements necessary for development east of Collier Boulevard, in
the rural area of the County, The results of this study have major long term service
delivery issues and associated costs,
As a result of the State's 2008 tax reform legislation, the taxable value within the
jurisdiction of each taxing authority used in calculation of the rolled back rate will be
increased by an amount equal to the reduction in taxable value occurring as a result of
recent State Constitutional amendments, This legislation did not impact the Collier
County levy for FY-201O as the Board of County Commissioners adopted a millage
neutral policy, The roll back calculation for all future fiscal years will be impacted.
In summary, residential and commercial development and an established tourism
economy will continue to contribute to a tax base that has averaged 5% growth annually
for the last five years, While recent growth has moderated, this was not unexpected
given the exceptional growth rates of recent years. New home construction is
hampered by the number of existing homes available and a growing number of
foreclosures. The overall housing market remains relatively soft, however there
continues to be activity in the high end real estate market. Historically, Collier County's
economy has proven to be better insulated from economic downturns than other
Florida counties, or the nation, Future years will be challenging, given the current issues
in the housing market and the state budget, inflationary concerns, and revenue
limitations imposed by tax reform. However, Collier County continues to attract
affluent retirees, and the growing services economy and an emerging high technology
sector should continue to attract population growth and development throughout the
County,
CASH MANAGEMENT
The Finance and Accounting Division monitors the daily cash needs of the County and
invests the County's portfolio in accordance with the County's written investment
policy. The primary objective of the investment policy is the preservation of capital and
the protection of investment principal. Authorized investments include certificates of
deposit, the Local Government Funds Surplus Trust Fund, U.S, treasury securities, U,S.
agency securities, commercial paper and bankers' acceptances. The weighted average
maturity of the total managed portfolio was 1.03 years as of September 30, 2009, The
average yield for fiscal year 2009 was 1.90%, on an accrual basis. Changes in the fair
value of investments are recorded separately from interest income in the financial
statements.
iv
AWARDS
GFOA Certificate af Achievement:
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier
County, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year
ended September 30, 2008, The Certificate of Achievement is a prestigious national
award, recognizing conformance with the highest standards for preparation of state and
local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized Comprehensive Annual Financial Report whose
contents conform to program standards. The CAFR must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. Collier County has
received this award for the past twenty-three years, from fiscal year 1986 to 2008, We
believe our current report conforms to the Certificate of Achievement program
requirements, and we are submitting it to the GFOA for consideration for an award
again this year.
Distinguished Budget Presentatian Awards:
The Government Finance Officers Association of the United States and Canada
presented an award for Distinguished Presentation to Collier County for its annual
budget for the fiscal year beginning October 1, 2008. In order to receive this award, a
government unit must publish a budget document that meets program criteria as a
policy document, as an operations guide, as a financial plan, and as a communications
device. The Distinguished Budget Presentation Award is valid for a period of one year
only. Collier County has received this award for the last twenty consecutive years.
The Government Finance Officers Association of the United States and Canada
presented an award for Distinguished Presentation to the Office of the Collier County
Clerk of the Circuit Court for its annual budget for the fiscal year beginning October 1,
2008. In order to receive this award, a government unit must publish a budget
document that meets program criteria as a policy document, as an operations guide, as
a financial plan, and as a communications device, The Distinguished Budget
Presentation Award is valid for a period of one year only, The Clerk's Office has received
this award for the last eight consecutive years,
v
ACKNOWLEDGEMENTS
The preparation and publication of this Comprehensive Annual Financial Report
represents a significant effort by the Finance and Accounting Department as well as
numerous County personnel who contribute to its production, In particular we would
like to express our appreciation to Kelly Jones, CGFO, Edith Manuel, CPA, Precious
Corrado, June Wathen, Liz Willis, Suzanne Boothby, Dan Tripaldi, Ashley Pearson and
Karen Oberrath, all Accountants, along with Constance Murray, CGFO, General
Operations Manager, Raymond Milum, Jr., Clerk's Fiscal Operations Manager, Nancy
Fragione, Senior Financial Specialist and Michele Bettencourt, Office Assistant, and all of
the staff of the Finance and Accounting Department,
Sincere appreciation is also expressed to Ernst and Young LLP, the Board of County
Commissioners, the Constitutional Officers, the County Manager, Division
Administrators and the Department Directors for their assistance throughout the year in
matters pertaining to the financial affairs of the County,
We hope you find this report informative, accurate and easily readable. If you should
have any questions related to this report or if additional information is desired, do not
hesitate to contact Crystal K. Kinzel, Director of Finance and Accounting, at (239) 252-
6299,
Dwigh . Brock
Clerk of the Circuit Court
Chief Financial Officer
~k.~
Deputy Clerk
Direct9EjinanCe and Accounting
~ J"'~~. <fA ..
~P~~~v~lerk
General Accounting Manager
vi
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Collier County
Clerk of the Circuit Court
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2008
A Certificate of Achievement for Excellence ir. Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
f!#r/~
Executive Director
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for
its comprehensive annual financial report for the fiscal year ended September 30, 2008. This
was the twenty-third consecutive year that the government has achieved this prestigious
award, In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only, We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate,
FINANCIAL SECTION
THIS PAGE INTENTIONAllY lEFT BLANK
111111111111111111111111111"'" i!J ERNST & YOUNG
Ernst & Young LLP
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Report of Independent Certified Public Accountants
Distinguished Members of the Board of County Commissioners
Collier County, Florida:
We have audited the accompanying financial statements of the governmental acl1vltles, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of Collier County, Florida (the County), as of and
for the year ended September 30,2009, which collectively comprise the County's basic tinaneial
statements as listed in the table of contents. These financial statements are the responsibility of
the County's management. Our responsibility is to express opinions on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards. issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an audit of the
County's internal control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
County's internal control over tinancial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the County as of September 30, 2009, and the respective changes in financial
position and, where applicable, cash flows thereof, and the respective budgetary comparison
information for the general fund and community redevelopment fund for the year then ended in
conformity with US generally accepted accounting principles.
As discussed in note 18, the net assets of governmental activities and fund balance of the
Community Redevelopment Fund have been restated as of September 30, 2008 to correct the
accounting for land purchased in a prior year and previously excluded from governmental
activities and for land rehabilitated and held for resale in previous periods that was excluded
from the Community Redevelopment Fund.
1002-1130878
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1111111111111111111111111111,,'" i!J ERNST & YOUNG
In accordance with Government Auditing Standards, we have also issued our report dated
February 10,2010 on our consideration of the County's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management's Discussion and Analysis on pages 3 through 13 and schedule of funding
progress tor the retiree health plan on page 74 is not a required part of the basic financial
statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurcment and presentation of the rcquired
supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County's basic tinancial statements. The introductory section,
combining and individual nonmajor fund financial statements, and statistical section are
presented for purposes of additional analysis and are not a requircd part of the basic financial
statements. The accompanying schedule of expenditures of federal awards and state projects is
presented for purposes of additional analysis as required by the U.S. Office of Management and
Budget Circular A-133, Section 215.97, Florida Statutes and Chapter 10.550, Rules of the
A uditor General, and is not a required part of the basic financial statemcnts. The combining and
individual nonmajor fund financial statements and the schedule of expenditures of federal awards
and state projects have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all matcrial respects in relation to the
basic financial statements takcn as a whole. The introductory section and statistical section have
not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
~.,. MLL'P
February I 0, 2010
2
1002-1l30878
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MANAGEMENT'S DISCUSSION AND ANALYSIS
(UNAUDITED)
As Clerk of the Circuit Court and chief financial officer of Collier County, Florida, I present the readers of
the County's financial statements this narrative overview and analysis of the financial activities of Collier
County for the fiscal year ended September 30, 2009. Readers are encouraged to consider the
information presented in this narrative in conjunction with additional information offered in the letter
of transmittal, found on pages i-vi ofthis report.
Financial Highlights
Collier County's assets exceeded its liabilities as of September 30, 2009 by $2,398,274,491. Of
this amount, $341,863,646 represents unrestricted net assets and may be used to meet future
obligations.
The County's total net assets increased by $68,887,651 over fiscal year 2008, with $37,709,841
of the increase resulting from governmental activities and $31,177,810 resulting from business-
type activities.
As of September 30, 2009 Collier County's governmental fund financial statements showed
combined ending fund balances of $410,216,176, a decrease of $92,720,302 over the previous
fiscal year. Of the total combined ending fund balance, $295,263,039 remains in the various
governmental funds of Collier County as unreserved.
The General Fund reported an unreserved fund balance of $38,923,751 at September 30, 2009,
a decrease of $23,029,184 compared to September 30,2008.
Total net bonded debt and outstanding loans owed by Collier County decreased by $23,894,064
during fiscal year 2009, with a decrease in net governmental activities debt of $22,190,023 and a
decrease in the net business-type activities debt of $1,704,041. The County prepaid
$19,513,000 in commercial paper debt, with $11,235,000 of the total relating to Caribbean
Gardens. During fiscal year 2009, Collier County also borrowed $13,244,204 to partially fund the
purchase of an environmentally sensitive property known as the Pepper Ranch Preserve. The
Bayshore/Gateway Community Redevelopment Agency borrowed $13,500,000 for purposes of
refinancing a $5,901,000 line of credit and acquisition of properties targeted for redevelopment.
The Collier County Water and Sewer District also borrowed $10,071,825 from the Florida
Department of Environmental Protection's State Revolving Fund Program.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction and explanation of Collier County's
basic financial statements, comprised of government-wide and fund financial statements, as well as
notes to the financial statements. There is additional supplementary information following these
financial statements that may be of interest to the reader.
3
Government-Wide Financial Statements
Government-wide financial statements are designed to provide the reader an overview of the financial
position of the County and are similar to private sector financial statements. These statements are
comprised of a Statement of Net Assets and a Statement of Activities and are found on pages 14 to 17 of
this report.
The Statement of Net Assets shows the financial position of Collier County as of September 30, 2009.
The statement shows the County's assets less its liabilities, with the difference being reported as net
assets. Changes in net assets are useful indicators of financial condition.
The Statement of Activities follows the statement of net assets and reports the changes in net assets
over the fiscal period. All changes in net assets are reported as soon as the underlying events that gave
rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and
expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused
vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in
future fiscal periods.
These statements distinguish Collier County functions that are supported by taxes and
intergovernmental revenues (governmental activities), from business-type activities, which are intended
to have their costs primarily recovered through user fees and charges.
Governmental activities reported in the financial statements are general government, public safety,
physical environment, transportation, economic environment, human services and culture and
recreation. Business-type activities in Collier County include water and sewer, solid waste collections,
airport operations, transit operations and emergency medical services.
Fund Financial Statements
A fund is a group of related accounts used to maintain control over resources that have been segregated
to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses
fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of
the County can be divided into the following three categories: governmental, proprietary and fiduciary.
Governmental funds - Governmental funds, presented on pages 18 to 25, account for substantially the
same functions as governmental activities reported under the Government-Wide Statement of Net
Assets and Statement of Activities. The difference is that the governmental fund financial statements
focus on inflows and outflows of expendable resources, as well as balances of expendable resources
available at the end of the fiscal year, on a near term basis. As such, these statements present a
narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term
financing requirements and available resources.
Comparison between the two sets of financial statements allows the reader to better assess the future
impact of the government's near term financial decisions. Both the governmental fund balance sheet
and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to
the respective government-wide financial statements to facilitate comparison.
4
Governmental funds presented individually in Collier County's statements include four major funds, the
General Fund, Road Impact Districts Fund, Road Construction Fund and the Community Redevelopment
Fund. While there are many smaller governmental funds under Collier County management, they are
aggregated in a total column named "other governmental funds". Combining statements for these
other governmental funds have been presented elsewhere in this report.
Proprietary funds - Collier County maintains two different types of proprietary funds, enterprise and
internal service, which are reflected on pages 26 to 30 of this report.
Enterprise funds report, with more detail, the same functions presented as business-type activities in
the government-wide financial statements for water and sewer, Goodland water, solid waste disposal,
emergency medical services, transit and the airport authority. The Collier County Water and Sewer
District Fund is presented individually as a major fund.
Internal service funds are maintained to allocate and accumulate costs internally for Collier County. The
County uses internal service funds to account for health insurance, worker's compensation insurance,
property and casualty insurance and fleet operations. The internal service funds are presented in total
in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the
report.
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties
outside of Collier County government. These funds are not presented in the government-wide financial
statements as they do not represent resources available to support Collier County functions. The
fiduciary funds are presented in the on page 31 of this report. All of the County's fiduciary funds are
agency funds. The accounting used for agency funds is based on the concept that assets equal liabilities
when the government is acting in a fiduciary capacity.
Notes to the Financial Statements
The notes provide additional information essential to a full understanding of the data provided in both
the government-wide and fund financial statements. The notes appear on pages 34 to 72 of this report.
Other Information
The combining and individual non major fund financial statements and schedules mentioned above
present more detailed views of nonmajor governmental and enterprise funds and begin on page 83.
This section contains combining balance sheets and statements of revenues, expenditures and changes
in fund balance for governmental funds, including budgetary comparisons, and combining balance
sheets and statements of revenues, expenses and changes in fund net assets for enterprise funds. Also
included are combining financial statements for internal service and agency funds. Additional
information about the County, which may be of interest to the reader, can be found under the Statistical
and Single Audit sections of this report.
5
Government-Wide Financial Analysis
Changes in net assets over time are a useful indicator in assessing financial condition. Collier County's
increase in net assets for this fiscal year amounts to $68,887,651, resulting in an ending net assets
balance as of September 30,2009 of $2,398,274,491. Collier County's investment in capital assets such
as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding
debt related to the construction or purchase of the asset, amounts to 74% of net assets. Capital assets
are used to provide services to the citizens and consequently do not represent spendable resources.
Collier County's net assets also include restricted net assets of $271,473,714 and unrestricted net assets
of $341,863,646. Restricted net assets are resources subject to external restriction on how they may be
used while unrestricted net assets may be used to meet the County's ongoing obligations.
Following are Collier County's net assets and changes in net assets for the fiscal years ended September
30, 2008 and 2009, shown in condensed form:
Collier County's 5chedule of Net Assets
(in millions)
Total
Governmental Business-type Percentage
Activities Activities Total Change
2009 2008 2009 2008 2009 2008 2008-2009
Current and other assets $ 536.4 $ 653.2 $ 200.0 $ 177.5 $ 736.4 $ 830.7 (11.4%)
Capital assets, net 1,644.7 1,537.8 914.2 915.5 2,558.9 2,453.3 4.3%
Total assets 2,181.1 2,191.0 1,114.2 1,093.0 3,295.3 3,284.0 0.3%
Longwterm liabilities 510.0 537.3 252.8 255.7 762.8 793.0 (3.8%)
Current liabilities 106.8 127.1 27.4 34.5 134.2 161.6 (17.0%)
Total liabilities 616.8 664.4 280.2 290.2 897.0 954.6 (6.0%)
Net assets:
I nvested in capital assets,
net of related debt 1,131.6 1,031.7 653.3 658.9 1,784.9 1,690.6 5.6%
Restricted 240.2 295.0 31.3 30.2 271.5 325.2 (16.5%)
Unrestricted 192.5 199.9 149.4 113.7 341.9 313.6 9.0%
Total net assets $1,564.3 $1,526.6 $ 834.0 $ 802.8 $2,398.3 $2,329.4 3.0%
Note: Certain fiscal year 2008 balances are restated in a manner consistent with the restatement discussed in
Note 18 on page 72.
6
Collier County's Schedule of Changes in Net Assets
(in millions)
Total
Governmental Business-type Percentage
Activities Activities Total Change
2009 2008 2009 2008 2009 2008 2008-2009
Revenues
Program revenues:
Charges for services $ 58.8 $ 68.9 $156.7 $157.3 $ 215.5 $ 226.2 (3.3%)
Operating grants and contributions 22.0 20.2 3.3 4.4 25.3 24.6 2.8%
Capital grants and contributions 24.9 52.3 18.2 23.3 43.1 75.6 (43.0%)
General revenues:
Property taxes 313.3 327.2 313.3 327.2 (4.2%)
Other taxes and shared revenues 77.9 76.7 77.9 76.7 1.6%
I nterest income 11.5 34.5 2.4 5.9 13.9 40.4 (65.6%)
Change in fair value of investments (0.3) (0.8) (02) (0.2) (0.5) (1.0) (50.0%)
Miscellaneous 12.0 10.6 0.6 0.1 12.6 10.7 17.8%
Total revenues 520.1 589.6 181.0 190.8 701.1 780.4 (10.2%)
Expenses
General government 114.0 112.7 114.0 112.7 1.2%
Public safety 182.9 183.3 182.9 183.3 (0.2%)
Physical environment 21.3 22.1 21.3 22.1 (3.6%)
Transportation 64.6 66.0 64.6 66.0 (2.1%)
Economic environment 12.1 13.5 12.1 13.5 (10.4%)
Human services 12.0 13.5 12.0 13.5 (9.6%)
Culture and recreation 45.7 43.4 45.7 43.4 4.8%
I nterest on long-term debt 20.5 21.5 20.5 21.5 (4.7%)
Water and sewer 90.0 85.5 90.0 85.5 5.3%
Solid waste 30.8 30.0 30.8 30.0 2.7%
Airport authority 3.9 5.1 3.9 5.1 (23.5%)
Emergency medical services 28.7 30.1 28.7 30.1 (4.7%)
Mass transit 9.0 9.4 9.0 9.4 (4.3%)
Total expenses 473.1 476.0 162.4 160.1 635.5 636.1 (0.1%)
Increase in net assets before
net transfers and special item 47.0 113.6 18.6 30.7 65.6 144.3 (54.5%)
Special item - registry bond 3.3 (3.3) 3.3 (3.3)
Transfers, net (12.6) (28.3) 12.6 28.3
Change in net assets 37.7 82.0 31.2 59.0 68.9 141.0 (51.1%)
Net assets - beginning, as restated 1,526.6 1,444.6 802.8 743.8 2,329.4 2,188.4 6.4%
Net assets - ending $1,564.3 $1,526.6 $834.0 $802.8 $2,398.3 $2,329.4 3.0%
Note: Certain fiscal year 2008 balances are restated in a manner consistent with the restatement discussed in
Note 18 on page 72.
7
Governmental Activities
The current year increase for net assets of governmental activities amounted to $37,709,841, an
increase of 3% over the previous year's net assets. The previous fiscal years' increase was 6% and this
trend is the result of an overall decline in governmental activities revenues. The total ad valorem tax
collections for fiscal year 2009 were down $13,954,493, or 4%, mainly due to a 4% decrease in taxable
assessed value. The general fund millage rate remained unchanged from fiscal year 2008. Governmental
impact fees are collected to offset the cost of growth necessitated capital improvements and are
reported as capital contributions in the governmental activities. During fiscal year 2009 the County
collected governmental activity impact fees for transportation, parks, libraries, emergency medical
services, correctional facilities, law enforcement, governmental facilities and fire totaling $17,761,229.
This represents a decrease in total governmental activity impact fee collections compared to fiscal year
2008 of 52%, and is further evidence of the widespread slow down in the construction and real estate
industries. Sales tax revenues decreased by 11% versus fiscal year 2008, and this decrease reflects a
general decline in the state's economy. In addition, gas tax revenues decreased by 2% versus fiscal year
2008. Market interest rates declined during fiscal year 2009, when compared to fiscal 2008, and
investable balances decreased as debt proceeds and residual impact fees were spent for capital
improvements. These factors combined for a substantial decrease in interest revenue versus fiscal year
2008. Of the eight categories that comprise governmental expenses, six experienced declines due
mainly to reductions in operating costs. Total general governmental activities expenses increased 1%
over fiscal 2008 due mainly to nonoperating depreciation expense on general government capital assets
put into service. Culture and recreation expenses increased by 5% over fiscal year 2008 due to a 9%
increase in depreciation expense related to projects placed in service during fiscal 2009. Governmental
activities interest expense was $20,491,509 for fiscal year 2009, which represents a decrease of 5%, net
of amortizations.
Business-type Activities
Increases in net assets related to business-type activities amounted to $31,177,810 in the aggregate,
representing a 4% increase over the previous year's net assets. The majority of the increase, or
$30,977,127, can be attributed to the Collier County Water and Sewer District. Water and wastewater
operating revenues increased $4,847,392, or 5%, over the previous fiscal year, while costs of operations,
excluding depreciation, were essentially flat with no change from fiscal year 2008. Operating revenues
increased primarily due to a rate increase of 3.5% that went into effect on October 1, 2008. This
increase was partially offset by decreased usage caused by continued water restrictions and
conservation measures. Depreciation expense increased by 16% over fiscal year 2008 as over $136M in
capital facilities were added and improved during fiscal year 2008 and for fiscal year 2009 a further
$105M was added. Fiscal year 2009 water and wastewater impact fee collections dropped to
$6,320,015, or a decrease of 35% versus fiscal 2008. This was the primary reason for a 20% decrease in
capital grants and contributions, which includes impact fees. The County Water and Sewer District
charges water and wastewater impact fees on new construction in order to finance growth necessitated
capital expansion. In addition, solid waste charges for services decreased by 10% from fiscal year 2008
while operating costs, including depreciation, increased by 2% over the same period. The decrease in
solid waste charges for services can be mainly attributed to a 24% decrease in total commercial,
residential and construction related tonnage being accepted into the landfills during FY-2009. These
factors contributed to a minimal increase in solid waste net assets year on year of $1,771,097.
8
Fund Financial Statement Analysis
As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related
legal requirements.
Governmental Funds
Governmental funds provide information on near term inflows, outflows and balances of spendable
resources. Unreserved fund balance is a useful measure of net resources available to be spent at the
end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Debt
Service Funds and Capital Project Funds.
As of September 30, 2009 Collier County governmental funds reported combined fund balances of
$410,216,176, a decrease of $92,720,302 when compared to prior year combined fund balances.
Governmental funds reserved $64,676,912 of fund balance for encumbrances in the next fiscal year,
$15,376,572 for inventory, deposits and prepaid items, $4,976,678 for debt service and $29,922,975 for
advances made to other funds. The remainder of fund balance is considered unreserved and available
for discretionary spending.
The following were noteworthy activities and changes relating to the major governmental funds for
fiscal year 2009:
The General Fund is the main operating fund of Collier County. At September 30, 2009, total fund
balance in the general fund was $47,886,135, of which $38,923,751 was unreserved. As a percentage of
total general fund expenditures and net transfers, the unreserved portion is 12%. The total fund
balance decreased by $20,669,285 or 30%, compared to the September 30, 2008 total fund balance.
The decrease is primarily due to decreased ad valorem and sales tax collections and decreased interest
revenue.
The Road Impact Districts Fund is used to account for the receipt and expenditure of road impact fees.
Road impact fees of $13,086,883 were collected during fiscal year 2009, to be used for growth related
transportation capital improvements. This represents a decrease in total road impact fee collections
versus fiscal year 2008 of 55%, which is consistent with the slowdown in both the real estate and
construction industries. Capital expenditures of road impact fees decreased by 68% for fiscal year 2009
when compared to fiscal year 2008. The major projects completed and capitalized during fiscal year
2009 were Immokalee Road from Interstate 75 to Collier Boulevard and Rattlesnake Hammock Road
from Polly Avenue to Collier Boulevard in the combined amount of $33,806,641. Major ongoing
construction related to Santa Barbara Boulevard in the combined amount of amount of $47,959,565 was
in process as of September 30, 2009. These activities resulted in a decrease in fund balance of
$7,137,793 for the Road Impact Districts Fund.
The Road Construction Fund accounts for the accumulation of gas taxes and General Fund transfers for
the construction of roads and payment of transportation related debt service. Capital expenditures in
the Road Construction Fund decreased by 44% when compared to fiscal year 2008. Major projects
completed and capitalized during fiscal year 2009 included portions of the Immokalee Interstate 75
Loop, Vanderbilt Beach Road from Airport Road to Interstate 75 right of way purchase and Collier
Boulevard from Golden Gate Boulevard to Immokalee Road in the combined total of $66,431,491.
Major ongoing projects include Immokalee Road from Collier Boulevard to Wilson Boulevard,
9
Immokalee Road from US 41 to Interstate 75 and Santa Barbara Boulevard from Golden Gate Parkway to
Radio Road right of way purchase. The total amount of construction in progress for these projects was
$70,079,159 as of September 30, 2009. The combination of these activities resulted in a decrease in
fund balance of $17,466,225 for the Road Construction Fund.
The Community Redevelopment Fund accounts for the receipt and expenditure of tax increment
revenues for the Bayshore/Gateway Triangle and Immokalee Redevelopment Authorities. During fiscal
year 2009 the Bayshore/Gateway Triangle borrowed $13,500,000 for purposes of refinancing
$5,901,000 in existing debt and the purchase of $6,738,572 of land targeted for redevelopment within
the Triangle.
Proprietary funds
Proprietary fund statements provide the same information as the business-type activities in the
government-wide financial statements, but in greater detail, and on a fund basis for enterprise funds.
At September 30,2009, total net assets amounted to $833,968,648 for enterprise funds, as compared to
$802,790,838 as of September 30, 2008. Net assets change as a result of operations, non-operating
revenues and expenses, capital contributions and grants and donations. The Collier County Water and
Sewer District's activity represents the vast majority of the increase in net assets.
For the year ended September 30, 2009 the Water and Sewer District reported capital grants and
contributions of $17,029,766, which includes system development fees of $6,320,015, $10,053,839 in
developer infrastructure contributions and capital grants for other governmental agencies of $655,912.
County Water and Sewer
Non-major enterprise funds
Total
Net Operating Income/(Loss)
2009
$23,137,977
(20,622,049)
$ 2,515,928
2008
$ 22,828,461
(17,801,466)
$ 5,026,995
The Collier County Water and Sewer Fund net operating income increased by $309,516. The increase in
net operating income was the result of an increase in operating revenues of $4,847,392, or 5%, over the
previous fiscal year, while costs of operations, including depreciation, were up 6% overall. The primary
reason for this increase was the addition of $241M in capital assets over the last two fiscal years and the
attendant depreciation. County Water and Sewer payments in lieu of taxes paid to the General Fund of
$3,289,600 were reclassified from operating expense to operating transfers for financial statement
purposes. Personal services expenses decreased by 4%, when compared to fiscal year 2008, as the
majority of employees lost to attrition were not replaced. Operating expenses increased by 4% due
mainly to the increased cost of chemicals used in the treatment of water and wastewater.
Capital Assets
Collier County's financial statements present capital assets in two distinct groups, those that are
depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that
are depreciated and land and construction in progress are examples of assets not depreciated. Collier
County's investment in capital assets for the governmental and business-type activities amounted to
10
$2,558,828,372, net of accumulated depreciation. This investment in capital assets, both purchased and
donated, includes land, buildings and improvements, water and wastewater plants, machinery and
equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for
the current fiscal year, net of depreciation, increased by $116,055,4S6 over the previous year. There
was an increase in the governmental activities of $117,386,468, or 8%. The proprietary fund capital
assets decreased by $1,331,012, as amounts depreciated exceeded amounts capitalized. The major
factors behind these changes are as follows:
Water and sewer, solid waste disposal and airport authority construction in progress increases
amounted to $21,371,001. Of this amount, $18,941,944 was related to water and wastewater
facilities and improvements constructed by the County Water and 5ewer District.
Capitalization as construction in progress of $98,294,309 of governmental activity related costs,
with $51,011,908 of this amount related to transportation projects and $26,460,148 related to
government facilities, including a new fleet facility and a courthouse annex. In addition,
$11,920,229 of water management costs were capitalized as well as $8,902,024 of parks and
recreation and other projects.
Purchases of land and non-depreciable assets were $53,783,550 for fiscal year 2009.
Additional information regarding Collier County's capital assets can be found in Note S beginning on
page 50 of this report.
Debt Administration
At September 30, 2009, Collier County had net bonded revenue debt of $546,096,948 outstanding, a
decrease of $21,655,601 from the previous year. The following table illustrates the balances of all
outstanding long-term debt for the fiscal years ended 5eptember 30,2009 and 2008:
Outstanding Debt
Limited General Obligation Bonds, net
Revenue Bonds, net
Florida Local Government Loans
State Revolving Fund Loans
Line of Credit and Miscellaneous Notes
Total
2009
$ 37,700,223
546,096,948
66,047,000
116,906,373
13,571,675
$ 780,322,219
2008
$ 29,099,538
567,752,549
85, S60,000
115,830,489
5,973,707
$ 804,216,283
During fiscal year 2009 Collier County prepaid a total of $19,698,000 in debt. Of this amount,
$19,513,000 was related to the Florida Local Government pooled commercial paper program and
$185,000 was related to the Naples Park Area Storm water Special Assessment Bond. The prepayments
under the commercial paper pool included the final payoff of the Caribbean Gardens loan that had been
secured by the pledge of up to a .15 mil ad valorem tax levy.
On November 21, 2008 Collier County issued the $13,244,204 Series 2008 Conservation Collier Limited
General Obligation Bonds. The bonds were issued for the purpose of partially funding the purchase of
approximately 2,511.9 acres of environmentally sensitive land known generally as Pepper Ranch.
11
During fiscal year 2009, cumulative downgrades in the rating of bond insurers FGIC, MBIA and AMBAC
obligated Collier County to fund a cash reserve in the amount of $19,570,777. The funds were advanced
to the governmental activities from monies available in the business-type activities.
The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt
limit. Further information regarding Collier County's long-term debt can be found in Note 6 beginning
on page 51 of this report.
Budgetary Highlights
Budgetary comparison statements are provided in the basic financial statements for the General Fund
and the Community Redevelopment Fund (CRA). Budget columns are presented for both the original
budget and the final budget. These columns are followed by a column for actual revenues and
expenditures and a column for differences between final budget and actual revenues and expenditures.
Significant period revenue and expenditure budget increases and decreases, over $250,000 within a
department, were made and are outlined in the following table:
Bee De partme nt!
Age ncy
Other General Admin.
OtherGeneral Admin.
Other General Admin.
Sheriff's Agency
Tax Collector's Agency
Natural Resources
Other General Admin.
Other General Admin.
Other General Admin.
Sheriff's Agency
Mental Health
BCC Transfers Out
CRA
CRA
CRA Transfers Out
Budget
Increase!(Decrease)
$ (5,612,200)
(2,334,500)
(825,900)
1,770,000
(943,523)
1,052,259
295,000
560,850
483,773
(686,772)
450,000
4,135,414
6,340,575
7,554,575
1,214,000
Reason for Increase!(Decrease)
Decrease in anticipated Ad Valorem Tax receipts.
Oecrease in anticipated sales tax receipts.
Decrease in anticipated state shared revenues receipts.
Increase in charges for services - special detail duties.
Decrease in operating expenditures to actual.
Rebudget of lapsed appropriation.
Increase to cover increased unemployment claims.
Increase to cover outer year audit expenses.
Increase to cover increased juvenile justice allocation.
Decrease in operating expenditures.
Increase contribution to Collier mental health program.
Additional General Fund transfers to other funds.
Increase Bayshore Gateway land purchases.
Financed Bayshore Gateway land purchases.
Increase transfers to CRA debt service fund.
Significant variances between actual results and final budget amounts in the General Fund occurred
during fiscal year 2009. Tax revenues were under budget by $6,917,924 primarily due to the early
payment discount allowed for property taxes. The discount ranges from a maximum 4% to 1%,
depending on the date of payment. Interest income was under budget as interest revenues budgeted
within the Clerk of the Circuit Court's General Fund, were also budgeted in the Board of County
Commissioners' General Fund. General Fund general government expenditures were under budget
primarily due to $2,907,549 in unspent budget related to a watershed study that will be ongoing until
2010, with the majority of the work still to be completed. Also contributing to the budget to actual
surplus in the general government function was the Clerk of the Circuit Court's General Fund functions
and the Board's Other General and Administrative function. The Clerk of the Circuit Court's personal
services expenditures were under budget by $585,317, primarily due to staff reductions. The Board's
Other General and Administrative function was under budget by a combined $540,537 primarily due to
12
operating costs being less than anticipated. Sheriffs public safety expenditures were a combined
$3,897,909 less than anticipated for fiscal year 2009. Human services related expenditures were a
combined $1,974,675 under budget due mainly to unspent client assistance budget of $990,447.
Economic Factors and Year 2010 Budgets and Rates
The following factors were taken into account in preparing the fiscal year 2010 budget:
The population of Collier County increased by .1% from fiscal year 2008 to fiscal year 2009.
Further declines in the taxable assessed value of property.
A total number of building permits issued during FY-2009 of 18,219, which represented an 11%
decrease from the 20,580 issued in FY-2008.
A fiscal year 2009 annual unemployment rate in Collier County, without seasonal adjustment, of
10%.
Expected continued decreases in sales tax revenues and gas tax revenues.
The focus of the Collier County Capital Improvement Program in FY-2010 is the completion of
the transportation network, public service and health, safety and welfare related projects
initiated over the past two years.
During fiscal year 2009, the General Fund unreserved fund balance decreased by $23,029,184 to
$38,923,751. As of January 20, 2010, $33,217,700 of the fiscal year 2009 unreserved fund balance has
been appropriated as carryforward for fiscal year 2010.
Other Discussion
The Clerk of Courts is currently involved in litigation with the County. In Case #2D07-4S49; L.T. #04-941-
CA the Second District Court of Appeals (DCA) of the State of Florida issued its opinion on September 23,
2009 reaffirming that the Clerk of Courts is accountant, auditor and custodian of all county funds and is
entitled to audit the county for purposes of determining legality of payment. The DCA has since denied
two additional motions filed by Collier County in response to the DCA opinion; one to rehear the case
and the other to certify the case to the Florida Supreme Court. Both motions were denied by the DCA.
The DCA reaffirmed its rulings to uphold the Clerk's right to audit. The Board of County Commissioners
has indicated that it will continue pursuing this issue, seeking discretionary review by the Florida
Supreme Court. On November 24, 2009 the County filed a notice to invoke discretionary jurisdiction of
the Florida Supreme Court and a motion for stay of issuance of mandate in Case #2D07-4S49; L.T. Case
#04-941-CA.
Contact Information
This financial report is intended to give the user a general overview of Collier County Government's
finances. Any questions resulting from review of this information may be addressed to:
Collier County Clerk of the Circuit Court
Department of Finance and Accounting
3301 East Tamiami Trail, Building F - 4th Floor
Naples, Florida 34112
Our office may also be contacted via the internet at www.colliercJerk.com.
13
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
Primary Government
Governmental Business-type
Activities Activities
Total
Component
Units
ASSETS
Current assets:
Cash, cash equivalents and investments $ 239,422,846 $ 110,174,805 $ 349,597,651 $ 486,147
Trade receivables, net 1,400,770 10,016,290 11,417,060
Contributions receivable 11,100,000 11,100,000
Special assessments receivable 89,119 662,119 751,238
Interest receivable 301,823 322,282 624,105
Unbilled receivables 5,087,788 5,087,788
Notes receivable 105,531 105,531
Due from other governments 9,402,639 1,454,575 10,857,214
Internal balances (28,293,836) 28,293,836
Deposits 560,957 2,301 563,258
Inventory 16,075,327 2,933,175 19,008,502
Prepaid costs 101,776 58,837 160,613
Restricted assets:
Cash, cash equivalents and investments 18,585,335 4,037,436 22,622,771
Trade receivables, net 2,542,699 2,542,699
Interest receivable 337,093 337,093
Due from other governments 2,415,815 2,415,815
Total current assets 274,147,894 163,043,444 437,191,338 486,147
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments 243,709,872 32,899,646 276,609,518
Notes receivable 10,372,393 10,372,393
Special assessments receivable 243,943 553,568 797,511
Notes receivable 3,100,188 2,020,322 5,120,510
Deferred charges 4,898,165 1,529,244 6,427,409
Capital assets:
land and nondepreciable capital assets 617,203,838 87,663,997 704,867,835
Depreciable capital assetsj net 1,027,447,752 826,512,785 1,853,960,537
Total noncurrent assets 1,906,976,151 951,179,562 2,858,155,713
Total assets 2,181,124,045 1,114,223,006 3,295,347,051 486,147
The notes to the financial statements are an integral part of this statement.
14
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
Primary Government
Governmental Business-type Component
Activities Activities Total Units
LIABILITIES
Current liabilities:
Accounts payable $ 22,715,044 $ 6,737,236 $ 29,452,280 $
Wages payable 6,312,947 1,826,299 8,139,246
Retainage payable 1,209,933 309,466 1,519,399
Due to other governments 2,147,543 31,912 2,179,455
Due to individuals 371,232 377,455 748,687
Arbitrage rebate 52,260 52,260
Self-insurance claims payable 5,574,384 5,574,384
Compensated absences 10,263,532 1,953,411 12,216,943
Capital lease obligations 153,672 131,926 285,598
Unearned revenue 4,823,561 4,823,561
Interest payable 8,268,503 2,783,994 11,052,497
Bonds and loans payable 26,846,427 11,734,146 38,580,573
Liabilities payable from restricted assets:
Accounts payable 8,417,016 283,465 8,700,481
Wages payable 223,188 223,188
Retainage payable 8,589,820 524,966 9,114,786
Refundable deposits 915,538 265,564 1,181,102
Notes payable 71,675 71,675
Unearned revenue 364,287 364,287
Total current liabilities 106,884,600 27,395,802 134,280,402
Noncurrent liabilities:
Arbitrage rebate 262,925 993,889 1,256,814
Self-insurance claims payable 3,754,616 3,754,616
Compensated absences 11,522,095 488,352 12,010,447
Capital lease obligations 445,198 359,814 805,012
Landfill post-closure liability 1,913,827 1,913,827
Net OPEB obligation 1,381,471 1,381,471
Bonds and loans payable, net 492,567,297 249,102,674 741,669,971
Total noncurrent liabilities 509,933,602 252,858,556 762,792,158
Total liabilities 616,818,202 280,254,358 897,072,560
NET ASSETS
Invested in capital assets, net of related debt 1,131,617,181 653,319,950 1,784,937,131
Restricted for:
Growth related capital expansion 112,233,808 16,708,672 128,942,480
Transportation capital projects 80,353,062 80,353,062
Conservation Collier 16,434,540 16,434,540
Tourist development 26,248,780 26,248,780
Debt service 4,976,678 14,218,174 19,194,852
Renewal and replacement 300,000 300,000
Unrestricted 192,441,794 149,421,852 341,863,646 486,147
Total net assets $1,564,305,843 $ 833,968,648 $ 2,398,274,491 $ 486,147
15
COLLIER COUNTY, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
FUNCTIONS/PROGRAMS
Primary Government:
Governmental Activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Interest on long-term debt
Total governmental activities
Business-type Activities:
Water and Sewer
Solid Waste
Airport Authority
Mass Transit
Emergency Medical Services
Total business-type activities
Total primary government $
Component Units:
Industrial Development Authority $
Health Facilities Authority
Housing Finance Authority
Educational Facilities Authority
Total component units $
$
Program
Fees, Fines and Operating
Charges for Grants and
Expenses Services Contributions
113,906,311 $ 32,257,456 $ 797,170
182,962,153 11,940,469 3,742,230
21,227,115 821,717 812,132
64,601,041 3,101,341 3,743,119
12,125,259 283,480 10,224,104
12,013,659 513,599 2,446,573
45,727,465 9,830,038 182,283
20,491,509
473,054,S12 58,748,100 21,947,611
90,041,762 104,926,649 58,516
30,773,997 32,922,299 89,214
3,894,793 2,353,326 10,000
8,974,589 1,100,812 2,732,686
28,644,892 15,280,542 344,712
162,330,033 156,583,628 3,235,128
635,384,545 $ 215,331,728 $ 25,182,739
146 $ $
410
15,931
16,487 $ $
General revenues:
Property taxes
Gas taxes
Sales taxes
Tau rist taxes
Other taxes
State revenue sharing
Interest income
Change in fair value of investments
Miscellaneous
Special item - registry bond (See Note 19)
Transfers, net
Total general revenues and transfers
Change in net assets
Net assets - beginning, as previously reported
Prior period adjustment
Net assets - beginning, as restated
Net assets - ending
The notes to the financial statements are an integral part of this statement.
16
Revenues
Net (Expense) Revenue and Changes in Net Assets
Capital
Grants and
Contributions
Primary Government
Governmental Business-type
Activities Activities
Total
Component
Units
$ 3,066,962 $ (77,784,723) $ $ (77,784,723)
1,877,072 (165,402,382) (165,402,382)
2,373,279 (17,219,987) (17,219,987)
13,657,991 (44,098,590) (44,098,590)
193,355 (1,424,320) (1,424,320)
27,668 (9,025,819) (9,025,819)
3,670,508 (32,044,636) (32,044,636)
(20,491,509) (20,491,509)
24,866,835 (367,491,966) (367,491,966)
17,029,766 31,973,169 31,973,169
2,237,516 2,237,516
841,548 (689,919) (689,919)
259,697 (4,881,394) (4,881,394)
16,146 (13,003,492) (13,003,492)
18,147,157 15,635,880 15,635,880
$ 43,013,992 (367,491,966) 15,635,880 (351,856,086)
$ $ (146)
(410)
(15,931)
$ (16,487)
313,290,445 313,290,445
18,455,964 18,455,964
26,778,873 26,778,873
12,345,057 12,345,057
12,240,634 12,240,634
7,927,456 7,927,456
11,487,682 2,409,636 13,897,318 934
(33,198) (14,986) (48,184)
12,065,985 551,189 12,617,174
3,239,000 3,239,000
(12,596,091) 12,596,091
405,201,807 15,541,930 420,743,737 934
37,709,841 31,177,810 68,887,651 (15,553)
1,516,043,884 802,790,838 2,318,834,722 501,700
10,552,118 10,552,118
1,526,596,002 802,790,838 2,329,386,840 501,700
$ 1,564,305,843 $ 833,968,648 $ 2,398,274,491 $ 486,147
17
COLLIER COUNTY, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Road Other Total
General Impact Road Community Governmental Governmental
Fund Districts Construction Redevelopment Funds Funds
ASSETS
Cash, cash equivalents and investments $ 52,640,157 $74,874,073 $ 83,706,304 $ 6,207,596 $ 238,077,033 $ 455,505,163
Receivables:
Interest 46,064 106,170 118,611 12,695 292,377 575,917
Trade, net 653,216 27,783 1,936,562 1,285,498 3,903,059
Notes 1,612,479 6,823,749 5,141,884 13,578,112
Special assessments 333,062 333,062
Due from other funds 3,672,793 3,496 974 1,167,954 4,845,217
Due from other governments 2,414,477 119,903 1,832,58S 7,413,124 11,780,089
Deposits 3,500 3,500
Inventory 128,881 13,662,211 1,749,095 15,540,187
Advances to other funds 7,045,275 22,877,700 29,922,975
Prepaid costs 100,091 1,685 101,776
Total assets $ 68,316,933 $81,955,174 $ 87,595,036 $ 19,882,502 $ 278,339,412 $ 536,089,057
LIABILITIES ANO FUND BALANCES
liabilities:
Accounts payable $ 12,286,848 $ 3,022,703 $ 3,41S,840 $ 300,002 $ 11,516,58S $ 30,541,978
Wages payable 4,338,999 124,452 29,20S 1,912,549 6,405,20S
Due to other funds 1,100,583 73 30 3,401,456 4,502,142
Due to other governments 1,274,637 872,906 2,147,543
Due to individuals 20l,59S 169,637 371,232
Deferred revenue 340,870 6,823,749 9,912,228 17,076,847
Refundable deposits 887,266 28,272 915,538
Retainage payable 4,004,880 3,700,708 2,094,165 9,799,753
Advances from other funds 54,112,643 54,112,643
Total liabilities 20,430,798 13,851,405 7,241,030 329,207 84,020,441 125,872,881
Fund balances:
Reserved for:
Encumbrances 1,684,637 13,240,075 19,732,670 142,632 29,876,898 64,676,912
Deposits 3,500 3,500
Inventory 128,881 13,662,211 1,480,204 15.271,296
Advances to other funds 7,045,275 22,877,700 29,922,975
Prepaid costs 100,091 1,685 101.776
Debt service 4,976,678 4,976,678
Unreserved, reported in:
General fund 38,923,7S1 38,923,751
Special revenue funds S,748,452 108,459,725 114,208,177
Debt service funds 1,586,837 1,S86,837
Capital project funds 54,863,694 60,621,336 25,059,244 140,544,274
Total fund balances 47,886,135 68,103,769 80,3S4,006 19,5S3,295 194,318,971 410,216,176
Total liabilities and fund balances $ 68,316,933 $81,9S5,174 $ 87,S95,036 $ 19,882,502 $ 278,339,412 $ 536,089,057
The notes to the financial statements are an integral part of this statement.
18
COLLIER COUNTY, FLORIDA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Differences in amounts reported for governmental activities in the statement of net assets on
pages 14~15:
Fund balances. total governmental funds
Capital assets used in governmental activities are not financial resources and therefore are
not reported in the funds. Those assets consist of:
Land and other non-depreciable assets
Construction in progress
Depreciable assets, net of $449,450,433 in accumulated
depreciation.
Certain accounts receivable are not financial resources and therefore are not reported in the
governmental funds.
Certain long.term assets are not financial resources and therefore are not reported in the
governmental funds.
Certain revenues will be collected after year-end, but are not available to pay for the current
period's expenditures, and therefore are reported as deferred revenue in the funds.
Certain liabilities applicable to the County's governmental activities are not due and payable
in the current period and accordingly are not reported as fund liabilities. Interest on long~
term debt is not accrued in the governmental funds, but is recognized as an expenditure
when due. Allliabllities are reported in the statement of net assets. Balances at September
30, 2009 are:
Accrued interest on bonds
Bonds and notes payable
Capital lease obligations
Compensated absences
Arbitrage rebate liability
Unamortized deferred loss
Unamortized premium
Unamortized discount
Internal service funds are used by the County to charge self4insurance and fleet management
services to individual funds. The assets and liabilities of the internal service funds are
included in governmental activities in the statement of net assets. Internal service fund net
assets are:
Total net assets. governmental activities
The notes to the financial statements are an integral part of this statement.
19
$ 366,860,067
250,343,771
1,013,562,929
$ (8,268,503)
(504,248,827)
(598,870)
(21,563,849)
(315,185)
282,659
(15,981,953)
S34,397
$ 410,216,176
1,630,766,767
11,100,000
4,898,165
12,253,286
(550,160,131)
45,231,580
$ 1,564,30S,843
COLLIER COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Road Other Total
General Impact Road Community Governmental Governmental
Fund Districts Construction Redevelopment Funds Funds
Revenues:
Taxes $ 236,676,S76 $ $ 12,8S5.662 $ 2.910,600 $ 96,337,167 $ 348.780,00S
Licenses and permits 191.832 13.086.883 12,670,996 2S,949,711
Intergovernmental 38,005,SS2 6,S09,387 2S.368,368 69,883.307
Charges for services 20,459,S14 13.000 2,061,381 10.64S 13,383,349 3S,927.889
Fines and forfeitures 84S,8S7 5,070,44S 5,916,302
Interest income 8.2S7,31S 26S.344 2S3,608 14S,046 2,382,140 11,303,4S3
Change in fair value
of investments (7,203) (7,SS8) (9,102) (663) (22,20S) 146,731}
Special assessments 2,8S2,S07 2,8S2,S07
Miscellaneous 1,725,757 54,497 608,653 S,S4S 8,948,82S 11,343,277
Total revenues 306,lSS,2oo 13,412,166 22,279,S89 3,071,173 166,991,S92 Sl1,909,720
Expenditures:
Current:
General government 64,619,342 31,070,032 9S,689.374
Public safety 146,162,243 22,430,173 168,S92,416
Physical environment 793,477 9,814,887 10,608,364
Transportation 474,704 6,OSS,270 34,641,178 41,171,152
Economic environment 763,181 1,791,693 9,S69,S70 12,124,444
Human services 8,69S,982 2,S80.63S 11,276,617
Culture and recreation lS,813,91S 21,397,679 37,211,594
Debt service:
Principal 1,9S7,377 46,127,670 48,08S,047
Interest 82,623 21,415,714 21,498,337
Fiscal charges 115,818 115,818
Capital outlay S,882,976 20,07S,25S 38,691,132 112,031,482 176,680,845
Total expenditures 242,731,116 20,S49,959 46,786,402 1,791,693 311,194,838 623.054,008
Excess (deficiency) of revenues
over (under) expenditures 63,424,084 (7,137,793) (24,506,813) 1,279,480 (144,203,246) (111,144,288)
Other financing sources (uses):
Bonds issued 13,244,204 13,244.204
loans issued 7,554,575 5.945,42S 13,SOO,OOO
Sale of capital assets 269,407 31,360 300.767
Insurance proceeds 381,33S 371,394 752.729
Transfers in 8,416,699 23,441,888 111,416,S60 143,275,147
Transfers out (96,399,810) (16,401,300) (1,699,179) (41,387,S72) 11S5,887,861}
Total other financing sources (uses) (87,332,369) 7,040,S88 S,8SS,396 89,621,371 lS,184,986
Special item - registry bond (See Note 19) 3,239,000 3,239,000
Net change in fund balances (20.669,28S) (7,137,793) 117,466,225) 7,134.876 (S4,S81,87S) (92,720,302)
Fund balances at beginning of year,
as previously stated 68,5SS,420 75,241,562 97,820.231 5,494,780 248,900.846 496.012,839
Prior period adjustment 6,923,639 6,923,639
Fund balances at beginning of year, as restated 68,S5S,420 75,241,562 97,820,231 12,418,419 248,900,846 S02,936,478
Fund balances at end of year $ 47,886.13S $ 68,103,769 $ 80,3S4,006 $ 19,5S3.29S $ 194.318,971 $ 410,216,176
The notes to the financial statements are an integral part of this statement.
20
COLLIER COUNTY, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Differences in amounts reported for governmental activities in the statement of activities on
pages 16-17:
Net change in fund balances - total governmental funds
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.
Capital outlay
Depreciation expense
Donations of capital assets are not financial resources to governmental funds, but receiving
donated assets increases net assets in the statement of net assets.
Capital assets transferred to and from proprietary funds are not recorded in the governmental
funds as there is no flow of current financial resources.
In the statement of activities, the loss on the sale of capital assets is reported. However, in
the governmental funds the proceeds from the sale of capital assets increase financial
resources. The change in net assets differs from the change in fund balance by the net book
value of assets disposed.
Expenses related to the write off of developer contributions receivable are not reported as
expenditures in the governmental funds.
Revenues that are not available are deferred in the governmental funds but are included in the
statement of activities. Deferred revenues decreased by this amount this year.
Debt proceeds provide current financial resources to governmental funds, but issuing debt
increases long-term liabilities in the statement of net assets.
Repayment of principal on long-term debt is an expenditure in governmental funds, but a
reduction of long-term liabilities in the statement of net assets.
Bond and loan principal payments $
Payments on capital lease obligations
Certain amounts reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in the governmental funds.
Increase in compensated absences
Accrued interest on bonds
Amortization of deferred charges, net
Amortization of deferred loss
Amortization of premium
Amortization of discount
Decrease in arbitrage rebate liability
The net expenses of internal service funds are reported with governmental activities.
Change in net assets - governmental activities
The notes to the financial statements are an integral part of this statement.
21
$ 176,680,845
165,391,894)
47,931,377
153,670
$
1592,182)
15,579)
(237,192)
(94,220)
1,125,408
(28,338)
362,567
$ (92,720,302)
111,288,951
1,832,287
20,132
(2,798,777)
1562,814)
(1,075,772)
126,744,204)
48,085,047
$
530,464
(145,171)
37,709,841
COLLIER COUNTY, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Variance with
Final Budget
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenues:
Taxes $ 249,206,700 $ 243,594,500 $ 236,676,576 $ (6,917,924)
Licenses and permits 161,000 161,000 191,832 30,832
Intergovernmental 39,807,100 36,701,417 38,005,552 1,304,135
Charges for services 22,974,680 24,721,955 20,459,514 (4,262,441)
Fines and forfeitures 522,100 522,100 845,857 323,757
Interest income 28,244,300 28,244,300 8,257,315 (19,986,985)
Miscellaneous 10,224,500 10,324,396 11,455,864 1,131,468
Total revenues 351,140,380 344,269,668 315,892,510 (28,377,158)
Expenditures:
Current:
General government
Board of County Commissioners personal services 1,053,300 951,077 952,932 (1,855)
Board of County Commissioners operating 67,800 54,900 39,656 15,244
County manager administrative personal services 941,900 954,350 943,094 11,256
County manager administrative operating 30,800 27,400 20,019 7,381
Budget and management personal services 807,100 902,123 896,245 5,878
Budget and management operating 78,000 51,400 34,230 17,170
Budget and management capital outlay 2,500
Administrative services personal services 5,433,600 5,532,508 5,511,622 20,886
Administrative services operating 2,709,900 2,377,749 2,306,146 71,603
Administrative services capital outlay 8,200 170,583 92,877 77,706
Human resources administration personal services 1,462,700 1,482,327 1,475,464 6,863
Human resources administration operating 349,100 247,949 180,780 67,169
Clerk of the Circuit Court personal services 6,778,600 6,778,600 6,193,283 585,317
Clerk of the Circuit Court operating 2,978,900 2,395,539 2,129,484 266,055
Clerk of the Circuit Court capital outlay 92,700 632,700 575,187 57,513
Property Appraiser personal services 5,190,526 5,190,526 4,858,456 332,070
Property Appraiser operating 1,549,729 1,542,630 1,580,240 (37,610)
Property Appraiser capital outlay 50,000 50,000 125,905 (75,905)
Tax Collector personal services 9,886,501 9,390,413 9,390,413
Tax Collector operating 3,639,349 3,372,883 3,342,481 30,402
Tax Collector capital outlay 59,078 68,600 68,600
County attorney personal services 3,021,300 2,878,201 2,783,625 94,576
County attorney operating 346,500 361,317 264,287 97,030
County attorney capital outlay 21,500 21,500 21,295 205
Natural resource planning personal services 228,500 232,500 232,728 (228)
Natural resource planning operating 2,792,600 3,840,859 933,310 2,907,549
Circuit court costs operating 48,300 41,300 20,400 20,900
Circuit court costs capital outlay 1,000
22
Courthouse security operating 1,100,600 1,110,600 1,095,709 14,891
Courthouse security capital outlay 70,500 70,500 56,955 13,545
County court cost operating 28,700 22,600 8,442 14,158
State Attorney operating 504,600 304,685 290,702 13,983
State Attorney capital outlay 26,900
Public Defender operating 212,800 157,200 148,286 8,914
Public Defender capital outlay 3,000
Other general administrative personal services 121,000 381,090 339,684 41,406
Other general administrative operating 7,306,500 8,167,043 7,667,912 499,131
Facilities management personal services 3,513,800 3,482,778 3,497,307 (14,529)
Facilities management operating 9,362,800 9,238,263 9,114,620 123,643
Facilities management capital outlay 180,000 168,000 165,707 2,293
Sheriff personal services 3,760,800 3,760,800 3,800,024 (39,224)
Sheriff operating 144,600 144,600 126,638 17,962
Supervisor of Elections personal services 1,801,900 1,978,253 1,885,267 92,986
Supervisor of Elections operating 1,432,200 1,140,222 1,085,485 54,737
Supervisor of Elections capital outlay 52,500 127,537 114,869 12,668
Real property management personal services 818,000 865,924 865,852 72
Real property management operating 39,400 25,400 22,819 2,581
Total general government 80,110,583 80,69S,429 75,259,037 5,436,392
Public safety
Sheriff personal services 121,389,200 121,208,600 119,496,653 1,711,947
Sheriff operating 27,459,800 27,229,828 23,117,849 4,111,979
Sheriff capital outlay 2,130,000 1,853,800 3,779,817 (1,926,017)
Emergency management administration personal services 825,000 878,363 863,126 15,237
Emergency management administration operating 282,500 290,745 175,931 114,814
Helicopter operations personal services 741,800 737,520 667,858 69,662
Helicopter operations operating 785,400 747,409 739,420 7,989
Helicopter operations capital outlay 10,100 10,041 59
Medical examiner services operating 1,119,100 1,109,773 1,101,406 8,367
Total public safety 154,732,800 154,066,138 149,952,101 4,114,037
Physical environment
Conservation and resource management personal services 755,500 721,565 669,523 52,042
Conservation and resource management operating 163,600 160,600 104,507 56,093
Conservation and resource management capital outlay 5,192 5,192
Immokalee cemetery operating 25,900 20,900 19,447 1,453
Total physical environment 945,000 908,257 793,477 114,780
Economic environment
Veterans services personal services 271,500 274,868 275,000 (132)
Veterans services operating 76,200 49,356 21,514 27,842
Veterans services capital outlay 23,360 23,360
Impact fee assistance operating 307,500 307,500 307,500
Housing and urban improvement operating 720,300 720,300 466,667 253,633
Total economic environment 1,375,500 1,375,384 786,541 588,843
Human services
Health Care Responsibility Act operating 50,000 50,000 50,000
Domestic animal services personal services 1,969,000 1,849,34S 1,818,249 31,096
Domestic animal services operating 941,700 910,551 607,543 303,008
Domestic animal services capital outlay 31,600 S5,568 32,816 22,752
Health department operating 1,749,800 1,749,800 1,404,835 344,965
23
Health department capital outlay 23,500 23,500 23,444 56
Mental health operating 899,300 1,349,300 1,124,475 224,825
Client assistance personal services 586,800 517,038 494,647 22,391
Client assistance operating 4,047,800 3,885,973 2,917,917 968,056
Public services division office personal services 318,600 322,542 320,547 1,995
Public services division office operating 21,800 13,300 7,769 5,531
Total human services 10,639,900 10,726,917 8,752,242 1,974,675
Culture and recreation
Library administration personal services 5,673,800 5,487,740 5,125,303 362,437
Library administration operating 1,297,900 1,263,916 1,233,034 30,882
Library administration capital outlay 818,700 818,700 766,621 52,079
Extension services personal services 136,500 95,666 87,970 7,696
Extension services operating 11,900 11,900 11,039 861
Extension services capital outlay 1,000 1,000 1,000
Beach and water park operation personal services 4,973,400 4,886,091 4,736,901 149,190
Beach and water park operation operating 5,345,800 5,186,666 4,619,668 566,998
Beach and water park operation capital outlay 33,500 24,637 24,482 155
Total culture and recreation 18,292,500 17,776,316 16,606,018 1,170,298
Total expenditures 266,096,283 265,548,441 252,149,416 13,399,025
Excess of revenues over expenditures 85,044,097 78,721,227 63,743,094 (14,978,133)
Other financing sources (uses):
Insurance proceeds 1,830 381,335 379,505
Transfers in 1,869,900 1,708,773 8,416,699 6,707,926
Transfers out (98,142,597) (102,278,011) (99,719,667) 2,558,344
Total other financing sources {uses} (96,272,697) (100,567,408) (90,921,633) 9,645,775
Special item - registry bond 3,239,000 3,239,000
Net change in fund balance (11,228,600) (21,846,181) (23,939,539) (2,093,358)
Fund balance at beginning of year 45,470,300 57,344,608 57,344,608
Fund balance at end of year S 34,241,700 S 35,498,427 S 33,405,069 S (2,093,358)
Reconciliation:
Net change in fund balance, budgetary basis S (23,939,539)
Bad debt expense (42,400)
Net change in fair value of investments (7,203)
Advances budgeted as transfers 3,319,857
Net change in fund balance, GAAP basis S (20,669,285)
The notes to the financial statements are an integral part of this statement.
24
COLLIER COUNTY, FLORIDA
COMMUNITY REDEVELOPMENT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Variance with
Final Budget
Original Final Favorable
Budget Budget Actual (Unfavorable)
Revenues:
Taxes $ 2,910,600 $ 2,910,600 $ 2,910,600 $
Charges for services 10,645 10,645
Interest income 14,500 14,500 145,046 130,546
Miscellaneous 5,545 5,545
Total revenues 2,925,100 2,925,100 3,071,836 146,736
Expenditures:
Current:
Economic environment
Bayshore/Gateway personal services 398,400 398,400 390,019 8,381
Bayshore/Gatewayoperating 1,055,300 1,055,689 529,117 526,572
Bayshore/Gateway capital outlay 2,625,000 8,965,575 6,738,572 2,227,003
Immokalee redevelopment personal services 250,600 280,600 272,587 8,013
Immokalee redevelopment operating 688,000 1,002,831 599,970 402,861
Immokalee redevelopment capital 200,000 150,000 150,000
Total expenditures 5,217,300 11,853,095 8,530,265 3,322,830
Excess (deficiency) of revenues over
(under) expenditures (2,292,200) (8,927,995) (5,458,429) 3,469,566
Other financing uses:
loans issued 7,554,575 7,554,575
Transfers out (500,000) (1,714,000) (1,699,179) 14,821
Total other financing uses (500,000) 5,840,575 5,855,396 14,821
Net change in fund balance (2,792,200) (3,087,420) 396,967 3,484,387
Fund balance at beginning of year 5,224,300 5,354,020 5,354,020
Fund balance at end of year $ 2,432,100 $ 2,266,600 $ 5,750,987 $ 3,484,387
Reconciliation:
Excess of revenues over expenditures, budgetary basis $ 396,967
land purchased for resale 6,738,572
Net change in fair value of investments (663)
Net change in fund balance, GAAP basis $ 7,134,876
The notes to the financial statements are an integral part of this statement.
25
COLLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2009
Business~type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
ASSETS
Current assets:
Cash, cash equivalents and investments S 87,173,810 S 23,000,995 S 110,174,805 S 46,212,890
Receivables:
Trade, net 6,074,618 3,941,672 10,016,290 40,410
Special assessments 662,119 662,119
Interest 198,215 124,067 322,282 62,999
Unbilled revenue 4,664,465 423,323 5,087,788
Due from other funds 33,947 46,289 80,236 13,789
Due from other governments 333,261 1,121,314 1,454,575 38,365
Deposits 2,301 2,301 557,457
Inventory 2,809,637 123,538 2,933,175 535,140
Prepaid costs 26,754 32,083 58,837
Restricted assets:
Cash, cash equivalents and investments 3,403,949 633,487 4,037,436
Total current assets 105,383,076 29,446,768 134,829,844 47,461,050
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments 32,899,646 32,899,646
Receivables:
Special assessments 553,568 553,568
Advances 18,550,000 5,639,668 24,189,668
Notes 2,020,322 2,020,322
Deferred charges 1,529,244 1,529,244
Capital assets:
land and nondepreciable capital assets 67,626,870 20,037,127 87,663,997
Depreciable capital assets, net 796,263,765 30,249,020 826,512,785 13,884,823
Total noncurrent assets 919,443,415 55,925,815 975,369,230 13,884,823
Total assets 1,024,826,491 85,372,583 1,110,199,074 61,345,873
(Continued)
26
COlLIER COUNTY, FLORIDA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2009
Business-type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal SeNice
and Sewer Funds Total Funds
LIABILITIES
Current liabilities:
Accounts payable S 3,624,222 S 3,113,014 S 6,737,236 S 590,082
Wages payable 944,117 882,182 1,826,299 130,930
Retainage payable 309,466 309,466
Due to other funds 311 426,463 426,774 10,326
Due to other governments 297 31,615 31,912
Due to individuals 377,455 377,455
Self-insurance claims payable 5,574,384
Compensated absences 1,145,706 807,705 1,953,411 177,421
Capital lease obligations 131,926 131,926
Interest payable 2,783,994 2,783,994
Bonds and loans payable 11,734,146 11,734,146
liabilities payable from restricted assets:
Accounts payable 283,465 283,465
Retainage payable 456,519 68,447 524,966
Refundable deposits 64,811 200,753 265,564
Notes payable 71,675 71,675
Unearned revenue 364,287 364,287
Total current liabilities 21,418,729 6,403,847 27,822,576 6,483,143
Noncurrent liabilities:
Arbitrage rebate 993,889 993,889
Self-insurance claims payable 3,754,616
Compensated absences 286,427 201,925 488,352 44,357
Capital lease obligations 359,814 359,814
Net QPEB obligation 1,381,471
landfill post-closure liability 1,913,827 1,913,827
Bonds and loans payable, net 249,102,674 249,102,674
Total noncurrent liabilities 250,382,990 2,475,566 252,858,556 5,180,444
Total liabilities 271,801,719 8,879,413 280,681,132 11,663,587
NET ASSETS
Invested in capital assets, net of related debt 603,525,543 49,794,407 653,319,950 13,884,823
Restricted for growth related capital expansion 16,708,672 16,708,672
Restricted for renewal and replacement 300,000 300,000
Restricted for debt service 14,218,174 14,218,174
Unrestricted 118,272,383 26,698,763 144,971,146 35,797,463
Total net assets S 753,024,772 S 76,493,170 829,517,942 S 49,682,286
Cumulative consolidation adjustment for internal service fund
activities related to enterprise funds. 4,450,706
Net assets of Business-type Activities S 833,968,648
The notes to the financial statements are an integral part of this statement.
27
COLLIER COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Business-type Activities Enterprise Funds Governmental
Activities -
County Water Other Internal Service
and Sewer Funds Total Funds
Operating revenues:
Charges for services $ 103,189,801 $ 51,863,064 $155,052,865 $ 61,372,696
Insurance proceeds 1,691,111
Miscellaneous 1,349,431 179,491 1,528,922 124,938
Total operating revenues 104,539,232 52,042,555 156,581,787 63,188,745
Operating expenses:
Personal services 22,573,636 21,463,016 44,036,652 3,057,665
Operating 27,192,647 48,000,093 75,192,740 60,065,667
Depreciation and amortization 31,634,972 3,201,495 34,836,467 581,246
Total operating expenses 81,401,255 72,664,604 154,065,859 63,704,578
Operating income (loss) 23,137,977 (20,622,049) 2,515,928 (515,833)
Non-operating revenues (expenses):
Operating grants and contributions 57,466 3,177,662 3,235,128
Interest income 2,186,776 222,860 2,409,636 184,229
Insurance reimbursement 343,421 207,768 551,189 201
Change in fair value of investments (12,063) (2,923) (14,986) 13,533
Rebatable arbitrage 511,691 511,691
Interest expense (8,316,846) (25,195) (8,342,041)
Gain (loss) on disposal of capital assets (320,242) 58,046 (262,196) 6,421
Total non-operating revenues (expenses) (5,549,797) 3,638,218 (1,911,579) 204,384
Income (loss) before contributions and transfers 17,588,180 (16,983,831) 604,349 (311,449)
Capital grants and contributions 17,029,766 1,117,391 18,147,157
Transfers in 177,594 16,926,706 17,104,300 14,239
Transfers out (3,818,413) (689,796) (4,508,209) (17,748)
Change in net assets 30,977,127 370,470 31,347,597 (314,958)
Net assets - beginning 722,047,645 76,122,700 49,997,244
Net assets - ending S 753,024,772 S 76,493,170 S 49,682,286
Consolidation adjustment for internal service fund
activities related to enterprise funds. (169,787)
Change in net assets of Business-type Activities S 31,177,810
The notes to the financial statements are an integral part of this statement.
28
COLLIER COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Business-type Activities Enterprise Funds Governmental
Activities.
County Other Internal Service
Water and Sewer Funds Total Funds
Cash flows from operating activities:
Cash received for services $ 103,849,138 $ 47,847,535 $151,696,673 $
Cash received from other funds for services 56,220,442
Cash received from employees for services 4,822,494
Cash received from insurance 2,053,880
Cash received from other governments for services 271 271 93,314
Cash received from refundable deposits 54,916 1,110,547 1,165,463
Cash received from retirees for services 1,191,029
Cash payments on behalf of retirees (1,088,796)
Cash payments for goods and services (26,865,934) (40,885,579) (67,751,513) (60,288,409)
Cash payments to employees (22,349,200) (21,288,673) (43,637,873) (3,023,509)
Cash payments on refundable deposits (128,248) (1,210,917) (1,339,165)
Net cash provided by (used for)
operating activities 54,560,943 (14,427,087) 40,133,856 (19,555)
Cash flows from non.capital financing activities:
Cash received from operating grants 3,021,354 3,021,354
Cash transfers from other funds 178,127 19,826,060 20,004,187
Cash transfers to other funds (22,359,255) (8,821,693) (31,180,948)
Net cash provided by (used for) non-
capital financing activities (22,181,128) 14,025,721 (8,155,407)
Cash flows from capital and related
financing activities:
System development charges 7,569,927 7,569,927
Special assessment collections 614,026 614,026
Receipts from insurance reimbursements 343,421 207,768 551,189 201
Proceeds from disposal of capital assets S9,716 60,240 119,956 8,400
Proceeds from capital grants 653,419 813,758 1,467,177
Proceeds from state revolving loans 9,861,S46 9,861,546
Payments for capital acquisitions (24,646,707) (4,671,140) (29,317,847) (83,033)
Principal payments on state revolving loans (7,038,563) (7,038,563)
Principal payments on bonds (4,905,000) (4,905,000)
Principal payments on leases (126,145) (126,145)
Interest and fiscal agent fees paid (10,214,453) (25,195) (10,239,648)
Net cash used for capital and
related financing activities (27,702,668) (3,740,714) (31,443,382) (74,432)
Cash flows from investing activities:
Interest on investments 2,803,563 232,415 3,035,978 134,763
Net cash provided by investing activities 2,803,563 232,415 3,035,978 134,763
Net increase (decrease) in cash, cash equivalents and investments 7,480,710 (3,909,665) 3,571,045 40,776
Cash, cash equivalents and investments, October 1, 2008 115,996,695 27,544,147 143,540.842 46,172,114
Cash, cash equivalents and investments, September 30, 2009 $ 123,477,405 $ 23,634,482 $147,111,887 $ 46,212,890
Current cash, cash equivalents and investments $ 87,173,810 $ 23,000,995 $110,174,805 $ 46,212,890
Current cash, cash equivalents and investments - restricted 3,403,949 633,487 4,037,436
Noncurrent cash, cash equivalents and investments - restricted 32,899,646 32,899.646
Cash, cash equivalents and investments, September 30, 2009 $ 123,477,405 $ 23,634,482 $147,111,887 $ 46,212,890
(Continued)
29
COLLIER COUNTY, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Business-type Activities Enterprise Funds Governmental
Activities -
County Other Internal Service
Water and Sewer Funds Total Funds
Operating income (loss) $ 23,137,977 $(20,622,049) $ 2,515,928 $ (515,833)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation expense 31,033,811 3,201,495 34,235,306 581,246
Amortization of bond issuance costs 540,706 540,706
Amortization of utility acquisition adjustment 60,455 60,455
Net changes in assets and liabilities:
Trade receivable (392,158) 2,060,614 1,668,456 603,546
Due from other funds (28,178) (331,883) (360,061) 104,706
Due from other governments (214,453) (11,659) (226,112) 44,742
Deposits 10,993 10,993 (44,511)
Prepaid costs (26,754) 18,109 (8,645)
Inventory 638,607 46,536 685,143 (115,013)
Accounts payable (272,795) 700,837 428,042 (241,093)
Wages payable 68,491 69,596 138,087 15,793
Due to other funds (146) 384,339 384,193 10,071
Due to other governments (61,489) (38,140) (99,629) (64)
Due to individuals
Compensated absences 155,945 103,023 258,968 18,363
Refundable deposits (90,069) (100,370) (190,439)
Unearned revenue (6,202) (6,202)
Self-insurance claims payable (957,000)
Net OPES obligation 475,492
Landfill post closure liability 98,667 98,667
Total adjustments 31,422,966 6,194,962 37,617,928 496,278
Net cash provided by (used for) operating activities $ 54,560,943 $(14,427,087) $ 40,133,8S6 $ (19,555)
Non-cash investing, capital and financing activities:
The enterprise funds experienced a non-cash investing loss due to a change in the fair value of investments as follows:
County Water and Sewer $ (12,063)
Other funds (2,923)
Total $ (14,986)
There were non-cash captial asset transfers out of the County Water and Sewer fund as capital assets with a historical cost of $9,158 and
no accumulated depreciation were transferred out to governmental activities.
There were non-cash contributions of $259,697 in the non-major enterprise funds as assets with a historical cost of $288,552 were
purchased with cash of $28,855 and a State of Florida grant. There were non-cash capital asset transfers in of $55,049 in the non-major
enterprise funds as capital assets with a historical cost of $55,049 and no depreciation were transferred from governmental activities.
There were non~cash capital asset transfers out in the non-major enterprise funds as capital assets with a historical cost of $62,514 and no
depreciation were transferred to governmental activities.
The internal service funds experienced a net non-cash investing gain due to a change in the fair value of investments as follows:
Internal service funds $ 13,533
There were non-cash capital asset transfers of $14,239 in the internal service funds, as capital assets with a historical cost of $162,074 and
accumulated depreciation of $147,835 were transferred in from governmental activities. There were non-cash capital asset transfers out
of $17,748 in the internal service funds, as capital assets with a historical cost of $18,049 and accumulated depreciation of $301 were
transferred to governmental activities.
The notes to the financial statements are an integral part of this statement.
30
COLLIER COUNTY, FLORIDA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
SEPTEMBER 30, 2009
Agency
Funds
ASSETS
Cash, cash equivalents and investments $ 29,790,645
Receivables:
Interest 8,670
Other 37,039
Total assets $ 29,836,354
LIABILITIES
Due to other governments $ 6,663,651
Due to individuals 1,864,624
Refundable deposits 20,461,920
Due to special assessment holders 846,159
Total liabilities $ 29,836,354
The notes to the financial statements are an integral part of this statement.
31
THIS PAGE INTENTIONALLY LEFT BLANK
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
INDEX
NOTE
PAGE NUMBER
1 Summary of Significant Accounting Policies 34
2 Cash, Cash Equivalents and Investments 44
3 Trade Receivables 47
4 Interfund Payables and Receivables 48
5 Capital Assets 50
6 Long-Term Obligations 51
7 Conduit Debt Obligations 59
8 Defeased Debt 59
9 Pension Plan Obligations 60
10 Transfers 61
11 Net Assets/Fund Balances 62
12 Risk Management 63
13 Other Postemployment Benefits 65
14 Landfill Liability 70
15 Significant Contingencies 70
16 Significant Commitments 71
17 Fund Deficits 71
18 Restatement of Beginning Net Assets and Beginning Fund Balances 72
19 Special Item 72
20 Subsequent Event 72
33
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE REPORTING ENTITY
The primary government consists of Collier County, a political subdivision of the State of Florida that was
established in 1923 by the Florida State Legislature. The County is governed by a Board of County
Commissioners which consists of five members elected within single member districts. In addition, there
are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of
the Circuit Court and Supervisor of Elections. The Constitutional Officers are elected county wide. Under
the direction of the Clerk of the Circuit Court, the Collier County Finance and Accounting Department
maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of
Elections and the Clerk of the Circuit Court. The Tax Collector, Property Appraiser and Sheriff each
maintain their own accounting systems. For financial reporting purposes the operations of the Board of
County Commissioners and the Constitutional Officers are combined and presented as the primary
government.
Component units are legally separate agencies that the primary government is financially accountable for
or organizations which should be included in the reporting entity because of the nature and significance of
their relationship with the primary government. Financial accountability is determined by the primary
government's ability to appoint the voting majority of the entity's board, impose its will on the
organization, and the existence of a financial benefit/burden relationship or fiscal dependency.
The County's blended component units consist of organizations whose respective governing Boards are
composed entirely of the Board of County Commissioners serving ex-officio. These entities are legally
separate, however financial support has been pledged and financial or operational policies may be
significantly influenced by the County. In accordance with Governmental Accounting Standards Board
(GASB) Statement No. 14, The Financial Reparting Entity, as amended by GASB Statement No. 39,
Determining Whether Certain Organizations are Camponent Units, these organizations are reported as if
they were part of the County's operations.
Collier Countv Water and Sewer District
The District was established by Chapter 88-499, as amended by Chapter 03-353, Laws
of Florida, to provide water, sewer and effluent services to portions of the
unincorporated area of Collier County.
Goodland Water District
The District was established by a Special Referendum Election authorized by Collier
County Ordinance 75-5 and Section 125.01(q), Florida Statutes. The District provides
potable water service to the residents of Goodland.
Collier Countv Communitv Redevelopment Ai!encv (CRA)
The CRA was established by Resolution 2000-82 to benefit blighted areas in both the
Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment areas.
These two redevelopment areas are geographically separate and distinct.
34
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
The County's discretely presented component units consist of organizations whose board members are
appointed by the Board of County Commissioners. The County is able to impose its will on these entities
because of its ability to remove appointed members from the component units' Boards. The Authorities
maintain their own financial records, but do not issue separate financial statements. GASB Statement No.
14, The Financial Reporting Entity, as amended by GASB 39, requires that the financial data of the following
organizations be reported in separate columns to emphasize that they are legally separate from the
County.
Collier Countv Housing Finance Authoritv
The Authority was formed in 1980 by Collier County Ordinance 80-66 for the purpose of
stimulating the construction of residential housing for low and moderate income
families through the use of public financing. Their financial position and results of
operations are reported in the accompanying financial statements and the outstanding
conduit debt issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations".
Collier County Health Facilities Authoritv
The Authority was established in 1979 by Collier County Ordinance 79-75 for the
purpose of assisting health facilities in the acquisition, construction and financing of
projects within the County. Their financial position and results of operations are
reported in the accompanying financial statements and the outstanding conduit debt
issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations".
Collier Countv Industrial Development Authoritv
The Authority was created in 1978 by Collier County Resolution 78-94 to facilitate the
financing of projects that promote economic growth and increase opportunities for
employment in the County. Their financial position and results of operations are
reported in the accompanying financial statements and the outstanding conduit debt
issued by the Authority is disclosed in Note 7, "Conduit Debt Obligations".
Collier County Educational Facilities Authoritv
The Authority was created in 1999 by Collier County Resolution 99-177 to assist
institutions for higher education in the construction, financing and refinancing of
projects. Their financial position and results of operations are reported in the
accompanying financial statements and the outstanding conduit debt issued by the
Authority is disclosed in Note 7, "Conduit Debt Obligations".
Financial information on the individual component units can be obtained from their respective
administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court.
35
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
THE REPORTING ENTITY - CONTINUED
Administrative Offices:
Collier County Water and Sewer District and
Goodland Water District
3301 East Tamiami Trail
Naples, Florida 34112
Bayshore Gateway Community Redevelopment
Agency
2740 Bayshore Drive, Unit 17
Naples, Florida 34112
Immokalee Community Redevelopment Agency
3301 East Tamiami Trail
Naples, Florida 34112
Collier County Health Facilities Authority and
Housing Finance Authority
5811 Pelican Boulevard, Suite 210
Naples, Florida 34108
Collier County Industrial Development Authority
and
Educational Facilities Authority
3050 N. Horseshoe Drive, Suite 120
Naples, Florida 34104
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS
The basic financial statements are made up of the government wide financial statements and fund
financial statements. Both of these sets of financial statements distinguish between the governmental
and business type activities of Collier County. The government wide financial statements consist of a
Statement of Net Assets and a Statement of Activities. These statements report on the financial
condition of Collier County, at the reporting entity level. Internal balances represent net amounts due
between the governmental and business-type activities. As a general rule, the effect of interfund
activity has been eliminated from the government wide financial statements. Fiduciary funds are not
included in these presentations as their assets do not represent amounts that are available for Collier
County government operations. The Statement of Net Assets reports all financial and capital resources
of Collier County's governmental and business-type activities. Net assets equal assets minus liabilities,
and is shown in three categories: invested in capital assets, net of related debt; restricted net assets
and unrestricted net assets. The Statement of Activities reports results of operations on a functional
activity (program) basis and demonstrates to what degree the particular program has been self-
supporting.
Program revenues are reported in the following three categories: charges for services, operating grants
and contributions and capital grants and contributions. Charges for services are amounts charged to
customers for a particular service, and are netted against the cost of the relevant program. Internal
charges for indirect services are allocated across functions as direct expenses. Grants and contributions
refer to revenues restricted for capital or operational use in a particular program. The general revenue
category encompasses all other revenue types and represents revenue collected to support all functions of
Collier County government.
36
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS - CONTINUED
When both restricted and unrestricted resources are available, restricted resources will be used first for
incurred expenditures, and unrestricted as needed.
The fund financial statements follow the government wide statements and report more detailed
information about operations of major funds on an individual basis and non major funds on an aggregate
basis for the governmental and proprietary funds. Following the governmental fund balance sheet and
statement of revenues, expenditures and changes in fund balances is a reconciliation explaining the
differences between the governmental fund presentation and the government wide presentation.
BASIS OF PRESENTATION
The following are reported as major governmental funds:
General Fund - the General fund is the general operating fund of the County. All general tax revenues and
other receipts that are not accounted for in other funds are accounted for in the General Fund. The
general operating funds of the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of
Elections and Tax Collector are presented together with the Board of County Commissioners' general
operating fund in the County's consolidated General Fund.
Road Impact Districts Fund - the Road Impact Districts Capital Project fund is used to account for the
receipt and expenditure of road impact fees collected from qualifying new construction. The impact fees
must be used for the acquisition and construction of transportation related facilities by district.
Road Construction Fund - the Road Construction Capital Project fund is used to account for the receipt and
expenditure of gas taxes and bond proceeds. Projects include, but are not limited to, right-of-way
acquisition, design and construction of various transportation improvements.
Community Redevelopment Fund - the Community Redevelopment Fund is used to account for the
receipt and expenditure of tax increment revenues relating to the BayshorejGateway Triangle and
Immokalee Community Redevelopment Authorities.
The following is reported as a major enterprise fund:
County Water and Sewer Fund - the County Water and Sewer fund is used to account for the provision of
water, wastewater and effluent services to certain portions of the County's unincorporated area.
Collier County also maintains the following non major fund types:
Special Revenue Funds - Special revenue funds are used to account for the accumulation of resources
set aside for a specific purpose.
Debt Service Funds - Debt service funds are used to account for the accumulation of resources for the
payment of principal, interest and other expenditures on long-term obligations, other than bonds and
notes payable from the operations of business-type activities.
37
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BASIS OF PRESENTATION - CONTINUED
Caoital Proiect Funds - Capital project funds are used to account for the acquisition and construction of
major capital facilities other than those financed by proprietary funds.
Enterorise Funds - Enterprise funds are used to account for activities for which a fee is charged to
external users for goods or services.
Internal Service Funds - Internal service funds are used to account for the provision of goods and
services by one department to another department within the County or to other governmental units
on a cost reimbursement basis.
Agency Funds - Agency funds are custodial in nature and do not report the results of operations (assets
equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for
individuals, private organizations or other governments. The Board of County Commissioners, Sheriff,
Clerk of the Circuit Court and Tax Collector all maintain agency funds.
BASIS OF ACCOUNTING AND MEASUREMENT FOCUS
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts
and reported in the financial statements. Basis of accounting relates to the timing of the measurements
made regardless of the measurement focus applied.
The government wide financial statements, as well as the fund financial statements for the proprietary
funds, are reported using the economic resources measurement focus and the accrual basis of accounting.
Revenues are recognized in the period in which they are earned and expenses are recognized in the
period incurred. Grant revenues are recognized when eligibility requirements are met. The intent in
proprietary operations is that the costs of providing goods or services to the general public be financed
primarily through user charges, or where periodic determination of revenues earned, expenses incurred,
and/or net income is deemed appropriate.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. Operating expenses for enterprise
funds and internal service funds include the cost of sales and services, administrative expenses and
depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
All governmental fund financial statements are reported using a current financial resources measurement
focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenues are recognized in the period in which they become both measurable and available to finance
expenditures of the current period. Available means collectible within the current period or soon enough
thereafter, generally 60 days, to be used to pay liabilities of the current period. Primary revenues including
non-grant intergovernmental revenues, charges for services and interest are treated as susceptible to
38
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
accrual under the modified accrual basis. In applying the susceptibility-to-accrual concept to grant
revenues, the legal and contractual requirements of the numerous individual programs are used as
guidance. In addition, grant revenues are considered available if they are expected to be collected within
one year of the end of the current fiscal period.
Property taxes are discussed later in this footnote. Other revenue sources are not considered measurable
and available and are not treated as susceptible to accrual. Expenditures are recorded when the related
fund liability is incurred. Exceptions to this general rule include accrued compensated absences and
principal and interest on long-term debt.
BUDGETS AND BUDGETARY DATA
The following are the statutory procedures followed by the Board of County Commissioners in establishing
the budgets for the County:
1) Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the
County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal
year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances
to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes.
2) Within eighty days of the certification of value, but not earlier than sixty-five days after certification,
the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing
the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and
announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds
the rolled-back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer
within the jurisdiction is notified of the increase by first class mail, at the expense of the Board.
3) Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's
intent to adopt a final budget and millage rate.
4) A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is
held not less than two days and not more than five days after the day that the advertisement is first
published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate
adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by
emergency provision with strict public notice requirements. This is followed by the approval and
ratification of the final budget.
S) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector
and Florida Department of Revenue, not later than thirty days following the adoption of the
Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem
Tax, that it has complied with the provisions of Chapter 200, Florida Statutes.
6) The County Manager approves intradepartmental budget changes less than $50,000 that do not
alter the total expenditures of the department. All other budgetary changes must be approved by the
Board of County Commissioners as a matter of policy. The initial adopted budget was amended in
accordance with the Florida Statutes.
39
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
7) Florida Statute Section 129.07, as amended in 1978, provides that expenditures in excess of total
fund budgets are unlawful. However, because the Board approves all budgetary changes between
departments, except those approved by the County Manager, the departmental budget becomes the
level of control.
Formal budgetary integration is employed as a management control device during the fiscal year for all
funds. Budgets have been legally adopted by the Board for all Board funds except for agency funds and the
Impact Fees Escrow special revenue fund. The Property Appraiser and the Tax Collector adopt budgets for
their general funds independently of the Board. The Clerk of Courts is a fee officer, and as such, prepares
his budget in accordance with Section 218.35, Florida Statutes.
The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to
and approved by the Board. The Clerk of Court's budget for court related functions is prepared according
to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval
by the Florida Department of Revenue.
Budgets are adopted for all governmental funds except as described in the previous paragraph. These
budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except
for certain non-budgeted revenues and expenses and mark to market activity on investments. All
unencumbered appropriations lapse at the end of the current year. Capital project costs are budgeted
in the year they are anticipated to be obligated. In subsequent years, the unused budget is
reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent
with generally accepted accounting principles, except that capital related and debt transactions are
based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the
budgetary process.
For purposes of the budgetary presentation, certain transactions that have been accounted for in the
governmental funds statements of revenues, expenditures and changes in fund balances have not been
reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in
fair value of investments are not presented in the budget to actual statements.
CASH, CASH EQUIVALENTS AND INVESTMENTS
The County maintains a cash and investment pool that is available for use by all funds. The Clerk of the
Circuit Court administers the investment pool pursuant to an investment policy established by the Board
of County Commissioners under Florida Statute, Section 218. Subsequent to the amendment of Florida
Statute 28.33, interest is allocated monthly to each fund based on the individual fund's average daily
balance in the pool. Pursuant to the provisions of GASB Statement 31, Accounting and Financial Reporting
for Certain Investments and for External tnvestment Pools, all investments are stated at fair value. Cash
equivalents are short-term investments with maturities of three months or less from the date purchased.
ACCOUNTS RECEIVABLE - UNBILLED REVENUE
Unbilled charges for services are accrued in the County Water and Sewer, Emergency Medical Services and
Goodland Water funds by prorating subsequent bills.
40
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVENTORIES AND PREPAID COSTS
Inventory is valued at cost using the first-in, first-out method. Inventory in the governmental funds
consists of supplies held for consumption and land. The cost is recorded as an expenditure at the time
inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs
applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs
reported within governmental funds are offset by a reserve, which indicates that they do not constitute
available resources. Inventories and prepaid costs in the government wide and proprietary fund financial
statements are reported as an expense when consumed.
CAPITAL ASSETS
Land, buildings, improvements and equipment are stated at cost. Capital contributions are recorded at
their fair value on the date donated. Facilities constructed using system development impact fees,
collected from developers and customers, are stated at cost.
The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one
year. Expenditures for maintenance and repairs are charged to operating expenses. The cost of assets
retired or sold, together with the related accumulated depreciation, is removed from the accounts and any
gain or loss on disposition is credited or charged to earnings.
Depreciation is calculated using the straight-line method. The estimated useful life of the various classes
of depreciable capital assets is as follows:
Fixed Asset
Estimated Useful Life
20-4S years
3-30 years
4-45 years
3-10 years
Buildings
Infrastructure
Improvements other than buildings
Machinery and equipment
For constructed assets including buildings, infrastructure and improvements other than buildings a half
year convention is used in placing these assets into service. Costs incurred in the renourishment of
beaches are included in the infrastructure class of capital assets and are capitalized and depreciated over
three years. Infrastructure acquired prior to fiscal years ended after June 30, 1980 is not reported.
CAPITAL LEASE OBLIGATIONS
In the government-wide financial statements and proprietary fund financial statements capital lease
obligations and the related cost of assets acquired are reflected in the Statement of Net Assets. For capital
lease obligations originating in governmental funds, an expenditure for the asset and the offsetting
amount of the financing source is reflected in the fund financial statements in the year of inception.
41
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
BOND PREMIUMS. DISCOUNTS AND ISSUANCE COSTS
Bond premiums, discounts and issuance costs for the governmental activities and the business-type
activities are deferred and amortized over the term of the bonds using the straight-line method. Bond
discounts are presented as a reduction of the face amount of bonds payable, premiums as an increase,
while issuance costs are recorded as deferred charges, which are shown on the face of the Statement of
Net Assets as a component of noncurrent assets. In the governmental fund financials, bond premiums,
discounts and issuance costs are recognized in the current period.
DEFEASANCE OF DEBT
For refundings resulting in the defeasance of debt, generally accepted accounting principles require that
the difference between the reacquisition price and the net carrying amount of the old debt be deferred
and amortized over the shorter of the life of the new debt or the remaining life of the old debt as a
component of interest expense. The straight-line method is used for amortization of the deferred charge.
INTEREST COST
In the proprietary funds interest costs are capitalized in accordance with the provisions of Financial
Accounting Standards Board (FASB) Statement No. 34, Capitalization af Interest Cost, and FASB Statement
No. 62, Capitalization af Interest Cast in Situatians Involving Certain Tax-Exempt Borrowings and Certain
Gifts and Gronts, when applicable.
PROPERTY TAXES
Property taxes become due and payable on November 1st of each year and become delinquent on April
1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible
property taxes are not included in the financial statements, as delinquent taxes as of September 30,
2009 are not significant. Discounts on property taxes are allowed for payments made prior to the April
1st delinquent date as follows: November - 4%, December - 3%, January - 2%, and February - 1%. Tax
certificates for the full amount of any unpaid taxes must be sold not later than June 1st of each year.
No accrual for the property tax levy becoming due in November 2009 is included in the accompanying
financial statements, since such taxes are collected to finance expenditures of the subsequent period.
Key dates in the property tax cycle for the fiscal year ended September 30, 2009 are as follows:
Property Tax Cycle
Assessment roll compiled
Assessment roll certified
Millage resolution approved
Beginning of fiscal year for tax levy
Taxes due and payable (levy date)
Due date
Delinquent (lien date)
Tax certificates sold
Date
January 1, 2008
July 1, 2008
Within 35 days of the certification of the assessment roll
October 1, 2008
November 1, 2008
March 31, 2009
April 1, 2009
Prior to June 1, 2009
42
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
APPLICATION OF FASB PRONOUNCEMENTS TO PROPRIETARY FUNDS
In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and
Other Governmental Entities That Use Proprietary Fund Accounting, the County has elected not to apply
those FASB Statements and Interpretations issued after November 30, 1989.
ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results may differ from
those estimated.
IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS
Effective October 1, 2008 the County adopted the provisions of GASB Statement No. 49, Accounting and
Financial Reporting for Pollution Remediation Obligations. The effect of this adoption was to establish
uniform reporting standards for pollution remediation obligations. The standard defines a pollution
remediation obligation as an obligation to address the current or potential detrimental effects of
existing pollution by participating in poliution remediation activities. In two instances land was
purchased by Collier County and monies were withheld from the seller and escrowed as part of the
purchase for site remediation. The total amount escrowed for these land purchases was $300,000, and
per engineering reports, this amount exceeded the cost of remediation. The adoption of this statement
did not have a material impact on the County's financial position or results of operations.
UNEARNED REVENUE AND DEFERRED REVENUE
In instances where assets have been received by the County for services to be rendered in future periods,
asset balances are offset by an unearned revenue liability account in the financial statements. Examples of
unearned revenues of the County as of September 30, 2009 are unspent State Housing Initiative
Partnership (SHIP) monies and cash receipts associated with unspent advance grant agreements.
Deferred revenue liabilities are reported in the governmental funds to offset receivables that do not meet
the availability criterion under the modified accrual basis of accounting. Primary examples of the County's
deferred revenues are amounts associated with SHIP loans made to qualifying organizations and deferred
impact fee agreements made with developers and individuals.
ACCRUED COMPENSATED ABSENCES
The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This
statement provides for the measurement of accrued vacation leave and other compensated absences
using the payor salary rates in effect at the balance sheet date. It also requires additional amounts to be
accrued for certain salary related payments associated with the payment of compensated absences.
43
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
It is the Board of County Commissioners' policy to allow employees of record on August 2, 1996 a sick
leave payment upon termination for any service period earned prior to August 2, 1996 and 100% of
allowable vacation hours at the current rate of pay. The Sheriffs policy allows for a percentage of unused
sick leave payout based upon years of service, not to exceed 1,000 hours, and up to 400 hours of unused
vacation time. Both the Clerk of the Circuit Court's and Tax Collector's policy's allow for a percentage of
unused sick leave payout based upon years of service, and up to 240 hours of unused vacation hours. The
Property Appraiser's policy allows for a percentage of unused sick leave payout based upon years of
service, not to exceed 1,040 hours, and up to 240 hours of unused vacation hours. The Supervisor of
Election's policy allows for a percentage of unused sick leave payout based upon years of service, and up
to 440 hours of unused vacation.
Payments for compensated absences are made by the respective fund. Accrued compensated absences
are recorded as liabilities in the government-wide financial statements and the proprietary fund financials.
A liability is reported in governmental funds only if they have matured, for example, as a result of
employee resignations or retirements, and are considered due and payable as of yearend.
NOTE 2 - CASH. CASH EQUIVALENTS AND INVESTMENTS
As of September 30,2009, the County had the following cash, cash equivalents and investments:
Investment Maturities Fair Value Call Date Call Frequency Rating
Cash on hand N/A $ 89,277 N/A N/A N/A
Demand deposits N/A 195,965,729 N/A N/A N/A
State Board of Administration Pool:
Pool A N/A 704,367 N/A N/A AMm
PoolB N/A 26,313 N/A N/A N/A
Federal Home loan Bank 5/20/2010 50,015,500 11/20/2009 one-time AAA
Federal Home Loan Bank 6/1/2010 50,031,500 none N/A AAA
Federal National Mortgage Assoc, 8/12/2010 51,187,500 none N/A AAA
Federal Home Loan Bank 9/22/2010 25,015,750 3/22/2010 one-time AM
Federal Home loan Mortgage Corp. 9/22/2010 13,854,497 none N/A AM
Federal Home loan Bank 9/30/2010 50,094,000 none N/A AAA
Federal Home loan Bank 1/13/2011 39,062,106 10/13/2009 one-time AAA
Federal Home Loan Bank 2/18/2011 25,070,250 2/18/2010 one-time AAA
Federal Home Loan Bank 7/27/2011 72,849,191 1/27/2010 one-time AAA
Federal Home Loan Bank 8/10/2011 29,521,856 11/10/2009 continuous AM
Federal National Mortgage Assoc. 8/17/2011 50,078,000 11/17/2009 continuous AM
Federal Home loan Bank 2/3/2012 25,054,750 2/3/2010 one-time AAA
Total $ 678,620,585
The County maintains a cash and investment pool that is available for use by all funds. Each fund's portion
of this pool is displayed on the balance sheet under the heading of Cash, Cash Equivalents and
Investments. Pursuant to the amendment of Florida Statute 28.33, effective July 1, 2009, investment
income is allocated monthly to participating funds based on the percentage of each fund's average daily
balance in the total pool.
44
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 2 - CASH. CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
CREDIT RISK
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
The County's investment practices are governed by Florida Statutes, Chapter 218 and the County's
Investment Policy.
The County's Investment Policy limits credit risk by restricting authorized investments to the Florida Local
Government Surplus Trust Fund (SBA), direct obligations of, or obligations backed by the full faith and
credit of the United States Government, U.s. government sponsored Corporation/Instrumentalities
(except for Student Loan Marketing Association), certificates of deposit collateralized by u.s. Government
Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or
Agencies, domestic bankers' acceptances rated "AA" or higher, prime commercial paper rated "A-l" and
"P-l", tax-exempt obligations rated "AA" or higher and issued by state or local governments, NOW
accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase
agreements.
The policy requires that each firm involved in a repurchase agreement must execute the County's master
repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a
term of more than one day and the market value of the collateral shall maintain a minimum price of 101
percent on U.s. Government securities and 104 percent on Agencies and Instrumentalities with a term
over five (S) years, and must be marked to market at least weekly. The SBA is an investment pool
administered by the State Board of Administration, under the regulatory oversight of the State of Florida.
The SBA operates two pools, Fund A (LGIP) and Fund B, with Fund B carrying a AAAm rating from Standard
& Poor's. At September 30, 2009, the Sheriff had $730,680 invested in the State Board of
Administration's Local Government Surplus Funds Trust Fund Investment Pool. Of this amount,
$704,367 is invested in the LGIP and $26,313 in the Fund B Surplus Funds Trust Fund. The LGIP
investment is fully liquid and carries a weighted average days to maturity of 31.S days. Fund B is
accounted for as a fluctuating net asset value pool and the fair value factor for September 30, 2009 was
.5491S. The Fund B amount has a weighted average life of 6.69 years. Fund B cash holdings continue to
be distributed to participants as they become available from maturities, sales and income received.
CUSTODIAL CREDIT RISK
All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida
Security for Public Deposits Act". Under the Act, all qualified public depositories are required to pledge
eligible collateral having a market value equal to or greater than the average daily or monthly balance of
all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range
from SO% to 12S% depending upon the depository's financial condition. Any losses to public deposits are
covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary,
assessments against other qualified public depositories of the same type as the depository in default.
45
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 2 - CASH. CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
The policy requires execution of a third-party custodial safekeeping agreement for purchased securities
and collateral, and requires that securities be held in the County's name. At September 30, 2009 the
County had demand deposits of $195,965,729. These demand deposits do not include discretely
presented component unit deposits of $486,147. These deposits were fully covered by federal
depository insurance or by collateral, in the County's name as required by Sections 280.07 and 280.08
of the Florida Statutes.
INTEREST RATE RISK
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. One of the primary objectives of the investment policy is to match investment cash flow and
maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to
interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an
average maturity of not more than five years, except for the Florida Local Government Surplus Trust Fund
(SBA), which has no stated final maturity, and mortgage securities. Mortgage securities will not be used to
match liabilities that are reasonably definable as to amount and disbursement date and are used to invest
funds associated with reserves or liabilities that are not associated with a specifically identified cash flow
schedule.
CONCENTRATION OF CREDIT RISK
The County's investment policy establishes limitations on portfolio composition in order to control
credit risk. The policy allows 100 percent of the portfolio to be invested in U.S. Government Securities,
Agencies and Instrumentalities (excluding mortgage securities), 50 percent to be invested in SBA, 30
percent to be invested in certificates of deposit, 20 percent to be invested in qualifying repurchase
agreements and 10 percent each in the categories of fixed income mutual funds, domestic bankers'
acceptances, prime commercial paper and tax-exempt obligations.
The portion of the County's portfolio invested in U.S. Government Instrumentalities is detailed as
follows, at September 30, 2009:
Issuer
Percent of
Portfolio
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Total U.s. Government Instrumentalities
54.04%
2.04%
14.92%
71.00%
46
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 2 - CASH. CASH EQUIVALENTS AND INVESTMENTS - CONTINUED
Reconciliation of cash, cash equivalents and investments to the basic financial statements:
Primary government:
Cash, cash equivalents and investments
Restricted cash, cash equivalents and investments - current
Restricted cash, cash equivalents and investments - noncurrent
$ 349,597,651
22,622,771
276,609,518
Agency funds:
Cash, cash equivalents and investments
29,790,645
$ 678,620,585
Total
NOTE 3 - TRADE RECEIVABLES
Trade receivables for governmental and business-type activities are net of an allowance for doubtful
accounts as follows:
Trade Allowance for Net Trade
Receivables Doubtful Accounts Receivables
General Fund $ 741,821 $ 88,605 $ 653,216
Road Impact Districts 27,783 27,783
Road Construction 1,936,562 1,936,562
Nonmajor governmental funds 1,356,828 71,330 1,285,498
Total receivables reported in governmental funds 4,062,994 159,935 3,903,059
Total receivables reported in internal service funds 51,277 10,867 40,410
Developer contributions receivable 11,100,000 11,100,000
Total Governmental Activities trade receivables $ 15,214,271 $ 170,802 $ 15,043,469
County Water and Sewer 6,396,411 321,793 6,074,618
Nonmajor enterprise funds 27,960,654 24,018,982 3,941,672
Total Business-type Activities trade receivables $ 34,357,065 $ 24,340,775 S 10,016,290
47
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 4 -INTERFUND PAYABLES AND RECEIVABLES
ADVANCES
Advances are made to various funds for the purposes of capital improvements. Reimbursements will
take places over the next several years.
Advances to and advances from other funds at September 30, 2009 were as follows:
Advance Advance
To From
Governmental Activities:
General Fund $ 7,045,275 $
Other governmental funds:
Community Development Fund 1,400,000
Tourist Development Fund 57,950
Capital Improvement Revenue Bonds Fund 19,570,777
Parks Improvement Fund 1,400,000
County-Wide Library Impact Fees Fund 8,543,825
Correctional Facilities Impact Fees Fund 53,100
Emergency Medical Services Impact Fees Fund 1,159,300
Government Facilities Impact Fees Fund 12,933,491
Law Enforcement Impact Fees Fund 10,394,200
Other Capital Projects Funds 21,477,700
Total Governmental Activities 29,922,975 54,112,643
Business-type Activities:
County Water and Sewer 18,550,000
Other business-type funds:
Solid Waste Disposal 5,639,668
Total Business-type Activities 24,189,668
Total Advances $ 54,112,643 $ 54,112,643
DUE FROM AND DUE TO
Interfund receivables and payables generally result from recording the excess fees associated with Tax
Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the
funds that paid for the collection services. Excess fees are calculated after year end, and as such are
interfund receivables and payables. Other outstanding balances are the result of time delays between the
provision and payment of interfund services and to cover temporary cash deficits.
48
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 4 -INTERFUND PAYABLES AND RECEIVABLES - CONTINUED
Due from and due to other funds at September 30, 2009 were as follows:
Due From Due To
Governmental Activities:
General Fund $ 3,672,793 $ 1,100,S83
Road Impact Districts 3,496 73
Road Construction 974 30
Other Governmental Funds:
Unincorporated Area MSTD 439,89S 93,958
Community Development 20,560
Water Management and Pollution Control 54,502
Grants and Shared Revenues 28,149 3,110,569
Improvement Districts 45,265
Fire Control Districts 40,201 20,639
Lighting Districts 5,733
911 Enhancement Fee 47,661
Tourist Development 113,799 357
State Housing Initiative Partnership 47
800 MHz 183
State Court Administration 77,990
Utility Fee Trust 1,131
Conservation Collier 138,396
Other Special Revenue Funds 54 100,714
Gas Tax Revenue Bonds 275
Pooled Commercial Paper Program Loan 2,164
Caribbean Gardens Loan 121,746
Stormwater Improvement Assessment Bonds 1,067
Limited General Obligation Conservation
Collier Bonds 53,251
Forest Lakes Limited General Obligation Bonds 6,987
County-Wide Capital Improvements 3,962
Parks Improvements 38,233 36
Water Management 550
Other Capital Projects 1,005 331
Total other governmental funds 1,167,954 3,401,4S6
Business-type Activities:
County Water and Sewer 33,947 311
Other Business-type funds:
Solid Waste Disposal 46,289 29,070
Emergency Medical Services 287
Collier Area Transit 397,106
Total other business-type funds 46,289 426,463
Internal Service Funds 13,789 10,326
Total All Funds $ 4,939,242 $ 4,939,242
49
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE S - CAPITAL ASSETS
A summary of capital asset activity for the year ended September 30,2009 is as follows:
October 1, Deductions! September 3D,
2008, as restated Additions Reclassifications 2009
Governmental Activities:
Capital assets not depreciated:
Land and other non-depreciable assets $ 314,971,954 $ 53,783,550 $ (1,895,437) $ 366,860,067
Construction in progress 422,485,649 98,294,309 (270,436,187) 250,343,771
Total capital assets not depreciated 737,457,603 152,077,859 (272,331,624) 617,203,838
Capital assets depreciated:
Buildings 291,080,881 2,328,181 124,971,162 418,380,224
Infrastructure 543,100,843 8,557,691 140,358,913 692,017,447
Improvements other than buildings 200,951,899 1,766,217 4,352,421 207,070,537
Machinery and equipment 150,853,352 18,331,174 (7,606,692) 161,577,834
Total capital assets depreciated 1,185,986,975 30,983,263 262,075,804 1,479,046,042
Less accumulated depreciation:
Buildings 70,768,539 11,238,279 (7,766) 81,999,052
Infrastructure 171,109,753 27,099,391 198,209,144
Improvements other than buildings 48,172,791 9,536,596 57,709,387
Machinery and equipment 102,499,894 18,098,874 (6,918,061) 113,680,707
Total accumulated depreciation 392,550,977 65,973,140 (6,925,827) 451,598,290
Total depreciable capital assets, net 793,435,998 (34,989,877) 269,001,631 1,027,447,752
Total governmental activities
capital assets, net $ 1,527,265,122 $ 117,087,982 $ (3,329,993) $ 1,644,651,590
Business-type Activities:
Capital assets not depreciated:
land and other non-depreciable assets $ 24,058,192 $ 321,386 $ $ 24,379,578
Construction in progress 137,771,163 21,371,001 (95,857,745) 63,284,419
Total capital assets not depreciated 161,829,355 21,692,387 (95,857,745) 87,663,997
Capital assets depreciated:
Buildings 129,996,357 149,252 5,223,072 135,368,681
Improvements other than buildings 853,103,237 10,071,757 90,123,824 953,298,818
Machinery and equipment 28,832,995 1,601,085 (1,367,884) 29,066,196
Total capital assets depreciated 1,011,932,589 11,822,094 93,979,012 1,117,733,695
less accumulated depreciation:
Buildings 56,123,190 3,437,521 392,441 59,953,152
Improvements other than buildings 185,927,858 27,605,394 (410,107) 213,123,145
Machinery and equipment 16,203,102 3,192,391 (1,250,880) 18,144,613
Total accumulated depreciation 258,254,150 34,235,306 (1,268,546) 291,220,910
Total depreciable capital assets, net 753,678,439 (22,413,212) 95,247,558 826,512,785
Total business-type activities
capital assets, net $ 915,507,794 $ (720,825) $ (610,187) $ 914,176,782
50
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE S - CAPITAL ASSETS
A summary of capital asset activity for the year ended September 30, 2009 is as follows:
October 1, Deductions/ 5eptember 30,
2008, as restated Additions Reclassifications 2009
Governmenta I Activities:
Capital assets not depreciated:
Land and other non-depreciable assets $ 314,971,954 $ 53,783,550 $ (1,895,437) $ 366,860,067
Construction in progress 422,485,649 98,294,309 (270,436,187) 250,343,771
Total capital assets not depreciated 733,829,124 152,077,859 (272,331,624) 617,203,838
Capital assets depreciated:
Buildings 291,080,881 2,328,181 124,971,162 418,380,224
Infrastructure 543,100,843 8,557,691 140,358,913 692,017,447
improvements other than buildings 200,951,899 1,766,217 4,352,421 207,070,537
Machinery and equipment 150,853,352 18,331,174 (7,606,692) 161,577,834
Total capital assets depreciated 1,185,986,975 30,983,263 262,075,804 1,479,046,042
less accumulated depreciation:
Buildings 70,768,539 11,238,279 (7,766) 81,999,052
Infrastructure 171,109,753 27,099,391 198,209,144
Improvements other than buildings 48,172,791 9,536,596 57,709,387
Machinery and equipment 102,499,894 18,098,874 (6,918,061) 113,680,707
Total accumulated depreciation 392,550,977 65,973,140 (6,925,827) 451,598,290
Total depreciable capital assets, net 793,435,998 (34,989,877) 269,001,631 1,027,447,752
Total governmental activities
capital assets, net $ 1,527,265,122 $ 117,087,982 $ (3,329,9931 $ 1,644,651,590
Business-type Activities:
Capital assets not depreciated:
Land and other non-depreciable assets $ 24,058,192 $ 321,386 $ $ 24,379,578
Construction in progress 137,771,163 21,371,001 (95,857,745) 63,284,419
Total capital assets not depreciated 161,829,355 21,692,387 (95,857,745) 87,663,997
Capital assets depreciated:
Buildings 129,996,357 149,252 5,223,072 135,368,681
Improvements other than buildings 853,103,237 10,071,757 90,123,824 953,298,818
Machinery and equipment 28,832,995 1,601,085 (1,367,884) 29,066,196
Total capital assets depreciated 1,011,932,589 11,822,094 93,979,012 1,117,733,695
Less accumulated depreciation:
Buildings 56,123,190 3,437,521 392,441 59,953,152
Improvements other than buildings 185,927,858 27,605,394 (410,107) 213,123,145
Machinery and equipment 16,203,102 3,192,391 (1,250,880) 18,144,613
Total accumulated depreciation 258,254,150 34,235,306 (1,268,546) 291,220,910
Total depreciable capital assets, net 753,678,439 (22,413,212) 95,247,558 826,512,785
Total business-type activities
capital assets, net $ 915,507,794 $ (720,825 ) $ (610,187) $ 914,176,782
50
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
The following is a summary of changes in long-term obligations for the year ended September 30, 2009:
OOO's Omitted
Premium or
October 1, Discount/Loss September 30, Due within
2008 Additions Reductions Amortized, net 2009 one year
Governmental Activities:
Bonds and Loans Payable $ 541,604 $ 26,744 $ (47,931) $ (1,003) $ 519,414 $ 26,846
Arbitrage Rebate 678 3 (366) 315 52
Capital Lease Obligations 753 (154) 599 154
Self-Insurance Claims 10,286 68 (1,025) 9,329 5,574
Net OPEB Obiigation 906 475 1,381
Compensated Absences 21,175 7,073 (6,462) 21,786 10,264
Total $ 575,402 $ 34,363 $ (55,938) $ (1,003) $ 552,824 $ 42,890
Business-type Activities:
Bonds and Loans Payable $ 262,540 $ 10,072 $ (11,945) $ 169 $ 260,836 $ 11,734
Notes Payable 73 (1) 72 72
Arbitrage Rebate 1,506 (512) 994
Capital Lease Obligations 618 (126) 492 132
Landfill Closure Liabiiity 1,815 99 1,914
Compensated Absences 2,183 2,084 (1,825) 2,442 1,953
Total $ 268,735 $ 12,255 $ ( 14,409) $ 169 $ 266,750 $ 13,891
NOTE 5 - CAPITAL ASSETS - CONTINUED
Schedule of depreciation for fiscal year 2009:
General Government
Pubiic Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Subtotal
Internal Service Funds
Total Governmental Activities
Water and Sewer
Solid Waste
EMS
Airport Authority
Mass Transit
Total Business-type Activities
NOTE 6 - LONG-TERM OBLIGATIONS
SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS
51
$
7,884,248
14,644,130
10,987,248
22,758,928
29,286
714,644
8,373,410
65,391,894
581,246
65,973,140
$
$
31,090,140
544,757
658,859
872,676
1,068,874
34,235,306
$
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BONDS. LOANS AND NOTES PAYABLE
Bonds, loans and notes payable at September 30, 2009 were composed of the following:
Governmental Activities Limited General Obligation Bonds
$32,815,000 2005A Limited General Obligation Bonds, Conservation Collier
Program, due in annual installments of $3,285,000 to $4,805,000 through January
1, 2013; interest at 3.00% to 5.00%.
$13,244,204 2008 Limited General Obligation Bonds, Conservation Collier
Program, due in annual installments of $3,067,279 to $3,529,181 through January
1,2013; interest at 4.14%.
$6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and
Drainage Municipal 5ervice Taxing Unit, due in installments of $300,000 to
$540,000 through January 1, 2022; interest at 3.75% to 4.25%.
Total Governmental Activities Limited General Obligation Bonds
Governmental Activities Revenue Bonds
$47,430,0002002 Capital Improvement Revenue Bonds due in annual installments
of $1,780,000 to $2,830,000 through October 1, 2016; interest at 1.60% to S.OO%.
$49,360,000 2003 Capital Improvement and Refunding Revenue Bonds due in
annual installments of $1,130,000 to $2,570,000 through October 1,2033; interest
at 2.00% to 4.75%.
$167,200,000 2005 Capital Improvement and Refunding Revenue Bonds due in
annual installments of $2,03S,000 to $7,240,000 through October 1, 2035; interest
at 2.25% to 5.00%.
$102,125,000 2003 Gas Tax Revenue Bonds, due in annual installments of
$1,495,000 to $6,865,000 through June 1, 2023; interest at 2.00% to 5.25%.
$96,255,0002005 Gas Tax Revenue Bonds, due in annual installments of $445,000
to $13,985,000 through June 1, 2025; interest at 3.00% to 5.00%.
$1,870,000 1997 Naples Park Area Stormwater Improvement Assessment Bonds
due in annual installments of $75,000 to $185,000 through September 1, 2012;
interest at 6.45% fixed rate.
Total Governmental Activities Revenue Bonds
52
$17,885,000
13,244,204
5,590,000
36,719,204
30,175,000
38,285,000
149,275,000
65,780,000
94,085,000
340,000
377,940,000
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 6 -LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE - CONTINUED
Governmental Activities Loans and Notes pavable
$78,446,000 Commercial Paper issued by the Florida Local Government Finance
Commission Pooled Commercial Paper Program due on December 4, 2012;
monthly variable interest rate for the current fiscal year of 0.95% to 4.45%, based
on the underlying commercial paper that is purchased and collateralized by all
legally available non ad valorem revenue.
$12,000,000 Florida Department of Transportation State Infrastructure Bank Loan,
due in annual installments of $1,839,148 to $4,414,096 through October 1, 2012;
interest at 2.0%.
$13,500,000 Bayshore Gateway Community Redevelopment Agency Taxable Note,
due September 1, 2014; monthly variable interest rate for the current fiscal year
end of 4.01%. Variable rate of 30-Day UBOR plus 3.75%.
Total Governmental Activities Loans and Notes Payable
Total Governmental Activities Obligations
Unamortized Bond Discount
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Governmental Activities Obligations, Net
Less Current Portion of Governmental Activities Obligations
Long-Term Portion of Governmental Activities Obligations, Net
Business-type Activities Revenue Bonds
$33,630,000 2003B County Water and Sewer Refunding Revenue Bonds due in
annual installments of $1,410,000 to $4,125,000 through July 1, 2021; interest at
4.25% to 5.50%.
$6,605,000 1999A Collier County Water and Sewer Refunding Revenue Bonds due
in annual installments of $35,000 to $1,035,000 through July 1, 2010; interest at
3.00% to 4.25%.
53
$66,047,000
10,042,623
13,500,000
89,589,623
$504,248,827
$(534,397)
15,981,953
(282,659)
519,413,724
(26,846,427)
$492,567,297
$31,580,000
785,000
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE - CONTINUED
$22,855,000 1999B Collier County Water and Sewer Refunding Revenue Bonds
due in annual installments of $950,000 to $1,875,000 through July 1, 2016;
interest at 4.00% to 5.125%.
$110,165,0002006 Collier County Water and 5ewer Revenue Bonds due in annual
installments of $2,310,000 to $8,695,000, commencing July 1, 2017 through July
1, 2036; interest at 4.00% to 5.00%.
Total Business-type Activities Revenue Bonds
Business-tvpe Activities Loans and Notes Pavable
$166,580 County Water and Sewer District agreement with private developer
payable through use of sewer system development fee credits. Non-interest
bearing agreement.
$14,547,667 County Water and Sewer District State Revolving Fund Loan, interest
payable at 4.25% payable in 20 semiannual payments commencing October 1,
1992.
$13,292,898 County Water and Sewer District State Revolving Fund Loan, interest
payable at 2.65% payable in 40 semiannual payments commencing January 15,
1999.
$22,238,677 County Water and 5ewer District 5tate Revolving Fund Loan, interest
payable at 3.05% payable in 40 semiannual payments commencing November 15,
200l.
$5,160,675 County Water and Sewer District State Revolving Fund Loan, interest
payable at 3.05% payable in 40 semiannual payments commencing October 15,
2004.
$6,560,956 County Water and 5ewer District 5tate Revolving Fund Loan, interest
payable at 3.05% payable in 40 semiannual payments commencing January 15,
2005.
$29,224,004 County Water and 5ewer District State Revolving Fund Loan, interest
payable at 2.95% payable in 40 semiannual payments commencing June 15, 2006.
$10,525,509 County Water and Sewer District State Revolving Fund Loan, interest
payable at 2.90% payable in 40 semiannual payments commencing September 15,
2006.
54
$11,450,000
110,165,000
153,980,000
71,675
2,930,661
7,040,095
14,600,956
4,147,104
5,268,810
25,257,434
8,713,752
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 6 - LONG-TERM DEBT - CONTINUED
DESCRIPTIONS OF BONDS. LOANS AND NOTES PAYABLE - CONTINUED
$5,445,223 County Water and Sewer District State Revolving Fund Loan, interest
payable at 2.92% payable in 40 semiannual payments commencing December 15,
2005.
$5,188,500 County Water and Sewer District State Revolving Fund Loan, interest
payable at 2.74% payable in 40 semiannual payments commencing November 15,
2007.
$7,123,496 County Water and Sewer District State Revolving Fund Loan, interest
payable at 2.75% and 2.64% payable in 40 semiannual payments commencing
April 15, 2008.
$11,478,810 County Water and Sewer District State Revolving Fund Loan, interest
payable at 2.64% and 2.79% payable in 40 semiannual payments commencing
August 15, 2008.
$11,637,070 County Water and Sewer District State Revolving Fund Loan, interest
payable at 2.64% and 2.79% payable in 40 semiannual payments commencing
October 15, 2009.
$3,294,890 County Water and Sewer District State Revolving Fund Loan, interest
payable at 2.79% payable in 40 semiannual payments commencing December 15,
2009.
Total Business-type Activities Loans and Notes Payable
Total Business-type Activities Obligations
Unamortized Bond Premium
Deferred Loss on Bond Refunding
Business-type Activities Obligations, Net
Less Current Portion of Business-type Activities Obligations Payable from
Unrestricted Assets
Less Current Portion of Business-type Activities Obligations Payable from
Restricted Assets
Long-Term Portion of Business-type Activities Obligations, Net
55
$4,614,837
3,719,346
4,816,360
11,009,256
11,815,681
2,929,458
106,935,425
260,915,425
4,738,118
(4,745,048)
260,908,495
(11,734,146)
(71,675)
$249,102,674
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 6 - LONG-TERM DEBT - CONTINUED
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
The total annual debt service requirements to maturity of long-term debt, excluding compensated
absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows:
Governmental Activities
Fiscal limited General Loans and
Year Obligation Bonds Revenue Bonds Notes Payable Totals
Principal Interest Principal Interest Principal Interest
2010 S 7,557,279 S 1,493,796 S 16,550,000 S 17,625,236 S 2,739,148 S 3,564,871 S 49,530,330
2011 7,962,597 1,137,371 17,120,000 16,992,775 2,775,930 3,467,069 49,455,742
2012 8,330,147 763,174 17,715,000 16,202,980 2,813,449 3,369,434 49,194,184
2013 8,714,181 371,544 17,590,000 15,390,381 71,361,096 1,287,004 114,714,206
2014 390,000 163,475 15,700,000 14.619,163 9,900,000 643,176 41,415,814
2015-19 3,765,000 664,425 87,365,000 61,145,833 152,940,258
2020-24 105,015,000 37,517,416 142,532,416
2025-29 50,230,000 16,079,375 66,309,375
2030-34 37,875,000 7,495,784 45,370,784
2035-39 12,780,000 597,780 13,377,780
Totals S 36,719,204 S 4,593,785 S 377,940,000 S 203,666,723 S 89,589,623 S 12,331,554 S 724,840,889
Business-type Activities
Fiscal loans and
Year Revenue Bonds Notes Payable Totals
Principal Interest Principal Interest
2010 S 5,125,000 S 7,138,343 S 6,704,835 S 3,060,552 S 22,028,730
2011 4,885,000 6,895,082 6,608,605 2,861,407 21,250,094
2012 5,12S,000 6,658,2S6 6,813,167 2,656,847 21,253,270
2013 5,380,000 6,409,782 S,963,626 2,445,790 20,199,198
2014 5,615,000 6,173,796 6,136,565 2,272,850 20,198,211
2015-19 21,580,000 27,024,901 32,565,808 8,594,785 89,765,494
2020-24 23,200,000 22,216,113 29,200,49S 4,024,2S1 78,640,859
2025-29 29,370,000 16,043,950 12,942,324 688,421 59,044,695
2030-34 36,680,000 8,735,077 45,415,077
2035-39 17,020,000 1,144,318 18,164,318
Totals S 153,980,000 S 108,439,618 S 106,935,42S S 26,604,903 S 39S,959,946
LEGAL DEBT MARGIN
The Constitution of the State of Florida and the Florida Statutes set no legal debt limit.
S6
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 6 - LONG-TERM DEBT - CONTINUED
RESTRICTIVE COVENANTS
According to the official statements and County resolutions authorizing the issuance of the Series 2002,
2003 and 200S Capital Improvement Revenue and Refunding Revenue Bonds, as well as the Series 2003
and 200S Gas Tax Revenue Bonds, the issues are payable from and secured by liens on the local
government half-cent sales tax and gas tax revenues, respectively.
During fiscal year 2008 Collier County experienced insurer rating downgrades on its Series 2002, 2003
and 200S Capital Improvement Revenue Refunding Bonds. The covenants related to these issues
require that in the event of an insurer downgrade below "A", by either Moody's or Standard and Poor's,
the County must fund a cash reserve to replace the surety within twelve months. By September 30,
2009 Collier County was required to fund the reserve in the amount of $19,570,777, which represents
the maximum remaining annual debt service amount on the outstanding Capital Improvement Bonds
and which is included in non-current restricted cash, cash equivalents and investments in the Statement
of Net Assets. The County used internal borrowings to achieve the required reserve funding. All
required principal and interest payments have been made in a timely manner on these bonds and the
County's pledged coverage on these bonds is 1.38.
The covenants of the loan agreement authorizing the Florida Local Government Finance Commission
loans include appropriation in the annual budget amounts of non ad valorem revenues or other legally
available funds sufficient to satisfy the loan repayments.
The 1997 Naples Park Area Stormwater Improvement Assessment Bonds are limited special obligations
of the County, payable solely from the proceeds of stormwater improvement assessments.
Tax increment revenues and a covenant to budget and appropriate from all legally available CRA non-ad
valorem revenues is pledged for the repayment of the Bayshore Gateway Community Redevelopment
Agency's taxable note. The average of actual receipts and cash carried forward from the previous year
must cover annual debt service requirements by 125%. In the opinion of management the agency was
in compliance with this covenant for the year ended September 30,2009.
Water and sewer revenue bonds are payable solely from and secured by a first lien upon and pledge of
the net revenues and certain other fees and charges derived from operation of the County's water and
sewer system. The pledge of net revenues derived by the County from the operation of the system
does not constitute a lien upon the system or any other property of the County. The covenants of the
resolutions authorizing the County Water and Sewer District Bonds, Series 2006, 2003B, 1999A and
1999B include an obligation for the County to fix, establish and maintain such rates and collect such
fees, rentals or other charges for the services and facilities of the water and sewer system, and to revise
the same whenever necessary, so as to provide in each year net revenues, as defined in the resolutions
authorizing the revenue bonds, which together with system development fees and special assessment
proceeds received shall be adequate to pay at least 125% of the annual debt service requirements for
the Water and Sewer Bonds; provided, however, that net revenues in each fiscal year shall be adequate
to pay at least 100% of the annual debt service for the bonds. In addition, bond covenants require a
renewal and replacement amount equal to $300,000 to be set aside in the County Water and Sewer
District Funds. In the opinion of management, the water and sewer funds were in compliance with
these covenants for the year ended September 30,2009.
57
COLLIER COUNTY, FLORIDA
NOTESTO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 6 - LONG-TERM DEBT - CONTINUED
The Collier County Water and Sewer District has several State Revolving Fund loans outstanding with
the Florida Department of Environmental Protection. These loans are collateralized by a lien on
pledged revenues consisting of net revenues from the operations of the County Water and Sewer
System and system development fees. The lien shall be subordinate in all respects to liens placed upon
pledged revenues established by bonded indebtedness. The County Water and Sewer District shall
maintain rates and charges for services which together with system development fees sufficient to pay
115% of the annual debt service requirements on the loans, as well as satisfy the coverage
requirements of all senior debt obligations. In the opinion of management, the State Revolving funds
were in compliance with these covenants for the year ended September 30, 2009.
INTEREST CAPITALIZED
Interest costs on long-term debt, including capitalized leases, incurred and capitalized during the year
ended September 30, 2009 were as follows:
Business-type Activities
$10,211,073
Interest Cost
Capitalized
$1,869,033
Net Interest
Expense
$8,342,040
Total Interest
Cost Incurred
LEASE OBLIGATIONS
Capitalized leases payable at September 30, 2009 amounted to $1,090,610. These obligations, which
are collateralized by equipment and vehicles, have annual installments ranging from $35,230 to
$342,001 including interest ranging from 4.26% to 7.21% and mature through 2015.
Future minimum capital lease obligations as of September 30, 2009 were as follows:
Governmental Business-type
Activities Activities Total
2010 $ 190,660 $ 151,341 $ 342,001
2011 190,660 151,341 342,001
2012 104,821 131,773 236,594
2013 77,920 98,830 176,750
2014 77,920 77,920
2015 35,230 35,230
Total minimum lease payments 677,211 533,285 1,210,496
Less amount representing interest (78,341) (41,545) (119,886)
Present value of minimum
lease payments $ 598,870 $ 491,740 $ 1,090,610
58
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 7 - CONDUIT DEBT OBLIGATIONS
COMPONENT UNIT CONDUIT DEBT
The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and
Educational Facilities Authority, all component units of Collier County, issue debt instruments for the
purpose of providing capital financing to independent third parties. Industrial development revenue
bonds have been issued to provide financial assistance to public entities for the acquisition and
construction of industrial and commercial facilities. Housing revenue bonds have been issued for the
purpose of financing the development of multi-family residential rental communities. The health
facility revenue bonds were issued to provide financing for the construction of health park facilities. The
educational facility revenue bonds were used to provide financing for the construction of educational
facilities. These bonds were secured by the financed property, a letter of credit or a corporate
guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project
or facilities constructed. Neither the issuer, nor the County, is obligated in any manner for repayment
of the bonds and as such they are not reported as liabilities in the accompanying financial statements.
As of September 30, 2009 the outstanding principal amount payable on all component unit conduit debt
was $309,274,230 and is made up of the following:
Industrial development revenue bonds
Housing finance revenue bonds
Health facilities revenue bonds
Educational facilities revenue bonds
$ 77,604,230
72,615,000
85,330,000
73,725,000
$ 309,274,230
Total
On October IS, 2009, an event of default occurred on $2,615,000 of outstanding industrial
development revenue bonds. Pursuant to the terms of the trust indenture the maturity of the bonds
was accelerated and a line of credit was drawn upon as of October 20, 2009 to pay all remaining
principal and interest on the bonds. All bondholders were paid in full and neither the County nor the
issuer is obligated in any manner.
NOTE 8 - DEFEASED DEBT
The County has defeased certain outstanding bonds by placing the proceeds of new bonds in
irrevocable trusts to provide for all future debt service payments on the defeased debt. Accordingly,
the trust accounts and the defeased bonds are not included in the County's financial statements. At
September 30, 2009 the following issues were considered defeased:
Governmental Activities
Original Debt Oefeased Bonds
Defeased Outstanding
$ 12,245,000 $ 4,085,000
4,360,000 4,165,000
$ 16,605,000 $ 8,250,000
Original Debt Defeased Bonds
Defeased Outstanding
$ 22,000,000 $ 5,285,000
1986 Capital Improvement Program Revenue Bonds,
Sub-Series 5 Mode A
2003 Capital Improvement and Refunding Revenue Bonds
Total Governmental Activities Defeased Debt
Business-type Activities
1983 County Water and Sewer District Refunding Bonds
59
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 9 - PENSION PLAN OBLIGATIONS
RETIREMENT PLAN
Substantially all full time and part time employees of the County are eligible to participate in the State of
Florida Retirement System (the System), a cost sharing, multiple employer program administered by the
State of Florida, Division of Retirement. The System provides two retirement plans from which eligible
employees can choose: the Pension Plan (defined benefit) and the Investment Plan (defined contribution).
The County follows the provisions of GASB 27, Accounting for Pensions by State and Local Governmental
Employers, as described in the following disclosure.
PLAN DESCRIPTION
Employees who are regular risk members and retire at or after age 62 with 6 years of credited service, or
with 30 years of service regardless of age, are entitled to a retirement benefit, payable monthly for life,
equal to 1.6 percent of their average final compensation for each year of credited service. Final average
compensation is the employee's average of the five highest years of salary earned during credited service.
Vested employees may retire before age 62 and receive benefits that are reduced S percent for each year
prior to normal retirement age or date. The System also provides death and disability benefits as well as
annual cost-of-Iiving adjustments to plan participants and beneficiaries. The Florida Legislature established
the System under Chapter 121, Florida Statutes and has sole authority to amend benefit provisions.
Special Risk Class members qualify for normal retirement with 6 years of special risk service and age SS or
with 25 years of special risk service at any age. The monthly benefit payable is equal to 2-3 percent of
their average final compensation for each year depending on the percent in effect during the service
period. Vested employees may retire before age 55 and receive benefits that are reduced 5 percent for
each year prior to normal retirement age or date.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative method for
payment of retirement benefits for a specified and limited period for members of the System, effective
July 1, 1998. Under this program, the employee may retire and have their benefits accumulate in the
Florida Retirement System Trust Fund, earning interest, while continuing to work for a System employer.
The act of participating in the program does not change the individual employee's employment conditions.
When the DROP period ends, a maximum of 60 months, employment must be terminated. At the time of
termination of employment, the employee will receive payment of the accumulated DROP benefits, and
begin receiving their monthly retirement benefit (in the same amount determined at retirement, plus
annual cost-of-Iiving increases).
The System publishes an annual report that provides ten-year historical trend information regarding
progress made in accumulating sufficient assets to pay benefits when due. The report may be obtained by
writing the Division of Retirement, Research, Education and Policy Section, 1317 Winewood Boulevard,
Tallahassee, Florida 32315-9000, or by calling (866) 738-2366, or accessing their internet site at
www.dms.myflorida.com.
60
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 9 - PENSION PLAN OBLIGATIONS - CONTINUED
FUNDING POLICY
The System is non-contributory for employees and the County is required to contribute at an actuarially
determined rate. The current rate is 20.92% for special risk employees, 16.53% for county elected
officials, 9.85% for regular employees, 13.12% for senior management and 10.91% for DROP employees of
annual covered payroll. The contributions of the County are established by the State Legislature and
therefore subject to amendment. The County's contributions to the System for the years ending
September 30, 2009, 2008 and 2007 are represented in the table below. The County's contributions were
equal to the required contributions for each year.
Transfers for the year ended September 30, 2009 were as follows:
Transfers from Fund Transfers to Fund Amount
Governmental Activities:
General Fund Road Construction $ 23,441,888
Nonmajor Governmental Funds 57,854,671
County Water and Sewer 5,494
Nonmajor Business Type 15,097,757
Road Construction General Fund 253,200
Nonmajor Governmental Funds 14,374,200
Nonmajor Business Type 1,773,900
Community Redevelopment Nonmajor Governmental Funds 1,699,179
Nonmajor Governmental Funds General Fund 4,055,263
Nonmajor Governmental Funds 37,277,409
County Water and Sewer 54,900
Business-type Activities:
County Water and Sewer General Fund 3,616,155
Nonmajor Governmental Funds 193,100
Nonmajor Business-type General Fund 492,081
Nonmajor Governmental Funds 18,001
County Water and Sewer 117,200
Totals $ 160,324,398
General Fund $
Road Construction
Community Redevelopment
County Water and Sewer
Nonmajor Governmental Funds
Nonmajor Enterprise Funds
Internal Service Funds
Totals $
NOTE 10 - TRANSFERS
FY-2009
18,878,678 $
196,737
48,712
1,574,521
4,451,766
2,684,350
217,901
28,052,665 $
61
FY-2008
18,842,653 $
169,894
24,511
1,549,255
4,825,491
2,593,107
204,365
28,209,276 $
FY-2007
18,678,498
160,080
22,013
1,673,956
4,846,006
2,719,220
207,274
28,307,047
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 10 - TRANSFERS - CONTINUED
Transfers between funds move unrestricted revenues collected in the General Fund to finance
operating and capital programs accounted for in other funds in accordance with budgetary
authorizations and to move receipts restricted to debt service from the funds collecting the receipts to
the debt service fund as payments become due. Transfers of capital assets between governmental
activities and business-type activities are also recorded as transfers in the entity wide statements.
Capital assets with a net book value of $55,049 were transferred from governmental activities to
business-type activities. Capital assets with a net book value of $71,672 were transferred from
business-type activities to the governmental activities. Capital assets with a net book value of $17,748
were transferred from the internal service funds to the governmental activities. Capital assets with a
net book value of $14,239 were transferred from the governmental activities to the internal service
funds.
NOTE 11- NET ASSETS/FUND BALANCES
Net assets represent the difference between total assets and liabilities and are categorized as follows:
Invested in capital assets, net of related debt: Total capital assets, net of debt issued in the acquisition
of these assets and net of depreciation is reported separately in the net assets section.
Restricted for growth related capital expansion: Impact fee and system development charges restricted
for growth related capital expansion.
Restricted for transportation capital projects: Gas taxes and other revenues restricted for
transportation capital improvements.
Restricted for Conservation Collier: One quarter mill of ad valorem revenues restricted for the purchase
of environmentally sensitive land.
Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related
activities.
Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have
been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund
is restricted to the payment of principal and interest on long-term debt.
Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of
County Water and Sewer District Bonds. The use of monies in the renewal and replacement fund is
restricted to funding the cost of additions, replacement or major repair of water and wastewater capital
assets.
Unrestricted: Balances are not restricted for specific purposes.
The following categories are used to report governmental fund balances in the fund financial
statements.
Fund Balances Reserved/Unreserved
Reserved for prepaid costs: Balances represent insurance, travel and other expenses paid in advance
and which are not considered available and spendable resources.
Reserved for inventory: Balances represent items not considered available and spendable resources.
62
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 11- NET ASSETS/FUND BALANCES - CONTINUED
Reserved for advances to other funds: Balances represent long-term advances made to other funds
which do not constitute expendable and available financial resources.
Reserved for encumbrances: Balances are segregated for expenditure upon vendor performance.
Reserved for debt service: Balances represent monies legally restricted to the payment of principal and
interest on long-term debt.
Unreserved, reported in general fund: Balances in the general fund not reserved for specific purposes.
Unreserved, reported in special revenue funds: Balances in the special revenue funds not reserved for
specific purposes.
Unreserved, reported in debt service funds: Balances in the debt service funds not reserved for specific
purposes.
Unreserved, reported in capital project funds: Balances in the capital project funds not reserved for
specific purposes.
NOTE 12 - RISK MANAGEMENT
The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets;
errors and omissions; injuries to employees and natural disasters. A self-insurance internal service fund is
maintained by the County to administer insurance activities relating to workers' compensation, health and
property and casualty, which covers general, property, auto, public official and crime liabilities. The
County self insurance program covers operations of the Board and the constitutional officers, except for
the Sheriff. Under these programs, the self-insurance fund provides coverage up to a maximum amount
for each claim. The County purchases commercial insurance for claims in excess of coverage provided by
the self-insurance fund and for all other covered risks of loss.
Claim Type
Property and casualty claims
County's Coverage
$50,000 - $500,000
(5% Named Storm)
$200,000
$175,000
$500,000
Excess Carrier's Coverage
$50,000 - $125,000,000
Auto liability claims
Employee health claims
Workers' compensation claims
$200,000 - $1,000,000
$175,000 - $2,000,000
$500,000 - $25,000,000
Settled claims have not exceeded the insurance provided by third party carriers in any of the past three
years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to
operating departments are based upon amounts believed by management to meet the required annual
payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the
fiscal year ended September 30, 2009 the operating departments were charged $31,078,865 for
workers' compensation, health and property and casualty self-insurance programs.
63
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 12 - RISK MANAGEMENT - CONTINUED
The claims loss reserve for workers' compensation, health and property and casualty of $7,208,000
reported at September 30, 2009 was calculated by third party actuaries based upon GASB Statement
30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable
that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated
liabilities for unpaid losses related to workers' compensation and property and casualty were
discounted at 3.5%. The estimated liabilities for unpaid losses related to health were not discounted as
their turnover period is much shorter. Claims loss reserves of $3,453,384 are recorded as current
liabilities.
The Sheriff participates in the Statewide Florida Sheriff's Self-Insurance Fund for its professional liability
insurance. The fund is managed by representatives of the participating Sheriff offices and provides
professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self-Insurance Fund
provides liability insurance coverage subject to the following limitations: $3,100,000 for any claim
involving a single individual, $3,200,000 for any incident which involves multiple claims and aggregate,
$3,500,000 ultimate net loss per Sheriff during any policy period.
The Sheriff also participates in the Statewide Florida Sheriff's Self-Insurance Fund program for workers'
compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust
(FSAWIT) is a limited self-insurance fund providing coverage for the first $350,000 of every claim. Re-
insurance is provided through a third party insurer for all claims exceeding $350,000 up to $10,000,000
and an aggregate of $500,000 depending on type of bodily injury. Settled claims have not exceeded the
insurance provided by third party carriers in any of the past three years.
Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to
meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs
of the program. All liabilities associated with these self-insured risks are reported in the basic financial
statements of the Statewide Florida Sheriff's Self-Insurance Fund. The Sheriff cannot be additionally
assessed for claims paid by the program.
The Sheriff has also established a self-funded employee health plan. An internal service fund is used to
account for the activities of the plan. Excess coverage has been purchased which provides specific claim
excess coverage for anyone incident exceeding $150,000 up to $1,000,000. Payments to the internal
service fund are based on actuarial estimates of amounts needed to pay prior year and current year
claims.
The claims loss reserve for health of $2,121,000 reported at September 30, 2009 was calculated by third
party actuaries based upon GASB Statement 30, Risk Financing Omnibus which requires that a liability for
claims be reported when it is probable that a loss has been incurred and the amount of that loss can be
reasonably estimated. The entire Sheriff's health claim loss reserve is recorded as a current liability.
64
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 12 - RISK MANAGEMENT - CONTINUED
CHANGES IN SELF-INSURANCE CLAIMS PAYABLE
Changes in the self-insurance claims payable for fiscal years 2008 and 2009 were as follows for the
County and Sheriff self-insurance programs:
Property and Group Workers'
Casualty Health Compensation Total
Balance at September 30, 2007 $ 2,937,000 $ 4,662,000 $ 3,972,000 $ 11,571,000
Current year claims incurred and
changes in estimates 561,528 40,430,555 (608,384) 40,383,699
Claim payments (1,268,528) (39,886,555) (513,616) (41,668,699)
Balance at September 30, 2008 2,230,000 5,206,000 2,850,000 10,286,000
Current year claims incurred and
changes in estimates 1,226,571 38,918,275 378,061 40,522,907
Claim payments (1,425,571) (38,850,275) (1,204,061) (41,479,907)
Balance at September 30, 2009 $ 2,031,000 $ 5,274,000 $ 2,024,000 $ 9,329,000
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS
Plan Description - The Board and the Tax Collector administer a single-employer defined benefit plan
(OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that subsidizes the
cost of health care for its retirees who have at least 60% of eligible accrued sick leave remaining at the
time of retirement and have completed 15 years of continuous service with the Board. In addition, the
retiree must retire from the County, be at least 55 years of age or have completed 30 years of service
under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in
time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under
the active plan. The Tax Collector offers an OPEB plan that subsidizes 100% the cost of health care for
employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick
leave at retirement. Additionally, in accordance with Florida Statute 112.0801, County employees who
retire and immediately begin receiving benefits from the FRS have the option of paying premiums to
continue in the County's health insurance plan at the same group rate as for active employees. The
plan does not issue a publicly available financial report.
In 2009 Board employees meeting certain eligibility requirements were offered access to a Voluntary
Separation Incentive Program (VSIP). The requirements for eligibility were that the employee had to be
eligible to retire without penalty under FRS. Eligible employees had three options under VSIP.
Option 1: Medical and dental coverage for a period of three years, with employee enrollment in the
plans as of the date the election is made. If the employee has waived coverage, the employee will be
enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level. The
Board will cover costs including both the employer and employee portions of the medical and dental
premiums during the coverage period.
65
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Option 2: Employee receives a cash incentive in lieu of three years of medical and dental benefits. The
employee will receive a cash payment equivalent to 50% of the average value of three years' medical
and dental plan premiums, less applicable payroll taxes.
Option 3: Employee receives medical and dental benefits until they reach age 65 with a cash incentive
for remaining months under the plan. The employee is enrolled in the plans as of the date the election
is made. If the employee has waived coverage, the employee will be enrolled in the $500 deductible
medical plan and basic dental plan at the single coverage level. The Board will cover costs including
both the employer and employee portions of the medical and dental premiums during the coverage
period. As of the first of the month following the date when an employee reaches age 65, the
employee will be entitled to receive a one-time cash payment equivalent to 50% of the average
monthly value of the medical and dental plan premiums, less applicable payroll taxes, for the remaining
months in which the employee is eligible to participate under the plan.
At September 30, 2009, the date of the latest actuarial valuation, County plan participation consisted
of:
OPEB plan participants 2,261
Retirees receiving benefits 100
Funding Policy - The County has the authority to establish and amend funding policy. For the year ended
September 30, 2009, the County contributed $658,599 to the OPEB Plan. No trust or agency fund has
been established for the plan.
Annual OPEB Cost and Net OPEB Obligation - The annual cost of the County's OPEB Plan is calculated
based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with
the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial
liability over a period not to exceed 30 years. The following table shows the components of the
County's annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the
net OPEB Plan obligation.
Annual required contribution $ 661,962
Interest on net OPEB obligation 6,839
Adjustment to annual required contribution (11,293)
Annual OPEB cost 657,508
Contributions made (658,599)
Decrease in net OPEB obligation (1,091)
Net OPEB obligation - beginning of year 356,111
Net OPEB obligation - end of year $ 355,020
66
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Funded Status and Funding Progress - The contributions made for the 2009 fiscal year were 100% of the
annual OPEB cost. Information for the two preceding fiscal years is not available as GASB Statement
No. 45 was implemented last fiscal year. As of the September 30, 2008 actuarial valuation date the
OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $3,769,254, and the
actuarial value of plan assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of
$3,769,254. As of the September 30, 2009 actuarial valuation date the OPEB Plan was 0.0% funded and
the actuarial accrued liability for benefits was $5,814,470, and the actuarial value of plan assets was $0,
resulting in a UAAL of $5,814,470. The covered payroll (annual payroll of active employees covered by
the OPEB Plan) was $164.9 million, and the ratio of the UAAL to the covered payroll was 3.5%.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the
value of reported amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future.
Calculations for financial reporting purposes are based on the benefits provided under terms of the plan
as understood by the employer and the plan members in effect at the time of each valuation and on the
pattern of sharing of costs between the employer and plan members to that point. The projection of
benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or
contractual funding limitations on the pattern of cost sharing between the employer and plan members
in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective,
actuarial methods and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
The actuarial methods and assumptions are:
Actuarial cost method
Amortization method
Amortization period
Investment rate of return
Discount rate
Healthcare cost trend rate
Unit Credit Actuarial Cost
Level Dollar Amount
30 years
3%
3%
8% for the 2010 fiscal year grading to an
ultimate rate of 5% for the 2016 fiscal year
Plan Description - The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can
amend the benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost of health care for
its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly
retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for
single coverage and 21% for family coverage for qualifying individuals. Additionally, in accordance with
Florida Statute 112.0801, Sheriffs employees who retire and immediately begin receiving benefits from
the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the
same group rate as for active employees. The plan does not issue a publicly available financial report.
67
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Beginning in 2009, employees meeting certain eligibility requirements were offered an Early Voluntary
Separation Program. Eligibility requirements were that the employee had to be eligible to retire
without penalty under FRS or have 20 years of service with the Sheriffs Office, have a specified base
salary and meet the requirements for retirement in good standing. In addition, employees had to meet
the eligibility requirements prior to April 17, 2009 and retire no later than 5/11/2009. Employees who
met the eligibility requirements between April 17, 2009 and September 30, 2009 could choose to retire
between two weeks after the final date and September 28, 2009. Eligible employees had the following
options:
Option 1: Medical coverage for a period of 3 years at no more than the current coverage level. If the
employee had waived coverage, he/she would be eligible for single coverage.
Option 2: A combination of insurance coverage and a cash payment.
Employee could then supplement with the conversion of 100% of accumulated sick leave to additional
coverage beyond the 3 year period.
At September 30,2009, the date of the latest actuarial valuation, Sheriff plan participation consisted of:
OPEB plan participants 1,319
Retirees receiving benefits 92
Funding Policy - The Sheriff has the authority to establish and amend funding policy. For the year ended
September 30, 2009, the Sheriff contributed $876,138 to the OPEB Plan. No trust or agency fund has
been established for the plan.
Annual OPEB Cost and Net OPEB Obligation - The annual cost of the Sheriffs OPEB Plan is calculated
based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance with
the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to coyer the normal cost each year and amortize any unfunded actuarial
liability over a period not to exceed 30 years. The following table shows the components of the Sheriff's
annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB
Pia n obligation.
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost
$
1,363,461
16,496
(27,236)
1,352,721
(876,138)
476,583
549,868
1,026,451
Contributions made
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
$
68
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS - CONTINUED
Funded Status and Funding Progress - The contributions made for the 2009 fiscal year were 65% of the
annual OPEB cost. Information for the two preceding fiscal years is not available as GASB Statement
No. 45 was implemented this fiscal year. As of the September 30, 2008 actuarial valuation date, the
OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $9,354,088, and the
actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of
$9,354,088. As of the September 30, 2009 actuarial valuation date, the OPEB Plan was 0.0% funded,
the actuarial accrued liability for benefits was $14,171,709, and the actuarial value of assets was $0,
resulting in a UAAL of $14,171,709. The covered payroll (annual payroll of active employees covered by
the OPEB Plan) was $123.3 million, and the ratio of the UAAL to the covered payroll was 11.5%.
Actuarial Methods and Assumptions - Actuarial yaluations of an ongoing plan involve estimates of the
value of reported amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future.
Calculations for financial reporting purposes are based on the benefits provided under terms of the plan
as understood by the employer and the plan members in effect at the time of each valuation and on the
pattern of sharing of costs between the employer and plan members to that point. The projection of
benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or
contractual funding limitations on the pattern of cost sharing between the employer and plan members
in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective,
actuarial methods and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
The actuarial methods and assumptions are:
Actuarial cost method
Amortization method
Amortization period
Investment rate of return
Discount rate
Healthcare cost trend rate
Unit Credit Actuarial Cost
Level Dollar Amount
30 years
3%
3%
10% for the 2010 fiscal year grading to an
ultimate rate of 5% for the 2020 fiscal year
69
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 14 - LANDFILL LIABILITY
On May 1, 1995 the County entered into a landfill operating agreement with a third party for the
privatization of the County's landfill operations. Under the contract, the third party is responsible for
the daily operations, capital improyements, closure, postclosure and financial assurance requirements
of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the
postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that
Collier County is responsible for has accepted waste since December 1989. The County is also
responsible for staffing and operating the scale house at each site.
In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria
and GASB Statement 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care
Costs, a liability has been established representing amounts estimated to be spent on postclosure
relating to cells for which Collier County is responsible. The County's estimated liability in connection
with the landfills is included in the proprietary funds statement of net assets. The landfill liability will be
reassessed on an annual basis, and any increase due to inflation, changes in technology or additional
postclosure care requirements will be recorded as a current cost. The County has funded an escrow
account with Fifth Third Bank in the amount of $10,000 to comply with Rule 62-701.630, Florida
Administrative Code for the inactive Eustis Avenue Landfill site. These funds bear interest and are
restricted for the exclusive use of the Eustis Ayenue Landfill site's long-term care. There were no
deposits, other than interest, or withdrawals from this account in fiscal year 2009.
NOTE 1S - SIGNIFICANT CONTINGENCIES
LITIGATION
The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary
course of operations. In the opinion of County legal counsel, the range of potential recoveries or
liabilities will not materially affect the financial position of the County. Litigation is pending between
the Clerk of the Circuit Court and the Board of County Commissioners regarding the role of the Clerk of
the Circuit Court as County Auditor. See page 13 of the Management's Discussion and Analysis for more
information.
STATE AND FEDERAL GRANTS
Grant monies received and disbursed by the County are for specific purposes and are subject to review
by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed
expenditures. Based upon prior experience, the County does not believe that such disallowances, if
any, would have a material effect on the financial position of the County.
ARBITRAGE REBATE
In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds
in excess of the interest costs incurred are required to be rebated to the federal government. The total
arbitrage rebate liability as of September 30, 2009 was $1,309,074, of which $315,185 related to
governmental activities and $993,889 to business-type activities.
70
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 16 - SIGNIFICANT COMMITMENTS
CONSTRUCTION COMMITMENTS
Collier County has active construction projects as of September 30, 2009. The projects include road
construction, governmental facilities and utilities improvements. At year end the County's
commitments with contractors includes the following:
Governmental Activities:
Road Impact Districts
Road Construction
Community Redevelopment
Other Governmental
Business-type Activities:
County Water and Sewer
Other Enterprise
Total
NOTE 17 - FUND DEFICITS
Future
Category Commitments
Roads $ 11,761,085
Roads 15,303,388
Economic Development 483,832
Parks 3,706,270
Natural Resource Planning 555,226
Roads 2,055,523
Buildings 5,038,320
Beach restoration 629,803
Stormwater drainage 2,357,132
Utilities 11,339,607
Landfill expansion and closure 1,211,372
Airports 362,215
$ 54,803,773
The following funds had fund balance deficits at September 30, 2009:
Fund
County-Wide Library Impact Fee
Emergency Medical Services Impact Fee
Government Facilities Impact Fee
Law Enforcement Impact Fee
Total
Amount
$ (4,148,592)
(101,572)
(5,355,509)
(7,284,158)
$ (16,889,831)
The fund balance deficits are primarily the result of advances from other funds made prior to
September 30, 2009. These advances were recorded to ensure repayment of non-impact fee monies
loaned to the impact fee fund for the construction of growth necessitated facilities. County
management anticipates that the deficits will be covered by future years' impact fee revenues.
71
COLLIER COUNTY, FLORIDA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
NOTE 18 - RESTATEMENT OF BEGINNING NET ASSETS AND BEGINNING FUND BALANCES
Governmental activities beginning net assets and governmental funds' beginning fund balances have
been restated as follows:
Prior period adjustments:
. Governmental activities capital assets were understated as four parcels of land with a total value
of $10,552,118 were not previously recorded.
. Governmental activities capital assets were overstated and inventory understated by $6,923,639,
as land purchased by the Bayshore Gateway Community Redevelopment Agency for resale was
capitalized in previous years. In the fund financial statements, Community Redevelopment
inventory and fund balance were understated by a corresponding amount.
Governmental Community
Activities Redevelopment
Net assets/fund balance, September 30, 2008,
as previously reported $ 1,516,043,884 $ 5,494,780
Unrecorded nondepreciable capital assets 10,552,118
Land held for resale 6,923,639
Total adjustment 10,552,118 6,923,639
Net assets/fund balance, September 30,2008,
as restated $ 1,526,596,002 $ 12,418,419
NOTE 19 - SPECIAL ITEM
On September 25,2008 the Court issued oral ruling in Case 07-1056-CA dated October 1, 2008 requiring
the Clerk to post a surety bond in an amount of $3,239,000 in place of the cash bond previously
deposited into the Court registry. On October 6, 2008 the Second District Court of Appeal reversed the
Court orders and remanded back to the Twentieth Judicial Circuit for a full evidentiary hearing related
to maintaining the automatic appellate stay and the propriety of a bond, if any, and the amount, if any,
of such a bond. On December 1, 2008, the Twentieth Judicial Circuit Court conducted the full
evidentiary hearing pursuant to the mandate of the Second District Court of Appeal and on December
18, 2008 the Court Ordered and Adjudged that the Clerk cause to be released to the County's General
Fund the $3,239,000 cash bond and interest earned on the cash bond while in the Court registry.
NOTE 20 - SUBSEQUENT EVENTS
On October 8, 2009 the Collier County Water and Sewer District issued the $11,727,489 Collier County
Water-Sewer District Water and Sewer Refunding Revenue Bond, Series 2009 for purposes of refunding
all of the outstanding Collier County Water and Sewer District's Series 1999B bonds. The bonds were
issued on parity with existing County Water and Sewer debt and pay a fixed rate of interest of 2.97%
through their maturity on July 1, 2016. The refunding achieved a net present value savings of 5.24%.
On January 12, 2010 the Collier County Board of County Commissioners authorized the submission of an
amendment to State Revolving Fund Loan Agreement DW111 030 for purposes of reimbursing
$5,839,056 of costs associated with a 12 million gallon per day reverse osmosis plant. The amendment
was approved by the Florida Department of Environmental Protection on January 25, 2010 at an
interest rate of 2.71% per annum.
72
REQUIRED SUPPLEMENTARY INFORMATION
Required Supplementary Information
Collier County, Florida
Schedule of Funding Progress
for the Retiree Health Plan
Actuarial
Accrued UAAl as a
Actuarial Actuarial Uabilily (AAL) - Percentage of
Valuation Value of Unit Credit Unfunded Funded Covered Covered
Agency Date Assets Actuarial Cost AAL (UAAL) Ratio Payroll Payroll
Board and Constitutionals 10/1/2008 $ $ 3,769,2S4 $ 3,769.ZS4 0.0% $ 173,S38,7S2 2.2%
(Non-Sheriff)
Board and Constitutionals 10/1/2009 S.814,470 S,814,470 0.0% 164.923.S91 3.5%
(Non-Sheriff)
Sheriff 10/1/2008 9,3S4.088 9.3S4,088 0.0% 128,182.S44 7.3%
Sheriff 10/1/2009 14.171,709 14,171,709 0.0% 123.296,677 1l.S%
74
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
Nonmajor Governmental Funds
Special Revenue Funds
ROAD DISTRICTS - To account for taxes levied and expenditures to carry on all work on roads and bridges in the
County except that provided for in capital project funds.
UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT - To account for revenues derived from and
expanded for the benefit of the unincorporated areas of the County.
COMMUNITY DEVELOPMENT - To account for building permit and deveiopment fees to support licensing, permitting
and inspection services.
WATER MANAGEMENT AND POLLUTION CONTROL - To account for taxes ievied County-wide to provide water
resource management and water pollution control.
GRANTS AND SHARED REVENUES - To account for the revenues received from federal, state and local grants.
IMPROVEMENT DISTRICTS - To account for taxes levied within municipal service taxing districts to provide for
specified improvements and/or the maintenance of such improvements.
FIRE CONTROL DISTRICTS - To account for taxes levied within municipal service taxing districts for fire prevention and
control.
LIGHTING DISTRICTS - To account for taxes levied within municipal service taxing district for street lighting.
911 ENHANCEMENT FEE - To account for fees levied on each telephone access line in the County for the
enhancement of the 911 emergency telephone system.
PUBLIC RECORDS MODERNIZATION - To account for the statutory surcharge on recording documents to be paid to
the Clerk of the Circuit Court for the modernization of the Clerk's official records management system.
TOURIST DEVELOPMENT -To account for the 4% tourist development tax.
STATE HOUSING INITIATIVE PARTNERSHIP - To account for state revenues received to provide affordable residential
housing for very low to moderate income persons and those who have special housing needs.
800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND - To account for moving traffic
violation surcharges received to fund the County's intergovernmental radio communications program.
STATE COURT ADMINISTRATION - To account for County monies used to fund the operation of the court system.
CONFISCATED PROPERTY - To account for the accumulation and expenditure of proceeds from the sale of property
confiscated by the Sheriff.
GAC LAND SALES. ROADS AND CANALS - To account for principal and settlement fees received from a 1977
settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of
roads, facilities and drainage improvements in the Golden Gate Estates area.
UTILITY FEE - To account for fees to be used to effectively and efficiently regulate private water and wastewater
utilities operating within the unincorporated areas of Collier County and the City of Marco Island.
CONSERVATION COLLIER - To account for the acquisition and management of environmentally sensitive lands.
IMPACT FEE ESCROW - To account for impact fees relating to certain projects under construction until permits are
issued.
COURT INFORMATION TECHNOLOGY FEE - To account for the accumulation of resources to enhance and increase
access to court information.
COURT SERVICES - To account for the accumulation of revenues associated with the function of the local court
system.
UNIVERSITY EXTENSION - To account for fund accumulation to meet the educational goals of the Collier County
UF/IFAS extension.
COURT FACILITIES FEE - To account for the accumuiation of resources to improve court facilities.
AFFORDABLE HOUSING - To account for fees to be used to provide for affordable housing related projects.
OTHER SPECIAL REVENUE FUNDS - To account for the accumulation of resources for the following programs:
Miscellaneous Florida Statutes Fee Collections
Adoption Awareness
Teen Court
Animal Control
Public Library
Law Library
Inmate Welfare
County Drug Abuse
Law Enforcement Training
Euclid and Lakeland Assessment
Legal Aid Society
Federal Equitable Sharing
Domestic Violence
Juvenile Assessment Center
Driver Education
Crime Prevention
Freedom Memorial
Debt Service Funds
GAS TAX REVENUE BONDS - To account for the accumulation of resources and payments of interest and principal on
long-term debt Incurred in the refunding of the 1986 Road Improvement Revenue Bonds.
CAPITAL IMPROVEMENT REVENUE BONDS - To account for the accumulation of resources and payment of interest
and principal on long-term debt incurred on various Revenue Bonds.
POOLED COMMERCIAL PAPER PROGRAM - To account for the accumulation of resources and payment of interest
and principal on the Commercial Paper loan program.
CARIBBEAN GARDENS LOAN - To account for the accumulation of resources and payment of interest and principal
on long-term debt incurred in the acquisition of Caribbean Gardens.
STORMWATER IMPROVEMENT ASSESSMENT BONDS - To account for the accumulation of resources and payment
of interest and principal on long-term debt incurred in the refunding of the Commercial Paper loans.
LIMITED GENERAL OBLIGATION BONDS. CONSERVATION COLLIER - To account for the accumulation of resources
and payment of interest and principal on long-term debt incurred for the acquisition of environmentally sensitive
lands.
COMMUNITY REDEVELOPMENT LINE OF CREDIT - To account for the accumulation of resources and payment of
interest and principal on long-term debt incurred acquisition of land in the Bayshore/Gateway Community
Redevelopment Agency.
FOREST LAKES LIMITED GENERAL OBLIGATION BONDS - To account for the accumulation of resources and payment
of interest and principal on long-term debt incurred on the Forest Lakes Limited General Obligation Bonds.
Capital Project Funds
COUNTY-WIDE CAPITAL IMPROVEMENTS - To account for Capital Projects, designated by The Board of County
Commissioners, to be funded by a County-wide one third mil levy.
PARKS IMPROVEMENTS - To account for the expenditure of funds raised specifically for improvements to parks.
Projects include land acquisition, design, construction and equipping of certain Community Park sites in the
unincorporated areas of the County. Primary funding is ad valorem taxes.
COUNTY-WIDE LIBRARY IMPACT FEES - To account for the receipt and expenditure of library impact fees collected
from all qualifying new construction. These impact fees must be used for acquisition of County-wide library facilities.
CORRECTIONAL FACILITIES IMPACT FEES - To account for the receipt and expenditure of correctional facilities impact
fees collected from all qualifying new construction. The impact fee must be used for the acquisition/construction of
correctional facilities.
EMERGENCY MEDICAL SERVICES IMPACT FEES - To account for the receipt and expenditure of emergency medical
service impact fees collected from ail qualifying new construction. The impact fees must be used for
acquisition/construction of emergency service facilities.
WATER MANAGEMENT - To account for the receipt and expenditure of funds raised specifically for water
management purposes. Primary funding is ad valorem taxes.
GOVERNMENT FACILITIES IMPACT FEES - To account for the receipt and expenditure of government facilities impact
fees collected from qualifying new construction. The impact fees must be used for the acquisition/construction of
park facilities.
PARKS IMPACT DISTRICTS - To account for the receipt and expenditure of parks impact fees collected from all
qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities.
LAW ENFORCEMENT IMPACT FEES - To account for the receipt and expenditure of law enforcement impact fees
collected from all qualifying new construction. The impact fee must be used for the acquisition/construction of law
enforcement related facilities.
OTHER CAPITAL PROJECTS - To account for major capital expenditure financed from resources other than proceeds
from the issuance of long-term debt and the one third mil levy.
COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
Special Revenue Funds
Water
Management Grants and
Road Unincorporated Community and Pollution Shared
Districts Area MSTO Development Control Revenues
allill
Cash, cash equivalents and investments $ 3,589,646 $ 16.662,382 S 3,869,485 $ 3,643,187 $ 7,115,174
Receivables:
Interest 5,025 25,354 4,448 5,182 1,303
Trade, net 2,520 184,835 69,145 746 84,196
Notes 231,667
Special assessments
Due from other funds 439,895 54,502 28,149
Due from other governments 300,347 718,342 11,629 1,476 5,012,091
Inventory 1,479.986
Advances to other funds
Prepaid costs
Total assets $ 3,897.538 S 18,030,808 $ 3,954,707 $ 3,705,093 $ 13,952.566
lIABIUTIES AND FUND BALANCES
liabilities:
Accounts payable 810,546 3,097,973 10,434 53,644 1,049,273
Wages payable 476,068 553,288 340,864 110,208 82,357
Due to other funds 93,958 20,560 3,110,569
Due to other governments 40 2,510 582,412 18,416
Due to individuals 3,607
Deferred revenues 10 2,359,619
Refundable deposits 15,140
Retainage payable 1,453 56,225
Advances from other funds 1,400,000
Total liabilities 1,288,117 3,803,954 2,373,017 163,852 6,620,234
Fund balances (deficits):
Reserved for:
Encumbrances 25,550 1,965,253 138,253 275,312 3,750,757
Inventory
Advances to other funds
Prepaid costs
Debt service
Unreserved, reported in:
Special revenue funds 2,583,871 12,261,601 1,443,437 3,265,929 3,581,575
Debt service funds
Capital projects funds
Total fund balances (defiCits) 2,609,421 14,226,854 1,581,690 3,541,241 7,332,332
Total liabilities and fund balances $ 3,897,538 $ 18,030,808 $ 3,954,707 $ 3,705,093 $ 13,952,566
See accompanying independent auditor's report (Continued)
80
Special Revenue Funds
State
Fire ." Public Housing
Improvement Control Lighting Enhancement Records Tourist Initiative
Districts Districts Districts F.. Modernization Development Partnership
$ 26,791,418 S 1,036,943 $ 522,528 S 3,850,691 $ 4,589,450 $ 26,305,247 $ 3,068,957
34,445 1,704 831 6,566 37,561 4,286
2,150 1,079 31' 564,011
1,361,573
45,265 40,201 5,733 113,799
69,409 23,259 159,273 12 123,125
218
$ 26,942,687 $ 1,103,404 $ 529,406 $ 4,016,530 S 4,589,462 $ 27,143,743 $ 4,434,816
279,992 17,979 39,304 298,987 689,365 160,194
17,398 92,150 4,296 85,775 31'
20,639 47,661 3S7 .7
3,453,484
125,028 6,024
57,950
443,057 110,129 43,600 47,661 298,987 839,471 3,614,044
1,005,350 15,657 1,762 2,129,956 76,617
218
25,494,280
977,400
484,044
3,968,869
4,290,475
24,174,316
744,155
3,968,869
4,016,530 $
4,290,475
26,304,272
820,772
26,499,630
993,275
485,806
$ 26,942,687 $ 1,103,404 $ 529,406 $
4,589,462 $ 27,143,743 $ 4,434,816
(Continued)
81
COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
82
Special Revenue funds
Other
Court Court Special
Conservation Impact fee Information Court University Facilities Affordable Revenue
Collier Escrow Technology Services Extension ,.. Housing Funds Total
$ 16,453,084 $ 659,152 S 554,570 S 347,014 S 40,891 $ 1,046,321 $ 578,675 $ 4,689,361 $ 128,879,087
23,232 1,241 790 S8 1,494 804 4,631 163,873
4,261 30,154 82,341 56,511 1,263,031
1,593,240
138,396 S4 945,115
49,421 6,468,384
1,749,095
S 16,618,973 S 660,393 $ 585,514 $ 396,435 $ 40,949 $ 1,130,156 S 579,479 S 4,750,557 $ 141,061,825
33,076 55,217 207,825 28,380 7,227,892
12,961 3,052 1,879,712
100,714 3,394,688
269,390 138 872,906
166,030 169,637
6,082,004
13,132 28,272
5,576 194,306
1,457,950
46,037 13,132 324,607 207,825 303,890 21,307,367
63,161 364,494 2,407 9,814,529
218
16,509,775
647,261
260,907
188,610
40,949
765,662
579,479
4,444,260
109,939,711
16,572,936
$ 16,618,973 $
647,261
660,393 $
260,907
585,514 $
1,130,156 $ 579,479 $ 4,750,557 $ 141,061,825
188,610
396,435 $
40,949
40,949 $
1,130,156
579,479
4,446,667
119,754,458
(Continued)
83
COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
84
Capital Projects Funds
limited General Community Forest lakes County-Wide
Obligation Bonds Redevelopment limited General Capital Parks
Conservation Collier line of Credit Obligation Bonds Total Improvements Improvements
$ 186,756 $ 1,571,597 $ 202,515 S 25,854,574 S 22,701,929 S 12,288,353
2S9 62 282 6,781 33,317 18,097
1,591 5,363 6,727
283,176
53,251 6,987 183,051 38,233
96,058 25,000 133,480
21,477,700 1,400,000
$ 241,857 $ 1,571,659 $ 209,784 S 26,429,003 $ 44,237,946 S 13,884,890
8S
COLLIER COUNTY, FLORIDA
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
Capital Projects Funds
County-Wide Correctional Emergency Government
Library Facilities Medical Services Water Facilities
Impact fees Impact Fees Impact Fees Management Impact Fees
!lilln
Cash, cash equivalents and investments $ 4,220,487 $ 1,101,029 S 1,054,785 $ 9,128,600 $ 8,292,520
Receivables:
Interest 6,047 1,818 1,458 13,385 12,866
Trade, net 1,342 364 278 446
Notes 413,880 172,506 154,370 290,693
Special assessments
Due from other funds sso
Due from other governments 252,760 4,147 1,207 350,000 7,446
Inventory
Advances to other funds
Prepaid costs 1,685
Total assets S 4,896,201 $ 1,279,864 $ 1,212,098 S 9,492,535 S 8,603,971
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 48,046 220,755 729,699 490,038
Wages payable
Due to other funds 331
Due to other governments
Due to individuals
Deferred revenues 413,880 172,506 154,370 290,693
Refundable deposits
Retainage payable 39,042 109,680 727,321 245,258
Advances from other funds 8,543,825 53,100 1,159,300 12,933,491
Total liabilities 9,044,793 556,041 1,313,670 1,457,351 13,959,480
Fund balances (defiCits):
Reserved for:
Encumbrances 385,682 352,229 2,885,494 2,015,613
Inventory
Advances to other funds
Prepaid costs 1,685
Debt service
Unreserved, reported in:
Special revenue funds
Debt service funds
Capital projects funds (4,535,959) 371,594 (101,572) 5,149,690 (7,371,122}
Total fund balances {defiCits} (4,148,592) 723,823 (101,572) 8,035,184 (5,355,509)
Total liabilities and fund balances S 4,896,201 S 1,279,864 $ 1,212,098 S 9,492,535 S 8,603,971
See accompanying independent auditor's report
86
Capital Projects Funds
Total
Parks Law Other Nonmajor
Impact Enforcement Capital Governmental
Districts Impact Fees Projects Total Funds
$ 17,045,887 $ 3,570,218 $ 3,939,564 S 83,343,372 $ 238,077,033
24,066 4,973 5,696 121,723 292,377
7,443 209 29S 17,104 1,285,498
2,430,191 87,004 3,548,644 5,141,884
49,886 49,886 333,062
1,005 39,788 1,167,954
74,642 848,682 7,413,124
1,749,095
22,877,700 22,877,700
1,685 1,685
$ 19,582,229 $ 3,662,404 $ 3,996,446 S 110,848,584 $ 278,339,412
400,034 97,159 473,235 4,278,001 11,516,585
32,837 32,837 1,912,549
4,329 3,401,456
872,906
169,637
2,430,191 87,004 3,548,644 9,912,228
28,272
116,029 368,199 21,633 1,899,859 2,094,165
10,394,200 33,083,916 54,112,643
2,946,254 10,946,562 527,705 42,847,586 84,020,441
2,756,418 585,078 2,094,106 20,062,369 29,876,898
218
22,877,700 22,877,700
1,685 1,685
4,976,678
109,939,711
1,586,837
13,879,557 (7,869,236) 1,374,635 25,059,244 25,059,244
16,635,975 (7,284,158) 3,468,741 68,000,998 194,318,971
$ 19,582,229 $ 3,662,404 $ 3,996,446 S 110,848,584 $ 278,339,412
87
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
NON MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2009
Special Revenue Funds
Water
Management Grants and
Road Unincorporated Community and Pollution Shared
Districts Area MSTD Developml!!nt Control Revenues
Revenues:
Taxes $ $ 41,399,115 $ S 2,226,641 $
licenses and permits 443,050 464,158 6,624,096 73S
Intergovernmental 2,397,289 235,578 164,930 15,934,472
Charges for services 154,852 2,267,459 2,548,183 401,370 76,001
Fines and forfeitures 238,725
Interest income 12,652 63,795 29,571 53,844 57,743
Change in fair value
of investments 11911 (1,977) 13401 13941 (286)
Special assessments 6,869 2,182,099
Miscellaneous 17,601 220,845 101,927 8,724 203,415
Total revenues 3,025,253 44,894,567 9,303,437 5,037,949 16,271,345
Expenditures:
Current:
General government 6,917,720 5,966,251 765,826
Public safety 4,368,096 6,793,692 2,034,6'74
Physical environment 748,474 287,571 2,965,299 77,963
Transportation 19,558,839 10,989,636 1,537,024
Economic environment 20'7,125 7,666,301
Human services 2,444,580
Culture and recreation 10,577,212 84,336
Debt service:
Principal
Interest
Fiscal charges
Capital outlay 796,748 4,354,226 1,442 206,550 659,639
Total expenditures 20,355,587 38,162,489 13,048,956 4,708,873 13,733,319
Excess (deficiency) of revenues
over (under) expenditures (17,330,334) 6,732,078 (3,745,519) 329,076 2,538,026
Other financing sources (uses):
Bonds issued
loans issued
Sale of capital assets 31,360
Insurance proceeds 123,635 227,710 249
Transfers in 17,419,805 5,598,639 1,707,700 54,502 375,127
Transfers out (403,500) (12,262,805) (901,0001 (243,019) (576,334)
Total other financing sources (uses) 1'7,139,940 (6,436,456) 838,309 (188,517} (201,207)
Net change in fund balances (190,3941 295,622 (2,907,210) 140,559 2,336,819
Fund balances (deficits) at beginning of year 2,799,815 13,931,232 4,488,900 3,400,682 4,995,513
Fund balances (deficits) at end of yeal S 2,609,421 $ 14,226,854 $ 1,581,690 $ 3,541,241 $ 7,332,332
See accompanying independent auditor's report
88
Special Revenue Funds
State
Fire 9" Public Housing
improvement Control Lighting Enhancement Records Tourist Initiative 800 MHZ
Districts Districts Districts ,.. Modernization Development Partnership ICRP Fund
$ 3,805,742 $ 3,731,853 $ 826,215 $ 2,076,779 $ $ 12,345,057 S $
72,867 15,746 9,384 1,111,226
508,738 6,040 807,239 73 121,510 467,004
61,465
482,885 32,189 14,988 147,968 34,193 80,851 29,331 999
(1,980) (140) (68) (S27) (2,449) (244) (161
6,178,652 33,161 1,643 126,196 66,830 124,362
11,046,904 3,818,849 842,778 2,224,220 902,897 12,559,112 1,328,653 592,349
19,800
608,280 43,201 5,733 113,798 591,700
(276,0901 (111,518) (15,232) (749,125)
332,190 (68,317) (9,499) (63S,3271 611,500
7,737,180 (146,339) 31,616 (1,900,817) (1,979,080) 1,161,019 (367,491) (S9,231)
18,762,450 1,139,614 454,190 5,869,686 6,269,555 25,143,253 1,188,263 207,054
$ 26,499,630 S 993,275 S 485,806 $ 3,968,869 $ 4,290,475 S 26,304,272 $ 820,772 $ 147,823
(Continued)
89
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, Z009
Special Revenue Funds
GAC Land
State Court Confiscated Sales, Roads Utlltty Conservation
Administration Property and Canals F.. Collier
Revenues:
Taxes $ $ S $ 227,287 S 12,607,470
licenses and permits
Intergovernmental
Charges for services 138,135 90,000
Fines and forfeitures 1,224,259 153,294
Interest income 806 18,504 42,289 1,647 726,809
Change in fair value
of investments 126) (69) 11S7) IS1) 12,3S2)
Special assessments
Miscellaneous 846 2,458
Total revenues 1,364,020 171,729 42,132 318,883 13,334,385
Expenditures:
Current:
General government 998,263
Public safety 1,G68,880 48,907
Physical environment 290,748 848,470
Transportation
Economic environment
Human services
Culture and recreation 213,077
Oebt service:
Principal
Interest
Fiscal charges
Capital outlay 7,122 39,801,443
Total expenditures 2,674,265 48,907 213,077 290,748 40,649,913
Excess (deficiency) of revenues
over (under) expenditures (1,310,245) 122,822 (170,945) 28,135 (27,315,528)
Other financing sources (uses):
Bonds issued 13,200,000
Loans issued
Sale of capital assets
Insurance proceeds
Transfers in 1,431,690 886,612
Transfers out (14,000) (92,S2S) (1,473,741)
Total other financing sources (uses) 1,417,690 (92,S2S) 12,612,871
Net change in fund balances 107,445 30,297 (170,945) 28,135 (14,702,657)
Fund balances (deficits) at beginning of year 19,602 741,908 1,726,570 602,021 31,275,593
Fund balances (deflclts) at end of year $ 127,047 S 772,205 S 1,555,625 $ 630,156 $ 16,572,936
See accompanying independent auditor's report
90
Special Revenue Funds
Other
Court Court Special
Impact Fee Information Court University Facilities Affordable Revenue
Escrow Technology Services Extension F.. Housing Funds Total
$ $ $ $ $ $ $ $ 79,246,159
12,401 7,544,440
2,132,652 22,074,144
631,404 3,911,768 1,199,242 13,329,018
2,489,898 683,743 219,046 5,070,430
2,608 1,422 14,026 123 17,759 9,089 44,833 1,920,924
183} 12S} (4) (86) (41) (3321 111,838)
2,188,968
12,780 338,935 251,854 7,690,229
2,525 632,801 8,548,344 12,899 701,416 347,983 1,727,044 139,052,474
562,680 8,359,734 191,218 262,239 26,307,916
11,842 1,031,673 21,566,836
7,502 8,447,646
203,829 34,641,178
9,569,570
2,163 133,892 2,580,635
10,097 19,601,800
61,331
24,999
81,353 37,361 120,375 51,169,633
658,038 8,359,734 7,502 228,579 1,762,105 173,971,544
2,525 (25,237) 188,610 5,397 472,837 347,983 (35,061) (34,919,070)
13,200,000
31,360
371,394
241,303 88,400 29,166,490
IS,OOO) (326,186) (17,450,075)
236,303 (237,786) 25,319,169
2,525 211,066 188,610 5,397 472,837 347,983 1272,8471 (9,599,901)
644,736 49,841 35,552 657,319 231,496 4,719,514 129,354,359
$ 647,261 $ 260,907 S 188,610 $ 40,949 $ 1,130,156 S 579,479 $ 4,446,667 $ 119,754,458
(Continued)
91
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2009
92
93
3,765,940
547,647
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Capital Projects Funds
County-Wide Correctiona I Emergency Government
library Facilities Medical Services Water Facilities
Impact Fees Impact Fees Impact Fees Management Impact Fees
Revenues:
Taxes S $ S $ S
Licenses and permits 447,225 492,438 229,693 895,505
Intergovernmental 400,000 1,801,652
Charges fOf services
Fines and forfeitures is
Interest income 12,631 3,669 2,942 50,366 28,683
Change in fair value
of investments 140S) (132) (87) (911) (l,S9S)
Special assessments 438,053
Miscellaneous 107,500 16,246
Total revenues 859,451 495,975 232,548 2,396,675 938,839
Expenditures:
Current:
General government 94,824
Public safety 73,624 24,435 84,984
Physical environment 220,750
Transportation
Economic environment
Human services
Culture and recreation 109,804
Debt service:
Principal
Interest
Fiscal charges
Capital outlay 2,362,064 260,060 12,076,173 20,837,694
Total expenditures 2,471,868 333,684 24,435 12,296,923 21,017,502
Excess (defiCiency) of revenues
over (under) expenditures (1,612,417) 162,291 208,113 (9,900,248) (20,078,663)
Other financing sources (uses):
Bonds issued
loans issued
Sale of capital assets
Insurance proceeds
Transfers in 494,000 12,148,050
Transfers out (1,576,747) (1,954,700) (463,6341 (1,058,310) (6,051,053)
Total other financing sources (uses) (1,576,747) (1,954,700) 30,366 11,089,740 (6,051,053)
Net change in fund balances (3,189,164) (1,792,409) 238,479 1,189,492 (26,129,716)
Fund balances (deficits) at beginning of year (959,428) 2,516,232 (340,051) 6,845,692 20,774,207
Fund balances (deficits) at end of year $ (4,148,592) $ 723,823 $ (101,572) $ 8,035,184 S {5,355,509)
See accompanying independent auditor's report
94
Capital Projects Funds
Total
Parks Law Other Nonmajor
Impact Enforcement Capital Governmental
Districts Impact Fees Projects Total Funds
$ $ S $ $ 96,337,167
2,234,337 368,515 6,633 5,126,556 12,670,996
61,491 3,294,224 25,368,368
54,331 13,383,349
1S 5,070,445
50,462 11,184 11,924 282,545 2,382,140
(1,660) (657) (409) (9,671) (22,20S)
105,249 543,302 2,852,507
254,524 594,522 1,258,596 8,948,825
2,344,630 633,566 717,919 10,549,898 166,991,592
901,352 4,762,116 31,070,032
131,527 1,120 863,337 22,430,173
1,146,491 1,367,241 9,814,887
34,641,178
9,569,570
2,580,635
123,249 348,435 1,795,879 21,397,679
92,339 46,127,670
20,401 21,415,714
115,818
2,289,062 4,885,553 632,444 60,861,849 112,031,482
2,412,311 5,017,080 3,029,842 69,763,162 311,194,838
(67,681) (4,383,514) (2,311,923) (59,213,264) (144,203,246)
13,244,204
5,945,425
31,360
371,394
1,807,530 35,931,595 111,416,560
(3,115,100) (6,510,499) (1,133,637) 122,213,409) (41,387,572)
(3,115,100) {6,51O,499} 673,893 13,718,186 89,621,371
(3,182,781) (10,894,013) (1,638,030) (45,495,078) (54,581,875)
19,818,756 3,609,855 5,106,771 113,496,076 248,900,846
$ 16,635,975 $ (7,284,158) $ 3,468,741 $ 68,000,998 $ 194,318,971
95
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2009
96
Road Districts (Non-GMP) Unincorporated Area MSTD (Non-<iMP)
Budget Actual Variance Budget Actual Variance
S $ S S 35,778,400 $ 41,399,115 $ 5,620,715
534,000 443,050 (90,950) 5,942,000 464,158 (5,477,842)
2,193,300 2,397,289 203,989 448,000 235,578 (212,422)
149,174 154,852 5,678 2,662,300 2,267,459 (394,841)
446,000 238,725 (207,275)
12,652 12,652 71,600 63,795 (l,80S)
25,000 6,869 (18,131)
5,126 17,601 12,475 191,328 220,845 29,517
2,881,600 3,025,444 143,844 45,564,628 44,896,544 (668,084)
7,829,976 6,917,720 912,256
4,781,350 4,368,096 413,254
856,930 748,474 108,456
21,279,012 19,558,253 1,720,759 13,199,833 10,988,974 2,210,859
219,424 207,125 12,299
11,887,276 10,577,212 1,310,064
954,716 796,748 157,968 5,986,643 4,354,226 1,632,417
22,233,728 20,355,001 1,878,727 44,761,432 38,161,827 6,599,605
(19,352,128) (17,329,557) 2,022,571 803,196 6,734,717 5,931,521
80,000 123,635 43,635 208,236 227,710 19,474
17,419,805 17,419,805 5,644,956 5,804,839 159,883
(403,500) 1403,500) (13,177,242) (12,469,005) 708,237
17,096,305 17,139,940 43,635 (7,324,050) 16,436,456) 887,594
(2,255,823) (189,617) 2,066,206 (6,520,854) 298,261 6,819,115
2,674,723 2,674,723 11,542,280 11,542,280
S 418,900 S 2,485,106 S 2,066,206 $ 5,021,426 S 11,840,541 $ 6,819,115
S
(189,617)
(191)
S
298,261
(1,977)
(586)
(662)
S
(190,394)
S
295,622
97
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2009
Water Management
Community Development (Non-GAAP) and Pollution Control (Non-GAAP)
Budget Actual Variance Budget Actual Variance
Revenues:
Taxes S $ $ S 2,319,800 $ 2,226.641 S (93,IS9)
Licenses and permits 10,039,000 6,624,096 (3,414,904) SOD 73S 235
Intergovernmental 90,000 (90,000) 158,500 164,930 6,430
Charges for services 3,313,000 2,548,'183 (764,817) 303,973 401,370 97,397
Fines and forfeitures
Interest income 173,000 29,571 (143,429) 48,200 53,844 5,644
Impact fees
Special assessments 2,261,400 2,182,099 (79,301)
Miscellaneous 100,000 133,287 33,287 8,724 8,724
Total revenues 13,715,000 9,335,137 (4,379,863) 5,092,373 5,038,343 (54,030)
Expenditures:
Current:
General government 7,454,679 5,966,050 1,4B8,629
Public safety 7,106,600 6,793,664 312,936
Physical environment 508,600 287,571 221,029 3,368,793 2,965,251 403,542
Transportation 1,708,300 1,537,024 171,276
Economic environment
Human services
Culture and recreation
Debt service
Capital outlay 2,943 1,442 1,501 418,647 206,550 212,097
Total expenditures 15,072,822 13,048,727 2,024,095 5,495,740 4,708,825 786,915
Excess (defiCit) of revenues
over (under) expenditures (1,357,822) (3,713,590) (2,355,768) (403,367) 329,518 732,885
Other financing sources (uses):
Bonds issued
loans issued
Payment to refunding bond escrow
5ale of capital assets
Insurance proceeds 249 249
Transfers in 3,107,700 3,107,700 54,502 54,502
Transfers out (901,OOO) (901,000) (314,800) (243,019) 71,781
Total other financing sources (uses) 2,206,700 2,206,949 249 (314,800) (188,517) 126,283
Net change in fund balances 848,878 (1,506,641) (2,355,519) (718,167) 141,001 859,168
Fund balances at beginning of year 5,212,222 5,212,222 2,798,667 2,798,667
Fund balances (deficits) at end of year $ 6,061,100 $ 3,705,581 $ (2,355,519) $ 2,080,500 $ 2,939,668 S 859,168
5ee accompanying independent auditors' report.
Reconciliation:
Net change in fund balance, budgetary basis S (1,506,641) $ 141,001
Change in fair value of investments (340) (394)
Advances budgeted as transfers (1,400,000)
Unbudgeted funds (229) (48)
Deferred revenues
Net change in fund balance, GMP basis S (2,907,210) $ 140,559
98
Grant!; and Shared Revenues (Non-GAAP) Improvement Districts (Non-GAAP)
Budget Actual Variance Budget Actual Variance
$ S $ $ 3,960,100 S 3,805,742 S (154,358)
26,036,316 13,207,758 (12,828,558) 195,700 72,867 (122,833)
23,433 76,001 52,568 187,400 508,738 321,338
38,785 38,785 193,300 482,885 289,585
445,819 203,415 (242,404) 6,000 7,852 1,852
26,505,568 13,525,959 (12,979,609) 4,542,500 4,878,084 335,584
2,684,051 729,617 1,954,434
2,679,511 745,641 1,933,870
98,684 77,963 20,721 350,773 277,181 73,592
268,328 268,328 1,600,303 1,555,667 44,636
24,876,018 7,666,301 17,209,717
4,513,571 2,444,580 2,068,991
130,000 84,336 45,664 1,204,500 1,021,471 183,029
4,028,561 289,916 3,738,645 22,806,091 787,595 22,018,496
39,278,724 12,038,354 27,240,370 25,961,667 3,641,914 22,319,753
(12,773,156) 1,487,605 14,260,761 (21,419,167) 1,236,170 22,655,337
757,768 359,547 (398,221) 6,736,000 6,779,080 43,080
(576,334) (576,334) (301,827) (276,090) 25,737
757,768 (216,787) (974,555) 6,434,173 6,502,990 68,817
(12,015,388) 1,270,818 13,286,206 (14,984,994) 7,739,160 22,724,154
14,369,574 14,369,574 17,957,495 17,957,495
$ 2,354,186 S 15,640,392 $ 13,286,206 $ 2,972,501 S 25,696,655 $ 22,724,154
s
1,270,818
12861
$
7,739,160
(1,980)
1,066,287
s
2,336,819
$
7,737,180
99
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
100
911 Enhancement Fee (Non-GAAPI Public Records Modernization
Budget Actual Variance Budget Actual Variance
$ 2,489,400 S 2,076,779 S (412,621) S S S
1,025,000 807,239 (217,761)
61,465 61,465
124,100 147,968 23,868 393,300 34,193 (359,107)
2,613,500
2,224,747
(388,753)
1,418,300
902,897
(515,403)
4,266,450
2,283,985
1,982,465
4,274,789
1,385,027
2,889,762
2,740,100
2,740,010
90
3,160,100
597,992
2,562,108
7,014,889
4,125,037
2,889,852
7,426,550
2,881,977
4,544,573
(4,401,389)
(1,900,290)
2,501,099
(6,008,250)
(1,979,080)
4,029,170
(4,401,389)
(1,900,290)
2,501,099
(6.008.2S0)
(1,979,080)
4,029,170
4,539,000
4,539,000
6,220,900
6,220,900
S
137,611 $ 2,638,710 $
2,501,099
S
212,650 $
4,241,820 $ 4,029,170
S (1.900.290)
(527)
$
(1,979,080)
$ (1,900,817)
S
11,979,080)
101
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NON MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2009
Tourist Development (Non-GAAP) State Housing Initiative Partnership (Non-GAAP)
BudKet Actual Variance Budget Actual Variance
Revenues:
Taxes $ 14,500,000 S 12,345,057 $ (2,154,943) S $ $
licenses and permits
Intergovernmental 5,000 9,384 4,384 1,111,226 1,111,226
Charges for services 73 73 121,510 121,510
Fines and forfeitures
Interest income 80,851 80,851 29,331 29,331
Impact fees
Special assessments
Miscellaneous 20,000 126,196 106,196 66,830 66,830
Total revenues 14,525,000 12,561,561 (1,963,439) 1,328.897 1,328,897
Expenditures:
Current:
General government
Public safety
Physical environment 4,752,463 2,944,438 1,808,025
Transportation
Economic environment 2,943,344 1,696,144 1,247,200
Human services
Culture and recreation 9,243,729 7,693,205 1,550,524
Debt service 4,631 4,631
Capital outlay 5,765,369 118,090 5,647,279
Total expenditures 19,766,192 10,760,364 9,005,828 2,943,344 1,696,144 1,247,200
Excess (deficit) of revenues
over (under) expenditures (5,241,192) 1,801,197 7,042,389 (2,943,344) (367,247) 2,576,097
Other financing sources (uses):
Bonds issued
loans issued
Payment to refunding bond escrow
Sale of capital assets
Insurance proceeds
Transfers in 605,000 700,819 95,819
Transfers out (1,525,2691 (1,395,922) 129,347
Total other financing sources (uses) {920,269) (695,103} 225,166
Net change In fund balances {6,161,461) 1,106,094 7,267,555 (2,943,344) (367,247) 2,576,097
Fund balances at beginning of year 27,588,784 27,588,784 3,272,899 3,272,899
Fund balances (deflc1ts) at end of year S 21,427,323 S 28,694,878 $ 7,267,555 $ 329,555 S 2,905,652 S 2,576,097
See accompanying independent auditors' report.
Reconciliation:
Net change in fund balance, budgetary basis S 1,106,094 $ (367,247)
Change in fair value of investments (2,449) (244)
Advances budgeted as transfers 59,776
Unbudgeted funds (2,402)
Deferred revenues
Net change in fund balance, GAAP basis S 1,161,019 S (367,491)
102
800 MHZ IRCP Fund (Non-GAAP) State Court Administration (Non-GAAP)
Budget Actual Variance Budget Actual Variance
$ $ $ $ $ S
476,300 467,004 (9.296) 97,500 138,135 40,635
1,349,000 1,224,259 (124,741)
999 999 806 806
115,400 124,362 8,962 846 846
591,700 592,365 66S 1,446,500 1,364,046 (82,454)
1,112,200 998,263 113,937
1,139,900 1,111,830 28,070 1,714,400 1,668,880 45,520
148,300
148,250
so
11,000
7,122
3,878
1,288,200
1,260,080
28,120
2,837,600
2,674,265
163,335
(696,500)
(667,715)
28,785
(1,391,100)
(1,310,219)
80,881
19,800 19,800
591,700 591,700 1,014,800 1,431,690 416,890
(14,000) (14,000)
591,700 611,500 19,800 1,000,800 1,417,690 416,890
(104,800) (56,215) 48,585 (390,300) 107,471 497,771
206,400 206,400 488,400 488,400
$ 101,600 S 150,185 $ 48,585 S 98,100 S 595,871 S 497,771
$
(56,215)
(16)
S
107,471
(26)
(3,000)
S
(59,231)
S
107,445
103
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Confiscated Property (Non-GAAP) GAC Land Sales, Roads and Canals (Non-GAAP)
Budget Actual Variance Budget Actual Variance
Revenues;
Taxes $ S s s s S
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures 153,294 153,294
Interestincorne 18,504 18,504 60,000 42,289 (17.711)
Impact fees
Special assessments
Miscellaneous 303,900 (303,900)
Total revenues 171,798 171,798 363,900 42,289 (321,611)
Expenditures:
Current:
General government
Public safety 48,907 48,907
Physical environment
Transportation
Economic environment
Human services
Culture and recreation 334,231 213,077 121,154
Debt service
Capital outlay
Total expenditures 48,907 48,907 334,231 213,077 121,154
Excess (deficit) of revenues
over (under) expenditures (48,907) 122,891 171,798 29,669 (170,788) (200,457)
Other financing sources (uses):
Bonds issued
loans issued
Payment to refunding bond escrow
Sale of capital assets
Insurance proceeds
Transfers in
Transfers out (312,700) (92,525) 220,175
Total other financing sources (uses) (312,700) (92,525) 220,175
Net change in fund balances (361,607) 30,366 391,973 29,669 (170,788) (200,457)
Fund balances at beginning of year 684,100 684,100 1,693,700 1,693,700
Fund balances (deficits) at end of year $ 322,493 $ 714,466 S 391,973 S 1,723,369 S 1,522,912 $ (200,457)
See accompanying independent auditors' report.
Reconciliation:
Net change in fund balance, budgetary basis $ 30,366 $ (170,788)
Change In fair value of investments (69) (lS7)
Advances budgeted as transfers
Unbudgeted funds
Deferred revenues
Net change in fund balance, GAAP basis S 30,297 $ (170,945)
104
Utility Fees (Non-GAAP) Conservation Collier (Non-GAAPI
Budget Actual Variance Budget Actual Variance
$ 225,000 S 227,287 S 2,287 S 13,135,200 $ 12,607,470 $ (527,730)
80,000 90,000 10,000
1,647 1,647 600.000 726,809 126,809
400 2,458 2,058
305,000 318,934 13,934 13,735,600 13,336,737 (398,863)
308,500
290,748
17,752
1,131,522
848,471
283,051
40,207,700 39,801,442 406,258
308,500 290,748 17,752 41,339,222 40,649,913 689,309
(3,500) 28,186 31,686 (27,603,622) (27,313,176) 290,446
13,200,000 13,200,000
3,586,400 3,514,512 171.8881
(4,280,480) (4,101,641) 178,839
12,505,920 12,612,871 106,951
(3,500) 28,186 31,686 (15,097,702) (14,700,305) 397,397
556,300 556,300 31,317,822 31,317,822
$ 552,800 S 584,486 S 31,686 S 16,220,120 $ 16,617,517 S 397,397
S
28,186
1511
S (14,700,305)
(2.3S2)
S
28,135
S (14,702,657)
10S
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2009
Court Information Technology Fee (Non.GAAPI Court Services
Budget Actual Variance Budget Actual Variance
Revenues:
Taxes $ S $ $ $ S
Ucensesand permits
Intergovernmental 2,132,652 2,132,652
Charges for services 888,200 631,404 (2S6.]96) 1,687,864 3,911,768 2,223,904
Fines and forfeitures 4,872,200 2,489,898 (2,382,302)
Interest income 1,422 1,422 53,598 14,026 (39,S72)
Irnpactfees
Special assessments
Miscellaneous
Total revenues 888,200 632,826 (255,374) 8,746,314 8,548,344 (197,970)
Expenditures:
Current:
General government 784,190 562,680 221,510 8,746,314 8,359,734 386,580
Publlcsafety 12,500 11,842 6S8
Physical environment
Transportation
Economic environment
Human services 5,000 2,163 2,837
Culture and recreation
Debt service
Capital outlay 274,300 81,353 192,947
Total expenditures 1,075,990 658,038 417,952 8,746,314 8,359,734 386,580
Excess (detidt) of revenues
over (under) expenditures (187,790) (25,212) 162,578 188,610 188,610
Other financing sources (uses):
Bonds Issued
loans issued
Payment to refunding bond escrow
Sale of capital assets
Insurance proceeds
Transfers in 241,303 241,303
Transfers out (S,OOO) (5,000)
Total other financing sources (uses) 236,303 236,303
Net change infund balances 48,513 211,091 162,578 188,610 188,610
Fund balances at beginning of year 61,100 61,100
Fund balances (deficits) at end of year $ 109,613 S 272,191 S 162,578 $ S 188,610 S 188,610
See accompanying independent auditors' report.
Reconciliation:
Net change in fund balance, budgetary basis S 211,091 $ 188,610
Change in fair value of investments (2S)
Advances budgeted as transfers
Unbudgeted funds
Deferred revenues
Net change in fund balance, GAAP basis S 211,066 $ 188,610
106
University Extension INon-GAAP) Court Facilities Fee (Non-GAAP)
Budget Actual Variance Budget Actual Variance
$ $ $ $ s $
1,036,100 683,743 (352,357)
123 123 40,000 17,759 122,241)
S,OOO 12,780 7,780
S,OOO 12,903 7,903 1,076,100 701,502 (374,598)
1,792,685 191,218 1,601,467
21,500 7,502 13,998
62,691
37,361
25,330
21,500
7,502
13,998
1,855,376
228,579
1,626,797
(16,500)
5,401
21,901
(779,276)
472,923
1,252,199
(16,500l
5,401
21,901
(779,276)
472,923
1,252,199
28,200
28,200
833,100
833,100
s
11,700 S
33,601 S
21,901
$
53,824 S
1,306,023 S
1,252,199
$
5,401
14)
s
472,923
186)
$
5,397
s
472,837
107
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON.GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2009
108
Capital improvement Revenue Bonds (Non.GAAP)
Pooled Commercial
Paper Pro.ram (Non-GAAP)
Budget Actual Variance
Bud.et Actual Variance
S $ S
S $ $
1,400 1,089 (311)
500 1,789 1,289
1,400 1,089 (311)
500 1,789 1,289
19,460,900 19,447,450 13,450
11,816,100 9,632,717 2,183,383
19,460,900 19,447,450 13,450
11,816,100 9,632,717 2,183,383
(19,459,5001 (19,446,361) 13,139
(11,815,600) (9,630,928) 2,184,672
39,428,578 39,428,578 11,774,000 9,622,021 (2,151,979)
(494,000) (494,000)
38,934,578 38,934,578 11,774,000 9,622,021 (2,151,979)
19,475,078 19,488,217 13,139 (41,6001 (8,907) 32,693
95,800 95,800 70,700 70,700
$ 19,570,878 S 19,584,017 S 13,139 $ 29,100 S 61,793 S 32,693
$ 19,488,217
(101
(19,570,777)
S
(8,907)
(7)
$ (82,570)
$
(8,914)
109
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, Z009
110
limited General Obli8atlon Bonds,
Conservation Collier
Community Redevelopment
Taxable Note (Non-GAAPI
Budget
Actual
Variance
Budaet
Actual
Variance
s
5,306,500 $ 5,091,474 $
(215,026)
s
s
s
1,000
19,735
18,735
92
92
5,307,500
5,111,209
(196,291)
9Z
92
5,368,450 5,362,361 6,089 6,445,425 6,084,671 360,754
5,368,450 5,362,361 6,089 6,445,425 6,084,671 360,754
(60,950) (251,152) (190,202) (6,445,425) (6,084,579) 360,846
44,250 44,204 (461
5,945,425 5,945,425
1,085,000 1,138,251 53,251 1,714,000 1,699,179 (14,821)
(924,000) (890,681) 33,319
205,250 291,774 86,524 7,659,425 7,644,604 (14,821)
144,300 40,622 (103,6781 1,214,000 1,560,025 346,025
121,000 121,000
S 265,300 S 161,622 $ (103,678) $ 1,214,000 $ 1,560,025 $ 346,025
s
40,622
(62)
s
1,560,025
(1)
$
s
1,560,024
40,560
111
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, Z009
Forest Lakes Urnlted General
Obligation Bonds (Non-GAAP) County-Wide Capital Improvements (Non-GAAP)
BudKet Actual Variance BudKet Actual Variance
Revenues:
Taxes $ 622,500 S 600,218 $ (22,282) $ S $
Licenses and permits
Intergovernmental 164,636 164,636
Charges for services 54,000 54,331 331
Fines and forfeitures
Interest income 2,000 7,107 5,107 71,287 71,287
Impact fees
Special assessments
Miscellaneous 25,000 21,975 (3,025)
Total revenues 624,500 607,325 (17,175) 79,000 312,229 233,229
Expenditures:
Current:
General government 2,478,578 3,765,940 (1,287,362)
Public safety 1,067,349 547,647 519,702
Physical environment
Transportation
Economic environment
Human services
Culture and recreation
Debt service 560,700 559,516 1,184 112,740 112,740
Capital outlay 37,800,587 10,633,991 27,166,.596
Total expenditures 560,700 559,516 1,184 41,459,254 15,060,318 26,398,936
Excess (defiCit) of revenues
over (under) expenditures 63,800 47,809 (15,991) (41,380,254) (14,748,089) 26,632,165
Otherfinandng sources (uses):
80nds issued
loans issued 4,925,000 (4,925,000)
Payment to refunding bond escrow
5ale of capital assets
Insurance proceeds
Transfers in 6,987 6,987 19,083,800 19,083,800
Transfers out (21,600) (18,188) 3,412 (10,542,600) (10,542,600)
Total other financing sources (uses) (21,600) (11,201) 10,399 13,466,200 8,541,200 (4,925,000)
Net change in fund balances 42,200 36,608 (5,592) (27,914,054) (6,206,889) 21,707,165
Fund balances at beginning of year 41,300 41,300 31,727,900 31,727,900
Fund balances (deficits) at end of year $ 83,Soo S 77,908 $ (S,S92) $ 3,813,846 S 25,521,011 $ 21,707,165
See accompanying Independent auditors' report.
Reconciliation:
Net change in fund balance, budgetary basis S 36,608 S (6,206,889)
Change in fair value of investments (23) (2,40S)
Advances budgeted as transfers 10,542,600
Unbudgeted funds
Deferred revenues
Net change in fund balance, GAAP basis S 36,585 S 4,333,306
112
Parks Improvements (Non-GAAPI County.W1de Ubrary Impact Fees (Non-GAAP)
Budget Actual Variance Budget Actual Variance
S S s $ s S
282,400 452,210 169,810 400,000 447,225 47,225
1,498,378 866,445 (631,933) 700,000 400,000 (300,000)
39,397 39,397 12,631 12,631
235,500 263,829 28,329
2,016,278 1,621,881 (394,397) 1,100,000 859,856 (240,144)
2,020,102
1,214,391
805,711
64,789
109,804
(45,015)
18,076,721
6,884,808
11,191,913
5,689,404
2,362,064
3,327,340
20,096,823
8,099,199
11,997,624
5,754,193
2,471,868
3,282,325
(18,080,545)
(6,477,318)
11,603,227
(4,654,193)
(1,612,012)
3,042,181
2,387,500 2,398,215 10,715 4,022,025 4,022,025
(1,751,800) (1,749,729) 2,071 (1,976,900) (1,576,747) 400,153
635,700 648,486 12,786 2,045,125 2,445,278 400,153
(17,444,845) (5,828,832) 11,616,013 (2,609,068) 833,266 3,442,334
17,923,400 17,923,400 3,507,900 3,507,900
S 478,555 $ 12,094,568 S 11,616,013 S 898,832 $ 4,341,166 $ 3,442,334
S (5,828,832)
(1,410)
1,400,000
s (4,430,242)
$ 833,266
(405)
(4,022,025)
$ (3,189,164)
113
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
114
17,546,889
12,076,173
5,470,716
28,670,333
20,837,694
7,832,639
18,204,753
12,296,923
5,907,830
28,730,992
21,017,502
7,713,490
(15,494,653)
(9,899,337)
5,595,316
(27,340,992)
(20,077,068)
7,263,924
12,147,500 12,148,050 SSG 8,728,891 8,728,891
(1,065,400) (1,058,310) 7,090 (6,495,573) (6,051,053) 444,520
11,082,100 11,089,740 7,640 2,233,318 2,677,838 444,520
(4,412,553) 1,190,403 5,602,956 (25,107,674) (17,399,230) 7,708,444
7,005,200 7,005,200 32,378,000 32,378,000
S 2,592,647 S 8,195,603 $ 5,602,956 $ 7,270,326 S 14,978,770 $ 7,708,444
S 1,190,403 S (17,399,230)
(911) (1,595)
(8,728,891)
S 1,189,492 S (26,129,716)
llS
COLLIER COUNTY, FLORIDA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON-GAAP)
MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
116
Other Capital Projects INon-GAAP)
Budget Actual Variance
$ $ $
11,400 6,633 (4,767)
200,000 (200.000)
11,924 11,924
106,100 105,249 laSl)
394,000 594,522 200,522
711,500 718,328 6,828
1,643,985 901,352 742,633
4,268 1,120 3,148
1,863,359 1,146,491 716,868
348,435 (348,435)
3,203,895 632,444 2,571,451
6,715,507 3,029,842 3,685,665
(6,004,007) (2,311,5141 3,692,493
1,918,125 1,807,530 (110,595)
(1,135,500) (1,133,637) 1,863
782,625 673,893 (108,732)
(5,221,382) (1,637,621) 3,583,761
6,307,400 6,307,400
S 1,086,018 S 4,669,779 S 3,583,761
$ (1,637,621)
1409)
$ (1,638,030)
117
THIS PAGE INTENTIONALLY LEFT BLANK
Nonmajor Enterprise Funds
SOLID WASTE DISPOSAL - To account for the provision of solid waste disposal services to users
throughout the County.
EMERGENCY MEDICAL SERVICES - To account for the provision of emergency ambulance and
paramedical services to users throughout the County.
GOODLAND WATER - To account for the provision of potable water services to residents of
Goodland.
AIRPORT AUTHORITY - To account for the provision of landing facilities and the sale of fuel at the
airports.
COLLIER AREA TRANSIT - To account for the provision of public transportation throughout the
County.
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2009
Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Area Enterprise
Disposal Services Water Authority Transit Funds
ASSETS
Current assets:
Cash, cash equivalents and investments $ 14,564,821 $ 4,677,722 $ 446,509 S 3,156,556 $ 155,387 $ 23,000,99S
Receivables:
Trade, net 702,741 3,188,072 19,411 15,733 Is,71S 3,941,672
Interest 111,476 7,479 595 4,333 184 124,067
Unbilled revenue 412,361 10,962 423,323
Due from other funds 46,289 46,289
Due from other governments 41,627 21,402 137,664 920,621 1,121,314
Inventory 27,759 95,779 123,538
Prepaid costs 32,083 32,083
Restricted assets:
Cash, cash equivalents and investments 281,136 126,851 22S,500 633,487
Total current assets 15,748,090 8,493,729 477,477 3,63S,565 1,091,907 29,446,768
Noncurrent assets:
Advanced to other funds 5,639,668 5,639,668
Capital assets:
Land and nondepreciable capital assets 10,401,269 3,762,444 5,873,414 20,037,127
Depreciable capital assets, net 7,640,859 3,442,932 905,935 10,867,715 7,391,579 30,249,020
Total noncurrent assets 23,681,796 3,442,932 905,93S 14,630,159 13,264,993 S5,92S,815
Total assets 39,429,886 11.936,661 1,383,412 18,265,724 14,356,900 85,372,583
LIABILITIES
Current liabilities:
Accounts payable 1,723,849 189,052 13,651 369,716 816,746 3,113,014
Wages payable 64,985 767,904 44,590 4,703 882,182
Due to other funds 29,070 287 397,106 426,463
Due to other governments 208 29,675 1,732 31,615
Due to individuals 377,455 377,455
Compensated absences 95,145 654,741 52,253 5,566 807,705
Capita! lease obligations 114,569 17,357 131,926
Liabilities payable from restricted assets:
Retainage payable 68,447 68,447
Refundable deposits 178,149 22,604 200,753
Unearned revenue 102,987 126,851 134,449 364,287
Total current liabilities 2,194,393 2,230,859 43,326 711,148 1,224,121 6,403,847
Noncurrent liabilities:
Compensated absences 23,786 163,685 13,063 1,391 201,925
Capital lease obligations 341,385 18,429 359,814
Landfill post-closure liability 1,913,827 1,913,827
Total noncurrent liabilities 1,937,613 505,070 31,492 1,391 2,475,566
Total liabilities 4,132,006 2,735,929 43,326 742,640 1,225,512 8,879,413
NET ASSETS
Invested in capital assets, net of related debt 18,042,128 2,986,978 905,935 14,594,373 13,264,993 49,794,407
Unrestricted 17,255,752 6,213,754 434,151 2,928,711 (133,605) 26,698,763
Total net assets $ 35,297,880 $ 9,200,732 $1,340.086 $17,523,084 $ 13,131,388 $ 76,493,170
See accompanying independent auditors' report.
120
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NON MAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Area Enterprise
Disposal Services Water Authority Transit Funds
Operating revenues:
Charges for services $ 32,811,426 $ 15,243,909 S 384,023 S 2,342,571 S 1,081,135 S 51,863,064
Miscellaneous 110,873 34,792 3,394 10,755 19,677 179,491
Total operating revenues 32,922,299 15,278,701 387,417 2,353,326 1,100,812 52,042,555
Operating expenses:
Personal services 1,641,611 18,610,644 1,102,478 108,283 21,463,016
Operating 28,636,255 9,311,144 358,240 1,911,656 7,782,798 48,000,093
Depreciation 544,757 658,859 56,329 872,676 1,068,874 3,201,495
Total operating expenses 30,822,623 28,580,647 414,569 3,886,810 8.959,95S 72,664,604
Operating income (loss) 2,099,676 (13,301,946) (27,lS2) (1.S33,484) (7,859.143) (20.622,049)
Non-operating revenues (expenses):
Operating grants and contributions 89,214 344,712 1,050 10,000 2,732,686 3,177,662
Interest income 168,598 37,689 6,190 9,388 99S 222,860
Insurance reimbursement 203,004 1,362 3,402 207,768
Change in fair value of investments (2,089) (448) (37) (300) (491 (2,923)
Interest expense (21,9741 (3,221) (25,195)
Gain on disposal of capital assets 56,205 1,841 58,046
Total non-operating revenues (expenses) 311,928 564,824 7,203 17,229 2,737,034 3,638,218
Income (loss) before
contributions and transfers 2,411,604 (12.737,122) (19,949) (l,516,2SS) (5,122,109) (16,983,831)
Capital grants and contributions 16,146 841,548 259,697 1,117,391
Transfers in 46,289 11,475,165 1,346,632 4,058,620 16,926,706
Transfers out (686,796) (3,000) (689.796)
Total transfers and contributions (640,507) 11,488,311 2,188,180 4,318,317 17,354,301
Changes in net assets 1,771,097 (1,248,811) (19,949) 671,925 (803,792) 370,470
Net assets - beginning 33,526,783 10,449,543 1,360,035 16,851,159 13,935,180 76,122,700
Net assets - ending S 35,297,880 S 9,200,732 S 1,340,086 S 17,523,084 S 13,131,388 $ 76,493,170
See accompanying independent auditors' report.
121
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NON MAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Area Enterprise
Disposal Services Water Authority Transit Funds
Cash flows from operating activities:
Cash received for services $34,3S0,4SS $ 9,635,332 $ 405,892 S 2,348,597 $ 1,107,259 47,847,535
Cash received from refundable deposits 1,102,863 7,684 1,110,547
Cash payments for goods and services (27,586,451) 13,117,675) (3S9,037) (1,933,159) (7,889,2S7) (40,88S,S79)
Cash payments to employees (1,642,8S2) (18,469,260) (1,075,580) (100,981) (21,288,673)
Cash payments on refundable deposits (1,210,9I?) (1,210,917)
Net cash provided by (used for) operating
activities 5,013,098 (11,951,603) 46,855 (6S2,458) (6,882,979) (14,427,087)
Cash flows from non-<:apltal financing activities:
Cash received from operating grants 72,522 334,478 1,050 10,000 2,603,304 3,021,354
Cash transfers from other funds 2,602,165 11,475,165 1,346,632 4,402,098 19,826,060
Cash transfers to other funds 18,818,693) (3,000) (8,821,693)
Net cash provided by {used for) non-
capital financing activities (6.144,006) 11,806,643 1,050 1,356,632 7,005,402 14,025,721
Cash flows from capital and related
financing activities:
Receipts from insurance reimbursements 203,004 1,362 3,402 207,768
Proceeds from disposal of capital assets 58,320 1,920 60,240
Proceeds from capital grants 16,146 797,612 813,758
Payments for capital acquisitions (2,848,9111 1389,947) (1,207,027) (22S,2SSI 14,671,140)
Principal payments on leases 1109,799) 116,346} 1126,14S)
Interest and fiscal agent fees paid (21,974) 13,221} (2S,195)
Net cash provided by (used for) capita!
and related financing activities (2,790,591) (3OO,6S0) (427.620) (221,8S3) (3.740,714)
Cash flows from investing activities:
Interest on investments 187,022 31,336 8,541 4,755 761 232,415
Net cash provided by (used for) investing activities 187,022 31,336 8,541 4,755 761 232,415
Net increase (decrease) in cash, cash equivalents and investments (3,734,477) (414,274) 56,446 281,309 (98,669) (3,909,66S)
Cash, cash equivalents and Investments, October 1, 2008 18,580,434 5,218,847 390,063 3,100,747 254,056 27,544,147
Cash, cash equivalents and investments, September 30,2009 $14,845,957 $ 4,804,573 $ 446,S09 $ 3,382,056 $ 155,387 $ 23,634,482
Current cash, cash equivalents and investments $14,564,821 $ 4,677,722 $ 446,509 $ 3,156,556 $ 155,387 23,000,995
Current cash, cash equivalents and investments - restricted 281,136 126,851 225,500 633,487
Cash, cash equivalents and investments, September 30, 2009 $14,845,957 $ 4,804,573 $ 446,509 $ 3,382,056 $ 155,387 $ 23,634,482
See accompanying independent auditors' report. (Continued)
122
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS (CONTINUED)
NONMAJOR ENTERPRISE FUNDS
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Total
Emergency Collier Nonmajor
Solid Waste Medical Goodland Airport Me. Enterprise
Disposal Services Water Authority Transit Funds
Operating income (loss) S 2,099,676 S {13,301,946} S (27,lS2) S (1,533,4B4) S {7,BS9,143} S {20,622,0491
Adjustments to reconcile operating income {loss} to
net cash provided by (used for) operating activities:
Depredation expense 544,757 658,859 56,329 872,676 1,068,874 3,201,495
Net changes in assets and liabilities:
Trade receivable 1,442,617 611,248 18,475 1,504 (13,230) 2.060,614
Due from other funds 1353,4B1) 197 1,724 19,677 {33t,BB3}
Due from other governments (11,659) 111,659)
Prepaid costs 18,109 18,109
Inventory (14,S56) 61,092 46,536
Accounts payable 905,960 IB,BBB) {B,144} (B2,437) 1105,6S4) 700,837
Wages payable (2,3S41 62,261 8,077 1,612 69,596
Due to other funds 384,125 214 384,339
Due to other governments 72 7,347 (lSB) {BOS} 6,456
Due to individuals (44,S96) (44,S96)
Compensated absences 1,113 79,123 17,097 5,690 103,023
Refundable deposits {10B.OS4} 7,684 1100,370)
Unearned revenue 31 16,233) {6,2021
landfill post-closure liability 98,667 98,667
Total adjustments 2,913,422 1,350,343 74,007 881,026 976,164 6,194,962
Net cash provided by (used for) operating activities S 5,013,098 S {11,951,603} S 46,855 S (6S2,4SB) S (6,882,979) $ (14,427,087)
Non-cash investing, capital and financing activities:
The nonmajor enterprise funds experienced a non-cash investing loss due to a change in the fair value of non-cash
and cash equivalents as follows:
Solid Waste Disposal S (2,OB91
Emergency Medical Services {44B}
Goodland Water {37}
Airport Authority (300)
Collier Area Transit {491
Total S (2,923)
There were non-cash contributions of $259,697 in the Collier Area Transit fund as assets with a historical cost of $288,552 when
purchased. There were also non-cash contributions of $55,049 in the Collier Area Transit fund as assets with a historical cost of
$55,049 were transferred in from another fund.
See accompanying independent auditors' report
123
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Internal Service Funds
SELF-INSURANCE - To account for the self-insurance costs of providing coverage for property,
general and vehicle liability. To account for the provisions of health benefits to Board and
participating constitutional officer employees and their dependents. To account for payment of
workers' compensation claims, in lieu of insurance.
SHERIFF'S SELF-INSURANCE - To account for the provIsions of health benefits to Sheriff
employees and their dependents. To account for payment of workers' compensation claims, in
lieu of insurance.
FLEET MANAGEMENT - To account for fuel, oil, lubricants, repairs and maintenance of County
vehicles and the use of certain County owned vehicles by County employees.
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2009
Sheriff's
Self- Self- Fleet
Insurance Insurance Management Total
ASSETS
Current assets:
Cash, cash equivalents and investments $ 31,730,72S $ 13,309,197 $ 1,172,968 $ 46,212,890
Receivables:
Trade, net 21,401 18,231 778 40,410
Interest 4S,8S4 15,917 1,228 62,999
Due from other funds 13,789 13,789
Due from other governments 38,36S 38,36S
Deposits 557,4S7 SS7,4S7
Inventory 2,6S8 S32,482 S35.140
Total current assets 32,371,884 13,343,34S 1,74S,821 47,461,050
Noncurrent assets:
Capital assets:
Depreciable capital assets, net 265,697 13.619,126 13,884,823
Total noncurrent assets 26S,697 13,619,126 13,884,823
Total assets 32,637,S81 13,343,345 15,364,947 61,34S,873
LIABILITIES
Current liabilities:
Accounts payable 108,096 481,986 590,082
Wages payable 48,126 82,804 130,930
Due to other funds 10,326 10,326
Self-insurance claims payable 3,4S3.384 2.121,000 S,574,384
Compensated absences 73,703 103.718 177,421
Total current liabilities 3,693,635 2,121,000 668,S08 6,483,143
Noncurrent liabilities:
Self-insurance claims payable 3,7S4,616 3,7S4,616
Compensated absences 18,426 25,931 44,3S7
Net pension obligation 3SS,020 1,026,4S1 1,381,471
Total noncurrent liabilities 4,128,062 1,026,4S1 25,931 S,180,444
Total liabilities 7,821,697 3,147,4S1 694,439 11,663,587
NET ASSETS
Invested in capital assets, net of related debt 26S,697 13,619,126 13,884,823
Unrestricted 24,5S0,187 1O,19S.894 I,OSI,382 3S,797,463
Total net assets $ 24,81S,884 $ 10,195,894 $ 14,670.S08 $ 49,682,286
See accompanying independent auditors' report.
126
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Sheriff's
Self- Self- Fleet
Insurance Insurance Management Total
Operating revenues:
Charges for services $ 36,818,83S $ 17,344,792 $ 7,209,069 $ 61,372,696
Insurance proceeds 1,691,111 1,691,111
Miscellaneous 7 S ,S88 49,3S0 124,938
Total operating revenues 38,58S,S34 17,344,792 7,258,419 63,188,74S
Operating expenses:
Personal services 1,069,S91 1,988,074 3,OS7,665
Operating 38.166,907 17,161,664 4,737,096 60,06S,667
Depreciation 19,481 S61,76S S81,246
Total operating expenses 39,25S,979 17,161,664 7,286,93S 63,704,S78
Operating income (loss) (670,44S) 183,128 (28,S16) (SlS,833)
Non-operating revenues (expenses):
Interest income 101,644 80,091 2,494 184,229
Insurance reimbursement 201 201
Change in fair value of investments (3,732) 17,339 (74) 13,S33
Gain on disposal of capital assets 6,421 6,421
Total non.operating revenues (expenses) 97,912 97,430 9,042 204,384
Income (loss) before contributions (572,S33) 280,SS8 (19,474) (311,449)
Transfers in 14,239 14,239
Transfers out (17,748) (17,748)
Total transfers (3,S09) (3,S09)
Change in net assets (S72,S33) 280,S58 (22,983) (314,9S8)
Net assets - beginning 2S,388,417 9,91S,336 14,693,491 49,997,244
Net assets - ending $ 24,81S,884 $ 10,19S,894 $ 14,670,S08 $ 49,682,286
See accompanying independent auditors' report.
127
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Sheriff's
Self- Self- Fleet
Insurance Insurance Management Total
Cash flows from operating activities:
Cash received from other funds for services $ 31,992,878 $ 17,000,000 $ 7,227,564 $ 56,220,442
Cash received from employees for services 4,822,494 4,822,494
Cash received from insurance 2,053,880 2,053,880
Cash received from other governments for services 93,314 93,314
Cash received from retirees for services 746,237 444,792 1,191,029
Cash payments on behalf of retirees (790,748) (298,048) (1,088,796)
Cash payments for goods and services (39,300,830) (16,118,478) (4,869,101) (60,288,409)
Cash payments to employees (1,050,677) (1,972,832) (3,023,509)
Net cash provided by (used for)
operating activities (1,526,766) 1,028,266 478,945 (19,555)
Cash flows from capital and related
financing activities:
Receipts from insurance reimbursements 201 201
Proceeds from disposal of capital assets 8,400 8,400
Payments for capital acquisitions (5,823) (77,210) (83,033)
Net cash used for capital and related
financing activities (5,823) (68,609) (74,432)
Cash flows from Investing activities:
Interest on investments 52,058 81,513 1,192 134,763
Net cash provided by investing activities 52,058 81,513 1,192 134,763
Net increase (decrease) in cash, cash equivalents
and investments (1,480,531) 1,109,779 411,528 40,776
Cash, cash equivalents and investments, October 1, 2008 33,211,256 12,199,418 761,440 46,172,114
Cash, cash equivalents and investments, September 30, 2009 $ 31,730,725 $13,309,197 $ 1,172,968 $ 46,212,890
See accompanying independent auditors' report. (Continued)
128
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Sheriffs
Self. Self. Fleet
Insurance Insurance Management Total
Operating income (loss) $ (670,445) $ 183,128 $ (28,S16) $ (515,833)
Adjustments to reconcile operating income (loss) to net
cash provided (used for) by operating activities:
Depredation expense 19,481 561,765 581,246
Net changes in assets and liabilities:
Trade receivable 362,769 241,555 (778) 603,546
Due from other funds (13,789) 100,000 18,495 104,706
Due from other governments 44,742 44,742
Deposits (44,511) (44,511)
Inventory 997 (116,010) (115,013)
Accounts payable (225,162) (15,931) (241,093)
Wages payable 8,266 7,527 15,793
Due to other funds 10,071 10,071
Due to other governments (64) (64)
Compensated absences 10,648 7,715 18,363
Self-insurance claims payable (984,000) 27,000 (957,000)
Net pension obligation (1,091) 476,583 475,492
Total adjustments (856,321) 845,138 507,461 496,278
Net cash provided by (used for)
operating activities $ (1,526,766) $ 1,028,266 $ 478,945 $ (19,555)
Non~cash Investing, capital and financing activities:
The internal service funds experienced a net non-cash investing gain due to a change in the fair value of non.cash
and cash equivalents as follows;
Self-Insurance $ (3,732)
Sheriff's Self-Insurance 17,339
Fleet Management (74)
Total $ 13,533
There were non.cash capital asset transfers of $14,239 in the Fleet Management fund, as assets with a historical cost
of $162,074 and accumulated depreciation of $147,835 were transferred in from other governmental funds. There were
non-cash capital asset transfers out of $17,748 in the Fleet Management fund, as assets with a historical cost of $18,049
and accumulated depreciation of $301 were transferred out to other governmental funds.
See accompanying independent auditors' report.
129
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Fiduciary Funds
CLERK OF COURTS AGENCY FUND - To account for monies held in Trust by the Clerk of the Circuit
Court prior to disbursement.
SHERIFF AGENCY FUND - To account for monies held in a custodial capacity by the Sheriff.
TAX COLLECTOR AGENCY FUND - To account for assets held by the Tax Collector prior to legal
disbursement.
DEPOSITS AGENCY FUND - To account for monies held by the County for businesses and
individuals.
PINE RIDGE AND NAPLES PRODUCTION PARK AGENCY FUND - To account for the receipt of
special assessments and the payment of principal and interest on behalf of assessment holders.
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
SEPTEMBER 30, 2009
Pine Ridge
Clerk Tax and Naples
of Courts Sheriff Collector Deposits Production Park
ASSETS Agency Fund Agency Fund Agencv Fund Agency Fund Agency Fund Total
Cash, cash equivalents and investments $ 18,806,440 $ 437,552 $ 6,525.291 $ 3,198,679 $ 822,683 $ 29,790,645
Receivables:
Interest 4,463 4,207 8,670
Other 17,770 19,269 37,039
Total assets $ 18.806,440 $ 437,552 $ 6,543,061 $ 3,203,142 $ 846,159 $ 29,836,354
LIABILITIES
Due to other governments $ 1,547,662 $ 66,814 $ 5,049,175 $ $ $ 6.663,651
Due to individuals 370,738 1,493,886 1,864,624
Refundable deposits 17,258,778 3,203,142 20,461,920
Due to special assessment holders 846,159 846,159
Total liabilities $ 18,806.440 $ 437 ,552 $ 6,543,061 $ 3,203,142 $ 846,159 $ 29.836,354
See accompanying independent auditors' report.
132
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
Dctober 1 Additions Deductions September 30
Clerk of Courts AR'encv Fund
Assets:
Cash, cash equivalents and investments S 17,848,166 S 106,219,801 $ 10S,261,527 $ 18,806,440
Total assets $17,848,166 $ 106,219,801 $ 10S,261,S27 $ 18,806,440
Liabilities:
Due to other governments $ 1,43S,741 $ 8,630,481 $ 8,518,S60 $ 1,S47,662
Refundable deposits 16,412,42S 97,S89,320 96,742,967 17,258,778
Total liabilities $17,848,166 $ 106,219,801 $ 105,261,527 $ 18,806,440
Sheriff AlZencv Fund
Assets:
Cash, cash equivalents and investments $ 426,505 $ 4,275,24S $ 4,264,198 $ 437,552
Receivable:
Other 1,88S 1,885
Total assets $ 428,390 $ 4,27S,24S $ 4,266,083 $ 437,SS2
Liabilities:
Due to other governments $ 70,S96 S 410,634 $ 414,416 S 66,814
Due to individuals 3S7,794 737,624 724,680 370,738
Total liabilities $ 428,390 $ 1,148,258 $ 1,139,096 $ 437,552
Tax Collector Ae:encv Fund
Assets:
Cash, cash equivalents and investments $ 4,927,906 $ 973,471,479 $ 971,874,094 $ 6,S2S,291
Receivable:
Other 5,777 2,011,545 1,999,SS2 17,770
Total assets $ 4,933,683 $ 97S,483,024 $ 973,873,646 $ 6,S43,061
Liabilities:
Due to other governments $ 3,469,368 $ 924,014,304 $ 922,434,497 $ S,049,175
Due to individuals 1,464,315 45,580,709 45,SSl,138 1,493,886
Total liabilities $ 4,933,683 $ 969,595,013 $ 967,985,635 $ 6,543,061
DeDosits AlZencv Fund
Assets:
Cash, cash equivalents and investments $ 3,569,302 $ 603,946 $ 974,569 $ 3,198,679
Receivables:
Interest 4,463 4,463
Total assets $ 3,569,302 $ 608,409 $ 974,569 $ 3,203,142
Liabilities:
Refundable deposits S 3,S69,302 $ 608,409 S 974,569 S 3,203,142
Total liabilities $ 3,569,302 $ 608,409 $ 974,569 $ 3,203,142
(Continued)
133
COLLIER COUNTY, FLORIDA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
October 1 Additions Deductions September 30
Pine Ridee and NaDles Production Park Allencv Fund
Assets:
Cash, cash equivalents and investments $ S,906,927 $ 1,102,135 $ 6,186,379 $ 822,683
Receivables:
Interest 31,275 4,207 31,275 4,207
Other 34,793 19,269 34,793 19,269
Total assets $ 5,972,99S $ 1,12S,611 $ 6,252,447 $ 846,lS9
Liabilities:
Due to special assessment holders $ 5,972,995 $ 1,12S,611 S 6,252,447 S 846,lS9
Total liabilities $ 5,972,99S $ 1,12S,611 $ 6,252,447 $ 846,lS9
Total - All ARencv Funds
Assets:
Cash, cash equivalents and investments $ 32,678,806 $1,08S,672,606 $ 1,088,S60,767 $ 29,790,645
Receivables:
Interest 31,275 8,670 31,27S 8,670
Other 42,455 2,030,814 2,036,230 37,039
Total assets $ 32, 7S2,536 $1,087,712,090 $ 1,090,628,272 $ 29,836,3S4
Liabilities:
Due to other governments $ 4,975,705 $ 933,055,419 $ 931,367,473 $ 6,663,651
Due to individuals 1,822,109 46,318,333 46,275,818 1,864,624
Refundable deposits 19,981,727 98,197,729 97,717,536 20,461,920
Due to special assessment holders 5,972,99S 1,125,611 6,2S2,447 846,lS9
Total liabilities $ 32,752,S36 $1,078,697,092 $ 1,081,613,274 $ 29,836,3S4
See accompanying independent auditors' report.
134
Component Units
COLLIER COUNTY HOUSING FINANCE AUTHORITY - The authority was established for the
purpose of stimulating the construction of residential housing for low and moderate income
families through the use of public financing.
COLLIER COUNTY HEALTH FACILITIES AUTHORITY - The authority was established for the
purpose of assisting health facilities in the acquisition, construction and financing of projects
within the County.
COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY - The authority was established for
the purpose of facilitating projects that promote economic growth and opportunities for
employment in Collier County.
COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY - The authority was established for the
purpose of assisting institutions of higher education in the construction, financing and refinancing
of projects.
COLLIER COUNTY, FLORIDA
COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
Housing Health Industrial Educational
Finance Facilities Development Facilities
Authority Authority Authority Authority Totals
ASSETS
Cash, cash equivalents and investments $ 313,661 $ 166,360 $ 3,S09 $ 2,617 $ 486,147
Total Assets $ 313,661 $ 166,360 $ 3,S09 $ 2,617 $ 486,147
NET ASSETS
Net assets - unrestricted $ 313,661 $ 166,360 $ 3,509 $ 2,617 $ 486,147
Total Net Assets $ 313,661 $ 166,360 $ 3,509 $ 2,617 $ 486,147
See accompanying independent auditors' report.
136
COLLIER COUNTY, FLORIDA
COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
FUNCTIONS/PROGRAMS
Expenses
146 $
410
15,931
16,487 $
Industrial Development Authority
Health Facilities Authority
Housing Finance Authority
Educational Facilities Authority
$
Total
$
General revenues:
Interest income
Total general revenues
Change in net assets
Net assets. beginning
Net assets. ending
See accompanying independent auditor's report.
Program Revenues
Fees, Fines and
Charges for
Services
137
Net (Expense)
Revenue and Changes
in Net Assets
Governmental
Activities
$
(146)
(410)
(15,931)
(16,487)
$
934
934
(1S,S53)
501,700
486,147
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STATISTICAL SECTION (UNAUDITED)
Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may
present non-accounting data. These schedules reflect social and economic data, and financial trends of Collier County,
Florida.
CONTENTS
PAGE
FINANCIAL TRENDS
These schedules contain trend information to help the reader understand how the government's
financial performance and wellbeing have changed over time.
Net assets by component
Change in net assets
Governmental activities tax revenues by source
Fund balances of governmental funds
Changes in fund baiance of governmental funds
142
143
145
146
147
REVENUE CAPACITY
These schedules contain information to help the reader assess the Country's most significant local
revenue source, the Property Tax.
Assessed value and estimated actual vaiue of taxable property
Property Tax Rates - All direct and overlapping governments
Principal Taxpayers County-wide
Property Tax levies and collections
148
149
150
151
DEBT CAPACITY
These schedules present information to help reader assess the affordability of the County's current
levels of outstanding debt and the County's ability to issue additional debt in the future.
Ratios of outstanding debt by type
Ratios of general bonded debt outstanding
Legal debt margin information
Direct and overlapping governmental activities debt
Piedged-revenue coverage
152
153
154
154
155
DEMOGRAPHIC AND ECONOMIC INFORMATION
These schedules offer demographic and economic indicators to help the rear understand the
environment within which the County's financial activities take place.
Demographic and economic statistics
Principal employers
156
157
OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how the
information in the County's financial report relates to the services the County provides and the
activities it performs.
Full-time equivalent County employees by function
Operating indicators by function
Capital Asset statistics by function/program
158
159
160
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant
year. The County implemented GASB 34 for fiscal year 2002. Schedules presenting government-wide information include information beginning
in that fiscal year,
COLLIER COUNTY, flORIDA
NET ASSETS BY COMPONENT
LAST EIGHT FISCAL YEARS (1)
(accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
Fiscal Year
2009 2008 2007 2006 2005 2004 2003 2002
Governmental Activities:
Invested in capital assets, net of related debt $ 1,131,617 $1,032,553 $ 881,941 $ 682,738 $ 581,064 $ 511,101 $ 455,255 $ 387,956
Restricted 240,247 295,012 244,746 205,403 148,587 142,306 103,280 83,292
Unrestricted 192,442 199,031 317,821 318,092 275,815 175,297 104,170 96,360
Total governmental activities net assets $1,564,306 $1,526,596 $1,444,508 $1,206,233 $1,005,466 $ 828,704 $ 662,705 $ 567,608
Business-type Activities:
Invested in capital assets, net of related debt $ 653,320 $ 658,865 $ 630,015 $ 595,722 $ 542,574 $ 519,320 $ 479,705 $ 401,329
Restricted 31,227 30,165 30,746 28,087 21,243 11,642 12,045 9,968
Unrestricted 149,422 113,761 83,038 77,206 90,608 77,563 80,307 132,908
Total business-type activities net assets $ 833,969 $ 802,791 $ 743,799 $ 701,015 $ 654,425 $ 608,525 $ 572,057 $ 544,205
Primary Government:
Invested in capital assets, net of related debt $1,784,937 $1,691,418 $ 1,511,956 $1,278,460 $1,123,638 $1,030,421 $ 934,960 $ 789,285
Restricted 271,474 325,177 275,492 233,490 169,830 153,948 115,325 93,260
Unrestricted 341,864 312,792 400,859 395,298 366,423 252,860 184,477 229,268
Total primary government net assets $ 2,398,275 $2,329,387 $ 2,188,307 $1,907,248 $1,659,891 $1,437,229 $1,234,762 $ 1,111,813
(I) Only eight fiscal years are available due to the implementation of GA5B 34 in fiscal year 2002.
140
COLLIER COUNTY, FLORIDA
CHANGE IN NET ASSETS
LAST EIGHT FISCAL YEARS (1)
(accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
FiscaJYear
2009 2008 2007 2006 2005 2004 2003 2002
Expenses
Governmental activities:
General government 113,906 $ 112,720 110,814 $ 100,219 $ 85,182 $ 81,150 $ 67,885 $ 66,635
Public safety 182,962 183,288 182,821 187,945 140,761 133,930 114,207 103,718
Transportation 64,601 65,980 54,198 48,986 43,714 33,970 35,255 28,718
Culture and recreation 45,727 43,435 41,595 34,348 30,329 25,405 25,640 31,809
Other activities 45,367 49,135 44,500 35,838 31,713 24,110 24,528 29,288
Interest on long-term debt 20,492 21,446 21,779 25,841 14,507 8,566 5,697 3,109
Total governmental activities expenses 473,055 476,004 455,707 433,177 346,206 307,131 273,212 263,277
Business-type activities:
Water and Sewer 90,042 85,503 89,908 77,049 64,044 60,723 57,248 51,547
Solid Waste 30,774 30,024 32,033 32,920 24,420 23,036 20,317 21,210
Airport Authority 3,895 5,082 4,296 3,978 3,625 3,346 3,027 3,020
Mass Transit 8,974 9,419 7,761 6,000
Emergency Medical Services 28,645 30,160 27,305 22,541 20,887 19,114 18,279 14,653
Total bUSiness-type activities expenses 162,330 160,188 161,303 142,488 112,976 106,219 98,871 90,430
Total primary government expenses $ 635,385 $ 636,192 $ 617,010 $ 575,665 $ 459,182 $ 413,350 $ 372,083 $ 353,707
Program Revenues
Governmental activities:
Charges for services:
General government $ 32,257 $ 36,468 $ 46,380 $ 47,178 $ 45,433 $ 37,967 $ 26,188 $ 20,418
Public safety 11,940 12,545 14,293 20,547 18,392 15,127 16,811 15,205
Transportation 3,101 3,936 1,902 1,733 667 9S9 3,423 639
Culture and recreation 9,830 8,429 7,494 5,878 5,050 4,416 4,151 3,637
Other activities 1,620 7,541 2,395 2,938 2,869 2,114 2,556 3,268
Operating Grants and Contributions 21,948 20,202 27,309 43,062 15,151 19,760 10,008 12,531
Capital Grants and Contributions 24,867 52,303 122,327 99,068 104,711 97,370 55,979 35,332
Total governmental activities program revenues 105,563 141,424 222,100 220,404 192,273 177,713 119,116 91,030
Business-type activities:
Charges for services:
Water and Sewer 104,927 100,030 92,091 81,088 73,686 65,151 58,955 50,455
Solid Waste 32,922 36,495 33,864 33,713 23,661 21,938 20,698 21,121
Airport Authority 2,353 3,547 2,860 2,459 2,288 1,878 1,580 1,425
Mass Transit 1,101 1,074 1,153 814
Emergency Medical Services 15,281 16,167 14,823 14,326 12,855 10,904 7,912 6,783
Operating Grants and Contributions 3,235 4,393 2,657 3,138 16S 31 S9 116
Capital Grants and Contributions 18,147 23,333 32,647 36,496 30,490 32,040 26,325 31,458
Total business-type activities program revenues 177,966 185,039 180,095 172,034 143,145 131,942 115,529 111,358
Total primary government program revenues 283,529 326,463 402,195 392,438 335,418 309,655 234,645 202,388
Net (expense)/revenue:
Governmental activities (367,492) (334,580) (233,607) (212,773) (153,933) (129,418) (154,096) (172,247)
Business-type activities 15,636 24,851 18,792 29,546 30,169 25,723 16,658 20,928
Total primary government net expense $ (351,856) $ (309,729) $ (214,815) $ (183,227) $ (123,764) $ (103,695) $ (137,438) $ (151,319)
141
COLLIER COUNTY, FLORIDA
CHANGE IN NET ASSETS
LAST EIGHT FISCAL YEARS (CONTINUED)
(accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
Fiscal Year
2009 Z008 2007 2006 2005 2004 2003 2002
General Revenues and Other Changes
In Net Assets
Governmental ActIvIties:
Taxes
Property taxes $ 313,290 $ 327,245 $ 345,054 $ 293,240 $ 237,452 $ 213,353 $ 174,291 $ 147,753
Gas taxes 18,456 18,860 19,598 20,028 20,127 19,887 17,731 17,333
Sales taxes 26,779 30,004 32,568 34,571 32,949 31,323 27,846 26,611
Tourist taxes 12,345 14,796 14,228 13,629 10,484 9,720 8,377 8,184
Other taxes 12,241 4,051 8,754 9,142 7,089 5,796 5,604 4,893
State revenue sharing 7,927 8,976 9,652 9,410 8,555 7,973 7,190 6,811
Interest income 11,488 34,533 43,109 38,455 16,732 12,216 10,693 16,253
Change in fair value of investments (331 (803} 5,822 (2,067) (2,780) (5,813) 476 (2,111)
Miscellaneous 12,066 10,642 8,223 10,261 10,671 8,491 3,525 6,409
Special item -registry bond 3,239 (3,288)
Transfers, net (12,596) (28,348) {15,126) (13,229) (10,584) (7,529) (6,540) (15,703)
Total governmental activities 405,202 416,668 471,882 413,540 330,695 295,417 249,193 216,433
Business-type Activities:
Interest income 2,410 5,928 6,907 4,139 5,610 4,348 3,903 9,288
Change in fair value of investments (15) (212) 1,339 (324) (463) (1,417) 1S4 (1,415)
Misceilaneous 5S1 77 620 285 S97 799
Transfers, net 12,596 28,348 15,126 13,229 10,584 7,529 6,540 15,703
Total business-type activities 15,542 34,141 23,992 17,044 15,731 10,745 11,194 24,375
Total primary government $ 420,744 $ 450,809 $ 495,874 $ 430,584 $ 346,426 $ 306,162 $ 260,387 $ 240,808
Change in Net Assets
Governmentalactivlties $ 37,710 $ 82,088 $ 238,275 $ 200,767 $ 176,762 $ 165,999 $ 95,097 $ 44,186
Business-type activities 31,178 58,992 42,784 46,590 45,900 36,468 27,852 45,303
Total primary government $ 68,888 $ 141,080 $ 281,059 $ 247,357 $ 222,662 $ 202,467 $ 122,949 $ 89,489
(1) Only eight fiscal years are available due to the implementation of GASB 34 in fiscal year 2002.
142
COLLIER COUNTY, FLORIDA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST EIGHT FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
Fiscal Property Gas Sales Tourist Other
Year Tax Tax Ta. Tax Taxes (1) Total
2002 $ 147,753 $ 17,333 $ 26,611 $ 8,184 $ 4,893 $ 204,774
2003 174,291 17,731 27,846 8,377 5,604 233,849
2004 213,353 19,887 31,323 9,720 5,796 280,079
2005 237,452 20,127 32,949 10,484 7,089 308,101
2006 293,240 20,028 34,671 13,629 9,142 370,710
2007 345,054 19,598 32,568 14,228 8,754 420,202
2008 327,245 18,860 30.004 14,796 4,051 394,956
2009 313,290 18,456 26.779 12,345 12,241 383,111
(1) Pursuant to the Uniform Accounting System direction from the State of Florida, the Communications Services Tax was
shown with fees, fines and charges for services for fiscal year 2008, this changed in 2009.
143
COLLIER COUNTY, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST EIGHT FISCAL YEARS
(modified accrual basis of accounting)
(amounts expressed in thousands)
(unaudited)
Fiscal Year
2009 2008 2007 2006 2005 2004 2003 2002
General fund
Reserved $ 8,962 $ 6.602 $ 3,706 $ 963 $ 363 $ 468 $ 894 $ 980
Unreserved 38,924 61,953 77,619 65,938 58,891 52,836 40,537 27,812
Total general fund $ 47,886 $ 68.SSS $ 81,325 $ 66,901 $ 59,254 $ S3,304 $ 41,431 $ 28,792
All other governmental funds
Reserved $ 105,991 $ 142,728 $ 294,512 $ 197,303 $ 212,521 $ 131,531 $ 79,643 $ 33,547
Unreserved, reported in:
Special revenue funds 114,208 128,966 124,213 117,489 10S,721 72,943 48,558 57,317
Debt service funds 1,587 1,951 2,621 5,634 3,891 4,389 4,405 4,653
Capita! projects funds 140,544 160,736 107,888 258,851 253,578 109,503 114,467 23,923
Total all other governmental funds $ 362,330 $ 434,381 $ 529,234 $ S79,277 $ S7S,711 $ 318.366 $ 247,073 $ 119,440
144
COLLIER COUNTY, flORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST EIGHT FISCAL YEARS
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2009 2008 2007 2006 2005 2004 2003 2002
Revenues:
Taxes $ 348,780 $ 357,656 $ 380,983 $ 327,605 $ 268,536 $ 242,562 $ 200,398 $ 172,991
Licenses and permits 8,189 17,373 15,537 23,630 21,227 18,071 13,377 12,962
Intergovernmental 69,883 77,452 93,186 113,128 74,537 71,554 64,352 57,485
Charges for services 35,928 40,699 46,127 43,083 41,451 31,383 27,444 22,082
Fines and forfeitures $,916 3,786 4,081 4,835 4,407 6,848 6,854 6,112
Interest income 11,303 34,331 42,711 38,174 16,658 12,146 10,648 16,137
Change in fair value of investments (47) (7S1) 5,551 (1,992) (2,683) (S,S41) 476 (1.99S)
Impact fees 17,761 36,679 84,792 72,705 75,617 68,950 62,795 34,065
Special assessments 2,853 2,942 3,240 1,264 3,680 2,643 2,390 2,516
Miscellaneous 11,344 10,667 7,337 9,074 9,922 8,490 7,713 5,607
Total revenues 511,910 580,834 683,545 631,506 513,352 457,106 396,447 327,962
Expenditures:
Current:
General government 95,689 96,898 96,483 83,821 73,992 67,831 65,095 61,137
Public safety 168,592 175,743 168,602 177,933 135,110 124,276 116,572 104,234
Physical environment 10,608 9,314 11,760 9.799 11,644 5,958 9,528 12,056
Transportation 41,171 48,253 39,105 33,735 32,911 24,273 28,116 20,295
Economic environment 12,125 12,619 10,241 4,719 5,981 6,439 6,945 6,632
Human services 11,277 12,855 12,237 11,819 11,810 9,576 9,721 8,343
Culture and recreation 37,212 36,456 35,325 29,172 26,238 23,145 22,449 22,543
Debt service:
Principal 48,085 43,080 36,144 20,977 14,374 14,247 8,585 29,243
Interest and other fiscal charges 21,614 21,981 22,468 22,569 14,304 10,049 6,925 4,856
Capital outlay 176,681 285,809 290,581 255,569 174,640 170,145 78,201 96,952
Total expenditures 623,054 743,008 722,946 650,113 501,004 455,939 352,137 366,291
Excess (defiCit) of revenues
over (under) expenditures (111,144) (162,174) (39,401) (18.607) 12,348 1,167 44,310 (38,329)
Other financing sources (uses):
Bonds issued 13,244 6,215 296,270 49,360 102,125 47,430
Premiums on bonds issued 31 16,785 4,703
Payment to refunding escrow (4,SOO) (60,027) (S,078) (3,6Sa)
Capital leases 1,048 16 28
Loans issued 13,500 69,391 22,390 40,466 8,000 45,245 8,250
Sale of capital assets 301 245 36S 940
Insurance proceeds 7S3 208 88S 792
Transfers in 143,275 144,824 166,113 154,580 97,632 84,508 57,020 37,685
Transfers out (lSS.888) (163.07S) (181,471) (168.006) (107.729) (92.036) (64.228) (53.517)
Total other financing sources (uses) 15,185 57,839 3,782 29,820 250,947 81,999 95,962 39,876
Special item - registry bond 3,239 (3.288)
Net change in fund balances $ (92.720) $ (107,623) $ (3S.619) $ 11,213 $ 263,295 $ 83,166 $ 140,272 $ 1,547
Debt service as a percentage of noncapital
expenditures 15.61% 14.23% 13.56% 11.04% 8.79% 8.50% 5.66% 12.66%
145
COLLIER COUNTY, FLORIDA
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST EIGHT FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
Total Estimated Assessed
Fiscal Year Centrally less: Total Taxable Direct Actual Valuel as a
Ended Residential Personal Assessed Tax Assessed Tax Taxable Percentage of
September 30, Property Property Property Exempt Value Rate Value Actual Value
2002 S 36,089.299 S 1,651,435 S 110 S 4,345,843 S 33,39S,001 13.0881 S 37,740,844 100%
2003 42,635,220 1,770,370 113 4,915,279 39,490,424 12.8418 44,405,703 100%
2004 49,712,793 1,802,265 117 5,529,447 45,985,728 12.6800 51,515,175 100%
2005 55,370,248 1,820,777 127 5.928.339 51,262,813 12.3711 57,191,152 100%
2006 66,375,040 1,956,646 143 6,890,007 61,441,822 12.2586 68,331,829 100%
2007 82,909,061 2,156,726 202 8,023,791 77,042,198 11.5139 85,065,989 100%
2008 88,819,491 2,321,048 226 8,575,874 82,564,891 10.7366 91,140,765 100%
2009 86,949,935 2,430,996 202 10,718,166 78,662,967 10.3120 89,381,133 100%
Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1.
Therefore, assessments and levies applicable to a certain tax year are collected in the fjscal year ending during the next succeeding
calendar year.
trhe basis of assessed value required by the state is 100% of actual value.
Source: Property Appraiser Recapitulation Report
146
COLLIER COUNTY, FLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
LAST EIGHT FISCAL YEARS
(unaudited)
Collier County Other
Special Debt County
Fiscal General Revenue Service School Independent
Year Fund Funds Funds Total District Districts Total
2002 3.8772 0.6670 0.0256 4.5698 7.1370 1.3813 13.0881
2003 3.8772 0.6767 0.0215 4.5754 6.9110 1.3554 12.8418
2004 3.8772 0.9226 0.0000 4.7998 6.5240 1.3562 12.6800
2005 3.8772 0.9177 0.0000 4.7949 6.2200 1.3562 12.3711
2006 3.8772 0.9161 0.1500 4.9433 5.9730 1.3423 12.2586
2007 3.5790 0.8470 0.2226 4.6486 5.5250 1.3403 11.5139
2008 3.1469 0.7362 0.2233 4.1064 5.3510 1.2792 10.7366
2009 3.1469 0.7528 0.2249 4.1246 4.9090 1.2784 10.3120
Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1
and taxes based on those assessments are levied according to the tax rate in effect that tax year and
become due on November 1. Therefore, assessments and levies applicable to a certain tax year are
collected in the fiscal year ending during the following calendar year.
Sources: Property Appraiser Recapitulation Report.
Collier County 2009 Annual Budget
147
COLLIER COUNTY, FLORIDA
PRINCIPAL TAXPAYERS COUNTY-WIDE
2009 TAX ROLL
(amounts expressed in thousands)
(unaudited)
2009 2000
Property Percent of Property Percent of
Taxes Total Taxes Total
Owner/Taxpayer levied Rank Taxes Levied levied Rank Taxes Levied
Florida Power & Ught Company $ 2.547,742 1 0.30% $ 1,880.906 1 0.49%
HHR Naples LlC 1.630.872 2 0.19%
1 Embarq Corporation 1.357,067 3 0.16% 1,633,283 2 0.42%
City National Bank of Miami 1.035,745 4 0.12% 1.030,895 5 0.27%
Coastland Center Joint Venture 947,585 5 0.11% 1.150.637 3 0.30%
Naples HMA, Inc. 890,173 6 0.10%
Collier HMA, Inc. 886,172 7 0.10%
Wal-Mart Stores East LP 8S5,614 8 0.10%
The Moorings, Inc. 798,946 9 0.09%
Lee County Electric Co-OPt inc. 796,260 10 0.09% 488,507 9 0.13%
HMC BN LTD Partnership 1,125,965 4 0.29%
Collier Development Corporation 616,816 6 0.16%
Marco Island Utilities 58S,528 7 0.15%
lutgert TR, Raymond l S37,744 8 0.14%
Marco Beach Hotel, Inc. 402,409 10 0.10%
Total $ 11,746,176 1.36% $ 9,452.690 2.45%
Total Property Taxes Levied $ 857,168,443 $ 386,6S4.045
Amounts for taxpayers with similar names have not been combined.
Source: Property Appraiser's taxpayer listing in order of taxes levied.
Property Appraiser Recapitulation Report.
1 Embarq was Sprint in 1998
148
COLLIER COUNTY, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST EIGHT FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
Fiscal Year Total Tax Collected within the
Ended levy for Fiscal Year of the Levy Collections in Total Collections to Date
September 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy
2002 $ 1S7,744 $ 146,033 92.6% $ 136 $ 146,169 92.7%
2003 185,633 174,116 93.8% 325 174,441 94.0%
2004 225,773 213,009 94.3% 240 213,249 94.5%
200S 251,772 237,184 94.2% 98 237,282 94.2%
2006 307,068 293,129 9S.5% 109 293,238 95.5%
2007 362,568 344,945 95.1% 1,522 346,467 95.6%
2008 343,906 325,722 94.7% 1,191 326,913 95.1%
2009 329,070 312,096 94.8% 312,096 94.8%
Source: Tax Collector Annual Report
149
COLLIER COUNTY, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST EIGHT FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
Governmental Activities Business-type Activities
General loans and loans and Total Percentage
Fiscal Obligation Revenue Notes Capital Revenue Notes Capital Primary of Personal Per
Year Bonds Bonds Payable Leases Bonds payable leases Government Incomel Capital
2002 $ 795 $ 85,185 $ 9,2S6 $ 791 $ 78,725 $ 40,369 $ 327 $ 215.448 2.11% 848
2003 176,775 8,486 279 71,505 55,335 16S 312,545 2.86% 1,179
2004 208,980 51,649 108 66,860 74,545 73 402,215 3.47% 1,458
200S 32,815 444,375 14,030 82 62,515 113,067 25 666.909 5.61% 2,331
2006 29,530 429,735 51,546 1,029 58,060 124,629 694,529 5.46% 2,341
2007 25,815 409,620 57,331 897 163,630 106,932 68 764,293 5.02% 2,483
2008 27,830 394,145 103,461 752 1S8,885 103,903 618 789,594 4.39% 2,521
2009 36,719 377,940 89,590 599 153,980 106,935 492 766,255 3.86% 2,443
lSee the Schedule of Demographic and Economic Statistics for personal income and population data.
150
Fiscal
Year
COLLIER COUNTY, FLORIDA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST EIGHT FISCAL YEARS
(unaudited)
Percentage of
Estimated
General less: Amounts Actual Taxable
Obligation Available in Debt Valuelof Per
Bonds Service Fund Total Property Capita2
$ 795,000 $ 76,461 $ 718,539 0.002% 3
2002
2003
2004
2005
2006
2007
2008
2009
32,815,000 21,935 32,793,065 0.064% 107
29,530,000 22,576 29,507,424 0.048% 90
25,815,000 4,312 25,810,688 0.034% 77
27.830,000 374,496 27,455,504 0.033% 82
36,719,204 451,641 36,267,563 0.046% 109
lSee the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
2See the Schedule of Demographic and Economic Statistics population data.
151
COLLIER COUNTY, FLORIDA
LEGAL DEBT MARGIN INFORMATION
AS OF SEPTEMBER 30, 2009
(unaudited)
The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit.
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2009
(unaudited)
Governmental Entity
Net Debt
Outstanding (1)
Percentage
Applicable to This
Governmental Unit
Direct Debt:
Debt repaid with property taxes: County
s
36,477,347
100.00%
OverlaooinR:
Overlapping debt for governmental entities within Collier County is not presented.
(1) Excludes amounts available in Debt Service Funds for payment of interest and principal.
152
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153
COLLIER COUNTY, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST EIGHT FISCAL YEARS
(amounts expressed in thousands)
(unaudited)
Per Capita
Fiscal Personal Personal Median School Unemployment
Year Population(l) Income(2) Income(2) Age(3) Enrollment(4) Rate(5)
2002 264,475 $ 10,197,520 $ 40,121 40.5 37,110 4.2%
2003 284,918 10,940,352 41,269 44.1 38,196 4.7%
2004 292,466 11,601,373 42,050 45.2 40,416 3.9%
2005 306,186 11,878,015 41,513 45.6 41,232 3.6%
2006 326,658 12,711,343 42,846 44.7 43,000 2.7%
2007 333,858 15,236,905 49,492 44.5 42,722 3.5%
2008 332,854 17,990,169 57,446 44.8 42,711 5.5%
2009 333,032 19,846,737 63,276 45.1 42,822 10.0%
Sources: (1) www.fred.labormarketinfo.com
(2) University of Florida, Bureau of Economic and Business Research,
Per Capita and Total Personal Income revised by Department of Commerce, 2007
(3) Florida Statistical Abstract (Table 1.51) 2008
(4) Collier County School Board, based on full time equivalent enrollment
(5) www.fred.labormarketinfo.com
154
COLLIER COUNTY, FLORIDA
PRINCIPAL EMPLOYERS
(Unaudited)
2009 2000
Percent of Percent of
Total County Total County
Employer Employees Rank Employment Employees Rank Employment
NCH Healthcare System 5,000 1 4.29% 2,200 3 2.15%
Collier County Public Schools 4,728 2 4.06% 4,114 1 4.02%
Publix Supermarkets 3,246 3 2.79% 1,755 4 1.71%
Marriott Corporation 2,328 4 2.00% 860 5 0.84%
Collier County Government (excl. Sheriff) 2,276 5 1.95% 2,855 2 2.79%
Wal-Mart 1,715 6 1.47%
Collier County Sheriffs Office 1,387 7 1.19% 1,074 7 1.05%
Winn Dixie Stores, Inc. 1,014 8 0.87% 760 6 0.74%
Home Depot 1,012 9 0.87%
Gargiulo Inc. 800 10 0.69%
Ritz Carlton Hotel 758 8 0.74%
Registry Resort 600 9 0.59%
Bentley Resort 475 10 0.46%
Other employers 93,039 79.82% 86,890 84.91%
Totals 116,545 100.00% 102,341 100.00%
Sources: Economic Development Council Collier County, 2009
Collier County Finance Department and Collier County Sheriff Finance Department
2000 Collier County Adopted Budget
Florida Department of Labor & Employment; Bureau of Labor Market Information ES-202 report for 2000 and 2008.
155
COLLIER COUNTY, flORIDA
FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION
LAST SIX FISCAL YEARS.
(unaudited)
Fiscal Year
2009 2008 2007 2006 2005 2004
Function:
General government 1,182 1,127 1,300 1,264 1,225 1,126
Public safety 1,103 1,118 1,117 1,144 1,000 987
Physical environment 64 65 73 67 57 58
Transportation 234 254 268 244 265 253
Economic environment 23 22 18 16 15 15
Human services 44 47 52 53 55 48
Culture and recreation 317 335 397 389 337 335
Water and Sewer 310 309 336 312 297 288
Solid Waste 22 22 23 27 26 23
Airport Authority 16 14 15 13 13 14
Emergency Medical Services 168 168 188 167 158 161
Total 3,483 3,481 3,787 3,696 3,448 3,308
* Information prior to fiscal year 2004 is not available.
Total includes full time employees and temporary employees.
156
COLLIER COUNTY, FLORIDA
OPERATING INDICATORS BY FUNCTION
LAST EIGHT FISCAL YEARS
(unaudited)
Fiscal Year
2009 2008 2007 2006 2005 2004 2003 2002
Function:
Police:
Physical arrests 15,671 20,226 22,028 25,657 17,214 14,788 13,506 11,423
Parking violations 1,297 843 1,753 2,124 l,372 2,115 1,468 1,678
Traffic violations 28,308 49,831 64,372 58,242 56,056 50,883 39,869 39,342
Fire:
Fires reported S33 S86 590 6S4 3S3 262 153 1S3
Emergency responses 1,169 1,213 1,148 1,539 1,652 1,056 868 668
Number of calls answered 1,733 1,840 1,779 2,235 2,049 1,360 1,072 858
Transportation:
Collier Area Trans;t rldership 1,109,710 1,166,358 1,180,147 1,052,536 951,601 627,824 475,820 324,037
Street resurfacing (lane miles) 97 S2 44 47 22 S3 70 81
Culture and recreation:
Beach parking stickers issued 132,218 80,542 76,344 54,074 57,875 42,000 30,000 20,000
Librarydrculation 3,034,439 3,000,394 2,916,523 2,722,539 2,853,926 2,877,230 2,788,262 2,485,314
Water:
New connections 704 SS3 1,593 1,897 2,597 2,910 1,592 2,923
Wastewater:
Average daily sewage treatment 13,769,205 15,558,000 15,583,055 17,310,468 17,095,890 16,526,027 15,616,438 15,342,466
(thousands of gallons)
157
COLLIER COUNTY, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST EIGHT FISCAL YEARS
(unaudited)
Fiscal Year
2009 2008 2007 2006 2005 2004 2003 2002
Function:
Public Safety:
Police stations 7 7 7 7 7 7 7 7
Patrol units 275 275 275 272 260 253 256 2S7
Fire;
Fire stations 3 2 2
Highways and streets:
Streets (miles! 1,184 1,184 1,147 1,147 1,149 1,121 1,210 1,463
Streetlights 4,485 3,767 3,987 3,620 3,327 3,075 2,758 2,378
Traffic signals 283 224 216 200 198 196 193 181
Culture and recreation:
Parks acreage 1,473 1,440 1,436 1,527 1,486 1,396 1,549 1,546
Parks 59 56 S5 47 47 46 46 44
Swimming pools 8 7 7 7 3 2 2 2
TenniscQurts 45 4S 4S 45 43 43 43 43
Community centers 8 8 8 8 7 6 6 6
Ubraries 10 9 9 9 9 9 9 9
Number of volumes in libraries 797,978 647,484 769,717 651,592 556,737 583,684 539,887 456,233
Water:
Number of water and sewer customers 51,499 51,136 59,257 57,664 55,767 53,170 50,260 48,668
Water mains (miles) 886 870 860 682 68S 668 646 639
Maximum daily capacity (per 1,000 gallons) 33,339,865 30,956,261 36,116,725 34,673,000 31,940,118 31,342,779 34,243,600 31,902,378
Wastewater:
5anitary sewers (miles) 1,081 1,053 871 798 802 784 763 7S5
Primary and secondary drainage facilities 303 303 303 303 311 311 311 311
158
SINGLE AUDIT/FEDERAL AND STATE
SCHEDULE OF FINANCIAL ASSISTANCE
The Single Audit/Federal and State schedule of financial assistance section presents Grants
compliance reports filed by Collier County with Federal government and State government,
respectively.
THIS PAGE INTENTIONAllY lEFT BLANK
1111111111111111111111111111II11111 ~ ERNST & YOUNG
Ernst & Young LLP
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Report of Independent Certified Public Accountants on
Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of the Financial Statements
Performed in Accordance with Government Auditing Standards
Members of the Board of County Commissioners
Collier County, Florida
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Collier County, Florida (the County) as of and for the
year ended September 30, 2009, which collectively comprise thc County's basic financial
statements and have issued our report thereon dated February 10, 20 I O. We conducted our audit
in accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government A uditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the County's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinions on the tinancial statements, but not for the purpose of expressing an opinion on the
effectiveness of the County's internal control over financial reporting. Accordingly, wc do not
express an opinion on the effectivencss of the County's internal control over tinancial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement orthe entity's financial statements will not be prevented,
or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the tirst paragraph of this section and was not designed to identify all deficiencies in
internal control that might be deficiencies, significant deficiencies or material weaknesses. We
did not identify any deficiencies in internal control over financial reporting that we consider to
be material weaknesses, as defined above.
1002-1 ]30878
161
,(."
1111111111111111111111111111111"" au ERNST & YOUNG
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's tinancial statements are
free of material misstatement, we performed tests of its compliance with ccrtain provisions of
laws, regulations, contracts and grant agreements, noncompliance with which could have a direct
and material effect on the determination of financial statement amounts. 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. Thc results of our tests disclosed no instances of
noncompliance or other matters that arc required to be reported under Government Auditing
Standards.
This report is intended solely for the information and use of management, the Board of County
Commissioners, others within the entity, the Auditor General of the State of Florida, federal and
state awarding agencies and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties.
~M<d of Mup
February 10,2010
1002-1 ]]0878
162
1111111111111111111111111111111"'" au ERNST & YOUNG
ErIlst & Young LLP
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Report ofIndependent Certified Public Accountants on Compliance
With Requirements Applicable to Each Major Federal Program and
State Project and on Internal Control Over Compliance in Accordance
With OMS Circular A-133, Section 215.97, Florida Statutes, and
Chapter 10.550, Rules of the Auditor General
Members of the Board of County Commissioners
Collier County, Florida
Compliance
We have audited the compliance of Collier County, Florida (the County), with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB)
Circular A-133 Compliance Supplement, and the requirements described in the Florida
Department of Financial Services State Projects Compliance Supplement, that are applicable to
each of its major federal programs and state projects for the year ended September 30, 2009. The
County's major federal programs and state projects are identified in the summary of auditor's
results section of the accompanying schedule of findings and questioned costs. Compliance with
the requirements of laws, regulations, contracts, and grants applicable to each of its major federal
programs and state projects is the responsibility of the County's management. Our responsibility
is to express an opinion on the County's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States; the standards applicable to financial audits contained in Government
Auditing Standard~. issued by the Comptroller General of the United States; OMB Circular
A-133, Audits 0/ States. Local Governments. and Non-Pro/it Organizations; Section 215.97,
Florida Statutes (Section 215.97); and Chapter 10.550, Rules of the Auditor General, State of
Florida (Chapter 10.550). Those standards, OMS Circular A-133, Section 215.97 and Chapter
10.550 require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program or state project occurred. An audit includes
examining, on a test basis, evidence about the County's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable basis for our opinion. Our audit does not providc a legal
determination of the County's compliance with those requirements.
[002-1 ]30878
163
;.,.1
11111111111111111111111111111111," aJ ERNST & YOUNG
As described in item 2009-1 in the accompanying schedule of lindings and questioned costs, the
County did not comply with requirements regarding allowable costs that are applicable to its
Community Care for the Elderly and Aging Cluster programs. As described in item 2009-1 and
2009-3 in the accompanying schedule of findings and questioned costs, thc County did not
comply with requirements regarding allowable costs and reporting that are applicable to its State
Housing Initiative Partnership (SHIP) Program. Further, as described in item 2009-6 in the
accompanying schedule of findings and questioned costs, the County did not comply with
requirements regarding the Davis-Bacon Act that are applicable to its Airport Improvement
Program. Compliance with such requirements is nccessary, in our opinion, for the County to
comply with requirements applicable to these programs.
In our opinion, except for the noncompliance described in the preceding paragraph, the County
complied, in all material respects, with the requirements referred to above that are applicable to
each of its major federal programs and state projects for the year ended September 30, 2009. The
results of our auditing procedures also disclosed other instances of noncompliance with those
requirements that are required to be reported in accordance with OMB Circular A-133,
Section 215.97, or Chapter 10.550, and which are describcd in the accompanying schedule of
findings and questioned costs as items 2009-1 (with respect to the Community Development
Block Grant (CDBG) Program), 2009-2, 2009-4, and 2009-5.
Internal Control Over Compliance
The management of the County is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts, and grants
applicable to federal programs and state projects. In planning and performing our audit, we
considered the County's internal control over compliance with requirernents that could have a
direct and material cffect on a major fcderal program or state project in ordcr to determine our
auditing procedures for the purpose of expressing our opinion on compliance, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliancc.
Accordingly, we do not exprcss an opinion on the effectivcness of the County's internal control
over compliancc.
Our consideration of internal control over compliance was for the limited purpose described in
the preceding paragraph and would not necessarily identify all deficiencies in the County's
internal control that might be significant deficiencies or material weaknesses as defined below.
However, as discussed below, we identified certain deficiencies in internal control over
compliance that we consider to be significant deficiencies and others that we consider to be
material weaknesses.
1002-1130878
164
111111111111111111111111111""'" H ERNST & YOUNG
A control deficiency in an entity's internal control ovcr compliance exists when the design or
operation of a control does not allow management or cmployees, in the normal course of
performing their assigned functions, to prevent or detcct noncompliancc with a type of
compliance requircment of a federal program or state projcct on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that adversely affects
the entity's ability to administer a federal program or state project such that there is more than a
remote likelihood that noncompliance with a type of compliance requirement of a federal
program or state project that is more than inconsequential will not be prevented or detected by
the entity's internal control. We consider the deficiencies in intcrnal control over compliance
described in the accompanying schedule of findings and questioned costs as items 2009-1, 2009-
2, 2009-3 and 2009-5 and 2009-6 to be significant dc/iciencies.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that material noncompliance with a type of compliance
requirement of a fedcral program or state project will not be prevcnted or detected by the entity's
internal control. Of the significant deficicncies in internal control over compliance described in
thc accompanying schedule of findings and questioned costs, we consider items 2009-1 (except
with respect to the CDBG and Home Investment Partnerships programs), 2009-3, and 2009-6 to
be material weaknesses.
The County's response to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. We did not audit the County's response and,
accordingly, we express no opinion on it.
This report is intended solely for the information and use of management, the Board of County
Commissioners, othcrs within thc cntity, the Auditor General of thc State of Florida, federal and
state awarding agencies, and pass-through entities and is not intended to be and should not be
used by anyone other than thesc specificd parties.
~M<d of MLL'P
February 10, 2010
1002.1130&78
165
COLLIER COUNTY, flORIDA
SCHEDULE OF EXPENDITURES OF
FEOERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Federal or State Grantor/Pass-Through Grantor Program Title
CFDA#/
CSFA#
Grant/Contract Number
Expenditures
DeDartment of AJ!riculture
Indirect Programs:
Florida Department of Education:
Summer Food Service Program for Children
Florida Department of Agriculture and Consumer Services:
Cooperative Forestry Assistance
Total Department of Agriculture
Deoartment of Commerce
Direct Programs:
National Fish and Wildlife Foundation:
Educational Partnership Program / Sea Turtle Disorientation
Indirect Programs:
Florida Division of Emergency Management:
Public Safety Interoperable Communications / PSIC
Total Department of Commerce
OeDartment of Housimz and Urban Develooment
Direct Programs:
Community Planning and Development:
Community Development Block Grants / Entitlement (CDBG}
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Entitlement (CDBG)
Community Development Block Grants / Neighborhood Stabilization
Total CFDA
Emergency Shelter Grants Program (ESG)
Supportive Housing Program (CoC)
Supportive Housing Program (CoC)
Supportive Housing Program (CoC)
Supportive Housing Program (CoC)
Supportive Housing Program (CoCl
Total CFDA
Home Investment Partnerships Program (HOME)
Home Investment Partnerships Program (HOME)
Home Investment Partnerships Program {HOME)
Home Investment Partnerships Program (HOME)
Totai CFDA
Indirect Programs:
Florida Department of Community Affairs:
Community Development Block Grant / State's Program (DRI)
Community Development Block Grant / State's Program {ORI)
Total CFDA
Total Department of Housing and Urban Development
10.559
$
04-0804
749,898
10.664
Ochopee Fire District
5,851
755,749
11.481
2006-0114-004
8,550
11.555
09-0S-31-09-21-01-269
150
8,700
14.218 B-02-UC-12-0016 16
14.218 B-04-UC-12-0016 250,618
14.218 B-05-UC-12-0016 436,094
14.218 B-Q6-UC-12-0016 572,100
14.218 B-07-UC-12-0016 1,077,682
14.218 8-08-UC-12-0016 1,535,065
14.218 B-09-UC-12-0016 91,517
14.218 B-08-UN-12.0003 1,778,737
5,741,829
14.231 S.08-UC-12-0024 94,007
14.235 FL14B50-6001 68,636
14.235 FL14B50-6002 116,900
14.235 FL14860-6003 2,415
14.235 FL1487Q-6001 10,976
14.235 FL14B7Q-6002 104,587
303,514
14.239 M-06-UC-12-0217 142,116
14.239 M-07-UC-12-0217 89,023
14.239 M-08-Uc-12-0217 383,260
14.239 M-09-UC-12-0217 16,958
631,357
14.228 07DB-3V -Q9-21-0l-ZOl 1,336,153
14.228 080B-D3-09-21-01-A03 934,467
2,270,620
9,041,327
(Continued)
See accompanying notes to the schedule of expenditures of federal awards and state projects.
IDOl.] 130878
166
COLLIER COUNTY, flORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE fiSCAL YEAR ENDED SEPTEMBER 30, 2009
Federal or State Grantor/Pass-Through Grantor Program Title
(FDA #/
CSFA#
Grant/Contract Number
Expenditures
DeDartment of the Interior
Direct Programs:
Fishand Wildlife Service:
Coastal Program I Otter Mound
Total Department of the Interior
15.630 401818J610 $ 8,400
15.631 401815J021 1,800
15.228 401818G563 10,314
15.605 FWC-08258 60,000
80,514
Partners fOf Fish and Wildlife / Conservation Collier Land
National Fire Plan-Wildland Urban Interface Community Fire Assistance
Indirect Programs:
Florida Fish and Wildlife Conservation Commission:
Sport Fish Restoration Program - Artificial Reef Construction
Oeoartment of Treasurv
Direct Programs:
Department of Treasury:
Federal Equitable Sharing
21.unknown Collier County Sheriff
210,585
Total Department of Treasury
210,585
Deoartment of Justice
Direct Programs:
Office of Justice Programs:
Federal Equitable Sharing
Public Safety Partnership and Community Policing Grants /
COPS / Technology Program
Public Safety Partnership and Community Policing Grants /
COPS / Secure Our Schools
Total CFDA
16.unknown Collier County 16,019
16.320 200S-YT-BX-0002 108,903
16.606 2008-AP-BX-0316 12,433
16.710 2008CKWX0170 350,738
16.710 2007CKWX0089 2,029
352,767
16.738 2006-DJ-BX-0474 49,210
16.738 2007-DJ-BX-0504 131,917
16.738 2008-DJ-BX-0340 38,422
219,549
16.527 2007-CW-AX-0007 100,383
16.523 58-105 25,400
16.575 V8055 114,742
16.579 2008-JAG-COlL -1-Q9-170 31,263
16.579 2009-JAG-CQLL-l-Tl-011 56,619
87,882
16.609 2008-PMAG-COLL -1-R6-o05 14,956
(Continued)
Services for Trafficking Victims / Anti Trafficking Task Force
State Criminal Alien Assistance Program (SCAAP)
Edward Byrne Memorial Justice Assistance Grant Program
Edward Byrne Memorial Justice Assistance Grant Program
Edward Byrne Memorial Justice Assistance Grant Program
Total CFDA
office on Violence Against Women:
Supervised Visitation, Safe Havens for Children
Indirect Programs:
Florida Department of Juvenile Justice:
Juvenile Accountability Block Grants / Peer Mediation Program
Florida Office of Attorney General:
Crime Victim Assistance (VOCA)
Florida Department of Law Enforcement:
Edward Byrne Memorial Formula Grant / Sexual Predator
Edward Byrne Memorial Formula Grant / Sexual Predator
Total CFDA
Community Prosecution and Project Safe Neighborhoods /
Anti-Gang Initiative
]002-] 130Xn
167
COLLIER COUNTY, FLORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Federal or State Grantor/Pass-Through Grantor Program Title
Florida Department of Children and Families:
ARRA Violence Against Women Formula Grants /lnVEST
Violence Against Women Formula Grants / STOP
Violence Against Women Formula Grants / STOP
Total CFDA
Total Department of Justice
DeDartment of Tran5Dortation
Direct Programs:
Federal Aviation Administration:
Airport Improvement / Immokalee Construct Aircraft Apron
Airport Improvement / Marco Master Plan Study Update
Airport Improvement / Marco Apron Phase I & II
Airport Improvement! Marco Land Acquisition
Airport Improvement / Marco Phase II Surcharge/Construction
Airport Improvement / Marco South Taxiway & Apron Design
Total CFDA
Federal Transit Administration:
Federal Transit-Formula Grants / Section 5307
Federal Transit-Formula Grants / Section 5307
Federal Transit-Formula Grants / Section 5307
Total CFDA
Indirect Programs:
Florida Department of Transportation:
Highway Planning and Construction / Lighting
Highway Planning and Construction / Pedestrian Bridge
Highway Planning and Construction / Landscaping
Highway Planning and Construction / Landscaping
Highway Planning and Construction / Bicycle/Pedestrian Bridges
Highway Planning and Construction / MPO UPWP
Highway Planning and Construction / Immokalee Sidewalks
Highway Planning and Construction / Irnmokalee Sidewalks
Highway Planning and Construction / Minor Intersection Improvements
Highway Planning and Construction / Dynamic Message Signs
Highway Planning and Construction / Optic om Receivers
Total CFDA
Federal Transit-Metropolitan Planning Grants / Section 5303
Formula Grants for Other Than Urbanized Areas / Imk Circulator
Capital Assistance Program for Elderly Persons and Persons
with Disabilities /Section 5310
Total Department of Transportation
Environmental Protection Alzencv
Indirect Programs:
Florida Department of Environmentai Protection:
Capitalization Grants For Drinking Water State Revolving Funds
Capitalization Grants For Drinking Water State Revolving Funds
Total Environmental Protection Agency
[002- [ ] 30X78
168
CFDA#/
CSFA#
Grant/Contract Number
16.588
16.588
16.::;88
ARRA LNg47
LN816
LN916
20.106
20.106
20.106
20.106
20.106
20.106
3-12-0031-005-2009
3-12-0142-002-2006
3-12-0142-003-2006
3-12-0142-007-2009
3-12-0142-004-2007
3-12-0142-005-2008
20.507
20.507
20.507
FL-90-X645-00
FL-90-X665-00
FL-90-X699.00
20.205 412559
20.205 412627
20.205 200732
20.205 414534
20.205 415590
20.205 416342
20.205 422164
20.205 422165
20.205 415543
20.205 423653
20.205 423666
20.505 AM356
20.509 AOW89
20.513 FL-16-0033
66.468
66.468
OWll11 010
DWll11 020
Expenditures
S
12,305
104,344
38,445
155,094
1,208,128
174,279
10,179
1,612
246,850
27,911
164,423
625,254
13,281
651,136
104,763
769,180
72,271
142,714
97,996
67,085
239,839
551,856
28,000
142,675
124,415
156,442
75,000
1,698,293
71,003
244,253
259,697
3,667,680
1,268,176
459,981
1,728,157
(Continued)
90.401 Collier County $ 11,793
90.401 Collier County 16,579
90.401 Collier County 3,117
90.401 Collier County 97,684
129,173
COLllER COUNTY, flORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Federal or State Grantor/Pass-Through Grantor Program Title
CFDA#/
CSFA#
Grant/Contract Number
Election Assistance Commission IEACI
Indirect Programs:
Florida Division of Elections:
Help America Vote Act Requirements Payments / Poll Workers
Recruitment
Help America Vote Act Requirements Payments / Voter
Education
Help America Vote Act Requirements Payments / Federal
Election Activities
Help America Vote Act Requirements Payments / Voting
Systems Assistance (HAVA 2002)
Total Election Assistance Commission (EAC)
DeDartment of Health and Human Services
Direct Programs:
Health Resources and Services Administration:
Specially Selected Health Projects
93.888
D1BI110769
Indirect Programs:
Florida Department of Elder Affairs" Area Agency on Aging for
Southwest Florida, Inc.:
Aging Cluster:
Special Programs for the Aging - Title Ill, Part B - Grants for
Supportive Services and Senior Centers
Special Programs for the Aging - Title III, Part B - Grants for
Supportive Services and Senior Centers
Total CFDA
93.044 QAA 203.08
93.044 OAA 203.09
93.045 OAA 203.08
93.045 QAA 203.08
93.045 OAA 203.09
93.045 QAA 203.09
93.053 NSIP 203.08
93.053 NSIP 203.09
93.705 ARRA 203.09
93.707 ARRA 203.09
93.052 QAA 203.08
93.052 QAA 203.09
Special Programs for the Aging-Title III, Part C-I-Nutrition Services
Special Programs for the Aging-Title III, Part C-2-Nutrition Services
Special Programs for the Aging-Title III, Part C-l.Nutrition Services
Special Programs for the Aging-.Title III, Part C-2-Nutrition Services
Total CFDA
Nutrition Services Incentive Program
Nutrition Services Incentive Program
Total CFDA
ARRA Aging Home-Delivered Nutrition Services - Title 111-[2
ARRA Aging Congregate Nutrition Services for States - rifle 111-(1
Total Aging Cluster
National Family Caregiver Support - Title III, Part E
National Family Caregiver Support - Title III, Part E
Total CFDA
Florida Department of Transportation - Commission for the
Transportation Disadvantaged:
Medical Assistance Program
93.778
BDM59
Florida Department of Revenue:
Child Support Enforcement
93.563
CD 311
Total Department of Health and Human Services
1002-1130878
169
Expenditures
13,440
19,130
26,698
45,828
68,233
94,997
175,332
194,231
532,793
1,855
17,690
19,545
15,990
26,583
640,739
13,695
26,108
39,803
378,335
243,065
1,315,382
(Continued)
COlliER COUNTY, flORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS ANO STATE PROJECTS
FOR THE FISCAL VEAR ENDED SEPTEMBER 30, 2009
Federal or State Grantor/Pass-Through Grantor Program Title
CFDA#/
CSFA#
Grant/Contract Number
Expenditures
COrDoration for National and Community Service
Direct Programs:
Retired and Senior Volunteer Program
94.002
06SRSFL004
$
55,072
Total Corporation for National and Community Service
55,072
DeDartment of Homeland Security
Direct Programs:
Assistance to Firefighters Grant / Mobile Data Terminals
Assistance to Firefighters Grant / Stair Chairs
Total CFDA
97.044
97.044
EMW-2007-FO-04528
EMW-2Q08-FQ-03394
39,871
47,594
87,465
Indirect Programs:
Homeland Security Cluster:
Florida Department of Law Enforcement:
Domestic Preparedness Equipment Support Program
Total Homeland Security Cluster
97,004 2006LETPCOLL3N1-013 662,971
97.067 2008SHSPCQLL3S4-0l1 87,008
97.067 2008SHSPCOLL2S4-009 29,800
97.067 2008SHSPCOLLlS4-0l0 17,783
97.067 2009SHSPCOLL1 V3-014 169,901
97.067 2009SHSPCOLL2V3-016 70,000
97.067 09CC-49-09-21-01-341 5,773
97.067 09CI-49-09-21-01-350 7,439
97.067 0905-51-09-21--01-322 26,165
413,869
1,076,840
97.036 Collier County 409,828
97.036 Collier County 64,907
474,735
97.039 07-EC-33-09-21-01-486 54,717
97.039 09HM -37-09-21-01--019 43,856
97.039 08HM--6G-09-21-01 .-017 66,952
97.039 09HM-37-09-21-01-001 10,752
176,277
97.042 09-BG-03-09-21-01-159 42,000
97.042 09-BG-20-09-21-01-427 18,830
60,830
1,876,147
$ 20,076,614
Homeland Security Grant Program / Issue 20
Homeland Security Grant Program / Issue 21
Homeland Security Grant Program / Issue 8
Homeland Security Grant Program / Issue S06A
Homeland Security Grant Program / Issue 813
Florida Department of Community Affairs:
Homeland Security Grant Program
Homeland Security Grant Program
Homeland Security Grant Program
Total CFDA
Disaster Grants - Public Assistance / Tropical Storm Fay
Disaster Grants - Public Assistance / Hurricane Wilma
Total CFDA
Hazard Mitigation Grant
Hazard Mitigation Grant
Hazard Mitigation Grant
Hazard Mitigation Grant
Total CFDA
Emergency Management Performance Grant
Emergency Management Performance Grant
Total CFDA
Total Department of Homeland Security
TOTAL EXPENDITURES OF FEDERAL AWARDS
1002-1130878
170
37.003 05COl
37.017 A9048
37.017 A8119
37.039 4600001765
37.050 IG8-G7
37.050 IG809
COLLIER COUNTY, flORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Federal or State Grantor/Pass-Through Grantor Program Title
CFDA#/
CSFA#
Florida Executive Office of the Governor
Visit Florida
31.006
Total Florida Executive Office of the Governor
Florida DeDartment of Environmental Protection
Beach Erosion Control Program
Florida Recreation Development Assistance Program
Florida Recreation Development Assistance Program
Total CSFA
Statewide Surface Water Restoration and Wastewater Projects
Innovative Waste Reduction and Recycling Grants
Innovative Waste Reduction and Recycling Grants
Total CSFA
Total Florida Department of Environmental Protection
Florida DeDartment of State and SecretarY of State
Public Library Construction Program
Public library Construction Program
Total CSFA
45.020
45.020
State Aid to libraries
State Aid to libraries
State Aid to libraries
Total CSFA
45.030
45.030
45.030
Total Florida Department of State and Secretary of State
Florida DeDartment of Communitv Affairs
Emergency Management Programs
52.008
Emergency Management Projects
52.023
Total Florida Department of Community Affairs
Florida Housini! Finance COrDoration
State Housing Initiatives Partnership (SHIP) Program
State Housing Initiatives Partnership (SHIP) Program
State Housing Initiatives Partnership (SHIP) Program
52.901
52.901
52.901
Total Florida Housing Finance Corporation
Florida DeDartment of TransDortation
Commission for the Transportation Disadvantaged (CTO) Trip and
Equipment Grant Program
Commission for the Transportation Disadvantaged (CTO) Trip and
Equipment Grant Program
Commission for the Transportation Disadvantaged (CTO) Trip and
Equipment Grant Program
Total CSFA
Grant/Contract Number
M-08187
06-PLC-04
07-PLC-04
06-ST-12
08-ST-12
09-5T-l0
09-BG-03-09-21-01-159
09CP-04-09-21-01-124
FY 07
FY08
FY09
Expenditures
$
5,000
5,000
21,945
1.33,480
95,057
228,537
50,000
20,285
49,186
69,471
369,953
200,000
200,000
400,000
3,181
85,047
272
88,500
488,500
98,722
8,300
107,022
1,127
10,870
1,099,229
1,111,226
55.001 APK39 143,111
55.001 AP589 59,400
55.001 AP621 454,698
657,209
(Continued)
] 002-] 130878
17]
COLLIER COUNTY, flORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
Total Florida Department of Transportation
(FDA #/
CSFA# Grant/Contract Number Expenditures
55.002 AP151 $ 7,080
55.002 AP647 14,689
21,769
55.004 AI526 3,181
55.004 AI935 8,625
55.004 AOF09 25,525
55.004 ANFSD 268
55.004 ANH17 734
55.004 ANF48 3,763
55.004 AP144 96,207
55.004 ADDlO 14,650
55.004 AOK80 SO
153,003
55.008 419950-2-22-01 44,661
55.0lD AOW93 471,212
55.012 AOK37 86,738
55.020 420655-2 1,957,377
3,391,969
60.014 HFZ93 77,584
77,584
64.005 C8011 174,808
174,808
Federal or State Grantor/Pass-Through Grantor Program Title
Commission forthe Transportation Disadvantaged (CTO) Planning
Grant Program
Commission fortheTransportation Disadvantaged (CTD) Planning
Grant Program
Total CSFA
Aviation Development Grants / Marco Mitigation Taxiway
Aviation Development Grants / Marco Land Acquisition
Aviation Development Grants / Marco Taxiway "(" Phase I
Aviation Development Grants / Marco Master Plan Study
Aviation Development Grants / Marco Mitigation Phase II
Aviation Development Grants / Marco Taxiway "(" Phase I
Aviation Development Grants / Slope Mower
Aviation Development Grants / Marco Fuel Farm
Aviation Development Grants / Marco Apron Phase I & II
Total CSFA
County Incentive Grant Program / PD&E Study SR82
Public Transit Block Grant Program
Public Transit Service Development Program / Red Route
State Infrastructure Bank Loan
Florida Dp.Dartment of Children and Families
Homeless Challenge Grant / CoC
Total Florida Department of Children and Families
Florida DeDartment of Health
County Grant Awards / Emergency Medical Services
Total Florida Department of Health
Florida DeDartment of Elder Affairs
Area Agency on Aging for Southwest Florida, Inc:
Home Care for the Elderly (HCE)
Home Care for the Elderly (HCE)
Total CSFA
Alzheimer's Respite Services (ADI)
Alzheimer's Respite Services (ADI)
Total CSFA
65.001 HCE 203.08
65.001 HCE 203.09
65_004 AD1203.08
65.004 AD1203.09
65.010 CCE 203.08
65.010 CCE 203.09
3,747
2,089
5,836
68,523
13,660
82,183
Community Care for the Elderly (CCE)
Community Care for the Elderly (CCE)
Total CSFA
597,094
115,136
712,230
Total Florida Department of Elder Affairs
800,249
Florida DeDartment of ManaRement Services
Wireless 911 Emergency Telephone System
72.001
5-08-07-31
9,574
Total Florida Department of Management Services
9,574
(Continued)
1002-] 130878
172
COLLIER COUNTY, FLORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009
CFDA #/
CSFA#
Florida Fish and Wildlife Conservation Commission
Federal or State Grantor/Pass-Through Grantor Program Title
Grant/Contract Number
Expenditures
Florida Boating Improvement Program
Florida Boating Improvement Program
Florida Boating Improvement Program
77.006
77_006
77.006
07071
08064
08079
Florida DeDartment of Juvenile Justice
Total Florida Fish and Wildlife Conservation Commission
Delinquency Prevention I TRAC
Delinquency Prevention I FTRAC
Total Florida Department of Juvenile Justice
80.029
80.029
DP-576
GS-120
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE
1002.1130878
173
$ 67,846
33,090
61,491
162,427
42,378
27,277
69,655
$ 6,767,967
Collier County, Florida
Notes to the Schedule of Expenditures of Federal
Awards and State Projects
Year Ended September 30, 2009
1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and State Projects (the
Schedule) includes the Federal and State grant activity for Collier County, Florida (the County)
and is presented on the modified accrual basis of accounting for expenditures accounted for in
the governmental funds and the accrual basis of accounting for expenditures in proprietary funds.
Under the modified accrual basis, revenue is recognized if it is both measurable and available for
use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if
measurable. Under the accrual basis, expenditures are recognized in the period liabilities are
incurred.
The information in the Schcdule is presented in accordance with the requirements of U. S. Office
of Management and Budget (OMS) Circular A-133, Audits of'States, Local Governments, and
Non-Profit Organizations, and Section 215.97, Florida Statutes. Therefore, some amounts
presented in the Schedule may differ from amounts presented, or used in the preparation of, the
basic financial statements for the fiscal year ended September 30, 2009.
2. State Revolving Funds
Reconciliation of Statc Revolving Funds (CFDA# 66.468) expended to cash received during
fiscal year 2009:
Expenses reported on Single Audit Schedule
Reimbursements received for prior year expenses
Retainage timing differences, net
Less current year expenses that have not been reimbursed
Total State Revolving Fund reimbursements received
$ 1,728,157
8,290,527
295,480
(452,618)
$ 9,861,546
1002-1130878
174
""",..1" I, ..1" t.""
Collier County, Florida
Notes to the Schedule of Expenditures of Federal
Awards and State Projects (continued)
3. State Infrastructure Bank Loan
The County received a $12,000,000 State Infrastructure Bank Loan from the Florida Department
of Transportation in fiscal year 2008 for construction of the 1-75/Immokalee Road interchange.
The Florida Department of Transportation included this project with their concurrent widening of
1-75 and retained the loan proceeds to fund the project. Accordingly, the County's expenditures
for purposes of reporting on the Schedule consist of principal loan repayments only ($1,957,377
for fiscal year 2009) as no proceeds were received under thc loan and no projcct expenditures
were incurred or paid directly by the County. The balancc of the loan as of September 30,2009
is $10,042,623.
The repayment schedule for this loan is as tollows:
Payment Date Principal Interest Total
10/1/2008 $ 1.957,377 $ 82,623 $ 2,040,000
10/1/2009 1,839,148 200,852 2,040,000
10/1/20 I 0 1,875,930 164,070 2,040,000
10/1/201 I 1,913,449 126,551 2,040,000
10/1/2012 4,414,096 88,282 4,502,378
$ 12,000,000 $ 662,378 $ 12,662,378
4. Subgrant Awards
The following subgrant awards were made by Collier County during fiscal year 2009:
Program Title
CFDA/CSFA
Number
Subgrant
Amount
Federal:
Community Development Block Grant
Community Development Block Grant / State's Program
Emergency Shelter Grant
Supportive Housing Program
Home Investment Partnerships Program
State:
State Housing Initiatives Partnership Progran1
Homeless Challenge Grant
14.218 $ 3,520,432
14.228 1,706,132
14.231 94,007
14.235 301,567
14.239 341,117
52.901
60.014
699,090
80,353
1002-1130878
175
Collier County, Florida
Notes to the Schedule of Expenditures of Federal
A wards and State Projects (continued)
S. Contingency
The grant revenue amounts received are subject to audit and adjustment. If any expenditures or
expenses are disallowed by the grantor agencies as a result of such an audit, any claim for
reimbursement to the grantor agencies would become a liability of the County. In the opinion of
management, all grant expenditures arc in compliance with the terms of the grant agreements and
appl icable federal and state laws and regulations.
] 002-] 130878
176
Collier County, Florida
Schedule of Findings and Questioned Costs
For the Year Ended September 30,2009
Part I-Summary of Auditor's Results
Financial Statements Section
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified that are not
considered to be material weaknesscs'!
Noncompliance material to financial statements
noted?
Federal Awards and State Projects Section
Internal control over major programs:
Material weakness(es) identified? X
Significant deticiency(ies) identified that are not
considered to be material weaknesses? X
Type of auditor's report issued on compliance for
maJOr programs:
Any audit findings disclosed that are required to be
reported in accordance with section .510(a) of OMB
Circular A-133, Section 215.97, Florida Statutes, and
Chapter 10.550, Rules of the Auditor General, State
of Florida? X
1002-1130878
177
Yes
Yes
Yes
Yes
Yes
Unqualified
X
No
X
None reported
x
No
No
None reported
Qualified for the Aging Cluster (CFDA
No.'s 93.044, 93.045, 93.053, 93.705,
93.707), the Airport Improvement
Program (CFDA No. 20.106), thc
Community Carc for the Elderly
Program (CSFA No. 65.010), and the
State Housing Initiatives Partnership
Program (CSFA# 52.901); and
Unqualified for all other major
programs
Yes
No
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Identification of major federal programs:
Federal Programs
CFDA Number
Federal Ae:encv/Name of Federal Proe:ram
]4.2]8
U.S. Department of Housing and Urban Development:
Community Development Block Grant Program
(CDRG)
Home Investment Partnerships Program (HOME)
Community Development Block Grant / State's
Program (DR!)
]4.239
14.228
10.559
U.S. Department of Agriculture:
Summer Food Service Program for Children (Child
Nutrition Cluster)
]6.710
U.S. Department of Justice:
Public Safety Partnership and Community Policing
Grants
20.507
U.S. Department of Transportation:
Federal Transit.. Formula Grants (Federal
Transit Cluster)
Airport Improvement Program
20.106
66.468
U.S. Environmental Protection Agency:
Capitalization Grants For Drinking Water State
Revolving Funds
93.044, 93.045, 93.053,
93.705,93.707
U.S. Department of Health and Human Services:
Aging Cluster
97.004, 97.067
U.S. Department of Homeland Security:
Homeland Security Cluster
1002-1130878
]78
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Identification of major state projects:
State Projects
CSFA Number
52.901
55.001
55.010
55.020
65.010
Dollar threshold used to distinguish
between Type A and Type B programs:
. Federal Programs
. State Projects
Auditee qualified as low-risk auditee?
lO02~1 ]]0878
State Al!:encv/N ame of State Proiect
Florida Housing Finance Corporation:
State Housing Initiatives Partnership Program
(SHIP)
Florida Department of Transportation:
Commission for the Transportation
Disadvantaged (CTD) Trip and Equipment
Grant Program
Public Transit Block Grant Program
State Infrastructure Bank Loan Program
Florida Department of Elder Affairs:
Community Care for the Elderly
$ 602.298
$ 300.000
Yes
x
No
179
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Part II-Financial Statement Findings Section
This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts,
violations of provisions of contracts and grant agreements, and abuse related to the financial
statements for which Government Auditing Standards require reporting.
No such matters were identified.
I002-1130R78
180
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Part III-Federal Awards and State Projects
Findings and Questioned Costs Section
This section identifies the audit t1ndings required to be reported by Circular A-133
section .5 I O(a), Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor
General, State of Florida, such as material weaknesses, signitlcant deficiencies, and material
instances of noncompliance, including questioned costs, as well as any abuse findings involving
federal awards or state projects that are material to a major program.
Finding 2009-1
Federal/State Program Injiirmation
Federal Agencies/Programs:
U.S. Department of Housing and Urban Development (HUD)
Home Investment Partnerships Program (HOME) - CFDA No. 14.239
Community Development Block Program (CDBG) - CFDA No. 14.218
U.S. Department of Health and Human Services
Aging Cluster (AC) - CFDA No.'s 93.044, 93.045, 93.053, 93.705, 93.707
State Agencies/Programs:
Florida Department of Elder Affairs
Community Care for the Elderly (CCE) - CSFA No. 65.010
Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP) - CSF A No. 52.901
1002-1130878
181
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Criteria
Allowable Costs: Compensation for personnel services rendered in connection with Federal
awards must be documented and supportcd as described in OMS Circular A-87, Cost Principles
fiJr State, Local and Indian Tribal Governments (A-87). Additionally, pursuant to the SHIP
Program Manual and the State of Florida's Part Four Compliance Supplement for the CCE
program, administrative costs for the SHIP and CCE state programs should also be in
conformance with A-87. According to A-87, the standards regarding time distribution are In
addition to the payroll documentation and require the following:
. Charges to Federal awards for salaries and wages, whether treated as direct or indirect
costs, will be based on payrolls documented in accordance with the generally accepted
practice of the governmental unit and approved by responsible official(s) of the
governmental unit.
. Where employees are expected to work solely on a single Federal award or cost
objective, charges for their salaries and wages will be supported by periodic certifications
that the employees worked solely on the program for the period covered by the
certification. These certifications will be prepared at least semi-annually and will be
signed by the employee or supervisory official having first-hand knowledge of the work
performed by the employee.
. Where employees work on multiple activities or cost objectives, a distribution of their
salaries or wages will be supported by personnel activity reports or equivalent
documentation which meets the following standards (unless a statistical system or other
substitute system has been approved by the cognizant Federal agency):
a) must reflect an aftcr-the-fact distribution of the actual activity of each employee,
b) must account for the total activity for which each employec is compensated,
c) must be prepared at least monthly and must coincide with one or more pay periods,
and
d) must be signed by the employee.
e) Budget estimates or other distribution percentages determined before the services are
performed do not qualify as support for charges to Federal awards but may be used
tor interim accounting purposes.
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Schedule of Findings and Questioned Costs (continued)
Condition/Context
We noted that from the beginning of the fiscal year through January 2009, the County's
documentation supporting payroll allocations for employees that work on multiple grants did not
meet federal standards as described in OMB Circular A-87 above. The County has uscd a
Personnel Activity Report (PAR) to allocate payroll salaries for employees who work on
multiple activities. These reports are prepared annually, at the beginning of each fiscal year,
based on an estimate ofthc time the employees are expected to work on a grant. The PAR does
not show the total activity for which an employee is compensated and does not require the
employee's signature.
The County's Department of Housing and Human Services initiated a timeshect process in fiscal
year 2006 whereby employees in the department indicate the projccts to which their time relates
each week. These time sheets are signed by the employees and supervisors and kept in the
department for internal control purposes. For the first part of fiscal year 2009, these timeshects
were not provided to thc County's payroll department to adjust the allocation of payroll costs
from the estimatc as indicated in the annual PAR form to actual time spent. Thus, there is not an
"after the fact" accounting based on actual activity.
We noted that the HOME program had no payroll expenditures charged to the program during
the period noted above (although there should havc been), and therefore, no question costs have
been reported for this program. The payroll charges related to the HOME program were instead
charged to other housing programs as a result of the lack of an aftcr the fact accounting for the
period noted above.
Questioned Costs
Total salaries and relatcd costs for the time period noted above are summarized as follows:
CDBO (CFDA No. 14.218)
SHIP (CSFA No. 52.901)
AC (CFDA No,'s 93.044, 93.045, 93.053, 93.705, 93.707)
CCE (CSFA No. 65.010)
$ 175,668
75,351
87,992
65,706
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Cause/Effect
The PARs and time sheets used do not meet the requirements of OMS Circular A-87 with respect
to the documentation supporting the allocation of salaries and related costs lor the period noted
above. The payroll charged to a grant was based on the PAR, or budgeted amount, and there was
no proccss in place to compare the PAR percentagc used by the payroll department to allocate
costs during this period to the actual time incurred by thc employee based on the timesheets.
Additionally, PAR rcports do not include the employee's signaturc and are completed annually;
however, for employces who work solely on one grant, certification forms are required to be
completed at least semi-annually.
Recommendation
The County should ensure that an etTective and consistent process is in placc to record payroll
charges to grant programs throughout the entire fiscal year. The process should entail providing
the time sheets to the payroll department on a periodic basis to match the related payroll allocated
to each grant (as based on the PAR), to the actual time spent working on the federal/state grant
based on the after-the-fact timeshcet, and any adjustments necessary to true-up the estimated
payroll charged to the grant (based on the PAR) to the actual amount (based on the timesheets)
should be made. Alternatively, the payroll department could charge payroll costs to the grants
based on actual timesheets submitted weekly as opposed to using the budgeted PAR percentage
as the basis for allocating costs each pay period.
PAR reports should be signed by the employee and completed at least semi-annually for those
employees who work solely on one grant.
Views ofRe.\ponsible Officials and Planned Corrective Action
The finding in question occurred during the 1" quarter of FY09. The time was tracked correctly;
however, a manual step was missed. Effective January 17, 2009, the Human Resources
Department began processing bi-weekly time and e!1ort entries for all Housing and Human
Services grant staff. Staff submits timesheets that are signed by the employee and management
to fiscal staff for review. The timesheets are forwarded to Human Resources to enter the actual
percentage of time and efJort into SAP prior to payroll expenses actually posting to SAP. This
allows for "real time" charges directly to the appropriate grant in SAP, thereby eliminating the
need to process journal entries at all.
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Collier County, Florida
Schedule of Findings and Questioned Costs (continLled)
Finding 2009-2
Federal Program Information
Federal Agency/Program:
U.S. Department of Housing and Urban Development (HUD): Community Development Block
Grant / State's Program (DRI) - CFDA No. 14.228
U.S. Department of Agriculture: Summer Food Service Program for Children - CFDA No. 10.559
U.S. Department of Justice: Public Safety Partnership and Community Policing Grants-
CFDA No. 16.710
U.S. Department of Homeland Security: Homeland Security Cluster - CFDA No. 97.004, 97.067
U.S. Department of Transportation: Airport Improvement Program- CFDA No. 20.106
Criteria
Procurement, Suspension and Debarment: Non-Federal entities are prohibited from contracting
with or making subawards under covered transactions to parties that are suspended or debarred
or whose principals are suspended or debarred. All nonprocurement transactions (i.e., subawards
to sub recipients), irrespective of award amount, are considered covered transactions. When a
non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal
entity must verify that the entity is not suspended or debarred or otherwise excluded. This
veritication may be accomplished by checking the Excluded Parties Ust System (EPLS)
maintained by the General Services Administration (GSA), collecting a certitication from the
entity, or adding a clause or condition to the covered transaction with that entity.
Condition/Context
Although the County indicated that its practice is to check the EPLS system, no documentation
evidencing that it had checked the EPLS was maintained, and a certification from the entity was
not collected or clause or condition included in the agreements, as applicable, for certain sample
transactions selected for testing.
Questioned Costs
N/A
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Cause/Effect
Internal controls with rcspcct to suspension and debarment were not operating effectively as no
documentation was maintained indicating that the EPLS was checked for the sclected contract
vendors or subrecipients, as applicable. Additionally, there was no evidence that the County had
obtained a certification from the entity or added a clause or condition to the contract with the
entity, as applicable. Therefore, we could not vcrify whether the County met its rcquircment to
veritY that the entities were not suspended or debarred or othcrwise excluded.
Recommendation
The County should perform the required verification by checking the EPLS (and documenting
evidence of the verification, when it was performed and by whom), collccting a certification
from the entity, or adding a clause or condition to the contract with that entity in accordance with
the Federal requirements.
Views of Re,lponsihle Officials and Planned Corrective Action
Collier County will apply currently enacted controls and measures operating effectively in one
division agency-wide to cnsurc compliance.
The Grants Coordinator for the Collier County Sheriff's Office will be responsible for checking
EPLS and documenting the verification as recommended abovc for all Sheriffs grants with this
rcquirement.
Finding 2009-3
State Program Information
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No. 52.901
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Criteria
Reporting:
. In accordance with Section 420.9075(10), Florida Statutes, each county or eligible
municipality shall submit to the Corporation by September 15 of each year a report of its
affordable housing programs and accomplishments through June 30, immcdiately
preceding submittal of the report.
. Annual reports for the Closeout Fiscal Year (2006/2007), Interim Fiscal Year 2
(2007/2008), and Interim Fiscal year 3 (2008/2009) (the Annual Report) must be
included in the submission to the Corporation.
. The local SHIP administrator's tracking system and annual reports must exactly match
the information recorded in the local city or county's general ledger.
. SHIP administrators, therefore, are required to regularly reconcile their tracking system
with the local finance department's general ledger. They should meet with the director of
their finance department to create a process that will ensure compliance with the single
audit act.
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger. Accordingly, we were unable to validate the amount of expenditures
and program income reported in the Annual Report.
Additionally, we noted approximately $192,000 of reversal entries appearing in the detail we
were provided of SHIP projects completed during fiscal year 2009 and we were informed that
these credits represented prior period corrections dating back as far as 2003.
Questioned Costs
Unknown
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Cause/Effect
The financial information submitted in the annual statutory reports did not agree to and was not
reconciled with the general ledger. This could result in incorrect and/or inconsistent information
between the reports filed and the underlying financial records and indicates that the County may
not be in compliance with the provisions of the SHIP Program Manual requiring that amounts
reported in the Annual Report match the amounts reported in the general ledger. Internal controls
with respect to reporting were not operating effectively.
Recommendation
The County should implement procedures that require that the statutory reports be reconciled to
the general ledger and reviewed and approved prior to being filed with the State.
Additionally, should corrections to prior period expenditures be necessary, a process should be in
place to ensure that such items are identilied and captured on a timely basis.
Views of Responsible Officials and Planned Corrective Action
Management concurs with the recommendations. Recognizing that internal attempts at
completing this difficult reconciliation have fallen short of the requirement, Housing and Human
Services has budgeted SHIP grant funds to receive onsite and ofIsite technical assistance (T A)
from the Florida Housing Coalition (FIIC). FIIC is the technical advisor designated by the
grantor agency, Florida Housing Finance Corporation. The T A will consist of reviewing current
reconciliation procedures, reports and data collection and maintenance. Any suggested
improvements will be implemented. As of this writing, the contract for TA is being review by
Housing and Human Services and the County Attorney's Officc for form and legal sufficiency.
Finding 2009-4
State Program Jl'!formation
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No. 52.901
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Criteria
Special Test and Provisions: SHIP requires that funds be advertised before taking applications
for assistance (SHIP Rule 67-37.005 (6) (a) and (b), F.A.C.). Funds are to be advertised at least
30 days prior to taking applications.
Condition/Context
No advertisement was made for fiscal year 2009.
Questioned Costs
N/A
Cause/Effect
The County was not in compliance with the SHIP rules related to marketing outreach.
Recommendation
The County should adhere to the established SHI I' rules with respect to advertising SHIP funds.
Views ofRe,ponsible Officials and Planned Correclive Action
The County will adhere to the established SHIP rules.
Finding 2009-5
State Program Injiirmation
Florida Department of Transportation (FOOT)
State Infrastructure Bank (SIB) Loan Program
CSFA No. 55.020
Criteria
Reporting: Effective internal controls over reporting requirements are required to be in place.
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Condition/Context
The State compliance supplement for this program and the loan agreement require the
submission to FDOT of semi-annual progress reports on program and financial activities that
occur each year following the award.
We noted that reports for December 2008 and Junc 2009 were not completed or submitted to the
FDOT until the time of our testing (September 20(9).
Questioned Costs
N/A
Cause/Effect
The County had not been aware of the need to create the reports as the County believed any
reporting requirements would be the responsibility of the FDOT. The reports were prepared and
submitted by the County in September 2009 after the County was notitied by FDOT that the
reports had not been submitted as required. The reports were not reviewed by someone other
than the preparer for accuracy and completeness.
Recommendation
The County should review agreements for reporting requirements and if questions arise as to
party responsible for completion, the County should promptly seek written clarification from the
grantor agency. Also, the County should ensure that reports are reviewed for accuracy and
completeness by someone other than the pre parer.
Views a/Responsible Officials and Planned Corrective Action
Originally the SIB agreement was for road construction considered to be a local Collier County
project. After the SIB agreement was executed, Federal Highway Administration (FHW A)
determined that the project would become a state project due to the procurement for a Design
Build Finance of 1-75 (IROX). Collier's original local project became part of larger state IROX
project.
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
The Grants Coordinator made a verbal inquiry to Florida Department of Transportation (FOOT)
during calcndar year 2008 regarding the reporting requirements cited in the SIB agrcement and
was advised the report was not Collier's responsibility since the project was not let by Collier nor
would any portion of the project be managed by Collier as originally anticipated. Subsequently, a
report was requested by FDOT for only the most recent six month period. Collier explained to
FDOT that i I' the report was now required, all reports due during the fiscal year 2009 would need
to be draftcd and submitted as due diligence. All reports submitted were reviewed by the
Transportation Administrator though not formally documentcd as such. Subsequent report
reviews by the Transportation Administrator are documented before submission.
Collier has no access to FOOT's tinancial activity or financial system which is needed to
complete the report, nor does Collier receive any project status reports on a routine basis. Collier
only has access to the data on the amount of loan payback which Collier disburses. This loan
payment information can be populated by FOOT as well. Collier must request financial activity
and project status information proactively. Requests for data from the grantor on prior year
single audit reporting and CAFR data such as loan amortization schedules and project statuses to
capture asset valuation has proven to be cumbersome and difficult.
Future financial activity requests will be made within 10 business days after the semi-annual
report period end to FOOT in order to verify and obtain correct data by the submission date. The
Division will prepare the report based on the information provided by FOOT. Prior to
submission, the Transportation Administrator will perform a documented review.
Finding 2009-6
Federal Program /nfiJrmation
Federal Agency/Program:
U.S. Department of Transportation: Airport Improvement Program~ CFDA No. 20.106
Criteria
The requirements of the Davis-Bacon Act are applicable to construction work for airport
development projects financed with grants under this program (49 USC 47112).
Non-federal entities shall include in their construction contracts subject to the Davis-Bacon Act a
requirement that the contractor or subcontractor comply with the requirements of the Davis-
Bacon Act and the Department of Labor (DOL) regulations (29 CFR part 5, Labor Standards
Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction).
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
This includes a requirement for the contractor or subcontractor to submit to the non-Federal
entity weekly, for each week in which any contract work is performed, a copy of the payroll and
a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6).
Condition/Context
We noted a project during fiscal year 2009 that was subject to the Davis-Bacon requirements.
We noted that the required prevailing wage clauses werc not included in the contract and the
weekly certified payrolls had not been submitted as required. We were informed that the County
planned to obtain the certified payrolls upon project completion; however, the requirements
dictate that weekly certified payrolls are to be submitted during the course of the project.
Questioned Costs
$183,452
Cause/Effect
Internal controls with respect to compliance with Davis-Bacon Act requirements were not
operating effectively and the County is not in compliance.
Recommendation
The County should ensure that the required prevailing wage clauses are included in all contracts
subject to the Davis-Bacon Act and that the required weekly certificd payrolls are obtained.
Views ()f Re.\ponsihle Officials and Planned Corrective Action
In order to rectify this deficiency Airport Authority personnel will review payroll submittals and
provide documentation to assure compliance with the Davis-Bacon Act. Additionally personnel
will work with any consultants and purchasing to include proper language in bids and contracts.
In addition our proccdure manual will be updated.
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Collier County, Florida
Schedule of Prior Audit Findings
For the Year Ended September 30, 2009
The current status of findings reported for the years ended September 30, 2008 and 2007 related
to major federal programs and state projects is as follows:
Finding 2008-1
Federal/State Program InjiJrmation
Federal Agency: US Department of Housing and Urban Development (HUD)
Home Investment Partnerships Program (HOME) """ CFDA No. 14.239
Community Development Block Program (CDBO) - CFDA No. 14.218
State Agency: Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP) - CSFA No. 52.901
Compliance Requirement: Allowable Costs
Condition/Context
We noted that for the maJonty of fiscal year 2008, the County's documentation supporting
payroll allocations for cmployees that work on multiple grants did not meet federal standards as
described in OMB Circular A-87 above. The County has used a Personnel Activity Report
(PAR) to allocate payroll salaries for employees who work on multiple activities. These reports
are prepared annually, at the beginning of each fiscal year, based on an estimate of the time the
employees are expected to work on a grant. The PAR does not show the total activity for which
an employce is compensated and does not requirc the employee's signature.
The County's Department of Housing and Human Services (the dcpartment responsible for the
administration of the HUD grants) initiated a timesheet process in fiscal year 2006 whereby
employees in the department indicate the projects (HOME, SHIP, or CDBO) to which their time
relates each week. These timesheets are signed by the employees and supervisors and kept in the
department for internal control purposes. For the majority of fiscal year 2008, these timesheets
were not provided to the County's payroll department to adjust the allocation of payroll costs
from the estimate as indicated in the annual PAR form to actual time spent. Thus, there is not an
"after the fact" accounting based on actual activity.
] ()02~] 130878
193
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
We recommend that the County continuc to use the timesheet process implemented during tiscal
year 2006 whereby the employees and a supervisor sign each time sheet. In addition, the County
should implement a process to provide the time sheets to the payroll department on a periodic
basis to match the related payroll allocated to each grant (as based on the PAR), to the actual
time spent working on the federal/state grant based on the after-the-fact timesheet, and any
adjustments necessary to true-up the estimated payroll charged to the grant (based on the PAR)
to the actual amount (based on the timesheets) should be made. Alternatively, the payroll
department could charge payroll costs to the grants based on actual time sheets submitted wcckly
as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay
period.
PAR reports should be signed by the employee and completed at least semi-annually for those
employees who work solely on one grant.
Planned Corrective Action
Effective July I, 2008, all grant staff were required to complete bi-weckly timesheets indicating
the amount of hours spent on each grant. This timesheet is signed by the employee and the
employee's supervisor. Journal entries are then made by fiscal staff to charge actual time and
effort worked to the appropriate grant.
In an effort to mitigate this finding even further, effective January I, 2009, the Human Resources
department began processing bi-weekly time and effect entries for all Housing and Human
Services grant staff. Staff will continue to complete thcir bi-weekly timesheets. The time sheets
will be sent to Human Resources to enter the actual time into SAP prior to the payroll actually
posting to SAP. This will allow for actual time spent to be charged directly to the appropriate
grant in SAP, thereby eliminating the need to process journal entries at a later date.
Current Status
The proposed correction included a manual step, which was missed. Staff realized this during the
first quarter of FY 2009 and revised the procedure. EfTective January 17, 2009, the Human
Resources Department began processing bi-weekly time and effort entries for all Housing and
Human Services grant staff. Stafl submits time sheets that are signed by the employee and
management to fiscal staff for review. The timesheets are forwarded to Human Resources to
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
enter the actual percentage of time and effort into SAP prior to payroll expenses actually posting
to SAP. This will allow for "real time" charges directly to the appropriate grant in SAP, thereby
eliminating the need to process journal entries at a later date. Also see current year finding
2009-1 above.
Finding 2008-2
Federal Program lnfi)rmation
U.S. Department of Justice
State Criminal Alien Assistance Program (SCAAP) - CFDA No. 16.606
Compliance Requirement: Reporting
Condition/Context
In addition to overtime which appears to be allowable based on the information stated in the
original finding, the County included wage benefits (i.e. incentives, training costs, retirement,
group life and health insurancc, and workers compensation) totaling $6.5 million in the
calculation of total correctional salaries reported in the SCAAP grant application for the FY 2007
SCAAP grant.
Also, the number of certilied correctional officers employed during the reporting period reported
in the application of 321 was overstatcd by 65 due to vacant positions being erroneously
included in the amount submitted in the application.
Recommendation
We understand from the Sheriff's personnel that benefits were appropriately excluded from the
FY 2008 SCAAP award application. In the future, we recommend that the Sheriff review
program guidelines and contact thc grantor agency if reporting criteria are not clearly stated or if
clarification is needed in interpreting information contained in the program guidelines. Written
documentation from the grantor agency should be retained to support any such correspondence.
Additionally, a thorough review of future applications should be made in order to detect potential
errors such as with respect to the number of correctional officer positions reported as noted
above.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Planned Corrective Action
As stated in the recommendation, the calculation was changed for the FY2008 application. We
concur with this recommendation to contact the grantor agency in writing, if reporting criteria
are not clearly stated or if clarification is needed in interpreting information contained in the
program guidelines. We do believe, having dealt with this grant for many years, that there have
been years in which the criteria for calculation could be interpreted differently by different
parties. Documentation has not always been clear in establishing guidelines.
Current Status
The Collier County Sherifl's Office (CCSO) continues to contact the grantor agency in writing,
to clarify any uncertainty regarding grant guidelines, reporting criteria or grant related issues.
Written documentation is retained to support grant applications and grant actions. The Bureau of
Justice Assistance determined the unallowable costs for the FY 2006 and FY 2007 SCAAP
applications. The FY 2006 costs were deducted from the pending FY 2009 SCAAP award. The
unallowable costs from the FY 2007 SCAAP application were returned to the Bureau of Justice
Assistance from unspent funds.
Finding 2008-3
Federal Program InfiJrmation
Federal Agency/Program:
U.S. Department of Housing and Urban Development (HUD): Community Development Block
Grant / State's Program (DRI) - CFDA No. 14.228
U.S. Department of Transportation: Highway Planning and Construction Federal
Transit Cluster - CFDA No. 20.500/20.507
Compliance Requirement: Procurement, Suspension and Debarment
Condition/Context
Although the County indicated that its practice is to check the EPLS system, no documentation
evidencing that it had checked the EPLS was maintained, and a certification from the entity was
not collected or clause or condition included in the agreements, as applicable, for certain sample
transactions selected for testing.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
The County should perform the required verification by checking the EPLS (and documenting
evidence of the verification, when it was performed and by whom), collecting a certification
from the entity, or adding a clause or condition to the contract with that entity in accordance with
the Federal requirements.
Planned Corrective Action
Management concurs with this finding.
While the Department of Housing and Human Services (HHS) has always checked vendors
against the EPLS listing; this check did not include non-profit subrccipients. As of
December 2008, HHS now requires current audit reports and debarment certification letters for
all subrecipients as part of the grant application submission process. Once awards are made, the
assigned Grant Coordinator is responsible for checking all subrecipients, vendors and contractors
against the EPLS listing. Screen prints of the EPLS listing are made to prove verification and are
included in the tile. Debarment and audit reports have also been included in the Master File
Checklist which is included in the tile folder and reviewed by the Grants Manager.
The Transportation Division has started a new procedure during FY09 where all grant related
purchase orders will be approved by the Grants Coordinator. At the time of review for approval,
the Grants Coordinator performs verification that the vendor has not been suspended or debarred
or otherwise excluded at the EPLS website. The verification is printed and maintained in the
grant procurement file. In addition, current procedures include federal clause language and a
written certification tor all federal transit grant procurements over $50,000.
Other steps are taken by the Purchasing Department at the time of advertisement of bids and
rcquests tor proposals that include review of each project to determine if grant funding is
involved and whether there are specific compliance issues related to debarment. Forms are
provided to vendors requiring they certify they are not on the Excluded Parties List. Furthermore,
departments managing grants have been provided a link on the Purchasing Department website
to the EPLS website so they can complete their own verification.
Current Status
Collier County will apply currently enacted controls and measures operating effectively in one
division to agency-wide to ensure compliance. Also see finding 2009-2 above.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2008-4
Federal Program Information
U.S. Environmental Protection Agency
Capitalization Grants For Drinking Water State Revolving Funds (SRF) - CFDA No. 66.468
Compliance Requirement: Allowable Costs
Condition/Context
We reviewed all of the invOIces supporting the loan expenditures reported and noted two
invoices for consulting services dated in August 2008 totaling $12,942 included in the
August 28. 2008 disbursement request that had not been reviewed and approved by the related
Project Manager prior to seeking reimbursement under the loan program. We did not identify
any discrepancies or exceptions in our compliance testing.
Recommendation
We recommend that all invoices be properly reviewed and approved to ensure that they are
allowable costs prior to being charged to the loan program.
Planned Corrective Action
Public Utilities initiated a procedure for grants in December 2008 that now includes adding the
Accounting Technician's name to the SRF transmittal sheet. The Accounting Technician verities
whether all the invoices are properly approved and are paid. Alter this approval, it goes to thc
Project Manager, Director and the Administrator for approval of the disbursement request.
Current Status
The procedure noted above continues to be in effect.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2008-5
State Program Information
Florida Housing Finance Corporation (thc Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No. 52.901
Compliance Requirement: Reporting
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger. Accordingly, we were unable to validate the amount of expenditures
and program income reported in the Annual Report.
Recommendation
The County should implement procedures that require that the statutory reports be reconciled to
the general ledger and reviewed and approved by finance department staff prior to being tiled
with the State.
Planned Corrective Action
The Department of Housing and Human Services recognizes the importance of reconciling
statutory reports, internal stalT reports, and the general ledger. Procedures were implemented
following the FY07 audit. While these procedures greatly improved the accuracy and
accountability of the statutory and internal staff reports, they did not account for the point-in-
time nature of the statutory reports.
To efTectively control for, and document, the complete reconciliation of the statutory reports and
general ledger, the Department of Housing and Human Services will produce a "screen shot"
from within the general ledger software (SAP) to be included with the statutory report. The
purpose of this activity is to document the status of funds during the reporting timeframe.
Prior to submitting statutory reports, the Department of Housing and Human Services will
provide a copy of the report to the Clerk of Courts Finance Department for review. Approval of
the statutory report lies with the Board of County Commissioners.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Status
Recognizing that internal attempts at completing this difficult reconciliation have failed, Housing
and Human Services has budgeted SHIP grant funds to receive onsite and offsite technical
assistance (T A) from the Florida Housing Coalition (FHC). FHC is the technical advisor
designated by the grantor agency, Florida Housing Finance Corporation. The T A will consist of
reviewing current reconciliation procedures, reports and data collection and maintenance. ^ny
suggested improvements will be implemented. As of this writing, the contract for T A is being
review by the Housing and Human Services and the County Attorney's Office for form and legal
sufficiency.
Also see finding 2009-3 above.
Finding 2008-6
Federal Program Information
U.S. Department of Housing and Urban Development (HUD)
Community Development Block Grant I State's Program (DRI)
CFDA No. 14.228
Compliance Requirement: Reporting
Condition/Context
This federal grant is passed through to the County from the State of Florida, Department of
Community Affairs (the Department). The grant agreement between the Department and the
County sets forth various reporting requirements. We noted that the County completed the
required reports, as applicable, during fiscal year 2008, and we did not note any discrepancies.
However, there was no evidence that a review as to accuracy and completeness took place for
certain reports submitted to the Department (i.e. Contractual Obligation and MBE Report,
Projection of Contract Payments Form and Disaster Quarterly Status Report).
Recommendation
The County should implement procedures whereby review by someone other than the preparer is
obtained to help ensure completeness and accuracy of the reports submitted to the Department.
Such reviews and approvals should be documented to evidence that the review took place.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Planned Corrective Action
The Department of Housing and Human Services has implcmented procedures to ensure all
reports are reviewed for accuracy prior to submission to the Department of Community Affairs.
Once prepared, reports are reviewed for errors and/or omissions by thc Housing Manager. Once
approved as accurate, the Housing Manager signs the report to indicate completed review.
Copies of signed reports are maintained by staff of the Department of Housing and Human
Services.
Current Status
The Housing Manager reviews, signs and approves as accurate, all reports prior to submission to
the Florida Department of Community Affairs. Signed copies are maintained in program files.
Finding 2007-05
Federal Program Information
U.S. Department of Transportation
Highway Planning and Construction
CFDA Number: 20.205
Condition/Context
The same individual is responsible for both completing and approving the reimbursement
requests. The grant coordinator prepares the reimbursement requests and submits them to the
grantor agency for reimbursement. However, there is no review of the reimbursement requests
by someone other than the preparer for completeness and accuracy.
Recommendation
The County should ensure review and authorization by someone other than the preparer is
obtained in order to properly segregate the duties of requesting and approving reimbursement
requests, and to help ensure completeness and accuracy of the requests. Such reviews and
approvals should be documented to evidence that the review took place.
Planned Corrective Action
The following actions will be implemented.
1002-1130878
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
All grant reimbursement requests will be reviewed by the appropriate Official(s).
For all LAP funded highway projects, the Grants Coordinator will prepare the reimbursement
request. The Operations Managcr will revicw and approve the request prior to submission to the
grantor and Finance. The Operations Manager's review will be documented to provide an audit
trail to demonstrate segregation of duties.
For all grants other than LAP, invoices/reimbursement requests will be developed and/or
approved by the appropriate project manager and forwarded to the Grants Coordinator for
review, approval and processing. The Grants Coordinator will provide Finance a copy of the
grant invoices/reimbursement requests with all reconciliation documentation attached the same
day the request is submitted to the grantor. Payments from the grantor will continue to be
received by the Finance Department.
Current Status
The Grants Coordinator/Budget Analyst ensures all LAP reimbursement requests have a
documented review by the Operation's Manager. In absence of the Operation Manager, the
Division Administrator serves as backup. The reimbursement request process identified in the
corrective action plan was put into place late 2007 and continues to be followed.
Finding 2007-06
State Program If?formation
Florida Department of Environmental Protection
Statewide Surface Water Restoration and Wastewater Projects
CFSA Number: 37.039
Condition/Context
The project's grant agreement required that a linal report be submitted to the South Florida
Water Management District (the "District," pass though entity) by August I, 2007 to provide a
linal summary of the project. The final report to the grantor agency indicated "Scheduled Value"
for the deliverables totaling $16.5 million. The County was not able to provide support for or
reconcile this total to the expenditures for the project as recorded in the general ledger system.
However, we were able to agree the District's cost share in the final report to the grant agreement
and we noted that the expenditures in the general ledger system and in the final report were
significantly higher than the District's cost share under the grant agreement.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement procedures to ensure that reports are completed properly and that
adequate supporting documentation is maintained. Additionally, a more organized/systematic
approach should be taken to better identify specific project cxpenditures to be wholly or partially
reimbursed by a grantor agency vs. other general project expenditures.
Planned Corrective Action
At the completion of the project (actually four difl'erent projects combined under CFSA Number:
37.039), staff recorded that the incurred costs were equal to the original costs projected in the
grant. In fact, the actual costs incurred were greater than anticipated in the grant. As a result,
since actual costs exceeded the costs projected in the grant, staff felt that this satisfied the grant
agreement.
For the current year and going forward, the Public Utilities Engineering Department Grant
Coordinator will write and submit all interim and final project reports to the grantor, with
guidance on the exact project status from the respective project manager. The Coordinator will
maintain all project documents for each grant. Invoices and payment receipts for grant
reimbursements are issued by the Utility Billing and Customer Service section of Public Utilities.
Finally, an Excel spreadsheet will be created to track and identity expenditurcs associated with
purchase order numbers by grant task.
Current Status
The procedures noted above continue to be maintained.
Finding 2007-07
Federal Program Inj(Jrmation
U.S. Department of Justice
State Criminal Alien Assistance Program (SCAAP)
CFDA Number: 16.606
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Condition/Context
In addition to overtime which appears to be allowable, the County included wage benefits (i.e.
incentives, training costs, retirement, group life and health insurance, and workers compensation)
totaling $5.2 million in the calculation of total correctional salaries reported in the SCAAP grant
application for the FY 2006 SCAAP grant.
Recommendation
The Sherin- should review program guidelines and contact the grantor agency if reporting criteria
are not clearly stated or if clarification is needed in interpreting information contained in the
program guidelines. Written documentation from the grantor agency should be rctained to
support any such correspondence.
Views of Responsible Officials and Planned Corrective Action
The Collier County Sheriff's Office (CCSO) concurs with this recommendation to contact the
grantor agency in writing, as is CCSO's practice, if reporting criteria are not clearly stated or if
clarification is needed in interpreting information contained in the program guidelines. Written
documentation from the grantor agency will be retained, as CCSO normally does, to support any
such correspondence.
The Collier County Sheriff's Office has received SCAAP awards every year since 1997. SCAAP
guidelines are followed regarding all application submission requirements and eligible and
ineligible application inclusions. Questions arise when SCAAP Guidelines and SCAAP online
application forms have used different verbiage. The Bureau of Justice Assistance' Grant
Management System (GMS) has a "SCAAP IIELP" link in its SCAAP application site that is
available for applicant claritication or to resolve conflicting statements. SCAAP HELP refers
grantees directly to the applicable year's State Criminal Alien Assistance Program Guideline for
proper direction in resolving questionable grant rules to follow for or in the grant application.
The SCAAP Guidelines clearly state if a cost is eligible or ineligible. For example the FY 2006
SCAAP Guidelines clearly indicate in the "Correctional Officer Definition" who does and does
not qualify for inclusion in the officer count.
1002.1130878
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
The "FY 2006 SCAAP Guidelines" with respect to the "Correctional Otlicer Salary Calculation"
is included in the audit Criteria scction above. There is no reference to benefits not being eligible
for inclusion in the "actual salary expenditures" for the application reporting period. The 2006
SCAAP Guidelines are silent about benefits and management believes that it was reasonable to
include them in the calculation. We do not believe it is logical for bene tits to be an allowable
cost for only one year (FY2005) and then to revert back to years prior to 2005.
When comparing the above referenced SCAAP 2006 Guidelines Correctional Otlicer Salary
Calculation section to the SCAAP 2005 Guidelines Correctional Officer Salary Calculation
section, commencing in 2005, benetits are allowable inclusions in the correctional officer salary
calculation. No SCAAP Guideline after 2005 states that benetits are excluded. The CCSO
maintains DOJ/BJA did not exclude benefits in SCAAP Guidelines after 2005 and that SCAAP
2005 Guidelincs supersede 2002 SCAAl' Frequently Asked Questions about the eligibility of the
inclusion of benefits in the SCAAP 2006 corrcctions officer salary calculation.
FY 2005 SCAAP Guidelines indicates the following with respect to the "Correctional Officer
Salary Calculation:"
"Salary information reported in the SCAAP application must reflect the total salaries and
wages paid to full- and part-time correctional officers and others who meet the SCAAP
definition. The reported sum should total the jurisdiction's actual salary expenditures for the
applicable reporting period, not a projection, estimate, or average. Correctional officer salary
costs may include premium pay for specialized service (e.g., bilingual officers), shift
differential pay, and tixed-pay increases for time in service. It mav also include emplovee
benefits and overtime required by negotiated contract, statute, or regulation (e.g., union
agreements, contractual obligations, required post staffing minimums, etc). Office of
Management and Budget (OMB) Circular A-87 (www.whitehouse.gov/omb/
circulars/a087/toc.html) provides general guidance on how benetits are detined for units of
government."
To correct any possible questionable DOJ/BJA verbiage in the future, however, management will
request written clarification, as it normally does, from the DOJ/BJA when there is an unclear
SCAAP directive, contradiction, or what appears to be an omission in SCAAP Guidelines and
not depend on SCAAP Guidelines to be complete. Nonetheless, there is a duty on the part of the
grantor agency (DOJ/BJA) to explicitly state and include specitic language in the SCAAP
Guidelines each year about what costs are eligible and ineligible for application content.
Suppressing words in SCAAP Guidelines by DOJ/BJA does not indicate benetit eligibility
exclusion. It should also be noted that grantees and auditors are not privy to the numbers
DOJ/BJA uses in the formula to calculate and determine SCAAP awards which are only partial
1002-1130878
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
reimbursement for the costs associated with the control and custody of criminal illegal aliens.
Grantees must interpret grantor developed applications that may omit important application
sections that would olTer both the grantor and the grantee with application tield options to
indicate what is in compliance with grantor guidelines (e.g., a separate field for wages, a separate
field for fringe benefits, a separate field tor overtime). Also, there is the concept of fixed
compensation that is not addressed as eligible or ineligible by DOJ/BJA in their SCAAP
Guidelines, and would be applicable to grantees nationwide since fixed compensation includes
all benefits. This would mean that DOJ/BJA would be obligated, unless explicitly stated about
what would be ineligible, to include wages, fringe benctits, and overtime in actual salary
expenditures. Management believes the intent of the SCAAP 2005 Guidelines was there to
continue to permit the inclusion of benetits in the correctional officer salary calculation since
DOJ/BJA did not state otherwise in writing.
Current Status
The Collier County Sheriffs Office (CCSO) continues to contact the grantor agency in writing,
to clarify any uncertainty regarding grant guidelines, reporting criteria or grant related issues.
Written documentation is retained to support grant applications and grant actions. The Bureau of
Justice Assistance determined the unallowable costs for the FY 2006 and FY 2007 SCAAP
applications. The FY 2006 costs were deducted from the pending FY 2009 SCAAP award. The
unallowable costs from the FY 2007 SCAAP application were returned to the Bureau of Justice
Assistance from unspent funds.
Finding 2007-08
Federal/State Program /l'!fiJrmation
Schedule of Expenditures of Federal Awards and State Financial Assistance Projects
Condition/Context
The Schedule of Expenditures of Federal Awards and State Financial Assistance Projects (the
Schedule) provides total federal and state tinancial assistance project awards expended for each
individual federal and state program. Various revisions were required from the original Schedule
to the tinal Schedule due to errors and/or omissions that were identified by the County
throughout the reconciliation process which extended tor several months or through inquiries we
posed in relation to specific grants or variances from prior year amounts. We were also notified
of a communication the County recently received from a grantor agency indicating that certain
programs were not reported in the Schedule in prior years.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
The County should implement additional procedures and internal controls to ensure the
information used to develop the Schedule is accurate and complete and submitted on a timely
basis.
Planned Corrective Action
The County will review its current policies, processes and procedures. Additional procedures and
internal controls will be developed and implemented to monitor the information used to develop
the Schedule for grants and aid programs. A major consideration will be a central coordination
point for the processing and control of rcporting requirements.
Current Status
A cross agency team was established to examine the underlying issues involved and develop a
process to assure accurate information is provided for the Schedule of Expenditures. That team
identified a method for all those managing grants to identify and validate the expenditure
information, using a spreadsheet approach and a quarterly reconciliation to the of1icial financial
records. In addition, the process involved providing this information to a central person in order
to kcep current with required information.
The new process was implemented in July 2009 and the first reports were due in August for the
interim audit. The quarterly process formally started in mid-October for reporting of the full
fiscal year expenditures. Additionally, an intense eHort to implement a Grant Management
System integrated with the County's project management (RPM) and financial management
system (SAP) began in June 2009. The goals of the new system are to standardize and streamline
grants management processes and share grants information with all internal stakeholders. This
solution will enforce agency wide commonality and eliminate data entry redundancies by
integration with the core financial system. The new system went live on December II, 2009. All
new grants will be maintained in this system, allowing much easier access to expenditure
information for future reporting. All other previously awarded grants will continue to have
expenditure information reported using the previously described spreadsheet process.
Finally, the County Grants Office continues to provide training as necessary and uses the Grant
Manual issued in 2007 to provide ongoing one-on-one instruction on proper grant management.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2007-09
Federal Program Information
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Condition/Context
While the County has a broad standard of monitoring subrecipients, outlined in the One-Year
Action Plan, they do not have detailed policies and procedures in place to carry out such
monitoring. We selected two of the three subrecipients (Big Cypress, Inc. and Collier County
Housing Authority-CCHA) to which HOME funds were disbursed during the fiscal year. At the
time we performed our testing, we noted Collier County had not obtained or reviewed the audit
reports for either subrecipient during the year. County staff subsequently obtained the audit
reports. We also noted that there was no evidence of the monitoring (phone, desk or onsite
reviews) as described by the One-Year Action Plan, approved by HUD.
Recommendation
We recommend that management document and implement the policies and procedures required
to properly monitor subrecipients, and that management keep records to evidence such
monitoring.
Planned Corrective Action
Staff performs extensive desk and phone monitoring of all subrecipients. Desk monitoring occurs
during the receipt, analysis and processing of each payment request and phone monitoring occurs
on an ongoing basis. In addition, sub recipients provide a monthly status report on projects which
is a type of monitoring. Annual audits are requested from each subreeipient and those noted in
the finding have been received and placed in their files.
Management will, however, doewnent and implement more detailed policies and procedures
regarding monitoring and ensure that accurate records are kept as evidence of project monitoring.
Details should include dates of phone and desk monitoring, items covered and any follow-up
needed.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Status
Annual requests for audit reports and debannent letters continue to be issued. In the January-
February timeframe of each year staff reviews each open file to ensure current documents are
included in all project files. As stated previously, debarmcnt Ictters and audit reports are now
part of the application process for all new requests for funding. The section master calendar has
proved an invaluable tool for ensuring compliance is complcted correctly and in a timely
manner. Screen shots of EPLS status continucd to be included in all project filcs.
Finding 2007-10
Federal Program /nfiJrmation
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Condition/Context
During our testing of the HOME grant and review of the participants' files that were selected for
eligibility testing, we noted that onc participant to whom HOME funds were provided during the
year was assigned an incorrect tile number and was actually a participant for the COSO.
Recommendation
We recommend that management review monitoring controls to ensure that participants are
charged to the correct program and that any errors are identified and corrected.
Planned Corrective Action
I) A journal entry will be processed to post the expenditure to the proper fimd account.
2) Controls over data entry will be reviewed, and if necessary, revised.
1002-1130878
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Status
This finding has been resolved as each fiscal staff member responsible for signing off on
expenditures has been given a list of all account expenditures codes for HOME and CDBO and
has been instructed to compare the account string on the request for payment, to the account
string on the master account list. They have also been instructed to place a check mark or initials
next to the account string on the request for payment to ensure that it has been vcri lied.
Finding 2007-11
Federal/State Program Information
Federal Agency: US Department of Housing and Urban Dcvclopment (HUD)
Home Investment Partnerships Program (HOME) -~ CFDA No. 14.239
Community Development Block Program (CDBO) - CFDA No. 14.218
State Agency: Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP) - CSFA No. 52.901
Condition/Context
We noted that the County's documentation supporting payroll allocations for employees that
work on multiple grants did not meet federal standards as described in OMB Circular A-87. The
County uses a Personnel Activity Report (PAR) to allocate payroll salaries for employees who
work on multiple activities. These reports are prepared annually, at the beginning of each fiscal
year, based on an estimate of the time the employees arc expected to work on a grant. The PAR
docs not show the total activity for which an employee is compensated and does not require the
employee's signature.
The County's Department of Housing and Human Services (the department responsible for the
administration of the HUD grants) initiated a timesheet process in FY 2006 whereby employees
in the department indicate the projects (HOME, SHIP, or CDBO) to which their time relates each
week. These time sheets are signed by the employees and supervisors and kept in the department
for internal control purposes. These timesheets are not provided to the County's payroll
department to adjust the allocation of payroll costs from the estimate as indicated in the annual
PAR form to actual time spent. Thus, there is not an "after the fact" accounting based on actual
activity.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Also, we noted a salaried employee in our sample for the CDBU program whose payroll is
allocated 100% to the grant; however, semi-annual certifications were not completed as
described above.
Recommendation
We recommend that the County continue to use the timesheet process implemented during fiscal
year 2006 whereby the employees and a supervisor sign each time sheet. In addition, the County
should implement a process to provide the timesheets to the payroll department on a periodic
basis to match the related payroll allocated to each grant (as based on the PAR), to the actual
time spent working on the federal/state grant based on the after-the-fact timesheet, and any
adjustments necessary to true-up the estimated payroll charged to the grant (based on the PAR)
to the actual amount (based on the timesheets) should be made. Altcrnatively, the payroll
department could charge payroll costs to the grants based on actual time sheets submitted weekly
as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay
period.
PAR reports should be signed by the employee and completed at least semi-annually for those
employees who work solely on one grant.
Planned Corrective Action
I) Housing and Human Services Department will work with Human Resources Payroll staff
regarding the SAP module for time tracking to develop a process that will enable us to
charge the actual time incurred by the employee (after the fact) to a grant versus projected
budgeted allocation based on the PAR.
2) Housing and Human Services staff will continue utilizing the timesheet documentation
process developed in FY 2006.
3) Management will review the timesheets quarterly and compare them against cost allocations
to make adjustments accordingly.
4) The PAR forms will be revised to accommodate employee's signatme.
5) Departmental policies and procedures will be revised to reflect changes.
1002.1130878
211
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Status
This finding continued in FY 2009. The procedure implemented in FY 2008 included a manual
step which was missed. Effective January 17, 2009, the Human Resources Department began
processing bi-weekly time and effort entries for all Housing and Human Services grant staff.
Staff submits timesheets that are signed by the employcc and management to fiscal staff for
review. The time sheets are forwarded to Human Resources to enter the actual percentage of time
and effort into SAP prior to payroll cxpenses actually posting to SAP. This will allow for "real
time" charges directly to the appropriate grant in SAP, thereby eliminating the need to process
journal entries at a later date.
Finding 2007-12
Federal Program Information
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Condition/Context
The HOME Match Report was not submitted for fiscal year 2007. The County was not aware
that this report was required, and did not meet any of the exemption criteria.
In addition, the records used to track the HOME match contributions are not in accordance with
24 CFR 92.504. The tracking spreadsheet utilized by the County shows the matching
contributions by program but does not indicate the exact amount that was contributed. There is
no clear indication in the spreadsheet as to the date the contribution was made to the program
and we were unable to validate the amount contributed from the spreadsheet to the general ledger
as there are no index numbers or dates in the spreadsheet. In addition, the spreadsheet is not
reviewed to ensure compliance with the matching requirements. Upon drawdown of entitlements
the County is required to input the match contributed to the project to HUD's Integrated
Disbursement and Information System (lDIS), however, IDIS is unable to generate a report that
identifies the matching previously submitted.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Recommendation
We recommend that the County/Department of Housing and Human Services review HOME
program guidelines and provide the program managers with the reporting and recordkeeping
requirements. The County should implement a tracking system to ensure reporting requirements
are being met. The County should improve its method of tracking matching contributions to
support the amounts reported in IDIS (including source of funding: index numbers to trace
source to general ledger) and the general ledger.
Planned Corrective Action
I) Housing and Human Services (HHS) statl will review the HOME program guidelines to
further understand the HOME match requirements.
2) HHS staff has recently developed a tracking system to track the HOME match contributions
in compliance with 24 CFR 92.504 which is an improvement to the current tracking
mechanism,.
3) The HOME Match Report (HUD-40107-A) will be completed by September 30 of each year
and included in the Consolidated Annual Performance and Evaluation Report (CAPER).
4) Departmental policies and procedures will be revised to reflect the changes made.
Current Status
HHS staff requested and received technical assistance from the HUD Miami Field Office on
completing the HOME Match Log. The HOME match log continues to be completed and
submitted as an integrated part of the Consolidated Annual Performance and Evaluation Report
(CAPER). As part of the preparation of the CAPER a milestone timeline is now included to
ensure compliance in all aspects of the CAPER; the tasking for review and accuracy of the
HOME match report is now an integrated part of the CAPER timeline.
Finding 2007-13
Federal Program InfiJrmation
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
\0{12-\ 130878
213
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Condition/Context
The County did not submit Form HUD 60002 during the program year. The program received a
grant of which $200,000 went to a subrecipient, Big Cypress, to provide financial assistance with
the construction of low-income housing.
Recommendation
We recommend that the CountylDepartment of Housing and Human Services review HOME
program guidelines and provide the program managers with the reporting requirements. The
County should implement a tracking system to ensure reporting requirements are being met.
Planned Corrective Action
Housing and Human Services will review the HOME program guidelines and update our
ehecklist to ensure that the Section 3 reports are completed as indicated. Whenever a
subrecipient receives $200,000 or more in CDBG or HOME assistance as it relates to
construction, a Section 3 form will be included in the award package and completed. The report
will be sent to the field ot1ice by the deadline required.
Current Status
HHS staff has attended Section 3 training presented by the HUD Miami Field Ot1ice to better
understand the reporting requirements for Section 3. Inclusion of Section 3 reporting into the
CAPER timeline assignments/requirements continues to work well as an internal control.
Finding 2007-14
State Program Information
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No. 52.901
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger. Accordingly, we were unable to validatc the amount of expcnditures
reported in the Annual Report. Additionally, we noted that there were no amounts reported f()r
"program income (interest)" for the 2004/2005 and 2005/2006 grant award periods, however,
interest was earned on the unspent portion of the respective advances and should have been
ret1ected as program revenue.
Recommendation
The County should implement procedures that require that the statutory reports be reconciled to
the general ledger and reviewed and approved by finance department staff prior to being filed
with the State. The County should also establish a separate general ledger account or index code
for each entitlement year for interest income and ensure that interest income is appropriately
captured, reported, and expended as appropriate.
Planned Corrective Action
The HHS stafY will perform a reconciliation of SHIP transactions monthly to ensure that the
Annual SHIP report tracks to the SHIP annual report. This is a new procedure that was just
implemented. The SHIP grant support specialist will run reports at the end of each month and
reconcile those transactions to the activity in the SHIP spreadsheet. These reports are maintained
throughout the year and are expected to greatly improve staffs ability to reconcile with the
general ledger when preparing the SHIP Annual Report.
Current Status
The above "Planned Corrective Action" was not a sufficient control to ensure that statutory
reports reconciled to the general ledger. Housing and Human Services has budgeted SHIP grant
funds to receive onsite and offsite technical assistance (T A) from the Florida Housing Coalition
(FHC). FHC is the technical advisor designated by the grantor agency, Florida Housing Finance
Corporation. The T A will consist of reviewing current reconciliation procedures, reports and data
collection and maintenance. Any suggested improvements will be implemented. As of this
writing, the contract for T A is being review by the Housing and Human Services and the County
Attorney's Office for form and legal sufficiency.
10024] 130878
215
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2007-15
Federal Program InjiJrmation
U.S. Department of Housing and Urban Development (HUD)
Community Development Block Program (CDBO)
CFDA No. 14.218
Condition/Context
The County did not maintain documentation indicating that it had checked the EPLS for
subawards to subrecipients. Additionally, there was no certification from the entity or clause or
condition included in subrecipient agreements.
Recommendation
The County should perform verification of subrecipients by checking the EPLS (and
documenting evidence of the verification, when it was performed and by whom), collecting a
certification from the entity, or adding a clause or condition to the contract with that entity in
accordance with the Federal requirements.
Planned Corrective Action
HHS has reviewed the debarment status of every contractor and sub-contractor working on
construction projects in the EPLS system. The department will add debarment certification
criteria to the application process for each sub-recipient. No contract will be executed with a sub-
recipient until debarment review for that entity is perfDrmed. The debarment certification will be
added to our checklist for the project file.
Current Status
Collier County will apply currently enacted controls and measures operating effectively in one
division to agency-wide to ensure compliance.
1002-1130R78
216
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2007-16
Federal Program Information
U.S. Department of Housing and Urban Development (HUD)
Community Development Block Program (COB G)
CFDA No. 14.218
Condition/Context
The Form 60002, Section 3 Summary Report, Economic OpportunitiesjiJr Low- and Very Low-
Income Persons submitted by the County on January 18, 2008 for the reporting period of July 1,
2006 to June 30, 2007 specified that the total amount of award was $2,400,655. Howcver, this
award amount relates to the 2007-2008 entitlement for the program year that began on July 1,
2007. Accordingly, it appears that the incorrect award was used to complete this report.
The expenditures reported in the C04PR26 - CDBG Financial Summary report for the period of
July 1, 2006 through June 30, 2007 based on the IDIS system had not been appropriately
reconciled to the County's general ledger.
Recommendation
The County should implement proeedures that require that financial reports extracted from IDIS
be reconciled to the general ledger and reviewed and approved by appropriate staff on a timely
basis. Evidence of the reconciliation and of the review should be documented and retained.
Performance reports should be thoroughly reviewed for accuracy and completeness before they
are submitted.
Planned Corrective Action
I) Housing and Hwnan Services (HHS) stafT will review the HUD program guidelines
regarding report submission requirements.
2) HHS staff is in the process of development a reporting calendar whereas all HUD reports will
be submitted in a timely manner.
3) Report Form 60003, Section 3 Summary Report will be completed and submitted prior to the
deadline of September 30 of each year.
1002-1 \JOH78
217
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Status
Responsibility to ensure correct year data for the Section 3 Summary Report has been assigned
as a coordinated etTort to the Grant Section's Operations Coordinator and the Accountant. The
Operations Coordinator is responsible for producing proof of award amount for each subrecipient
award and the Accountant is responsible tor ensuring the general ledger accurately retlects the
award amount. The Accountant is responsible for completion of the C04PR26.
A department master calendar was created and HUD report deadlines and other important
deadlines are listed and reviewed by the Grants Operations Manager and the Depattment
Director.
The Section 3 report was completed and submitted on time.
1002.1130R7X
218
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Management Letter and State Reporting Requirements
Members of the Board of County Commissioners
Collier County, Florida:
We have audited the financial statements of the governmental actIvItIes, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Collier County, F]orida as of and for the year ended
September 30, 2009, which collectively comprise Collier County, Florida's basic financial
statements and have issued our rcport thereon dated February 10,20 I 0
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMS Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations. We have issued our Indepcndent
Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters,
Independent Auditor's Report on Compliance with Requirements Applicable to each Major Federal
Program and State Project and on Internal Control over Compliance, and Schedule of Findings and
Questioned Costs. Disclosures in those reports and schedule, which are dated February 10, 20 I 0,
should be considered in conjunction with this management letter. We have also issued our report
dated February 10, 20 lOon internal control over financial reporting and on compliance and other
matters based on an audit of the financial statements performed in accordance with Government
Auditing Standards. Disclosures in that report should be considered in conjunction with this
management letter.
Additionally, our audit was conducted in accordance with the provIsIOns of Chapter ]0,550,
Rules of the Auditor General, which govern the conduct of local governmental entity audits
performed in the State of Florida.
A deficiency in internal control exists when the design or opcration of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detcct and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or
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.
During our audit, we noted the following deficiencies in internal control not considered to be
material weaknesses or significant deficiencies as defined above.
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A. CURRENT YEAR FINDINGS AND RECOMMENDA nONS
2009-1 Fixed Assets
Observation
In previous years, the County capitalized large projects In lump sum amounts instead of
specifically identifying each asset and capitalizing separately. As a result, if individual items
within a large project, such as waterslides within a total "Park" capital asset balance, are
replaced, the individual item cannot be identified for proper disposal and replacement. Over
time, differences between the carrying value of the replaced asset and the carrying value of the
new asset can grow to be significant affecting depreciation expensc and gains or losses upon
disposition of assets.
Recommendation
We recommend the County implement a policy requiring all assets be accounted for individually
in order to corrcctly calculate depreciation based on the correct expected life, and to allow for
better tracking of all assets.
Management's Re.\1)(Jnse
Management strives to capitalize assets in a manner that allows individual identification.
However, componentization of certain capital assets is an acceptable practice and supported
within the GAAP hierarchy. Subsequent replacement of such a componentized capital asset
would then have to be expensed as a repair. Management will clarify this in their policics and
procedures.
2009-2 Goods Receipt
Observation
Certain prior year goods receipts were not reversed in a timely fashion in the County's financial
system. As such expenditures and liabilities were ovcrstated as of the end of the prior fiscal year.
This can occur when a goods receipt is recorded and the rclated invoice receipt is not proccssed
to clear thc transaction. I I' this is not corrected at year end, reversal in the subsequent fiscal year
results in a system generated entry that reduces the liability and expenditure. Since this entry
results in additional budget, a manual entry is concurrently processed to reclassify the reduction
in expenditure to an increase in miscellaneous revenue. Thc net effect on expenditures is zero
and miscellaneous revenue is overstated.
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Recommendation
Departments should be held accountable for analyzing outstanding goods receipts at year end to
ensure all unapplied goods receipted in SAP are investigated in a timely manner. This should
take place as part of the annual year-end close process to cnsure accurately reporting these
expenses in the year incurred.
Management's Response
Management concurs with this comment. Staff has developed additional reporting tools that have
been provided to user departments. These reports will allow users to continually monitor their
outstanding goods receipts. This will ensure that expenditures and liabilities are properly stated
at the end of the fiscal year.
2009-3 Other Postemployment Benefits
Observation
The County does not appear to perform due diligence over the actuarial results in which
information would be verified between data provided to the actuary by the County's claim
processor third-party administrator (Meritain), County Risk Management and the Clerk's
Finance Department. The lack of review and verification of the underlying data given to the
actuary could result in a material misstatement in the Other Post Employment Benefits liability
and other accrucd liabilities, such as Voluntary Scparation Incentive Program pay-outs.
Recommendation
The County should perform verification checks betwccn the Valuation Report and undcrlying
data, such as vcrifying: the pay as you go expense, number of rctirees, number of active
participants, etc. In addition, County Human Rcsources, County Risk Management, County
Management and the Clerk's Financc Department as well as thc third party actuary and claim
processor should be involved when discussing underlying assumptions, processes and plans for
the valuation. This will enhance communication between the interested parties and rcduce the
risk of miscommunication and the inefficiencies that may result.
Management's Response
Stafl' will coordinate with the TPA, Finance, HR and the actuary to assure that the employee's
enrollment and claims data that is reportcd to the actuary in thc future is accurately reported
according to the proper employee type such as active, COBRA, Retiree, and VSIP to assure
greater accuracy in thc calculation ofOPEB.
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2009-4 Conflict of Interest Policies
Ohservation
We became aware of a potential conflict of interest with respect to the HHS director who is also
chairman of the board of a non-profit organization to whom IIHS makes payments for services.
Wc wcre informcd that this individual, who is ultimately responsible for recommending funding
and approving payments as the director of the departmcnt, also served as the authorizing party
for the sub-recipient claim attestations on a payment request made to the County.
Recommendation
We recommcnd that the County review its conflict of interest policies and ensure it has an
adequate process in place to cither prevent or detect thesc types of potential conflicts.
Additionally, when these types of contlicts are identified, we recommend the County document
how it is addrcssed to ensure conflicts of interest do not actually occur.
Management's Response
Management concurs. Staff is conducting a review of existing CMA (County Manager Agency)
procedure as directed by the Board of County Commissioncrs at their meeting on February 9,
2010.
B. STATUS OF PRIOR YEAR RECOMMENDATIONS
2008-0
Financial Reporting
Condition
In connection with our audit we noted a financial rcporting difference that required an audit
adjustment to restate the fiscal year 2008 beginning net assets for the County Water and Sewer
cntcrprise tund and the entity-wide business-type activities by approximately $1.5 million related
to planning costs that had been inappropriately capitalized in prior periods. During the 2008
fiscal year end close process management comprehensively evaluated costs capitalized as work
in process through fiscal year 2007 and deternlined that planning costs that could not be
reasonably associated with specific assets should not have been capitalized.
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This misstatement resulted from financial reporting deficiencies relatcd to the capitalization
process that had been noted in prior audit rcports. Thc County has multiple departments building
and incurring costs that can be capitalizcd and costs that are operating in nature. As such, it is
critical that the County continue to improvc financial reporting controls in order to ensure costs
arc not inappropriately capitalized.
Recommendation
We recognize the County has put some controls in place around the capitalization of costs and
the review of these capitalizations. We recommend that management continue to review and
improve its control and monitoring activities related to its capital assets and that such
enhancements also involve other county departments that are vested with the responsibility of
administering capital assets.
Management's Response and Corrective Action Plan
Management concurs with this finding and is committed to the further enhancement of its
capitalization procedures, particularly as they relate to construction work in process. The
County's procedurcs, put into place as a result of thc liscal year 2007 audit, identified and
addressed the issue discussed above for all county departments that administer capital assets.
Current year status:
The County continues to work with county departments to enhance capitalization procedures.
C. OTHER REQUIRED COMMUNICA nONS
The Rules of the Auditor General, Section 10.554 (I )(i)(I), require that we address in the
management letter whethcr or not corrective actions have been taken to address signi ficant
findings and recommendations made in the prcceding annual financial audit report. The status of
recommendations made in the preceding annual financial audit is included abovc.
In connection with our audit, we notcd no instances of noncompliance with Section 218.415,
Florida Statutes regarding the investment of public funds.
The Rules of the Auditor General, Section 10.554(1 )(i)(3), require that we address in a
management letter any recommendations to improve Collier County, Florida's financial
managcment, accounting procedures, and internal controls. Current year recommendations to
improvc Collier County, Florida's financial management accounting procedures, or internal
controls are included above.
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The Rules of the Auditor General, Section 10.554(1)(i)(4), require that we address in a
management letter any violations of provisions of contracts and grant agrcemcnts or abuse that
have an effect on the linancial statements that is less than matcrial but more than
inconsequcntial. The results of our audit disclosed no violations of provisions or contracts and
grant agreement or abuse that would have an effect on the financial statement that is less than
material but morc than inconscqucntial.
The Rules of the Auditor General, Section 10.554(1)(i)(5), require disclosure in the managcment
letter of thc following mattcrs, if not addrcssed in thc auditor's report on internal control over
financial reporting and on compliancc and other matters or in the schedule of lindings and
questioned costs, and are not clearly inconsequential:
(a) Violations of laws, rules, regulations, and contractual provisions or abuse that have
occurred, or are likcly to havc occurred, would have an immaterial effect on the
financial statements, and were discovered within the scopc of the audit;
(b) Control deficicncics that are not significant deficiencies, including, but not limited to:
(I) Improper or inadequate accounting procedures (e.g., the omission of required
disclosures from the annual financial statements);
(2) Failures to properly record financial transactions; and
(3) Other inaccuracies, shortages, defalcations, and instances of fraud discovered by,
or that come to the attention of, the auditor.
The results of our audit disclosed no violations of laws, rules, rcgulations, and contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies other than
thc internal control recommendations included above.
The Rules (Jfthe Auditor General, Section 10.554(1)(i)(6), also require that thc name or official
title and legal authority for the primary government and caeh component unit of the reporting
entity be disclosed in the management letter, unless discloscd in the notes to thc financial
statements. In that rcgard, Collier County, Florida was established under Chapter 107, Section L
Florida Statutes. Thc legal authority for Collier County and its component units are discussed in
Note I to the financial statements. During the course of our audit of the County, nothing came to
our attention that would cause us to bclieve that the County was in a state of linancial
cmcrgcncy, as delined by Section 218.503(1), Florida Statutes.
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As required by the Rules oj'the Auditor General, Section 10.554(1 )(i)(7)(b), the County filedits
report pursuant to Scction 218.32(1)(a), Florida Statutes. Bascd on our review of the Iinancial
information containcd in this report, no material differenccs wcre f(mnd in comparing this
information to that of thc basic financial statements.
As rcquircd by thc Rules oj'the Auditor General, Sections 10.554(1 )(i)(7)(c) and 10.556(7), we
applied financial condition assessment procedures. It is managcmcnt's responsibility to monitor
the County's financial condition, and our financial condition asscssment was based in part on
rcpresentations made by management and the revicw of financial inf(xmation provided by samc.
This report is intended solely for the information and use of the Board of County
Commissioners, management and the Auditor Gcneral of the State of Florida, and is not intended
to be and should not bc used by anyone other than thcse specificd parties.
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February 10,2010
1 (}02-113m08
7
ANNUAL DEBT REPORT (UNAUDITED)
Pursuant to the Collier County Debt Policy the following Tables were prepared for the fiscal
year ended September 30, 2009.
Table 1. Calculation of Collier County General Governmental Debt Ratio
Table 2. Calculation of Collier County Enterprise Debt Ratios
Summary Debt Statement for Fiscal Year 2009
TABLE 1
Calculation of Collier County General Governmental Debt Ratio
For the Fiscal Year Ended September 30, 2009
Bondable revenues, as defined by Collier County Debt Policy:
Current Ad Valorem Taxes
Governmental Impact Fees
Half Cent Sales Tax
Developmental Fees
State Revenue Sharing
5th Cent Local Option Gas Tax
6th Cent Local Option Gas Tax
Constitutional Gas Tax
Seventh Cent Gas Tax
Ninth Cent Gas Tax
Parks and Recreation Fees
Tourist Development Tax
Court Facilities Fees
Communications Services Tax
Total bondable revenues
Fiscal 2009 governmental debt service requirements:
Series 2002 Capital Improvement Bonds
Principal:
Interest:
Series 2003 Capital Improvement Bonds
Principal:
Interest:
Series 2005 Capital Improvement Bonds
Principal:
Interest:
Series 2003 Gas Tax Bonds
Principal:
Interest:
Series 2005 Gas Tax Bonds
Principal:
Interest:
State Infrastructure Bank Loan
Principal:
Interest:
Commercial Paper Program
Principal:
Interest:
Total fiscal 2009 governmental debt service requirements
Governmental debt ratio of fiscal year 2009 debt service requirements
to total bondable revenues (13.0% maximum allowed by policy)
Notes:
All revenues are GAAP based accrual and debt service is based upon current amortization tables for
the fiscal year indicated. Debt prepayments are not included as debt service requirements.
$ 295,062,514
18,170,549
26,778,872
8,285,707
7,558,419
4,981,074
6,491,053
3,909,447
1,690,855
1,383,535
6,983,260
12,345,057
683,744
7,524,101
$ 401,848,187
$ 2,345,000
1,467,973
1,340,000
1,658,519
5,520,000
7,108,569
6,180,000
3,313,690
480,000
4,608,738
1,957,377
82,623
1,338,118
$ 37,400,607
9.3%
TABLE 2
Calculation of Collier County Enterprise Debt Ratios
For the Fiscal Year Ended September 30, 2009
Collier County Water and Sewer District:
Total Sales Revenue
Allowance for Funds Prudently Invested
Miscellaneous Revenue
Total Operating Revenue
Non-Operating Revenue
Gross Revenue
Less: Operation and Maintenance
Expense (excluding Depreciation)
Net Revenue Available for Debt Service (1)
Total Fiscal Year 2009 Debt Service on Bonds (2)
Net Revenue Debt Service Coverage on Bonded Debt
(100% Required) - (lf2)
Other Pledged Funds:
System Development Fees
Special Assessment Proceeds
Total Pledged Funds Available for Debt Service (3)
Total Fiscal Year 2009 Debt Service on Bonds (4)
Total Pledged Funds Debt Service Coverage on Bonded Debt
(125% Required) - (3/4)
Total Pledged Funds Available for Debt
Service After Payment of Bonds (5)
Total Fiscal Year 2009 Debt Service on
Subordinated Indebtedness. (6)
Calculated Coverage on Subordinated Indebtedness - (5/6)
Total Pledged Funds Available for System
Purposes
.-Debt service on subordinated indebtedness includes prepayment
on State Revolving Fund Loan WWS9716P.
S 100,329,288
568,380
3,641,564
104,539,232
2,587,663
107,126,895
49,766,283
S 57,360,612
S 12,262,974
468%
S 6,320,015
614,026
S 64,294,653
S 12,262,974
524%
S 52,031,679
S 9,884,787
526%
S 42,146,892
Summary Debt Statement for Fiscal Year 2009
General Governmental Debt:
The governmental debt ratio increased from 8.0% for fiscal year ended September 30, 2008 to
9.3% for fiscal year ended September 30, 2009. The governmental debt ratio is the ratio of debt
service requirements to total bondable revenues, as defined by Collier County's Debt Policy.
The increase in the debt ratio is a rcsult of a decrease in total bondable revenues of 9.3%, or
$40,950,660, for fiscal year 2009. Governmental impact fce revenues decreased by 50.5%
versus last fiscal ycar, Ad Valorem Tax receipts decreased by 4.2%, developmental fees were
down by 33.7% and sales tax receipts were 10.8% less than fiscal year 2008. Total
governmental debt service requirements increased by 5.0% from fiscal year 2008 to fiscal year
2009, due to the first of five payments related to the Statc Infrastructure Bank loan. Collier
County's maximum allowable governmental debt ratio is 13.0%, and the County is below this
maximum.
In July of2009, during a routine surveillance Fitch Ratings downgraded Collier County's Capital
Improvement Revenue bonds to A+ from AA- and affirmed Collier County's Gas Tax Revenue
bonds at A+. The downgrade of the Capital Improvement Revenue bonds was based on multiple
years of deeiining sales tax revenues. A rating of A+ is an indication by Fitch of an investment
grade instrument, but one where the "economic situation can affcct finance".
Based upon the decrease in salcs tax receipts mentioned above, Moody's Investors Services
downgraded Collier County's Capital Improvement Revenue bond rating from Al to A2. This
downgrade occurred during a routine Moody's rating surveillance in Dccember 2009. Collier
County's Gas Tax Revenue bond rating remained unchanged at A2. Overall, Collier County's
issuer rating was affirmed at Aa2 by Moody's Investors Scrvices. An issuer rating is an
indicator of overall ability to meet debt service requirements and the rating of Aa2 is the third
highest rating available from Moody's. A rating of Aa2 is an indication by Moody's Investors
Services of an investment grade issuer with "very low credit risk", but greater long-term risk
than a Aaa issucr.
Prepayments totaling $19,513,000 were made on County pooled commercial paper debt. These
prepayments are not shown as part of dcbt service requirements for purposes of calculating the
governmental debt service ratio, as defined in the Collier County Debt Policy.
There were no non-general obligation general governmental dcbt borrowings for fiscal year
2009.
CoIIier County Enterprise Debt:
Currently, the Collier County Water and Sewer District (District) is the only enterprise activity
with bonded dcbt outstanding. The Collier County Debt Policy does not set a maximum
allowable enterprise debt ratio, but coverage rcquirements are set by bond covenants. Net
revenues, defincd as operating revenues plus non-opcrating revenues less operating expenses,
excluding depreciation, must cover bonded debt scrvice at 100%. Total pledged funds, dcfined
as net revenues plus system development fees and spccial assessments must cover bonded debt at
125%. Net revenue coverage on bonded debt was 468% and total pledged funds coverage on
bonded debt was 524% for fiscal year 2009. Net revenuc available for debt service increased
during fiscal year 2009 by 3.0%. Operating expenses, excluding depreciation, were essentially
unchanged when compared to fiscal year 2008 due to cost containment measures adopted by the
District. Total pledged funds coverage decreased during fiscal ycar 2009 as system development
fee revenues decreased by 35.2% over the same period. Bonded debt service payments remained
essentially unchanged from fiscal year 2008. The District's calculated coverage on subordinated
debt, all in the form of State Revolving Fund Loans, is 526%. The calculated coverage includes
the fiscal year 2009 prepayment of State Revolving Fund Loan WW597l6P. The total pledged
funds coverage required by the loan agreements varies between 115% and 125%, depending
upon the individual loan agreemcnt.
In July of 2009, during a routine surveillance Fitch Ratings affirmed the District's Water and
Sewer Revenue bond rating at AA. A rating of AA is an indication by Fitch of an investment
grade instrument issued by "quality companies" with a slightly higher risk than AAA. During
December 2009, the Collier County Water and Scwer District was contacted as part of a routine
ratings surveillance conducted by Moody's Investors Services. As a result of the Moody's
surveillance the District's revenue bond rating remained unchanged with a rating of Aa3. A
rating of Aa3 is an indication by Moody's Investors Services of an invcstment grade issue with
"very low credit risk", but greater long-term risk than a Aaa issuer.
During fiscal year 2009, the District drew $10,071,825 from the Board pre-approved line of
crcdit from the low interest State Revolving Fund program.
The District maintains a single renewal and replacement reserve for watcr and sewer, for its
capital spcnding program. The District's continued strategy of revenue-centric, cost-contained,
real-time capital program management, and its decisions against measured operational risk, were
deliberately designed to manage deferral of capital construction. This responds to market
uncertainty and, therefore, increases the District's outstanding debt coverage.
In fiscal 2009, the District advanced $18,550,000 to the County's Capital Improvement Revenue
Bonds fund for the purpose of funding cash reserve requirements in accordance with the
County's related Capital Improvement Revenue bond covenants. The cash reservc funding was
ncecssitated by downgrades of the surety policy providers for the Capital Improvement Revenue
Bonds.
Beginning in FY07 and throughout FY08 and FY09, the District, operating in a volatilc and
uncertain cost and revenue market environment, deferred with measured operational risk
significant levels of spending in capital improvement projects. The deferred capital expenditures
in FY08 alone approximatcd $167 million. In FY09, the District deferred an additional $16
million in the capital program. The deferral of significant capital rehabilitation projects in
FY07, FY08 and FY09 continues to enhance the District's liquidity and financial flexibility.
These decisions protect the District's favorable bond rating; avoids thc potential of future user-
fee rate spikes, and avoids unplanned and costly borrowing with the associated increases in
annual debt service. It also puts the District in thc position to sustain financial stability in the
face of the uncertaintics in the local economy for thc next two or three years, and allows for the
appropriate rcsponse to economic recovery. However, this deferral of capital spending has
elevated the risk level of everyday operations within the utility. Through aggressive and
proactive operational management, this risk level is currently acceptable in the balance of the
overall mission to stay in operational and regulatory compliance, meet customer demand, and
posture for a best-value future. These deferrals, however, cannot be considered avoided cost as
the deferred projects will need to be completed within the next three to five years.
SPI'CIAL PIIRPOSE FINANCIAl. STATEMENTS
Collier County, Florida
Clerk of the Circuit Court
Year Ended September 30, 2009
With Report ofIndependent Certitied Public Accountants
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Report of Independent Certified Public Accountants
Thc Honorable Dwight E. Brock, Clerk of the Circuit Court
Collier County, Florida
We have audited the accompanying special purpose financial statements of each major fund and
the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit
Court (the Clerk), as of and for thc year cnded September 30, 2009, as listed in the table of
contents. These special purpose financial statements are the responsibility of the Clerk's
management. Our responsibility is to express opinions on these special purpose financial
statements based on our audit. The prior year summarized comparative financial information has
bcen derived from the Clcrk's spccial purpose financial statements for the year ended
September 30, 2008, and in our rcport datcd February 8, 2009, we expressed unqualified
opinions on the respective financial statements of each major fund and the aggregate remaining
fund information.
We conducted our audit in accordance with auditing standards generally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
wc plan and perform the audit to obtain reasonable assurance about whether the special purposc
financial statements are free of material misstatement. We were not cngaged to perform an audit
of the Clerk's internal control over financial rcporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit proccdures that are
appropriate in the circumstanccs, but not for the purpose of expressing an opinion on thc
effectiveness of the Clerk's internal control ovcr financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence supporting thc amounts
and disclosures in thc special purpose financial statements, assessing the accounting principles
used and significant cstimates made by managcment, as well as evaluating the overall special
purpose financial statement prescntation. Wc believe that our audit provides a reasonable basis
for our opinions.
As discussed in Note I, thc accompanying special purpose financial statcments referred to above
were prepared for the purpose of complying with Section 2 18.39, Florida Statutes, and
Chapter 10.577(3), Rules of'the Auditor Generalji}r Local Governmental Entity Audits. Thcse
special purpose financial statements are not intendcd to be a complete presentation of the Clerk's
financial position and its changcs in financial position, wherc applicable, thereof~ for thc year
thcn cnded in conformity with accounting principlcs gcncrally accepted in thc United States.
Additionally, the special purpose statcmcnts present only the Clerk and do not purport to, and do
not, present fairly the financial position or Collier County, Florida, as of September 30, 2009,
and the changcs in its financial position, where applicablc, for the year then endcd, in conformity
with accounting principlcs gcncrally accepted in the Unitcd Statcs.
0912-1\16348
Collier County, Florida
Clerk of the Circuit Court
Special Purpose Financial Statements
Year Ended September 30, 2009
Contents
Report oflndependent Certified Public Accountants ...................................................................... I
Special Purpose Financial Statements
Special Purposc Balance Shcet - Governmcntal Funds ..................................................................3
Special Purpose Statement of Revenues, Expcnditures, and Changes in Fund Balanccs-
Governmental Funds..................................................................................................................... 4
Special Purpose Statemcnt of Rcvcnucs, Expenditures, and Changes in Fund Balance -
Budget and Actual- General Fund...............................................................................................5
Special Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- Court Services Fund....................................................................................6
Spccial Purposc Statcment of Revcnues, Expenditures, and Changes in Fund Balance -
Budget and Actual- Public Records Modernization Fund ..........................................................7
Special Purpose Statement of Revenues, Expenditures, and Changcs in Fund Balance -
Budget and Actual- Juvenile Assessment Fund ..........................................................................8
Special Purpose Balance Sheet - Agency Funds.............................................................................9
Notcs to Financial Statemcnts........................................................................................................ I 0
Combining Information
Combining Balancc Shcet - Agcncy Funds...................................................................................23
Statement of Changes in Assets and Liabilities - Agency Funds..................................................24
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Mattcrs Based on an Audit of Special Purpose
Financial Statcments Performed in Accordance With Government Auditing Standards ...........25
Management Letter...................................................................................................................... ..27
Ol,l!l-lI I (,J48
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In our opinion, the special purpose financial statements referrcd to above present fairly, in all
material respects, the respective financial position of each major fund and the aggregate
remaining fund information of the Clerk as of Scptcmber 30, 2009, and the rcspective changes in
financial position thereof, and the respective budgetary comparison for thc general fund, thc
court services fund, the public records modernization fund, and the juvenile assessment fund for
the year then ended, in conformity with accounting principles generally acccpted in the
United Statcs.
In accordance with Government Auditing Standards, we have also issued our report datcd
December 17, 2009, on our consideration of the Clerk's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on thc internal control over financial reporting or on compliance. That report
is an integral part of an audit pcrformed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
Our audit was conducted for the purpose of forming opinions on the special purpose financial
statcments. The combining information is presented for purposes of additional analysis and is not
a rcquired part of the special purpose financial statemcnts. The combining information has been
subjected to the auditing proccdurcs applied in the audit of thc special purpose financial
statements and, in our opinion, is fairly statcd in all material respects in relation to the special
purpose financial statcmcnts taken as a whole.
This report is intended solely for the information and use of the Clerk, management, the Board of
County Commissioncrs of Collier County, Florida, and thc Auditor General of the State of
Florida, and is not intended to be and should not be used by anyone other than these
specified parties.
~M<-d of hUp
December 17,2009
U912-1116J48
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Collier County, Florida
Clerk of the Circuit Court
Special Purpose Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual- General Fund
Year Ended September 30, 2009
Variance
With Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 1,927.200 $ 1,927,200 $ 2,485,792 $ 558,592
Interest income 20,70 I ,000 20,70 I ,000 11,754,132 (8,946,868)
Total revenues 22,628,200 22,628,200 14,239,924 (8,388,276 )
Expend itures:
General government:
Personal services 6,778,600 6.778,600 6, t 93,283 585,317
Operating expenditures 2,447,800 1.907,800 t,713,626 194,174
Capital outlay 92,700 632,700 575,t87 57,513
Total expend itures 9,319,100 9,319,100 8,482,096 837,004
Excess of revenues over expenditures 13,309,100 ] 3,309, I 00 5,757,828 (7,551,272)
Other financing sources (uses):
Transfers in:
Collier County, Florida Board of County
Commissioners appropriations 357,600 357,600 297,600 (60,000)
Other funds 40,000 40,000 37,000 (3,000)
Transfers out:
Collier County, Florida Board of County
Commissioners:
Distribution of surplus interest (13,706,700) ( 13,706,700) (6,092,428) 7.614,272
Total other financing sources (uses) (13,309.100) (13,309,100) (5,757,828) 7,551,272
Extraordinary bond expense
Excess of revenues and other financing
sources over expenditures
Fund balance - beginning of year
Fund balance end of year $ $ - $ - $
See accompanying notes.
0912-1116348
5
Collier County, Florida
Clerk of the Circuit Court
Special Purpose Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual- Court Services Fund
Year Ended September 30, 2009
Variance
With Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental $ $ 2,132,652 $ 2,132,652 $
Charges for services 4,300,900 2,709,000 5,147,403 2,438.403
Fines and forfeitures 7,894.200 4.872,200 2,489,898 (2,382.302)
Interest income 88,200 53,598 t4,026 (39,572)
Total revenues 12,283,300 9,767,450 9,783,979 16,529
Expenditures:
General government:
Personal services 9,888,400 8,227,675 7,995,319 232.356
Operating expendjtun~s 680,323 518,639 364,4t5 154,224
Total expenditures 10,568,723 8,746,314 8,359,734 386,580
Excess of revenues over expenditures 1,714,577 1,021,136 1,424,245 403,109
Other financing sources (uses):
Transfers out:
Distribution of excess court revenue to
the State (1,714,577) (1,021,136) ( I ,235,635) (214,499)
Total other tinancing sources (uses) (1,714,577) (1,021,136) (t,235,635) (214,499)
Excess of revenues and other financing
sources over expend hures 188,610 188.610
Fund balance . beginning of year
Fund balance end of year $ - $ $ 188,6tO $ 188,610
See accompanying noles.
0912-11 [6J48
6
Collier County, Florida
Clerk of the Circuit Court
Special Purpose Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual- Public Records Modernization Fund
Year Ended September 30, 2009
Variance
With Final
Budget
Budget Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 1,025,000 $ 1.025,000 $ 807,239 $ (217,761 )
Fines and forfeitures 6t,465 61,465
Interest income 393,300 393,300 34,193 (359,107)
Total revenues 1,418,300 1,418,300 902,897 (515,403)
Expenditures:
General government:
Personal services 1,836,900 1 ,836,900 1,697,946 138,954
Operating expenditures 2,429.550 2,429.550 586,039 1,843,511
Capital outlay 1,660,100 3.160,100 597 , 992 2,562, 108
Total expenditures 5,926,550 7,426,550 2,88t,977 4,544,573
Excess (deficiency) of revenues
over (under) expenditures (4,508,250) (6,008,250) ( I ,979,080) 4,029,170
Excess of revenues and other financing
sources (uses) over (under) expenditures (4,508,250) (6,008,250) (t ,979.080) 4,029,170
Fund balance - beginning of year 5,318.800 6.220,900 6,269,555 48,655
Fund balance - end of year $ 810.550 $ 212.650 $ 4,290,475 $ 4.077,825
See accompanying noles.
()<)j2-111634!l
7
Collier County, Florida
Clerk of the Circuit Court
Special Purpose Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual- Juvenile Assessment Fund
Year Ended September 30, 2009
Variance
With Final
Bndget
Budget Positive
Original Final Actual (Negative)
Revenues:
Miscellaneous $ 24.700 $ 24.700 $ 32,571 $ 7,871
Interest income 1,300 1,300 70 ( 1,230)
Total revenues 26,000 26,000 32,641 6,641
Expend itures:
General government:
Operating 100,000 100,000 100,000
Total expend itures 100,000 100,000 t 00,000
Excess (deficiency) of expenditures
over (under) revenues (74,000) (74,000) (67,359) 6.641
Other finane ing sources:
Transfers in from the Collier County,
Florida Board of County Commissioners 74,000 74,000 73,700 (300)
Total other financing sources 74,000 74,000 73,700 (300)
Excess (deficiency) of revenues and other
financing sources over (under)
expenditures and other uses 6,34t 6.341
Fund balance - beginning of year 11,123 11.123
Fund balance - end of year $ $ $ 17.464 $ 17 .464
See accompanying notes.
0912-1\16_,48
8
Collier County, Florida
Clerk of the Circuit Court
Special Purpose Balance Sheet ~ Agency Funds
Assets
Cash and cash equivalents
Total assets
Liabilities
Duc to the Collier County,
Florida Board of County Commissioners
Due to other governments
Deposits
Total liabilities
See accompanying notes.
0912-1116_~4g
September 30
2009 2008
$ 18,806,440 $ 17,848,166
$ 18.806.440 $ 17,848,1 66
$ 339,184 $
1,208,478
17,258,778
$ 18.806.440
86,359
1,349,382
16,412,425
$ 17,848,166
9
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements
Year Ended September 30, 2009
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Clerk of the Circuit Court (the Clerk) is an elected constitutional
officcr as provided for by the Constitution of the State of Florida. The Clerk's budget is
presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the
Florida Clerks of Court Operations Corporation f()r the court serviccs fund. The Clcrk's budget
including thc public records modernization fund and the juvenile asscssment center fund is
approved by thc Clerk.
Thc special purpose financial statements presentcd include the general fund, special revenue funds,
and agency funds of the Clerk's office. The accompanying special purpose financial statcments
were prepared for the purpose of complying with Section 2 18.39, Florida Statutes, and
Scction 10.557(3), Rules of the Auditor Generalfhr Local Governmental Entity Audits.
Section 10.556(4), Rules oj'the Auditor GeneralfiJr Local Governmental Entity Audits, requires
thc Clerk to only present fund financial statements. Accordingly, due to the omission of
governmcnt-wide financial statements and related disclosures including a management's
discussion and analysis, these special purpose financial statements do not constitute a complete
presentation of the financial position of the Clerk as of September 30, 2009 and the changes in its
financial position for the year then ended in conlormity with Governmental Accounting Standards
Board (GASB) Statement No. 34, Basic Financial Statements and Management's Discussion
and Analysis- fiJr Stale and Local Governments, but otherwise constitute spccial purpose
financial statements prepared in conformity with accounting principles gcnerally acceptcd in the
United States.
The financial activities of the Clerk, as a constitutional officer, arc included in thc Collier
County, Florida Comprehensive Annual Financial Rcport.
The general opcrations of the Clerk are funded by fees from third parties, appropriations from the
Collier County, Florida Board of County Commissioners (Board), appropriations from the Statc
of Florida (since luly I, 2009) and interest income. Pursuant to Section 2 18.32(2) Florida
Statutes. funds remaining in the general tund, at fiscal year-end in excess of amounts expended,
arc returned to the Board. Excess revcnues returned to the Board are reflectcd as transfers out in
the Clerk's gcneral fund. Court-related operations are funded by the State via charging fees and
fincs (through ./une 30, 2009) and appropriations from the State of Florida (since ./uly 1, 2009)
and any surplus is returned to the Statc.
09!1-1116348
10
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special purpose fund financial statemcnts report detailed information about the Clerk. The
focus of governmental fund financial statements is on major funds rather than reporting funds by
type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using thc flow of current financial resources measurement
focus. Only current assets and current liabilitics, generally, are included on the special purpose
balance sheet. Operating statcmcnts for these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in nct current
assets.
The Clerk reports the following major governmental funds:
General Fund The general fund is used to account for all revenue and expenditures
applicable to the general operations of the Clerk, which are not accounted for in another
fund. All operating revenue not specifically restricted or designated as to use, is recorded in
the general fund.
Court Services Fund _n This fund was established to account for court-related filing fees,
service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by
Scction 28.35, Florida Stalutes.
Public Records Modernization Fund - This fund is mandated by Section 28.24(l2)(d),
Florida Statutes, to be held in trust by the Clerk and used exclusively lor equipment and
maintenance of equipmcnt, personnel training, and technical assistance in modernizing the
public records system of thc oflice. Effective July I, 2004, an additional amount is collected
pursuant to Section 28.24 (12) (e), Florida Statutes, and used exclusively for funding court-
related technology needs.
The Clerk also maintains the following non-major fund:
Juvenile Assessment Fund - This fund was establishcd to account lor revenues and
expenditures applicable to juvenile assessmcnts center.
0912-1116348 11
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (coutinued)
With the implementation of Revision 7 to Article V on July I, 2004, the Clerk's activities are
classified as court-rclated and non-court-related. The Clerk's gcneral fund activity, which is
classified as non-court-related, is funded through scrvice charges for recording instruments and
documents into the official records, interest income and through transfers in from the Board.
Court-related activities were funded by the fecs charged by the Clerk as authorized by Florida
Statutes, for maintaining the County and Circuit Court records, and collecting the fines and fees
assessed by the courts through June 30, 2009. Since July I, 2009, the Clerk is funded through an
appropriation from the State of Florida. These court fees and appropriations are to be uscd
exclusively for funding court-related operations of the Clerk. The excess of rcvenues collected
ovcr cxpcnditures is returned to the Florida Clerks of Court Operations Corporation.
Thc modified accrual basis of accounting is used by govcrnmental funds. Under the modified
accrual basis of accounting, revenues are recognizcd when susceptible to accrual (i.e., when they
bccome measurable and available to finance current liabilities of the fiscal ycar). For this
purpose, the Clerk considers revcnucs to be available if they are collected within 60 days after
year-end. Expenditures are recorded whcn the related fund liability is incurred, except for certain
compensated absences, which are recognized as expenditures to the extent they have matured.
Charges for services, intcrest income, and other revenues are recognized as they are earncd and
become measurable and available to pay liabilities of the current period.
Florida Statutes provide that the amount by which rcvenues and transfers exceed annual
cxpcnditurcs for the gcneral fund be remitted to the Board immediately following the fiscal year
for which the funding was provided or following the fiscal year during whieh other rcvenues
were recognized. Thc amount of this distribution is recorded as a liability and as other financing
use in the accompanying special purposc financial statements.
Section 28.37, Florida Statutes, provides that all court relatcd revenues are considcred State
revenue effective July I, 2009 and remitted monthly to the Department of Revenue. Prior to this
law change, tbc Clerk remitted to the Department of Rcvcnue the cumulative cxcess of all fees,
service charges, court costs, and fincs retained by the Clerk ovcr the amount needcd to meet the
approved budget amounts established by Section 28.36, i'/orida Statutes for the period from
October I, 2008 through June 30, 2009.
0912-1116.,4&
12
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Capital outlays expendcd in govcrnmental funds are capitalized in the basic financial statements
of Collier County, Florida rather than in thc governmental funds of the Clerk.
Additionally, the Clerk reports the following fund type:
Fiduciary Funds - Agency Funds - These funds arc used to account for assets held by the
Clerk in a trustee capacity or as an agent for individuals, private organizations, other
governments, and other funds. The agency funds are custodial in nature (assets equal
liabilities), and do not involve measurement of results of operations or have a mcasurement
focus. Agency funds are accounted for using the modified accrual basis of accounting.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less. Thc Clerk does not currently hold investments.
Compensated Absences
Full-time cmployees of the Clerk are allowcd to accumulate an unlimited number of hours of
unused sick lcavc and up to 240 hours of unused vacation leavc. Upon termination, employees
reccive 100% of allowable accumulatcd vacation hours and a percentagc of unused sick lcave,
depending on years of service. Vacation leave and sick Icavc are included in operating costs
when the paymcnts are made to employecs. The Clerk does not, nor is he legally required to,
accumulatc financial resources for these un-matured obligations. Accordingly, the liability for
compcnsated absences is not rcported in the general flmd, but rather is reported in the basic
financial statcments of Collier County, Florida.
Use of Estimates
The preparation of thcsc special purposc financial statements requires managemcnt of the Clerk
to make a number of estimates and assumptions rclating to the reportcd amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the special purposc
financial statements and the rcported amounts of rcvenues and expenditures during that period.
Actual results could di Her from those estimates.
0911-1116.14R
13
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Comparative Data
The special purpose financial statements include certain prior year summarizcd comparative
information in total but not at thc level of detail required for a presentation in conformity with
generally accepted accounting principles. Accordingly, such information should be read in
conjunction with the Clerk's special purpose financial statements for the year ended
September 30, 2008, from which the summarized information was derived.
2. Budgetary Process
Florida Statutes govcrn the preparation, adoption, and administration of the Clerk's annual
budget. The Clerk prepares and approves the budget for thc Clerk's non-court functions,
including public records modernization fund and the budget related to his recording function
based on anticipated fces. The budgct of the Clerk for thc general fund transfer and juvenile
assessment funds, is submitted to and approved by the Board.
Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on
or before August 15 and submittcd to the Florida Clcrks of Court Operations Corporation
(the Corporation). if the Clerk estimates that projected revenues are insufficicnt to meet
anticipated expenditures, the Clerk must report thc revenuc deficit to the Corporation. Once the
Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts
specified by law to resolve the deficit. If a revenue deficit is still projected, a rcquest can be
submitted to releasc funds from the Department of Revcnue Clerks of the Court Trust Fund.
Effective July I, 2009, all revcnucs in the court fund are now Statc rcvenues and remitted
monthly to the State. The court functions are funded through a State appropriation based on the
budget submittal to thc Florida Clerks of Court Operations Corporation.
The budget is prepared on a basis consistent with accounting principles generally accepted in the
United States. The annual budget serves as the legal authorization for expenditures. Any
subsequent amendments to the Clcrk' s transfer budget funded by the Board must be approvcd by
the Board, amendments to thc Clcrk's fce budget arc at the discretion of the Clerk, and any
amendments of the court budget must be approved by the Corporation for thc court services
fund. Expenditures may not legally cxceed appropriations at the fund levcl. Appropriations lapse
at year end. Budgetary control is maintaincd at the departmcntal major object cxpenditure lcvel.
Budgetary changes within major object expendi turc categories are made at the discrction of
the Clcrk.
O')j2-11 I (J.\4!l
14
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
2. Budgetary Process (continued)
The original budget is the first complctc appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers, allocations, supplcmental appropriations, and other
legally authorized changes applicable to the fiscal year, whcnever legally authorized.
3. Cash and Cash Equivalents
At September 30, 2009, the carrying value of the Clerk's cash and cash equivalents was
as follows:
Carrying Credit
Type Maturity Value Ratin!!;
Cash on hand N/A $ 6,500 N/A
Demand deposits N/A 27,508,309 N/A
Total cash and cash equivalents $ 27,514,809
The Clerk maintains a cash pool for thc dcposits of all governmental and agency funds. Each
fund type's portion of these balanccs is prcsented as cash and cash equivalents in thc
accompanying special purposc Ilnancial statements. Interest income is allocated to each fund
based on its proportionate balance in thc pool.
Cash and cash equivalents as of Septcmber 30, 2009, are reported as $8,708,369 and
$18,806,440 in the governmcntal funds and fiduciary funds, respectively.
Custodial Credit Risk
At September 30, 2009, the Clerk's deposits wcre entirely covcrcd by federal depository
insurance or by collateral pledged with the State Treasurcr pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in thc event of default by a participating financial institution
(a qualified public depository), all participating institutions arc obligated to reimburse thc
governmental entity for the loss.
()(JI2-1116j48
15
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Credit Risk
The Clerk's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the
deposit of funds received and the invcstmcnt of surplus funds. Sections 219.075 and 218.415,
Florida Statutes, authorize the Clerk to invest in Florida PRIME (formcrly the Local
Governmcnt Surplus Funds Trust Fund) or any intergovcrnmcntal investment pool authorized
pursuant to the Florida Inter-local Cooperation Act; Securitics and Exchangc Commission
rcgistered money market funds with the highest credit quality rating from a nationally recognizcd
rating agency; direct obligations of the Unitcd States Treasury, fedcral agencies and
instrumentalities, or interest-bearing time deposits or savings accounts in banks organizcd under
the laws of the United States and doing business and situated in the State of Florida, savings and
loan associations which are under state supervision, or in fedcral savings and loan associations
located in the State of Florida and organized under federal law and fedcral supervision, provided
that any such deposits are securcd by collateral as may bc prescribed by law. Additionally,
Florida Statutes allow local governments to place public funds with institutions that participate
in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered
by the State Treasurer, who may make additional assessments to ensurc that no public funds will
be lost.
Interest Rate Risk
The Clerk has no specific investment policy regarding interest ratc risk.
4. Interest Income and Investment of County Funds
Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those
required to mcet cxpenses. Through June 30, 2009, interest revenue from funds investcd is
recorded as income of the onice of the Clerk and any excess interest earnings are returned to the
Board at year-end as described in Note I. Effective .July 1, 2009 Florida Statutes, Section 28.33
was amended and intercst income became revenue to the Board of County Commissioners.
Interest incomc of $ I J, 754,132 reported in thc gcneral fund for thc year ended Septcmbcr 30,
2009 consists of $1 1,663,132 relatcd to interest earned on funds invested pursuant to Florida
Statute 28.33, and $91,000 of interest earned on Clerk funds.
0912-1!16J4ii
16
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
5. Receivables
Pursuant to Florida Statutes, Section 28.246, thc Clcrk shall establish and maintain a system of
accounts receivable for court-related fees, charges, and costs. Since July I, 2004 the accumulated
receivables through Septembcr 30, 2008 totaled $24,273,283. For the current period October I,
2008 through September 30, 2009, accumulated additional receivables totaled $5,971,894 for a
total cumulative receivable balance of $30,245,177. These funds rcpresent a combination of
monies due to the Clerk and the State with thc majority due to thc State. This receivable is
considered uncollectible and is not recorded in the accompanying special purpose financial
statements. This outstanding balance will be monitored and all efforts will be madc to collect
these and any future balances outstanding due the Clerk.
6. Capital Assets
Capital assets used by the governmental fund typc opcrations are capitalized in the basic
financial statements of Collier County, Florida rather than in the governmental funds of the
Clerk. Upon acquisition, such assets are recordcd as expenditures in thc govemmental funds of
the Clerk and capitalized at cost in the basic financial statcments of the Collier County, Florida.
Capital assets are valued at historical cost, or estimated historical cost if actual historical cost is
not available. Donated capital assets are valucd at their estimated fair value on the date reccived.
The Clerk maintains custodial responsibility for the capital assets uscd by the ot1ice. No
dcpreciation has been provided on capital assets in the accompanying special purpose financial
statemcnts. However, depreciation cxpcnsc on these assets is recorded in the basic linancial
statements of Collier County, Florida.
7. Long-Term Liabilities
The following is a summary of changes in general long-term liabilities which are reflected in thc
basic financial statements of Collier County, Florida:
September 30,
2008 Additions
September 30,
Deletions 2009
Accrued compcnsated absences
$ 1,811,525 $ 901,608 $ 1,034,810 $ 1,678,323
Of thesc obligations, approximately $958,826 is expected to bc paid during the fiscal year ending
September 30, 2010. These long-term liabilities are not rcported in the special purpose financial
statcments of the Clerk sincc they have not matured.
O'Jj2-1 1 16:-48
17
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
8. Employee Retirement Plan
Substantially all full-time employees of the Clerk are eligible to participate in the State of Florida
Retirement System (System), a cost-sharing multiple-employer defined bencfit plan administered
by the State of Florida, Division of Rctiremcnt. The System is a defined benefit plan for all state
and participating county, district board, community college, and university employees
(Pension Plan). The System also offers eligiblc employees participation in an alternative dcfined
contribution plan (Investment Plan). The Clerk participates in the Electcd State Officers' Class.
The plan is administcred by the State of Florida. Contribution rates are establishcd statewide for
all participating governmcntal units. Accordingly, the actuarial information and related
disclosurcs attributable to the Clerk's employees are not dctcrminable.
Employccs participating in the Pension Plan, who retire at or after age 62 with 6 years of credited
service or with 30 years of service regardless of age, are entitled to a retirement bencfit payable
monthly for life, equal to 1.6% for rcgular employees, 2% for senior management and 3% for
county elccted otlicials of their average final compcnsation for each year of credited servicc.
Average final compensation is the employee's average of the five highest fiscal years of salary
earned during credited service. Vcsted cmployees may retire before age 62 and reccive benefits
that are reduced 5% for each year prior to normal retirement age or date. Employees participating
in the Pension Plan are vested after one year of scrvicc with no age requirements. The Systcm
also provides death and disability benefits. Benefits arc established by Chapter 121, Florida
Statutes.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for paymcnt of retirement benefits for a spccified and limited period for members of the
System, effective July I, 1998. Undcr this progranl, the employee may retirc and have their
benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while
continuing to work for a system employer. The participation in the program docs not change
conditions of employment. When the DROP period ends, a maximum of 60 months, cmployment
must bc terminated. At the time of termination of employment, thc cmployee will rcceive
payment of the accumulated DROP benefits, and begin receiving their monthly retircmcnt
benefit (in the same amount determincd at retirement. plus annual cost-of-living increases).
Thc System publishes an annual report that provides ten-ycar historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to Division of Retiremcnt, Department of Management Services,
1317 Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling
(850) 488-5706, or accessing their Internet site at www.frs.state.tl.us.
0911-1116.HR
18
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
8. Employee Retirement Plan (continued)
The Clerk is required to contribute an actuarially determined ratc. Thc current rate is 16.53% for
county elccted ot1icials, 9.85% for regular employees, 13.12% for senior management. and
10.91 % for DROP employecs. Thc contribution requirements of the Clerk are established and
may be amended by the State of Florida. The Clerk's contributions to the plan for the years
September 30, 2009, 2008, and 2007 were $1,127,280, $1,213,623, and $ ],]34.120, respcctively,
cqual to the required contributions for each year.
9. Related-Party Transactions
The Board provided funding for the Clerk in the amount of $297,600. The Supervisor of
Elections provided funding in the amount of a $37,000 transfer. At September 30, 2009, the
Clcrk had a payable due to the Board 01'$2,432,588 comprised as follows:
Distribution of excess fees
Agency funds duc
Total duc to Board of County Commissioners
$ 2,093,404
339,184
$ 2,432,588
At Scptember 30, 2009 the Board had a payablc duc to the Clerk of $68,234 comprised
as follows:
Amounts due from various scrviccs
Amounts due from BOCC Juvcnilc Asscssmcnt Center Fund to Clerk
Juvenile Assessment Center Fund
Total due from Board of County Commissioners
$
34,103
$
34,131
68,234
Additionally, a transfer 01'$73,700 was made to the Juvenile Assessment fund by the Board.
to. Risk Management
Collier County, Florida (the County) is exposcd to various risks of loss, including, but not
limited to general liability, health and litC, property and casualty, auto and physical damage, and
workers' compensation. The County is substantially self:insurcd and accounts for and finances
its risk of uninsured losses through an intemal scrvice fund. All liabilities associated with these
scll:insured risks are reported in the basic financial statements of the County. During the year
ended September 30, 2009, the Clerk was chargcd $2,223,8 I 0 by the County for patiicipation in
tbe risk management program.
0912-1116348
19
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
to. Risk Management (continued)
The County retains thc first $500,000 per claim for workers' compcnsation, and has purchased
outside excess coverage for up to $25 million for employmcnt liability claims and statutory
limits for each injury and illness. Thc County also provides coverage for $200,000 per claim for
gcncralliability and auto liability coverage and has purchased outside excess coverage for up to
$2 million pcr claim. Negligence claims in cxccss of the statutory limits set in Section 768.28,
Florida Statutes, which provide for limited sovereign immunity of $100,000/$200,000 per
occurrence can only bc recovered through an act of the State Lcgislaturc. Property claims are
subject to a 5% wind deductible and a $50,000 deductiblc for all othcr pcrils. The County rctains
the lirst $100,000 per claim/$200,000 per occurrence for public official errors and omissions and
crime coverage and has purchascd outsidc excess coverage for up to $5 million per claim. There
have been no significant reductions in insurance coveragc in thc last ycar. Scttled claims have
not exceeded the insurance provided by third party carriers in any of thc last three years.
The County is self-insured for health claims covering all of its employccs and their eligible
dependents. The County retains the first $175,000 per covered member and has purchased
outside excess coverage for up to $2 million for each claimant. An actuarial valuation is
performcd each year to estimate the amounts needcd to pay prior and futurc claims and to
establish reserves.
II. Other Postemployment Healthcare Benefits (OPEB) Plan
During the year ended September 30, 2008, the County adopted GASB Statement 45, Accounting
and Financial Reporting hy EmployersfiJr Postemployment Benefits other than Pensions.
Plan Description. The Clerk of the Circuit Court participatcs in a group hcalth care plan that
covers eligible retirees, and their dependents, of the Board of County Commissioners and all
Constitutional Officers with the exception of the Sheriff. The Board administers the plan and
establishes the bencfits. The hcalthcare plan does not issue a stand-alone financial report,
howcver additional actuarial information regarding thc plan as a wbolc is disclosed in the notes
to the financial statements of Collier County.
As required by Section 112.081, Florida Statutes, retirees, and their eligiblc dcpendents arc
provided the same hcalth care coverage as is offered to active employees at the same premium
cost (bornc by thc rctiree) applicable to active employees. Under Florida Statutes, retirees are
eligible to participate in the active mcdical plan by paying the active rate if thcy havc attained
()')[2-1116!i48
20
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
11. Other Postemployment Healthcare Benefits (OPEB) Plan (continued)
age 62 and have 6 years of service or have at least 30 years of scrvice. Employees eligible for a
reduced benefit undcr thc Florida Retirement System prior to age 62 arc also eligiblc to
participate in thc medical plan. The Clerk providcs no subsidy to the retirce, or their dependents,
for group hcalth care.
Funding Policy. The contribution rcquirements of the plan members and the employers are
established and may be amcnded by the County. The plans are financed by the participating
agencies on a pay as you go basis through the County's self insurance internal service fund. The
Clerk contributcs an additional amount to the County per each activc cmployee to accumulate
resources to fund retiree hcalthcare. The Clerk contributed $10,396 to the group health plan for
OPEB costs during thc fiscal year ended September 30, 2009. The Clerk's share of the County's
net OPEB obligation at September 30, 2009 was $41,971, which is recorded in the basic
financial statements of the County.
Thc annual other postemployment bcnefit cost is calculated based on the Annual Required
Contribution (ARC) of the employer, an amount actuarially determined in accordance with
GASB Statemcnt 45. The ARC represents a level of funding that, if paid by on an ongoing basis,
is projected to cover normal cost cach year and amortize any unfunded actuarial/iabilities over a
period not to exceed 30 ycars. An actuarial valuation on the plan as a whole was performed in
October 2008. The notes to the financial statements of thc County disclose additional
information regarding the other post employment bcncfit plan as a whole.
12. Claims and Contingencies
Litigation
The Clerk of the Circuit Court is routinely involved as defendant, plaintiff and as a "party in
interest" in carrying out its statutorily and constitutionally assigned tasks. During the year ended
September 30, 2009, the Clerk was involved in approximately 12,125 collection cases. These are
court actions designed to collect fees and costs imposed by the courts in criminal cases. The
Clerk was involved in approximatcly 603 bond forfeiturc actions. Those cascs involvc collccting
forfeitures of criminal appcarance bonds. There is currently one case pending before the Sccond
District Court of Appeal. There are approximatcly 35 actions for foreclosure of property in
which the Clerk has been a named defendant.
D'H ~-1116_'48
21
Collier County, Florida
Clerk of the Circuit Court
Notes to Special Purpose Financial Statements (continued)
12. Claims and Contingencies (continued)
Collier County Litigation
The Clerk has been involved in certain litigation with Collier County.
In Case 07-1 056-CA, the appellate court in a final decision ruled, contrary to the position of the
County, that interest earncd on the investment of taxpayer funds is income to the Clerk not
income to the County prior to the amendment of Florida Statutes Section 28.33. Thc Clerk
remains a fec officer. The parties reached a negotiated settlement. As a result of the settlement all
claims of all parties were dropped.
In Case #2D07-4549; L.T. #04-94l-CA, the Sccond District Court of Appeals (DCA) of the
State of Florida issued its opinion on Scptember 23, 2009, reaffirming that the Clerk of Courts is
accountant, auditor and custodian of all county funds and is entitled to audit the County for
purposes of determining legality of payment. The DCA has since denied two additional motions
filed by the County in responsc to thc DCA opinion; one to rehear the case and the other to
certify the case to thc Florida Supreme Court. Both motions werc denicd by thc DCA. Thc DCA
reaf1irmed its rulings to uphold the Clcrk's right to audit. The Board of County Commissioners
has indicated that it will continue pursuing this issue, seeking discretionary review by the Florida
Supreme Court.
Issucs continue in this case relating to the Clerk's belief that there are funds that belong to the
taxpayer which have not bcen given to the Clerk as custodian of County funds; issues remain in
this case as it relates to the County and County employees and there arc monetary ramifications
to this pending litigation. There is no monctary judgment entcrcd at this time and no claim for
monctary damages against the Clerk in this casc. The Clerk may seek costs of litigation from
the Board.
13. Subsequent Event
On November 24, 2009, the County filed a notice to invoke discretionary jurisdiction of the
Florida Supremc Court and a motion for stay of issuance of mandatc in Case #2D07-4549:
L.T. #04-941-CA.
()1) I ~-1116148
22
Combining Information
O'JI2-1116.HR
Collier County, Florida
Clerk of the Circuit Court
Combining Balance Sheet - Agency Funds
September 30, 2009
Jury and
Clerk's Court Ordinary
Agency Registry Witness Total
Assets
Cash and cash equivalcnts $ 5,734,467 $ 13,064,008 $ 7,965 $ 18,806,440
Total assets $ 5,734,467 $ 13,064,008 $ 7,965 $ 18,806,440
Liabilities
Due to the Collier County,
Florida Board of County
Commissioners $ 339,184 $ - $ - $ 339,184
Due to other governmcnts 1,200,513 7,965 1,208,4 78
Deposits 4,194,770 13,064,008 17,258,778
Total liabilities $ 5,734,467 $ 13,064,008 $ 7,965 $ 18,806,440
O'>l2-1116.14R
23
Collier County, Florida
Clerk of the Circuit Court
Statement of Changes in Assets and Liabilities - Agency Funds
Year Ended September 30, 2009
Balance Balance
October I, September 30,
2008 Additions Deletions 2009
Assets
Cash and cash equivalents $ 17,848,166 $106,219,801 $105,261,527 $ 18,806,440
Total assets $ 17,848,166 $106,219,801 $ 105,261 ,527 $ 18.806.440
Liabilities
Due to the Collier County,
Florida Board of County
Commissioners $ 86,359 $ 403,955 $ 151.130 $ 339,184
Duc to othcr governments 1,349,382 8,226,526 8,367,430 1,208,478
Deposi ts 16,412,425 97,589,320 96,742,967 17,258,778
Total liabilities $ 17,848.166 $ 106,219,801 $105,261,527 $ 18.806.440
()l)12-1116348
24
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Report ofIndependent Certified Public Accountants on Internal Control
Over Financial Reporting and on Compliance and Other Matters Based on
an Audit of Special Purpose Financial Statements Performed in Accordance
With Government Auditing Standards
The Honorable Dwight E. Brock, Clerk of the Circuit Court
Collier County, Florida
We have audited the special purpose financial statements of each major fund and the aggregate
rcmaining fund information of the Collier County, Florida Clerk ofthc Circuit Court (the Clerk)
as of and for the year ended September 30, 2009, and have issued our report thereon dated
December 17, 2009, which describes that such special-purpose financial statements have been
prepared for the purpose of complying with Scction 2 I 8.39, Florida Statutes, and Chapter
10.577(3), Rules of the Auditor Generalfilr Local Governmental Entity Audits. We conducted
our audit in accordance with auditing standards gcnerally accepted in the United States and the
standards applicable to financial audits contained in Government Auditing S'tandard,', issued by
thc Comptroller Gencral of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Clerk's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on thc spccial purpose financial statemcnts, but not for the purpose of expressing an
opinion on the effectiveness of the Clerk's intcrnal control over financial reporting. Accordingly,
we do not express an opinion on the effectivencss of the Clerk's internal control over financial
rcporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in thc normal coursc of performing their assigned functions, to
prevent, or detect and correct misstatemcnts on a timely basis. A material weakncss is a
deficiency, or combination of deficiencies, in internal control, such tbat there is a reasonable
possibility that a material misstatemcnt of the entity's financial statements will not bc prevcnted,
or detected and corrccted on a timely basis.
Our considcration of internal control ovcr financial reporting was for thc limited purpose
described in the first paragraph of this section and was not designcd to identify all deficiencies in
intcrnal control that might bc deficicncies, significant deficiencies or material wcaknesses. We
did not idcntify any deficiencies in intemal control over financial rcporting that we consider to
be material weaknesses, as defined above.
Ol)l ~-1116]48
25
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11111111111111111111111111""" Ell ERNST & YOUNG
Compliance and Other Matters
As part of obtaining reasonable assurance about whcther the Clerk's special purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material et1ect on thc detcrmination of spccial purpose financial
statement amounts. However, providing an opinion on compliancc with those provisions was not
an objective of our audit and, accordingly, we do not exprcss such an opinion. The results of our
tests disclosed no instances of noncompliance or otber mattcrs that arc rcquired to be reported
under Government Auditing Standards.
This report is intended solely for the information and use of the Clerk, management, others
within the entity, the Board of County Commissioners of Collier County, Florida, and thc
Auditor General of thc State of Florida, and is not intended to be and should not be used by
anyone othcr than these specified parties.
~ T MLLP
December 17,2009
()l)\2-1116_HR
26
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Management Letter
The Honorable Dwight E. Brock, Clerk of the Circuit Court
Collier County, Florida
We havc audited the special-purpose financial statemcnts of each major fund and the aggregate
remaining fund information of the Collicr County, Florida Clcrk ofthc Circuit Court (the Clerk) as
of and for the ycar ended September 30, 2009, and have issued our report thereon dated
December 17, 2009.
We conducted our audit in accordance with auditing standards gcnerally accepted in the
United States and the standards applicablc to tinancial audits containcd in Government Auditing
Standards, issued by the Comptrollcr Gcncral of thc Unitcd Statcs. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits performed in the State of Florida and
require that certain itcms be addressed in this letter.
We have also issued our report dated December 17, 2009, on internal control ovcr financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements pcrformed in accordance with Government Auditing Standards. Disclosurcs in that
report should be considered in conjunction with this management letter.
We havc the following suggestions for improvement in accounting procedures and controls.
Current Year Findings and Recommendations
There were no findings or rccommendations madc in the currcnt year annual audit.
Prior Year Findings and Recommendations
There were no findings or recommendations made in the prior year annual audit.
Other Required Communications
No mattcrs of noncompliancc with Section 2 18.4 15, Florida Statutes, regarding the investmcnt
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rulcs, regulations or contractual
provisions or abuse, no improper or illegal expcnditures, and no control deficiencics other than
the internal control recommendations includcd abovc.
(l911-ttI6l48
27
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The Clerk was establishcd by the Constitution of the State of Florida, Article Vlll, Section I (d).
Section 10.554(1 )(i)8., Rules o/'the Auditor General, requires a statement as to whether or not the
Clerk complied with Section 28.35, Florida Statutes, regarding thc budget and performance
standards certified by the Florida Clerk of Courts Operations Corporation. The rcsults of our
audit did not identify any instanccs of noncompliance that are required to be reported.
This management Ictter is intended solely for the information of the Clerk, management, the
Board of County Commissioners of Collier County, Florida. and the Auditor General of the State
of Florida, and is not intended to bc and should not be used by anyone other than these specified
parties.
~T nLLP
December 17,2009
()l)12-1116~48
28
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Ernst & YounQ LLP
40 i L:Jsl Jackson Stre~t
~'liile 1200
lampa, f lorioa 33602-S?3'::
Tel: 81:3 ?2S 4800
ra~:8.1j2251l711
www.t'ycon
Addendum to Management Letter
Th~ Honorable Dwight E. Brock, Clerk of the Circuit Court
Collier County, Florida
In reference to our management letter dated December 17, 2009 on pages 27 to 28 of our
rep0l1, the fourth paragraph of the "Other Re4uired Communications" section should be
updated as follows:
Section I 0.554( I )(i)8" Rules of'lhe Audilo/' General, re4uires a statement as to whether
or not the Clerk complied with Sections 28.35 and 28.36, 1'1orida S/alllles, regarding the
budget and performance standards cenified by the Florida Clerk of Courts Operations
Corporation, The results of our audit did not identify any instances of noncompliance that
arc re4uircd to be reponed,
Isl Ernst & Young, LLP
March 17,2010
;,1-
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SPI:CIAI.-PIIRPOSE FINANCIAl. STATI.MENTS
Collier County, Florida
Property Appraiser
Year Ended September 30, 2009
With Report of Independent Certificd Public Accountants
Ernst & Young LLP
Ell ERNST & YOUNG
Collier County, Florida
Property Appraiser
Special-Purpose Financial Statements
Year Endcd September 30,2009
Contents
Report of Independent Certificd Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Shcet - Gcneral Fund..............................................................................3
Special-Purpose Statement of Rcvenues, Expenditures, and Changes in Fund Balance -
General Fund................................................................................................................................. 4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- (Budgetary Basis)- Gencral Fund..............................................................5
Notes to Special-Purpose Financial Statements...............................................................................6
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose
Financial Statements Performed in Accordance with Government Auditing Standard\' ............] 5
Management Letter ........................................................................................................................] 7
O(Jl2-I\HJ57
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Report of Independent Certified Public Accountants
Honorable Abe Skinner, Propcrty Appraiscr
Collier County, Florida
We have audited the accompanying special-purpose financial statements of the general fund of
the Collier County, Florida Propcrty Appraiser (the Property Appraiser), as of and for the ycar
ended September 30, 2009, as listed in the table of contents. These special-purpose financial
statements are the responsibility of thc Property Appraiscr's management. Our responsibility is
to cxpress an opinion on these special-purpose financial statemcnts based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
Unitcd States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are free of material misstatcment. Wc wcre not cngaged to perform an audit
of the Property Appraiscr's internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in thc circumstanccs, but not for the purpose of expressing an
opinion on the effectiveness of the Property Appraiser's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the special-purpose financial statements,
assessing the accounting principles used and significant estimates made by management, as wcll
as evaluating thc overall special-purpose financial statement presentation. Wc believe that our
audit provides a reasonable basis for our opinion.
As discussed in Note I, the accompanying special-purpose financial statements rcferred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes,
Chapter 10.557(3), Rules of the Auditor GeneralfiJr Local Governmental Entity Audits. These
special-purposc financial statcments arc not intcnded to be a complcte presentation of the
Property Appraiser's financial position and its changcs in financial position, where applicable,
thereof, for the year then ended in conformity with accounting principlcs generally accepted in
the United States. Additionally, the special-purpose statements prcsent only the Property
Appraiser and do not purport to, and do not, present fairly the financial position of Collier
County, Florida, as of September 30, 2009, and the changes in its financial position, wherc
applicable, for the year then ended, in conformity with accounting principlcs gcncrally acccpted
in the United States.
0912_11 \4357
In our opinion, the special-purpose ljnancial statcments referred to above present fairly, in all
material respects, the financial position of the general fund of the Property Appraiser as of
September 30, 2009, and the changcs in Ijnancial position thereof and the budgetary comparison
for the general fund for the year then ended in conformity with accounting principles generally
accepted in the United States.
In accordance with Government Auditing Standards. we have also issucd our report dated
December 12, 2009 on our consideration of the Property Appraiser's internal control over
fjnancial reporting and on our tests of its compliance with certain provisions oflaws, regulations,
contracts, and grant agreements and othcr matters. The purpose of that report is to describe the
scope of our testing of internal control ovcr financial reporting and compliance and the results of
that testing, and not to providc an opinion on the internal control ovcr financial reporting or on
compliancc. That rcport is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considercd in assessing thc rcsults of our audit.
This report is intended solely for the information and use of the Property Appraiser,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intended to be and should not be uscd by anyone other
than these specified parties.
~-f hLLP
December 12, 2009
Of/12-1114357
2
Collier County, Florida
Property Appraiser
Special-Purpose Balance Sheet - General Fund
September 30, 2009
Assets
Cash and cash equivalents
Total assets
Liabilities and fund balance
Liabilities:
Accrued liabilities
Due to Collier County, Florida Board of County Commissioners
Due to other taxing districts
Totalliabilitics
Fund balance
Total liabilities and fund balance
S~ee accompanying notes.
()l)12-11 14.1S7
$ 1,197,465
$ 1,197,465
$ 93.403
980,203
123,859
I, I 97.465
$ 1,197,465
3
Collier County, Florida
Property Appraiser
Special-Purpose Statement of Revenues, Expenditures,
and Changes in Fund Balance - General Fund
Year Ended September 30, 2009
Revenues:
Commissions and fees
Miscellaneous
Total revenues
Expenditures:
General government:
Personal serviccs
Operating
Capital outlay
Distribution of excess fees to othcr taxing districts
Total expenditures
Exccss of revenues over expenditures
Other financing uses:
Distribution of excess fees to Collier County, Florida
Board of County Commissioners
Total other financing uses
Excess of revenucs over cxpcnditurcs and othcr tinancing uses
Fund balance, beginning of year
Fund balance, end of year
See accompanying notes.
0912-1114357
$ 6,682,755
773,965
7,456,720
4,858,456
1,368,297
125,905
123,859
6,476,517
980203
980,203
980,203
$
4
Collier County, Florida
Property Appraiser
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund
Balance ~ Budget and Actual- (Budgetary Basis) - General Fund
Year Endcd September 30, 2009
Variance With
Final Budget
Budget Positive
Original Final Actual (Negative)
$ 6,682,755 $ 6,682,755 $6,682.755 $
773,965 773,965
6,682,755 6,682,755 7,456,720 773,965
Revenues:
Commissions and fees
Miscellaneous
Tolal revenues
Expenditurcs:
General govemment:
Personal services
Operating
Capital outlay
Total expenditures
Excess of revenues over expenditures
5,190,526 5,190,526 4,858,456 332,070
1,442,229 1,442,229 1,368,297 73,932
50,000 50,000 125,905 (75,905)
6,682,755 6,682,755 6,352,658 330,097
1, 104,062 1,104,062
Othcr financing uses:
Distribution of excess fees to Collier
County, Florida Board of County
Comm issioners
Distribution of excess fees to other
taxing districts
Total other financing lIses
Excess ofrcvenucs over expenditures
and other financing lIses
980,203
980.203
123,859
1,104,062
123,859
I, I 04,062
$
- $
- $
Fund balance, beginning of year
FlInd balance, end of year
$
$
See accompanying notes.
0912-\114357
5
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements
September 30, 2009
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Property Appraiser (the Property Appraiser) is an elected
constitutional ot1icer as provided for by the Constitution of the State of Florida. Pursuant to
Chapter 129, Florida Statutes, the Property Appraiser's budget is submitted to the Florida
Department of Revenue for approval, and a copy is forwarded to the Collier County, Florida
Board of County Commissioncrs (Board).
The special-purpose financial statements presented include the general fund of the Property
Appraiser's office. The accompanying special-purpose financial statcments were prepared for the
purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the
Auditor Generalfi!r Local Governmental Entity Audits.
Section 10.556(4), Rules of the Auditor Generalfi}r Local Governmental Entity Audits, requires
the Collier County, Florida Property Appraiser financial statements to only prescnt fund financial
statements. Accordingly, due to the omission of government-wide financial statements and
related disclosures, including a management's discussion and analysis, these special-purpose
financial statements do not constitutc a complete presentation of the financial position of the
Collier County, Florida Property Appraiscr as of Scptember 30, 2009, and thc changes in its
financial position for the year then ended, in conformity with Governmental Accounting
Standards Board (GASB) Statement No. 34, Basic Financial Statements - and Management '.\'
Discussion and Analysis fiJr State and Local Governments, but otherwise constitute financial
statcments prcpared in conformity with U.S. generally accepted accounting principles.
The financial activitics of thc Property Appraiscr, as a constitutional officer, are included in the
Collicr County, Florida Comprehensive Annual Financial Rcport.
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purpose fund financial statements report detailed inlormation about thc Property
Appraiser. The focus of governmental fund financial statements is on major funds rather than
reporting funds by type. Each major fund is reported in a separate column.
0912-1114."157
6
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Governmental Funds
Governmental funds are accounted for using the flow of current financial resourccs measurement
focus. Only current assets and currcnt liabilities, generally, are included on thc special-purpose
balance sheet. Operating statements of these funds prcsent increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and othcr financing uses) in nct current
asscts. Thc Property Appraiser's only governmental fund is the general fund. The general fund is
used to account for the general operations of the Property Appraiscr.
The modified accrual basis of accounting is uscd by govcrnmental funds. Under thc modified
accrual basis of accounting, revcnucs arc recognized when susceptible to accrual (i.e., when they
become measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Property Appraiser considers revenues to bc available if they are collectcd within
60 days after year end. Expenditures are recorded when the relatcd fund liability is incurrcd,
except for compensated absenccs, which are recognized as expenditures to the extent they have
matured.
Substantially all of the Property Appraiser's revenuc is received from taxing authorities. These
moncys are virtually unrestricted and are revocable only for failure to comply with prescribed
compliance requirements. Thcse rcsources are reflected as revenue at thc time of receipt; earlier
ifthc "susceptible to accrual" criteria are mct.
Miscellaneous revenue is recognized as it is earned and becomes measurable and available to pay
liabilities of the current period.
Florida Statutes provide that thc amount by which revenues excecd annual expenditurcs bc
remitted to each governmental agcncy or the Board immediately following the fiscal year for
which thc funding was provided or following the fiscal ycar during which other rcvenue was
recognized.
Florida Statutes furthcr provide that the excess of revcnucs over expenditures held by the
Property Appraiser be distributed to each governmental agency in the samc proportion as the fces
paid by each governmental agency bear to total fee revenues. Thc amount of this distribution is
recorded as a liability and as an expenditure or other financing use in the accompanying
spccial-purpose financial statements.
0911-1114:157
7
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
l. Summary of Significant Accounting Policies (continued)
Capital outlays expended in the general fund operations arc capitalized in the basic financial
statements of Collier County, Florida rathcr than in thc govcrnmcntal funds of the Propcrty
Appraiser.
Refund of "Excess Fees"
Florida Statutes further provide that the excess of revenues ovcr cxpenditures held by the
Property Appraiser be distributed to each governmental agency or the Collicr County Board of
County Commissioners in the same proportion as the lecs paid by each governmental agency
bear to total fee revenues. The amount of this distribution is recordcd as a liability and as eithcr
an cxpenditure or other financing use-transfcr out, respectively, in the accompanying
special-purpose financial statements.
Cash Equivalents
Cash equivalents are defined as highly liquid investments with original maturities of thrcc
months or less.
Compensated Absences
All full-time employees of the Property Appraiser arc allowed to accumulate an unlimited
number of hours of unused sick time and up to 200 hours of unused vacation leave. Upon
termination, employees receive 100"1(, of allowable accumulated vacation hours and a percentage
of unused sick leave, depending on years of service, not to excced 1,040 hours. Vacation time
and sick leave are included in operating costs whcn the payments are made to employees. The
Property Appraiser does not. nor is he legally rcquircd to accumulate financial rcsources f()r
these unmatured obligations. Accordingly, the liability for compensated absences is not rcportcd
in the general fund, but rather is reported in the basic financial statements of Collier County,
Florida.
Use of Estimates
The preparation of the special-purpose financial statcmcnts rcquires management of thc Property
Appraiser to make a number of estimates and assumptions relating to the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilitics at the date of the
financial statements and the reported amounts of revenues and expenditures during the period.
Actual rcsults could di fler from those estimates.
09\2-1\14."\57
8
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
2. Budgetary Process
Florida Statutes govern thc prcparation, adoption, and administration of the Property Appraiser's
annual budget. Thc Property Appraiscr prepares a budget for thc gcncral lund and submits it to
the Florida Department of Revenue for approval. A copy of the approved budget is provided to
thc Board of County Commissioners. Any subsequent amendments to the Property Appraiser's
total budget must bc approved by the Florida Dcpartment of Revenue. The annual budget serves
as the legal authorization for expenditures. Expcnditurcs may not legally exceed appropriations
at the fund level. Appropriations lapse at year end. Budget control is maintained at the
departmental major object expenditure level. Budgetary changes within major objcct expenditure
categorics are made at the discretion of the Property Appraiscr.
The original budget is the first complete appropriated budget. The final budgct is the original
budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other
lcgally authorized changes applicable to the fiscal year, whcnever legally authorized.
The Property Appraiser's budget is prcparcd undcr a budgetary basis of accounting that differs
from gcncrally accepted accounting principles (GAAP). Certain revenues received from non ad
valorem commissions and other sources and expenditures paid for from thcse revenues are not
recognized under the budgetary basis of accounting; however, the revenues and cxpenditures
have been recognized under GAAP. Additionally, there is a diffcrcncc between the budgetary
basis of accounting and GAAP in the treatment of excess fee distributions to entities outside of
the County's reporting entity. On a budgetary basis, distributions of excess fees are reported as
other financing uses. On a GAAP basis, these distributions arc rcportcd as expenditures because
thcrc is a reduction in tinancial resourccs of the County.
Thc actual results of operations in the statcmcnt of revenues, cxpenditures, and changcs in fund
balance - budget to actual -- general fund are presented on a budgctary basis. Adjustments to
convert the results of operations for the year ended September 30, 2009, Irom the budgetary
basis of accounting to the GAAP basis of accounting are as follows:
Miscellaneous
Revenues
Budgetary basis
Revenues and expenditures not budgeted
GAAP basis
$
$
773,965
773,965
Ol)12-11\4J57
9
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2009, the carrying value ofthc Property Appraiser's cash and cash equivalcnts
was as follows:
Type
Cash on hand
Deposi t accounts
Repurchase agreements
Total cash and cash cquivalcnts
Carrying
Value
$ 125
1,164,204
33,136
$ 1,197,465
Custodial Credit Risk
At September 30, 2009, the Property Appraiser's deposits were entirely covered by fedcral
depository insurance or by collatcral plcdged with thc state trcasurer pursuant to Chapter 280,
Florida Statutes. Under this chapter, in the event of detillllt by a participating financial institution
(a qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
Interest Rate Risk
The Property Appraiser has no spccific investment policy regarding interest rate risk.
Credit Risk
The Property Appraiscr's policy is to lollow thc guidance in Section 219.075, Florida Statutes,
regarding the deposit of funds received and the investmcnt of surplus funds. Sections 2 I 9.075
and 2 18.415, Florida S'tatutes, authorize the Propcrty Appraiser to invest in Florida PRIME
(formerly the Local Government Surplus Funds Trust) or any intergovcrnmcntal investment pool
authorized pursuant to thc Florida Interlocal Cooperation Act; Securities and Exchange
Commission registered money markct funds with thc highest credit quality rating from a
nationally recognized rating agency; direct obligations of the United States Treasury; fedcral
agencies and instrumentalities, or interest-bearing time deposits or savings accounts in banks
organized under the laws of the Unitcd States and doing business and situated in the State of
Florida, savings and loan associations which are under state supervision, or in federal savings
and loan associations locatcd in thc State of Florida and organized under federal law and federal
supervision, provided that any such deposits are secured by collateral as may be prescribed by
law.
0912-1114357
]0
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
4. Capital Assets
Capital assets used by the Property Appraiser are reported in the basic financial statemcnts of
Collier County, Florida rather than in thc gcneral fund of the Property Appraiser. Upon
acquisition, such assets are recorded as expenditures in the general fund of the Property
Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida.
Capital assets are valued at historical cost or estimated historical cost if actual historical cost is
not available. Donated capital asscts are valued at their estimated fair value on the date received.
Thc Propcrty Appraiser maintains custodial responsibility for the capital assets used by the
office. No depreciation expcnsc has been provided on capital assets in thesc spccial-purpose
financial statements. However, depreciation expense is recorded in the basic financial statements
of Collier County, Florida.
5. Long-Term Liabilities
The following is a summary of changes in general long-term liabilities which are reported in the
basic financial statements of Collier County, Florida:
October 1,
2008
Net
decrease
September 30,
2009
Accrued compcnsatcd absences
$ 404,791 $ (27,965) $ 376,826
Of thcse liabilities, approximately $25,000 is cxpected to be paid during the fiscal year cnding
September 30,2010. These long-term liabilities are not reported in the special-purpose financial
statements of the Property Appraiscr since they have not maturcd.
6. Employee Retirement Plan
Substantially all lull-time employees of thc Property Appraiser filling regularly established
positions are eligible to participatc in the State of Florida Retirement System (System), a
cost-sharing multiple-employer public retircment system administcred by the State of Florida,
Division of Rctirement. The System is a defined benefit plan for all state, and participating
county, district school board, community college, and univcrsity employees (Pension Plan). Thc
System also offcrs eligible employees participation in an alternativc defined contribution plan
(Investment Plan). Thc Property Appraiser participates in the Elected State Officers' Class. The
plan is administered by the State of Florida. Contribution ratcs are established statcwide for all
participating governmental units. Accordingly, the actuarial information and relatcd disclosures
attributable to the Property Appraisers' employecs arc not dcterminable.
0911-\11,057
11
Collier County, Florida
Property Appraiser
Notes to Special-Purpose financial Statements (continued)
6. Employee Retirement Plan (continued)
Employees participating in thc Pcnsion Plan who retire at or after age 62 with 6 years of credited
service, or with 30 ycars of servicc rcgardless of age, are entitled to a retircment benefit, payable
monthly for life, equal to 1.6% for regular employees, 2% for senior management. and 3% for
County elected officials of their final average compensation for each year of credited scrvice.
Final average compensation is the employce's average of the five highest iiscal years of salary
earned during credited servicc. Vested employecs may retire before agc 62 and receive benefits
that are reduced 5% for each year prior to normal retiremcnt age. Employees participating in the
Investment Plan are vested aftcr one year of service with no agc requirement. The System also
provides death and disability benefits. Bcnefits are established by Chapter 121, Florida Statutes,
and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July I, 1998. Undcr this program, the employee may rctire and have thcir
benefits accumulate in the Florida Retirement System Trust Fund, eaming interest, while
continuing to work for a System cmployer. The participation in the program does not change
conditions of employment. When the DROP pcriod ends, maximum of 60 months, employment
must be terminated. At the time of termination of employment. the employcc will receive
payment of the accumulated DROP beneJits, and begin receiving their monthly retircment
benefit (in the same amount determined at retiremcnt, plus annual cost-of-living increases).
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay bcnefits when due. This report may be
obtained by writing to the Division of Retiremcnt, Department of Management Services,
13 I 7 Winewood Boulcvard, Building 8, Tallahassce, Florida 32399, or by calling
(850) 488-5706, or accessing their Internet site at www.frs.statc.ll.us.
Thc Property Appraiser is required to contribute an actuarially determined rate. The current rate
is 16.53% for county clectcd officials, 9.85% for regular employees, 13.12% for senior
management and 10.91% for DROP cmployees based on covered payroll. The contribution
rcquircments of the Property Appraiser are established and may be amended by thc State of
Florida. The Property Appraiser's contributions to the plan for the ycars cnded September 30,
2009,2008 and 2007 were $377,053, $374,4 14 and $356,873, respectivcly, cqual to the requircd
contributions for each year.
0')12-1114.157
12
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
7. Other Postemployment Healthcare Benefits (OPEB) Plan
The County reports its obligations for OPEB pursuant to GASB Statement No. 45, Accounting
and Financial Reporting by EmployersfiJ/' Pos/employment Benefits Other Than Pensions.
Plan Description. The Property Appraiser participates in a group health care plan that covers
eligible retirees, and thcir dcpendents, of the Board of County Commissioners and all
Constitutional Officcrs with the exception of the Shcriff. The Board administers the plan and
establishes the benefits. The healthcarc plan does not issue a stand-alone financial report,
however, additional actuarial information regarding the plan as a whole is disclosed in thc notes
to thc financial statements of Collier County.
As required by Section I 12.081, Florida Statutes, retirees and their eligiblc dependents are
provided the same health care coverage as is offered to active employees at thc same premium
cost (borne by thc retircc) applicable to activc employees. Under Florida Statues, retirccs are
eligiblc to participate in thc active medical plan by paying the active rate if they have attained
age 62 and have 6 years of service or have at least 30 years of service. Employees eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. The Property Appraiscr providcs no subsidy to the retirce, or
their dependents, for group health care.
Funding Policy. The contribution requirements of the plan members and thc employers are
established and may be amended by the County. The plans are financed by the participating
agcncies on a pay as you go basis through the County's self insurance internal servicc fund. The
Property Appraiser contributes an additional amount to thc County per each active employee to
accumulate resources to fund retiree health care. The Propcrty Appraiser contributed $5,758 to
the group health plan during the fiscal year ended September 30, 2009. The Property Appraiser's
share of the County's net OPEB obligation at September 30, 2009, was $ I 1,468, which is
recorded in the basic financial statements of the County.
The annual other postemployment bcnetit cost is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with
GASB Statement 45. The ARC represents a level of funding that. if paid by on an ongoing basis,
is projected to cover normal cost each ycar and amortize any unfunded actuarial liabilities over a
period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in
November 2009. The notes to the financial statements of thc County disclose additional
information rcgarding the othcr post employment benefit plan as a whole.
()\)11-IIH357
13
Collier County, Florida
Property Appraiser
Notes to Special-Purpose Financial Statements (continued)
8. Related-Party Transactions
For the year ended September 30, 2009, the Board paid fees to the Property Appraiser that
amounted to $5,933,053. At September 30, 2009, the Property Appraiser had a payable due to
the Board of County Commissioners of $980,203 representing thc distribution of excess fees.
9. Risk Management
Collicr County, Florida (the County) is exposed to various risks of loss including, but not limited
to general liability, hcalth and life, property and casualty, auto and physical damage, and
workers' compcnsation. The County is substantially self-insured and accounts for and finances
its risk of uninsured losses through an internal service fund. All liabilities associated with thcse
self-insured risks are reported in the basic financial statements of the County. During the ycar
ended Scptcmbcr 30, 2009, the Property Appraiser was charged $672,547 by the County for
participation in the risk management program.
The County provides coverage for up to $500,000 per claim for workers' compensation, and has
purchased outsidc cxcess coverage for up to $25 million for cmployer liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200,000 per claim for auto and othcr liability claims, and has purchased outside excess
coverage f()f up to $2 million per claim. Negligence claims in excess of the statutory I imits set in
Section 768.20, Florida Statutes, which provide for limited sovereign immunity of
$100,000/$200,000 per occurrcncc can only be rccovcred through an act of the State Legislature.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third party carriers in any of the last three years.
The County is also self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar ycar pCI' covered
mcmbcr and purchases cxcess coverage with a maximum lifdime limit of $2,000,000. As
rcquired by Section 112.08 I, Florida Statutes, retirees and their eligiblc dependents are provided
the same health care coveragc as is offcred to active cmployees at the same premium cost (borne
by the retirec) applicablc to active cmployecs. An actuarial valuation is performed each year to
estimatc the amounts ncedcd to pay prior and future claims and to establish reserves.
10. Litigation
The Property Appraiser is involved as defendant or plaintiff in certain litigation and claims
arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal
counsel, the range of potential recoveries or liabilities will not matcrially affect the financial
position of the Property Appraiser.
(jlJl:!-1114357
14
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Report of Independent Certified Public Accountants on Internal Control
Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Special-Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Abe Skinner, Propcrty Appraiscr
Collier County, Florida
We havc audited the special-purpose financial statements of the general fund of the Collier
County, Florida Propcrty Appraiser (the Property Appraiser) as of and for thc ycar ended
Septembcr 30, 2009, and have issued our report thereon dated December 12, 2009, which
describes that such special-purpose financial statements have been prepared for the purpose of
complying with Section 218.39, Florida Statutes, and Chapter 10.577(3), Rules of the Auditor
General fiJr Local Governmental Entity Audits. We conducted our audit in accordancc with
auditing standards generally accepted in the United States and the standards applicable to
financial audits contained in Government Auditing Standardl', issued by thc Comptroller General
of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Property Appraiser's internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the special-purpose financial statements, but not for the purpose of
exprcssing an opinion on the effectiveness of the Property Appraiser's internal control over
financial reporting. Accordingly, we do not express an opinion on the effcctivencss of the
Property Appraiser's intcrnal control over financial rcporting.
A deficicney 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 misstatements on a timely basis. A matcrial weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detectcd and
corrected on a timely basis.
Our consideration of internal control over financial reporting was for thc limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencics in
internal control that might be deficiencies, significant deficiencies or matcrial weaknesses. We
did not identify any deficiencies in internal control over financial reporting that we consider to
be material weaknesses, as defined above.
0912-1114157
15
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11111111111111111111111111""" Ell ERNST & YOUNG
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's
special-purpose financial statements arc frec of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on thc dctermination of
special-purpose financial statcment amounts. Howcver, 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 discloscd no instanccs of noncompliance or other matters that
are required to be rcportcd under Government Auditing Standard,'.
We noted certain matters that we reportcd to managcment of the Property Appraiser in a separate
letter dated December 12,2009.
This report is intended solely for the information and use of the Propcrty Appraiser,
management, the Board of County Commissioners of Collier County, Florida and the Auditor
General of the State of Florida, and is not intcndcd to be and should not be used by anyone other
than these specified parties.
~M<d of MLL'P
December 12, 2009
(}<)11-1114.157
16
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Ernst & Young LLP
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Management Letter
Honorable Abe Skinner, Property Appraiser
Collier County, Florida
We have audited the special-purpose financial statements of the general fund of the Collier
County, Florida Property Appraiser (the Property Appraiser) as of and for the year ended
September 30,2009, and have issued our rcport thercon datcd December 12, 2009.
We conducted our audit in accordance with auditing standards gcncrally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller Gcneral of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chaptcr 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits pcrformed in tbc State of Florida and
rcquire that certain items be addressed in this letter.
Wc have also issued our report dated December 12, 2009, on internal control over financial
reporting and on compliance and other matters based on an audit of special-purposc financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management lctter.
Current Year Findings and Recommendations
2009-0] C'alculation oj'Compensated Absence Liahility
Observation
The Propcrty Appraiser is responsible for calculating thc accrual for compensated absences
annually. This amount is currently only a financial statement disclosurc within the Property
Appraiser's financial statements. Howevcr, this amount is provided to the Collier County Board
of County Commissioners to be disclosed within thc government-wide financials. We note that
the accrual provided by management was incorrect due to l~)fmula errors in the spreadsheet used
to assist in the computation. The Property Appraiser policy states that cach employee's accrual
should be based on service years. As such, each person was being accrued at 50% rcgardless of
hire date rcsulting in an ovcrstatcd accrual.
Recommendation
Wc rccommend that a second lcvcl review process be performed on the calculation to ensure that
the amount is accurate as it is reported in the comprchensive annuallinancial report.
()\)12-1 \ 14~57
17
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Prior Year Findings and Recommendations
There were no findings or recommendations made in the prior year financial audit.
Other Required Communications
No matters of noncompliance with Section 218.4 15, Florida Statutes. regarding the investment
of public funds were identified within the scope of our audit.
The rcsults of our audit disclosed no violations of laws, rules, regulations or contractual
provisions or abuse, no impropcr or illegal expcnditurcs, and no control deficiencies other than
the intcrnal control recommendations included above.
The Property Appraiscr was cstablished by thc Constitution of the State of Florida, Article VIII,
Section led).
This managemcnt letter is intended solely for the information and use of the Property Appraiser,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intendcd to be and should not be used by anyonc other
than these specified parties.
(6M<d of MLLP
December 12, 2009
nlJ12-1114357
18
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S I' E (' I A I - PUR I' () S ,.: r I NAN C I A L S T AI F M EN T S
Collier County. Florida
Sheriff
Year Ended September 30, 2009
With Report oflndependent Certitied Public Accountants
Ernst & Younq LLP
i!J ERNST & YOUNG
Collier County, Florida
Sheriff
Special-Purpose Financial Statements
Year Ended September 30, 2009
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheet - Governmental Funds ..................................................................3
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds.....................................................................................................................4
Special-Purpose Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- General Fund...............................................................................................5
Special-Purpose Statement of Net Assets --Internal Service Fund .................................................6
Special-Purpose Statement of Revenues, Expenses, and Changes in Net Asscts -
Internal Service Fund.................................................................................................................... 7
Special-Purposc Statement of Cash Flows -Internal Service Fund................................................8
Special-Purpose Balance Sheet - Agency Funds.............................................................................9
Notes to Special-Purpose Financial Statements.............................................................................10
Combining Financial Information
Combining Special-Purpose Balance Sheet - Agency Funds........................................................28
Special-Purpose Statement of Changes in Assets and Liabilities - Agency Funds.......................29
Required Supplementary Information
Schedule of Funding Progress lor the Retiree Health Plan............................................................30
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose
Financial Statements Performed in Accordance With Government Auditing Standards ...........31
Report on Agreed-Upon Procedures Applied to Investigative Funds ...........................................33
Management Letter........................................................................................................................ 3 5
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Report ofIndependent Certified Public Accountants
Honorable Kevin Rambosk, Sheriff
Collier County, Florida
We have audited the accompanying special-purpose financial statements of each major fund and
the aggregate remaining fund information of the Collier County, Florida Sheriff (the Sheriff), as
of and for the year ended September 30, 2009 as listed in the table of contents. These special-
purpose financial statements are the responsibility of the Sheritrs management. Our
responsibility is to express opinions on these spccial-purpose financial statements based on our
audit.
We conducted our audit in accordance with auditing standards gencrally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purposc
financial statements are free of material misstatement. We were not engaged to perform an audit
of the Sheriffs internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Sheriffs internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, cvidence supporting the
amounts and disclosures in the special-purpose financial statements, assessing the accounting
principles used and significant cstimates made by management, and evaluating the overall
special-purpose financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
As discussed in Notc 1, the accompanying special-purpose financial statements referred to above
were prepared for the purposc of complying with Section 218.39. Florida Statutes, and
Chapter 10.557(3). Rules of the Auditor General for Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a complete presentation of the
Sheriffs financial position, as of Septembcr 30, 2009, and the changes in its financial position,
where applicable. for the year then endcd in conformity with accounting principles generally
accepted in the United States. Additionally. the special-purpose financial statements present only
the Sheriff and do not purport to, and do not, prescnt fairly the financial position of Collier
County, Florida. as of September 30, 2009. and the changes in its financial position. whcrc
applicable. for the ycar then ended in conformity with accounting principles generally accepted
in the United States.
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In our opinion, the special-purpose financial statements referred to above present fairly. in all
material respects, the respective financial position of each major fund and the aggregate
remaining fund information of the Sheriff as of September 30, 2009. and the respective changes
in financial position and, where applicable. cash flows thereof and the budgetary comparison for
the general fund for the year then ended in conformity with accounting principles generally
accepted in the Unitcd States.
In accordance with Government Auditing Standards, we have also issued our report dated
December 11,2009 on our consideration of the Sheriffs internal control over financial reporting
and on our tests of its compliancc with certain provisions of laws, rcgulations, contracts and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control ovcr financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an intcgral part of an audit performed in accordance with Government Auditing
Slandards and should be considered in assessing the results of our audit.
The Schedule of Funding Progress for the Retiree Health Plan on page 30 is not a required part
of the special-purpose financial statements but is supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures. which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However. we did not audit the
information and express no opinion on it.
Our audit was conducted lor the purpose of forming opinions on the special-purpose financial
statements. The combining financial information is presented for purposes of additional analysis
and is not a required part of the special-purpose financial statements. The combining financial
information has been subjected to the auditing procedures applied in the audit of thc special-
purpose financial statements and, in our opinion, is fairly stated in all material respects in
relation to the special-purpose financial statements taken as a whole.
This report is intended solely for the information and use of the Sherifl~ management, the Board
of County Commissioners of Collier County. Florida, and thc Auditor General of the State of
Florida. and is not intended to be and should not be used by anyone other than these specified
parties.
~M<d of MLLP
December 11, 2009
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Collier County, Florida
Sheriff
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual-
General Fund
Year Ended September 30. 2009
Variance With
Budget
Budget Positive
Orh~inal Final Actual (Negative)
Revenues:
Charges for services $ $ I. 770,000 $ 2,221,897 $ 451,897
Expenditures:
General government:
Personal services 3,760,800 $ 3,760,800 $ 3,800,024 (39,224 )
Operating expenditures 144,600 144,600 126,638 17,962
Public safety:
Personal services 121,389,200 12 I ,208,600 I 19,496,653 1,711,947
Operating expenditures 23,593,900 23,620,700 20,222,665 3,398,035
Capital outlay 2,130,000 1,853,800 3,779,817 (1,926,017)
Total expend hures 151,018,500 150,588,500 147,425,797 3,162,703
Excess of expenditures over revenues (151,018,500) ( 148,818,500) ( 145,203,900) 3,614,600
Other finane ing sources (uses):
Transfers in:
Collier County, Florida Board of County
Commissioners appropriations 151,018,500 148,8 I 8,500 148,8 I 8,500
Transfers out:
Distribution of excess appropriations to
Collier County, Florida Board of
County Commissioners (3,614,600) (3,614,600)
Total other financing sources 151,018,500 148,818,500 145,203,900 (3,614,600)
Excess of revenues and other
financing sources over expenditures $ - $ $
Fund balance beginning of year
Fund balance end of year $
See accompanying notes.
O<')Ol'!-IOSI140
5
Collier County, Florida
Sheriff
Special-Purpose Statement of Net Assets - Internal Service Fund
September 30, 2009
Assets
Cash, cash equivalents and investments
Interest receivable
Other receivable
Total assets
$ 13.309,197
15,917
18,231
$ 13,343,345
Liabilities and net assets
Liabilities:
Self insurance claims payable
Net other postemployment benefit obligation
TotalliabiJities
$ 2,121,000
1,026,451
3,147,451
Net assets:
Unrestricted
Total liabilities and net assets
10,195,894
$ 13,343,345
See accompanying notes.
090l!-l081140
6
Collier County, Florida
Sheriff
Special-Purpose Statement of Revenues, Expenses, and
Changes in Net Assets - Internal Service Fund
Year Ended September 30, 2009
Operating revenues:
Charges for services
Operating expenses:
Claims and claims expenses
Reinsurance premiums
Net other post employment benefit expense
Adm inistrative and other expenses
Total operating expenses
Operating income
Nonoperating revenues:
Interest income
Increase in fair value of investments
Change in net assets
Net assets - beginning of year
Net assets - end of year
See accompanying nules.
O<JOR-IORlI40
$ 17,344,792
15,720,945
666.088
476,583
298,048
17,161,664
183.128
80,091
17,339
280,558
9,915.336
$ 10.195,894
7
Collier County, Florida
Sheriff
Special-Purpose Statement of Cash Flows - Internal Service Fund
Year Ended September 30, 2009
Operating activities
Cash payments for claims and claims related services
Cash payments for reinsurance premiums
Cash payments for administrative services and supplies
Cash recei ved from other funds for services
Cash received from retirees for services
Net cash provided by operating activities
$ (15,452.390)
(666,088)
(298,048)
17,000,000
444.792
1,028.266
Investing activities
Investment earnings
Net cash provided by investing activities
81.5 13
81.5 13
Net increase in cash, cash equivalents, and investments
Cash, cash equivalents, and investments - beginning of year
Cash, cash equivalents, and investments - end of year
1,109.779
12, 199,4 1 8
$ 13,309,197
Reconciliation of operating income to net cash
provided by operating activities
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Decrease in receivables
Decrease in due from other funds
Increase in net other postemployment benefit obligation
Increase in self-insurance claims payable
Net cash provided by operating activities
$ 183,128
241,555
100.000
476.583
27.000
$ 1,028.266
See aecompanying notes.
(}<)OR-IOXlI40
8
Collier County, Florida
Sheriff
Special-Purpose Balance Sheet - Agency Funds
September 30, 2009
Assets
Cash and cash equivalents
Total assets
Liabilities
Due to other governments
Due to Collier County, Florida
Board of County Commissioners
Due to individuals and businesses
Total liabilities
See accompanying notes.
O'J08-10S1140
$ 437,552
$ 437,552
$ 11,286
55,528
370,738
$ 437,552
9
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements
September 30, 2009
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County. Florida Sheriff (the Sheriff) is an elected constitutional officer as provided
for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the
Sherifrs budget is submitted to the Collier County, Florida Board of County Commissioners
(Board) for approval.
The Sheriff is the chief law enforcement officer of Collier County, Florida (the County) and is
responsible for operating the County's corrections facilities. The special-purpose financial
statements ineludc the general fund, special revenue funds, proprietary fund, and agency funds of
the Sheriffs ot1ice. The accompanying special-purpose financial statements were prepared for
the purpose of complying with Section 218.39, Florida Statutes. and Section 10.557(3), Rules of
the Auditor Generalfor Local Governmental Entity Audits.
Section 10.556(4). Rules oj'the Auditor Generalfor Local Governmental Entity Audits, requires
the Sheriff to only present fund financial statements, Accordingly, duc to the omission of
government-wide financial statements and related disclosures, including a management's
discussion and analysis, these special-purpose financial statcmcnts do not constitute a complete
presentation of the financial position of the Sheriff as of Septcmber 30,2009 and the changes in
its linancial position and its cash flows, where applicable, for the year thcn cnded, in conformity
with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial
Statements and Management's Discussion and Analysis for State and Local Governments,
but otherwise constitute financial statements prepared in conformity with U.S. generally
acceptcd accounting principles.
As a result of the budgetary oversight by the Board and the financial dependency on the Board,
the linancial activitics of thc Sheriff are included in the Collicr County, Florida Comprehensive
Annual Financial Report.
Transfers are provided by appropriations from the Board pursuant to law. Estimated reccipts and
budgeted fund balances must equal appropriations. The Sheriff is required to rc1und to the Board
all excess appropriations annually; therelore, no unappropriated general fund balance is carried
forward.
()')()R-lIlXI140
10
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
The special-purpose fund financial statements report detailed information about the Sheriff. The
focus of governmental fund financial statements is on major funds rather than rcporting funds by
type. Each major fund is reported in a separate column.
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities. generally, are ineluded on the special-purpose
balance sheet.
Operating statements for these funds present increases (i.e., revenues and other financing
sources) and decreases (i.e., expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used by governmental funds. Under the modified
accrual basis of accounting. revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance currcnt liabilities of the fiscal year). For this
purpose, the Sheriff considers revenues to be available if they are collectcd within 60 days after
year end with the exception of grants, which have a period of availability of one year. Grants are
recognized as rcvenuc as soon as all eligibility rcquirements have been met. Expenditures are
recorded when the related fund liability is incurred. except for compensated absenccs, which are
recognized as expenditures to the extent they have maturcd.
Substantially all of the Sheriffs funding is appropriated by the Board. In applying the
susceptible to accrual concept to intergovernmcntal rcvenue, there are essentially two types of
revenue. In one. moneys must be expended on the specific purpose or project before any
amounts will be paid to the Sheriff; theref()re. revenue is recognizcd based upon the expenditures
incurred. Most grant revenue is rccorded in this manner. In thc othcr, moneys are virtually
unrestricted and are revocable only J()l' failure to comply with prescribed compliance
requirements. These resources are reflected as rcvcnue at the time of receipt, or carlicr, if the
"susceptible to accrual" criteria are met.
Other revenue is recognized as earned and becomes measurable and available to pay liabilities of
the current period.
O,)()X-\081 140
11
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Florida Statutes provide that the amount by which revenues and transfers exceed annual
expenditures be remitted to the Board immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenue was recognized. The
amount of this distribution is recorded as a liability and as an other financing use in the
accompanying special-purpose financial statements.
Capital outlays expended in governmental fund operations are recorded as capital assets in the
basic financial statements of Collier County, Florida rather than in the governmental funds of the
Sheriff.
The Sheriff has three major governmental funds:
General Fund - The general fund is used to account for the general operations of the
SherifJ and includes all transactions which are not accounted for in another fund.
Grant Special Revenue Fund - This fund is used to account for the proceeds of federal
and state grant revenues that are legally restricted to specified purposes.
Prisoner Welfare Fund - This flmd is used to account for the proceeds of inmate related
services and is lcgally restricted to specified purposes. which benefit the inmate
population.
The Sheriff also has one non-major fund:
Federal Equitable ,<,'haring Fund The revenue Ii-om this fund is the result of joint
investigations with federal agencies that result in the equitable sharing of the net proceeds
of the forfeiture.
Fund balances reported in these funds are to be used for the specified purpose of the respective
fund.
090S-1081140
12
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
I. Summary of Significant Accounting Policies (continued)
Fiduciary Funds
Fiduciary Funds - Agency Funds - These funds are used to account for assets held by the Sheriff
as an agent for individuals, private organizations. and other governments. Agency funds are
custodial in nature (assets equal liabilities), and do not involve mcasurement of results of
operations or havc a measurcment locus. Agency funds are accounted for using the accrual basis
of accounting.
Proprietary Fund
Internal Service Fund - This fund is used to account for the health and dental insurance services
provided to departments and retirees of the SherifT on a cost-reimbursement basis. Proprietary
funds are accounted for using the economic resources measurement focus and the accrual basis
of accounting, Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows.
Cash Equivalents and Investments
Cash equivalents are defined as highly liquid investments with original maturities of three
months or less. Cash equivalents also include amounts deposited in Florida PRIME (formerly the
Local Government Surplus Trust Fund) administered by the State Board of Administration, a
2a-7 likc investment pool. Shares of the investment pool are based on the pool's share price,
which approximates fair value. All invcst111cnts are stated at fair value.
Compensated Absences
All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours
of unused sick time and up to 440 hours of unused vacation leave. Upon termination, employees
receive 100% of allowable accumulated vacation hours and a perccntage of unused sick leave,
depending on years of service, not to exceed 1.000 hours. Vacation time and sick leave are
included in operating costs when the payments are made to the employees. The Sheriff does not.
nor is he legally required to. accunmlate expendable finaneial resources for these unmatured
obligations. Accordingly, the liability lor compensated absences is not reported in the
governmental funds. but rather is reported in the basic financial statements of Collier County,
Florida.
O'JOll-lOSI140
13
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Use of Estimates
The preparation of the special-purpose financial statements requires management of the Sheriff
to make a number of estimates and assumptions relating to the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the special-purpose
financial statements and the reported amounts of revenues and expenditures during that period.
Significant items subject to such estimates and assumptions include the selt:insurance claims
payable. Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Sheriffs annual
budget. The Sheriff prepares a budget for the general fund and submits it to the Board of County
Commissioners for approval. The budget is prepared on a basis consistent with U.S. generally
accepted accounting principles. Any subsequent amendments to the budget must be approved by
the Board. The annual budget serves as the legal authorization for expenditures. Expenditures
may not legally exceed appropriations at the fund level. Appropriations lapse at year end.
Budgetary control is maintained at the departmental major object expenditure level. Budgetary
changes within the major object expenditure categories are made at the discretion of the Sheriff
The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state
grants and is governed by those documents. Additionally, the prisoner welfare and federal
equitable sharing funds do not have legally adopted budgets.
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves. transfers. allocations, supplemental appropriations. and other
legally authorized changes applicable to the fiscal year, whenever legally authorized.
O<)OX-]()XI140
14
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash, Cash Equivalents and Investments
At September 30, 2009, the carrying value of the Sheritrs cash, cash equivalents and
investments was as follows:
Average Carrying Credit
Type Maturity Value Ratin~
Cash on hand N/A $ 16,293 N/A
Demand deposits N/A 23.181.888 N/A
Local government surplus tunds trust fund:
Pool A 31.5 days 704.367 AAAm
Pool B 6.69 years 26,313 Unrated
Federated Gov't Obligation Fund N/A 304.697 N/A
Federal Home Loan Bank 10/16/2009 1.000.000 AAA
Federal Home Loan Bank 11/12/2009 3.999.600 AAA
Treasury Note 2/28/2011 200,766 AAA
Federal Farm Credit Bank 3/9/2012 350,656 AAA
Federal Home Loan Bank 3/29/2012 249,922 AAA
Federal Home Loan Bank 8/20/2012 302.531 AAA
Federal Home Loan Bank 8/26/2013 253.984 AAA
Federal Farm Credit Bank 12/15/2011 251.016 AAA
Federal National Mortgage Assoc 11/26/2012 302.062 AAA
Federal National Mortgage Assoc 11/28/2012 250.234 AAA
Federal National Mortgage Assoc 3/28/2013 250.312 AAA
Federal Home Loan Bank 6/24/2013 304.219 AAA
Federal Home Loan Mortgage Corp 4/29/2014 250,336 AAA
Federal Home Loan Mortgage Corp 6/16/2014 299.638 AAA
Federal Home Loan Bank 8/12/2014 250,469 AAA
Federal Home Loan Bank 6/18/2014 250,625 AAA
Total cash, cash equivalents and investments $ 32,999.928
()l)OR-I081140
15
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash, Cash Equivalents and Investments (continued)
The total cash, cash equivalent and investments balances at September 30, 2009 were as follows:
General fund
Grant special revenue fund
Prisoner welfare fund
Federal equitable sharing fund
Internal servicc fund
Agency funds
$ 13.255,849
4.573,964
677.291
746.075
13,309,197
437,552
$ 32,999,928
Custodial Credit Risk
At September 30, 2009, the Sheriff deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter. in the event of default by a participating linancial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
government entity for the loss.
Interest Rate Risk
The Sheriff has no specific investment policy regarding interest rate risk.
Credit Risk
The Sheriff's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the
deposit of funds received and the investmcnt of surplus funds. Sections 219.075 and 218.415.
Florida Slatutes, authorize the Sheriff to invest in the local government surplus funds trust fund;
obligations of the United States Treasury; federal agencies and instrumentalitics. or any
intergovernmental pool authorized pursuant to the Florida Interlocal Corporation Act; Securities
and Exchange Commission rcgistercd money markct lund with the highest credit quality rating
from a nationally recognized rating agency; direct interest-bearing time deposits or savings
accounts in banks organized under the laws of the United States and doing business and situated
in the State of Florida. savings and loan associations, which arc under state supervision, or in
(ll)()S-lOHI140
16
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash, Cash Equivalents and Investments (continued)
federal savings and loan associations located in the State of Florida and organized under federal
law and federal supervision. provided that any such deposits are secured by collateral as may be
prescribed by law. Additionally. Florida Statutes allow local governments to place public funds
with institutions that participate in a collateral pool under the Florida Security for Public
Deposits Act. The pool is administered by the state treasurer. who may make additional
assessments to ensure that no public funds will be lost.
Florida PRIME (formerly the Local Government Surplus Funds Trust Fund Investment Pool)
(the Pool) is administered by the State Board of Administration. On December 4. 2007, based on
recommendations from an outside financial advisor. the State Board of Administration
restructured the Pool into two separate pools. Pool A (later renamed LGIP) consisted of all
money market appropriate assets, which was approximately $12 billion or 86% of Pool assets.
Pool B (later renamed Fund B Surplus Trust Fund) consisted of assets that either defaulted on a
payment, paid more slowly than expected, and/or had any significant credit and liquidity risk,
which was approximately $2 billion or 14% of Pool assets. In addition. full realization of the
principle value of Pool B assets is not readily determinable. At the time of the restructuring, all
current pool participants had their existing balances proportionately allocated into Pool A and
Pool B. At September 30, 2009. the Sheriff had $730,680 invested in thc Pool. Of this amount,
$704,367 is invested in the LGJP, which is rated "AAAm" by Standard & Poor's Ratings
Services, and $26,313 in the Fund B Surplus Funds Trust Fund. which is not rated by a
nationally recognized statistical rating agency. The LGIP investment is fully liquid and carries a
weighted average days to maturity of 31.5 days.
Fund B is accounted for as a l1uctuating NA V (net asset value) pool and the fair value factor for
September 30. 2009 was .54915. The Fund B amount has a weighted average life of 6.69 ycars.
Fund B cash holdings continue to be distributed to participants as thcy become available from
maturities, sales and received income.
()<)(JR-tORI140
17
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
3. Cash, Cash Equivalents and Investments (continued)
Concentration of Credit Risk
The Sheriff's investments are included in the internal service fund which is used to account for
the Sheriffs self~insured health plan. The Florida Sheriffs Multiple Employer Trust administers
the Sheriffs selt~insured health plan and has an investment policy that allows for the investment
of funds that exceed one month's required funding by more than $100,000. Investments can be
made in government securities. The Sheriff's portfolio managed by the self-insurance trust
includes investments in U.S. government instrumentalities. money market funds, and demand
deposits. detailed as follows, at September 30, 2009:
Percent of
Portfolio
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Federal National Mortgage Association
Federal Farm Credit Bank
U.S. Treasury Note
Money Market Funds-Federated Government Obligation
Demand Deposits
Total
4%
53%
6%
5%
2%
2%
27%
100%
4. Capital Assets
Capital assets used by the Sheriff are capitalized in the basic linancial statements of Collier
County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such
assets are recorded as expenditures in the governmental funds of the Sheriff. and are capitalized
at cost in the basic financial statements of Collier County. Florida. Capital assets are valued at
historical cost or estimated historical cost if actual historical cost is not available. Donated
capital assets are valued at their estimated fair value on thc date received. The Sheriff maintains
custodial responsibility for the capital assets used by his ot1ice. No depreciation has been
provided on capital assets in these special-purpose financial statements. Howcver, depreciation
expense on thesc assets is recorded in the basic financial statements of Collier County. Florida.
(}l)OR-IORI140
18
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
4. Capital Assets (continued)
A summary of changes in capital assets, which are reported in the basic financial statements of
Collier County, Florida follows:
Balance Balance
October 1, September 30,
2008 Additions Retirements 2009
$ 56,736,011 $ 8,190,430 $ 3,415,509 $ 61.510.932
(40,718,716) (8,162,274) (3,254.690) (45,626,300)
$ 16,017,295 $ 28,156 $ 160.819 $ 15,884,632
Machinery and equipment
Less accumulated depreciation
Machinery and equipment. net
s. Long-Term Liabilities
The following is a summary of changes in long-term liabilities. which are reported in the basic
financial statements of Collier County. Florida:
October 1,
2008
Increases
September 30,
Retirements 2009
Accrued compensated absences
$ 11,499,067 $ 2,827,742
$ (2.385,195) $ 11,941.614
Of these liabilities. approximately $1.1 18,000 is expected to be paid during the fiscal year ending
September 30,2010. These long-term liabilities are not reported in the spccial-purpose financial
statements of the Sheri n' since they have not matured.
6. Interfund Balances and Transfers
Due from and due to other lunds at September 30, 2009 were as follows:
Due from Due to
General fund $ 23.311 $ 49
Prisoncr welfare special revenue fund 54 23.365
Grant special rcvcnue lund 49
$ 23.414 $ 23.414
Interfund receivables and payables generally represent recurring activities betwccn funds.
()'J08.jOSlI40
19
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
7. Related-Party Transactions
The Board of County Commissioners provided funding for the Sheriff for the year of
$148,818,500. At September 30,2009. the Sheriff had a payable due to the Board of County
Commissioners of$3,893,603 comprised of the following:
General fund:
Distribution of excess appropriations
Distribution of interest collected
Misccllaneous payables
Agency funds
Total
$ 3,614,600
219.241
4,234
55,528
$ 3,893,603
Additionally, the Sheriff had a receivable from the Board related to services provided to the
County of $51 ,623 at September 30. 2009.
8. Employee Retirement Plan
Substantially all full-time and part-timc employees of the Sheriff are eligible to participate in the
State of Florida Retirement System (System), a cost-sharing multiple-employer defined benefit
plan administered by the State of Florida, Division of Retiremcnt. Thc System is a defined
benefit plan for all state, and participating county, district school board, community college. and
university employees (Pension Plan). The System also offers eligible employees participation in
an alternative defined contribution plan (Investment Plan). The Sheriff and deputies participate
in the Special Risk Class. The plan is administered by the State of Florida. Contribution rates are
established statewide for all participating governmental units. Accordingly, the actuarial
information and related disclosures attributable to the SheritTs employees are not determinable.
Employees participating in the Pension Plan who retire at or after age 62 with 6 years of credited
service for regular risk or with 30 years of service regardless of age, arc cntitled to a retirement
benefit, payable monthly for life, equal to 1.6% for regular employees, 2% for senior
management, and 3% for county elccted ollicials of their final average compensation for each
year of credited service; and for special risk, after age 55 with 6 years or with 25 years of service
rcgardless of age, are entitled to a retirement benefit payable monthly for life, up to 3% for each
year of crcdited scrvicc times thcir final average compensation. Final avcragc compensation is
the employee's average of the five highest years of salary earned during credited service. Vested
employees may retire before age 62 for regular risk and 55 lor special risk and receive retirement
0901':-10&1140
20
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
8. Employee Retirement Plan (continued)
benefits that are reduced 5% for each year prior to normal retirement age. Employees
participating in the investment plan are vested afier one year of service with no age requirement.
The System also provides death and disability benefits. Benefits are established by Chapter 121.
Florida Statutes and Chapter 22B, Florida Administrative Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July I, 1998. Under this program. the employee may retire and have their
benefits accumulate in the Florida retirement system trust fund, earning interest, while
continuing to work for a System employer. The participation in the program does not change
conditions of employment. When the DROP period ends, maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee will receive
payment of the accumulated DROP bencfits, and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. That report may be
obtained by writing to the Division of Retirement. Department of Management Services, 1317
Winewood Boulevard, Building 8. Tallahassee. Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.frs.state.tlus.
The Sheriff is required to contribute an actuarially determined rate. The current rate is 20.92%
for special risk employees, 16.53% for county elected officials, 9.85% for regular employees,
13.12% for senior management and 10.91% for DROP employees based on eovered payroll. The
contribution requiremcnts of thc Sheriff are established and may be amended by the State of
Florida. The Sherifl's contributions to the plan for the ycars cndcd September 30, 2009. 2008.
and 2007 were $14.955,868. $15,179.541 and $14,688,803, respectively. equal to thc required
contributions for each year.
OY08-108114U
21
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits
Effective October 1. 2007. the Sheriff adopted the provIsIOns of GASB Statement No. 45
Accounting and Financial Reporting hy Employers for Postemployment Benefits Other Than
Pensions.
Plan Description
The Sheriff administers a single-employer defincd benefit plan (OPEB Plan) and can amend the
benefit provisions. The Sheriff offers an OPEB Plan that subsidizes the cost of health care for its
retirees who have 6 years of creditable service with the Sheriff and who receive a monthly
retirement benefit from the Florida Retirement System. The Sheri If subsidizes approximately
20% for single coverage and 21 % for family coverage for qualifying individuals. Additionally. in
accordance with Florida Statute 112.0801, Sheriffs employees who retire and immediatcly begin
receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's
health insurance plan at the same group rate as for active employees.
At September 30. 2009, the date of the latest actuarial valuation. Sheriff plan participation
consisted of:
OPEB plan participants
Retirees receiving benefits
1,319
92
Funding Policy
The Sheriff has the authority to establish and amend funding policy. The OPES Plan is currently
being funded on a pay-as-you-go basis. For the year ended September 30, 2009. the Sheriff
contributed $876,138 to thc OPED Plan.
Annual OPEB Cost and Net OPEB Obligation
The annual cost (expense) of the Sheriff's OPEB Plan is calculated based on the Annual
Required Contribution (ARC), an amount actuarially determined in accordance with the
parameters ofGASB Statement No. 45. The ARC represents a Icvel of funding that, ifpaid on an
ongoing basis. is projected to cover the normal cost each ycar and amortize any unnl11ded
0908_10Xl140
22
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
actuarial liability ovcr a period not to exceed 30 years. The following table shows the
components of the Sheriffs annual OPEB Plan cost for the year ended September 30, 2009, the
amount actually contributed, and the changes in the net OPEB Plan obligation.
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual rcquircd contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation (asset)
Net OPEB obligation - beginning of year
Net OPEB obligation (asset) - end year
$
1,363,462
16,496
(27,237)
1,352,721
876,138
476,583
549.868
1,026,451
$
No trust or agency fund has been established for the plan.
The Sheriff's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the net OPEB obligation for the year ended September 30. 2009 and the preceding year were
as follows (information for the second preceding year is not available as GASB Statement No. 45
was adopted October 1, 2(07).
Fiscal Year Ended
Annnal
OPEB Cost
Percentage of
Annnal OPEB
Cost Contributed
Net OPEB
Obligation
September 30.2009
September 30,2008
$ 1,352,721
$ 1,019,866
65%
46%
$ 1.026,451
$ 549,868
Funded Status and Funding Progress
As of the September 30. 2009 actuarial valuation date, the OPEB Plan was 0% funded. the
actuarial accrued liability lor benefits was $14,171,709, and the actuarial value of assets was $0.
resulting in an unfunded actuarial accrued liability (lJAAL) of $14, 171,709. The covered payroll
(annual payroll of active cmployees covered by the OPEB Plan) was $123.3 million, and the
ratio of the UAAL to the covered payroll was 11.5%.
090!!-lOXl140
23
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment. mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past cxpectations
and new estimates arc made about the future.
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by thc employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual lunding limitations on the pattern of cost sharing
between the employer and plan members in the future. Actuarial calculations reflect a long-term
perspectivc. Consistent with that perspectivc. actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-tcrm volatility in actuarial accrued
liabilities and the actuarial value of asscts.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period
Projected lJ nit Credit Method
Closed
30 years, Level Dollar Amount
The actuarial assumptions are:
Investment rate of return
Discount rate
Healthcare cost trend ratc
3%
3%
10% for thc 2010 fiscal year grading to an ultimatc
rate of 8% tor the 2014 liscal year
()<)()R-IORlI40
24
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
9. Other Post Employment Benefits (continued)
Early Voluntary Separation Program
The Sheriff offered an early voluntary separation program during fiscal year 2009. The program
was offered from March 2, 2009 through April 17. 2009, with retirement/resignation taking
efTect prior to September 30, 2009 for those that elected to participate. Employees had a choice
of one of the following basic options:
(A) Medical coverage for a period of three years for coverage no more than current level
(family or single), or
(B) An up front one-time payment of 50% of the value of the medical coverage in lieu of
three years of coverage, or
(C) A combination of both insurance coverage and a cash payment.
Further, employees had a choice of one of the following supplemental options:
(D) Extended medical coverage based upon accrued and not expended sick leave.
beginning the first day of the month after the expiration of time granted by option A,
B, or C. The unpaid sick leave balance available at the separation date, minus any
hours paid in accordance with Sheriff policy. were multiplied by the hourly rate at
time of separation. and then divided by the monthly projected health insurancc rate
to determine the number of months to be paid by the Shcri IT
(E) Cash in lieu of extended medical coverage based upon accrued and not expended
sick leave. This option provided lor a one time cash payment to the member
equivalent to 50% of the calculated value or unpaid sick leave (less any applicable
payroll taxes) using the balance available at separation date, minus any hours paid in
accordance with Sheriff policy, and multiplied by thc hourly rate at the datc of
separation.
Thirty-three employees elected to participate in the program. Twenty-four employees selected
option A, one employee selected option C. These two options. as well as supplemental option D.
resulted in an increase in the actuarial accrued liability for the OPEB Plan of approximately
$2.000,000. The total cash payments made at the termination date were $150,000 and $214.000
under options Band E, respectively. These amounts were included in fiscal year 2009 payroll
expense.
(j')lIX-lOXI140
25
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
10. Self-Insurance Program
The Sheriffs Office participates in the Statewide Florida Sheriffs Self-Insurance Fund (the
Fund) for its professional liability insurance. The Fund is managed by representatives of the
participating Sheriff officcs and provides professional liability insurance to participating
agencies. The Fund provides liability insurance coverage subject to the following limitations:
$3,100,000 for any claim involving a single individual, $3,200.000 for any incident which
involves multiple claims and an aggregatc of $3,500,000 ultimate net loss per Sheriff during any
policy period. The Sheriff also participates in the Florida Shcriffs' Self-Insurance Fund program
for workers' compensation coverage. The Florida Sheritl's' Association Workers' Compensation
Insurance Trust is a limited self-insurance fund providing coverage for the first $350,000 of
every elaim. Reinsurance is provided through a third party for all claims exceeding $350.000 up
to $10,000,000. Settled claims have not exceeded the insurance provided by third-party carriers
in any of the past three years.
Premiums charged to participating Sheriffs are based upon amounts believed by the Fund
management to meet the estimated annual payout during the fiscal year and to pay for the
estimated operating costs of the program. All liabilities associated with these selt:insured risks
are reported in the basic financial statements of the Statewide Florida Sheriffs Self-Insurance
Fund.
The Sheriff has also established a self-fi.l11ded employee health plan for active employees and
retirees. An internal service fund is used to account for the activities of the plan. Excess coverage
has been purchased which provides speeific claim excess coverage for anyone incident
exceeding $150,000 up to $1,000,000. Payments to the internal service fund are based on
actuarial estimates of amounts needed to pay prior year and currcnt year claims including claims
incurred but not yet reported.
(j')()!l-]()XI140
26
Collier County, Florida
Sheriff
Notes to Special-Purpose Financial Statements (continued)
10. Self-Insurance Program (continued)
Changes in the balance of estimated 111surance claims payable for the fiscal year ended
September 30, 2009 is as follows:
Balance
October I,
2009
New Claims
and Changes
in Estimates
Claim
Payments
Balance
September 30,
2009
Fiscal year ending:
2009
$ 2,094.000 $15,479,390 $(15.452,390) $ 2,121,000
II. Claims and Contingencies
Litigation
The Sheriff is involved in various claims and legal actions arising in the ordinary course of
operations. In the opinion of management. the ultimate disposition of these matters will not have
a material adverse effect on the Sheril1~
Federal and State Grants
Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these
grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the
opinion of managemcnt. disallowcd costs, if any, would be immaterial to the financial position of
the Sheri ff.
()l}OX-IO!l1140
27
Combining Financial Information
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Required Supplementary Information
Collier County, Florida
Sheriff
Schedule of Funding Progress
for the Retiree Health Plan
Actuarial
Accrued UAAL as a
Actuarial Actua rial Liability (AAL)- Percentage of
Valuation Value of Projected Unfunded Funded Covered Covered
Date Assets Unit Credit AAL Ratio Payroll Payroll
1011 /2008 $ $ 9,354,088 $ 9.354,088 O.O~,~ $ 128,182,544 7.3%
1011 /2009 $ $ 14.171,709 $ 14.171,709 0.0% $ 123,296.676 11.5%
0908-1081140
30
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Ernst & Young LLP
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Report ofIndependent Certified Public Accountants on Internal Control
Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Special-Purpose Financial Statements
Performed in Accordance With Government Auditing Standards
Honorable Kevin Rambosk, Sheriff
Collier County. Florida
We have audited the special-purpose financial statements of each major fund and the aggregate
remaining fund information of the Collier County, Florida Sheriff (the Sheriff) as of and for the
year ended September 30, 2009, and have issued our report thereon dated December 11, 2009.
which describes that such special-purpose financial statements have been prepared for the
purpose of complying with Section 218.39, Florida Statutes, and Chapter 10.577(3). Rules olthe
Auditor Generalji)f' Local Governmental Entity Audits. We conductcd our audit in accordance
with auditing standards generally accepted in the United Statcs and the standards applicable to
financial audits contained in Government Auditing Standards. issued by the Comptroller General
of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Sheriff s internal control over financial
reporting as a basis for designing our auditing procedurcs for the purpose of expressing our
opinions on the special-purpose financial statements, but not for the purpose of expressing an
opinion on the effectivcness of the Sheriff's internal control over financial reporting.
Accordingly, we do not exprcss an opinion on the effectiveness of the Sheriffs internal control
over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or cmployees. in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency. or combination of deficiencies. in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statcmcnts will not be prevented,
or dctccted and corrected on a timely basis.
Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencics or material weaknesses. We
did not identify any dcficiencies in intemal control over financial reporting that we consider to
bc material weaknesses, as defined above.
O')()R-10RlI40
31
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriffs special-purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions oflaws, regulations. contracts and grant agreements. noncompliance with which could
have a direct and material effect on the determination of special-purpose financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not cxpress 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 Standardl'.
We noted certain matters that we reported to management of the SherifT in a separate letter dated
December 11,2009.
This report is intended solely for the information and use of the Sherift~ management, others
within the entity, the Board ofCounly Commissioners of Collier County. Florida and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
~M<d of MLLP
December 11, 2009
(ll)OR-I081140
32
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Report on Agreed-Upon Procedures Applied to Investigative Funds
Honorable Kevin Rambosk, Sherif I
Collier County, Florida
We have performed the procedures enumerated below, which were agreed to by management of
the Collier County, Florida, Sheriff (the Sheriff), solely to assist you in evaluating the procedures
and policies as defined by the Sheriff over its investigative funds for the year ended
September 30.2009. The Sheriffs management is responsible for the Sheriffs compliance with
those procedures and policies. This agreed-upon procedures engagement was conducted in
accordance with attestation standards established by the American Institute of Certified Public
Accountants. The sufficiency of these procedures is solely the responsibility of the party
specified in this report. Consequently, we makc no representation regarding the sufficiency of
the procedures described below either for the purpose for which this report has been requested or
for any other purpose.
The procedures we performed and our findings are summarized as follows:
. We randomly selected 25 investigative fund disbursements during the fiscal year ended
September 30,2009 (the population sampled from included transactions from October 1,
2008 through July 14, 2(09) and performed the following procedures with respect to the
Sheriffs policies and procedures over investigative funds.
. We obtained the "Disbursement for Investigation" form noting that the form was properly
completed and authorized by appropriate personnel. We noted one instance where the
approver ("Lieutenant/Supervisor") signature was not included on the form. We did note
that the "Disbursement for Investigation" form was properly reviewed and approved by
the cash management accountant and that the subsequent "Purchase of
Evidence/Information V ouchcr" lorm was reviewed and approved by the department
captain. No other exceptions were noted.
. We obtained the "Purchase of Evidence/Information Voucher" noting that the form was
properly completed to reflect the expenses incurred within the investigation procedures,
that the investigative expenditures were properly supported, and that the use of funds was
for authorized purposes. No exceptions were noted.
0908-1081140
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. We noted that the un-used funds returned, if applicable, were properly deposited per
review of the corresponding deposit and bank statement detail and notcd that the amount
deposited agreed to the amount returned per the "Rcceipt for Funds Received" form
detail. We noted one instance in which thc "Receipt for Funds Received" form showcd
$1,000 of unused investigative funds wcrc returned; however. only $980 was deposited
into the bank account. No other exceptions were noted.
We were not engaged to and did not conduct an examination, the objective of which would be
the expression of an opinion on compliance. Accordingly. wc do not express such an opinion.
Had we performed additional procedures, other matters might have come to our attention that
would have been reported to you.
This report is intended solely for the information and use of the management of the Sheriff, and
is not intended to be and should not be used by anyone other than this specified party.
~ of MLLP
December 11, 2009
0908.)081140
34
Ernst & Young LLP
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Management Letter
Honorable Kevin Rambosk, Sherin'
Collier County, Florida
We have audited the special-purpose financial statements of each major fUnd and the aggregate
remaining fund information of the Collier County, Florida Sheriff (the Sherill) as of and for the
year ended September 30, 2009. and have issued our report thereon dated December 11, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local governmental audits performed in the State of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated December II, 2009 on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Standards. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions lor improvement in accounting procedures and controls.
Current Year Findings and Recommendations
None reported.
Prior Year Findings and Recommendations
During the course of our audit we noted that appropriate action had been taken upon certain
recommendations and suggested accounting procedures outlined in the prior year's Management
Letter. Those comments have not been repeated. Prior year comments that were not implemented
or were only partially implemented in the current year have been repeated below:
2008-/ Cash Receipts Process
Ohservalion
As part of the cash receipts process, funds received for deposit into the operating account arc
forwarded to the fiscal clerk (or an alternate/back up clerk) responsible for receipt and bank
deposit preparation. The fiscal clerk enters the receipts into the cash management module of
090l;-1Ol\11.1O
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general ledger system and generates a ReceiptfiJr Funds Received form for each individual cash
receipt. A Cash Receipts by Method report is generated to indicate the total of the cash receipts
for preparation of the bank deposit. Bank deposits are typically prepared by the fiscal clerk but
can be prepared also by the cash supervisor or the manager. Once the deposits are prepared, they
are secured in a safe until the courier arrives to take the deposit to the bank. The cash clerk and
the other individuals mentioned above all have access to the safe. Typically the cash clerk
accesses the safe to retrieve the deposit for the courier. On rare occasions. when the courier is not
available, or if there is a large deposit late in the day, either the cash supervisor, the manager, or
finance director can make deposits at the bank.
At month end, the Cash Receipt Summary Report is generated trom the system which provides a
query of all cash reccipts entered by date to be used in the bank reconciliation process. All cash
receipts posted to the general ledger for the month are reviewed against the corresponding bank
statement detail by the budget manager as part of the bank reconciliation process to ensure
completeness of the funds received.
We were informed about an incident that occurred during fiscal year 2009 whereby an
immaterial amount of cash that was received and entered for deposit was allegedly
misappropriated as it was not deposited according to the bank's records. This was identified
through the month end bank reconciliation process. Additionally, we were informed about a
similar occurrence whereby a similar amount of cash was allegedly misappropriated from the
Sheriffs investigative funds around the same time period. Investigate funds are also secured in
the safe and controls are in place surrounding the disbursing and receiving of the cash for
investigative purposes. The individuals with access to the investigative cash in order to distribute
funds to deputies and replenish the funds includc the same individuals with access to the safe as
described above.
Recommendation
We recommend that the Sheriff review its current process and determine if duties can be further
segregated surrounding the cash receipts process and access limited further, as appropriate, with
respect to cash bank dcposits and investigative funds.
The basic idea underlying segregation of incompatible dutics is that no employee or group
should be in a position both to perpetrate and to conceal errors or fraud in the normal course of
their duties. In general, the principal incompatible duties to be segregatcd are:
. Custody of assets,
. Authorization or approval of related transactions affecting those assets, and
. Recording or reporting of related transactions.
Ol)OX-IOIl1140
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An essential feature of segregation of incompatible duties/responsibilities within an organization
is that no one employee or group of employees has exelusive control over any transaction or
group of transactions. In addition, a control ovcr thc processing of a transaction should not be
performed by the same individual who is responsible lor recording or reporting the transaction.
The fiscal clerk, or other individuals as noted above, maintains custody of the cash receipts
(handles receipts of currency, lists checks and prepares bank deposits) and also records receipts
in the general ledger. Although mitigating controls to detect potential improprieties, such as the
bank reconciliation process being performed by an independent individual, are operating
effectively, it would be ideal to implement prevention controls by segregating the duties of
recording in the general ledger and custody of the cash receipts as well as restricting access to
cash deposits and investigative funds to only necessary individuals. If it is not practical to
implement all such measures based on staff resource constraints, we recommend that the Sheri ff
consider implementing additional monitoring controls over the process such as having someone
independent of the tasks above 1) review the bank deposit slip for completeness against the
general ledger cash receipts report and 2) after the deposit is made, verify that the total agrees to
the bank deposit receipt or on, line confirmation on a daily basis. This should be evidenced by a
signature or other sign off on the documents.
Management's Original Re,\ponse
The entire cash receipts process is being reviewed and documented in detail. Controls will be
strengthencd where possible given staffing limitations.
Current Year Update
We understand that certain improvements have been made with respect to the cash receipts
process; however, wc recommend that management consider whether additional controls can be
implemented in this area. During fiscal year 2009, we noted one instance in our sample testcd
with respect to investigative fund transactions whereby $20 was missing and could not be
accounted lor.
Management's Current Response
Additional controls have been implemented during the year. We have restricted access to cash
deposits and investigative funds to only necessary individuals through the use of locked bank
bags. A log of Finance members accessing the safe is being maintained and monitored.
Management believes that the controls in place are reasonable and appropriate given staffing
constraints.
0908-1081140
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Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit diselosed no violations of laws, regulations, or contractual provisions or
abuse. no improper or illegal expenditures, and no control deficiencies that are not significant
deficiencies other than the internal control recommendations included above.
The Sheriff was established by the Constitution of the State of Florida, Article VIII, Section l(d).
This management letter is intended solely lor the information and use of the Sheriff,
management, the Board of County Commissioners of Collier County, Florida. and the Auditor
General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
~of MLLP
December 11. 2009
()908-1081140
38
11111'
I
S I' I.: C I A L - P Ii R I' () S E FIN A N C I A I. S I A I E MEN I S
AND OIlIER Rl:PORIS
Collier County, Florida
Supervisor of Elcctions
Year Ended September 30. 2009
With Report of Indepcndent Certified Public Accountants
-I' I
i!J ERNST & YOUNG
Collier County, Florida
Supervisor of Elections
Special-Purpose Financial Statements and Other Reports
Year Ended September 30, 2009
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose financial Statements
Balance Sheet.................................................................................................................... ............. ..3
Statement of Revenues. Expenditures. and Changes in Fund Balance ............................................4
Statement of Revenues, Expenditures. and Changes in Fund Balance - Budget and Actual -
General Fund.................................................................................................................................5
Notes to financial Statements......... ...... ...... ........ ...... ................ .... ...... ...... ...... ........ ........ ...... ....... ....6
Other Reports
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of the
Special-Purpose Financial Statements Performed in Accordance With Government
Auditing Standards..... ........ ...... .... ....... ...... ........ ...... .......... .... ............ ...... ........ ...... ........ ...... ...... ..16
Management Letter ........................................................................................................................18
Of)11-11I:U~,1 t
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Report of Independent Certified Public Accountants
The Honorable Jennifer 1. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the accompanying special-purpose financial statements of each major fund of
thc Collier County, Florida Supervisor of Elections (the Supervisor of Elections), as of and for
the year ended September 30. 2009 as listed in the table of contents. These financial statements
are the responsibility of thc Supcrvisor of Elections' management. Our responsibility is to
express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Guvernment Auditing
Standardl'. issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. Wc were not engaged to perform an audit of the
Supervisor of Elections' internal control over financial rcporting. Our audit included
consideration of intcrnal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Supervisor of Elections' internal control over financial
reporting. Accordingly. we express no such opinion. An audit also includes examining, on a test
basis. evidence supporting the amounts and disclosures in the special-purpose financial
statements. assessing the accounting principles used and significant estimates made by
management and evaluating the overall special-purpose linancial statement presentation. We
believe that our audit provides a reasonablc basis f(w our opinions.
As discusscd in Note L the accompanying special-purpose financial statements referred to above
were prepared for thc purposc of complying with Section 218.39. Flurida Statutes, and
Chapter 10.577(3), Rules of the Auditor General fiJr Local Governmental Fntity Audits. These
special-purpose financial statcments are not intended to bc a complete prescntation of the
Supervisor of Elections' financial position and its changes in financial position, where
applicable, thereof, for the year then ended in conformity with accounting principles generally
accepted in the United States. Additionally. the special-purpose statcments present only the
Supervisor of Elections and do not purport to, and do not, present fairly the financial position of
Collier County, Florida. as of Scptember 30, 2009, and the changes in its financial position.
where applicable. for the year thcn cnded, in conformity with accounting prineiples generally
accepted in the United States.
0912-11 L\84 1
..----
11111111111111111111111111,,"'" i!I ERNST & YOUNG
In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the funds of the Supervisor of Elections as of
September 30, 2009, and the changes in financial position thereof and the budgetary comparison
for the general fund for the year then cndcd in conformity with accounting principles generally
accepted in the United States.
In accordance with Government Auditing Standards, we have also issued our report dated
December 12. 2009, on our consideration of the Supervisor of Elections' internal control over
financial reporting and on our tests of its compliance with certain provisions of laws. regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliancc. That report is an integral part of an audit performed in accordance with Government
Auditing Standardv and should be considered in assessing the results of our audit.
This report is intended solely for the information and use of the Supervisor of Elections,
management. the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the state of Florida. and is not intended to be and should not be used by anyone other
than these specified parties.
~yhLLP
December 12, 2009
Ol)12-1113S4!
2
Collier County, Florida
Supervisor of Elections
Balance Sheet
September 30, 2009
Grant
Special
General Revenue Total
Fund Fund 2009
Assets
Cash and cash equivalents $ 212.770 $ 150.274 $ 363.044
Due from other funds 142 142
Total assets $ 212,770 $ 150,416 $ 363,186
Liabilities and fund balance
Liabilities:
Accounts payable $ 9,755 $ $ 9,755
Accrued liabilities 43,611 43,611
Due to Collier County, Florida
Board of County Commissioners 159,262 159.262
Due to other funds 142 142
Deferrcd rcvcnue 112,025 112.025
Total liabilities 212.770 112.025 324,795
Fund balance 38,391 38.391
Total liabilities and lund balance $ 212.770 $ 150.416 $ 363.186
S'ee accompanying notes.
()l)]2_1 I 13841
3
Collier County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures,
and Changes in Fund Balance
For thc year ended September 30. 2009
Grant
Special
General Revenue Total
Fund Fund 2009
Revenues:
Intergovernmental $ $ 31 ,489 $ 31,489
Interest 1,143 1.143
Total revenues 32,632 32,632
Expenditures:
General government:
Personal services 1.885,267 1.885,267
Operating expenditures 1.053,264 36.209 1.089,473
Capital outlay 114,869 114,869
Total expenditures 3,053,400 36,209 3,089.609
Excess of expenditures over revenues (3,053,400) (3,577) (3,056,977)
Other financing sources (uses):
Transfers in:
General Fund 15.580 15,580
Collier County, Florida Board of County
Commissioners appropriations 3.241.350 3,241.350
Transfers out:
Special Revenue Fund ( 15,580) ( 15,580)
Collier County Clcrk of Circuit Courts (37,000) (37,000)
Distribution or excess appropriations-
Collier County, Florida Board of County
Commissioners (135,370) (135,370)
Total other financing sources 3,053.400 15,580 3,068.980
Excess of revenues and other financing sources
over expenditures 12,003 12,003
Fund balance - October 1. 2008 26,388 26.388
Fund balance - September 30. 2009 $ $ 38,391 $ 38,391
See accompanying notes.
(l'JIl.llL\841 4
Collier County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - General Fund
For the Year Ended September 30, 2009
Variance
With Final
Budget
Budget Postitive
Original Final Actual (Negative)
Revenues $ 25,000 $ 25,000 $ - $ (25.000)
Expenditures:
General govemment:
Personal services 1,801,900 1.978.253 1,885,267 92,986
Operating 1,389,600 1.107,980 1.053,264 54.716
Capital outlay 52,500 127.537 114,869 12,668
Total expenditures 3,244,000 3,213,770 3,053,400 160,3 70
Excess of expenditures over revenues (3.2 I 9.000) (3,188,770) (3.053,400) 135,370
Other financing sources (uses):
Operating transfers in:
Collier County. Florida Board
of County Commissioners
appropriations 3,219.000 3,241,350 3,241,350
Transfers out:
Special Revenue Fund (15,580) (15,580)
Collier County Clerk of
Circuit Courts (37.000) (37,000)
Distribution of excess appropriations -
Collier County, Florida Board of
County Commissioners (135,370) (135.370)
Total other financing sources 3.219.000 3,188,770 3,053,400 (135.370)
Excess of rcvenues and other
financing sources over expenditures
Fund balance - October I. 2008
Fund balance - September 30, 2009 $ - $ - $ - $
See accompanying notes.
(N12-11 13ll4!
5
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements
September 30. 2009
1. Summary of Significant Accounting Policies and Practices
Reporting Entity
The Collier County. Florida Supervisor of Elections (Supervisor of Elections) is an elected
constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to
Chapter 129, Florida Statutes, the Supervisor of Elections' budget is submitted to the Collier
County, Florida Board of County Commissioners (Board) for approval.
The financial statements presented include the general fund and grant special revenue fund of the
Supervisor of Elections' office. The accompanying financial statements were prepared for the
purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules olthe
Auditor Generalfiir Local Governmental Entity Audits.
Section 10.556(5). Rules of'the Auditor GeneralfiJr Local Governmental Entity Audits, requires
the Collier County. Florida Supervisor of Elections financial statements to only present fund
financial statements. Accordingly, due to the omission of government-wide financial statements
and related disclosures including a management's discussion and analysis. these financial
statements do not constitute a complete presentation of thc financial position 01" the Collier
County, Florida Supervisor of Elections as 01" September 30, 2009, and the changes in its
financial position for the year then ended, in conformity with Governmcntal Accounting
Standards Board (GASB) Statement No. 34, Bosic Financial Statements - and Management's
Discussion and Analysis -. fiir State and Local Governments, but otherwise constitute financial
statements prepared in conformity with accounting principles generally accepted in the United
States of America.
As a result of the budgetary oversight by the Board and financial dependency on the Board, the
financial activities of the Supervisor of Elections are included in the Collier County, Florida
Comprehensive Annual Financial Report.
Transfers are providcd by appropriations from the Board pursuant to law. Estimated receipts and
budgeted general fund balances must equal appropriations. The Supervisor of Elections is
required to re1und to the Board all excess appropriations annually; there lore. no unappropriated
general fund balance is carried forward.
0912-11L1!l41
6
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements (continued)
1. Summary of Significant Accounting Policies and Practices (continued)
Measurement Focus, Basis of Accounting, and Basis of Presentation
Fund financial statements report detailed information about the Supervisor of Elections. The
focus of governmental fund financial statements is on a major fUnd rather than reporting by type.
Each major fund is rcported in a separate column.
Governmental Funds
Governmental funds arc accountcd for using the flow of current financial resources measurement
focus. Only current assets and current liabilities. generally, are included on the balance sheet.
Operating statements for this fund present increases (i.e., revenues and other financing sources)
and decreases (i.e., expenditures and othcr financing uses) in nct current assets.
The Supervisor of Elections has the following major governmental funds:
General Fund The general fund is used to account for the general operations of the Supervisor
of Elections, and includes all revenues and expcnditures which are not accounted for in another
fund.
Grant Special Revenue Fund The grants fund is used to account for the activities of voter
education and poll worker training grants from the State of Florida.
The modified accrual basis of accounting is used by governmcntal funds. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become measurable and available to finance liabilities of the current fiscal year). For this
purpose. the Supervisor of Elections considcrs rcvcnues to be available if they are collected
within 60 days after year cnd. Expenditures are recorded when the related fund liability is
incurred. except for compensated absences, which are recognizcd as cxpenditures to the extent
they have matured.
The appropriations from the Board are the primary source of tunds considered to be susceptible
to accruaL
0\)12-11 \,"'841
7
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements (continued)
1. Summary of Significant Accounting Policies Practices (continued)
Intergovernmental revenues are recognized when eligibility requirements are met and related
amounts are available from the grantor.
Interest income and other revenues are rccognized as they are earned and become measurable
and available to pay liabilities ofthc current period.
Florida Statutes provide that the amount by which revenues and transfers exceed annual
expenditures be remitted to the Board immediately following the fiscal year for which the
funding was provided or following the fiscal year during which other revenues were recognized.
The amount of this distribution is recorded as a liability and as an other financing use in the
accompanying financial statements.
Capital outlays expended in general fund operations are capitalized in the basic financial
statements of Collier County, Florida, rather than in the governmental funds of the Supervisor of
Elections.
Cash Equivalents
Cash equivalcnts are defined as highly liquid investments with original matUrIties of three
months or less. Cash equivalents in the Florida PRIME (formerly, the Local Government Surplus
FundsTrust Fund) arc administered by the State Board of Administration (SBA). a 2a-7 like
investment pool. Sharcs of the investment pool are based on the pool's share pricc, which
approximates fair value. At Septcmber 30,2009, the Supervisor of Elections had no amounts on
deposit in thc SBA.
Compensated Absences
All full-time employees of thc Supervisor of Elections are allowed to accumulate an unlimited
number of hours of unused sick timc and up to 440 hours of unused vacation leave. Effective
October 1, 2007. thc vacation leave limit was increased to 480 hours. Upon termination,
employees receive 100% of allowable accumulated vacation hours and a percentage of unuscd
sick leave, depending on years of service. Vacation time and sick leave are included in operating
O'J11-11IJK41
8
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements (continued)
1. Summary of Significant Accounting Policies Practices (continued)
costs when the payments are made to employees. The Supervisor of Elections does not, nor is
she legally required to accumulate financial resources for these unmatured obligations.
Accordingly, the liability for compensated absences is not reported in the general fund. but rather
is reported in the basic financial statements of Collier County, Florida.
Use of Estimates
The preparation of the financial statements requires management of the Supervisor of Elections
to make a number of estimates and assumptions relating to the reporting of assets and liabilities
and the disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenditures during the period. Actual results could differ
from those estimates.
2. Budgetary Process
Florida Slat utes govern the preparation, adoption and administration of the Supervisor of
Elections' annual budget. The Supervisor of Elections submits a budget for the general fund to
the Board of County Commissioners for approval. The budget is prepared on a basis consistent
with accounting principles generally accepted in the United States of America. The annual
budget serves as the legal authorization for expenditures. Any subsequent amendments to the
Supervisor's total budget must be approved by the Board. Expenditures may not legally exceed
appropriations at the fund level. Appropriations lapse at year end. Budgetary control is
maintained at the dcpartmcntal major object expenditurc level. Budgetary changes within major
object expenditure categories are made at the diseretion of thc Supervisor of Elections.
The Supervisor does not budget tor the grant spccial revenue fund as it is funded by State grants
and is governed by those documents.
The original budget is the first complete appropriated budget. The linal budget is the original
budget adjusted by all reserves, transfers. allocations, supplemental appropriations and other
legally authorized changes applicable to thc fiscal year, whenever legally authorized.
(WI1-11\3lHI
9
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30, 2009, the carrymg value of the Supervisor of Elections' cash and cash
equivalents was as follows:
Type
Carrying
Value
Credit
Rating
Cash on hand
Demand deposits
Total cash and cash equivalents
$ 200
362,844
$ 363,044
N/A
N/A
Custodial Credit Ri~k
At September 30, 2009, the Supervisor of Elections' deposits were entirely covered by federal
depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280,
Florida Statutes. Under this chapter. in the event of default by a participating financial institution
(a qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for the loss.
Credit Risk
The Supervisor of Elections' policy is to follow the guidancc in Section 219.075, Florida
Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections
219.075 and 218.415, Florida Statutes. authorize the Supervisor of Elcctions to invest in thc
SBA or any intergovernmental investmcnt pool authorized pursuant to thc Florida Interlocal
Cooperation Act; Securities and Exchange Commission registered money market funds with the
highest credit quality rating from a nationally recognized rating agency; direct obligations of the
United States Trcasury; fcderal agencies and instrumentalities or interest-bearing timc deposits
or savings accounts in banks organized undcr the laws of the United Statcs and doing business
and situated in the State of Florida, savings and loan associations which are under state
supervision, or in fcdcral savings and loan associations located in the State of Florida and
organized under federal law and federal supervision, provided that any such deposits are secured
by collateral as may be prescribed by law.
()\)12-1113841
10
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
Interest Rate Risk
The Supervisor of Elections has no specific investment policy regarding interest rate risk.
4. Capital Assets
Capital assets used by the Supervisor of Elections are reported in the basic financial statements
of Collier County, Florida rather than in the governmental funds of the Supervisor of Elections.
Upon acquisition, such assets are recorded as expenditures in the general fund of the Supervisor
of Elections. and are capitalized at cost in the basic financial statements of the Board. 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 value on the date received. The
Supervisor of Elections maintains custodial responsibility for the capital assets used by the
office. No depreciation expense has been providcd on capital assets in these financial statements.
However, depreciation expense is recorded in the basic financial statements of the Board.
5. Long-Term Liabilities
The following is summary of changes in long-term liabilities which are reported in the basic
financial statements of Collier County, Florida:
September 30,
2008 Increase
September 30,
Retirement 2009
Accrued compensated absences
$158.940
$83.636
$64,047
$178,529
Of these liabilities, approximately $60,000 is expccted to bc paid during the fiscal year ending
September 30, 2009. These long-term liabilities are not reported in the financial statements of the
Supervisor of Elections since they have not matured.
()912-11 L~841
11
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements (continued)
6. Employee Retirement Plans
Substantially all full-time employees of the Supervisor of Elections filling regularly established
positions are eligible to participate in the State of Florida Retirement System (System), a
cost-sharing multiple-employer defined benefit plan administered by the State of Florida,
Division of Retirement. The System is a defined benefit plan for all state, and participating
county, district school board. community college and university employees (Pension Plan). The
System also offers eligible employees participation in an alternative defined contribution plan
(Investment Plan). The Supervisor of Elections participates in the Elected State Officers' Class.
The plan is administered by the State of Florida. Contribution rates are established statewide for
all participating governmental units. Accordingly, the actuarial information and related
disclosures attributable to the Supervisor of Elections' employees are not determinable.
Employees participating in the Pension Plan who retire at or after age 62 with 6 years of credited
service, or with 30 years of service regardless of age, are entitled to a retirement benefit, payable
monthly for life, equal to 1.6% for regular employees, 2% for senior management and 3% for
county elected officials for each year of credited service times the final average compensation.
Final average compensation is the employee's average of the five highest fiscal years of salary
earned during credited service. Vested employees may retire before age 62 and receive benefits
that are reduced 5% for each year prior to normal retirement age. Employees participating in the
Investment Plan are vested after onc year of service with no age requirement. The System also
provides death and disability benefits. Benefits arc established by Chapter 121, Florida Statutes.
and Chapter 22B, Florida Administralil'e Code.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, etIective July I, 1998. Under this program, the cmployee may retire and have their
benefits accumulate in the Florida Rctirement System Trust Fund. earning interest. while
continuing to work for a system employer. The participation in the program does not change
conditions of employment. When the DROP period cnds. maximum of 60 months, employment
must be terminated. At the time of termination of employment, the employee will rcceive
payment of the accumulated DROP benefits. and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-of-living increases).
()lJl2_111384\
12
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements (continued)
6. Employee Retirement Plans (continued)
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to the Division of Retirement Research Education and Policy Section 1317
Winewood Boulevard, Building 8, Tallahassee, Florida 32399, or by calling (850) 488-5706, or
accessing their Internet site at www.dms.MvFlorida.com.
The Supervisor of Elections is required to contribute an actuarially determined rate. The current
rate is 16.53% for county elected officials. 13.12% for senior management, 9.85% for regular
employees and 10.91% for DROP employees. The contribution requirements of the Supervisor
of Elections are established and may be amended by the State of Florida. The Supervisor of
Elections' contributions to the plan for the years ended September 30. 2009, 2008, and 2007.
were $130,784, $127,461, and $117,905, respectively, equal to the required contributions for
each year.
7. Other PostempIoyment HeaIthcare Benefits (()PEB) Plan
Plan Description. Thc Supervisor of Elections participates in a group health care plan that
covers eligible retirees, and their dependents, of the Board of County Commissioners and all
Constitutional Officers with the exception of the Sheriff. Thc Board administers the plan and
establishes the benefits. The healthcare plan does not issue a stand-alone financial report,
however additional actuarial information regarding the plan as a whole is disclosed in the Notes
to the Financial statements of Collier County.
Under Florida Statutes. retirees are eligible to participate in thc active medical plan by paying the
active rate if they have attained age 62 and have 6 years of service or have at least 30 years of
service. Employees eligible for a reduced bene lit under the Florida Retirement System prior to
age 62 are also eligible to participatc in the medical plan. The Supcrvisor of Elections provides
no subsidy to the retiree, or their dependents, for group health care.
Funding Policy. The contribution requirements of the plan members and the employers are
established and may be amended by the County. The plans are financed by thc participating
agencies on a pay as you go basis through the County's self insurance internal service fund.
Participating agencies contribute an additional amount per each active employee to fund retiree
hcalth care. The Supervisor's agency had a sharc of the County's net OPEB obligation of$5,439
as of September 30. 2009.
l)911-111.,X41
13
Collier County, Florida
Supervisor of Elections
Notes to Financial Statements (continued)
7. Other PostempIoyment Healthcare Benefits (OPE B) Plan (continued)
The annual other postemployment benefit cost is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with
GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis,
is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a
period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in
October 2008. The notes to the financial statements of the County disclose additional
information regarding the other post employment benefit plan as a whole.
8. Related-Party Transactions
For the ycar ended September 30, 2009, the Board provided funding for the Supervisor of
Elections that amounted to $3.241,350. At September 30. 2009, the Supervisor of Elections had a
payable due to the Board of $159,262 comprised as follows:
Distribution of excess appropriations
Distribution of interest earnings
Amounts due for various services
Total due to Board of County Commissioners
$ 135,370
4,089
19,803
$ 159,262
9. Risk Management
Collier County. Florida (the County) is exposed to various risks ofloss including, but not limited
to, gcneral liability, health and lifc, property and casualty, auto and physical damage and
workers' compensation. The County is substantially sell~insured and accounts for and linances
its risk of uninsured losses through an internal service fund. All liabilities associated with these
self-insured risks are reported in the basic financial statements of the County. During the year
ended September 30, 2009, the Supervisor was charged $178,209 by the County for participation
in the risk management program.
The County provides coveragc for up to $500,000 per claim for workers' compensation, and has
purchased outside excess coverage for up to $25 million for employee liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200.000 per elaim for auto and other liability claims, and has purchased outside excess
coverage for up to $2 million per claim. Negligence claims in excess of the statutory limits set in
0912-1\13841
14
Collier County, Florida
Supervisor of Elections
Notes to Financial Statemenfs (continued)
9. Risk Management (continued)
Section 768.20, Florida Statutes, which provide for limited sovereign immunity of
$100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature.
The County also provides coverage for up to $200,000 per claim for public oflicial's errors and
omissions claims and has purchased outside excess coverage for up to $5 million per claim.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third party carriers in any of the last three years.
The County is also self-insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar year per covered
member and purchases excess coveragc with a maximum lifetime limit of $2.000,000. As
required by Section 112.081, Florida Slatules. rctirees and their eligible dependents are provided
the same health care coverage as is offered to acli ve employees at the same premium cost (borne
by the retiree) applicable to active employees. An actuarial valuation is performed each year to
estimate the amounts needed to pay prior and futurc claims and to establish reserves.
10. Contingencies
Grant funds received by the Supervisor of Elections are subject to audit by grantor agencies.
Audits of these grants may result in disallowed costs, which may constitute a liability of the
office of the Supervisor of Elcctions. In the opinion of management, disallowed costs, if any.
would be immaterial to the financial position of the Supervisor of Elections.
(1911-111J841
15
Other Reports
0912-1113841
...---
111111111111111111111111111"'"'' i!I ERNST & YOUNG
Ernst & Young LLP
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,VW"N.C'VJUITI
Report ofIndependent Certified Public Accountants on Internal Control
Over Financial Reporting and on Compliance and Other Matters Based
on an Audit of the Special-Purpose Financial Statements Performed in
Accordance With Government Auditing Standards
The Honorable Jennifer J. Edwards, Supervisor of Elections
Collier County. Florida
We have audited the special-purpose financial statements of each major fund of the Collier
County, Florida Supervisor of Elections (the Supervisor of Elections) as of and for the year
ended Septembcr 30, 2009, and have issued our report thercon dated December] 2, 2009, which
describes that such special-purpose financial statements have been prepared for the purpose of
complying with Section 218.39. Florida Statutes, and Chapter 10.557(3), Rules oj'the Auditor
General fiJr Local Governmental Enfity Audits. We conducted our audit in accordance with
auditing standards generally aeeepted in the United States and the standards applicable to
financial audits contained in Government Auditing Standardl', issued by the Comptroller General
of the United States.
Internal control over financial reporting
In planning and performing our audit, we considered the Supervisor of Elections' internal control
over financial reporting as a basis for designing our auditing procedures 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 Supervisor of Elections' internal control over financial
reporting. Accordingly. we do not express an opinion on the effectiveness of the Supervisor of
Elections' internal control over financial reporting.
A deficiency in infernal control exists when the design or operation of a control does not allow
management or employees. in the normal coursc of performing their assigned lunctions, to
prevent. or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies. in internal control, such that there is a reasonable
possibility that a matcrial misstatcment of the entity's financial statements will not be prevented.
or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting 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 deficiencies, significant deficiencies or material weaknesses. We
did not identify any deficiencies in internal control over financial reporting that we consider to
be material weaknesses, as defined above.
()')12-llj;X41
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Compliance and other matters
As part of obtaining reasonable assurance about whether the Supervisor of Elections' financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions oflaws, regulations. contracts and grant agreemcnts. noncompliance with which could
have a direct and material et1ect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objectivc of our audit and,
accordingly, wc 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 Auditinx
Standards.
This report is intended solely for the inlormation and use of the Supervisor of Elections,
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida, and is not intendcd to be and should not be used by anyone other
than these specified parties,
~y MLLP
December 12. 2009
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Management Letter
The Honorable Jennifer J. Edwards, Supervisor of Elections
Collier County, Florida
We have audited the special-purpose financial statements of each major fund of the Collier
County, Florida Supervisor of Elections (the Supervisor of Elections) as of and for the year
ended September 30. 2009, and have issued our report thereon dated December 12, 2009.
We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550, Rules oj'the Auditor General,
which govern the conduct of local governmental audits performed in the state of Florida and
require that certain items be addressed in this letter.
We have also issued our report dated December 12, 2009, on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Slandardl'. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Current Year Findings and Recommendations
There are no findings or recommendations to be reported as a result of our audit.
Prior Year Findings and Recommendations
There were no findings or recommendations made in the preceding annual financial audit.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public funds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws, rules, regulations or contractual
provisions or abuse, no improper or illegal expenditures, and no control deficiencies.
(1\)12-11 L~H41 18
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The Supervisor of Elections was established by the Constitution of the state of Florida,
Article VIII. Section 1 (d).
This management letter is intended solely lor the information and use of the Supervisor of
Elections, management, the Board of County Commissioners of Collier County, Florida, and the
Auditor General of the state of Florida. and is not intended to be and should not be used by
anyone other than these specified parties.
~M<-dy MLLP
December 12, 2009
0911-11\3841
19
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SI'LCIAL-PIIRI'OSI: FINANCIAL SIATI.MI:NIS
Collier County, Florida
Tax Collector
Years Ended September 30, 2009 and 2008
With Report of Independent Certified Public Accountants
Ernst & Young LLP
i!J ERNST & YOUNG
Collier County, Florida
Tax Collector
Special-Purpose Financial Statements
Years Ended September 30. 2009 and 2008
Contents
Report of Independent Certified Public Accountants ......................................................................1
Special-Purpose Financial Statements
Special-Purpose Balance Sheets - General Fund ............................................................................3
Special-Purpose Statements of Revenues, Expenditures, and Changes in Fund Balance-
General Fund................................................................................................................................ .4
Special-Purpose Statement of Revenues, Expenditures. and Changes in Fund Balance -
Budget and Actual- General Fund - Budgetary Basis ................................................................5
Special-Purposc Statcments of Fiduciary Assets and Liabilities - Agency Funds..........................6
Notes to Special-Purpose Financial Statements....... ...... ..................... ........ ...... ...............................7
Report of Independent Certified Public Accountants on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose
Financial Statements Performed in Accordance with Government Auditing Standards ............19
Management Letter.. ........ ...... ........ .... .......... ...... ...... ........ ...... .......... ...... .............. ............ ...... ...... ..21
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Report of Independent Certified Public Accountants
Honorable Larry H. Ray, Tax Collector
Collier County, Florida
We have audited the accompanying special-purpose financial statements of the general fund and
the aggregate remaining fund information of the Collier County, Florida Tax Collector (the Tax
Collector), as of and for the years ended September 30, 2009 and 2008, as listed in the table of
contents. These special-purpose financial statements are the responsibility of the Tax Collector's
management. Our responsibility is to express opinions on these special-purpose financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the special-purpose
financial statements are Cree of material misstatement. We werc not engaged to perform an audit
of the Tax Collector's internal control over financial reporting. Our audits included consideration
of internal control over financial reporting as a basis lor designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Tax Collector's internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining. on a test basis. evidence supporting
the amounts and disclosures in the special-purpose financial statements. assessing the accounting
principles used and significant estimates made by management. as well as evaluating the overall
special-purpose financial statement presentation. We believe that our audits provide a reasonable
basis for our opinions.
As discussed in Notc I. the accompanying special-purpose financial statements referred to above
were prepared for the purpose of complying with Section 218.39, Florida Statutes, and
Chapter 10.557(3), Rules of the Auditor General fiir Local Governmental Entity Audits. These
special-purpose financial statements are not intended to be a eompletc presentation of the Tax
Collector's linancial position and its changes in linancial position. where applicable. therefore.
for the years then ended, in conformity with accounting principles generally accepted in the
United States. Additionally. the special-purpose statements present only the Tax Collcctor and do
not purport to. and do not, present fairly thc linancial position of Collier County, Florida, as of
September 30, 2009 and 2008, and the changes in its financial position. where applicable, for thc
years then endcd. in conformity with accounting principles generally acccptcd in the
United States.
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In our opinion, the special-purpose financial statements referred to above present fairly, in all
material respects, the respective financial position of the general fund and the aggregate
remaining fund information of the Tax Collector as of September 30, 2009 and 2008, and the
respective changes in financial position, thereof~ and the budgetary comparison for the general
fund for the years then ended in conformity with accounting principles generally accepted in the
United States.
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 2009. on our consideration of thc Tax Collector's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing. and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standardv and should be considered in assessing the results of our audit.
This report is intendcd solely for the information and use of the Tax Collector, management. the
Board of County Commissioners of Collier County. Florida. and the Auditor General of the State
of Florida, and is not intended to bc and should not be used by anyone other than these specified
parties.
~of MLLP
December 10, 2009
O')l2-1 I 14:155
2
Collier County, Florida
Tax Collector
Special-Purpose Balance Sheets - General Fund
Assets
Cash and cash equivalents
Due from other funds
Prepaid rent
Security deposit
Total assets
Liabilities and fund balance
Liabilities:
Accounts payable
Due to Collier County, Florida Board of
County Commissioners
Due to other governmental agencies
Total liabilities
Fund balance
Total liabilities and fund balance
See accompanyinx notes.
0912-\114J55
September 30
2009 2008
$ 9,733,833
64.402
20.463
4,628
$ 9,823,326
$ 11,274,120
64,941
4,628
4,628
$ 11,348,317
$ 35,035 $ 25.213
8.645.361 10,083,315
1.142,930 1,239,789
9.823,326 11,348.317
$ 9,823,326 $ 11,348,317
3
Collier County, Florida
Tax Collector
Special-Purpose Statements of Revenues, Expenditures,
and Changes in Fund Balance - General Fund
Year Ended September 30
2009 2008
Revenues:
Commissions and fees
Miscellaneous
Total revenues
$ 20,753,850
482,413
21,236,263
$ 22,083,395
687,701
22,771,096
Expenditures:
General government:
Personal services
Operating
Capital outlay
Distribution of excess commissions and fees to other
governmental agencies
Total expenditures
Excess of revenues over expenditures
9.390,413
I. 988. 959
68.600
1.142,930
12.590.902
8.645.361
9.092.126
2,145.297
210.569
1,239,789
12.687.781
10.083,315
Other financing uses:
Distribution of excess commissions and
fees to Collier County, Florida Board of County
Commissioners
Total other financing uses
(8,645,361 )
(8,645,361 )
(10,083,315)
(10,083.315)
Excess of revenues over expenditures and other financing uses
Fund balance. bcginning of year
Fund balance. end of year $
- $
See accompanying notes.
0912-1114_,55
4
Collier County, Florida
Tax Collector
Special-Purpose Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual - General Fund
Year Ended September 30, 2009
Budget
Origiual Fiual
Actual
Variauce With
Final Budget
Positive
(Negative)
Revenues:
Commissions and fees
Miscellaneous
Total revenues
$ 21,154.825
465.000
21,619.825
$ 20,753,850
482.413
21.236,263
$20,753.850 $
482,413
21,236,263
Expenditures:
General government:
Personal services
Operating
Capital outlay
Total expend itures
9,886,501 9,390,413 9,390,413
2,445.916 1,988.959 1,988,959
59.078 68.600 68,600
12,391.495 11,447,972 11,447,972
9,228,330 9,788.291 9.788.291
Excess of revenues over expenditures
Other financing uses:
Distribution of excess commissions
and fees to Collier County, Florida
Board of County Commissioners
Distribution of excess commissions
and fees to other governmental
agencies
Total other financing uses
(8.305.497)
(8,645,361 )
(8,645,361)
(922,833 )
(9.228.330)
(1.142.930)
(9.788.291 )
( 1.142.930)
(9,788,291 )
Excess of revenues over expenditures
and other financing uses
Fund balance, beginning of year
Fund balance. end of year
$
- $
- $
- $
,\~ee accompanying notes.
(Jl)12-1114155
5
Collier County, Florida
Tax Collector
Special-Purpose Statements of Fiduciary Assets and Liabilities - Agency Funds
September 30
2009 2008
Assets
Cash and cash equivalents $ 6.525,291 $ 4.927,906
Accounts receivable 17,770 5.777
Total assets $ 6,543,061 $ 4,933,683
Liabilities
Due to other funds $ 64,402 $ 64,941
Due to Collier County. Florida Board of
County Commissioners 778,433 809,788
Due to other governmental agencies 4,206,340 2,594,639
Duc to individuals and businesses 1.493,886 1,464,3 15
Total liabilities $ 6.543,061 $ 4,933,683
See accompanying notes.
0912-111415')
6
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements
September 30, 2009
1. Summary of Significant Accounting Policies
Reporting Entity
The Collier County, Florida Tax Collector (Tax Collector) is an elected constitutional officer as
provided for by the Constitution of the State of Florida. Pursuant to Chapter 195.087, Florida
Statutes. the Tax Collector's budget is submitted to the Florida Department of Revenue for
approval, and a copy is forwarded to the Collier County, Florida Board of County
Commissioners (Board).
The special-purpose financial statements presented include the general fund and agency funds of
the Tax Collector's office. The accompanying special-purpose financial statements were
prepared for the purpose of complying with Section 218.39. Florida Statutes, and
Section 10.557(3), Rules of the Auditor Generalj;Jr Local Governmental Entity Audits.
Section 10.556(4), Rules ofthe Auditor Generalj;Jr Local Governmental Entity Audits. requires
the Collier County, Florida Tax Collector to only present fund financial statements. Accordingly,
due to the omission of government-wide linancial statements and related disclosures, including a
management's discussion and analysis. thesc special-purposc financial statements do not
constitute a complete presentation of the financial position of the Collier County, Florida Tax
Collector as of September 30. 2009 and 2008, and the changes in its financial position for the
years then ended, in conformity with Governmental Accounting Standards Board (GASB)
Statement No. 34. Basic Financial Stalements - and Management 's Discussion and Analysis -
f;Jr State and Local Governments, but otherwise constitute special-purpose tinancial statements
prepared in conformity with U.S. generally aeccptcd accounting principles (GAAP).
The tinancial activities of the Tax Collector. as a constitutional officer. are included In the
Collier County, Florida Comprehensivc Annual Financial Report.
Measurement Focus, Basis of Accounting, and Basis of Presentation
These special-purposc fund financial statements rcport dctailcd information about the Tax
Collector. The focus of governmental fund financial statements is on major funds rather than
rcporting lunds by type. Each major lund is reported in a separate eolumn.
O(nl-1114_~55
7
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Governmental Funds
Governmental funds are accounted for using the flow of current financial resources measurement
focus. Only current assets and current liabilities, generally. are included on the special-purpose
balance sheets. Operating statements for these funds present increases (i.e.. revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets. The Tax Collector's only governmental fund is the gencral fund. The general fund is used
to account lor the general operations of the Tax Collector and includes all transactions not
accounted for in another fund.
The modified accrual basis of accounting is uscd by govcrnmental funds. Under the modified
accrual basis of accounting. revenues are recognized when susceptible to accrual (i.c., when they
bccomc measurable and available to finance current liabilities of the fiscal year). For this
purpose, the Tax Collector considers revenues to be available if they are collected within 60 days
after the end of the current period. Expenditures are recorded when the related fund liability is
incurred, except for certain compensated absences. which are recognized as expenditures to the
extent they have matured.
Interest income and other revenue arc recognized as they are earned and become measurable and
available to pay liabilities of the current period.
Substantially all ofthc Tax Collector's rcvenue is rcceived from taxing authorities. These monies
are virtually unrestricted and are revocable only for failure to comply with prescribed
compliancc requircments. These resources are rellected as revenuc at the time of receipt; earlier
if the "susceptible to accrual" criteria are met.
Florida Statutes provide that the amount by which revenues cxcced annual expenditures be
remitted to each governmental agency or the Board immediately following the fiscal year for
which the funding was provided or following the fiscal year during which other revenuc was
recognized.
Capital outlays expended in the general fund operations are capitalized in the basic financial
statements of Collier County, Florida (the County) rather than in the governmental funds of the
Tax Collector.
()912-1114.~55
8
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Fiduciary Funds
Agency Funds - Fiduciary funds are used to account for assets held by the Tax Collector in a
trustec capacity or as an agent for individuals. private organizations. and other governments.
Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of
results of operations or havc a mcasuremcnt focus. Agency funds are accounted for using thc
accrual basis of accounting.
Refund of "Excess Fees"
Florida Statutes further provide that the excess of revenues over expenditures held by the Tax
Collector be distributed to cach govcrnmental agcncy or the Collier County Board of County
Commissioncrs in the samc proportion as the fecs paid by cach governmental agency bear to
total fee revenues. The amount of this distribution is recorded as a liability and as either an
expenditure or other financing use-transfer out, respectively. in thc accompanying
special-purpose financial statements.
Cash and Cash Equivalents
Cash and cash cquivalents are highly liquid invcstments with original maturities of three months
or less.
Compensated Absences
All full-time employees of the Tax Collector are allowed to accumulate an unlimited number of
hours of unused sick time and up to 240 hours of unused vacation leave. Upon termination,
employees receive 100% of allowable accumulatcd vacation hours and a percentage of unuscd
sick leave. depending on years of service. Vacation and sick leave paymcnts are included in
opcrating costs when the payments are made to the employees. The Tax Collector does not, nor
is he legally required to, accumulatc financial resources for these unmatured obligations.
Accordingly, the liability for compensated absences is not reported in thc gcncral fund. but rather
is reported in the basic financial statemcnts of Collier County, Florida.
0912-1114155
9
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
t. Summary of Significant Accounting Policies (continued)
Property Taxes
Property taxes in Collier County are levied by the Board and other taxing authorities. The
millage levies are determined on the basis of estimates of revenue needs and the total taxable
valuations within thc jurisdiction of the Board and other taxing authorities. No aggregate ad
valorem tax millage in excess of 10 mills on the dollar can be levied by the Board of County
Commissioners against property in the County as specified in Florida Statutes Section 200.071.
Each year the total taxable property valuation is established by the Collier County, Florida
Property Appraiser, and thc list of property assessments is submitted to the State Department of
Revenue for approval. Taxes, assessed as of December 1 of cach year, are due and payable on
November 1 of each year or as soon thereafter as the asscssment roll is opened for collection.
Pursuant to Florida law. all owners of property have the responsibility of ascertaining the amount
due and paying it before April 1 of the year following the year in which the tax was assessed.
Chapter 197, Florida Statutes, governs property tax collections as !ollows:
Current Taxes
All property taxes become due and payable on November 1, and are delinquent on April 1 of
the following year. Discounts are allowed for early payment of 4% in November; 3% in
December; 2% in January; and 1 % lor payment in February.
Unpaid Taxes - Sale of Tax Certificates
The Tax Collector advertises, as rcquircd by Florida Statutes, and sells tax certificates on all
real property for unpaid taxes. The land is struck ofT the tax roll to the purchaser of the tax
certificate. Certificates not sold are struck otTto the County. The Tax Collector must receive
payment before the certiticates arc delivercd. Any person owning land upon which a tax
certificate has been sold may rcdccm the tax certificate by paying the Tax Collector the face
amount of the tax ccrtilicate plus interest and other costs.
Tax Deeds
Two years after the purchase of a tax certificate the owner may file an application for tax
deed sale. The County. as a certificate owner, exercises similar procedures. Tax deeds are
issued to the highest bidder for the property which is sold at public auction. The Clerk of the
Circuit Court administers these salcs.
0<)12-1114155
10
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Use of Estimates
The preparation of these special-purpose financial statements requires management of the Tax
Collector to make a number of estimates and assumptions relating to the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures during the period.
Actual results could differ from those estimates.
2. Budgetary Process
Florida Statutes govern the preparation, adoption, and administration of the Tax Collector's
annual budget. The Tax Collector submits a budget for the general fund to the Florida
Department of Revenue for approval. A copy of the approved budget is provided to the Board of
County Commissioners. Any subsequent amendments to the Tax Collector's total budget must
be approved by the Florida Department of Revenue. The budget for the general fund is prepared
on a basis consistent with U.S. generally accepted accounting principles. The annual budget
serves as the legal authorization for expenditures. Expenditures may not legally exceed
appropriations at thc fund level. Appropriations lapse at year end. Budget control is maintained
at the departmental major object expcnditure level. Budgetary changes within major object
expenditure categories are madc at the discretion of the Tax Colleetor.
The original budget is the first complete appropriated budget. The final budget is the original
budget adjusted by all reserves, transfers. allocations, supplemental appropriations. and other
legally authorized changcs applicable to the fiscal ycar. whenever legally authorized.
There is a difference between the budgetary basis of accounting and GAAP in the treatment of
excess fee distributions to entities outside ofthc County's reporting entity. On a budgetary basis.
distributions of excess fees through this fund are reported as other linancing uscs. On a GAAP
basis, thesc distributions are rcported as expenditures because there is a reduction in the financial
resources of the County.
0912-1114355
11
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents
At September 30. 2009 and 2008. the carrying value of the Tax Collector's cash and cash
equivalents were as follows:
Type
2009
Carrying
Value
2008
Carrying
Value
Credit
Ratin~
Cash on hand
Demand deposits
Total cash and cash equivalents
$ 39,590
16,219.534
$ 16,259,124
$ 33.010
16,169,016
$ 16,202,026
N/A
N/A
Such amounts are reported as $9,733,833 and $6,525.291 for 2009 and $11,274,120 and
$4.927.906 for 2008 in the general and agency funds, respectively.
Custodial Credit Risk
At September 30.2009, the Tax Collector's deposits were entirely covered by federal depository
insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this Chapter, in thc event of dcfault by a participating financial institution (a
qualified public depository), all participating institutions are obligated to reimburse the
governmental entity for thc loss.
Interest Rate Risk
The Tax Collector has no specilic investment policy regarding interest rate risk.
Credit Risk
The Tax Collector's policy is to follow the guidance in Section 219.075, Florida Statutes,
regarding the deposit of funds received and the investment of surplus funds. Sections 219.075
and 218.415. Florida Statutes. authorize thc Tax Collector to invest in Florida PRIME (formerly
the Local Government Surplus Funds Trust) or any intergovernmcntal investment pool
authorized pursuant to the Florida Interlocal Coopcration Act; Securitics and Exchange
Commission registered money market funds with the highest credit quality rating from a
OlJ\2_\\14.i5'i
12
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
3. Cash and Cash Equivalents (continued)
nationally recognized rating agency; direct obligations of the United States Treasury; federal
agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks
organized under the laws of the United States and doing business and situated in the state of
Florida, savings and loan associations which are under state supervision, or in federal savings
and loan associations located in the state of Florida and organized under federal law and federal
supervision, provided that any such deposits are secured by collateral as may be prescribed by
law.
4. Capital Assets
Capital assets used by the Tax Collector are capitalized in thc basic financial statements of
Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon
acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector,
and are capitalized at cost in the basic financial statements of the Collier County, Florida. Capital
assets are valued at historical cost or cstimated historical cost if actual historical cost is not
available. Donated capital assets are valued at thcir estimated fair value on the date received. The
Tax Collector maintains custodial responsibility for the capital assets used by the office. No
deprcciation expense has been provided on capital assets in these spccial-purpose financial
statements. However, depreciation expense on these assets is rccorded in thc basic financial
statements of Collier County. Florida.
5. Long-Term Liabilities
The following is a summary of changcs in long-term liabilities which are reported in the basic
financial statements or Collier County, Florida:
October 1 Net September 30
2008 additions 2009
$ 1.137.639 $ 13.138 $ 1.150.777
October 1 Net September 30
2007 additions 2008
$ 1,041,948 $ 95,691 $ 1,137,639
Accrued compensated absences
Accrued compensated absences
09\2-\\14_'55
13
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
5. Long-Term Liabilities (continued)
Of these liabilities, approximately $] 00.000 is expected to be paid during the fiscal year ending
September 30,2010. These long-term liabilities are not reported in the special-purpose financial
statements of the Tax Collector since they have not matured.
6. Employee Retirement Plan
Substantially all full-time employees of the Tax Collector are eligible to participate in the State
of Florida Retirement System (System). a cost-sharing multiple-employer de lined benefit plan
administered by the State of Florida. Division of Retiremcnt. The System is a defined benefit
plan for all state, and participating county, district school board, community college, and
university cmployees (Pension Plan). The System also offers eligible employees participation in
an alternative defined contribution plan (Investment Plan). The Tax Collector participates in thc
Elected State Ol1icers' Class. The plan is administered by the State of Florida. Contribution rates
are established statewide for all participating governmental units. Accordingly, the actuarial
information and related disclosures attributable to the Tax Collectors' employees are not
determinablc.
Employees participating in the Pension Plan who retire at or after age 62 with six years of
credited service, or with 30 years of service regardless of age, are entitled to a retirement benefit.
payable monthly for life, equal to 1.6% for regular employees, 2% for senior management, and
3% for county elected oflicials lor each year of credited service times their final average
compensation. Final average compensation is the employee's average of the five highest fiscal
years of salary earned during credited service. Vested employees may retire before age 62 and
receive benelits that are reduced 5% fl)r each ycur prior to normal retirement age. Employees
participating in the Investment Plan arc vested after one year of service with no age requirement.
The System also provides dcath and disability benefits. Benefits are cstablished by Chapter 121,
Florida Statutes, and Chapter 228, Florida Administrative ('ode.
The Deferred Retirement Option Program (DROP) is a program that provides an alternative
method for payment of retirement benefits for a specified and limited period for members of the
System, effective July 1, ] 998. Under this program. the employee may retire and have their
benefits accumulatc in the Florida Retirement System Trust Fund. carning interest. while
continuing to work for a System employer. The participation in the program does not change
conditions of employmcnt. When the DROP period ends, maximum of 60 months. cmploymcnt
must be terminated. At the time of termination of cmployment, the cmployee will receive
payment of the accumulatcd DROP benefits. and begin receiving their monthly retirement
benefit (in the same amount determined at retirement, plus annual cost-ol~living increases).
0912-1114355
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
6. Employee Retirement Plan (continued)
The System publishes an annual report that provides ten-year historical trend information about
progress made in accumulating sufficient assets to pay benefits when due. This report may be
obtained by writing to the Division of Retirement, Department of Management Services,
1317 Winewood Boulevard. Building 8, Tallahassee, Florida 32399, or by calling
(850) 488-5706. or accessing thcir Internet site at http://www.frs.state.fl.us.
The Tax Collector is required to contribute an actuarially determined rate. The current rate is
16.53% for county elected officials, 13.12% for senior management, 9.85% for regular
employees. and 10.91% for DROP employees of covered payroll. The contribution requirements
of the Tax Collector are established and may be amended by thc Statc of Florida. The Tax
Collector's contributions to the plans lor the ycars endcd September 30. 2009. 2008. and 2007
were $667.905, $643.986 and $595.152. respectively, equal to the required contributions for each
year.
7. Other Postemployment Healthcarc Benefits (OPEB) Plan
The County reports its obligations for OPEB pursuant to GASB Statement No. 45. Accounting
and Financial Reporting by EmployersfiJr Postemployment Benefits Other Than Pensions,
Plan Description. The Tax Collector participates in a group health carc plan that covers eligible
retirees. and their dependents, of thc Board of County Commissioners and all Constitutional
Officers with the exception of the Sheriff. The Board administers the plan and establishes the
benclits. The healthcare plan does not issue a stand-alone linancial report. however additional
actuarial inlormation regarding thc plan as a whole is discloscd in thc Notcs to the financial
statements of Collier County.
As required by Section 112.081. Florida Statutes, retirees and their eligible dependents are
provided the same health carc covcrage as is offered to active employees at the same premium
cost (borne by the retiree) applicable to active employees. Under Florida Statutes, retirees are
eligible to participatc in the active medical plan by paying the active rate if they have attained
age 62 and have six years of service or havc at Icast 30 ycars of scrvice. Employecs eligible for a
reduced benefit under the Florida Retirement System prior to age 62 are also eligible to
participate in the medical plan. In addition, thc Tax Collector providcs a 100% subsidy for
retirees between the ages or 55 and 65 with more than 1 (J years of service and 800 hours of
accumulated sick leave to remit at the timc of retirement.
0912-1114355
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Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
7. Other PostempIoyment Health care Benefits (OPEB) Plan (continued)
Funding Policy. The contribution requirements of the plan members and the employers are
established and may be amended by the County. The plans are financed by the participating
agencies on a pay as you go basis through the County's self insurance internal service fund.
The Tax Collector contributes an additional amount to thc County per each active employee to
accumulate resources to fund retiree health care. The Tax Collector contributed $4,417 to the
group health plan during the fiscal year ended September 30. 2009. The Tax Collector's share of
the County's net OPEB obligation at September 30, 2009, was $8.791. which is recorded in the
basic financial statements of the County.
The annual other postemployment benefit cost is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordancc with
GASB Statement 45. The ARC represents a level of fUnding that. if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfundcd actuarial liabilities over a
period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in
October 2009. The notes to the financial statements of the County disclose additional
information regarding the other post employment benefit plan as a whole.
8. Related-Party Transactions
During the liscal years ended September 30. 2009 and 2008, the Board paid commissions and
fccs to the Tax Collector that amounted to $18,756,609 and $20,277,863, respectively. At
September 30. 2009 and 2008, the Tax Collector had a payable due to the Board of County
Commissioners of $9,423,794 and $10,893,103 respectively, comprised as follows:
2009
2008
Distribution of excess commissions and fees
Agency funds due to the Board
$
$ 10,083.315
809,788
10,893, I 03
8.645.361
778,433
$ 9,423,794 $
0912-1114155
16
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
9. Risk Management
Collier County, Florida (the County) is exposed to various risks of loss including but not limited
to general liability. health and life. property and casualty, auto and physical damage. and
workers' compensation. The County is substantially self-insured and accounts for and finances
its risk of uninsured losses through an internal service fund. All liabilities associated with these
self-insured risks are reported in the basic financial statements of the County. The Tax Collector
participates in the County's self-insurance program. During the years ended September 30, 2009
and 2008, the Tax Collector was charged $1.964,654 and $1,957,894, respectively. by the
County for participation in the risk management program.
The County provides coverage for up to $500,000 per claim for workers' compensation. and has
purchased outside excess coverage for up to $25 million for employee liability claims and
statutory benefits for each injury or illness. The County also provides coverage for up to
$200,000 per claim for auto and other liability claims, and has purchased outside excess
covcrage for up to $2 million per claim. Negligence claims in excess of the statutory limits set in
Section 768.20, Florida Statutes. which provide for limited sovereign immunity of
$100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature.
There have been no significant reductions in insurance coverage in the last year. Settled claims
have not exceeded the insurance provided by third party carriers in any of the last three years.
The County is also self~insured for health claims covering all of its employees and their eligible
dependents. The County retains the first $175,000 in losses per calendar year per covered
member and purchases excess coverage with a maximum lifetimc limit of $2 million. As
rcquired by Section 112.081. Florida Stalules, rctirees and their eligible dependents are provided
the same health carc coverage as is offcrcd to activc employces at the same premium cost (borne
by the retirce) applicable to active employees. An actuarial valuation is pert(lrmed each year to
estimate the amounts needed to pay prior and future claims and to establish reserves (see
Note 7).
()412-1114355
17
Collier County, Florida
Tax Collector
Notes to Special-Purpose Financial Statements (continued)
10. Commitments and Contingencies
Leases
The Tax Collector has noncancelable operating leases for certain office lacilities that were
utilized solely by the Tax Collector for fiscal year 2009. The following is a schedule of future
minimum lease payments under the operating leases:
Fiscal year ending September 30:
2010
2011
2012
2013
2014
$ 283.212
266,706
132,928
137.904
77,892
Rental expense for all operating leases aggregated $316,318 and $226,249 for the years ended
Scptember 30,2009 and 2008, respectively. Thcrc wcre no contingcnt rentals or sublcase rentals
associated with leases in elTect at September 30. 2009 or 2008.
Litigation
The Tax Collector is involved as a defendant or plaintifT in certain litigation and claims arising
from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the
range of potential recoverics or liabilitics will not materially affect the financial position of the
Tax Collector.
(1912-111,1:'55
18
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Report ofIndependent Certified Public Accountants on Internal Control
Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Special-Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Larry H. Ray, Tax Collector
Collier County, Florida
We have audited the special-purpose financial statements of the general fund and the aggregate
remaining fund information of the Collier County. Florida Tax Collector (the Tax Collector) as
of and for the years ended September 30, 2009 and 2008, and have issued our report thereon
dated December 10, 2009. which describes that such special-purpose financial statements have
been prepared for the purpose of complying with Section 218.39, Florida Statutes, and
Chapter 10.577(3), Rules oj the Auditor General fiir Local Governmental Entity Audits. We
conducted our audit in accordance with auditing standards generally accepted in the
United Statcs and the standards applicable to financial audits contained in Government Auditing
Standards, issued by thc Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and pertorming our audit, we considered the Tax Collector's internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing
our opinion on the spccial-purpose financial statements, but not lor the purpose of expressing an
opinion on the effcctiveness of the Tax Collector's internal control over financial reporting.
Aceordingly. we do not express an opinion on the effectiveness of the Tax Collector's internal
control ovcr financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
managemcnt or employees. in the normal course of pcrlorming thcir assigned functions, to
prevcnt or dctcct misstatements on a timely basis. A material weakncss is a dcficiency, or
combination of deficiencics. in intcrnal control such that there is a reasonable possibility that a
matcrial misstatement of the cntity's linancial statements will not be prevented. or detected and
corrected on a timely basis.
Our consideration of internal control over financial reporting 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 deficiencics. significant deficiencies or material weaknesses. We
did not identify any deficiencies in intemal control over financial reporting that we consider to
be material weaknesses. as defined above.
O<J12-111.B~5
19
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Compliance and Other Matters
As part of obtaining reasonable assurancc about whether the Tax Collector's special-purpose
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts. and grant agreements, noncompliance with
which could have a direct and material effect on the determination of special-purpose financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, aecordingly, we do not express such an opinion. The results of our
tcsts disclosed no instances of noncompliancc or other matters that are required to be reported
under Government Auditing Standards.
This report is intended solely tor the information and use of the Tax Collector, management,
others within the entity, the Board of County Commissioners of Collier County, Florida and the
Auditor General of the State of Florida, and is not intended to be and should not be used by
anyone other than these specified parties.
~M<d of MLLP
December 10, 2009
09\2-\114355
20
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Management Letter
Honorable Larry H. Ray, Tax Collector
Collier County, Florida
We have audited the special-purpose financial statements of the general fund and the
aggregate remaining fund information of the Collier County, Florida Tax Collector (the Tax
Collector) as of and for the year ended September 30, 2009, and have issued our report thereon
dated December 10,2009.
We conducted our audit in accordance with auditing standards generally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Additionally, our audit was
conducted in accordance with the provisions of Chapter 10.550. Rules of the Auditor General.
which govern the conduct of local governmental audits performed in the state of Florida and
require that certain items be addressed in this letter.
We have also issucd our report dated December 10, 2009, on internal control over financial
reporting and on compliance and other matters based on an audit of special-purpose financial
statements performed in accordance with Government Auditing Standardl'. Disclosures in that
report should be considered in conjunction with this management letter.
We have the following suggestions for improvement in accounting procedures and controls.
Current Year Findings and Recommendations
There were no findings or recommcndations as a rcsult of our current year audit.
Prior Year Findings and Recommendations
There were no findings or recommendations made in the prior year financial audit.
Other Required Communications
No matters of noncompliance with Section 218.415, Florida Statutes, regarding the investment
of public lunds were identified within the scope of our audit.
The results of our audit disclosed no violations of laws. rules. regulations or contractual
provisions or abuse. no improper or illegal expenditures, and no control deficiencies other than
the internal control recommendations included above.
(j<)]2-1114J'\5
21
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The Tax Collector was established by the Constitution of the State of Florida, Article VIII,
Section 1 (d).
This management letter is intended solely for the information and use of the Tax Collector.
management, the Board of County Commissioners of Collier County, Florida, and the Auditor
General of the State of Florida. and is not intended to be and should not be used by anyone other
than these specified parties.
~M<d of MLLP
December 10, 2009
0<)12-1114355
22
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